For more stories and expert opinions please visit Insights at sc.com. An international authority in corporate and public sector reporting is to lead the Global Sustainability Standards Board (GSSB), the independent body that sets the Global Reporting Initiative (GRI . The recent UN Climate Change Conference helped advance initiatives important to sustainable investing, especially the global energy transition. Any product named herein may not be offered or sold in Hong Kong by means of any document at any time other than to professional investors as defined in the SFO and any rules made under that ordinance. Whilst 90 per cent of SDG financing needs are covered in developed countries, only 60 per cent of the investment needs are addressed in emerging and developing regions, and as low as 10 per cent in Africa. Standard Chartered Bank acted as Sole Sustainability Structuring Advisor and Joint Lead Manager. The opinions contained in this document may change, or differ from the opinions of employees of SCB or SCB (Taiwan). Elsewhere, we are Neutral UK equities amid heightened recession worries, and Underweight Japan equities as we expect a stronger JPY to hurt corporate earnings. Opinions may contain outright buy, sell, hold or other opinions. Explore our work with issuers, from leading multinational corporations to financial institutions, non-profits, and governments. Foreign currency deposits, dual currency investments, structured deposits and other investment products are not insured. 87,583 tonnes of CO2 avoided. Working Group, an evaluation by the Sustainable Finance and We follow the Precautionary Principle, which underpins many international agreements, and expect our clients to do the same:Where there are threats of serious or irreversible damage, lack of full scientific certainty shall not be used as a reason for postponing cost-effective measures to prevent environmental degradation.. Mutual Funds / ETFs Funds labelled by Morningstar as Sustainable Investments. Standard Chartered PLC, the ultimate parent company of Standard Chartered Bank, together with its subsidiaries and affiliates (including each branch or representative office), form the Standard Chartered Group. Standard Chartered Bank is incorporated in England with limited liability by Royal Charter in 1853 Reference Number ZC 18. The Company offers its products and services in the personal, consumer, corporate, institutional and treasury areas. of loans, and the amount of unallocated proceeds. The fast-growing market for sustainability-linked bonds offers opportunities, and we believe issuers would benefit by incorporating even more ambitious performance metrics and goals. London - Standard Chartered PLC ("the Group") has issued a USD 500 million senior unsecured Sustainability Bond, the proceeds of which will be used to finance activities that align to its updated Sustainability Bond Framework, including sustainable infrastructure, renewable energy and healthcare / COVID 19 lending. Sustainability-linked Bonds such as key performance indicator (KPI)-linked or SDG-linked Bonds are structurally linked to the issuers achievement of climate or broader SDG goals, such as through a covenant linking the coupon of a bond. And how do they relate to and differ from social, sustainability and sustainability-linked bonds? This document is confidential and may also be privileged. Weve got the global network, deep expertise and innovative vision to meet all your banking needs and more. The Bank shall not be responsible for any loss or damage suffered by you arising from your decision to use e-mail to communicate with the Bank. Standard Chartered Bank, Dubai International Financial Centre having its offices at Dubai International Financial Centre, Building 1, Gate Precinct, P.O. 2 min read New product provides an innovative way for corporate. None of the information on this page is directed at any investor or category of investors. Meanwhile, a potential deceleration in Fed rate hikes and a weaker USD are expected to support fund flows into Emerging Markets in 2023. Central bank tightening and weakening consumption patterns are likely to pose downside risks to earnings estimates on a 12-month horizon. A 2020 research from data provider Morningstar examining the long-term performance of a sample of sustainable funds shows that the majority of these funds have done better than non-ESG funds over one, three, five and 10 years. The Bank shall not be responsible for any loss or damage arising from your decision to send confidential and/or important information to the Bank via e-mail, as the Bank makes no representations or warranties as to the security or accuracy of any information transmitted via e-mail. The transaction marked the Groups first USD denominated Sustainability Bond, following the EUR denominated Sustainability Bond issued in 2019. If youre looking for a career with purpose and want to work for a bank making a difference, wed love to hear from you. Standard Chartered Bank is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. London - Standard Chartered PLC has issued a USD 500 million senior unsecured Sustainability Bond, the proceeds of which will be used to finance activities that align to its updated. Standard Chartered Bank established a three-level This analysis has not been submitted to, nor received approval from, the United States Securities and Exchange Commission or any other regulatory body. Dealers had roughly 80 million barrels of put options with strikes in the region of $70 per barrel that they had to hedge yesterday, according to Standard Chartered's analysis. Standard Chartered 2023. These bonds can be issued by companies, governments and municipalities, as well as for assets and projects and should follow the Sustainability Bond Guidelines from ICMA, which are aligned with both the GBP and SBP. Year. Weve launched our first Sustainability Bond and it focuses on emerging markets, Our sustainable finance assets grow by over 30 per cent, Why funding mitigation and adaptation must go hand-in-hand, Adaptation and its crucial role in the future of our planet, Third Party Risk Management for Non-Vendors, Our first Sustainability Bond the facts and figures, only 60 per cent of the investment needs are addressed in emerging and developing regions, Moving to a low-carbon future: why banks and companies need to step up, The sustainable finance revolution your questions answered, Why sustainability should be at the forefront of finance. Private banking activities may be carried out internationally by different legal entities and affiliates within the Standard Chartered Group (each an SC Group Entity) according to local regulatory requirements. Standard Chartered Bank Sustainable Finance Impact Report 2021. In fact, applying ESG factors provides yet another risk management lens. SBG Sustainable Bond Framework Second Party Opinion (549.7k) SBG 2019 Environmental, Social and Governance Report (4.3m) SBG 2019 Assurance Statement (67.1k) But if it becomes clear that a client is unable or unwilling to meet our requirements, we will end the relationship subject to contractual obligations. You should not rely on any contents of this document in making any investment decisions. Banking activities may be carried out internationally by different branches, subsidiaries and affiliates within the Standard Chartered Group according to local regulatory requirements. Organisational details 2-1 Standard Chartered PLC is incorporated in England and Wales with limited liability, and is headquartered at 1 Basinghall Avenue, London, UK. Standard Chartered will publish the Sustainable Finance Impact report on an annual basis. Third Party Risk Management for Non-Vendors. Latest articles; Collections; Media. The Performance Standards provide guidance on how to identify risks and impacts, and are designed to help avoid, mitigate, and manage these risks and impacts in a sustainable way. Recently, we have seen a new type of social bond emerge in the form of COVID-related bonds. HSBC is a member of the International Capital Market Association's (ICMA) Executive Committee for the Green Bond Principles, which are a set of . financed, number of SMEs and MFIs financed, number of water DM High Yield (HY) corporate bonds, though, are Underweight as we believe the impact from a recession is not fully priced in. In 2020, issuance of social bonds reached a record $164bn, a figure nearly ten times that of 2019. The need to channel capital to emerging markets is becoming increasingly important given they face a USD2.5tn annual investment gap in meeting the SDGs. The 10-year US government bond yield is expected to rise towards 3.75%-4.0% in Q1 23 as the Fed seeks to maintain tight financial conditions for now. In fact, ICMA is relevant for green, social or sustainability-linked bonds, since ICMA provides guidelines for all forms of such bonds. Recipients in Malaysia should contact Standard Chartered Bank Malaysia Berhad in relation to any matters arising from, or in connection with, this document. Use of Proceeds. on the allocation of proceeds in an allocation report, which will include We work with industry experts like Morningstar and Sustainalytics to determine our sustainable investments range. Learn more about our approach to ESG investing, Enhanced Short Maturity Active ESG Exchange-Traded Fund. Since the first sustainability-linked bond (SLB) was issued in 2019, issuance had reached US$8.2 billion globally last year, according to financial data provider Refinitiv. This document must not be forwarded or otherwise made available to any other person without the express written consent of Standard Chartered Group. Singapore has been pushing further into the sustainability space, making a name for itself with . All Rights Reserved. Standard Chartered PLC today completed a $500 million offering of par-priced 1.214% four-year (non-call three) notes due March 23, 2025, at T+88. All rights reserved. Highlights of Standard Chartered's first Sustainable Finance Impact Report, which is aligned to the UN's Sustainable Development Goals and includes loans to renewable energy, healthcare,. However, the 10-year US yield is likely to edge lower towards 3.25% by end-2023 as a likely decline in US inflation and rising recession risks lead the Fed to pause rate hikes in H1 23 and start cutting rates by end-2023. AJI614). The Jersey Branch of Standard Chartered Bank is regulated by the Jersey Financial Services Commission. Sustainability Bonds are fixed-income financial instruments ( bonds) where the proceeds will be exclusively used to finance or re-finance a combination of Green and Social Projects and which are aligned with the four core components of the International Capital Market Association (ICMA) Green Bonds Principles and Social Bonds principles. Trafigura needed a risk management solution that could enable it to manage its financial exposure while delivering on its ESG objectives. Standard Chartered Private Bank is the private banking division of Standard Chartered. Further information is available in PIMCOs Environmental, Social and Governance (ESG) Investment Policy Statement. These bonds are devoted to financing new and existing projects or activities with positive environmental impacts. Within Asia ex-Japan, we are Overweight China equities given easing mobility restrictions and favourable fiscal and monetary policies. The bonds have a 1.125% coupon and were sold at 99.709, or a yield of 1.224%. How to protect yourself from inflation during a recession? Standard Chartered PLC is listed on the London and Hong Kong Stock Exchanges. Turnover of debt securities and sukuk remained robust at RM1.87 trillion as of end-2021, with average daily secondary bond trading volume of RM3.8 billion. Methane emissions from oil and gas production have an outsized contribution to global warming that can be reduced in cost-effective ways, helping mitigate a significant transition risk. Standard Chartered 2023. If youre looking for a career with purpose and want to work for a bank making a difference, wed love to hear from you. Download. IFCs Complaints Ombudsman or RSPOs complaints panel). The facility is the bank's largest commitment of its kind and is jointly extended by its branches in Taiwan, Hong Kong, and Singapore. These bonds can play a key role in encouraging companies to make sustainability commitments at the corporate level, particularly through aligning to the UN SDGs or Paris Agreement. Social and sustainability bonds smashed their previous records for amounts raised, while green bonds hit new highs and sustainable companies issued record levels of equity. The Client ESRA is reviewed each year to capture any changes to the clients risk profile. Infographic: Our Sustainability Bond the facts and figures. Our model, diversified multi-asset income (MAI) strategy, is offering a yield of over 6%, levels last seen before the Global Financial Crisis. We believe in working with our clients to raise their performance in relation to E&S issues. The final order book reached $1.5bn from 39 accounts at reoffer, including $895m from the leads. As with green or social bonds, companies will report annually on the performance indicator. Standard Chartered Bank is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. His appointment has received approval from the Bank of Ghana. Sustainability-linked bonds do not finance particular projects but rather finance the general functioning of an issuer that has explicit sustainability targets that are linked to the financing conditions of the bond. Standard Chartered EUR1bn 1.2% 10.5NC5.5 tier two / USD500m 1.21% Mar 26 green senior Tyler Davies March 18, 2021 06:00 PM Rating: A2/BBB+/A Tranche 1: 1bn of tier two capital Maturity: 23. The bank's support for Adaro had been heavily criticised and prompted a shareholder resolution last year from campaign group Market Forces. All our relationship managers and credit officers get training to help them assess environmental and social risk according to our criteria, as well as access toa suite of online resources. Outlook and strategies are subject to change without notice. First, its important to distinguish between use of proceeds bonds and sustainability-linked bonds. To unsubscribe from receiving further updates, please send an email to clientcare.ng@sc.com requesting to be removed from our mailing list. Consumption patterns are likely to pose downside risks to earnings estimates on a 12-month horizon stories and expert please! Any investor or category of investors at reoffer, including $ 895m from the opinions contained this... A figure nearly ten times that of 2019 risks to earnings estimates on a 12-month horizon having its at... Denominated Sustainability Bond issued in 2019 important to distinguish between use of proceeds bonds and sustainability-linked bonds of the on... Markets is becoming increasingly important given they face a USD2.5tn annual investment in. All forms of such bonds the Client ESRA is reviewed each year to capture any changes to the clients profile... 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