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.
Africa is our home, we drive her growth. We aim to make life better for our fellow Africans by doing the right business, the right way, contributing to the financial wellbeing of our clients, and supporting sustainable and job-creating growth of the economies in which we operate.
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.
Our reporting to society platform aims to communicate with a broad group of stakeholders about how we approach Environmental, Social and Governance (ESG) processes, and 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.
SEE requires us to take a long-term view, and to assess the positive and negative impacts of every business decision not just for the group, but for the communities in which we operate.
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 (tick), 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.
Download PDFAn 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’ve identified seven areas in which we believe we can best achieve our purpose, to drive Africa’s growth, while making a substantial positive impact on society, the economy and the environment.
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.
Financial inclusion supports economic and human development and reduces inequality. Achieving financial inclusion requires that individuals and businesses have access to useful and affordable financial products and services that meet their needs, delivered in a responsible and sustainable way. This includes payments, savings, credit and insurance.
Summary Digital solutions to improve access and affordability Consumer education Providing solutions to encourage people to save and plan for their future financial security Enabling home ownership Insurance Remittance servicesAn 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 adopted health an additional SEE impact area in 2019, in line with SDG 3, to ensure healthy lives and promote well-being for all at all ages, and in recognition that attainment of several other SDGs, including ending poverty and reducing inequalities, depends on improving the health of Africa’s people.
Summary Affordable health and life insurance solutions Provision of medical equipment and infrastructure Corporate social 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.
Job creation and enterprise growth drives economic development and alleviates poverty. Standard Bank works with our clients to understand their challenges and priorities, provide them with appropriate financial solutions to support their growth and expansion into new markets, and deliver digital solutions to meet their unique needs. We also provide targeted support to our SME clients, to help them develop their businesses, grow their skills, manage cash flow and access new business opportunities.
Summary Partnering with Africa’s fintech entrepreneurs Standard Bank incubators and enterprise development services Innovative credit solutions Technological solutions for small-scale farmers to improve productivity and access to finance Partnership with UN Women to improve women farmers’ productivity through climate smart agriculture Services tailored for small enterprisesAn 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.
Improvements to energy, water, transport and telecommunications infrastructure facilitate economic growth and create opportunities for job creation and human development. Crucial public infrastructure, like schools and housing, helps people improve their standards of living and future prospects. 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.
Summary Energy infrastructure Transport infrastructure Telecommunications infrastructure Sustainable housing School infrastructureAn 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.
Summary Corporate social investment Access to student finance Employee 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.
African economic growth depends on the ability of African governments and businesses to access international investment and value chains. Standard Bank helps facilitate investment and trade flows between African countries, and between African countries and global markets, drawing on our presence in major international markets, our ability to access international pools of capital, our strong client relationships with global multi-nationals, and our strategic partnership with ICBC.
Summary Facilitating investment in Africa Helping African governments and businesses access capital Connecting China and Africa Taking the friction out of trade financeAn 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 is extremely vulnerable to climate change, with major implications for agricultural production, food security, access to water, health and livelihoods. Many parts of the continent are already experiencing increased water stress as a result of prolonged drought, while yields from rain-fed agriculture are declining in many areas.
Summary Managing climate-related risk Sustainable finance Working with businesses and households to implement smallscale green energy solutions Sustainable bond framework Sustainable trade finance UN Principles for Responsible BankingAn 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) management.
This report provides an overview of the groups ESG policies, processes and governance structures in place to support our commitment to doing the right business the right way.
SEE moreThis report provides an overview of our environmental, social and governance (ESG) practices and performance for 2019.
Our report highlights how we ensure that a strong ethical culture and appropriate conduct is embedded across the group - reflected in the way in which we treat our clients, suppliers and partners, how we support and develop our people, and how we impact on the societies in which we operate.
SEE moreThis report provides an overview of our environmental, social and governance (ESG) practices and performance for 2019.
“Around the world, investors, regulators and standard setting bodies are demanding greater transparency about how businesses are managing non-financial risks, particularly those created by climate change. Social expectations about the role and responsibilities of business in general also continue to change. Our business depends on us being a trusted partner to a broad range of stakeholders, including our clients, our regulators, our business partners and the communities in which we operate.”
SEE moreThis report provides an overview of our environmental, social and governance (ESG) practices and performance for 2019.
The Standard Bank Group board is responsible for ensuring the Standard Bank Group conducts itself as a responsible, ethical corporate citizen
On this page:This report provides an overview of our environmental, social and governance (ESG) practices and performance for 2019.
Standard Bank’s material issues are those that matter most to our key stakeholders and providers of capital, and impact on our ability to create value in the short, medium and long term. Our material issues are informed by the expectations of our stakeholders, and the economic, social and environmental context in which we operate.
On this page:This report provides an overview of our environmental, social and governance (ESG) practices and performance for 2019.
Stakeholder engagement is part of our everyday business. We depend on constructive relationships with our diverse stakeholders to achieve our purpose of driving Africa’s growth, understand stakeholder expectations, and help us identify the material issues impacting our business.
On this page:This report provides an overview of our environmental, social and governance (ESG) practices and performance for 2019.
Achieving our group purpose and strategy depends on our reputation as a trusted partner across Africa. The group's code of ethics, organisational culture and values determine how we do business and with whom we do business.
How we do business Ethics and values Managing our risks Whistleblowing UN Principles for Responsible Banking Respecting human rights Our approach to tax matters Our approach to procurement Personal Conduct and managing conflicts of interest Market conduct and treating our customers fairly Market abuse controlThis report provides an overview of our environmental, social and governance (ESG) practices and performance for 2019.
Standard Bank’s ESG risk assessment process is based on international best practice. The group adopted an environmental and social risk governance standard and policy in 2018, which set out the principles under which we identify, measure, manage and report on environmental and social (E&S) risk.
Managing our environmental and social risks Managing E&S risk in lending Managing climate risk Reducing our direct environmental footprintThis report provides an overview of our environmental, social and governance (ESG) practices and performance for 2019.
There is an increase in opportunities to deliver sustainable and impactful investment expertise to our clients and stakeholders across a broad range of growth themes.
Sustainable finance Sustainable Bond Framework Sustainable trade finance Investment in renewable energy Working with businesses and households to implement smallscale green energy solutionsThis report provides an overview of our environmental, social and governance (ESG) practices and performance for 2019.
How our people think and feel about their work correlates directly with how satisfied our clients are, and how successful we are in delivering our strategy and performance aspirations. We strive to create a work environment in which our people feel deeply connected to our purpose, their colleagues and our clients.
Our people Leadership development Employee development Talent attraction and retention Diversity and inclusion Employee wellbeingThis report provides an overview of our environmental, social and governance (ESG) practices and performance for 2019.
Standard Bank aims to create shared value through our corporate social investment (CSI) initiatives, addressing social needs in a sustainable manner. Our CSI programme aims to deliver benefits for the communities in which we operate, while enhancing our visibility and reputation, improving our employee experience, and demonstrating our local relevance
SEE moreThis report provides an overview of our environmental, social and governance (ESG) practices and performance for 2019.
We understand that the 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 2017 – 2019 and a view of our governance policies.
On this page:
This report provides an overview of our environmental, social and governance (ESG) practices and performance for 2019.
Our 2019 B-BBEE 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.
Standard Bank South Africa’s (SBSA) Transformation report provides an overview of the activities that we perform to support economic inclusion and transformation in South Africa. The report is structured according to the elements of the Financial Sector Code (FSC) and covers the initiatives, projects, and strategies we’ve put in place to drive transformation within the bank and the economy.
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 transformation of South Africa’s economy is a multifaceted and long-term undertaking. We are committed to playing our role in supporting this 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.
“We reflect our commitment to improving societies in our SEE value driver, which drives our strategy and is one of the measures against which we assess our performance.”
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.
In 2019 we maintained our Level 1 rating and also improved our score from 111.45 in 2018 to 117.33 in 2019.
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. Our B-BBEE scorecard highlights our performance in 2019.
Standard Bank’s BEE Scorecard 2019 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 transformation of South Africa’s economy is a multifaceted and long-term undertaking. We are committed to playing our role in supporting this transformation. We recognise that broad-based black economic empowerment (BBBEE) is a moral, legal and commercial imperative, crucial to securing a more sustainable growth path for South Africa.
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 Group has a robust and stringent conflicts of interest control framework in place to ensure that conflict of interest risk is adequately managed.
The framework provides for processes, procedures and mechanisms to identify, prevent and manage conflicts of interest to:
The group has implemented a number of policies and procedures under the framework, including the group’s conflicts of interest policy which aims to ensure that the group and all our employees comply with the applicable statutory and regulatory obligations by ensuring that all reasonable steps have been taken to prevent or fairly manage potential conflicts of interest, and thereby mitigate the effect that such conflicts could have on our clients and the group. The policy reflects the minimum requirements that need to be adhered to, to ensure that all reasonable steps are taken to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. Employees are furthermore required to adhere to the group’s gifts and entertainment policy; outside business interests policy; and personal account trading policy.
Conduct risk is the risk of failure to act in accordance with clients’ best interests, fair market practice and codes of conduct.
It extends to all conduct and behaviour in our daily business activities with all our stakeholders, internally and externally. Standard Bank places our clients at the centre of our business. We provide products and services based on our clients’ needs. We do not promote products or services to meet sales or incentive targets. We have zero risk appetite for unfair customer outcomes arising from inappropriate judgement and conduct in the execution of our business activities, or wilful breaches of regulatory requirements.
Executive and senior management are responsible for championing a culture that delivers fair client outcomes and embedding conduct standards. We monitor conduct through business conduct committees, the group executive committee, social and ethics management committee and social and ethics board committee. The group board and social and ethics committee are ultimately responsible for ensuring that conduct risks are adequately identified, measured, managed and monitored and that governance arrangements are upheld.
We identify and manage conduct risk proactively using a combination of leading and lagging indicators. Each area in the group is required to complete a monthly conduct dashboard. Conduct dashboards monitor a range of indicators through eight conduct pillars, and provide a universal set of metrics across key conduct risk areas, which include, among others, conduct, culture and governance. They are an important mechanism to assess non-financial risk and identify appropriate responses. Metrics include operational, technology, compliance, regulatory and human capital risks. The dashboards are submitted to the group executive committee on a quarterly basis, and subsequently to the social and ethics management committee and social and ethics board committee. We’ve introduced a number of automated solutions across our countries of operation to improve efficiency in money laundering control and declaring of outside business interests.
All business units and corporate functions reported operating within acceptable tolerance levels for conduct risk throughout 2019. Tolerance is assessed by the various lines of business through key conduct risk indicators which are aggregated and provide an overall conduct culture rating (positive, negative or neutral). No material product or service-related issues materialised during 2019.
Looking ahead, we will continue to strengthen our control environment and approach to conduct risk through driving good business practices and reinforcing appropriate behaviours that are aligned to the values of the group and will continue to identify areas for enhancement through periodic diagnostics and ongoing metrics monitoring. We’re increasing first-line accountability through communication campaigns and conduct training awareness. We’re strengthening second line of defence by developing tools and methodologies to help improve oversight and monitoring of conduct risks.
We track fines and penalties issued against the group to assist us to identify problem areas that need attention and to implement appropriate remedial action.
The group seeks to maintain the highest standards of professional conduct when undertaking financial market transactions, communicating with market participants and when handling confidential information. Our market abuse control framework aims to ensure that the group and its employees support the orderly, fair and transparent functioning of the financial markets, encourage its integrity and contribute to the enhancement of financial stability in the markets within which the group operates. The framework specifically seeks to ensure that there are adequate and effective controls in place to prevent, manage and/or mitigate market abuse risk.
Group policies and frameworks to combat financial crime include:
Our AML/CFT structures and framework are informed by Financial Action Task Force recommendations and designed to comply with statutory and regulatory obligations in all our countries of operation. They ensure that:
AML/CFT legislation in the countries in which we operate is continuously evolving. Our operations align their AML/CFT risk management and compliance programmes to these changes as they occur.
In South Africa, the Financial Intelligence Centre Act has been amended to incorporate a risk-based approach to compliance in respect of the AML/CFT regulatory framework. These amendments include the requirement to develop, document, maintain and implement a risk management and compliance programme that must demonstrate the group’s ability to effectively identify and mitigate money laundering and terrorist financing risk.
Group Financial Crime Compliance participates in a forum comprising multiple regulators and other industry stakeholders, which is designing strategies to enhance the fight against the illicit flow of funds. Work is also being conducted to enhance control measures for facilitation of cross-border transactions between related parties, to guard against potential efforts to evade tax.
During 2019, Standard Bank Group was issued with administrative sanctions relating to AML/CFT deficiencies identified in some of our countries of operation. The group is in the process of enhancing the enablement of our AML/CFT frameworks in these jurisdictions, with programmes of work overseen by senior executives.
In South Africa, the South African Reserve Bank Prudential Authority imposed an administrative sanction of R30 million on Standard Bank South Africa (SBSA) in December 2019, for failure to comply with prescribed suspicious and unusual transaction reporting timelines, as contained in the Money Laundering and Terrorist Financing Control Regulations. R7.5 million of the administrative sanction was suspended for a period of three years, conditional upon SBSA not being found guilty of a similar offence during that time period. Standard Bank was also directed to take remedial action to address and enhance processes for reporting suspicious and unusual transactions timeously. SARB acknowledged in its press release that the administrative sanction is not an indication that SBSA has in any way facilitated transactions involving money laundering or the financing of terrorism. Standard Bank took immediate action to address the issues identified by the SARB and progress is being tracked and reported to the SARB on a regular basis.
We manage our anti-bribery and corruption risk in accordance with the Organisation for Economic Co-operation and Development’s Guidance for Multinational Enterprises and other applicable statutory and regulatory obligations. The group’s ABC policy commits us to:
All employees receive ABC general awareness training. Areas of the group that are perceived as being more susceptible to the risk of bribery and corruption receive specialised training.
The group prevention of the facilitation of tax evasion policy is designed to regulate the development, implementation and integration of procedures to prevent the facilitation of tax evasion by associated persons of the group.
The policy aims to protect the group and its employees from legal, regulatory and reputational risks and penalties that may result from the failure to implement reasonable procedures to prevent the facilitation of tax evasion. All employees receive prevention of the facilitation of tax evasion training.
We have measures in place to mitigate fraud risk and are committed to continuous improvement of these.
We define fraud as the unlawful and intentional misrepresentation committed to secure an unfair or unlawful gain. Fraud includes, but is not limited to, application fraud, card fraud, procurement fraud, employee fraud, digital fraud, insurance fraud and transaction fraud.
Group investigations and fraud risk provides fraud risk advisory services to the group, oversees fraud risk activities, escalates material fraud incidents and investigations in line with risk appetite, provides recommendations on fraud controls to be considered by the first line of defence and conducts internal and external investigations. All employees, associated persons and third-parties must raise concerns and report all attempted, suspected, and actual fraud via reporting channels defined in the policy directly to a line manager, to group investigations and fraud risk, or via the anonymous whistleblowing line or the FraudStop process. We allow for anonymous reporting. We prohibit victimisation and protect anyone who reports fraud from suffering prejudice.
We are committed to protecting the personal information of clients, third-parties and employees, and adhere to the relevant codes and regulations, including South Africa’s Code of Banking Practice.
We dedicate extensive focus to management of cyber risk. We continue to invest in enhancing cyber resilience across the group, including investing in improved capabilities to predict, prevent, detect and respond to cyber incidents.
The group’s data privacy policy provides for measures to ensure that the group processes personal information in a lawful and responsible manner, in line with in-country privacy laws.
These measures, together with other relevant policies, inform the security safeguards necessary to protect personal information from unlawful and unauthorised access, use, destruction or loss. These measures cover all processing activities within the group.
The data privacy consent and notification framework enables the free flow of information within the group. This allows each group entity to align itself with one consistent commitment to the customer in terms of protecting their information. Where we become aware of privacy incidents, we investigate the incidents, and immediately take steps to mitigate any risks to clients. Our privacy statement can be found here. Standard Bank South Africa’s privacy statement is published here.
Our PAIA (Promotion of Access to Information Act) manual and the Standard Bank website set out the procedures for information requests. Our group data privacy policy applies to all information requests.
Cyber incidents are a major threat to companies globally, and to financial services companies in particular, which are commonly targeted.
Standard Bank is committed to safeguarding clients’ data, money and time from cyber threats. Cyber risk receives extensive focus at various governance and management committees across every level of the organisation.
Standard Bank Group board has delegated the management of cyber risk to the group chief information security officer (CISO), who is responsible for creating and executing the cybersecurity strategy and programme. The strategy and programme are aligned to security frameworks such as ISO27001, the US National Institute of Standards and Technology, and Information Security Forum’s Standard of Good Practice for Information Security and has been ratified by the group board. In 2019, the group certified the Africa shared core banking platform against ISO27001. The CISO provides regular updates to the board on the group’s cyber risk posture. The board also gets assurance through an annual independent assessment of the strategy by a cybersecurity expert.
As part of the cybersecurity programme, the group employs a continuous testing, continuous monitoring strategy. Testing includes technology testing (vulnerability scanning, penetration testing), people testing (training and awareness) and response testing (cyber incident simulations, disaster recovery testing) to stress test security capabilities. Monitoring includes using machine learning, big data and robotics to detect suspicious behaviour, as well as continuously measuring the effectiveness of security controls.
The group maintains dedicated cyber insurance cover for additional protection against common cyber threats. During 2019 the group detected and successfully mitigated several attempted cyber threats, leading to zero material or client impacting incidents for the year.
Cyber security skills shortages are a growing risk to cybersecurity strategies across the globe, with almost two million security vacancies worldwide. In response, the group has created a Cybersecurity Academy to develop cybersecurity skills. In 2019, the academy trained 75 group technology employees on various aspects of cybersecurity.
Work to improve the availability and reliability of our transaction channels is ongoing.
In 2019, we experienced five priority one incidents in South Africa and 14 such incidents in Africa Regions. A priority one incident refers to extensive impact and critical urgency incidents.
Standard Bank endeavours to respond timeously to all customer complaints.
In South Africa, the Ombudsman for Banking Services named Standard Bank overall winner for ‘large’ banks in terms of: Quality of the written response of the bank to the office in response to a specific complainant, response time, and overall fairness of the response. We also received an award for innovation in dispute resolution resulting in a noticeable decrease in consumer disputes and an engagement award for our dealing with the Ombudsman.