Green Fund

Product Framework 2022

Version 3.0

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Standard Chartered Bank Green Fund Product Framework 2022

[[Introduction]]

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Standard
Standard Chartered GreenGreen Fund Product Framework 2022
Chartered Bank
We are Here for good – as a
leading international bank,
we help people and businesses
prosper across all continents.
Standard Chartered is a leading international banking
group. Our heritage and values are expressed in our
brand promise, Here for good. For over 150 years
we’ve provided banking services that help people and
companies to succeed, creating wealth, jobs and
growth. We operate in 59 markets worldwide,
including some of the world’s most dynamic.
We are active in 37 markets that receive official
development assistance, including 11 of the least
developed markets. We are listed on the London and
Hong Kong Stock Exchanges as well as the Bombay
and National Stock Exchanges in India.
1.1 Our approach to sustainability
Our approach to sustainability is framed around a
Sustainability Philosophy which sets out how we
integrate sustainability into our organisational
decision-making, a set of Position Statements which
outline our environmental and social standards, and
a list of Prohibited Activities that the Group will not
finance.
Our Green Lending
Our green projects helped us to avoid 1.39 million
tonnes of CO2 emissions in the past year. This is
equivalent to:
301, 500 commercial 3.13m passenger
cars removed from economy class seats
the road5 from London to
Singapore6
Our approach is underpinned by our Sustainability
Aspirations which provide tangible targets for
sustainable
business outcomes aligned to the United Nations
Sustainable Development Goals (SDGs).
Our markets represent unique challenges, with rapid
urbanisation, heightened vulnerability from climate
change, and significant social and economic disruption
brought by the COVID-19 pandemic.
We believe finance plays a role in addressing these
challenges. It also plays a role in taking advantage of
the opportunities; to leapfrog to low carbon
technology and accelerate inclusion through digital
solutions. It enables individuals to build a positive
future for themselves and their families, businesses to
thrive and grow, and governments to deliver economic
prosperity for the wider community.
We build our knowledge and understanding of
key issues and share best practice through our
participation in a number of industry platforms and
working Groups, supporting our progress and that of
the industry as we demonstrate our contribution to
achieving the UN SDGs. As at October 2021, we are
members and Chair of the Net Zero Banking Alliance
and the Banking Environment Initiative, and the Chair
of the Steering Committee of the Equator Principles
Association. We are also members of the UNEP
Finance Initiative and the Climate Bonds Initiative, as
well as one of the initial adopters of the Taskforce on
Climate-Related Financial Disclosures (TCFD).
To do this we have financed over USD5.4 billion
of renewable energy projects, clean transport projects,
and green buildings with eligible green building
certifications. This is in line with the challenge we
set ourselves, and the wider private sector, in our
Opportunity 2030 report where we identified a USD 10
trillion gap in financing for SDGs. We have financed two
water projects in Malaysia and Africa.
Contributed to the production of of clean water
2,456,000m3
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Standard Chartered Bank Green Fund Product Framework 2022
COVID-19 Response
Our social assets also include the lending we have
undertaken through our COVID-19 not-for-profit
financing facility:
Our response to COVID-19
In 2020, we announced that we would commit USD
1 billion of not-for-profit financing for companies
that provide goods and services to help in the fight
against the pandemic, and those planning the
switch into making products that are in high
demand to fight the global pandemic. To date, we
have approved over USD 900m of not-for-profit
financing of which over USD 800m has already
been disbursed. This has helped businesses across
our markets manufacture and distribute emergency
ventilators, face masks, protective equipment and
sanitizers, and governments to finance the
purchase of WHO-approved COVID-19 vaccines.
Providing COVID-19 tests in Indonesia
In Indonesia, we helped fund Halodoc, a health
technology platform that provides rapid COVID-19
tests to high-risk communities. We also donated
money to provide sleeping pods to healthcare
workers who required much needed rest between
their shifts.
Making masks in Vietnam
In August 2020, we lent Vietnamese company
Garco 10, USD 4.3 million to help in the production
of personal protective equipment. The financing
helped Garco 10 add cloth masks to its product lines
to help meet rising demand in the country.
Supporting vaccine rollout in
Malaysia
We supported a key pharmaceutical player in
Malaysia to meet their vaccine orders from the
Ministry of Health. Our USD 36m of not-for-profit,
short-term financing facility supported the import
and distribution of up to 3m COVID-19 vaccines.
Distributing tests and vaccinations,
and enabling emergency
transportation
Through an USD 11m not-for-profit loan, we have
supported Fullerton Healthcare Corporation Limited,
an affordable and accessible healthcare provider
in Asia Pacific, to deliver 356,000 tests and 100,000
doses of COVID-19 vaccines, deploy ambulances for
over 10,000 trips to hospital for suspected cases, and
operationalise 6 vaccination centres with a capacity
of 2,000 patients per centre per day.
AfreximBank
We provided USD 200m of not-for-profit funding
towards Afreximbank’s structured framework to
help finance the acquisition of COVID-19 vaccines
for African nations. The collaboration between
Standard Chartered and Afreximbank will help
ensure that 55 countries across Africa have access
to COVID-19 vaccines.
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Standard Chartered Bank Green Fund Product Framework 2022

A detailed breakdown of our impact

Total Portfolio USD 9.25bn

Green USD 5,490,009,465.86

Social USD 3,556,423,241.12

Sustainable USD 165,022,409.59

Total USD 9,211,455,116

Emerging, frontier9 and least, lower and lower middle-income USD 6,452,596,422.98 70%
OECD DAC countries10

Rest of the World USD 2,758,858,693.58 30%

Total USD 9,211,455,116

Asia, Africa and the Middle East USD 7,295,378,505.99 84%

Rest of the World USD 1,451,012,827 16%

Total USD 9,211,455,116

16%
7%
30%

70%
84%

Emerging, frontier Rest of the World Asia, Africa and the Rest of the World
and least, lower and Middle East
lower middle-income
OEDC DAC countries

Through our COVID-19 USD 1 billion facility we have also supported the
acceleration of the testing and vaccination programmes in

• Philippines • Malaysia • Hong Kong • Mainland

• Singapore • Australia China
• Indonesia
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Standard Chartered Bank Green Fund Product Framework 2022

[[Qualifying Green
and Sustainable
Themes and Activities]]

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Standard Chartered Bank Green Fund Product Framework 2022

Standard Chartered Bank teams will use this Impact Framework for the following purposes:

• 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 70% of the company’s
revenues are derived from activities in the Framework below.

Themes Sub Themes Eligible Activities Exclusions SDG Goal

Renewable Generation of The generation of electricity from: • Hydro projects that

energy energy from • Wind (onshore and offshore) are large-scale
renewable (>25MW) dam or
sources • Solar (including floating) reservoir-based,
• Hydropower6<25 MW, or run-of river
or >25MW where there is either hydro projects with
a lifecycle carbon intensity of pondage
≤100gCO2/kWh or power density • Waste to energy
≥5W/m2 where removal of
• Waste to energy where majority recyclables prior to
of recyclables are segregated incineration cannot
before incineration be ensured9
• Geothermal with direct emissions • The production of
below 100gCO2/kWh hydrogen through
steam reforming
• Production of biofuels from waste
processes using
sources (forestry and agriculture
natural gas
residues, palm kernels only where
(known as “brown
these are RSPO certified)
hydrogen”) or using
• Production of biofuels (including oil or coal (“grey/
sustainable aviation fuels) from black hydrogen”)
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
(at least 50% reduction for
existing facility and at least 60%
for new installations) in life-cycle
emissions relative to fossil fuel
baseline; and, 4) feedstocks are
certified sustainable by a credible
source7
• Green hydrogen projects8

6
For all new hydropower project an environmental and social impact assessment by a credible body is required per project. There should be
no significant risk or expected negative impact identified.
7
Known credible certification schemes for crops to be used for biofuel production include the Roundtable on Sustainable Biomaterials
(RSB), ISCC Plus, Bonsucro (for sugarcane) and RTRS (for soy). The Sustainable Finance Governance Committee may consider additional
certification schemes so long as such schemes are evaluated to be equivalent, internationally-recognised certification schemes.
8
Production by electrolysis powered by renewable energy.
9
Waste to energy where removal of recyclables prior to incineration cannot be ensured will be eligible as transition activities where the
carbon intensity of the waste to energy process matches, or is better than, the carbon intensity of the relevant national grid.
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Standard Chartered Bank Green Fund Product Framework 2022

Themes Sub Themes Eligible Activities Exclusions SDG Goal

Manufacture • Development and/or

of components manufacture of renewable
for renewable energy technologies, including
energy equipment for renewable energy
technology generation and energy storage.
Examples could include wind
turbines, solar panels, battery
storage

Construction / • Grid expansion / development

maintenance that transmits a minimum of 90%
/ expansion renewable energy
of associated If a grid expansion/ development
distribution project will transmit less than 90%
networks renewable energy, then Standard
Chartered Bank may use one of the
following:
1. If grid is on a decarbonisation
trajectory, in line with the EU
Taxonomy,10 then it can be
considered 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

Energy Energy efficiency • Development, manufacture and/ • Projects or

efficiency technologies or installation of energy efficiency technologies that
technologies and products such improve the energy
as efficient appliances, smart efficiency of fossil
meters, efficient lighting, etc. fuel production
and/or distribution

10
Weighted average lifecycle emissions intensity of incremental new generation over the last 5 years being <100 gCO2e/kWh 7
Standard Chartered Bank Green Fund Product Framework 2022

Themes Sub Themes Eligible Activities Exclusions SDG Goal

Commercial, • Buildings meeting any of the • Improvement

public and following conditions: activities that
residential • Buildings certified to an result in the lock
buildings acceptable level under an in of fossil fuel
(existing internationally recognised technologies
and new green building certification • Activities related
construction) scheme;9 or, to buildings
• Buildings that achieve a directly involved
minimum 20% improvement in the exploration,
in energy use and/or carbon extraction, refining
emissions compared to a and distribution of
mandated local or regional fossil fuels
baseline or code10 • Cogeneration/CHP
• Replacement of existing heating/ plants powered by
cooling systems in buildings with coal, oil or natural
more efficient, non-fossil fuel gas
powered systems, or installation • Projects from waste
of new cogeneration/ tri- heat from fossil
generation/ combined heat and fuel production/
power plants11 that generate operation
electricity in addition to providing
heating/cooling
• Green data centres with a PUE of
under 1.5
• Waste heat recovery
improvements

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Certificates • BEAM PLUS Selective (Very Good or above
with Energy Use (EU) category included
• EDGE (Certified) under the assessment OR all levels - subject
• BREEAM (Excellent) to building achieving at least 20% energy
• LEED (Gold or above) efficiency improvements)
• Green Mark (Gold or above) • HQM (4 Stars or above)
• Green Star (5 Stars or higher) • EPC B for buildings in the UK
• China ‘Three Star System’ • NABERS Energy (5 Stars or higher)
(two stars or higher)
• BEAM Plus (Gold or higher) For building projects in the least developed, low
• G-SEED (Level 2 or higher), income and lower middle-income OECD DAC
• IGBC (Gold or above, markets, Standard Chartered may allow one level
• EEWH (Gold or above) below the green building certification scheme
• Estimdama 4 Pearl rating or above OR 3 Pearl (e.g. LEED Silver). The Sustainable Finance
plus a 20-30% improvement over ASHRAE Governance Committee may consider additional
90.1 2007 certification schemes so long as such schemes
are evaluated to be equivalent, internationally-
recognised certification schemes.

11
For building projects in the least developed, low income and lower middle-income OECD DAC markets, Standard Chartered may require
a 15% improvement in energy use and/or carbon emissions
12
Cogeneration plans are limited to those powered by CSP/solar thermal or biomass waste, OR geothermal energy/bioenergy with
emissions below 100gCO2/kWh(e) 8
Standard Chartered Bank Green Fund Product Framework 2022

Themes Sub Themes Eligible Activities Exclusions SDG Goal

Public services • Installation of energy-efficient • Projects to improve

lighting or equipment to increase the energy
the operational energy efficiency efficiency of fossil
of utilities and/or other public fuel production
services (excluding improvements and/or distribution
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 heat
• Distribution network where it is
primarily powered by renewables
and/or waste heat
• Retrofit of renewable energy
power plants
• Mobile network upgrades to 5G
technology (energy efficiency)

Agricultural • Improving the energy efficiency • Energy

processes, of irrigation, and other agriculture improvements in
aquaculture and livestock management equipment and
processes processes as well as of tractor technologies that
and livestock or equipment efficiency through are primarily driven
management fuel-switching to low-carbon by fossil fuels
options • Energy efficiency
• Improving energy efficiency improvements for
of aquaculture farming and fish farms that are
processing facilities not Aquaculture
Stewardship
Council (ASC)
certified or facilities
that have achieved
certification with a
variance from the
standard

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Standard Chartered Bank Green Fund Product Framework 2022

Themes Sub Themes Eligible Activities Exclusions SDG Goal

• Improving energy efficiency • Energy efficiency

of forestry-related activities, improvements for
including the production of forestry-related
forestry-related products activities that are
• Products with any of the not certified by
following certifications: either the Forest
Stewardship
• US Soy Sustainability Council (FSC)
Assurance Protocol (for certified or
agricultural purposes) Programme for the
• RSPO (waste to energy from Endorsement of
palm oil operations) Forest Certification
• Cotton Made in Africa (PEFC)

• 2BSvs (soy)
• Fairtrade14
• Better Cotton Initiative

Industrial • Development, manufacture, • Projects to improve

processes and distribution and/or installation of the energy
supply chains products or services that increase efficiency of fossil
the energy efficiency of industrial fuel production
processes and/or distribution
• Industrial/utility energy-efficiency • Production
improvements involving changes processes within
in processes, reduction of heat heavy industries
losses and/or increased waste such as steel,
heat recovery. This includes cement, aluminium,
the installation of renewable- etc.
powered cogeneration plant13 • Projects and/
or services must
be considered
‘green projects’
as opposed
to ‘transition
projects’15
• Plants powered by
coal or oil
• Plants powered
by natural gas are
only eligible if they
have a clear plan
to transition to low
carbon sources16

13
Fairtrade primarily speaks to social impacts within the context of agricultural and forestry activities, and as such it is considered eligible in the
context of social financing
14
Cogeneration plants are limited to those powered by CSP/solar thermal or biomass waste, OR geothermal energy/bioenergy with emissions
below 100gCO2/kWh(e)
15
Transition projects are separately captured in our Transition Finance Framework
16
Where low carbon sources are renewables and other energy sources with emissions below 100gCO2/kWh(e) 10
Standard Chartered Bank Green Fund Product Framework 2022

Themes Sub Themes Eligible Activities Exclusions SDG Goal

Transmission • Retrofit of distribution systems, • Projects/systems

and distribution transmission lines or substations where 25% or
systems to reduce energy use and/ more of electricity
or technical losses (except for transmitted
capacity expansion) is fossil-fuel-
• Improving existing systems to generated
increase efficient use of energy.
Examples could include smart
grid technologies, distributed
generation, peak demand
management, etc.

Transportation • Improvements to the energy • Fossil fuel-based

efficiency of infrastructure and transportation,
transport. An example could supporting
include reduction of empty infrastructure and
running and logistics software transportation
• Vehicle or rail fleet retrofit dedicated to fossil
or replacement with clean fuel transport
technologies including electric,
hydrogen, or hybrid vehicles
operating below 75 gCO2 per
passenger km (in 2020) and
below 56 gCO2 per passenger
km (by 2030)

Pollution • Activities with capital • Any expenditures

prevention expenditures which achieve the related to fossil
and control following: fuels
• Reduced air emissions • R&D and
• Mitigation of greenhouse gas commercial-scale
emissions carbon capture,
utilisation and/
• Soil remediation or storage (CCU/
• Waste prevention, reduction, CCS) applied to
recycling and sorting projects “hard-to-abate”
industrial activities
• Direct air capture
that are inherently
carbon-intensive
• Carbon Capture
Utilisation (CCU)
where captured
carbon is intended
for enhanced oil
recovery

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Standard Chartered Bank Green Fund Product Framework 2022

Themes Sub Themes Eligible Activities Exclusions SDG Goal

Water Sustainable • Activities that provide access to • Treatment of

management water adequate sanitation facilities wastewater
management • Activities that improve water from fossil fuel
quality: operations

• Water treatment facilities

• Upgrades to wastewater
treatment plants to remove
nutrients
• Wastewater discharge
infrastructure
• Desalination plants primarily
powered by low-carbon
sources, such as renewables
• Activities that increase water-use
efficiency:
• Water recycling and reuse
• Water saving systems,
technologies and water
metering

Sustainable Sustainable • Rail transportation projects for • Efficiency

infrastructure infrastructure public use improvements
and • Rail transportation of goods involving
transportation (excluding transport dedicated conventional fossil-
to fossil fuels) fuel combustion
engines (hybrid
• Train infrastructure upgrades engines and
For all public mass passenger technologies are
transportation that are not eligible)
electrified, the following thresholds • Systems and
should be met: 75 gCO2 per infrastructure
passenger km (in 2020) and 56 dedicated to the
gCO2 per passenger km (2030) transportation of
For all freight transportation that fossil fuels
are not electrified, the following
thresholds should be met: 25
gCO2/t-km (2020) and 21 gCO2/t-
km (2030)

Climate • Activities that increase the Given the potentially

change resilience of eco-systems, significant impact
adaptation including integrated watershed of infrastructure on
management and biodiversity the environment,
protection the development
• Climate change adaptation of Climate Change
infrastructure, such as flood Adaptation
defence and early warning Infrastructure should
systems be supported by third
party assessments
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Standard Chartered Bank Green Fund Product Framework 2022

Themes Sub Themes Eligible Activities Exclusions SDG Goal

Green • Loans which are verified by a

financing third-party as in compliance
instruments with the Green Loan Principles
pertaining to categories not
covered in this Framework
• Projects involved in various
international, regional or national
carbon markets and trading
systems, such as the CDM, EU
ETS, JI, AAUs, as well as well-
established, credible voluntary
carbon standards like the VCS or
the Gold Standard. For certainty,
such projects must otherwise be
eligible under this Framework

Sustainable • Financing for agricultural

agriculture, products certified under a
forests credible scheme such as
and land Rainforest Alliance, USDA
conservation Organic
• Loans to finance sustainable
management of natural
resources, i.e.:
• Certified forests (FSC, PEFC or
equivalent)
• Certified organic agriculture17
• Investment in protected areas
(regional natural parks)

Circular • Development, manufacture

economy and/or distribution of products
designed for circularity and/or
adaptive re-use. Eligible products
go beyond an eco-label and
demonstrate significant waste
diversion and/or use of waste
products18

17
Any certification listed in the IFOAM directory is considered eligible in relation to certification of organic agricultural produce

118
For clarity, products with a credible and recognised eco-label may be eligible but products will be assessed for reduction of raw resource
inputs and outputs 13
Standard Chartered Bank Green Fund Product Framework 2022

Themes Sub Themes Eligible Activities Exclusions SDG Goal

Blue economy • Projects designed and Coastal defence

implemented to provide coastal projects should
defences have a Vulnerability
• Capital expenditures related to Assessment and
creating and ongoing monitoring Adaptation Plan in
and surveillance of marine place
protected areas
• Products and fisheries
demonstrating sustainable
aquaculture practices through
certification by the Aquaculture
Stewardships Council (Processing
facilities require Chain of Custody
certification)
• Seafood products demonstrating
sustainable practices through
certification by the Marine
Stewardship Council (MSC)

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Standard Chartered Bank Green Fund Product Framework 2022

Themes Sub Themes Eligible Activities Exclusions SDG Goal

Access to Access to • Financing Microfinance Institutions Payday loans

finance affordable and (MFIs) via intermediaries, and Loans to businesses
responsible financing of smaller businesses involved in:
financial in least developed, low income
products and and lower middle-income OECD • Adult
services to DAC markets in which Standard entertainment
the poor and Chartered operates • Manufacture and
vulnerable • To be eligible for the use of production of
populations proceeds, one or more of the finished alcoholic
following populations should be beverages
specifically targeted: • Fossil fuel
• Females 19 exploration
and distribution
• Rural populations focusing
on agricultural production • Lethal defence
and agricultural value chains goods including
small arms
• Economically excluded
individuals • Gambling
• Populations in least, lower • Military
and lower-middle-income contracting
DAC markets • Nuclear power
To be identified as a small-medium generation
sized enterprise (SME), as defined • Non-RSPO-
by the International Finance certified palm oil
Corporation (IFC), the end-client • Predatory lending20
should meet two of three criteria
to qualify: • Manufacture and
production of
1. Number of employees <300
finished tobacco
2. Turnover between USD 100,000 products
up to USD 15 million
• Conflict minerals21
3. Total assets <USD 100,000
• Child labour
Projects are classified as microfinance
• Forced labour
if they meet the following criteria. The
end-client should meet two of the
three criteria to qualify:
1. Number of employees <10
2. Turnover under USD 100,000
3. Total assets <USD 100,000
If data mentioned above is not
available, the end-client average
loan size should be less than USD
10,000

19
Where at least one of the following applies: (a) at least 51% owned by a woman or by women; or, (b) (i) at least 20% owned by a woman or by
women, (ii) with a woman as CEO, COO, President or Vice President and (iii) a board of directors at least 30% comprised of women
20
Imposing unfair or abusive loan terms on a borrower. Any practice that convinces a borrower to accept unfair terms through deceptive, coercive,
exploitative or unscrupulous actions for a loan that a borrower doesn’t need, doesn’t want or can’t afford. Involvement in predatory lending is
defined as, either the company is involved predatory lending activities, or the company owns 10-50 per cent of another company with involvement
predatory lending activities
21
Minerals (specifically tantalum, tin, tungsten and gold, often referred to as “3TG”) extracted from areas of armed conflict in the Democratic
Republic of Congo (DRC) 15
Standard Chartered Bank Green Fund Product Framework 2022

Themes Sub Themes Eligible Activities Exclusions SDG Goal

Water Activities that • Construction, maintenance, and

expand public equipment for water supply
access to safe infrastructure i.e. pipework
and affordable • Financing to construct, equip,
drinking water and/or operate:
• hospitals, clinics and health
care centres for the provision
of public/free/subsidised
health services
• infrastructure for the provision
of emergency medical
response and disease control
services

Healthcare Healthcare • Financing to construct, equip,

infrastructure and/or operate:
• hospitals, clinics and health
care centres for the provision
of public/free/subsidised
health services
• infrastructure for the provision
of emergency medical
response and disease control
services

Providers of • R&D and manufacturing for

supporting equipment for the provision of
health-care emergency medical response
related products and disease control services
and services • Provision/distribution of
healthcare equipment for public/
free/subsidised services
• Provision of free/subsidised/
affordable training for
healthcare professionals

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Standard Chartered Bank Green Fund Product Framework 2022

Themes Sub Themes Eligible Activities Exclusions SDG Goal

Education Primary, • Construction of public/free/

secondary, adult subsidised schools
and vocational • Construction of public universities
education
• Construction of campuses for
public schools and universities
• Affordable schools and
education providers in least
developed, low income and
lower middle income OECD DAC
markets
• Construction of student housing
provided the rent is capped
below the local or regional
average to ensure affordability
to all students
• Free/subsidised/affordable
training for educational
professionals

Affordable Affordable/ • Access to adequate, safe and

housing social housing affordable housing for excluded
and/or marginalised population
or communities

Affordable Establishing • Development of roads (including

basic or improving road infrastructure such as
infrastructure connectivity bridges and tunnels) in least
in low income developed, low income and
markets lower middle income OECD DAC
markets with a goal to improve
rural/remote connectivity and
to improve passenger and
commercial transport
• Passenger buses in least
developed, low income and
lower middle income OECD DAC
markets designed to improve
connectivity
• Rural telecoms/internet
connectivity in least developed,
low income and lower middle
income OECD DAC markets

17
Standard Chartered Bank Green Fund Product Framework 2022

COVID-19. Any financing specific to COVID-19 will only be eligible as a Sustainable Finance asset under
this Framework if originated before July 2022. This will be reviewed dynamically by the Sustainable Finance
Governance Committee depending on the COVID-19 pandemic situation globally.22

Themes Sub Themes Eligible Activities Exclusions SDG Goal

COVID Healthcare • Financing to equip, operate and • Banking that

healthcare services add capacity and efficiency to directly finances:
essential healthcare facilities • Cosmetic
such as hospitals, clinics, facilities
healthcare centres, acute care,
emergency care, diagnostics, • Aesthetic
laboratory facilities, nursing medical facilities
home and rehabilitation facilities • Chiropractic
• Manufacturing, logistics and facilities
distribution of medical products • Acupuncture
and supplies essential to medical facilities
response, disease control services • Hospital greenfield
and vaccinations construction
• Financing to equip, operate and
add capacity to facilities for
healthcare training
• Financing to equip, operate and
add capacity to facilities that
house healthcare professionals
• Hiring and training of medical
personnel to assist in the
prevention and/or treatment of
COVID-19

Healthcare • The conversion of facilities or

supplies and equipment to produce supplies
equipment or equipment needed for the
prevention or treatment of
COVID-19

Pharmaceuticals • Financing the subsidisation of

provision of pharmaceuticals
needed in the treatment of
COVID-19
• Financing the production and
distribution of pharmaceuticals
needed in the treatment of
COVID-19

22
All assets considered as COVID-19 eligible will be funded through the USD 1 billion COVID-19 facility whereby Standard Chartered
extends loans at not-for-profit rates. Financing under this facility at present is timebound to assets originated before July 2022. We
expect that all urgent COVID-19 related funding will have concluded by this date. This will be reviewed dynamically by the Sustainable
Finance Governance Committee 18
Standard Chartered Bank Green Fund Product Framework 2022

Themes Sub Themes Eligible Activities Exclusions SDG Goal

COVID Sanitation • Manufacturing, logistics and

sanitation distribution of products and
services for safely managed
water, sanitation, and hygiene
(WASH)23

COVID food Food security • In least developed, low income

security and lower middle income OECD
DAC markets impacted by
COVID-19 or in the recovery from
COVID-19 - financing provided to
facilitate the increase in capacity
and efficiency in food systems
and supporting the provisioning,
production, logistics and
distribution by companies of food
and nutritional supplements

COVID socio- Impacts on SMEs • Loans or other financial services

economic and employment to support SMEs who have been
impact assessed by the Sustainable
mitigation Finance Governance Committee
as facing financial stress as a
result of COVID-19
• Loans or other financial
services to support initiatives
designed to prevent or alleviate
unemployment

Other impacts • Financial support for the

activities of charities, non-profit,
non-governmental and other
social service organisations who
support populations directly
affected by COVID-19
• Financial support related to
medical nutrition in treatment
of COVID19 or ensuring a secure
food supply during phases of
restricted contact

https://www.worldbank.org/en/topic/water/brief/wash-water-sanitation-hygiene-and-covid-19
23
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Standard Chartered Bank Green Fund Product Framework 2022

Businesses and projects that are involved in the • Military contracting

following operations will not be eligible for financing
• Nuclear power generation
under this Impact Framework:
• Non-RSPO-certified palm oil
• Payday loans
• Predatory lending
• Adult entertainment
• Manufacture and production of finished tobacco
• Manufacture and production of finished alcoholic products
beverages
• Conflict minerals
• Fossil fuel exploration and distribution
• Child labour
• Lethal defence goods including small arms
• Forced labour
• Gambling

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Standard Chartered Bank Green Fund Product Framework 2022

[[ ommitments
C
and achievements]]

3 25
Standard Chartered Bank Green Fund Product Framework 2022
2019 Commitments and
Achievements
Commitments
In May 2019, we highlighted some of the challenges
we, and others, faced in determining and reducing
climate impact, including the lack of consistent
reporting by companies of their emissions. We called
for banks to work closer together to tackle this issue,
raising the importance of reducing emissions with our
respective clients. We also published a white paper
that outlined the methodology by which we would
review and measure our emissions within our lending
portfolio, working with 2 Degrees Investing Initiative
and initially focussing on seven climate relevant
sectors; upstream Oil & Gas, shipping operations,
automotive, power generation, coal mining, steel
and cement manufacturing.
We were one of the first organisations to adopt
the recommendations of the Taskforce on Climate-
related Financial Disclosures (TCFD), where we report
on our progress on climate change. We released our
updated TCFD report in 2019, and announced further
measures including our commitment to net zero
carbon emissions by 2030. Other announcements
include:
• We are supporting our markets and clients
in the transition to a low-carbon future, and
are committed to providing USD 75 billion in
financing by the end of 2024. Of this, USD 40
billion will be directed to project financing services
for infrastructure that promotes sustainable
development, and another USD 35 billion of
project financing services, M&A advisory and debt
structuring services for renewables and clean-tech
projects.
• We will provide USD 15 billion to small business
clients (previously USD 6 billion for 2017-2019)
and USD 3 billion to microfinance institutions
(previously USD 1 billion for 2016-2020).
• Emerging markets will be the most affected by
climate change and have the greatest opportunity
to leapfrog into a new low-carbon technology,
but there has not been sufficient investment into
this sector across emerging Asia, Africa and the
Middle East. We commit to being part of the
solution in bridging what the UN estimates to be
a USD 2.5 trillion a year funding gap.
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Standard Chartered Bank Green Fund Product Framework 2022

Achievements We successfully priced a EUR 500m Sustainability

We funded and facilitated USD 2.3 billion
for infrastructure that supports sustainable
development, mobilised USD 20 billion of clean
technology projects and helped clients issue
USD 18.3 billion in green, social and sustainable
bonds. We also saw 9-fold increase year on year
in green and sustainable loans to clients from USD
3.2bn to USD 29.1bn (2018 vs. 2019).
Bond focused on emerging markets. The proceeds
of the bond will be used to provide finance in
areas aligned with the United Nations Sustainable
Development Goals (SDGs) – including clean energy
projects, smaller business lending and microfinance
loans – helping drive employment, growth and
prosperity across emerging markets.
We launched the world’s first Sustainable Deposit,
for financing sustainable assets in developing

2.8
markets aligned to the United Nations’ SDGs.
This is the first time any bank has launched a
corporate deposit product linked to sustainability
and the SDGs, which focuses on addressing global
challenges such as poverty, inequality and prosperity.
Priced in USD, GBP and EUR, liquidity raised by the
Deposit will be used to finance activities set out in

USD bn
this framework. Deposits reached USD 1bn in January
2020 and then doubled in three months, highlighting
that despite the recent economic turmoil brought by
We supported entrepreneurs and smaller businesses the COVID-19 pandemic, companies are still keen to
by providing USD 2.8 billion for Business Banking finance the SDGs in emerging markets.
clients and USD 710 million to microfinance
institutions (MFIs) for onward lending, making a total
of USD 2.4 billion of support to MFIs since 2016.

“We believe that sustainable finance

can act as a powerful differentiator
for our clients, shareholders, regulators
and employees. The over-riding aim is
to promote both economic and social
development in a sustainable way
and help to transform the markets
in which we operate for the better,
positioning ourselves as the leading
Bank for sustainable finance in
emerging markets”.
Tracey McDermott Group Head, Conduct, Financial
Crime and Compliance

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