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’s environmental and social (E&S) 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 E&S risk.
The standard and policy aim to ensure that our operations effectively assess and manage environmental and social risk associated with all business transactions, particularly in relation to commercial and corporate clients, project finance, commercial debt and equity, short-term banking facilities and trade finance. We are currently reviewing the standard and policy, as part of the process of strengthening ESG governance and climate-related risk management across the group.
Our system integrates E&S screening, management and monitoring into our business and credit functions, enabling us to assess, mitigate, document and monitor risks associated with financing and investments. We undertake E&S risk management throughout the transaction process, from the pre-credit stage to post-transaction financial closure.
Standard Bank encourages our clients to meet relevant internationally accepted environmental and social risk standards and to develop action plans to close any gaps between these and their current performance. We work with our clients to assist them to manage their material environmental and social risks and impacts.
Our exceptions list has several general exclusions for which we will not provide banking or lending facilities. It includes global exclusions and regional restrictions.
The group environmental and social risk (GESR) team is responsible for ensuring that environmental, social and related risks are identified, evaluated and managed.
Screening
E&S risk screening is applied to all transactions
(excluding personal banking) at the pre-credit
application stage. We use our E&S screening tool
to assess E&S risk for different risk categories of
transactions across the Standard Bank Group.
SCREENING INCLUDES ASSESSMENT OF POTENTIAL RISKS SUCH AS:
We apply national laws and standards and our exceptions list when assessing all transactions. In addition, and where applicable, we apply the International Finance Corporation (IFC) Performance Standards and the Equator Principles (an international benchmark) for identifying and managing E&S risk.
Screening new clients and 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.
Each level of assessment includes E&S risk, sector
and client considerations, including the client’s
ability to manage E&S risk and historical track
record. Risks are rated low, medium or high. All
project-related transactions and medium and highrisk
non-project related transactions are escalated
to the GESR team, which works with business and
credit teams to examine and mitigate such risks.
Where appropriate, we undertake enhanced due
diligence and ongoing monitoring to ensure risks
are properly managed. Approval of transactions
rated as high E&S risk require sign-off from the
head of GESR.
Screening existing transactions:
Our E&S screening tool is applied by credit
managers in 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. Where required, GESR
team members engage with clients to gain a better
understanding of issues. Where appropriate, we
may require implementation of mitigating actions,
monitoring and/or reporting requirements
by clients.
The scale and scope of due diligence is determined per transaction, as advised by GESR. The level of due diligence is commensurate with the potential level of E&S risk associated with a transaction, with enhanced due diligence undertaken for transactions that represent significant risk to the group, society and environment.
Due diligence may include sector or issue specific questions, direct client engagement and site visits, or engagement of independent external consultants. Due diligence highlights any issues requiring mitigation or management, which are addressed in the financing requirements of a transaction.
We monitor all project-related transactions and medium and high non project-related transactions to ensure clients meet their E&S commitments. The frequency and type of monitoring is determined according to the type of transaction and the level of risk.
High-risk transactions, transactions categorised as Category A and Category B (where appropriate) under the Equator Principles, are monitored more closely. Where necessary, GESR undertakes site visits to ensure that E&S performance is being managed appropriately. In relevant cases, we use independent external consultants to monitor implementation and progress. The GESR team has input into portfolio-wide reviews of specific sectors, such as coal, oil and gas, 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 additional monitoring and revised, and/or more stringent action plans; specialist/independent intervention; or re-evaluation of the loan.
We are committed to taking appropriate steps where we discover, or are made aware, that actual or perceived human rights abuses or environmental damage has occurred. This may include disciplinary action, exiting a particular business relationship, or constructive engagement with others to promote better practice.
Targeted areas across the group undertake mandatory training which covers environmental and social risk awareness, Standard Bank’s environmental and social risk management process, and relevant environmental guidelines, standards and requirements. Training includes classroom training and online training using the group’s in-house training platform. We’re investigating ESG tools to assist credit managers, country risk and portfolio risk teams with more ESG risk information that matches well with our portfolio characteristics.
Standard Bank employees who received environmental and social risk training in 2019
Classroom training:
Online training:
The Equator Principles
The group is a signatory to the Equator Principles
(EP), a global risk management framework
for determining, assessing and managing
environmental and social risk in project-related
transactions.
The EP provides a minimum standard for due diligence and monitoring to support responsible decision-making. When we lend or provide advisory services to a client, we are required to evaluate and actively avoid and mitigate any negative social or environmental impacts.
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). GESR provides the categorisation for EP transactions and is involved in ongoing due diligence for all Category A and B projects. GESR applies the EP and associated IFC Performance Standards on Environmental and Social Sustainability and the World Bank Group Environmental, Health and Safety Guidelines (EHS Guidelines) to all relevant project-related financing or transactions irrespective of the level of funding.
In 2019, no active EP deals were terminated due to E&S non-compliance.
Category A
High risk
Category B
Medium risk
Category C
Low risk
Standard Bank is committed to prudent management of the risks arising from climate change, as they relate to our direct operational footprint and our lending activities, and to improving our climate-related disclosures over time.
Climate risk is recognised as one of material risks facing the group. We’re strengthening our ESG governance to ensure adequate oversight and improve our ESG risk management systems, which will embed climate-related risk into risk identification, classification, evaluation, analysis, monitoring and reporting.
We continue to develop our climate related risk strategy and align with the Task Force on Climate-related Financial Disclosures (TCFD) guidelines. Climate change is a complex issue and we are working to ensure that we develop a strategy that’s appropriate to our business, our operating environment, and the group’s commitment to create positive social, economic and environmental impact through our core business activities, and drive Africa’s growth.
We established a TCFD working group in 2019, bringing together governance, environmental and social risk, portfolio risk, stress testing, reporting, real estate services, and research functions across the group, together with our sustainable finance experts and sector teams. The group is participating in the UNEP FI's TCFD pilot programme, as well as working with the Banking Association of South Africa and the National Business Initiative to enhance our data on climate risk. Access to reliable data that is relevant to our areas of operation across the African continent is currently a constraint on our alignment with the TCFD guidelines.
Some of the challenges that we are grappling with include inadequate local and regional climate science information, scarce portfolio-level climate data, and a lack of detailed climate-related risk information associated with our clients. While global climate scenarios are available from the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA), the adaptation of these into Africa-specific scenarios, taking account of regional socio-political and economic factors, is not yet mature enough to fully support our scenario assessments of climate related risks on our portfolio.
Climate-related risks are referenced explicitly in the group’s environmental and social risk governance standard and policy. We are reviewing our existing standards and processes to ensure that climate-related issues are appropriately incorporated into the group’s strategic decision-making processes and, where appropriate, inform adjustments to risk appetite based on the results of scenario assessments to be performed on the group’s portfolio. Our environmental and social risk screening tool identifies the climate-related risk of a transaction and/or the client at a transactional level. Going forward, we aim to acquire tools to assist us to develop comprehensive climate-related risk data for our clients. Annual client reviews in high risk sectors will also be expanded to include climate-related risk information. We are incorporating climate-related risk, as a component of ESG risk, in client credit ratings and will be establishing guidelines for appetite and risk tolerance levels for climate-related risk. Portfolio risk management committees will use this information to assess sector appetite. Climate-related risk will also be more fully integrated into capital allocation, pricing processes, and asset allocation processes.
We have already concluded several landmark transactions through our newly established sustainable finance unit, through which we incentivise clients to address climate change and its impacts. We intend to scale up this offering going forward. We remain committed to measuring and reducing our direct carbon and water footprint.
Physical risk mitigation requires an improvement in climate adaption and resilience. Our initial focus will be the agricultural sector where we believe climate-related physical risks will impact macro-economic and social factors such as food security. Opportunities to facilitate adaptation and resilience (e.g. flood control, water efficiency, water storage, ecological restoration, etc.) are being sought.
The transition from carbon-intensive activities to low carbon activities presents risks with respect to job losses, skills shortages, technologies, and government policy. The socio-economic impacts of transition risk are not well understood for Africa and scenarios relevant to regional socio-political characteristics need to be developed to understand transition risk. We believe that mitigation includes skills development, availability of resources and appropriate technologies, adoption of appropriate policies and governance processes and a collective will within the communities in which we operate. We will be working with governments and other stakeholders to play our part in a just transition to a lower-carbon economy. Our initial focus has been on two high carbon emitting sectors: energy and mining and metals. Our coal-fired power finance policy and thermal coal mining finance policy are intended to ensure that we only support developments for much-needed sustained economic development in developing countries, and in line with our lending requirements. We will continue to invest in renewable energy projects across the continent. Work is underway to develop a more comprehensive approach to financing fossil fuels, including oil and gas. We are engaging with a range of stakeholders, including our clients, as we develop this policy.
During 2020, as additional policies are finalised these will be made available on our website. Please also check our website for further climate risk disclosures during the course of the year as we continue to work on this important issue.
* Please refer to the metrics section for our climate risk disclosures.
Short-term actions: | |
Physical risk
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Physical risk is presented by the impacts of climate change, and includes droughts, extreme weather events, and hotter temperatures. We are using global and regional models by the IPCC, IEA and CSIR to identify these risks, and develop ways to improve climate adaption and resilience. Our initial focus is on our existing clients in the agricultural sector, where diversification and medium- to long-term business plans need to include climate adaptation and resilience considerations. We will also be identifying opportunities to finance infrastructure that improves adaptation and resilience, such as flood control, water efficiency and water storage. |
Medium-term actions:
Based on an understanding of climate-related risk in
our portfolio, we will assess the following sectors:
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(climate mitigation)
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Short-term actions: | |
Transition risk
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Transition risk is presented in the transition from carbon intensive activities to low carbon activities, and includes job losses, skills shortages, technology risk, policy and governance risks. Socio-economic impacts are currently not well understood for Africa and scenarios that incorporate local socio-political characteristics are still to be developed. It’s nonetheless clear that transition risk mitigation requires skills development, access to resources and technology, adoption of assertive policies and governance processes and a collective will within the communities in which we operate. We are looking at green financing opportunities that can facilitate just transition. |
Medium-term actions:
Based on an understanding of climate-related risk in
our portfolio, we will assess the following sectors:
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(climate mitigation)
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We have undertaken a preliminary assessment of high carbon emitting sectors in our portfolio. The outcomes are currently undergoing internal authentication, using tools available through the TCFD pilot and other credible sources. Our focus is on both physical risk and transition risk. Where we have significant exposure, we will develop short- and medium-term actions to manage this. In the short term, we’ll be working with qualitative assessments of these sectors. In the medium term, we’ll use scenario-planning and stress-testing methodologies to ensure mitigation actions have sustainable outcomes. Management actions will cover risk mitigation and opportunity development.
South Africa ranks among the top 20 countries with the world’s highest carbon emissions. Our short term efforts will therefore focus on South Africa’s energy, mining and heavy industry sectors, identified, alongside urban development, as the high-emitting sectors in our portfolio. We continue to support renewable energy projects across Africa, where these meet our governance requirements.
Standard Bank Group continues to implement climate change adaptation and mitigation measures to decrease our direct environmental impacts.
Electricity remains the major contributor to the group’s direct carbon footprint. In 2019, we concentrated our efforts on reducing purchased electricity consumed in our South African data centres, headquarters, branches, cash centres, automated teller machines, and learning facilities, with a specific focus on air-conditioning, lighting and IT systems.
In 2018 we sought to set a science-based target (SBT) toward reducing our carbon footprint by 2040. We used a model aligned to limit global temperature rises to below 1.5°C. The result yielded a target for Standard Bank operations in South Africa to reduce direct emissions by 79% by 2040 when compared to the 2014 base year.
We’ve invested R28.6 million in increasing our energy efficiency, energy security, and environmental sustainability in South Africa. Our 2019 electricity consumption reduction target was 8GWh. We were able to slightly exceed this target, achieving a reduction of 8.3GWh by:
Carbon emissions
Scope | Measure | 2019 | 2018 | 2017 | ||||||
Scope 1 Diesel generators | SBSA | Tonnes CO2 | 1 900 | 1 153 | 1 660 | |||||
Scope 1 Fleet vehicles | SBSA | Tonnes CO2 | 1 600 | 1 969 | 2 603 | |||||
Scope 1 Natural gas | SBSA | Tonnes CO2 | 3 829 | 3 742 | 3 363 | |||||
Scope 1 Refrigerants | SBSA | Tonnes CO2 | 1 895 | 3 350 | 3 180 | |||||
Total Scope 1 | SBSA | Tonnes CO2 | 9 224 | 10 215 | 10 806 | |||||
Scope 2 (Purchased electricity) | SBSA | Tonnes CO2 | 197 771 | 202 586 | 220 408 | |||||
Total Scope 1 and 2 | SBSA | Tonnes CO2 | 206 995 | 212 801 | 231 214 | |||||
Scope 3 Flights | SBSA | Tonnes CO2 | 21 066 | 29 107 | 25 762 | |||||
Scope 3 Rental Cars | SBSA | Tonnes CO2 | 351 | 422 | 412 | |||||
Scope 3 Paper | SBSA | Tonnes CO2 | 698 | 353 | 1 378 | |||||
Scope 3 Waste disposed | SBSA | Tonnes CO2 | 770 | 802 | 669 | |||||
Total Scope 3 | SBSA | Tonnes CO2 | 22 885 | 30 684 | 28 221 | |||||
Total emissions | SBSA | Tonnes CO2 | 229 880![]() |
243 485 | 259 435 |
We have put measures in place to ensure that our strategic facilities are water efficient, have a reliable source of water when there is an interruption to supply from the municipality and water wastage is minimised.
Since 2016, we’ve installed water meters in our strategic facilities, to enable accurate monitoring of water usage and benchmarking across locations and against industry benchmarks. For facilities with high usage, we’ve set targets to reduce and prioritise water reduction efforts.
In 2018, we set a target to reduce water usage by 110 000 kl (16%) at metered sites in South Africa by 2021. In 2019, we prioritised sites displaying high-use and sites at significant water risk, for installation of back-up water storage tanks and water efficiency projects, including low-flow bathroom taps and showers. We also developed a water saving guideline to aid our building managers toward improving efficient technology, water security and water recapture and reuse. We succeeded in reducing water consumption in our facilities by 15 760 kl. We improved our CDP score for water management from C in 2018 to B- in 2019.
Water consumption
Scope | Measure | 2019 | 2018 | 2017 | ||||||
Total water consumption | SBSA | kilolitres | 627 632 | 680 559 | 666 806 | |||||
Reduction target | SBSA | % | 8 | 6 | n/a |
We effectively manage our waste and what is sent to landfill sites, by reducing, reusing and recycling. Our waste includes paper, which is mostly recycled, and hazardous and wet waste from our canteens and restaurants, which is mostly sent to landfill sites. In our efforts to reduce our waste to landfill, we installed a composter at one of our facilities in 2018, that converts wet waste to compost for use in our gardens. The trial facility reduced waste generated at the facility by more than 2 400 kg per month. The technology is being rolled out to other facilities with high wet waste quantities.
At the on-site coffee shops in our group head office facilities, we’ve introduced biodegradable and compostable paper cups and moulded fibre lids, and we’re using coffee bean grounds in the gardens. We’re working toward reducing plastic food packaging, bottles and cups, and replacing polystyrene cups.
Waste management
Scope | Total (kg) 2019 | Total (tonnes) 2019 | Total (kg) 2018 | Total (tonnes) 2018 | ||||||
General waste | SBSA | 1 288 255,90 | 1 288.26 | 1 365 234.4 | 1 365.2 | |||||
Recyclable waste | SBSA | 240 982,05 | 240.98 | 170 308.2 | 170.3 | |||||
Hazardous waste | SBSA | 1 124 | 1.12 | 1 379 | 1.3 | |||||
Waste to landfill | SBSA | 1 289 379,90 | 1 289.38 | 1 366 613.4 | 1 366.6 |