Our Approach to Corporate Responsibility Standard Chartered has a strong tradition of supporting the communities in which we operate. We understand we have a direct impact on the environment through our operations and indirectly through our business activity, and we are committed to treating our employees and customers fairly.

Making Corporate Responsibility We established a Diversity Council and Reaching customers in effective is not only the right thing to began to refocus our community underdeveloped markets do but is good for business. In2004, programmes to ensure that they achieve To remain competitive, we need to we took the decision to introduce a a measurable, sustainable impact. constantly innovate to meet the needs Corporate Responsibility and of all our customers. We believe we Community Committee, reporting to Serving our customers have an important role to play in the Board and led by our Chairman. We want Standard Chartered to be reaching customers for whom banking renowned for excellent customer services are underdeveloped. The Committee’s task is to ensure that service across Asia, Africa and the our Corporate Responsibility aspirations For example, in Tanzania we have Middle East. align with our business activities. Our developed a strategy to help fund the aim is to develop real benefits for our In 2004, we launched our Outserve credit needy agricultural sector. stakeholders, make our brand stand programme to achieve this goal. We visited over 40 Tanzanian farms in out and help our business grow. Outserve allows us to target areas 2004 to assess their financial needs where we need to improve and measure We adopt a proactive approach to and identified a requirement for $50 our performance in each of our understanding the needs of our million in financing – half in 2004 and markets in a consistent way, compare stakeholders. In 2004 we held the first the rest in 2005. To raise the money, ourselves with competitors and of a seriesof Corporate Responsibility we created an agricultural deposit enhance our processes. forums for analysts and regulators. account for customers who wanted We also want to build strong links with to support the industry rather than In October, the Bank’s Corporate our customers through our community investing in bonds or other products. Responsibility goals were shared with programmes and a number of We are now the leading bank for the chief executives of all our customers are involved in our Seeing agriculture in the country. 56countries and territories. They have is Believing programme. an important leadership role to play in Working with development developing and embedding our Customers trust us to operate according organisations approach and ensuring that our policies to our values. In 2004, we continued We are committed to providing banking are implemented globally. our efforts with initiatives to combat services to development organisations money laundering and to understand This year we also made important and helping them work effectively in our the social and environmental risks of changes to the way we manage our operating territories. our lending activity. health and safety programmes, the social Located in , but working with a and environmental impacts of our lending We believe these activities help to global team of 35, we provide banking decisions and our procurement processes. make our brand stand out from our services for aid agencies, development competitors. Ultimately they underpin institutions and non-governmental our business and will help us to organisations. grow stronger.

Asian Tsunami 2004 ended on a tragic note when the Asian Tsunami struck. It impacted some of the markets Corporate Responsibility Report in which we operate and, whilst our business In May 2005 we will be producing our was largely unaffected, some of our employees first Corporate Responsibility Report were affected, directly or indirectly. We have that will provide more information and committed $5 million as an initial contribution to data on each of the sections covered in the relief efforts. In Indonesia, we are working this part of our Annual Report. with the Indonesian Red Cross (PMI) and other development organisations under the United Nations. In Thailand, we are helping to build a boarding school for 400 children orphaned by the Tsunami. In addition, colleagues around the world have raised over $450,000 to support the victims of the tragedy.

20 Standard Chartered Annual Report and Accounts 2004 One key area of expertise is the efficient We trained approximately 800 personal Living with HIV transfer of funds and related foreign financial consultants in 2004. In 2005 Standard Chartered’s Living with HIV programme aims to spread understanding of HIV and AIDS to exchange needed to tackle humanitarian we will launch a people management our employees, their families and the communities crises. In 2004, Afghanistan has been policy for direct sales employees, in which they live. We want to reduce the stigma attached to HIV and AIDS so that more people a focus for the team, where 90 per cent including enhanced training in risk can learn about prevention and take advantage of our business is with development management and a learning pack to of testing and treatment. On World AIDS Day, organisations. ensure all legal and regulatory Standard Chartered employees around the world participated in many activities designed to create requirements are met consistently. awareness amongst local communities. Employees Fair treatment of customers in Zimbabwe hung awareness posters and set up As financial products and services information desks in every branch. Our We work hard to offer the right become more sophisticated and office arranged a bus, which travelled around busy products to the right people. We have a streets sharing information and handing out red widespread we recognise we have a diverse customer base in many different ribbons, flyers, and balloons. role to play in educating our customers markets and we have an obligation to about better financial planning. sell our products in a responsible A financial literacy scheme we ran in manner. Educating consumers about Malaysia is typical of the work we do financial products and planning is a to educate consumers. key responsibility.

Financial literacy Our Malaysian financial literacy campaign was designed to help one hour within consumers understand new products emails o all like unit trusts and mortgages as well Respond t as general financial planning. We placed a number of articles in three Pledge cards leading newspapers to raise During Outserve week every awareness and ran a series of employee made a customer service seminars and exhibitions. Open to pledge as part of our goal to be customers and non-customers renowned for excellent customer alike, the seminars attracted around service. The cards act as a reminder 1,000 participants. to employees of the importance of Outserving our competition.

Annual Report and Accounts 2004 Standard Chartered 21 Corporate Responsibility

Anti-Money laundering An important part of our approach to tackling money laundering is our Know Your Customer (KYC) scheme. We encourage and train all our employees to develop a real knowledge of their customers to help us serve them better and to sharpen our processes in tackling fraud and money laundering. In 2004 we introduced a number of new training schemes including Consumer Banking Credit Risk management, enhanced KYC training and both e-learning and classroom courses on anti-money laundering.

Sustainable lending steering group that will now report to Property Our social and environmental risk policy the Corporate Responsibility and Currently around 20per cent of our is designed to ensure that these issues Community Committee. The steering buildings are wholly owned and we are are evaluated in all decisions our group makes sure that we manage and moving towards occupying freeholds business managers take. We also need reduce our environmental impacts as rather than leasing properties. This to ensure that our relationship effectively as possible. We want to make move will help us control and manage managers have the tools to assess environmental management part of our the impact of the Bank’s buildings more these risks against local and everyday business life. closely. international standards. Our Global Environmental Management As well as reappraising our property During 2004 we completed the training System (GEMS) enables us to measure portfolios, we are taking a much more of 420 relationship managers to help our environmental impact and understand rigorous approach to drawing up them identify these types of risk. We how efficiently we are using natural specifications for new or refurbished successfully strengthened the role of resources. GEMS is aimed at buildings buildings to ensure we use renewable the Reputational Risk Committee in with more than 25,000 sqft of floor resources and materials, and increase managing this process and raised space, or where more than 200 people energy efficiency. awareness throughout Wholesale work. Our intention is that the system We have created a standard Banking. In 2005, all our employees will will cover 70 per cent of employees specification, called the Global Office be required to undertake training in worldwide by 2006. Workplace Standard, for all new reputational risk. We also adjusted our projects. It is currently being used in procedures during the year to integrate We have had some excellent results in projects in London and and was the Equator Principles – used to assess countries where GEMS has already a central part of the refurbishment of social and environmental risks in big taken root. In India GEMS has now the new headquarters of the Bank in development projects. been introduced at 10 offices, six more than we initially targeted. In Thailand, Kuala Lumpur. Climate change and our Central Services division in Travel the environment Bangkok achieved ISO14001 Air travel is our single biggest direct Tackling climate change is of growing certification by BSI Certification environmental impact and for some importance for governments, companies (Thailand) during 2004. Further details time we have had a rigorous approval and individuals.With operations in will be available in our Corporate system for business travel. 56countries and territories, we Responsibility Report. All air travel is centrally booked and recognise we have an impact on the In 2004 we also launched GEMS-Lite, authorised. Whilst we believe that environment and a duty to reduce this a scaled down version of GEMS, to face-to-face meetings are a vitalpart of impact. help managers and employees in our building a successful business, limiting Three years ago Standard Chartered 500 smaller branches and offices air travel with a view to controlling costs established a Global Environment understand the simple things they can is an appropriate approach to programme, overseen by an environmental do to improve environmental reducing the directenvironmental performance. impact of such meetings.

Reducing resource use In Chennai, India, at our large Global Shared Service Centre, we cut water consumption by 15 per cent, beating our initial target of 10 per cent. Office FTSE4Good paper use was slashed by 30 per We are part of FTSE4Good, the Socially cent – three times more than we set Responsible Investment Index that recognises out to achieve – by encouraging companies achieving high standards of Corporate double-sided printing and recycling Responsibility. FTSE4Good reviews its constituents paper for use in fax machines. every six months and Standard Chartered has been a member since its launch in July 2001.

22 Standard Chartered Annual Report and Accounts 2004 We actively encourage employees to Supplier scheme. This analysis allows Home for handicapped children use video and phone conferencing as an us to build a clearer picture of the Standard Chartered Jordan constructed a playground specifically designed for handicapped children at a alternative,and all of our main buildings companies we buy from, understand cost of $50,000, opened by His Excellency The have excellent facilities for this. more about the way they operate and Minister of Social Development. This was a high profile project. The playground was built on ground reveal any activities they are involved in donated by the Kingdom of Jordan. All our Our supply chain which are out of line with our own employees in Jordan have been involved either in We spend $1 billion each year on standards and practice. this project or in previous activities involving the Beit Al Amal Home. goods and services from around This is not something we can do 20,000 suppliers. We want to be sure immediately in every market. We are that our suppliers match our own concentrating initially on our biggest standards in terms of social and Property supply markets – Hong Kong, environmental standards. When we developed plans for a new head office in , the US and the UK, which Kuala Lumpur, Malaysia this year, we included nine In 2004 we began assessing our together account for some 60 per cent sustainable development initiatives. These included installing energy-efficient and time-controlled suppliers systematically for the first time of our total procurement. As the new lighting and access to natural light, as well as an using the newly created Know Your system takes hold, we will roll it out to open plan office space to reduce use of materials and cut the need for demolition when we move our other markets. out. We also sourced the office furniture from companies with credible environmental policies. The building includes a compactor room with sufficient space for sorting waste for recycling.

Equator Principles We enhanced our long-established social and environmental risk processes by adopting the Equator Principles in 2003. These have been developed following International Finance Corporation guidelines and cover financing projects in industries such as mining and forestry. Under the principles, we will only provide loans to projects that are socially and environmentally responsible.

23 Corporate Responsibility

Tanzanian farm The United Nations Working closely with over 40 farms Global Compact in Tanzania, we created a specialised Standard Chartered adopted the deposit account in 2004, with the United Nations Global Compact in aim of providing much-needed 2001 and actively addresses the financing to the agricultural sector. principles contained in it. We are members of the United Nations Global Compact UK Forum and spoke at the United Nations Global Compact Policy Dialogue on HIV/AIDS.

In our major centres we ask all our making process. Social, ethical and As well as helping at a grass-roots suppliers, however large, to account for environmental considerations form an level, our community programmes offer their practices in tender and proposal important part of the evaluation criteria. a chance for our employees to become documents. involved, create partnership opportunities Working with communities with appropriate development We have a small procurement team, We are proud to have built strong organisations, engage our customers with permanent representatives in the community programmes at Standard and help grow our business. UK, Hong Kong and Singapore Chartered. We know from experience overseen by a Strategic Supply and Our programmes work at three different that we can make a big difference Vendor Management steering group. levels. Our global programmes – Seeing internationally, regionally and locally. is Believing and Living with HIV – aim to In other markets such as India, Africa We operate in many developing tackle important issues with maximum and the US, employees working in countries, and awareness of the human sustainable impact across the world. procurement report to the steering group. and economic impacts of poverty and ill Our regionally funded programmes – Our procurement decisions are highly health has always shaped our the Community Partnerships for Africa, commercial and price is naturally community activity. India and the Middle East and South important. For each tender undertaken We want to use our business skills to Asia – provide a further opportunity for we operate a scoring system to allow us extend the benefits of our various our employees to become involved. to weigh up other issues in the decision programmes to communities, partners Local funding provided for community and customers. activity encourages each of our operations to choose issues of particular local significance.

Seeing is Believing The Greatest Race on Earth, a four city challenge across the we sponsor in Nairobi, Mumbai, Singapore and Hong Kong, is an important fundraising initiative for Seeing is Believing. The gift cards below were designed by children from China whose sight has been restored with the funds raised through Seeing is Believing.

24 AIESEC In Malaysia we worked with the international student exchange organisation, AIESEC, to train 30 HIV/AIDS Champions, undergraduates who went on to educate a further 3,000 students. The international trainees included students from the Netherlands, USA, Germany, the Czech Republic and India. The programme comprised road shows at leading universities, including the Bank’s Living with HIV materials, interactive sessions, exhibitions, video presentations and the Red Ribbon awareness campaign.

Often, these local programmes Seeing is Believing started as a small predominantly an educational project growtobecome regional and even local community project, but we decided rather than a fundraising exercise,and its global programmes, as was the case to make it a global programme and set aims are to spread understanding of the with both Seeing is Believing and ourselves a target of raising $700,000 by disease to our employees, their families Living with HIV. We think the best World Sight Day in October 2003. The and the communities in which they live. community initiatives often emerge at target was enough to restore the sight We want to reduce the stigma attached the grass-roots level. of 28,000 people, or one person for to the disease so that more people can every Standard Chartered employee. learn about prevention and take Our focus in 2004 has been to organise In the end we raised enough to restore advantage of testing and treatment. a more coherent framework for our sight to 56,000 people. programmes so that they deliver In many of our markets we live with the sustainable outcomes for communities We knew we could make the project realities of HIV/AIDS. Africa clearly faces and for our partners. We are also more ambitious, and on World Sight the most acute problems in dealing with seeking to align this activity much more Day in 2004 we announced a new the pandemic, but growthrates in infection closely to our business objectives. target. Working with Sight Savers are also rising steeply in India and China, International and our VISION 2020 two of our most important markets. Seeing is Believing partners, we aim to raise enough funds In 2004 we continued to develop Henry Wanyoike woke up on the last for one million sight restorations, programmes to help educate our day in April 1995 to find he was totally working through the principles laid out employees and support their families blind. But losing his sight did not mean by VISION 2020. The money will go and communities. Anonymous testing losing his spirit. Since that day, Henry towards 12 flagship projects in and treatment is provided to all has established himself as one of Kenya’s ten countries – Bangladesh, India, employees. leading track athletes and is a Kenya, Pakistan, Thailand, China, Paralympic gold medallist. Indonesia, Nigeria, Sri Lanka and We also explored new ways to target Vietnam – and will make a real 15 to 24 year olds, widely seen as the Henry is now a roving ambassador for difference to the lives of many people. most vulnerable to the disease and Seeing is Believing, our global fundraising the most likely to benefit from greater programme to tackle avoidable blindness. This project is overseen by an advisory awareness. During 2005, we will explore 37 million people around the world are board with representation from further ways to reach this important thought to be blind, with the majority Standard Chartered, the World Health age group. living in the developing world. Most of Organisation, Sight Savers International them suffer from avoidable or curable and our VISION 2020 partners. Further information blindness. For further information please see our Living with HIV Corporate Responsibility website at: Living with HIV is an important project www.standardchartered.com/ourbeliefs for Standard Chartered and, given our or e-mail markets, is of real commercial [email protected] significance – the need to maintain a healthy, stable workforce. It is

Seeing is Believing bands Henry Wanyoike is blind. He is also a Paralympic gold medallist and world track champion. He acts as a goodwill ambassador for Standard Chartered’s Seeing is Believing campaign, running in our Greatest Race on Earth marathons. These wristbands symbolise Henry and his sighted running partner, Joseph – a celebration of a dedicated partnership. The proceeds of the sales of the wristband packs help support Seeing is Believing.

Annual Report and Accounts 2004 Standard Chartered 25