StanChart Singapore rolls out first ESG-linked cash account for a local company
It integrates STT GDC’s key ESG performance indicators and sustainability performance targets to reward progress
[SINGAPORE] Standard Chartered (StanChart) Singapore said on Thursday (Feb 19) that it has structured its first environmental, social and governance (ESG)-linked cash account for Singapore-incorporated client ST Telemedia Global Data Centres (STT GDC).
The cash account integrates STT GDC’s key ESG performance indicators and sustainability performance targets to reward progress for achieving material ESG-related objectives.
Enhanced interest rates are thereafter applied on the balances in the ESG-linked cash account when the data centre achieves pre-determined targets.
This move is set to link sustainability performance with returns on cash balances, in a bid to embed the sustainability efforts of clients in Singapore and Asean into their treasury management, said the bank.
Chow Wan Thonh, head of coverage for Singapore and Asean at StanChart, said: “As global demand for digital infrastructure accelerates, data centres are critical to supporting cloud, artificial intelligence and enterprise transformation, increasing the need for greater capacity alongside more sustainable, energy-efficient operations.
“STT GDC plays a pivotal role through its expanding global footprint and advancing its sustainability agenda.”
The data centre operator has 2.3 gigawatts in IT capacity across more than 100 data centres in 12 major markets.
The Temasek-backed company was acquired by telco giant Singtel and private equity firm KKR for S$6.6 billion earlier in February.
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