Bangkok--31 Aug--Standard Chartered
Standard Chartered recently signed up for “Soft Commodities Compact” to support sustainable agricultural practices, achieve zero net deforestation and ensure forest loss should be offset with equivalent forest restoration by 2020.
The ‘Soft Commodities Compact’ is part of the University of Cambridge’s Banking Environment Initiative (BEI). The compact commits members of the banking industry to help achieve zero net deforestation by working with clients and their supply chains. The compact followed a similar agreement, where in 2010, the Consumer Goods Forum (CGF)'s Board of Directors committed their 400 members, representing a combined procurement power of over $3 trillion, to achieving zero net deforestation in their supply chains by 2020.
Under ‘Soft Commodities Compact,’ the Bank is working with its clients to support sustainable agriculture practices to minimise impacts on natural forest from agriculture. During 1980 – 2000, palm oil and soy beans plantation caused over 80 per cent of tropical agricultural expansion.
Standard Chartered is the tenth bank to join; announced recently as part of a meeting with His Royal Highness the Prince of Wales and other senior business leaders and clients.
Since 2009, business teams have worked with the Environmental and Social Risk Management (ESRM) team to ensure that our clients were members of relevant industry bodies, such as the Roundtable on Sustainable Palm Oil, which establish the basic requirements to achieve zero net deforestation by 2020.
The signing of the Compact was possible because of this long-term work to ensure clients are prepared; it represents an additional sign of our commitment to environmental and social risk management, and will support further client engagement. The Bank is also looking at product innovation to support the Compact, including the BEI’s Sustainable Shipment Letter of Credit, nominated for an FT / IFC Transformational Business Award.