Sustainable finance

Data and trends

Our goals and achievements in 2008
Our goals for 2008 Status What we have done Priorities in 2009
Roll out training on sector guidelines and implementation of position statements tick
Completed
Sustainable lending forms part of our mandatory credit curriculum for all credit officers and relationship managers. The statements are now available on the Bank’s Group Sustainability website
  • Engage external stakeholders on the implementation of position statements and practitioners’ guides
  • Embed the Climate Principles’ commitments into business strategy and activities
  • Implement our strategy on renewable energy and environmental financing
  • Reinforce our thought leadership on environment and climate change among senior management in the Bank’s key markets through in-country briefings
  • Help build capacity in emerging markets banks on sustainable risk management
Integrate climate change risk review findings into relevant business processes Ongoing
Ongoing
Relationship managers are required to discuss climate change best practices with clients, encouraging them to monitor, disclose and reduce greenhouse gas emissions in line with the Bank’s climate change position statement
Roll out the upgraded e-learning programme on managing social, environmental and ethical risks tick
Completed
A revised Sustainable lending e-learning module and a new module specifically on the use of position statements and practitioners’ guides were introduced as mandatory training in 2008 for relationship managers and credit officers
Launch new environment-oriented consumer banking products and campaigns Ongoing
Ongoing
Campaigns and measures to encourage customers to switch to electronic banking and bank statements expanded to other markets from the pilot in Malaysia in 2007
Commercialise the Wholesale Banking Sustainable Business Council research Ongoing
Ongoing
A cornerstone business strategy on renewable energy and environmental finance was developed in 2008, including opportunities associated with energy efficiency, waste management and water resources. To be implemented in 2009
Social and environmental risks in lending1 2005 2006 2007 2008
Number of people trained in Sustainable lending 2,995 1,500 2,122 2,011
Graduates trained in Sustainable lending 200 280 245 315
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Products and services 2005 2006 2007 2008 *
Investment in renewables $300m $800m $1,500m $1,856m
Number of renewable energy deals closed 4 8 8 2
*
$3.2bn renewable energy and clean technology financed under our 2007 Clinton Global Initiative pledge.
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Equator Principles 2005 2006 2007 2008
Category A transaction approved 5 5 8 5
Category B transaction approved 10 12 22 19
Category C transaction approved 3 3 4 4
1
Our revised Sustainable Lending training now integrates Equator Principles training
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Breakdown of 28 Equator Principle projects approved in 2008 by risk category Number approved Percentage of projects approved Percentage of Bank’s share of project value
Category A 5 18% 5.5%
Category B 19 68% 3.5%
Category C 4 14% 7.6%
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Breakdown of Equator Principle projects approved in 2008 by geographic region Middle East Asia Africa Americas and UK/Europe
Category A 1 2 1 1
Category B 7 7 1 4
Category C 2 2

Geographic location of projects

Geographic location of projects

Sector breakdown of projects

Sector breakdown of projects

Equator Principles categories

Category A: High Risk

Projects with potential significant adverse social or environmental impacts that are diverse, irreversible or unprecedented

Category B: Medium Risk

Projects with potential limited adverse social and environmental impacts that are few in number, generally site specific, largely reversible and readily addressed through mitigation measures

Category C: Low Risk

Projects with minimal or no social or environmental impacts

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Breakdown of Equator Principle projects approved by sector in 2008 Percentage
of projects
approved
Project value ($m) Bank’s share of
project value
($m)
Oil & Gas 31% 14,436 604
Chemicals 4% 5,519 79
Infrastructure 11% 1,386 109
Power 25% 6,653 297
Mining 7% 1,160 39
Renewables 4% 156 59
Biofuels 0%
Other 18% 3,709 246
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Loans and advances ($m) to customers by each principal category of borrowers’ business or sector 2005 2006 2007 2008
Agriculture, forestry and fishing 646 793 1601 1,404
Construction 713 1,165 1,421 2,325
Commerce 7,077 9,721 12,885 17,351
Electricity, gas and water 1,527 1,708 2,779 2,686
Financing, insurance and
business services
8,886 12,452 14,629 25,563
Loans to governments 4,874 6,997 7,809 4,682
Mining and quarrying 1,128 2,495 3,454 5,820
Manufacturing 11,343 17,368 19,905 24,859
Commercial real estate 3,480 3,366 4,298 6,357
Transport, storage and communication 3,390 4,327 4,351 5,785
Other 1,293 1,961 2,123 1,667
Wholesale Banking (Total) 44,392 62,353 75,255 98,499
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