Project Details
Project
Standard Chartered Group Sustainability Bond Framework Second-Party Opinion (2024)
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; Circular economy adapted products, production technologies and processes; Access to essential services; Affordable basic infrastructure; Affordable housing; Food security; Socio-economic advancement; SME finance and microfinance; Health; Education;
Location
U.K.
Evaluation Date
Dec 2024
Evaluation Summary
Evaluation Summary
Sustainalytics is of the opinion that the Standard Chartered Group 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 categories1 for the use of proceeds are aligned with those recognized by both the Green Bond Principles and Social Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 2, 3, 4, 6, 7, 8, 9, 10, 11, 12, 14 and 15.
PROJECT EVALUATION AND SELECTION
Standard Chartered Group’s Sustainable Finance Solutions and Chief Sustainability Office Finance functions, as well as the Sustainable Finance Governance Committee and its subcommittee, are responsible for the evaluation and selection of eligible projects. Standard Chartered Group 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 Group’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 the Sustainable Finance Solutions and Chief Sustainability Office Finance teams. Standard Chartered intends to fully allocate net proceeds within 24 months of issuance. Pending allocation, unallocated proceeds will be temporarily invested in accordance with Standard Chartered’s liquidity investment guidelines. This is in line with market practice.
REPORTING
Standard Chartered will report on the allocation and impact of proceeds in its allocation report and non-financial impact report, respectively, which will be made publicly available on the Group’s website on an annual basis until full allocation. Allocation reporting will include the total amount of proceeds allocated to eligible projects and relevant categories and the amount of unallocated net proceeds. Sustainalytics views Standard Chartered Group’s allocation and impact reporting commitments as aligned with market practice.