Green Banking Report 2013 PDF

Green Banking Report 2013
This document
2 | Ppresents
a g e information about Standard Chartered Banks environmental activities and performances in Bangladesh
for the year 2013 under the Policy Guideline for Green Banking of Bangladesh Bank.
Contents
Sustainability and Our Business
Policy Formulation and Governance
Incorporation of Environmental Risk in

Core Risks Management
In-house Environment Management
Introducing Green Marketing
Employee Training, Consumer

Awareness and Green Event
13
Appendix 1: In-house Green Initiatives

and spent in 2013
14
1|Page
Sustainability and Our Business
Sustainability is integrated into how we do

business. It guides everything we do,
from the services we provide to our
clients and customers, to the way we run
our bank and support the local
communities in which we live and work.
Our approach to sustainability is captured
in our brand promise, Here for good.
Our business strategy focuses on

banking the people and companies
driving investment, trade and the creation
of wealth across Asia, Africa and the
Middle East. Our core markets are
continuing to see strong economic
growth, with rising incomes and
increasing demand for financial services.
This represents a massive opportunity for
our business and, with it, the opportunity
to promote sustainable, balanced and
inclusive growth in our markets.
As a major international financial
institution, our commitment to society
goes beyond creating value for our
shareholders. We seek to ensure that the
financing we provide is sustainable and
supports
economic
and
social
development for all of our stakeholders.
Our approach focuses on three key
priorities:
-
2|Page
Contributing
to
sustainable
economic growth
Being a responsible company
Investing in communities
Policy Formulation and Governance
Standard Chartered takes a long term

view of the environmental consequences
of its actions, either directly from our
operations or indirectly through our
relationship with business partners. We
ensure we build a sustainable business
that brings benefit to our shareholders,
society, the environment and local
economies.
Globally the management has indicated it

wants to ensure the brand is not
undermined
through
inappropriate
financing of environmentally vulnerable
projects, inefficient use of scarce natural
resource, or environmental volunteering
with poorly considered outcomes. The
bank also recognises that the Group has
an important role to play in ensuring that
employee interest in green issues is
harnessed through communication of the
Groups position, and role modelling
responsible behaviour with respect to the
environment. In this context, we position
ourselves to remain in the leading pack
in
relation
to
our environmental
commitments and place more emphasis
on optimal utilization of resources rather
than climate change issues to underpin
our approach.
In Bangladesh, Country Health, Safety
and Environment Committee has been
reviewing green banking and environment
related initiatives and Green Banking Unit
has been formed to coordinate the
activities
as per Green
banking
regulations as well as reporting the same
to Bangladesh Bank. As per the
Bangladesh Bank circular in December
2013; Risk Management Committee in
addition to the Country Health, Safety and
Environment Committee has taken up
same responsibility.
3|Page
Incorporation of Environmental Risk in Core Risks Management
Standard Chartered recognises that its

financing decisions have a potential
impact on people and the environment.
The bank has 20 position statements on
high-impact sectors such as oil and gas,
mining and forestry, as well as key
issues, such as child labour, climate
change and water.
Environmental risk means the risk of

causing pollution or destruction of the
natural environment (land, water, air.
natural habitats, animals and plant
species), either through accidental or
deliberate actions.
149 projects having ETP (Effluent

Treatment Plant) financed
The Businesses will ensure that

appropriate procedures are designed to
meet these policy requirements e.g.
Project and Export Finance proposals will
be assessed in accordance with the
Equator Principles.
We recognise that our primary impact on

the natural environment is through our
The statements set out the environmental relationship with our customers and the
and social standards that Standard lending decisions we take. Therefore:
Chartered expects of itself and its clients.
The banks sustainable finance approach All our lending proposals will include
enables it to identify environmental risks consideration of environmental and social
and propose mitigating solutions at an issues where appropriate
early stage.
All lending proposals will take account of
internationally acceptable environmental
and social standards or local laws and
regulations where these are more
Our Highlights in 2013:
stringent
1420
projects
rated
under
Environment Due Diligence (100% The risks associated with both
implementation)
environmental and social issues will be
properly recognised, evaluated and
1238 rated projects financed
where appropriate mitigated
BDT 34223 Million disbursed for

projects having ETP
BDT 683 Million disbursed as direct
Green finance in 3 projects
4|Page
As per the above principles, we have

implemented
Environmental
Due
Diligence from June 2011 and have
applied the same as part of our risk
assessment. Since June 2011, we have
applied the Environment Risk Ratings to
100% of our projects that are applicable
for such due diligence.
Improving standards in ship breaking

Standard Chartered Bangladesh has served the ship breaking sector for nearly 20
years, with most of its clients recognised as leaders in the industry.
By 2007, a number of accidents had occurred in the ship breaking industry, though
the frequency of accidents among Standard Chartered Bangladeshs clients had
remained low. Given the social implication of these accidents, Standard Chartered
requested all its ship breaking clients in Bangladesh and elsewhere to apply
stringent safety measures as a condition of financing. This included a restriction on
the purchase of ships with a high asbestos content. To secure a safer working
environment for ship breakers, all Standard Chartered clients were requested to
meet the standards of the International Labour Organization and International
Maritime Authority.
In making its changes at the risk of losing business Standard Chartered
Bangladesh acted ahead of standards being enforced by the Bangladesh
government. Subsequently, the government has introduced mandatory regulatory
approval by the Department of Environment as a condition for any ship breaking
activity taking place in Bangladesh.
5|Page
In-house Environment Management

In 2009, we had made a global To reduce energy & water consumption:
commitment to significantly reduce Green cars introduced as part of car
energy and water use by 2019. Our
pool to save energy and reduce
design standards and operational criteria
carbon emissions.
are starting to transform the built Energy saving T5 lights introduced in
environment. We have made solid
all office buildings in Dhaka (Headprogress, but the pace has slowed as we
office and Monem Business District).
realised quick wins.
Renewable energy (Solar Power)
introduced for 2 ATM machines as
The economic imperative to save energy
pilot.
is growing as energy prices continue to Air-conditioning is centralized in all
rise more sharply. The impact is
Dhaka offices to save energy.
significant with every one per cent Motion sensors have been installed in
improvement in Group Energy Usage
our new premises in Monem
Intensity (EUI) equating to USD 600,000
Business District to optimize power
in running costs globally.
consumption in office lighting.
Energy usage for central airIn line with Global strategy; various
conditioning
has
been
further
continuous processes have been there to
reduced by the installation of Variable
minimize the banks direct operational
Frequency Devices (VFD).
impact to environment in Bangladesh:
In smaller premises (branch offices);
Airco saver equipments introduced
To reduce Paper usage and help save
for energy efficiency.
Trees:
Video conferencing with overseas
Green Printing Guideline is being
offices and between offices in Dhaka
circulated among staffs through
and Chittagong has reduced the need
internal communication on regular
for physical travel with associated
basis
carbon emission.
Soft archival of customer documents
Self-closing water taps installed in
for electronic access and retrieval is
Dhaka offices (Country HO and
enabling us to reduce consumption of
Monem Business District) which is
paper
saving water.
Majority of internal memos, process
Hand-wash towels replaced with
notes and records are in electronic
Dyson Air-blade equipments which
form
are saving both water and energy
Internal communications are done
usage in our offices in Dhaka.
through emails. All staffs have
dedicated email IDs for office use.
Customer communications are being
done through emails, SMS or ATM
display
instead
of
letter
communication (except for regulatory
requirements)
6|Page
Greener cars for energy efficiency and reduced carbon

emission
As part of the plan to reduce carbon emission resulted by direct operational
impact; Standard Chartered bank has introduced green cars in its car pool. 2
units of 'HONDA INSIGHT HYBRID 2012' run at 11 KM/litre whereas
conventional cars run at 6 KM/litre. With daily operational distance of 200 KM;
these cars will save 15 litres of fuel per day which is equivalent of 36Kg of
carbon di-oxide emission to the environment (burning 1 Lt Petrol emits 2.3Kg
of carbon di-oxide and uses 1.7 Kg of oxygen which is the roughly equal to
daily oxygen required by average human). Therefore in other words, each of
these cars will save oxygen for 7 individuals per day.
Responsible and ethical e-waste disposal

Standard Chartered dispose obsolete or broken IT equipment ethically and
responsibly. Standard Chartered has implemented IT Asset Disposal Policy. It
is a part of the Banks commitment to limit our electronic waste impact on
environment.
The Waste Electrical and Electronic Equipment (WEEE) directive is European
Union law to ensure that electronic waste, or e-waste, is disposed of in a safe
way. At Standard Chartered, since 2008, we have been complying with this
global law by partnering with the right vendor to dispose, recover or
recondition our technological assets in an environmental-friendly manner.
However, retiring our IT assets has been a costly and logistical challenge for
the Bank.
In Bangladesh, we have engaged with a local vendor (DNET Limited) to
refurbish and distribute as donation, obsolete IT equipments to various schools
and other organizations for the underprivileged population since 2009. Under
the scheme, a total of 3744 pieces of various technology equipments (such as
computer CPU, monitor etc) has been distributed to around 200 organizations
worth estimated 5.72 million BDT during the period between 2009 and 2013.
7|Page
Conserving energy with solar-powered ATMs

Bangladesh, as a country, suffers from an insufficient and erratic power supply. To
conserve energy and reduce its dependency on conventional power sources,
Standard Chartered Bangladesh is adopting renewable energy alternatives where
possible. Solar power is commonly used for lights, fans and computer operation in
Bangladesh to help ensure a continuous electricity supply.
Standard Chartered Bangladesh is also experimenting with using solar power to
run ATMs during daylight hours since 2012. From 9am to 7pm, an ATM machine at
the banks head office is run with solar power from a 1 kilowatt solar panel. After
7pm a timer transfers the power supply back to the regular source. The use of
solar power to run the ATM saves 3,600 KWH of energy annually, and reduces the
banks dependence on diesel generators.
Following the successful pilot, Standard Chartered Bangladesh is now considering
using solar power for ATMs at other branches and offices, as well off-site ATMs.
Another solar-powered ATM is installed in North Gulshan branch in 2013.
8|Page
Introducing Green Marketing
Our Green Marketing and Products

initiatives are:
1. Customers can now avail instant
registration for Online Banking interface:
Customers can sign up instantly to Online
Banking using their Debit or Credit card.
No more visiting the branch and no more
hassle. Our Online Banking facility allows
the customer to bank from anywhere,
anytime
with
total
security
and
confidentiality. This service is absolutely
free for customers. Following banking
services can be availed through Online
Banking:
Transfer fund from One account to
another account within Standard
Chartered or to any BEFTN member
bank account (daily transfer limit
BDT 500K)
Pay bills for Standard Chartered
credit
cards,
mobile
phones
(Grameenphone, Banglalink, Airtel
and
Citicell),
internet
service
providers (Qubee and Banglalion)
and insurance premium (MetLife
Alico).
Request chequebook or account
statement
Place instruction for a regular
transfer of fund from account at
desired frequency
2. Round the clock book transfer
introduced for Straight2Bank (Online
Banking for institutional clients) client
see following section.
3. British Council online exams fee
collection launched through Online
Banking portal: Standard Chartered
Bangladesh, in collaboration with The
British Council Bangladesh launched a
9|Page
unique examination fee collection solution

based on Standard Chartered award
winning consumer banking internet
channel - online banking. All Standard
Chartered account holders can now pay
the British Council exam fees through the
online banking portal of Standard
Chartered Bank. This enables them to
pay for the different exams, without
having to come to the Standard
Chartered Bank branches. This is in line
with the digitalization strategy of both the
organizations and offers convenience of
online banking to British Council
examinees who are also Standard
Chartered Bank account holders.
4. Enhanced ATM functionality in
Bangladesh:
Standard
Chartered
accountholders can now transfer fund up
to BDT 500K per day to any Standard
Chartered account using Standard
Chartered ATM.
5. Enrolment to SMS banking and eStatement mandatory for all new
customers: E-Statement and SMS
Banking has been made mandatory for all
NTB (New to the bank) customers
effective from 1 May 2013.
6. We have introduced online application
for Credit Cards in Bangladesh: For the
first time in Bangladesh, Standard
Chartered Bank introduced the state-ofthe-art Online Application system to apply
for the Credit Card easily through online
from the website! This is giving the
customer an Approval-In-Principle, based
on which the customer will receive a
notification via email and a sales agent
will collect all the necessary documents
from the applicant.
8. Paperless PIN introduced for credit

cards: Personal Identification Number
(PIN) delivery for cards has historically
been a costly and inconvenient paperbased process. Customers wait for
delivery of paper PIN that can be delayed
due to varieties of reasons. To address
the issue, we have explored alternate
mediums for PIN delivery and developed
a new PIN setting via phone banking
solution i.e. customer selects their own
PIN upfront via the phone which is
convenient, instantaneous, secure and
paperless.
Bangladesh becomes the first among
Standard Chartered market and the first
bank in the country to have paperless PIN
delivery service for both debit and credit
cards. Customer in Bangladesh now
enjoy following benefits:
Speed: Customers can change PIN
without
visiting
ATM
almost
instantaneously. The 2 to 3 days wait
for paper PIN is eliminated.
Personalisation: The PIN is set by
the customers post verification as per
bank standards and is done in a
secure manner.
27,000 sheets of paper are saved via
elimination of printing and postage of
envelopes in 3 years which generates a
total cost savings of USD 28000 for the
paper, printing and postage.
10 | P a g e
9. We are increasingly focusing on online

advertising: As opposed to tradition
paper-based advertisement mediums we
are increasingly focusing on online
platforms like Facebook, Websites etc. to
reach out customers with our offers and
promotions. We now have, by far, the
biggest community on Facebook among
all Financial Institutes in the country,
through which we are reaching out to
more than 300,000 people every week
electronically without any use of paper
mediums. All our offers, promotions,
news are also available on websites
which is visited by numerous people
everyday reducing the dependency from
paper-based notice circulation. All these
Digital initiatives are reducing our Carbon
footprints from day-to-day communication
activities.
Online Banking Milestones

As the pioneering bank in Bangladesh market in introducing various technological
developments in providing customer services to reduce paper waste, saving gas
and minimize carbon emission, reducing printing costs and postage expenses. We
take pride in our online banking achievements in Bangladesh. Some of these
achievements are:
All of our 19 branches, 9 cash booths, 20 financial kiosks, 96 ATMs, 3 call
centres and own offices are connected to transaction processing systems
via intranet. So, 100% of our service points (branches and other service
points) are online.
All VISA ATMs in Bangladesh accept our debit cards.
As of year-end 2013, 63% of our customers are using internet banking. In
2011, this figure was 45%.
As of year-end 2013, 73% of our customers are using SMS banking
services.
As the pioneer in rolling out e-Statement in Bangladesh, we have saved 2
million sheets of paper in 2013 due to delivery of e-Statement instead of
paper statement to the customers.
In 2013, we have delivered 61% of all our customer statements through
email which was 30% in 2011 and 54% in 2012.
11 | P a g e
Round the clock book transfer for Straight2Bank Client

(Online Banking for Institutional Clients)
Standard Chartered Bangladesh successfully launched of Round the clock
Domestic Book Transfer through Staright2Bank that enables clients to initiate same
currency domestic SCB to SCB payments round-the-clock with enhanced
bandwidth capacity for faster processing. No more cut-off times!
Value Proposition for Clients:
Anytime Book Transfer: Initiate and complete domestic fund transfer to any
Standard Chartered corporate or individual account anytime.
Real-time credit to beneficiary: The beneficiary will receive the credit on a
near real-time basis.
No more cut off time: No scrambling to effect funds transfers within
Standard Chartered cut off time.
Supports multiple channels: Transactions can be initiated from
Straight2Bank Web and Host to Host
No Setup required: Effective immediately, you will be able to make domestic
funds transfers within Standard Chartered Round the Clock without any
setup or additional fees.
Powerful tool to make salary or other time critical payment after office or
during holidays
Benefits to the Bank:
Operational efficiency as there is no manual intervention
Minimization of operational risk
Embedding flexible payment solutions deepens relationship, attracting sticky
liabilities
How does it work?
Client initiates and submits domestic Book Transfer payment through
Staright2Bank web or host to host.
Transaction is being processed near real time round the clock
The beneficiary receives fund instantly round the clock
12 | P a g e
Employee Training, Consumer Awareness and Green Event
Health, Safety and Environment elearning training is mandatory for all

newly joined staffs in Bangladesh. For our
Corporate Relationship Managers to have
in-depth
understanding
on
Green
Finance, we have introduced Sustainable
Awareness
development
among Finance Training in 2012. In 2013, a total
consumers and clients are a continuous of 280 staffs have attended these
job of the bank under its Corporate Affair trainings.
department.
In 2013, Standard Chartered Bank
organized various Green Banking events.
Employee awareness development and
training on environmental and social risk
and the relevant issues are continuous
process as part of the bank's Employee
Training Program.
Keeping in mind the slogan "Plant Two

Trees Against Loss of One Tree"
Standard Chartered volunteer team led a
Tree Plantation event on 16th May 2014
and decided to extend little endeavour to
contribute to the environment by planting
trees at Aftab Nagar. The team ensured
active participation in selecting good
trees, plantation and nursing of these.
At the World Environment Day 2013 on
6th June 2013, our passionate colleagues
participated in the Riding Green
initiative in partnership with JAAGO
Foundation to raise awareness about
environmental issues. The team also
actively participated to monitor wastage
of food at the Head office Cafeteria and
ensured disposable environment friendly
paper glass to drink water towards the
agenda "Think. Eat. Save".
Standard Chartered Bank organized
another Tree Plantation program on 5th
October 2013 as part of the employee
volunteering to reinforce the brand
promise Here for Good. Over 80
passionate volunteers across the bank
participated in the program. A good
number of saplings were planted in both
sides of the Aftab Nagar canal.
13 | P a g e
In-house Green Initiatives and spent in 2013

As per the Green Banking policy requirement of Bangladesh Bank; BDT 12.30M has
been allocated in the environment risk management plan for 2013 for various inhouse initiatives. However, BDT 8.40M has been utilized under the plan as few of
the projects could not be undertaken. In Q4 2013, BDT 5.50M has been approved
and utilized for the purchase of green cars for bank use outside of the annual
environment risk management plan. As a result; total spending for in-house green
initiatives stands at BDT 13.90M in 2013.
Following in-house energy and water saving initiatives were undertaken in 2013:
Figures in 000 BDT
SNO
Projects
Allocation
Utilization
Description
L8 Light Change to L5 in
Head Office building
1,000.00
1,428.60
VFD for the Central AC for

Head-Office.
6,000.00
5,216.69
Dyson Air Blade for the

washroom at Head Office
1,000.00
880.00
These
devices
would
eliminate the need for towel
and hence would result in
net save in cost, energy and
water consumption.
Airco saver for North

Gulshan Branch
500.00
350.00
These are power regulator

for single air-conditioning
units. As a result the airconditioning process is more
efficient and energy saving.
Self Closing Water Tap
1,000.00
528.00
Purchase of 2 units of
energy efficient and
environment friendly Green
cars (Model HONDA
INSIGHT HYBRID 2012)
5,502.00
5,502.00
Various office buildings has

been provided with selfclosing water tap to minimize
water consumption.
These green cars run at 11
KM/litre
whereas
conventional cars run at 6
KM/litre.
With
daily
operational distance of 200
KM; these cars will save 15
litres of fuel per day which is
equivalent of 36Kg of carbon
di-oxide emission to the
environment.
15,002.00
13,905.29
Grand Total
14 | P a g e
New version of energy

saving lights installed in
Head-office building which
saves energy.
Variable Frequency Devices
(VFD) for Central Airconditioning unit would save
energy and help reduce
carbon emission.

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