Project Details
Project
Standard Chartered Bank Sustainability Bond Framework Second-Party Opinion (2023)
Client
Standard Chartered Bank
Project Type
Sustainability Bond/Loan
Industry Group
Banks
Use of Proceeds
Renewable energy; Green buildings; Energy efficiency; Natural resources/land use management; Pollution prevention and control; Water/waste water management; Clean transport; Climate change adaptation; Eco-efficient products; Employment generation and Socio-economic empowerment; Access to essential services; Affordable housing; Affordable basic infrastructure; Food security; COVID-19 Response;
Location
U.K.
Evaluation Date
Oct 2023
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 2023. 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 Green Bond Principles 2021 and Social Bond Principles 2023. Sustainalytics considers that investments in the eligible categories will support the transition to a low-carbon economy, advance socioeconomic development in areas where Standard Chartered Bank Plc operates and advance the UN Sustainable Development Goals, specifically SDGs 2, 3, 4, 6, 7, 8, 9, 11, 12, 14 and 15.
PROJECT EVALUATION AND SELECTION
Standard Chartered Bank Plc’s Sustainable Finance and Banking and Sustainable Bonds teams, as well as the Sustainable Finance Governance Committee and its subcommittee, are responsible for the evaluation and selection of eligible projects. Standard Chartered Bank Plc has processes in place to identify and manage environmental and social risks associated with the eligible projects, which apply to all allocation decisions made under the Framework. Sustainalytics considers these processes to be in line with market practice.
MANAGEMENT OF PROCEEDS
Standard Chartered Bank Plc’s Sustainable Finance Governance Committee will be responsible for the management and allocation of proceeds using a portfolio approach, which will be recorded and monitored regularly by Standard Chartered Bank Plc’s Sustainable Finance team. Standard Chartered Bank Plc intends to fully allocate net proceeds within 24 months of issuance. Pending allocation, the unallocated proceeds will be temporarily invested in accordance with Standard Chartered Bank Plc’s liquidity investment guidelines. This is in line with market practice.
REPORTING
Standard Chartered Bank Plc commits to report on the allocation and impact of proceeds in its allocation report and non-financial impact report, which will be made publicly available on its website, on an annual basis until full allocation. Allocation reporting may include the total amount of proceeds allocated to eligible projects and relevant categories and the amount of unallocated net proceeds. Sustainalytics views Standard Chartered Bank Plc’s allocation and impact reporting commitments as aligned with market practice.