Standard Chartered Private Bank introduces ESG Select
The bank will apply this new review process on wealth solutions that seek to be positioned as a sustainable or environmental, social and corporate governance (ESG) product on the Standard Chartered platform.
Standard Chartered Private Bank, the private banking division of Standard Chartered, today announces that it has launched “ESG Select” – a new review process to be applied on wealth solutions that seek to be positioned as a sustainable or environmental, social and corporate governance (ESG) product on the Standard Chartered platform.
ESG Select also applies to ESG funds, which Standard Chartered Bank offers via its Wealth Management suite of products to retail banking clients.
The bank explains that sustainable investing is becoming a mainstream consideration for many investors and ESG products are increasingly accessible. It is timely and critical that ESG products are properly evaluated to manage the potential negative impact of ESG risks and, at the same time, spot opportunities to drive positive impact.
The methodology behind ESG Select is tailored to each asset class, with funds and discretionary portfolio solutions following a similar assessment process, while bonds and structured products are separately assessed on different sets of criteria. The underlying premise is to benchmark against established frameworks that are aligned to Standard Chartered’s positions and to ensure that an ongoing monitoring and review are in place. The entire process is well-supported by various stakeholder groups within the bank, allowing for the most relevant input and expert advice.
Standard Chartered started incorporating ESG scores into its Wealth Management investment advisory trade notes for equities and fixed income since the third quarter of 2019. The launch of ESG Select is seen to the rigour of the bank’s sustainable investing proposition, allowing clients to factor ESG considerations into their investment decisions.
Eugenia Koh, Head, Sustainable Investing and Strategic Engagement at Standard Chartered Private Bank said:
“We have seen increased interest from many of our high-net-worth clients to include a sustainable element in their investment portfolio. Our open architecture approach, which is product agnostic, coupled with our Impact Philosophy allow our bankers to recommend ESG products that address clients’ impact needs. Launching ESG Select will help us address green washing concerns and we are confident that our clients will benefit from a more rigorous and systematic investment decision journey.”