Yulanda Chung, Standard Chartered Bank
Sustainability and energy are important considerations in the SCB’s financing decisions, which are more widely governed by the Equator Principles. The procedures used are based on the lending process and E&S risk management across: preliminary screening; due diligence; approval; and monitoring (with country and governance risk overlays). In respect to climate risk assessment, SCB consider how geographies, financial products and sectors intersect, assessing: regulatory risks; reputational risks (to bank and client) and physical risk. These enable a matrix based assessment to be used in respect to climate change risk, across these four areas, on a five year, ten year and greater than 15 year timescale – using a low, medium and high risk analysis. Examples and descriptions are provided for three examples within China: real estate; power generation; and the auto industry. This allows financing decisions to consider climate change risk and energy intensity within individual investments and across SCB’s portfolios.