Sustainable deposits are bank deposits that incorporate a specific sustainability commitment. Typically, this includes a like-for-like commitment for the bank to lend to an environmental project, i.e., for every Dollar deposited, a Dollar has to be lent to a green initiative.
These deposits therefore allow you to combine your standard treasury and sustainability concerns. On the one hand you want to place your cash with a credible, highly rated counterparty and in a product that is liquid and safe. And on the other hand you would like your money to do some societal good
However their structures can differ markedly. It is hence important to conduct the necessary due diligence when comparing different deposit options, and incorporating them in your cash management policy and ongoing treasury reporting. This is where Sustainable Deposits helps treasury teams.
