1、1Standard Chartered Bank Green and Sustainable Product Framework 2020 Version 2.0 Standard Chartered Bank Green and Sustainable Product Framework July 2020 Version 2.0 This Framework was developed by Standard Chartered Bank, with the support of Sustainalytics. who also provided a review of this Vers

2、ion 2.0 of the Framework. 2Standard Chartered Bank Green and Sustainable Product Framework 2020 Version 2.0 1. Introduction 1 https:/www.unepfi.org/wordpress/wp-content/uploads/2018/11/Rethinking-Impact-to-Finance-the-SDGs.pdf 1.1 Standard Chartered Banks Background We are Here for good As a leading

3、 international bank, we help people and businesses prosper across Asia, Africa and the Middle East. Standard Chartered is a leading international banking group. Our heritage and values are expressed in our brand promise, Here for good. We operate in 60 markets worldwide, including some of the worlds

4、 most dynamic. More than 80 per cent of our income and profits are derived from Asia, Africa and the Middle East. We are active in 37 countries that receive official development assistance, including 11 of the least developed countries. We are listed on the London and Hong Kong Stock Exchanges as we

5、ll as the Bombay and National Stock Exchanges in India. For over 150 years weve provided banking services that help people and companies to succeed, creating wealth, jobs and growth. 1.2 Standard Chartered Banks Approach to Sustainability In 2018 we released our Sustainability Philosophy, which sets

6、 out how we integrate sustainability into our organisational decision-making. Growth in our markets is leading to rapid urbanisation and creating increased need for infrastructure and technology. We believe finance plays a key role in meeting these needs. It enables individuals to build a positive f

7、uture for themselves and their families, businesses to thrive and grow, and governments to deliver economic prosperity for the wider community. Supporting sustainable and responsible growth, including delivering the UN Sustainable Development Goals (SDGs), represents a significant opportunity for us

8、. We build our knowledge and understanding of key issues and share best practice through our membership in industry and sector organisations, adoption of global commitments, and implementation of guiding frameworks. We were an initial member of the Taskforce on Climate-related Financial Disclosures

9、(TCFD) in 2017, and as at June 2020 we are members of, amongst others, UNEP Finance Initiative, Banking Environment Initiative and Climate Bonds Initiative. In addition, starting in November 2019 we assumed the role of chair of the Steering Committee of the Equator Principles Association. 1.3 Standa

10、rd Chartered Banks Approach to Sustainable Finance The world is just a decade away from its 2030 deadline to deliver on the UN Sustainable Development Goals (SDGs). Yet, according to a UN report1, just 60 per cent of the financing needed to achieve the SDGs in low and middle-income countries is bein

11、g met. In Africa, this is as low as 10 per cent. Standard Chartered has had a long commitment to Sustainable Finance. We have the financial expertise, governance frameworks, innovative thinking, technology and geographical reach to get capital from where it exists to the markets where it matters the

12、 most. We have been an early leader in sustainable finance focused on emerging markets, from mobilising more than USD5bn in blended finance for economic development, to stopping financing of new coal-fired power plants anywhere in the world. Our approach brings together three themes: First, we belie

13、ve in the critical importance of being a responsible institution through managing the potential negative impact that our activities could have through strong environmental, social and governance risk filters. Our Environmental and Social Risk Management team was first established in 1997. Second, we

14、 believe in the power finance can have to catalyse a positive impact on our communities and the environment. Our dedicated Sustainable Finance team brings together our experience and expertise in managing environmental, social and governance risk as well as spotting opportunities and structuring sol

15、utions to drive positive impact financing. Finally, we are focused on where we believe catalysing new sustainable finance matters most - regions where more capital is needed to drive sustainable growth and where their pathway to a low carbon future will have a major contribution on the worlds abilit

16、y to meet the Paris Agreements goal of keeping global warming well below 2 degrees. 3Standard Chartered Bank Green and Sustainable Product Framework 2020 Version 2.0 Environmental Power generation (Fossil Fuel Power, Nuclear Power, Renewable Energy including Hydropower); Agro-industries (Agribusines

17、s, Fisheries, Tobacco, Forestry, Palm Oil); Infrastructure Chemicals however, we are committed to maintaining a leadership position in the banking sector and so we have commissioned impact reports since 2009 to quantify our impacts in a way that can be shared with external stakeholders. These indepe

18、ndent reports aim to measure the impact of the Banks operations, in terms of economic value added and employment supported. The reports also make qualitative assessments of other ways in which Standard Chartered contributes to local communities, including through infrastructure, business practices a

19、nd community investments. In previous years we have published country reports on Indonesia, Ghana, Bangladesh and a regional report on Sub-Saharan Africa (which used data from our operations in Angola, Botswana, Cameroon, Cote dIvoire, Ghana, Kenya, Nigeria, Sierra Leone, Tanzania, The Gambia, Ugand

20、a, Zambia, and Zimbabwe). In March 2018 the Group published its report on the East African community. All of these reports can be found here. The reports illustrate the trickle-down effect of our financing in our unique footprint; moving from inputs (financing), to outputs (employment, wages, profit

21、s and taxes), and subsequently to impact (sustainable economic growth). 1.5 Intended Application The aim of this document is to outline Standard Chartered Banks Green and Sustainable Product Framework (“The Framework”) and set out underlying eligible qualifying themes and activities. We also have ma

22、pped these against their relevant SDGs. We will use the Framework to guide the development of themed Green and Sustainable Products that reference a specific Green and Sustainable use of proceeds. Specific product propositions that are intended to have a Green or Sustainable feature must then refere

23、nce this framework. Additional information of use of proceeds, selection and verification processes, assurance and reporting will be dependent on the product type and category. We may provide additional product-specific information as needed. As mentioned above, the Framework has been developed by t

24、he Bank with the support of Sustainalytics. It has been informed by the years of combined experience in sustainable finance and ESG of the Standard Chartered Bank and Sustainalytics teams. The Framework has also been informed by the following principles and standards, among others: - Green Bond Prin

25、ciples (2018), administered by the International Capital Markets Association (ICMA) - Social Bond Principles (2020), administered by ICMA - Sustainability Bond Guidelines (2018), administered by ICMA - Green Loan Principles administered by the Loan Market Association (LMA) - EU Taxonomy for sustaina

26、ble activities, including the Technical Expert Group final report on the EU Taxonomy - Climate Bonds Standard administered by the Climate Bonds Initiative (CBI) We have also noted areas where there is broad alignment between the Framework and the EU sustainable finance taxonomy. In particular we hav

27、e indicated the sub-themes from the eligibility guide below, that align to the technical screening criteria for economic activities that can make a substantial contribution to climate change mitigation or adaptation.2 1.6 External review process This Framework was developed by Standard Chartered Ban

28、k, with the support of Sustainalytics. Sustainalytics, a leading provider of ESG research and ratings for investor, financial institution and corporate clients, also provided a review of this Version 2.0 of the Framework. Standard Chartered Banks Sustainable Finance team is responsible for developin

29、g and maintaining the overall Green and Sustainability Product Framework, including ensuring that the underlying themes and activities align with market practice and expectation. The Sustainable Finance team seeks input and guidance from the Banks Sustainability team, other teams within the Bank as

30、well as relevant external stakeholders. The Sustainable Finance team work to ensure that all Bank transactions categorised as sustainable finance will adhere to the current version of this Framework and will periodically report publicly on lending and finance activities conducted under this Framewor

31、k. As information and understanding on environmental and social matters continues to evolve, Standard Chartered Bank commit to review this framework on an annual basis to evaluate if any changes need to be made to add or remove any qualifying activities. 2 This represents broad alignment by sub-them

32、e and does not represent official endorsement by either the EU or Sustainalytics 5Standard Chartered Bank Green and Sustainable Product Framework 2020 Version 2.0 Qualifying Green and Sustainable Themes and Activities Standard Chartered Bank teams will use this Impact Framework for the following pur

33、poses: Financing of eligible projects which qualify as green and/or sustainable activities based on the Framework below; Loans to, or investments in, non-publicly listed corporations where at least 90% of the companys revenues are derived from activities in the Framework below. ThemesSub ThemesEligi

34、ble ActivitiesExclusionsSDG Goal Renewable energy Generation of energy from renewable sources The generation of electricity from: Wind (onshore and offshore) Solar (including floating) Hydropower under 25MW which have either a lifecycle carbon intensity of 100gCO2/kWh or power density 5W/m2. Waste t

35、o energy Geothermal Production of biofuels from waste sources Production of biofuels from non-waste sources provided the biofuel production achieves each of the following: 1) does not take place on land with high- biodiversity; 2) does not compete with food sources; 3) achieves substantial reduction

36、 in life-cycle emissions relative to fossil fuel baseline; and 4) feedstocks are certified sustainable by a credible source Hydro projects that are large-scale (25MW) dam or reservoir-based, or run-of river hydro projects with pondage Manufacture of components for renewable energy technology Develop

37、ment and/or manufacture of renewable energy technologies, including equipment for renewable energy generation and energy storage. Examples could include wind turbines, solar panels, battery storage Construction / maintenance / expansion of associated distribution networks Grid expansion / developmen

38、t that transmits a minimum of 90% renewable energy If a grid expansion/ development project will transmit less than 90% renewable energy, then Standard Chartered Bank may use one of the following: 1. If grid is on a decarbonization trajectory, in line with the EU Taxonomy, then it can be considered

39、eligible; OR 2. The % of the project that transmits renewable energy is equal to the % of the project that can be considered eligible for financing. 3 Known credible certification schemes for crops to be used for biofuel production include the Roundtable on Sustainable Biomaterials (RSB), ISCC Plus,

40、 Bonsucro (for sugarcane) and RTRA (for soy). The Sustainable Finance Working Group may consider additional certification schemes so long as such schemes are evaluated to be equivalent, internationally-recognised certification schemes. 6Standard Chartered Bank Green and Sustainable Product Framework

41、 2020 Version 2.0 ThemesSub ThemesEligible ActivitiesExclusionsSDG Goal Energy efficiency Energy efficiency technologies Development, manufacture and/or installation of energy efficiency technologies and products such as efficient appliances, smart meters lighting, etc. Projects or technologies that

42、 improve the energy efficiency of fossil fuel production and/or distribution Commercial, public and residential buildings (existing and new construction) Construction of new buildings and/or retrofit of existing buildings to the following levels: - Buildings certified to an acceptable level under an

43、 internationally recognised green building certification scheme (see footnote);4 or - Buildings that achieve a minimum 20% improvement in energy use and/or carbon emissions compared to a mandated local or regional baseline or code. Replacement of existing heating/cooling systems in buildings with mo

44、re efficient, non-fossil fuel powered systems, or installation of new cogeneration/ tri-generation/ combined heat and power plants that generate electricity in addition to providing heating/cooling Waste heat recovery improvements Improvement activities that result in the lock in of fossil fuel tech

45、nologies Activities related to buildings directly involved in the exploration, extraction, refining and distribution of fossil fuels Public services Installation of energy-efficient lighting or equipment to increase the operational energy efficiency of utilities and/ or other public services (exclud

46、ing improvements in buildings) Improvement of heat efficiency of non-fossil-fuel powered-utilities, power plants, and other public services. Example projects could include rehabilitation of district heating systems, district cooling systems heat-loss reduction, and/or increased recovery of wasted he

47、at Retrofit of renewable energy power plants Projects to improve the energy efficiency of fossil fuel production and/ or distribution Agricultural processes, Aquaculture processes and livestock management Improving the energy efficiency of irrigation, and other agriculture and livestock management p

48、rocesses as well as of tractor or equipment efficiency through fuel-switching to low-carbon options. Improving energy efficiency of aquaculture farming and processing facilities Improving energy efficiency of forestry-related activities, including the production of forestry-related products. Energy

49、improvements in equipment and technologies that are primarily driven by fossil fuels Energy efficiency improvements for fish farms that are not Aquaculture Stewardship Council (ASC) certified or facilities that have achieved certification with a variance from the standard Energy efficiency improvements for forestry-related activities that are not certified by either the Forest Stewardship Council (FSC) certified or Programme for the Endorsement of Forest Certification (PEFC 4 EDGE (Certified), BREEAM (Very Good or hi