When talking to corporate treasurers and CFOs, the goal is to showcase features of your ESG-driven accounts, bonds, and funds.
These advantages are worth highlighting:
- Reduces tail risks;
- Reduces volatility;
- Strong governance;
- Fixed and guaranteed returns (if you have a product like Nordea’s ‘Deposit with Climate Focus’)
- Better returns than oil, gas, weapons, and other harmful investments: 60% higher;
- 85% of investors reported that ESG leads to better returns, resilient portfolios, and enhanced fundamental analysis.
These are important points to make because right now, corporate cash reserves exceed $8 trillion.
Collectively, that means the world’s top 100 mega-corporations have more cash reserves than every national economy except for the US and China (based on GDP).
According to Guillaume Vuillemey, Associate Professor in Finance at HEC Paris: “Across industries, corporations have transitioned from traditional borrowers – raising funds for expansion – to net lenders, injecting excess capital into global financial markets. This represents one of the most significant financial shifts of the 21st century.”
Now, corporate CEOs, CFOs, and treasurers don’t simply hold onto all of that money as cash in the bank.
Let’s take a closer look at Sustainable banking in action: Reimagining corporate deposits.
Is a corporate shift to increased sustainability underway?
Yes, although we are seeing a divergence between Europe and America.
In Europe, the percentage of companies whose lobbying aligns with the EU’s climate strategies has surged from just 3% in 2019 to 23% in 2025.
At the same time, the percentage of businesses that are “misaligned” with EU climate policy has dropped from 34% to 14%, based on InfluenceMap’s analysis of Europe’s 200 largest businesses.
As noted in The Guardian: “In 2019, when the European Commission announced its Green Deal, only one in four companies were lobbying partly in line with Paris Agreement goals of keeping the planet from heating 1.5C (2.7F), the report found. By 2025, that share had doubled.”
On the other hand, in America, since the re-election of Donald Trump as president, and the resurgence of the right in the other branches of government, sentiment has turned against a lot of ESG-related initiatives.
Data from an ESG report by Bloomberg Intelligence (BI) shows: “The US may stagnate amid the presidential elections and ESG backlash.”
Hence, “Europe is set to remain the most significant contributor [to ESG investment growth] . . . Small, but expanding markets like Japan, Canada and Australia could also support gains”, according to the BI study.
When it comes to ESG investments, it’s wonderful to see that: “Global ESG assets surpassed $30 trillion in 2022 and are on track to surpass $40 trillion by 2030 — over 25% of projected $140 trillion assets under management”, according to the latest ESG report from Bloomberg Intelligence (BI).
It’s perhaps unsurprising that Europe is where sustainable banking for corporates is emerging as a banking and investment vehicle. The appetite for ESG-centric financial products is greater here.
Corporations and investors are keen to move beyond greenwashing and want to take action that generates solid returns, reduces risk, and is good for the environment.
Could ESG-centric corporate banking accounts make even more of a positive impact?
Yes, and we are already seeing this in action.
Nordea, one of the world’s leading ESG-centric banks, has a “Deposit with Climate Focus” banking solution for large businesses and corporate treasuries.
As we’ve covered in other articles, Nordea is one of the most ethical and environmentally-focused financial institutions in the world.
As they say: “At Nordea, sustainability remains at the core, influencing how we organise, operate and manage risks, in order to actively engage to drive the transition and capture growth opportunities.”
This revolutionary climate-focused banking product has emerged from Nordea’s Green Funding Framework.
It was launched in Sweden, and is now also available to customers in Norway and Finland. It’s specifically designed for businesses with large cash surpluses sitting in accounts.
Here is how Nordea’s “Deposit with Climate Focus” works:
- Businesses make a fixed-term deposit, from 1 to 6-months;
- The minimum deposit is €2 million;
- From those deposits, Nordea provides loans aligned with the criteria of its Green Funding Framework supporting ESG-related projects
- Projects that are eligible include the following:
- Renewable energy: Wind, solar, hydro power
- Energy efficiency: Smart grids and storage
- Green buildings and development
- Pollution prevention and control
- Water and waste management
- Clean transport, like electric vehicles
Nordea also allocates an equivalent amount to its green bond asset portfolio
This portfolio supports a range of environmentally friendly projects, including renewable energy such as solar and wind power, green buildings and sustainable forestry, among others.
This means that corporates can use their surplus funds to contribute to projects with an environmental benefit
At the same time, corporates investing in this account benefit from stable and predictable returns, including complete safeguarding of the capital, and its full repayment at the end of the term.
Since this launched, over 1000 corporate clients have deposited funds, and many have renewed after the first trial period.
As the Nordea article about this notes: “This strong interest underscores the growing demand for sustainability-related financial products among business clients.”
Antti Saha, Head of Large Corporates & Institutions Finland, said: “Over the past years, in the rapidly changing market conditions, payment and liquidity management have become increasingly important to our customers. In addition, the green transition has taken significant steps forward.”
Examples of sustainable banking and investment opportunities for corporate CFOs
Nordea may have been one of the first, but they’re not the only bank to create sustainable banking products and accounts for the corporate treasurers and CFO market.
Green bonds are an increasingly popular asset class for corporate investors.
Numerous banks issue these as part of a portfolio of green finance products.
However, the introduction of green bonds predates the involvement of banks. In November 2008, the World Bank issued the world’s first green bond specifically to finance and fund climate-focused projects.
Since then, Sovereign, Supranational and Agency (SSA) bond issuers consisting of two or more national governments have increased dramatically. Poland and France were the first, in 2017, and the amount of green bonds on the market has steadily increased since then, particularly those issued by governments (sovereign).
Sustainability-linked bonds (SLBs) are another way for corporates to invest in green initiatives.
The International Capital Market Association’s (ICMA) Sustainability-Linked Bond Principles outline the guidance for bonds like this, including how funds can and can’t be used.
Not only do these offer green investment opportunities for corporates, there are also a number of corporate SLB issuers.
Another high-profile and award-winning ESG-focused bank is Societe Generale (SocGen), which was “Active in ESG projects on all six inhabited continents, including many parts of Africa, and it remains one of the few commercial banks that has ever issued green, social and sustainable bonds.”
As you can see, the number of opportunities for corporate treasurers and CFOs to make environmentally-focused deposits and investments are growing every day.
How sustainable banking can be encouraged at the highest levels of corporate governance
Holding hundreds of millions or billions in bank accounts, bonds, and stocks isn’t necessarily the most effective way to manage corporate liquid cash.
The same arguments for ESG investing can be applied to corporate treasury funds.
First and foremost, corporate CFOs need to know they’ll get a sustainable and healthy return on their capital. Corporate money needs to work just as hard as funds from other investors.
Numerous studies have proven that ESG funds perform just as well, if not better than non-ESG funds.
A huge meta-analysis of 2200 research papers showed that returns from sustainable investing are 60% higher than traditional, unsustainable investments (Fried et al, ESG and financial performance, Journal of Sustainable Finance & Investment, 2015).
If you can show that ESG deposit accounts generate better returns through a benchmark comparison ⏤ especially if it’s done independently- it puts you in a really strong position.
A recent survey by Stanford Graduate School of Business researchers, and the MSCI Sustainability Institute of 47 institutional investors with $250 billion AuM found that the main reason that investors put money into ESG funds is:
“Most see ESG primarily as a way of reducing volatility and risk in their portfolios — especially tail risk, the probability that a rare but catastrophic event could tank a company’s performance.”
Businesses wanting to reduce their carbon footprint could benefit from investing in ESG-based accounts and funds:
“78% rank climate change or carbon emissions as the most important environmental factors they explicitly consider when making investment decisions; most say that they are analyzing the emissions associated with their investments, putting money into renewable energy and transition technologies, and quantifying the possible financial impacts of climate-related risk.”
Key Takeaways: Giving corporate treasurers and CFOs what they want
When talking to corporate treasurers and CFOs, be equally mindful that in Europe especially, the carbon reduction impact of your fund might be the best feature and benefit to put in the center of your messaging.
Weaving these insights into your overall strategy and multi-channel messaging looks likely to pay dividends throughout and beyond 2025.
There is over $8tn in corporate deposits that could be used to fund green initiatives.
It’s worth banks and ESG investment firms working on marketing and sales materials designed to connect with the needs of corporate treasurers and CFOs.
We can help you do that.
Would your company benefit from our skills and expertise?
Now more than ever, alternative asset firms need to stand out and get noticed. You need investors to clearly see the advantages of investing in your offering.
You can’t sit out another cycle waiting for investors to notice you. We can help you with that.
Let’s start with us looking at what you’re already doing and your goals: Based on that, we can put together a plan of action.
Sounds interesting? Email us at: admin@fintechcontent.marketing, and we’ll find time for a no obligation 15 minute discovery call.