green banking report 2014 - standard chartered · pdf filegreen banking report 2014 2 this...

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

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

https://www.sc.com/bd/green-banking/en/






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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

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