With a few minor quibbles, Standard Chartered’s report reflects its sound business performance

This is a confident and measured report, borne of the fact that Standard Chartered has emerged from the financial crisis rather less scathed than most other large international banks. Although this comfortable position has partly been due to its greater focus on doing business in Asia, Africa and the Middle East than the frazzled wild west, it has also owed much to the greater degree of caution that Standard Chartered has exercised over the past decade or so, and to its relatively long-termist approach.

This means the report can quote some impressive figures. Since the start of the financial crisis in 2007, for instance, Standard Chartered has increased lending by more than 75%, to $267bn, boosted mortgage lending by 40% to $69.5bn, and raised the amount of credit provided to small and medium enterprises by 60% to $19.2bn.

While other banks bluster and bristle, Standard Chartered can quietly make the case that it is doing plenty to meet its three key priorities: to “contribute to the real economy”, to “promote sustainable finance” and to “lead the way in communities”. It does so without any hint of smugness, and in a matter of fact, unemotional tone that befits the times.

Web-based, but also available to be cut in many ways in pdf format, the review is well ordered. As usual with online reports, its many layered navigation can leave the enthusiastic reader wondering where they have arrived and how they can get back. But it is always easy to return to familiar territory and start again, even if you are not sure quite where you have been.

Comprehensive approach

In this case, the many layers are an indication of impressive comprehensiveness rather than over-design. Liberally sprinkled throughout with interesting videos and case studies, the review covers all the bases, mixing data with sparsely written commentary that calmly states the bank’s case without trying to over-inflate the importance of its achievements. Although the bank has won many awards, for example, such information is sensibly tucked away in a small section for anyone who is interested, rather than trumpeted throughout the text.

The overall effect is to paint a picture of a bank that is getting on with the low-key business of lending to ordinary people and small businesses and playing its part in nurturing the economic life of emerging economies. At the same time it is building on a longstanding commitment to microfinance and financial inclusion, as well as an impressive staff volunteering programme based on offering each employee three days of paid leave annually to do good work.

What about the future?

It’s an impressive report, then, with a relatively positive story to tell. But for a bank that claims to take a long-term view of its operations, the review spends surprisingly little of its time looking forward.  There are occasional “what next for 2012” items in some sections – on responsible selling and marketing, for instance. But these just disappear in other sections, raising the question of whether there is nothing more to be done on these topics, or whether there has been some kind of oversight. The targets that are provided usually hide behind vague wording about continued improvement over an unspecified timeframe, and there is little or nothing on where Standard Chartered sees itself in five, 10 or 15 years’ time.

 A similar haphazardness shows itself in other areas. Key performance indicators suddenly appear in the microfinance section, but are not present in others, such as “support for SMEs” or “agrifinance”. Why?

A comprehensive section on stakeholder engagement that lists many interactions with various groups, including NGOs, industry bodies, and employees, lets itself down by failing to provide any detail on what issues were thrown up by these sessions, and how the bank proposes to tackle them.

There are also two material issues that receive scant coverage. Should a bank whose top eight executives received more than £50m between them in pay and bonuses during 2011 stay silent on senior executive pay? And would it not be wise to produce some words on Standard Chartered’s position on responsible payment of tax?

These are blemishes on an otherwise sound review, and should be remedied next year. A bank in such a relatively comfortable place should have the confidence to tackle them.

Peter Mason is a client director at sustainability strategy and communications consultancy Context.

Snapshot

Follows GRI?                         No, but “informed” by GRI and provides a GRI index.

Assured?                     No

Materiality analysis?   No

Goals?                         Some, but not many.

Targets?                       Some, but sporadic.

Stakeholder input?      No

Seeks feedback?         Yes

Key strengths?            Thorough, clear. Sensible tone.

Chief weakness?         Not forward-looking enough.

Pleasant surprise?        Highlights review available in eight languages.