Standard Chartered

RATING

SECTOR

Banking

WEBSITE

CONTACT

1 Basinghall Avenue, London, EC2V 5DD

Tel: +44 020 7885 8888
Fax: N/A
Email: N/A

STOCK EXCHANGE

LISTING

No listings available.

 

EMPLOYEES

85,000

GLOBAL HEAD OF SUSTAINABLE FINANCE

Daniel Hanna

AWARDS

CONTENT SOURCE

FURTHER READING

Report create by Samuel Hamway

 

Standard Chartered

SECTIONS :  Sustainability Targets    Evaluation  •  Key Points  •  Overview

Company Activity

Standard Chartered is a British multinational banking and financial services company headquartered in London, England. The bank operates worldwide, and is a leading financial institution in the world.

Standard Chartered offers its services globally, with over 1,200 branches and outlets in over 70 countries. Approximately 90% of its profits come from Africa, Asia, and the Middle East.

The firm offers a wide range of financial solutions, including retail banking, commercial banking, private banking, corporate & institutional banks, and more. 

Standard Chartered is one of the largest financial institutions in the world, holding $1.2 trillion USD in total assets. This places the firm as the 43rd largest bank globally.

 

Company Sustainability Activity

Standard Chartered’s strategic effort is to implement sustainable practices into all facets of the bank’s operations. Sustainability was elevated to being one of Standard Chartered’s four pillars of strategy in 2020. To fulfill its pledge towards sustainability, the firm has committed to various ESG initiatives, providing transparent updates on each’s progress. 

The broader efforts implemented by Standard Chartered include:

  • Creation of first annual Sustainable Finance Impact Report in 2020.
  • The delivering of sustainable finance solutions wherever possible.
  • Delivering “Climate Risk capability” to support clients transitioning to a low carbon economy.
  • Protecting colleagues, clients, and communities in which the firm operates, especially in light of the COVID-19 pandemic. 

Standard Chartered aims to achieve these broad efforts in all facets of its operation. This is done through differing, transparent initiatives with the ultimate goal of net-zero operations by 2030.

 

Highlights

  • Facilitate project financing services for $40 billion of infrastructure projects
  • Provide $15 billion of financing to small business clients.
  • Provide $3 billion of financing to microfinance institutions.
  • 35% women in senior roles by 2025.
  • Decrease carbon emissions to 60,000 tCO2 e by December 2025.
  • Reduce waste per colleague to 40kg/FTE/year by 2025.
  • Recycle 90% of waste by 2025.

Targets

  • Facilitate project financing services for $40 billion of infrastructure projects that promote sustainable development that aligns to the firm’s verified Green and Sustainable Product Framework.
  • Facilitate $35 billion worth of project financing services, M&A advisory, debt structuring, transaction banking and lending services for renewable energy firms.
  • Only provide financial services to clients who are less than 5% dependent on earnings from thermal coal by January 2030.
  • Commit to measuring, managing and reducing emissions associated with financing of clients to support the objective to achieve net-zero by 2050.
  • Provide $15 billion of financing to small business clients.
  • Provide $3 billion of financing to microfinance institutions.
  • Launch a suite of five core sustainability-focused retail banking products in selected markets across our footprint by 2022.
  • Triple the percentage of sustainable investing assets under management by 2024.
  • Release ESG scores for investments and funds.
  • 35% women in senior roles by 2025.
  • Culture inclusion score to 84.5% by 2024.
  • Decrease carbon emissions to 60,000 tCO2 e by December 2025.
  • Reduce waste per colleague to 40kg/FTE/year by 2025.
  • Recycle 90% of waste by 2025.
  • Invest 0.75% of the prior year operating profit (PYOP) in operating communities annually.
  • Raise $75m for Futuremakers by Standard Chartered by 2023.
 

Progress

  • 78.4% of targets on track or achieved.
  • 37% reduction in carbon footprint.
  • 29.5% women in senior roles.
  • $27.8 million donated towards COVID-19 emergency relief.
  • 168,000 supported young people through Futuremakers.
  • $18.4 billion of mobilized funding for clean technology.
  • $579 million in credit approved to help clients fight COVID-19.

Certificates

UN Sustainable Development Goals

UN SDGs Compliance

SDG 1: No Poverty 

  • Provide $15 billion of financing to small business clients.

SDG 4: Quality Education

  • Raise $75m for Futuremakers by Standard Chartered by 2023. 
  • Invest 0.75% of the prior year operating profit in our communities.
  • Increase participation for employee volunteering to 55% by 2023.

SDG 5: Gender Equality

  • Reach one million girls and young women through 2023.
  • 35% women in senior roles by 2025.

SDG 7: Affordable and Clean Energy

  • Target to achieve and maintain flight emissions 28% lower than our 2019 baseline of 94,000 tonnes.
  • Develop a methodology to measure Scope 3 emissions from the supply chain.
  • Source all energy from renewable sources by 2030.
  • Decrease carbon emissions to 60,000 tCO2 by December 2025.
  • Offset all residual emissions from operations.

SDG 8: Decent Work and Economic Growth

  • Provide $3 billion of financing to microfinance institutions.

SDG 9: Industry, Innovation and Infrastructure

  • Roll out digital-only banks in a total of 12 markets.
  • Double the number of clients served in Africa and the Middle East to 3.2 million.

SDG 10: Reduced Inequalities

  • Raise $75m for Futuremakers by Standard Chartered by 2023. 
  • Invest 0.75% of the prior year operating profit in their communities.
  • Reach one million girls and young women through 2023.
  • 35% women in senior roles by 2025.

SDG 12: Responsible Consumption and Production

  • Decrease carbon emissions to 60,000 tCO2 e by December 2025.
  • Source all energy from renewable sources by 2030.
  • Offset all residual emissions from operations.
  • Recycle 90% of waste.
  • Reduce waste per colleague to 40kg/FTE/year.

SDG 13: Climate Action

  • Facilitate project financing services for $40 billion of infrastructure projects that promote sustainable development that aligns with the firm’s verified Green and Sustainable Product Framework
 

Evaluation

Standard Chartered is clearly committed to implementing sustainability into its business operations. The firm publishes several reports including their Sustainable Finance Impact Report, Sustainability Aspirations Report, and Sustainability Summary Report.

Standard Chartered’s reported strategies are explicitly in line with many of the UN Sustainable Development Goals. These include notable endeavors such as Futuremakers, sustainable finance efforts, and social responsibility initiatives.

Standard Chartered is notably transparent in its ESG reporting. The firm offers both specific, numerical goals in its reports. Progress towards these goals is also approached in a numerical manner. Furthermore, Standard Chartered’s goals are given clear dates on which they are to be achieved.

Despite these commitments, Standard Chartered is notably short on sustainability certificates, outside of the Economic Dividends for Gender Equality Certification in Singapore. Furthermore, while the firm’s sustainability goals are being met at a 78.4% rate, this is the lowest percentage of targets met in the past several years for the company.

In addition, Standard Chartered has contributed $31.422 B in the fossil fuel industry since the adoption of the Paris Agreement. However, the firm has been decreasing its investments since 2018.

This company has been rated a C.

Analyst Outlook: Neutral

Standard Chartered is undoubtedly in pursuit of sustainability. The firm’s wide-ranging, specific goals are noteworthy. Specific alignment with the UN Sustainable Development Goals is commendable. Despite this, the firm lacks sustainability certifications, and is not yet fully sustainable or fully on track to be. 

Should Standard Chartered continue divesting from the fossil fuel industry, the firm could receive positive outlook.

Key Points

  • 78.4% of Sustainability Aspirations were achieved or on track in 2020 for Standard Chartered.
  • The firm has realized a 37%  reduction in its carbon footprint.
  • 29.5% of the firm’s senior roles are filled by women.
  • $579 million in credit approved for COVID-19 relief.
  • 18.4 billion in mobilized funding for green technology.
  • $27.8 million donated towards COVID-19 emergency relief.
  • $27.8 million donated towards COVID-19 emergency relief.
  • 168,000 supported young people through Futuremakers.
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