Standard Chartered has been blasted by environmental campaigning organizations for its role in financing a Vietnam coal power project despite holding the leadership position of the Equator Principles, a social and environmental standard for financing large scale developments.
Standard Chartered remains involved in the proposed Vung Ang 2 coal power plant in Vietnam, which has sparked local concerns about damage to the ocean, air, fisheries and farms after previous cases of similar industrial developments nearby proved to be devastating. «Standard Chartered has been a repeat offender of the Equator Principles in recent years,» said Julien Vincent, executive director of Market Forces.
«The whole point of the Equator Principles would be undermined if it's lead bank pushes ahead with coal deals which so clearly flout the rules. If this appointment is to have any credibility, we should expect to hear Standard Chartered confirm its withdrawal from Vung Ang 2 immediately,» he added.
Facing Multiple Social and Environmental Crises
According to the Equator Principles, Vung Ang 2 would be classified as a «category A» project which has «potential significant adverse environmental and social risks [with] impacts that is diverse, irreversible or unprecedented.»
A release specifically noted that Standard Chartered compromised the principles by failing to explore alternatives to Vung Ang 2; disclose information key for communities to evaluate impact; and ensure that such communities are informed and engaged.
Adopting New Principles
«In 2019, with the world facing multiple social and environmental crises, we expect a serious commitment from financial institutions to thoroughly change the way they do business, by adopting new Principles that will no longer allow the financing of projects that contribute to such crises,» said Johan Frijns, executive director of Banktrack.
«Putting Standard Chartered as a financier of Vietnamese coal in charge of the Equator Principles would be like putting the fox in charge of the hen house,» Frijns added. A spokesperson for Standard Chartered could not be reached for comment.
