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	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	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	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	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	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

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