Standard Chartered Bank accused of human rights and environmental responsibility failures

Four non-profit organisations, The Philippine Movement for Climate Justice, Inclusive Development International, Recourse, and BankTrack, have filed a formal complaint against Standard Chartered Bank with the UK National Contact Point (NCP) for Responsible Business Conduct.

The complaint alleges that Standard Chartered violated the OECD Guidelines for Multinational Enterprises, particularly those concerning human rights and environmental responsibility, by financing four coal-fired power plants in the Philippines.

• OECD Guidelines for Multinational Enterprises = https://www.oecd.org/investment/mne/

Key issues

• On February 26, 2024, the Philippine Movement for Climate Justice, Inclusive Development International, Recourse, and BankTrack filed a complaint on behalf of local Filipino communities against Standard Chartered plc to the UK NCP. The complainants argued that in financing four coal-fired power plants in the Philippines, Standard Chartered breached Chapters II (General Policies) and IV (Human Rights) of the 2011 version of the OECD Guidelines.
• The complaint alleges failure to conduct adequate due diligence on human rights harms and failure to cooperate in the remediation of harms that arose as a result of that failed due diligence.
• In 2017, the affected communities filed a complaint to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism of the International Finance Corporation (IFC), which led to a finding that IFC violated its Policy on Environmental and Social Sustainability through these and other coal plants in the Philippines.
• The CAO concluded that the coal plants likely caused a range of “significant” environmental and social harms, and the IFC is now implementing a “management action plan.”
• As one of the lenders, Standard Chartered has not cooperated in the remediation process; thus, one objective of the NCP complaint is to encourage practical cooperation.

Key Allegations:

• Failure to conduct effective human rights due diligence before financing the coal plants.
• Contribution to significant environmental and social harms, including:
• Respiratory and skin diseases due to pollution.
• Forced evictions and land dispossession.
• Loss of livelihoods and impoverishment.
• Intimidation and violence against community activists.
• Non-cooperation in remediation efforts, despite being made aware of the harms.

Background:

• The complaint builds on a 2017 investigation by the Compliance Advisor Ombudsman (CAO) of the International Finance Corporation (IFC), which found that the coal plants likely caused serious environmental and social damage.
• Standard Chartered is accused of ignoring repeated requests to contribute to remediation, despite its own human rights policy stating it would cooperate in such processes.
• The bank has a financial relationship with San Miguel Corporation, one of the developers of the coal plants, and has underwritten multiple bond issuances for the company.

What the Complainants Seek:

• Medical assistance, livelihood support, and compensation for affected communities.
• Stronger due diligence and remediation policies from Standard Chartered.
• Use of the bank’s leverage to mitigate ongoing pollution and harms.

References

[1] The Philippine Movement for Climate Justice et al. vs. Standard ...https://climatecasechart.com/non-us-case/the-philippine-movement-for-climate-justice-et-al-vs-standard-chartered/

[2] Standard Chartered coal plant funding complaint - Recourse https://re-course.org/newsupdates/csos-file-complaint-over-standard-chartered-coal-plant-funding-in-the-philippines/

[3] UK’s Standard Chartered assailed for financing Philippines coal boom https://www.inclusivedevelopment.net/coal/uks-standard-chartered-assailed-for-financing-philippines-coal-boom/