Helping Asian Wealth Management Communities interact

Investments

Standard Chartered Private Bank launches ESG Select to strengthen fund selection process

Standard Chartered Private Bank has launched “ESG Select” to better identify and curate wealth solutions for clients. The Bank will apply this new review process on all wealth solutions that seek to be positioned as a sustainable or environmental, social and corporate governance product on the Standard Chartered platform.

Sustainable investing is becoming a mainstream consideration for many investors and ESG products are increasingly accessible in this nascent space. 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 Bank’s 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, according to a press release.

Standard Chartered began incorporating ESG scores into our Wealth Management investment advisory trade notes for equities and fixed income since Q3 2019. Launching ESG Select adds to the rigour of our sustainable investing proposition, allowing our clients to factor ESG considerations into their investment decisions.

Eugenia Koh, Head, Sustainable Investing and Strategic Engagement, 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.”