Standard Chartered Launches Sustainable Escrow Solution UAE

Photo: WAM

Standard Chartered, one of the world’s leading international banks, has introduced a new and special banking solution in the UAE. This solution is called the Sustainable Escrow and Account Bank Solution. It is the first time any bank in the UAE has launched such a product. The bank said that this launch will help its clients include sustainability and environment-friendly goals in their daily banking and cash management activities.

What Is An Escrow And Why Is It Important?

Before understanding this new sustainable solution, let us understand what an escrow is. An escrow is a type of bank account where money is held safely until all parts of a deal or agreement are completed. For example, when two people are buying and selling a house, the payment is kept in escrow until both parties have fulfilled their promises. This ensures that everyone is protected and the deal goes smoothly.

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Now, Standard Chartered has made this escrow system more special by adding sustainability to it.

How Is This Escrow Solution Sustainable?

In this new sustainable escrow solution, the funds kept in the escrow or in special designated accounts are linked directly to the bank’s portfolio of green and sustainable loans and projects. But what does this mean? This means that the money held in these accounts will be used to support projects that protect the environment, reduce pollution, save energy, and help in building a greener future.

The bank follows its own Green and Sustainable Product Framework to decide which projects are eligible. This framework has clear rules to make sure the money goes to truly green projects like renewable energy, clean transportation, green buildings, and other environment-friendly ideas.

Where Is This Solution Available?

Standard Chartered has launched this solution first in the UAE. It will also be available in the UK. In the UAE, clients can use this new service through the Dubai International Financial Centre (DIFC) as well as other locations. The bank believes that this launch will help many companies and organisations to achieve their climate and sustainability goals in an easy way.

Why Did The Bank Launch This Solution?

Sandrine Jourdainne, who is the Global Head of Deposits, Liquidity, and Escrow Solutions at Standard Chartered, explained the bank’s vision behind this launch. She said that the UAE has always shown strong commitment to sustainability. The country wants to become a leader in creating a low-carbon economy. As one of the oldest and most established international banks in the UAE, Standard Chartered wants to support this vision.

She added that the bank feels proud to offer solutions that help clients embed sustainability into their main financial activities. This means that now, clients do not have to keep sustainability as a separate goal. They can include it directly into their banking and money management work.

Growing Demand For Sustainable Banking Solutions

Standard Chartered shared that many of its clients, in the UAE and around the world, are asking for such innovative banking solutions. Today, companies want to show that they care for the environment and for society. They want banking services that help them manage their money and also create a positive impact on the world.

This is why Standard Chartered is working hard to expand its sustainable transaction banking capabilities. Transaction banking includes services like payments, escrow accounts, and cash management. By adding sustainability to these services, the bank is supporting global efforts to fight climate change.

How Will This Help Companies And The Environment?

With this new sustainable escrow solution, companies can:

• Manage their cash and deals safely using escrow services.

• Show their investors, employees, and customers that they care for the environment.

• Directly support green projects like solar farms, wind energy, eco-friendly buildings, and clean transportation.

• Meet their own Environmental, Social, and Governance (ESG) targets. ESG targets are goals set by companies to ensure they work responsibly for society and nature.

UAE’s Commitment To Sustainability

This launch by Standard Chartered matches perfectly with the UAE’s vision. The UAE is working to reduce its carbon emissions and adopt clean energy. It has launched many initiatives like Net Zero by 2050 and invests in renewable energy projects worldwide. The country hosted COP28, a major global climate conference, showing its dedication to fighting climate change.

By using such sustainable banking solutions, UAE companies can contribute better to these national goals.

About Standard Chartered’s Green And Sustainable Product Framework

Standard Chartered has created its own framework to identify which projects and loans are truly green and sustainable. This framework is used for all its green financial products. It ensures that funds are used only for projects that help:

• Reduce carbon emissions

• Save water and energy

• Create clean transportation systems

• Support climate adaptation and biodiversity

This framework is regularly updated to match international sustainability standards and rules.

Future Plans For Sustainable Banking

Standard Chartered is not stopping here. The bank plans to launch more such green banking solutions in other countries too. It wants to become a global leader in sustainable finance. The bank believes that banks have a strong role to play in helping the world achieve its climate targets. By linking financial solutions to sustainability, banks can create large-scale positive change.

To conclude, Standard Chartered has taken a big step by launching the UAE’s first sustainable escrow and account bank solution. This will help its clients manage their money efficiently while supporting green and sustainable projects. It is a win-win for the clients, the bank, the UAE, and most importantly, for the planet.