• Introduction
    • OVERVIEW
    • THE STANDARD BANK GROUP
    • OUR REPORTING SUITE
    • OUR SEE JOURNEY
    • ASSURANCE STATEMENT
     
     
     
     
     
  • SEE impact areas
    • OVERVIEW
    • 1.
      FINANCIAL INCLUSION
    • 2.
      JOB CREATION AND ENTERPRISE GROWTH
    • 3.
      INFRASTRUCTURE
    • 4.
      AFRICA TRADE AND INVESTMENT
    • 5.
      Climate change and sustainable finance
    • 6.
      EDUCATION
    • 7.
      HEALTH
     
  • ESG
    • OVERVIEW
    • OUR REPORTING SUITE
    • MESSAGE FROM SIM TSHABALALA
    • ESG GOVERNANCE
    • MATERIAL ISSUES DURING THE REPORTING PERIOD
    • ENGAGING OUR STAKEHOLDERS
    • HOW WE DO BUSINESS
    • MANAGING OUR ENVIRONMENTAL AND SOCIAL RISKS
    • SUSTAINABLE FINANCE
    • OUR PEOPLE
    • CORPORATE SOCIAL INVESTMENT
    • ESG METRICS AND POLICIES
     
     
     
     
     
     
     
     
     
     
     
     
  • Transformation
    • OVERVIEW
    • INTRODUCTION
    • A MESSAGE FROM LUNGISA FUZILE
    • THE ROLE OF A BANK IN GROWING THE ECONOMY
    • STANDARD BANK’S BEE SCORECARD 2019
    • WHERE TO FIND MORE INFORMATION
    • B-BBEE CERTIFICATE
     
     
     
     
     
     
     
  • Downloads
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Sustainable finance

There are increasing opportunities to deliver sustainable and impactful investment expertise to our clients and stakeholders across a broad range of growth themes.

As a first step in that effort, we have established a sustainable finance business unit, the first of its kind in Africa. The unit is responsible for partnering with our businesses to better serve our clients, drive innovation and capture emerging opportunities as sustainable growth becomes increasingly important for investors, institutions and companies globally.

The unit concluded a number of deals in 2019, including:
  • We provided a sustainability-linked funding solution to Curro schools – the first sustainable finance deal in the African market. Curro is the leading for-profit independent school provider in Southern Africa. The sustainability-linked loan will enable the building of additional schools and development of existing campuses. The R500 million five-year loan is linked to achieving pre-agreed environmental, social impact and governance targets and performance, which will be measured by an external ESG rating agency. Target areas include diversity programmes, data privacy and reduction in CO2 emissions.
  • We played a key role in arranging the first ever green bond in East Africa. Nairobi-based property developer Acorn Group has issued a bond to raise KES4.3 billion (R611 million) in project finance over five years for environmentally-friendly student accommodation in the city. Standard Bank Group, via Stanbic Bank Kenya Limited and SBG Securities Limited, acted as lead arranger and placing agent for the bond. The bond has been certified as green by the Climate Bonds Initiative as it meets international green building standards, which are designed to achieve savings on energy usage and water consumption through the building materials used. The finance that is raised via the bond will be used to fund six purpose-built student accommodation properties in Nairobi with a capacity of over 5 000 beds.

Curro Holdings
October 2019

R500 million

Standard Bank role: sole arranger and lender

ESG-linked

First ESG-linked facility in Africa

Acorn Project (Two) Limited Liability Partnership
October 2019

KES4.26 billion – Fixed rate series of I green bonds

Standard Bank role: Lead arranger and placing agent

Impact: Construction of student housing. Edgecertified green buildings.

First green bond in east Africa

Federal Republic of Nigeria
June 2019

NGN15 billion – 14.5% Series II green bonds

Standard Bank role: Joint financial advisor and book runner via Stanbic IBTC Capital

Impact:Green projects aimed at addressing climate change

Sovereign green bond

NSP – SPV PowerCorp Plc February 2019

NGN8.5 billion – 15.6% Series of I green bonds

Standard Bank Role: oint issuing house and receiving bank

Impact:Re-finance existing debt, acquired 30MW Gurara hydropower plant, rehabilitation of overhead cranes and systems/control upgrade

First green infrastructure bond issued by a corporate in Nigeria.

Sustainable bond framework


Standard Bank Group’s Sustainable Bond Framework allows us to issue sustainable, green and social bonds that support Standard Bank’s lending to green projects aimed at mitigating climate change, and social projects reducing economic and social inequality. The framework will be reviewed by an independent party, with experience and track record in issuing Second Party opinions. This opinion will be made available to investors on the group’s investor relations website.

Standard Bank will allocate the net proceeds of the sustainability bonds issued under this framework to an eligible loan/asset portfolio of new and/or existing loans/assets within categories aligned to our SEE impact areas. The eligible loans/assets will be funded in whole or in part by an allocation of the bond proceeds.

Final approval of selection and evaluation of projects eligible for green, social or sustainable bonds lies with the group asset and liability committee.

The eligibility and qualification criteria or range of supportive products include projects related to:
Renewable energy
Pollution prevention and control
Climate change adaptation
Energy efficiency
Green buildings
Clean transportation
Environmentally sustainable management of living natural resources and land use
Terrestrial and aquatic biodiversity conservation
Sustainable water and wastewater management
Electricity distribution networks
Affordable housing
Health and education infrastructure
Improved access to funding for SMEs and micro-businesses
Projects that aim to improve inclusion of women and minority groups in education systems, and projects that aim to provide women, womenowned enterprises and minority groups with access to financial services, including affordable credit.

Sustainable trade finance


Banks and corporates face a growing demand from shareholders, clients, investors and other stakeholders, for their trade finance transactions to actively support the production of goods or services in a manner that minimises adverse environmental and social impacts and promotes environmental and social benefits.

The group has been working with the International Chamber of Commerce (ICC) Banking Commission, co-leading a working group tasked with equipping banks to encourage sustainable finance trade practices.

Standard Bank’s commitment to the ICC Banking Commission’s sustainable trade finance process dovetails with the aims of the African Union’s Agenda 2063 which highlights the need for trade and investment infrastructure to connect Africa. As an African bank clear in its purpose to drive Africa’s growth, partnering with the ICC to develop standards and rules in trade, in general, and universally adopted global best practice in sustainable trade finance specifically, supports our purpose to facilitate trade and investment flows between African countries, and between African countries and global markets in a way that promotes sustainable and inclusive economic growth.

Investment in renewable energy


Standard Bank Group supports the expansion of affordable renewable energy solutions across Africa. We work with governments, renewable energy companies and development finance institutions to facilitate largescale infrastructural development.

Over the past several years we have significantly increased the proportion of our energy loan book committed to green energy and decreased the proportion of finance committed to fossil fuels.

Since 2012, we have financed the construction of new power projects to the value of USD2.77 billion in Africa. 86% of this funding was for renewable energy. Lending to fossil fuel power projects represented 14% of our investments (12% natural gas and 2% heavy fuel oil). We have not financed any new coal-fired power stations since 2009.

Cumulative green vs Brown underwrite value Of energy investments From 2012 – 2019
windmill-011 036 MW1 953 MWof underwrite valueof underwrite valueGREEN 86%BROWN 14%USD2.77 billionTOTAL

GREEN – Annual cumulative underwrite from 2012 – 2019 of project finance power generation transactions directed toward green energy. This includes clean, non-polluting and renewable energy sources that are naturally replenished over time, e.g. solar or wind.

BROWN – Annual cumulative underwrite from 2012 – 2019 of project finance power generation transactions directed toward brown energy, derived from conventional fossil fuel-based energy sources that release pollutants during processing and are finite/not replenished over time, e.g. coal, oil or natural gas.

Estimated jobs created from standard bank’s Investments in south african renewable Energy projects (2012 – 2019)
                 
    PV     CSP     Wind     Total  
Construction (direct)   6 264     2 719     4 116     13 099  
Construction (supplier)   3 530     994     2 900     7 424  
Construction total   9 794     3713     7 016     20 523  
Operations (direct)   673     117     715     1 505  
Operations (supplier)   113     13     45     171  
Operations total   786     130     760     1 676  
Total jobs   10 580     3 842     7 776     22 199  

References
Macroeconomic assumptions from Department of Energy Integrated Energy Plan Average capacity factors from statistics of utility-scale solar PV, wind and CSP in South Africa in 2017 by CSIR Energy Centre

Estimated households equivalent powered From standard bank's investments
In south african renewable energy projects from 2012 – 2019
Photovoltaics (PV)
 
399 091
Concentrated Solar Power (CSP)
71 147
Wind
 
514 661
Total households
 
984 900

Average household electricity consumption sourced from Exon Consulting – How much electricity does my home use, August 2016

Examples of projects financed in 2019 and see impacts
New Vaal Desalination
Project description: Expansion of an existing mine water reverse osmosis treatment plant by 8 million litres per day, to 10.5 million litres per day, and a new salt recovery unit, at a colliery near Vereeniging, South Africa
Social impacts: Reduced risk of effluent impacts on downstream users
Environmental impacts: Environmental impacts: Better management of effluent, recovery and reuse of polluted water, recovery of salts for easier disposal and potential resale
Economic impacts: Sustained mining operations, Capex spend locally
Zandvliet Water Treatment
Project description: Installation of an ultrafiltration and reverse osmosis unit at the Zandvliet sewage works to improve water quality of 7.6 million litres per day discharge to river and recover 10 million litres per day of potable water for reuse in the City of Cape Town
Social impacts: Improved water quality for downstream users, increase in potable water supply
Environmental impacts: Improved water quality in the river downstream of the sewage works, recovery and reuse of sewage effluent
Economic impacts: Increased capacity of municipal infrastructure in the region

Working with businesses and households to implement smallscale green energy solutions


We recognise our obligation to respond strategically to the risks which global environmental and social pressures have on our ability to create sustainable value for our stakeholders.

We work with our clients to adopt greener solutions for their homes and businesses.