Standard Chartered Bank

Overview

Standard Chartered Bank is one of the top 25 companies in the FTSE-100 by market capitalization. With its headquarters in London, the group has operated for over 150 years in some of the world's most dynamic markets, leading the way in Asia, Africa and the Middle East. Its revenue has more than doubled over the last five years primarily as a result of organic growth, and over 90% of its profits come from operations in Asia.

The markets in which the company has the majority of its operations represent 70% of global population, 60% of projected energy growth and 75% of growth in carbon emissions by 2030. They also include areas where the majority of water stress is expected to occur in this period. As well as its overall commitment to sustainability, Standard Chartered therefore has a particular interest in climate change mitigation and adaptation.

The biggest impact Standard Chartered has on society and the environment is through support for the business activities of their clients. Appropriate financing decisions enable them to make the strongest contribution to sustainable development. The Standard Chartered Renewable Energy and Environmental Finance (EEF) division provides investment and advice to companies in green industries.

In core markets, Standard Chartered and its clients are working to respond to sustainability challenges, both by supporting renewable and environmental technologies that will reduce greenhouse gas emissions, and also by embedding a sustainability approach into its financing decisions and risk forecasting. 

Through its Environmental and Sustainability Risk Assessments, Standard Chartered assesses project deals on their financial and reputational risk. The group seeks to encourage environmentally and socially responsible behavior among its clients by ensuring that all the projects it finances, across all markets, meet certain international standards such as the Environmental, Health and Social guidelines developed by International Finance Corporation (IFC).

Current activities

Standard Chartered is one of the Climate Principles Financial Institutions (CPFIs) that is working towards a strong institutional understanding of, and compliance with, The Climate Group’s Climate Principles, of which it is a founding signatory. 

In 2009, Standard Chartered adopted 14 position statements that provide guidance on issues and sectors, including climate change, that are considered to have a high impact on the environment and society, and, in turn, future growth. The statements articulate the social and environmental standards the Bank's expect from clients in Wholesale Banking and SME Banking to adopt.

Sustainable finance and green investment

Standard Chartered provides finance across the renewable energy market, including wind, solar, hydro, geothermal and bio-fuels, with its portfolio including companies in Asia, Africa and the Middle East. 

In 2007 the company made a Clinton Global Initiative commitment to mobilize $8-10 billion towards the renewable energy and clean technology sectors globally. Despite the impact of the financial crisis, by the end of 2010, nearly $5 billion had been mobilized.

While growing its Renewable Energy and Environmental Finance (REEF) expertise, Standard Chartered has been able to strengthen and diversify its capabilities elsewhere. In Principal Finance, for example, it has a $67 million investment in the Climate Change Capital Carbon Fund. It has also invested in a number of other environmental opportunities in renewable energy and clean technology across East Asia.

It is a founding board member of the Middle East & North African Clean Energy Business Forum, which promotes the adoption of clean energy in the region. The company also participated in The Critical Mass initiative, created in early 2010 to catalyze private investment for low carbon infrastructure in developing countries.

Links

Standard Chartered 14 position statements

Standard Chartered renewable Energy and Environmental Finance (EEF)

Critical Mass initiative