Standard Chartered Saadiq Malaysia implements Islamic Sustainable Account Solution with PETRONAS

KUALA LUMPUR – Standard Chartered Saadiq Malaysia has unveiled a major accomplishment on the establishment of Islamic Sustainable Accounts at the Global Forum of Islamic Economics and Finance.

PETRONAS and the bank are proud to have reached a milestone in opening Islamic Sustainable Accounts with their subsidiaries involved in sustainable activities.

This solution shows the bank’s commitment to the Sustainable Development Goals of the United Nations (UN SDGs). It is the first bank in Malaysia to offer sustainable current account saving accounts.

The Sustainable Account allows you to track the cash that is deposited against specific projects aligned to Standard Chartered’s Green and Sustainable Product Framework.

This framework, which was developed with the help of Sustainalytics, a leading independent provider for Environmental, Social and Governance research and ratings, guides the development and production of sustainable and green products. It is aligned to the UN Sustainable Development Goals.

Based on the commodity-based murabahah, this solution is designed for corporations that want to use their money to support sustainable development while still maintaining access to daily liquidity to meet their treasury requirements.

Bilal Parvaiz, the chief executive officer of Standard Chartered Saadiq Malaysia, said: “We offer a unique Islamic banking proposition. We are the only bank in Malaysia that offers an Islamic Sustainable Account, which captures payment and collection flows and consolidates them into a single, integrated account.

This allows PETRONAS to integrate sustainability into its cash management in Malaysia. We are excited to work with PETRONAS and look forward to helping them on their sustainability journey.

The Islamic Sustainable Account Solution is aligned with Bank Negara Malaysia (BNM)’s development priorities for the Financial Sector, which seeks to advance Islamic finance leadership through value-based financing to spur growth that’s progressive, sustainable, and inclusive.

This builds on BNM’s pioneering work with the Value-Based Intermediation Concept introduced in 2017 and complements efforts made to address climate and environmental risks, and advance sustainability practices that are aligned with ESG Principles.

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