Project Details
Project
Standard Chartered Bank Sustainability Bond Framework Second-Party Opinion (2022)
Client
Standard Chartered Bank
Project Type
Sustainability Bond/Loan
Industry Group
Banks
Use of Proceeds
Renewable energy; Green buildings; Energy efficiency; Water/waste water management; Pollution prevention and control; Clean transport; Climate change adaptation; Eco-efficient products; Employment generation and Socio-economic empowerment; SME finance and microfinance; Access to essential services; Affordable housing; Affordable basic infrastructure; Food security; COVID-19 Response;
Location
U.K.
Evaluation Date
Nov 2022
Evaluation Summary
Sustainalytics is of the opinion that the Standard Chartered Bank Sustainability Bond Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, and Social Bond Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds are aligned with those recognized by the Sustainability Bond Guidelines, Green Bond Principles and Social Bond Principles. Sustainalytics considers that investments in the eligible categories will support the transition to a low-carbon economy, help support socio-economic development and advance the UN Sustainable Development Goals, specifically SDGs 2, 3, 4, 6, 7, 8, 9, 11, 12 and 13.
PROJECT EVALUATION / SELECTION
Standard Chartered Bank has a three-tiered process for the evaluation and selection of eligible projects. This includes pre-selection by the Sustainable Finance, Banking and Sustainable Bonds teams, an environmental and social risk assessment carried out by relationship managers, and final approval by the Sustainable Finance Governance Committee which is chaired by the Global Head of Sustainable Finance and comprises representatives from various departments. Sustainalytics considers the risk management systems and the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Standard Chartered Bank’s Sustainable Finance Governance Committee will be responsible for the management of proceeds based on a portfolio approach, which will be recorded and monitored regularly by Standard Chartered Bank’s Sustainable Finance team. Standard Chartered Bank intends to allocate all proceeds within 24 months of issuance. In case of unallocated proceeds, such proceeds will be temporarily invested in accordance with SCBPLC’s liquidity investment guidelines. This is in line with market practice.
REPORTING
Standard Chartered Bank intends to report on the allocation of proceeds on an annual basis. Allocation reporting will include the total amount of proceeds allocated to eligible projects and relevant categories and net proceeds unallocated. Standard Chartered Bank is also committed to reporting on relevant impact metrics. Sustainalytics views Standard Chartered Bank’s allocation and impact reporting commitments as aligned with market practice.