SMBC Bank International plc
Climate Impact & Sustainability Data (2024)
Reporting Period: 2024
Environmental Metrics
Total Carbon Emissions:1,000 gross tonnes of CO2 equivalent (tCO2e)
Total Energy Consumption:7,744 MWh
Carbon Intensity:0.51 tCO2e/FTE
ESG Focus Areas
- Environmental Sustainability
- Diversity, Equality and Inclusion
- Human Rights
- Reducing Poverty and Inequality
Environmental Achievements
- Reduced total GHG emissions in the UK by 39% to 0.51 tCO2e/FTE compared to the previous year.
- Decreased energy consumption by 20% compared to the previous reporting period.
- Reduced location-based Scope 1 and 2 emissions by 34%.
Social Achievements
- Achieved Women in Finance Charter target of 30% female representation at Director and above roles.
- Set a new target of 30% female representation at Executive Director and above by 2027.
- Increased participation in volunteering resulting in a three-fold increase in donated hours.
- 60% female and 70% minority ethnic intake into the Corporate and Investment Banking Programme.
Governance Achievements
- Established a Sustainability Risk Management Committee (SRMC).
- Implemented a new framework regarding the approach to Artificial Intelligence.
- Enhanced the governance over the way sustainability risk is assessed.
Climate Goals & Targets
Long-term Goals:
- SMBC Group’s net zero emissions in its own operations by 2030 and in its overall loan and investment portfolio by 2050.
Medium-term Goals:
- Achieve 30% female representation at Executive Director and above by 2027.
- Reduce the absolute amount of financed emissions from its oil and gas portfolio by between 12% and 29% by 2030.
- Reduce the emissions intensity of its power portfolio to between 138 and 195 gCO2e/kWH by 2030.
Short-term Goals:
- Increase Board’s gender diversity target to 33% female Directors by 1 January 2025.
Environmental Challenges
- Continued uncertain macroeconomic and geopolitical environment.
- Global growth remained sluggish.
- Core inflation levels remained stubborn.
- Heightened volatility in the banking sector.
- Russia-Ukraine and Israel-Gaza conflicts.
- Transition risk for high emitting sectors.
Mitigation Strategies
- Maintained a strong balance sheet, stable credit profile, and significant liquidity reserves.
- Robust risk management practices.
- Enhanced the governance over the way sustainability risk is assessed.
- Developed and embedded sustainability risk management across the three lines of defence.
- Implemented new guidelines for business originated in the power and oil and gas sectors.
- Increased engagement with clients with insufficient transition plans.
Supply Chain Management
Responsible Procurement
- Rigorous pre-contracting due diligence process
- Incorporation of operational resilience regulatory requirements
Climate-Related Risks & Opportunities
Physical Risks
- Natural disasters impacting credit costs and customer performance
Transition Risks
- Decline in revenue or impairment of existing assets resulting from a decline in revenue or impairment of existing assets
Opportunities
- Financing significant investment needed into new energies, renewable energy and power infrastructure
Reporting Standards
Frameworks Used: TCFD
Third-party Assurance: KPMG LLP
Sustainable Products & Innovation
- Green loans, sustainability-linked loans, social loans, sustainable supply chain finance, green deposits
Awards & Recognition
- Best social development deal at the Project Finance Awards