Different from other green account offerings where the cash collected will be used to refinance green projects, the new product is a cash management solution that enables clients to earn a higher yield on their account balances as they improve their ESG performance. It aims to motivate clients to proactively and continuously realise their ESG goals through recurring monetary incentives in the long-term.
When clients approach Crédit Agricole CIB to open an ESG-linked account, the Bank’s sustainable investment bankers will assess and formulate the offering structure based on clients’ current progress and future ESG goals. As clients progressively honour their ESG commitments, the savings account rate offered by the Bank will positively correlate to reflect the organisations’ ESG progress as a remuneration for their efforts. To ensure impartiality, the ESG performance assessment will be based on the ESG scores provided by independent ESG score providers. Crédit Agricole CIB is currently receiving S&P Global Sustainable1’s ESG scores from S&P Global Market Intelligence.
ESG-linked account is expected to gain momentum as the monetary incentives will attract corporates, especially those that have already made ESG pledges. For those lacking ESG plans and goals, the product will also help spur them into action to reduce carbon footprint. The product will be offered across Asia-Pacific and subsequently to other markets globally.
The first ESG-linked accounts offered by the Bank has been successfully piloted in Hong Kong with New World China and NWS Holdings, who share the Bank’ ambition to support sustainability. New World Group and Crédit Agricole CIB are both forerunners in promoting sustainability in their respective sectors, and have pledged to reach net zero by 2050. The introduction of ESG-linked account reaffirms Crédit Agricole CIB’s ongoing commitment to fostering ethical banking through new sustainable solutions.
As one of the first banks to set up a dedicated sustainable banking team, Crédit Agricole CIB’s thought leaders and banking experts connect clients to actionable financing solutions in Asia-Pacific and other regions across the globe. With decade-long experience in a field that is still at an early stage, the Bank has been connecting its employees, clients and the community to help create an ecosystem with a more sustainable future.
“As sustainable finance matures, there is more room for financiers to explore new opportunities and products. The ESG-linked corporate savings account is all about motivating our partners to put ideas into actions. Clients will not only voluntarily ensure their ESG progress is on track but look for means to better their performance for higher financial rewards,” said Antoine Rose, Head of Sustainable Investment Banking for Asia-Pacific and the Middle East.
“The idea of marrying ESG performance with a cash management solution has driven the depositors to rethink their traditional approach of managing liquidity and financial plans. The new offering has earned us broad-based positive feedback from our clients, unlocking enormous opportunities for us to deepen our engagement with them,” said Peter Hoogervorst, Head of Transaction Banking Products for Asia-Pacific.
Learn more about Crédit Agricole CIB’s sustainability commitments and our progress to net zero in the latest activity report.