Protecting the Environment
Standard Chartered is conscious of our responsibility to cut carbon dioxide emissions caused by our operations around the world. We work with employees, clients, and other stakeholders to raise awareness, stimulate action and reduce their impact on the environment.
We have an ambitious target for 2011 and beyond and we continue to play in international platforms:
- A member of the Corporate Leaders Group on Climate Change, The Climate Group, the Carbon Disclosure Project on climate change issues;
- A member of the Roundtable on Sustainable Palm Oil (RSPO) – the Bank expects RSPO membership when evaluating clients in this sector;
- Chair the United Nations Environment Programme Finance Initiative (UNEP FI), which is a global partnership between UNEP and the financial sector, to understand the impact of environmental and social considerations on financial performance; and
- Worked with a coalition of five leading financial institutions in 2008 to shape the Climate Principles, which aim to help the financial sector play its part in the transition to a low-carbon economy.
Sustainable Finance
As a bank, the biggest impact we have on society and our environment is through supporting the business activities of our clients. Our decisions regarding who and what we finance enable us to make our strongest contribution to sustainable development.
- In 1997, we introduced an environmental and social risk policy that took into account the environmental and social impacts of lending decisions in our Wholesale Banking business.
- We have been a signatory to the Equator Principles since 2003 and apply them to all project finance and project advisory transactions.
- In 2007, we made a Clinton Global Initiative (CGI) pledge to finance US$8-10 billion in renewable energy and clean technology projects. To date, we have provided more than US$3.6 billion across all segments of the renewable energy market.
- To ensure that we have a consistent and cohesive approach to managing environmental and social risks across our business and financing activities, we implemented a series of 14 position statements that provide guidance to all staff, including relationship managers, credit officers and portfolio managers.
- To ensure effective risk management and to embed our commitment to sustainable finance, we have adopted an approach of constructive engagement to manage social, environmental and governance risks associated with the projects and clients we finance. We work with our clients to encourage progress towards international standards.
Access to Financial Services
More than three billion people worldwide currently lack access to basic banking services. Many of those deprived of access live within communities in the countries in which we operate, and their inability to raise even the smallest loan has a direct impact on economic activity both regionally and nationally.
As a bank committed to sustainable development, we understand that the ability to access to finance is vital to economic activity. Our approach to access to finance includes offering products ranging from microfinance and finance for small and medium-sized enterprises (SMEs) to Islamic banking and agrifinance.
- In 2009 we fulfilled our Clinton Global Initiative pledge to provide credit and financing worth US$500 million to our microfinance partners. The five-year pledge was signed in 2006 but was met two years ahead of schedule. These funds have impacted the lives of more than 3.3 million people in 14 countries.
- We recognise that SMEs form the backbone of many of the economies in which we operate and, in some cases, contribute up to 90 per cent of gross domestic product (GDP). In addition to tailored products and services, we also offer technical assistance to the microfinance and SME sectors
- Our Islamic finance products and services in Wholesale Banking is Shariah-compliant. In 2008, we established our first fully-owned Islamic finance subsidiary, in Malaysia. Standard Chartered Saadiq, our Islamic banking brand, currently offers more than 50 products.
- Food security and scarce resources are among the biggest threats to the global economy over the next decade, but rising food demand and the availability of unused arable land presents Africa with the opportunity to achieve a ‘green revolution’. Our agricultural portfolio in Africa is currently worth more than US$320 million but there is so much more that we can do. We are in the process of expanding these specialised services to all 13 African countries in which we operate.