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.
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.
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. For example:
Standard Bank’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.
Banks and corporates face a growing demand from shareholders, customers, 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.Standard Bank 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 by:
Standard Bank is a founding signatory of the UN Principles for Responsible Banking. More than 100 banks from five continents launched the Principles at the annual UN General Assembly in New York in September 2019. The Principles set the global benchmark for what it means to be a responsible bank.