Our purpose is to drive Africa’s growth. We are committed to being more than a provider of financial products and services – we are a catalyst for economic change in our countries of operation and we make life better for our fellow Africans by doing the right business the right way.
On this page you will find an overview of Standard Bank and why we believe in ‘reporting to society’.
SEE moreAn account of our social, economic and environmental impacts and how these contribute to our sustainability and ability to achieve our purpose. It includes our environmental, social and governance report, and Standard Bank South Africa’s transformation report.
We are a financial services organisation in, for and across Africa.
We operate in 20 African countries and are headquartered in Johannesburg. Our primary listing is on the Johannesburg Stock Exchange (JSE) in South Africa, with a secondary listing in Namibia. Subsidiary banks are listed on exchanges in Kenya, Malawi, Nigeria and Uganda.
On this page:An account of our social, economic and environmental impacts and how these contribute to our sustainability and ability to achieve our purpose. It includes our environmental, social and governance report, and Standard Bank South Africa’s transformation report.
We publish several reports to provide our stakeholders with the information they need to assess our performance.
Our annual integrated report, our primary report, provides a holistic and material assessment of our ability to create value over time. It considers the issues material to maintaining the commercial viability and social relevance required to achieve our strategy in the medium to long term, and covers both our financial performance and material non-financial information.
Our reporting to society platform aims to communicate with a broad group of stakeholders about how we impact on the societies, economies and environments in which we operate.
SEE moreAn account of our social, economic and environmental impacts and how these contribute to our sustainability and ability to achieve our purpose. It includes our environmental, social and governance report, and Standard Bank South Africa’s transformation report.
Standard Bank is driven by our purpose: ‘Africa is our home, we drive her growth.’ We are an African financial services organisation with a clear understanding of the challenges and opportunities in our countries of operation. We see it as our core job to develop commercially sound ways to address these challenges, thereby accelerating economic growth and human development and making a better life for our fellow Africans.
SEE moreAn account of our social, economic and environmental impacts and how these contribute to our sustainability and ability to achieve our purpose. It includes our environmental, social and governance report, and Standard Bank South Africa’s transformation report.
We recognise that we cannot achieve our purpose ‘Africa is our home, we drive her growth’ without our stakeholders. That’s why we engage with our stakeholders on a regular basis, to understand their concerns, build relationships, and develop partnerships.
On this page:An account of our social, economic and environmental impacts and how these contribute to our sustainability and ability to achieve our purpose. It includes our environmental, social and governance report, and Standard Bank South Africa’s transformation report.
We have a series of internal policies, procedures and controls
in place to ensure that accurate data is provided. Our group
social and ethics committee provided oversight of this report.
PricewaterhouseCoopers provided limited external assurance on
selected performance data in this report, indicated by
a , in accordance with the International Standard on Assurance
Engagements (ISAE 3000). The scope of the assurance
engagement and the statement of assurance are provided in
this section.
An account of our social, economic and environmental impacts and how these contribute to our sustainability and ability to achieve our purpose. It includes our environmental, social and governance report, and Standard Bank South Africa’s transformation report.
In 2017, we began our journey on impact reporting, identifying the areas of impact that our core business has on the societies in which we operate. Here you will find an overview of the progress made in 2018 in further refining our SEE impact areas.
SEE moreAn account of our social, economic and environmental impacts and how these contribute to our sustainability and ability to achieve our purpose. It includes our environmental, social and governance report, and Standard Bank South Africa’s transformation report.
Our report is structured according to six areas in which we believed that Standard Bank could make a significant positive social, economic and environmental (SEE) impact.
On this page:An account of our social, economic and environmental impacts and how these contribute to our sustainability and ability to achieve our purpose. It includes our environmental, social and governance report, and Standard Bank South Africa’s transformation report.
Accessible and convenient digital channels are essential to broaden and deepen financial inclusion across the continent. We’re keenly aware of our responsibility to ensure that our customers have a clear understanding of our products and services, and how to use them cost-effectively. We’re committed to partnering with our customers during difficult times, and endeavour to work with our customers to develop workable solutions when they find themselves struggling to repay their debt.
Summary Enabling home ownership to improve financial inclusion Digital solutions to improve access and affordability Cutting waiting times in branches to serve our customers better Helping customers make informed financial decisions through consumer education Helping our customers save, invest and plan for the future Our diverse transactional channels provide multiple ways to bank Protecting people’s wealth Generating revenues that drive economic growthAn account of our social, economic and environmental impacts and how these contribute to our sustainability and ability to achieve our purpose. It includes our environmental, social and governance report, and Standard Bank South Africa’s transformation report.
Micro, small and medium enterprises are key drivers of economic growth and job creation across Africa. But many struggle to move from start-up businesses to sustainable firms with the potential to expand and employ others.
Summary Incubators and training Developing economic opportunities with fintech entrepreneurs in Africa Finance for entrepreneurs to grow their businesses Improving financial access with digital solutions for SMEs Helping businesses to thriveAn account of our social, economic and environmental impacts and how these contribute to our sustainability and ability to achieve our purpose. It includes our environmental, social and governance report, and Standard Bank South Africa’s transformation report.
Standard Bank works with governments, development finance institutions and other commercial banks to structure and provide appropriate financial solutions to address Africa’s infrastructure gaps, with appropriate risk sharing arrangements.
Inadequate power, water, transport and telecommunications infrastructure inhibits Africa’s economic growth and potential for job creation and human development. The African Development Bank has estimated that Africa needs USD170 billion per year in infrastructure investment.
Summary Investing in renewable energy Financing transport infrastructure to boost trade Expanding telecommunications infrastructure Funding water infrastructure, an increasingly scarce resourceAn account of our social, economic and environmental impacts and how these contribute to our sustainability and ability to achieve our purpose. It includes our environmental, social and governance report, and Standard Bank South Africa’s transformation report.
Africa’s growth depends on her people having access to quality education, and the promotion of skills training and lifelong learning opportunities in the context of the fourth industrial revolution.
Standard Bank supports this in various ways. We work with partners in the education and corporate sectors to address the challenge of affordable and accessible student finance, including through innovative models such as our Feenix crowd-funding platform in South Africa.
Summary Funding higher education for Africa’s youth Helping young people to enter the workplace Supporting quality schooling Supporting early childhood developmentAn account of our social, economic and environmental impacts and how these contribute to our sustainability and ability to achieve our purpose. It includes our environmental, social and governance report, and Standard Bank South Africa’s transformation report.
Our purpose is to drive Africa’s growth. A core part of our business is to facilitate trade and investment flows between African countries, and between African countries and global markets.
We partner with international investors to connect them to opportunities in Africa, and with African governments, SOEs and businesses to facilitate their access to global capital markets. We helped raise over USD15 billion of finance for our African clients in 2018. We’re also working with African firms, and small enterprises in particular, to improve their access to trade finance.
Summary Expanding African trade to drive Africa’s growth Celebrating our 10-year partnership with ICBC: Growing Africa-China trade and investmentAn account of our social, economic and environmental impacts and how these contribute to our sustainability and ability to achieve our purpose. It includes our environmental, social and governance report, and Standard Bank South Africa’s transformation report.
Standard Bank is a major employer in Africa, employing over 52 147 people. We encourage continuous learning and development to ensure our people are equipped to meet the demands of a rapidly changing, increasingly digital world of work. We invest in training and development at all levels, enabling us to build a strong succession pipeline of future leaders.
Summary Building and retaining local skills and capabilities in our countries of operations Investing in our people Preparing graduates for employment Preparing our people for the future world of workAn account of our social, economic and environmental impacts and how these contribute to our sustainability and ability to achieve our purpose. It includes our environmental, social and governance report, and Standard Bank South Africa’s transformation report.
Standard Bank recognises that our core business activities must contribute to the prosperity and wellbeing of the societies and environment in which we operate. This understanding defines our purpose: Africa is our home. We drive her growth, and is supported by sound environmental, social and governance (ESG) policies and outcomes.
This report provides an overview of our ESG practices and performance for 2018.
SEE moreThis report provides an overview of our environmental, social and governance (ESG) practices and performance for 2018.
Standard Bank is committed to doing the right business the right way, ensuring that our clients are treated fairly and consistently, that we adhere to global and national regulatory and governance standards, and that our decisions and actions are informed by the group’s values and ethics. As per South Africa’s King IV Code of Corporate Governance, we recognise that we are an integral part of the societies in which we operate, dependent on these societies for our licence to operate, and that we are therefore obligated, morally and legally, to act in accordance with what is good for these societies as well as what is good for the bank.
About this report Engaging our stakeholders and determining our material issues Material issues during the reporting period Our value drivers and our material issues What is our ‘SEE impact’ all about?This report provides an overview of our environmental, social and governance (ESG) practices and performance for 2018.
The greatest impact we have as a financial institution is through our financial activities. We have developed a comprehensive framework which will ensure that the group proactively identifies, manages, monitors and embeds environmental and social (E&S) risk management into its lending processes. Standard Bank aims to drive Africa’s growth with minimal negative reputational, social, economic and environmental impact.
Managing E&S risks and opportunities Managing and mitigating indirect environmental and social risk Environmental and social management system Codes, standards and guidelines Climate change risk management Responsible finance Financial instruments to promote positive social and environmental impacts Human rightsThis report provides an overview of our environmental, social and governance (ESG) practices and performance for 2018.
Climate change, coupled with the related issue of water scarcity, has emerged as a leading risk for business and society. SBG is working toward better understanding our environmental impacts and the impacts of climate change on our business. In 2018 we continued to invest in the reduction of our direct carbon footprint through energy and water monitoring and savings measures at our head offices and branches.
Our direct environmental performance Operational carbon footprint managementThis report provides an overview of our environmental, social and governance (ESG) practices and performance for 2018.
We understand that to become the leading financial services organisation in, for and across Africa, we must contribute to the long-term prosperity of the communities and countries in which we operate, by facilitating inclusive economic growth and social development.
To do this effectively we must ensure our relevance to social needs and our capacity to help advance national objectives. Our vision commits us to contributing to socioeconomic development in a way that is consistent with the nature and size of our operations in the countries we serve.
Valuing our people Diversity and inclusion Growing our peopleThis report provides an overview of our environmental, social and governance (ESG) practices and performance for 2018.
Africa’s growth depends on her people having access to quality education, and the promotion of skills training and lifelong learning opportunities in the context of the fourth industrial revolution.
Investing in communities Supporting early childhood development Supporting quality schoolingThis report provides an overview of our environmental, social and governance (ESG) practices and performance for 2018.
The group social and ethics committee is responsible for ensuring that we act ethically in relation to internal and external stakeholders, and society more broadly.
The committee meets quarterly and includes executive and non-executive directors. Key issues discussed by the committee during 2018 included progress on embedding an ethical culture in Standard Bank; group-wide principles for stakeholder engagement; measures to accelerate gender and racial transformation within South Africa, and gender equity across the group; effectiveness of group policies and processes to minimise instances and support the victims of discrimination and sexual harassment; issues raised by environmental and social rights groups; and employee wellbeing.
Promoting sound governance and integrity Governance structures and accountability Our ethics and values Conduct risk management framework Oversight and assurance Political party fundingThis report provides an overview of our environmental, social and governance (ESG) practices and performance for 2018.
We understand that responsible management of environment, health, safety and social responsibility issues is important to our growth, profitability and long-term success. This section provides a selection of our ESG performance data from 2016 – 2018.
On this page:
This report provides an overview of our environmental, social and governance (ESG) practices and performance for 2018.
Broad-Based Black Economic Empowerment Generic Verification Certificate
Download PDFThis section of our reporting suite looks at how The Standard Bank of South Africa (SBSA) is enabling the transformation of South Africa’s economy through our broad-based black economic empowerment programmes.
This section of our reporting suite looks at how The Standard Bank of South Africa (SBSA) is enabling the transformation of South Africa’s economy through our broad-based black economic empowerment programmes. The report is structured according to the elements of the Financial Sector Code and covers the initiatives, projects, and strategies that are in place to drive transformation.
SEE moreThis section of our reporting suite looks at how The Standard Bank of South Africa (SBSA) is enabling the transformation of South Africa’s economy through our broad-based black economic empowerment programmes.
Enabling the transformation of South Africa’s economy aligns with our group social, economic and environmental (SEE) value driver which seeks to generate social, economic and environmental value for our stakeholders and society through our core business activities.
SEE moreThis section of our reporting suite looks at how The Standard Bank of South Africa (SBSA) is enabling the transformation of South Africa’s economy through our broad-based black economic empowerment programmes.
Standard Bank’s purpose is ‘Africa is our home, we drive her growth.’ Driving growth means an economy in which every South African, regardless of their race or gender or the social context, can access basic necessities; and an economy in which success and prosperity are the result of hard work and talent, rather than inherited privilege or personal connections. As a corporate citizen with a social responsibility, we are committed to supporting economic growth.
SEE moreThis section of our reporting suite looks at how The Standard Bank of South Africa (SBSA) is enabling the transformation of South Africa’s economy through our broad-based black economic empowerment programmes.
The report is structured according to the elements of the Financial Sector Code and covers the initiatives, projects, and strategies that are in place to drive transformation.
Standard Bank’s BEE Scorecard Ownership Management control Skills development Preferential procurement Socioeconomic development and consumer education Empowerment financing and enterprise and supplier development Access to financial servicesThis section of our reporting suite looks at how The Standard Bank of South Africa (SBSA) is enabling the transformation of South Africa’s economy through our broad-based black economic empowerment programmes.
More information about the ways in which Standard Bank is impacting on the economies and societies in which we operate.
SEE moreThis section of our reporting suite looks at how The Standard Bank of South Africa (SBSA) is enabling the transformation of South Africa’s economy through our broad-based black economic empowerment programmes.
The greatest impact we have as a financial institution is through our financial activities. We have developed a comprehensive framework which will ensure that the group proactively identifies, manages, monitors and embeds environmental and social (E&S) risk management into its lending processes. Standard Bank aims to drive Africa’s growth with minimal negative reputational, social, economic and environmental impact.
We define E&S risk as:
The E&S risks associated with our financing and banking services depend on the type of financial products; the sectors in which our clients operate; the nature of clients’ operations and the location of clients’ activities. E&S risk cross cuts credit, operational, legal, reputational and shareholder value risk. Assessment and management of E&S risk is undertaken at multiple points during the transaction life cycle, including when taking on new clients, assessing pre-credit and credit applications, and developing and offering new products and services.
Our environmental and social management system (ESMS) enables us to better assess, mitigate, document and monitor impacts and risks associated with financing and investing globally. It has played a role in ensuring that E&S risks and opportunities are appropriately screened, managed and monitored throughout the transaction life cycle. Our ESMS has also helped highlight the need to develop new business areas by targeting environmental/green/climate and social finance opportunities or sectors.
Opportunities
We promote green and social investments and support clients and
stakeholders who want to improve their business
processes in an environmentally and socially sound manner. This
includes:
We have a comprehensive framework to help identify and manage E&S risk. The group Environmental & Social Risk and Finance (GESRF) team is responsible for ensuring that all environmental, social and related risks are correctly identified, evaluated and managed, and for ensuring that green, social and carbon financing opportunities are identified and acted upon.
Our E&S risk assessment processes are based on international best practice and are proactively embedded into lending practices at an early stage. This enhances E&S consideration and accountability in investment decision-making and monitoring, assists clients in managing their material E&S impacts and risks and, in so doing, improves their performance and guards against unforeseen risk. Our assessment processes have been broadened and are being systematically expanded across all business units within the group (CIB, PBB, Wealth). Our new, broader ESMS integrates E&S screening, management and monitoring into business and credit functions globally, enabling us to assess, mitigate, document and monitor impacts and risks associated with financing and investments. The expansion and integration of these management measures ensure E&S issues and opportunities are truly embedded in our overall performance. New environmental/green/ climate and social opportunities are being explored in appropriate sectors and with similar-minded clients.
Environmental & Social Management System (ESMS)
Our E&S risk management process aims to ensure E&S consideration and accountability in investment decision-making, monitoring and banking activities.
Standard Bank encourages clients to meet relevant internationally accepted E&S standards and to develop action plans to close any gaps between these and their current E&S performance. We work with our clients to assist them to manage their material E&S risks and impacts.
Our exceptions list has several general and regional exclusions with respect to the type of activities for which we will not provide banking or lending facilities. It is reviewed at least annually. It consists of two lists:
E&S Risk management is undertaken throughout the transaction life cycle from pre-credit to post financial close.
E&S screening
E&S risk screening is applied to all transactions
(excluding personal banking) at pre-credit application stage. We use our
E&S screening tool to assess E&S risk for different risk categories of
transactions across the group.
Screening of new transactions
Pre-credit committees are responsible for ensuring that E&S risks are
identified at application phase. Screening provides
an indication of whether to proceed with a transaction, and whether
further assessment is required.
Screening provides for three levels of assessment for new transactions. These are applied according to the type of financial product, the quantum and tenor of the transaction and the sector. We assess the E&S risk involved in the activities related to:
Risks are rated low, medium or high. All project-related transactions and medium- and high-risk outcomes are escalated to the group environmental & social risk finance (GESRF) team, which works with the business and credit teams to examine and mitigate such risks. Where appropriate, we undertake an enhanced due diligence and ongoing monitoring to ensure risks are properly managed. Decisions on transactions rated as high E&S risk require sign-off from the head of GESRF.
Screening of existing transactions
Our E&S screening tool is also applied by our credit managers in their
regular reviews of existing transactions and clients.
This enables any E&S risks that emerge after financial close to be
flagged and assessed. Transactions or clients identified
as high E&S risk are reviewed annually, in addition to the client having
a negative change in their annual E&S rating. Where
required, GESRF team members engage with clients to gain a better
understanding of issues. Where appropriate, we may
require implementation of mitigating actions, or additional reporting
requirements.
E&S due diligence
Different financial products carry different
levels of environmental and social risk. The depth of environmental and social
due diligence is based on the level of risk, with enhanced due diligence for
transactions that represent significant risk to the
bank, society and environment.
The scale and scope of due diligence is determined per transaction, as advised by the GESRF team. Our E&S assessment process aims to ensure that the level of due diligence is commensurate with the potential level of E&S risk associated with a transaction. Due diligence may include sector or issue specific questions, direct client engagement and site visits. GESRF is responsible for determining whether a full due diligence process using independent external consultants is required.
Due diligence highlights issues requiring mitigation or management, and actions required to ensure transactions comply with relevant international and national standards and legislation, including IFC performance standards where applicable. We maintain a database of all project-related transactions and high-risk transactions, and monitor these from precredit to financial close, and during the monitoring period post financial close.
In some cases, trade-offs may be required. For example, solar energy production requires large tracts of land, with associated environmental impacts. Careful analysis of the relative benefits, risks and costs is necessary to find the ‘greater good’, together with exploring the optimal mitigation of any necessary trade-offs, e.g. utilising already degraded land for solar projects. These decisions are always made on the strict provision that any such trade-offs never compromise the bank’s commitment to upholding human rights and must always adhere to all applicable laws and regulations.
E&S monitoring
E&S risk management includes monitoring of
relevant transactions to ensure E&S commitments are met. Frequency and
type of monitoring is determined according to the type of transaction being
financed and the level of E&S risk.
High-risk transactions, and transactions categorised as Category A and where appropriate as Category B under the Equator Principles, are monitored on an ongoing basis. Where necessary, GESRF undertakes site visits to ensure that E&S performance is being managed appropriately. In relevant cases we use independent external professionals to monitor implementation and progress. The GESRF team conducts portfolio-wide reviews of specific sectors where E&S risks are considered high.
In cases where clients are not compliant with E&S requirements, we work with them to achieve the necessary standards. If there is no progress toward meeting requirements within agreed timeframes, remedies may include:
Our application of the Equator Principles framework
The Equator Principles (EP) is a global risk management framework for determining, assessing and managing environmental and social risk in project related transactions. Standard Bank currently chairs the committee of the Equator Principles Association. EP financing institutions categorise projects proposed for financing based on the magnitude of potential environmental and social risks and impacts (Category A, B or C). The GESRF team provides the categorisation for EP transactions and is involved in the ongoing due diligence to be conducted for all category A and B projects. GESRF applies the EP and associated IFC Performance Standards on Environmental and Social Sustainability (Performance Standards) and the World Bank Group Environmental, Health and Safety Guidelines (EHS Guidelines) to all relevant project-related financing.
In 2018, no active EP deals were terminated due to E&S non-compliance. In one case, we are exploring remedies linked to E&S compliance timelines to promote E&S compliance.
Transactions screened against the Equator Principles
Total number of Equator Principle projects that reached financial close within 2018
Total number of EP projects financed
Environmental due diligence on Alten Hardap
In Namibia, Standard Bank partnered with Proparco, a French development finance institution, to develop the funding structure for the 37 MW Mariental solar PV plant. Stanbic Namibia was co-mandated lead arranger and under-writer with Proparco. The plant is the first large-scale independent power producer project in Namibia, and one of the largest PV plants in Africa outside South Africa. It will increase Namibia’s generation capacity by 5%, generating 120 000 MW hours per year for over 25 years.
Standard Bank undertook an E&S risk due diligence on Alten Solar Power (Hardap) Proprietary Ltd, the consortium selected to construct the plant, prior to the pre-credit application. We reviewed the project’s environmental and social impact assessment and commissioned an independent environmental audit against IFC performance standards. On the basis of gaps identified in the audit, Alten developed a comprehensive Environmental and Social Management System (ESMS) for the project. This included specific commitments applicable to pre-construction, and during construction and operation. Quarterly independent E&S audits were carried out during construction to ensure compliance with the IFC performance standards, ESMS and specific commitments of the financing. The main concerns related to the construction phase included labour recruitment and accommodation. Audit findings were addressed with corrective action plans, which were followed up to ensure implementation. An independent audit will be undertaken during the first year of operation to further ensure E&S compliance. Ongoing monitoring and annual reporting will continue for the tenor of the transaction.
Read more in Reporting to SocietyThe following codes, standards and guidelines underpin the group’s approach to sustainable governance. Liberty has its own environmental and social risk management frameworks.
As a member of the Banking Association of South Africa (BASA), we have adopted a Code of Conduct for Managing Environmental and Social Risk which codifies the role of financial institutions in protecting, promoting and fulfilling social, economic and environmental rights in South Africa. The code covers our operations, procurement, lending practices, products and services and sets a benchmark for effective management of these risks.
As a member of the United Nations Environmental Programme Finance Initiative (UNEP FI) we are committed to raising awareness and understanding about how the financial sector impacts society, and how a shift in priorities and ways of working is crucial for the sector to remain relevant and legitimate in the future. Standard Bank is the Deputy Chair of the UNEP FI Banking Committee and one of the 28 founding member banks of the Principles for Responsible Banking.
We are updating and aligning our systems and processes to be consistent with relevant International Finance Corporation (IFC) Performance Standards.
We are signatories of the Equator Principles (EP), a global standard for screening social and environmental risk. The EP provides a minimum standard for due diligence and monitoring to support responsible risk decisionmaking. This requires us to ensure that, when we lend or provide advisory services to clients, actions are taken to evaluate and actively avoid and mitigate any negative social or environmental impacts. Standard Bank is the longest serving Chair of the Equator Principles Association and the first African bank to be elected to this position. Currently 92 Equator Principles Financial Institutions (EPFIs) in 37 countries have adopted the EPs.
We undertake independent external assurance of our approach and outcomes for our projects financed (both advisory and project related lending).
Human rights are the basic and universal rights that underpin each person’s inherent freedom, dignity, and equality as outlined in the United Nations Universal Declaration of Human Rights and the International Labour Organisation Declaration on Fundamental Principles and Rights at Work. We have used these universal benchmarks as our starting point for defining human rights and have based our human rights statement on the UN Universal Declaration of Human Rights.
Standard Bank was recently certified as a Level 1 BEE Company, under the newly revised Financial Sector Code. Standard bank realises the need for transformation and continual development of a company culture that accommodates diversity and inclusion. This includes transparent engagement within the Group, from Board members to general staff, on issues that impact on our ability to accelerate transformation; Ensuring that our core business makes a substantial contribution to enabling economic activity and driving economic transformation; and Partnering with third parties to develop black-owned businesses as suppliers to Standard Bank.
E&S internal training and awareness
Staff training
focuses on general environmental and social risk awareness, Standard
Bank’s environmental and
social risk management process, and relevant environmental guidelines,
standards and requirements. In 2018, we
provided classroom training on the E&S screening process for investment
banking, commercial banking, property
finance, credit and legal teams. Selected teams in corporate, business,
commercial, and investment banking will
be required to undertake online E&S courses during 2019, on our internal
e-learning portal. Bespoke classroom
or one-on-one training is provided to select teams or individuals, such
as legal teams, group executives, sectorbased
teams and in-country or regional E&S coordinators.
Environmental and social risk training in 2018