Slide 1: Seizing the sustainability opportunity
Seizing the sustainability opportunity Investor Event 29 November 2023
Slide 2: Contents
CONFIDENTIAL Contents Bill Winters, Group Chief Executive • Opening and closing remarks 3 and 33 Marisa Drew, Group Chief Sustainability Officer • Progress and execution 7 Ben Daly, Global Head, Transition Finance • Transition Finance 18 Alper Kilic, Global Head, Project and Export Finance • Sustain
Slide 3: Opening remarks
Opening remarks Bill Winters Group Chief Executive
Slide 4: Key messages
CONFIDENTIAL Key messages Climate change is a We sit at the Sustainability is central global threat…many of intersection of capital to the Group’s strategy, the Group’s markets providers and the both as an imperative face the biggest risk markets who need it and a commercial most opportunity 4
Slide 5: Long-term outlook supported by emerging global themes
CONFIDENTIAL Long-term outlook supported by emerging global themes • Just Energy Transition Partnership; supporting a responsible transition away from coal-fuelled power Industry and Public / • World Bank led Private Sector Investment Lab; focusing on blended finance Private cooperation • Partnershi
Slide 6: Our early commitments are driving momentum in our ambitions
CONFIDENTIAL Our early commitments are driving momentum in our ambitions Key milestones Pre-2019 to 2020 2021 2022 to date • Created a Sustainable Finance team • Sustainability recognised as a strategic priority • Climate advisory vote at 2022 AGM • Phase out coal commitment by 2030 • Targeting a $1
Slide 7: Progress and execution
Progress and execution Marisa Drew Group Chief Sustainability Officer
Slide 8: Key messages
CONFIDENTIAL Key messages We are uniquely We are investing in We are applying an positioned to capitalise people, systems and innovative mindset to on the sustainability infrastructure to scale unlock opportunities in opportunity in our Sustainable Finance emergent sustainability markets and contrib
Slide 9: Multi-disciplinary and differentiated CSO organisation
CONFIDENTIAL Multi-disciplinary and differentiated CSO organisation Transition finance and ESG advisory Carbon accounting and net zero transition advice Environmental and social risk management Developing deep client New economy sector expertise engagement Carbon credit sourcing and trading Climate
Slide 10: Our sustainability agenda is focused on four key priorities
CONFIDENTIAL Our sustainability agenda is focused on four key priorities 1 Deliver on our net zero commitments 2 Scale Sustainable Finance Sustainability agenda Demonstrate leadership through 3 innovation hubs 4 Embed sustainability across the Group 10 Footnotes on page 42-43; Glossary on page 44
Slide 11: We are on track on our net zero commitments
CONFIDENTIAL 1 We are on track on our net zero commitments… Net zero pathway targets announced and other highlights On track to announce upcoming net zero pathway deliverables • Greenhouse gas emissions baseline published By Feb’24 o Scope 3 financed emissions represent 96%1 of our footprint • Annou
Slide 12: Making investments to operationalise net zero: ESG Data Infrastructure
CONFIDENTIAL 1 …and making investments to operationalise net zero Significant investment in data architecture driving our pan-bank agenda Sample tools enabling decision-making Net zero quarterly report 1. Prospecting and client onboarding 2. Credit decisioning ESG data Frontline Client Capital Fact-
Slide 13: Our ambition is to scale sustainable finance
CONFIDENTIAL 2 Our ambition is to scale sustainable finance… Exploring the client journey – our “flywheel” Climate Risk Assessments (CRAs) Sustainable Finance • Enables understanding of our clients’ climate • Supports clients on their sustainability journeys risks and readiness to transition Climate
Slide 14: We are seeing strong momentum in our results
CONFIDENTIAL 2 …and we are seeing strong momentum in our results Sustainable Finance mobilised1 ($bn) Sustainable Finance income3 ($m) • On track towards 2030 target • Strong performance across all regions in 1H’23; China up over 50% • Through the cycle SF Income RoRWA at, or better than CCIB portfo
Slide 15: We are investing in four innovation hubs for future growth
CONFIDENTIAL 3 We are investing in four innovation hubs for future growth 1. Carbon markets 2. Adaptation finance • Invited by MAS to lead early retirement of coal carbon credit • First adaptation finance transaction completed in 2023 initiative • Developing reference guide for Adaptation Finance wi
Slide 16: We are embedding sustainability across the Group
CONFIDENTIAL 43 We are embedding sustainability across the Group Extensive shelf of 42 products spanning across segments (slide 36 for details) CCIB CPBB Treasury Lending Financial Markets Transaction Banking Personal and Business Banking Wealth Management Treasury • Green & Social Loans • Sustainab
Slide 17: We are developing deep client relationships by scaling our offerings
CONFIDENTIAL We are developing deep client relationships by scaling our offerings Transition Finance Sustainable Infrastructure Scale Sustainable Sustainable Loans Finance Sustainable Trade and Working Capital Differentiated offering Core offering 17 Footnotes on page 42-43; Glossary on page 44
Slide 18: Transition Finance
Transition Finance Ben Daly Global Head, Transition Finance
Slide 19: Positioning to capture wallet associated with the energy transition
CONFIDENTIAL Positioning to capture wallet associated with the energy transition Setting the scene Momentum building • Published net zero targets for high carbon sectors New wins from traditional natural resources client; across renewable power advisory, battery storage, anti-flaring and low carbon
Slide 20: Key takeaways
CONFIDENTIAL 2 Key takeaways Large industrial type … and projects are We are building a clients have identified continuing to develop in differentiated the transition as an the low carbon space proposition to capture opportunity… the growing opportunities from the transition 20
Slide 21: Sustainable infrastructure
Sustainable infrastructure Alper Kilic Global Head, Project and Export Finance
Slide 22: The world is shifting to sustainable infrastructure
CONFIDENTIAL The world is shifting to sustainable infrastructure Setting the scene We are well-positioned to win • Global infrastructure investments ~$1.5 to 1.7tn in 2020-20221 Uniquely positioned in developed and emerging markets o Majority flowing to the US and Europe; about a quarter to rest of
Slide 23: Broad-based impact across our network
CONFIDENTIAL Broad-based impact across our network ~70% of our sustainable infrastructure transactions are in emerging markets since 2020 France Taiwan Renewables portfolio 2 offshore wind projects1 financing7 Mandated Lead Arranger Mandated Lead Arranger and Hedging Bank and Green Loan Coordinator
Slide 24: Key takeaways
CONFIDENTIAL Key takeaways The world is shifting to Investment gap Track record as a sustainable between developed leading project finance infrastructure – and and emerging markets house combined with there is no turning back expected to narrow world leading blended with governments finance capabili
Slide 25: Sustainable loans
Sustainable loans Surya Bagchi Global Head, Financing Solutions
Slide 26: Opportunity for sustainable loans is compelling in our markets
CONFIDENTIAL Opportunity for sustainable loans is compelling in our markets Setting the scene We are well-positioned to win • Sustainable loans market has grown exponentially to 20221 Leader in AAME markets; SLLs, green UOPs, social loans and pure play2 o Increasing volumes in AAME • Lower issuance
Slide 27: Growing impact in Asia, Africa and the Middle East
CONFIDENTIAL Growing impact in Asia, Africa and the Middle East Growth across our markets Select transactions executed • Executed over 300 sustainable loan transactions since 2021 Location Client Overview o … with AAME1 now >50% of total transactions; up from ~30% in 2021 • Safaricom is the largest
Slide 28: Key takeaways
CONFIDENTIAL Key takeaways Our footprint provides Our market leading Uniquely positioned to opportunities for high green and sustainable leverage cross-border quality and impactful framework provides expertise to deliver growth across the full strong guardrails for our differentiated advice financin
Slide 29: Sustainable trade and working capital
Sustainable trade and working capital Pradeep Nair Global Head, Structured Solutions & Development
Slide 30: Trade finance underpins decarbonisation of supply chains
CONFIDENTIAL Trade finance underpins decarbonisation of supply chains Setting the scene We are well-positioned to win • International trade is ~56% of global GDP1 Leading international trade bank; heritage of over 160 years; investing in • Our whitepaper “Carbon Dated” focused on supply chains of MN
Slide 31: Strong growth across products and impact over key industries
CONFIDENTIAL Strong growth across products and impact over key industries Trade and cash fastest growing Sustainable Finance products Select transactions executed Sustainable trade income Sustainable cash income Location Client Overview up 201% up 462% 1H’23 YoY 1H’23 YoY • Polestar procures EVs fro
Slide 32: Key takeaways
CONFIDENTIAL Key takeaways Trade is a massive Our sustainable trade We continue to contributor to global finance proposition is innovate new solutions GDP; presents a huge market leading and is and partnerships to potential for supply underpinned by a support our clients’ chain activities to growing
Slide 33: Closing remarks
Closing remarks Bill Winters Group Chief Executive
Slide 34: Key takeaways
CONFIDENTIAL Key takeaways Climate change is a We sit at the Sustainability is central global threat…many of intersection of capital to the Group’s strategy, the Group’s markets providers and the both as an imperative face the biggest risk markets who need it and a commercial most opportunity 34
Slide 35: Appendix
CONFIDENTIAL Appendix • Sustainable Finance product suites; ESG ratings • Speaker bios • Notes, abbreviated terms and important notice 35
Slide 36: Extensive shelf of 42 sustainable finance products
CONFIDENTIAL Extensive shelf of 42 sustainable finance products CCIB CPBB Group Treasury Lending Financial Markets Transaction Banking Personal and Wealth Business Banking Management 1. Green and Social 1. Green/Social/Sustainability Bonds 14. Sustainable Sustainable Trade Loans Deposits (Su-D) - fo
Slide 37: Our ESG ratings
CONFIDENTIAL Our ESG ratings 2023 Scale 2022 Trend Rating type (latest rating) (best to worst) MSCI1 MSCI ESG AA AA ↔ Ratings AAA to CCC Sustainalytics Sustainalytics2 24.8 25.9 ↑ ESG Risk Rating 0 to 100 CDP Climate CDP3 A- B ↑ Change A to D- Questionnaire 37 Footnotes on page 42-43; Glossary on pa
Slide 38: Appendix
CONFIDENTIAL Appendix • Sustainable Finance product suites; ESG ratings • Speaker bios • Notes, abbreviated terms and important notice 38
Slide 39: Speaker biographies
CONFIDENTIAL Speaker biographies Marisa was appointed as Chief Sustainability Officer for Standard Chartered Bank on 1 July 2022. During her 30-year career, she covered several appointments. She worked from 1992 in Merrill Lynch until she joined Credit Suisse in 2003 in the investment banking area u
Slide 40: Speaker biographies
CONFIDENTIAL Speaker biographies Alper is the Global Head of Project and Export Finance at Standard Chartered Bank. Alper has 26 years of banking experience. He joined the bank in 2008 and prior to his current role, he held various leadership roles including the Regional Head of Corporate Finance, E
Slide 41: Appendix
CONFIDENTIAL Appendix • Sustainable Finance product suites; ESG ratings • Speaker bios • Notes, abbreviated terms and important notice 41
Slide 42: Notes
CONFIDENTIAL Notes These notes refer to the metrics and defined terms on the following pages Page 1. Explanatory note or definition Page Explanatory note or definition 4 1. Just 60 per cent of the financing needed to achieve the Sustainable Development 22 1. Source: IJGlobal. Infrastructure Finance
Slide 43: Notes
CONFIDENTIAL Notes These notes refer to the metrics and defined terms on the following pages Page Explanatory note or definition Page Explanatory note or definition 26 1. Source: Refinitiv LPC Green Lending Review 37 1. MSCI updates its ESG assessment of issuers once a year. Table captures the lates
Slide 44: Selected technical and abbreviated terms
CONFIDENTIAL Selected technical and abbreviated terms Term Definition Term Definition AAME Asian, African and Middle Eastern IRA Inflation Reduction Act AGM Annual General Meeting JETP Just Energy Transition Partnership AI Artificial Intelligence KES Kenyan Shillings ASEAN Association of Southeast A
Slide 45: Important notice
CONFIDENTIAL Important notice Forward-looking statements The information included in this document may contain “forward-looking statements” based upon current expectations or beliefs as well as statements formulated with assumptions about future events. Forward-looking statements including without l