Standard Chartered Bank

Red LineText of policiesCommentsScore
Regulatory requirements
Ensure LegalityPosition Statement page: We expect our clients to comply with all applicable local laws and regulations, as well as international conventions that their country has ratified.

The bank requires its clients to comply with all national laws and international conventionswell
No Corruption and Tax EvasionAnti-Bribery and corruption Policy Statement: Standard Chartered has a Group-wide Anti-Bribery and Corruption (“ABC”) Policy that is based upon the UK Bribery Act and the U.S. Foreign Corrupt Practices Act. This Policy is supplemented by the Group ABC Procedures, which defne minimum standards for compliance with the ABC Policy. The ABC Policy and Procedures are binding on all Group offices (...).The bank is commited to fight corruption and tax evasion in its own operations but it is not clear to what extend it requires its clients to do the same.partly
Ensure ESIA for mills and plantationsPosition Statement page: We also expect clients to identify any potential environmental or social risks around a particular project, and show that they are managing these appropriately. This includes complying with the Equator Principles – a risk management framework for assessing and managing environmental and social risk in project development.ESIA's are required in case the EP apply. For other cases there is no clear requirementpartly
Social requirements
Ensure FPICPosition Statement page:
We recognise that communities outside mainstream society may be especially vulnerable. If we believe that we are financing operations that may adversely impact indigenous peoples, we will:
* appoint an independent social expert to determine the nature and scale of the potential impact
* take key mitigation measures, guided by the principle of Free, Prior and Informed Consent (as detailed in IFC Performance Standard 7)
The policy requires FPIC for indigenous communities, but not for other impacted communities (though it does require this for palm oil operations)partly
Respect Human RightsModern Slavery Statement: We have longstanding environmental and social standards
for our business clients, including clear expectations that clients have appropriate controls in place to prevent incidences of modern slavery practices. Where we identify that such practices do occur, we will investigate and work with clients to ensure they are able to prevent recurrence. Where this is not possible, transactions have been and will continue to be turned down.

Position Statement page:
We are committed to respecting universal human rights. We assess our clients against the following international principles:
International Bill of Human Rights
International Labour Organisation (ILO) Declaration on Fundamental Principles and Rights at Work
International Labour Organisation (ILO) Conventions 138 (Minimum Age) and 182 (Worst Forms of Child Labour)
UN Guiding Principles on Business and Human Rights (the ‘Ruggie Principles’)
UN Convention on the Rights of the Child
UN Global Compact
Thun Group Guiding Principles: an interpretation for banks
Clients are expected to comply with all major conventionswell
Respect Indigenous rights and customary land use rightsPosition Statement page:
We recognise that communities outside mainstream society may be especially vulnerable. If we believe that we are financing operations that may adversely impact indigenous peoples, we will:
* appoint an independent social expert to determine the nature and scale of the potential impact
* take key mitigation measures, guided by the principle of Free, Prior and Informed Consent (as detailed in IFC Performance Standard 7)

Agro Industries Position Statement
The position statement recognizes the rights of indigenous peoples, including to FPIC, but not that of other communities. Though the agro industry policy requries FPIC for all affected communitieis in the case of palm oil operations, it does not so for Forestry operations.partly
No forced resettlementPosition Statement page:
We recognise that communities outside mainstream society may be especially vulnerable. If we believe that we are financing operations that may adversely impact indigenous peoples, we will:
* appoint an independent social expert to determine the nature and scale of the potential impact
* take key mitigation measures, guided by the principle of Free, Prior and Informed Consent (as detailed in IFC Performance Standard 7)

Agro Industries Position Statement
The position statement recognizes the rights of indigenous peoples, including to FPIC, but not that of other communities. Though the agro industry policy requries FPIC for all affected communitieis in the case of palm oil operations, it does not so for Forestry operations.partly
Environmental Requirements
No forest degradation and deforestationPosition Statement page
UNESCO World Heritage Sites are globally recognised for their outstanding universal value, and we are committed to playing our part in protecting them.
We ensure we do not provide financial services to clients that have operations that adversely impact upon the Outstanding Universal Value of UNESCO World Heritage Sites or upon wetlands designated under the Ramsar Convention on Wetlands of International Importance
We assess the impact of our clients’ operations on forests, and ensure that they won’t negatively impact High Conservation Value or High Carbon Stock forests, as well as peatland.

We will not provide financial services directly towards:
• New plantations or livestock ranches which convert or degrade High Conservation Value (HCV) or High Carbon Stock (HCS) Primary forests, peatlands or designated legally protected areas.

Agro-Forestry position
We will only provide financial services to clients:
• Follow an appropriate chain of custody scheme (FSC, PEFC or equivalent scheme1) for timber, pulp or paper products originating from high risk countries2, to demonstrate the legal origin of the timber, including certification for those species regulated under the Convention of International Trade of Endangered Species (CITES) – applicable to Processors, Manufacturers and Traders.

The policy protectd against deforestation and degradation of critical habitatswell
Protect endangered speciesWe will not provide financial services directly towards:
• New plantations or livestock ranches which convert or degrade High Conservation Value (HCV) or High Carbon Stock (HCS) Primary forests, peatlands or designated legally protected areas.

We will only provide financial services to clients:
• Follow an appropriate chain of custody scheme (FSC, PEFC
or equivalent scheme1) for timber, pulp or paper products
originating from high risk countries2, to demonstrate the
legal origin of the timber, including certification for those
species regulated under the Convention of International
Trade of Endangered Species (CITES) – applicable to
Processors, Manufacturers and Traders.
(Agro Forestry position)
The policy provides protection through the HCV assessment requirement, but the CoC requirements are too weak - they can rely on PEFC, are only applied to high risk countries and do not mention the IUCN red list.partly
No high-risk speciesWe will only provide financial services to clients who:
* Cultivate and/or trade in Genetically Modified Organisms (GMOs) in accordance with the requirements of the Cartagena Protocol on Biosafety." https://www.sc.com/en/sustainability/position-statements/agro-industries/
There is no full prohibition on the use of GE trees and the policy does not mention the use of high risk species.not
No fireWe will not provide financial services to clients who:
Use fire in forestry or plantation operations including in the clearance and preparation of land for planting. (Agro industries position)
The policy prohibits the use of firewell
Protect peatAgro Forestry position
We will not provide financial services directly towards:
• New plantations or livestock ranches which convert or degrade High Conservation Value (HCV) or High Carbon Stock (HCS) Primary forests, peatlands or designated legally protected areas.
No new plantations are allowed on peat, but the policy does not cover the management of existing plantations on peat, nor does it cover third party supplierspartly
No persistent pollutionWe will not provide financial services to clients who:
Manufacture or produce goods containing ozone depleting substances, persistent organic pollutants (POPs), pesticides, and industrial chemicals and compounds such as mercury, which are subject to international restrictions, phase-outs or prohibitions. https://www.sc.com/en/sustainability/position-statements/chemicals-manufacturing/

We will not provide financial services directly towards:
Operations using pesticides categorized as 1A or 1B by WHO; substances banned under the Stockholm Convention on Persistent Organic Pollutants (POP); or substances listed in Annex III of the Rotterdam Convention – applicable to Producers.
(Agro industry policy)
The policy has clear requirements regading the use of pesticides, but is less clear regarding the chemicals used in the pulp millspartly
Corporate association / scope of the policy
Corporate association / scope of the policyThere will be some clients operating in sensitive industries that fail to reach the Environmental & Social (E&S) standards we require and also form part of a larger group-level entity.
In these instances, we will not directly support these legal entities, and we will use our influence to help clients enhance standards across the group. https://www.sc.com/en/sustainability/position-statements/our-framework/

We will only provide financial services to clients:
Follow an appropriate chain of custody scheme (FSC, PEFC or equivalent scheme1) for timber, pulp or paper products
originating from high risk countries2, to demonstrate the legal origin of the timber, including certification for those
species regulated under the Convention of International Trade of Endangered Species (CITES) – applicable to
Processors, Manufacturers and Traders.
We expect clients to:
• Implement a Sustainable Sourcing Policy for timber, pulp or paper products originating from low risk countries. (Agro Industries policy)
The requirement for a CoC policy only applies to legality and can rely on PEFC as a proxy for compliance, though PEFC is too weak.partly