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Green Banking Report 2014
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Contents
Our Global approach to sustainability
3
Policy Formulation and Governance
8
Incorporation of Environmental Risk in Core Risks Management
9
In-house Environment Management
11
Online Banking & Green Marketing
13
Employee Training and Consumer Awareness
16
This document presents information about Standard Chartered Bank’s environmental activities and performances in Bangladesh for the year 2014 under the Policy Guideline for Green Banking of Bangladesh Bank.
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Our Global approach to Sustainability
Promoting sustainable economic and social development
Sustainability and our business
Using our position as a leading financial
institution, we are committed to promoting
positive social and economic
development in the countries where we
operate.
Sustainability to us is not just about using
less energy, or raising money for good
causes, although we are proud of our
efforts in both. Sustainability is
embedded in our brand promise, Here for
good, and affects every single thing we
do: the way we make decisions, the
contribution we make to local economies
and the impact that we have when we
bank the people and companies driving
investment, trade and the creation of
wealth across Asia, Africa and the Middle
East.
Our ambition is to be the world’s best
international bank. This means getting
the basics right: being financially stable,
continuously improving our governance
and seizing the opportunities presented
by our markets to provide and promote
sustainable economic growth.
Our approach continues to focus on three
key priorities: contributing to sustainable
economic growth, being a responsible
company and investing in communities.
Whether it is helping businesses to grow,
supporting people to buy their own
homes or providing clients with a full
range of products to facilitate global trade
and investment, we use our core
business of banking to fuel economic
activity in our markets. In 2014, we
provided $289 billion in lending to our
clients worldwide.
This funding enables businesses to
diversify or expand and gives individuals
the opportunity to invest and provide
stability for future generations. By doing
all of these responsibly and efficiently, we
can have a positive effect on sustainable
development in our markets, contributing
to economic growth in the long term and
enabling communities, businesses and
people to thrive.
Access to financial services
As a bank, we are committed to providing
products and services to individuals and
companies driving local, regional and
global economic development and job
creation. We support trade, infrastructure
and other key sectors of the economy
that create the foundation for long-term
sustainable growth. We actively share
our expertise with clients, governments,
regulators and communities to help
deepen financial markets and strengthen
the financial sector.
The markets where we operate continue
to undergo rapid change, creating new
opportunities for economic growth. We
are helping countries realize these
opportunities by providing dedicated
financial services to the local
entrepreneurs and businesses that are
leading innovation and employment
generation.
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We allocate capital to key sectors in the
economy including agriculture, trade and
infrastructure. We retained our position
as a leading trade bank worldwide. We
supported the development of the China-
UK trade corridor by becoming one of the
first market-makers for direct trading
between the Renminbi (RMB) and the
GBP on the interbank foreign exchange
market in the China Foreign Exchange
Trade System.
Many of our markets are hampered by
unreliable infrastructure, which can
impede economic growth. Across our
markets, we support the renewable
energy and clean technology sector. We
share our expertise to help countries
raise funding, deepen capital markets
and attract investment.
In 2014, we continued our role as
sovereign ratings advisor to 10
governments, supporting their economic
development goals through enhanced
credit positioning, investor relations and
capital raising strategies. We provide
financial products and tools to help our
clients reach individuals who lack access
to banking services.
In 2014, we rolled out capabilities to
transact with mobile wallets in four
markets. This technology allows clients
such as nongovernment organizations to
help pay their staff and other
beneficiaries through mobile phones in
areas with limited access to banking
facilities.
Reducing business impact on
Environment
We seek to minimize the impact of our
operations on the environment. In 2014,
we reduced our energy use intensity by 4
per cent, our water use intensity by 3 per
cent and our office paper use by 6 per
cent per full-time employee. We remain
broadly on track to meet our respective
committed targets.
To manage energy and water use across
our properties, in 2014 we collaborated
with landlords to make sure that 34 per
cent of our new and renewed leases are
green. In 2015, we will work with our new
property management partner, Johnson
Controls Inc, to accelerate energy and
water savings across our property
footprint.
Millennium Development Goals
(MDGs) – Our contribution
Over the past 15 years, we have worked
to ensure that our community investment
priorities support the MDGs. As the
Sustainable Development Goals (SDGs)
are finalized in 2015, we will continue to
collaborate with governments, other
private sector companies and our
community partners to advance the
SDGs. Goal 7 of MDG is to ensure
environmental sustainability with the
target of integrating principles of
sustainable development into country
policies and reverse the loss of
environmental resources. As part of our
commitment to achieving this target; we
focus on our environmental strategy to i)
reduce our operational impacts and ii)
mitigate environmental and social risks
arising from client activities in lending.
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75% of our properties report on annual data
10% of our properties receive green certification
3% of our energy sourced by green energy
218 video conferencing rooms are available to
over 80% of our staff across 36 countries
Annual energy use per square meter (kwh/m2)
355 324 230
0
100
200
300
400
2008 2014 2019 (Target)
Tropical climate, 80%
398 312 320
0
100
200
300
400
500
2008 2014 2019 (target)
Temperate Climate, 20%
A reduction in office paper usage from 2012 is
equivalent to saving 8,842 trees.
57% of retail customers are receiving e-
statement worldwide.
13110 staffs volunteered in Green Initiatives
9,176 tonnes of CO2 avoided from air travel
which is equivalent to 12,074 four hour round
trip flights
1.8
1
0.5 0
0.5
1
1.5
2
2008 2014 2019 (target)
23.4
19.3
10
0
5
10
15
20
25
2012 2014 2020 (Target)
Our annual water usage saved from 2008 can fill
502 Olympic size pools.
20592 pieces of obsolete IT equipment recycled
since 2013
Our annual energy usage saved from 2008 is
enough to power 20909 homes
$70.9m annual energy spend.
In 2014 we reduced:
Energy intensity use by 3 per cent in tropical
locations and 7 per cent in temperate locations
Water intensity use by 9 per cent
Office paper use by 5 per cent
Annual water use per square metre (KL/m2/year)
Annual office paper use per staff
(kg/FTE/year)
Global Eco efficiency Achievements in 2014
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Our reporting- tropical and temperate
Tropical climate refers to properties where we only have ‘cooling’ system whilst
temperate climate properties have ‘cooling and heating’ system. Share of tropical and
temperate locations within our properties is 80% and 20% respectively.
Green certification
Green certifications, such as LEED rating, provides independent, third party
verification that a building was designed and built using strategies aimed at achieving
high performance in key areas of human and environmental health.
EUI- Energy Use Intensity
EUI is a ratio between total energy consumed (in kilowatt hours) divided by the net
internal area of our occupied footprint (in metres squared), 2008 is base year for 2019
targeting.
Green Energy
We are looking to procure additional sources of renewable energy. Solar panels are
installed in Singapore – Changi Business Park, India – Scope building, China –
Tianjin Scope headquarter, Pakistan – Allama Iqbal Town branch and Korea –
heritage Jeil building.
WUI – Water Use Intensity
WUI is a ratio between total water consumed (in kilolitres), divided by the net internal
area of our occupied footprint (in metres squared), 2008 is base year for 2019 target
setting.
Office paper use
Office paper use is a measurement of paper printed within our offices tracked in
kilograms per staff. Use of 19.3 kg per staff is equivalent of printing 4,470 sheets of
paper annually. 2012 is a base year for 2020 target setting.
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Proving our Global Sustainability
We’ve been selected for the Dow Jones Sustainability Index (DJSI) for the fifth
consecutive year.
A successful milestone
The DJSI is the most highly regarded sustainability index, which tracks the
financial performance of leading sustainability-driven companies based on
economic, social and environmental factors.
Several key sustainable investors use this index as a performance benchmark for
sustainable and ethical investment funds.
Only the top 10 per cent of sustainable leaders in our industry make the DJSI.
Other banks on this year’s list include Westpac, ANZ, Barclays and Citigroup.
Making the cut for a fifth year builds our reputation as it shows that we’re a
leading bank in the sustainability field and that we’re committed to being Here for
good in the markets in which we operate.
What we’re marked on
We were assessed on our long-term economic, environmental and social
performance. This includes corporate governance, Code of Conduct, client
relationship management, environmental business risks, tax and stakeholder
engagement.
This year we scored full marks for our financial inclusion programmes. This
includes:
Providing USD20.6 billion of financing to small and medium-sized enterprises
Lending USD271 million to microfinance institutions, impacting more than 1.9 million people
Training 40,000 girls on financial education through our global Goal programme.
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Standard Chartered takes a long term
view of the environmental consequences
of its actions, either directly from our
operations or indirectly through our
relationship with business partners. We
ensure that we build a sustainable
business that brings benefit to our
shareholders, society, the environment
and local economies.
Globally the management has indicated it
wants to ensure the brand is not
undermined through inappropriate
financing of environmentally vulnerable
projects, inefficient use of scarce natural
resource, or environmental volunteering
with poorly considered outcomes. The
bank also recognizes that the Group has
an important role to play in ensuring that
employee interest in green issues is
harnessed through communication of the
Group’s position, and role modeling
responsible behavior with respect to the
environment. In this context, we position
ourselves to remain “in the leading pack”
in relation to our environmental
commitments and place more emphasis
on optimal utilization of resources rather
than climate change issues to underpin
our approach.
In Standard Chartered Bangladesh, Risk
Management Committee has been
reviewing green banking and
environment related initiatives. Green
Banking Unit has been formed to
coordinate the activities as per Green
banking regulations as well as reporting
the same to Bangladesh Bank.
Policy Formulation and Governance
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To achieve long-term sustainable
development, we must responsibly
manage environmental and social risks.
We have well-established 20 Position
Statements that set out the standards we
expect of clients and ourselves, including
application of the Equator Principles.
In 2014, we revised our environmental
and social risk assessment procedures
and underlying templates. These
procedures assess alignment with our
Position Statements and are completed
as part of our credit approval process for
all clients and certain transactions.
The bank’s sustainable finance approach
enables it to identify environmental risks
and propose mitigating solutions at an
early stage.
Environmental risk means the risk of
causing pollution or destruction of the
natural environment (land, water, air.
natural habitats, animals and plant
species), through either accidental or
deliberate actions.
We recognize that our primary impact on
the natural environment is through our
relationship with our customers and the
lending decisions we take. Therefore:
• All our lending proposals will include
consideration of environmental and social
issues where appropriate
• All lending proposals will take account
of internationally acceptable
environmental and social standards or
local laws and regulations where these
are more stringent
• The risks associated with both
environmental and social issues will be
properly recognized, evaluated and
where appropriate mitigated
• The Businesses will ensure that
appropriate procedures are designed to
meet these policy requirements e.g.
Project and Export Finance proposals will
be assessed in accordance with the
Equator Principles.
As per the above principles, we have
implemented Environmental Due
Diligence from June 2011 and have
applied the same as part of our risk
assessment. Since June 2011, we have
applied the Environment Risk Ratings to
100% of our projects that are applicable
for such due diligence.
Incorporation of Environmental Risk in Core Risks Management
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Environment Risk Management
highlights: 2013 2014
Number of Projects Rated 1420 1144
Number of Rated Project Financed 1238 890
Number of Projects with ETP 149 75
Indirect Green Finance (in Million BDT) 34,223 39,882
Direct Green Finance (in Million BDT) 683 628
Our Position Statements: 20 Position Statements guide our approach to
providing financial services to clients who operate in sensitive business sectors
or face specific issues.
Agribusiness Fossil Fuelled
Power Generation Ship breaking
Dams &
Hydropower
Chemicals &
Manufacturing Infrastructure Transport Forestry
Climate Change Nuclear Power Bio fuel Gambling
Fisheries Palm Oil Children’s Rights Mining &
Metals
Oil & Gas Renewable Energy Tobacco Water
These position statements can be downloaded from following link:
https://www.sc.com/en/sustainability/performance-and-policies/standards-and-policies.html
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In 2009, we had made a global
commitment to significantly reduce
energy and water use by 2019. Our
design standards and operational criteria
are starting to transform the built
environment. We have made solid
progress, but the pace has slowed as we
realized quick wins.
The economic imperative to save energy
is growing as energy prices continue to
rise more sharply. The impact is
significant with every one per cent
improvement in Group Energy Usage
Intensity (“EUI”) equating to USD
600,000 in running costs globally.
In line with Global strategy; various
continuous processes have been there to
minimize the banks direct operational
impact to environment in Bangladesh:
To reduce Paper usage and help save
Trees:
Green Printing Guideline is being circulated among staffs through internal communication on regular basis
Soft archival of customer documents for electronic access and retrieval is enabling us to reduce consumption of paper
Majority of internal memos, process notes and records are in electronic form
Internal communications are done through emails. All staffs have dedicated email IDs for office use.
Customer communications are being done through emails, SMS or ATM displays.
To reduce energy & water consumption:
Green cars introduced as part of car pool to save energy and reduce carbon emissions.
Energy saving T5 lights introduced in all office buildings in Dhaka (Head-office and Monem Business District).
Renewable energy (Solar Power) introduced for 2 ATM machines as pilot.
Motion sensors and Day-Light sensors have been installed in our new premises in Monem Business District to optimize power consumption in office lighting.
Energy usage for central air-conditioning has been reduced by the installation of Variable Frequency Devices (VFD).
Video conferencing with overseas offices and between offices in Dhaka and Chittagong has reduced the need for physical travel with associated carbon emission.
Self-closing water taps installed in Dhaka offices (Country HO and Monem Business District) which is saving water.
Hand-wash towels replaced with Dyson Air-blade equipments which are saving both water and energy usage in our offices in Dhaka.
In-house Environment Management
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In house Environment Management Initiatives
A total of BDT 12.13 million had been spent for implementing in-house environment
risk management initiatives for 2014.
Moreover, we have moved to a new Green office building, Monem Business District in
Kawranbazar, Dhaka from previous six smaller offices around Dhaka city. While
implementing this project, Green Banking Policy of Bangladesh Bank has been
considered. As a result, in-house green initiatives worth BDT 7.63 million have been
spent to achieve modern environment friendly office facilities. The table below shows
a breakdown of the in-house energy & water saving initiatives undertaken in 2014:
Figures in Million BDT
SNO Initiatives Amount Spent
Description
1 Dyson Air blade Installation
2.50 For increase energy efficiency of central air-conditioning
2 Digital Display Installation
2.00 Installation of digital display replacing use of paper
3 LED Light installation (in new building)
6.90 Installation of 7W LED tubes instead of conventional tubes (40W).
4 Day light +Occupancy sensor (new building)
0.73 For automatically switching off lights depending on day light or occupancy
Total 12.13
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As the pioneering bank in Bangladesh for
introducing various technological
developments in customer services to
minimize carbon emission; we always
focus on delivering our customers
through alternate channels. Some of our
Green Marketing and Products initiatives
are:
1. Online Banking interface for
customers: Our Customers can sign up
instantly to Online Banking using their
Debit or Credit card. No more visiting the
branch and hassle. Online Banking
facility allows the customer to bank from
anywhere, anytime with total security and
confidentiality. This service is absolutely
free for customers. Following banking
services can be availed through Online
Banking:
Transfer fund from One account to another account within Standard Chartered or to any BEFTN member bank account (daily transfer limit BDT 500K)
Pay bills for Standard Chartered credit cards, mobile phones (Grameenphone, Banglalink, Airtel and Citycell), internet service providers (Qubee and Banglalion) and insurance premium (MetLife Alico and Green Delta Insurance).
Request chequebook or account statement
Place instruction for a regular transfer of fund from account at desired frequency
Institutional clients having Online Banking (Straight2Bank) can transfer funds round the clock within bank accounts.
Pay British Council exams fees. This enables our customers to pay for the different exams, without having to come to the Standard Chartered Bank branches.
2. Enhanced ATM functionality: Standard
Chartered accountholders can now
transfer fund up to BDT 500K per day to
any Standard Chartered account using
Standard Chartered ATM.
3. Enrolment to SMS banking and e-
Statement mandatory for all new
customers: E-Statement and SMS
Banking has been made mandatory for
all NTB (New to the bank) customers
effective from 1 May 2013.
4. Paperless PIN for credit cards:
Personal Identification Number (PIN)
delivery for cards has historically been a
costly and inconvenient paper-based
process. Customers wait for delivery of
paper PIN that can be delayed due to
varieties of reasons. To address the
issue, we have developed a new PIN
setting via phone banking solution i.e.
customer selects their own PIN upfront
via the phone which is convenient,
instantaneous, secure and paperless.
Customers in Bangladesh now enjoy
following benefits:
Speed: Customers can change PIN without visiting ATM almost instantaneously. The 2 to 3 days wait for paper PIN is eliminated.
Personalization: The PIN is set by the customers post verification as per bank standards and is done in a secure manner.
Online Banking & Green Marketing
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6. More than 350,000 people every week:
As opposed to tradition paper-based
advertisement mediums we are
increasingly focusing on online platforms
like Facebook, Websites etc. to reach out
customers with our offers and
promotions. We now have, by far, the
biggest community on Facebook among
all Financial Institutes in the country,
through which we are reaching out to
more than 300,000 people every week
electronically without any use of paper
mediums. All our offers, promotions,
news are also available on websites
which is visited by numerous people
everyday reducing the dependency from
paper-based notice circulation. All these
Digital initiatives are reducing our Carbon
footprints from day-to-day communication
activities.
7. Implementation of National Payment
Switch of Bangladesh (NPSB): We are
connected to National Payment Switch
which enables our debit / credit card
customers to withdraw money from any
other banks ATM’s within Bangladesh for
a fee of only 15 taka.
8. Implementation of Direct Debit
Instruction for Corporate & Institutional
Clients using Straight2Bank facility: Direct
Debit Instruction allows clients to initiate
their receivables using Staright2Bank,
while allowing them to maintain visibility
and control. This provides customers
access to over 8,500 partner bank
branches across the country using the
countries EFT network along with the
Standard Chartered accounts to collect
their receivables. We also have the
capability to offer Guaranteed Credits to
clients through this offering. This is a
unique capability that has been
developed specifically for Bangladesh.
Our solutions:
Direct Debit Instruction – Originate electronic book transfer pulls from Standard Chartered accounts & EFT pulls from other banks through Straight2Bank.
Direct Debit Mandate Management – Use system based mandate management to ensure and control debit instructions meaning no incorrect or unauthorized pulls.
Key benefits –
Enhanced Cash Flows: Remove delays in fund availability
Improved Collection Rates: Clients can take control of their collections
Lower Costs: No charge is applicable Reduced Processing Overhead:
Automation ensures reduced TAT Easy accessibility and visibility via
Straight2Bank: Get updates as and when required.
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Online Banking Journey
2012 2013 2014
% of total customers using Internet
Banking 52% 63% 66%
% of total customers using SMS
banking 77% 73% 95%
% of total accounts statements
delivered through email 47% 61% 72%
Paper saving due to e-Statement
(in million sheets of paper) 1.4 2.0 2.4
Digital Champion Initiative
The Digital Champion Campaign is intended to promote usage of all Digital
Channels e.g. Online Banking, SMS Banking (Pull Service), ATM & CDM (except
Cash Withdrawal) among customers, with the top users to be declared Digital
Champions of the bank and win some exciting electronics gadgets as prizes such
as Tablet PC and Smart Phones.
Eligibility Criteria:
The customer must use all the digital channels (online banking, SMS banking – pull service, ATM & CDM) at least once within the campaign period to be eligible.
Minimum value for financial transactions using digital channels must be BDT 500. Any transactions below BDT 500 will not be considered.
Cash withdrawal from ATM will not be considered as eligible transaction. The customer must be enrolled to all digital channels (online banking, SMS
banking, e-Statement).
Outcome Facts:
Total 13,789 customers participated in the campaign. Total 86,646 transactions were done by participants through i-banking, ATM
and Bills-pay. Total 3,584 SMS pull request has been done by participants.
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Employee awareness and training on
environmental and social risk and the
relevant issues are continuous process
as part of the bank's Employee Training
Program.
Awareness development among
consumers and clients are continuous job
of the bank’s employees across all
functions.
‘Health, Safety and Environment’ e-
learning training is mandatory for all
newly joined staffs in Bangladesh. For
our Corporate Relationship Managers to
have in-depth understanding on Green
Finance, we have introduced
‘Sustainable Finance Training’ since
2012. In 2014, a total of 620 staffs have
attended these trainings which was 280
in 2013.
Employee Training and Consumer Awareness