Standard Bank Group Ltd

The Bank's Board of Directors is ultimately responsible for guiding the Bank's strategy, overseeing progress against strategic priorities and value drivers, including the delivery of positive sustainability and SEE impact. The responsibilities in respect of ESG risk management are delegated to relevant board subcommittees i.e. Board Credit Committee (BCC) and Board Risk Committee (BRC). [...] The Country Leadership Council (CLC) is constituted by the Chief Executive (who has a delegated responsibility from the Board of Directors to run the business), ensures that appropriate governance structures, policies, processes are in place to achieve the SEE strategy. CLC monitors adherence to policies and standards, including code of ethics and conduct, and Environmental and Social (E&S) policy. CLC drives business alignment with ESG risk management and ensures business ownership and accountability. [...] Reporting to the Country Leadership Council, this committee is chaired by the Chief Risk Officer and the Head, Legal & Governance. The committee has defined structures and accountability for the oversight, governance and execution of the sustainability strategy include governance and social issues (environmental, ethics, conduct human rights, labour practices, health and safety, financial inclusion, etc) and the Bank's impact on communities. Environmental issues include impacts on natural resources, biodiversity, and climate related risks and opportunities. Our "Three lines of Defence" Model sets out the responsibilities of individuals and teams to ensure that risks are adequately considered and managed.

#### Governance of stakeholder engagements\n\nWe follow the SBG stakeholder **engagement principles. We are** committed to:\n\n- Constructive engagement, listening\n\n to concerns and suggestions with\n an open mind\n\n- Being transparent in our\n\n engagements\n\n- Responding appropriately to\n\n legitimate concerns\n\n- Being accessible\n\n- Ensuring that our code of ethics\n\n and our values underpin and inform\n our engagements.\n\nWe also have guidelines and policies\n in place to govern our engagements\n with specific groups of stakeholders.\n These ensure that bank\n representatives have an appropriate\n mandate for engagement,\n\n###### During 2021, SBN participated in a series of masterclasses on stakeholder **engagement, hosted by SBG executives from different business areas and countries,** and open to all employees, to raise awareness of the importance of effective stakeholder engagement and share lessons and advice.\n\n#### Funding of industry/trade associations, political parties and civil society organisations\n\nMembership contributions and charitable donations on behalf of SBN may only be offered or given in accordance with the principles set out in various SBG policies and/or guidelines relevant to the offering or giving of such payments.\n\n**SBG has guidelines in place that govern the provision of funding to specific categories of external stakeholders,** **as summarised below.**\n\n|Stakeholder category|Funding guidelines|Funding provided in 2021|\n|---|---|---|\n|Trade associations|• Trade associations are the primary vehicle through which we work to influence the regulatory environment in which we operate and we are active members of the Bankers Association of Namibia, Namclear and PAN, and also engage in broader industry workgroups as needed.|Approx. total contributions Namibia N$21 517 663|\n|Namibian political parties|• Requests for funding of, or decisions to fund, any political party are referred to the Head: people and culture, who is the chief ethics officer. • We do not fund political parties.|We made no financial contributions to political parties in 2021.|\n|Sponsorships|• The SBG sponsorship policy governs all sponsorships undertaken. • We define sponsorship as a commercially viable investment of cash, product or in-kind support with a rights holder, for which SBN receives quantifiable commercial rights in return. • Due diligence is carried out on rights holders prior to contracting, to ensure entities are of impeccable integrity and are reputationally sound.|N$4.9 million|\n\n#### Engagement with regulators, civil society and industry\n\n###### We participate in local business and industry forums and engage with civil society organisations with a focus on understanding our social and environmental impacts and stakeholder concerns and expectations.\n\n###### Engaging our regulators\nThe financial services sector is a highly regulated industry, subject to a host of local and international measures that cover issues ranging from the maintenance of liquidity to the administration of individual client affairs. We align with SBG policies in our dealings with regulatory bodies.\n\nWe support the role of regulators whose intention is to create an environment in which clients and financial institutions are safeguarded. As a leading Namibian financial institution, we are committed to working closely with regulators to ensure that regulations do not have any unintended consequences or burdens that make their application difficult to sustain. We work to ensure that regulators understand the impact of their requirements on our clients, our employees and our business.\n\nCompliance with regulations is not negotiable, and failure to act on them can result in the imposition of punitive fines and reputational loss and reduced market share. Responsibility for compliance rests with the board, which delegates the function to management overseeing measures as they are implemented. Typically, as a regulation is adopted, it moves from the compliance unit to the relevant areas within the group where policies or operations have to be adjusted to meet the regulations involved. Oversight of compliance risk management is delegated to the board audit committee, to which the compliance unit reports every quarter.\n\nAll non-compliant areas are identified, and interactions with regulators are discussed. When required, material regulatory issues are referred to the board risk committee, which informs the board of new legislation that may affect the group.\n\nCompliance training is mandatory. Employee conduct across three broad areas (personal, business and client conduct) is facilitated through comprehensive modules that cover ethics, conflicts of interest and outside business interests, personal account trading, data privacy, treating customers fairly and the receipt of gifts are delivered online and through personal interaction across the group.

Our SEE Committee provides oversight in this regard and assists with the alignment of the focus areas to the commercial objectives of the Group. Clearly establishing these linkages supports our contribution to the UNSDGs. [...] Quarterly reports on the screening undertaken is provided to the board. The board has focused on the identification of how best to mitigate climate related impacts associated with lending in this way.

###### Governance of stakeholder engagement
The SBG board is responsible for overseeing stakeholder
relations and ensuring that the group responds
appropriately to legitimate issues raised by our
stakeholders. This responsibility is delegated to the group
social, ethics and sustainability committee. The committee
receives a quarterly report identifying key issues and
concerns raised by the group's internal and external
stakeholders, and a quarterly report on risks and issues
with the potential to impact the group's reputation and
stakeholder relationships. Executive management provides
information about how the group is responding to these
issues and concerns and engaging with the relevant
stakeholders. The committee is responsible for approving
the group's material issues for external reporting
purposes, taking stakeholder priorities into account. [...] We have guidelines and policies in place to
govern our engagements with specific groups
of stakeholders. These ensure that group
representatives have an appropriate mandate
for engagement, and that potential conduct
and reputational risks are managed.

### Board oversight of climate-related risks and opportunities

###### The Standard Bank Group board has oversight of, and is ultimately accountable for the implementation of, the group's climate policy and the management of climate risks and opportunities across the group. It exercises this oversight through board committees, which meet quarterly. Committee chairs provide feedback from these meetings to the group board.

###### Group social and ethics board committee

###### Group remuneration board committee

- Will assess executive performance in relation to climate policy and targets from 2022

###### Group risk and capital management board committee

- Ensures alignment between group strategy and climate commitments

– Approved group climate policy and targets in 2021

###### Standard Bank Group Board

- Approves group E&S risk governance standard and policy

– Approved updated standard and policy in 2021
- Monitors climate risk

– Reviewed outputs of climate risk stress test on the SA credit portfolio in 2021 as part of common scenario solvency stress test

###### Board upskilling
In 2021, the group board participated in several training sessions focused on climate risk. These included engagements with ESG experts from the Institute of International Finance and S&P, and regular updates on emerging policy and regulatory frameworks relevant to climate risk management. Subsidiary boards at country level also held training sessions on climate risk.

###### Exercise of oversight
From 2022, the executive will report regularly to the board on progress against the group climate policy commitments and targets. The board will be kept appraised of current positions to clients, sectors and regions exposed to climate-related risks. As understanding of the group portfolio's alignment with future lower emissions pathways improves, and transition and physical risk scenarios are undertaken on the group's portfolio, more detailed and informed reporting will be provided to the board. [...] ### Management's role in assessing and managing climate-related risks and opportunities

###### Group leadership council

- Oversight of climate policy and targets, engagement with key stakeholders

– Held a special session in 2021 to discuss and approve the group's climate policy and targets

###### Group risk oversight committee

During 2021, Standard Bank partnered with SOAS University of London, to deliver a 10-week executive masterclass in sustainable finance and climate change. Forty executives and senior managers participated in the programme, which included interactive lectures and discussions, delivered via Microsoft Teams. Objectives included enabling participants to deepen their understanding of climate change risks, opportunities and sustainable finance instruments, and to build their capacity to engage with stakeholders to develop practical solutions for adaptation and mitigation.

###### Individual and team responsibilities
The group chief risk officer (CRO) has primary responsibility for management of climate risks and opportunities. The CRO reports to the executive and board.

- Group corporate citizenship

– Reports to CRO

– Responsible for developing climate risk management framework, climate policy, framework for climate targets, and TCFD reporting, in conjunction with client segments.

- Sector heads

– Responsible for the achievement of sector-specific climate commitments and targets
– Responsible for considering climate risk issues in the processes of client onboarding, regular client reviews, lending decisions, and investment
– Work with sustainable finance team to partner with clients to develop solutions that promote positive social and environmental impacts, mitigate and adapt to climate-related risk and deliver group sustainable finance targets.

- Group environmental and social risk (GESR)

– Through alignment with international best practice, including The Equator Principles, IFC Performance Standards and Sustainable Banking Principles, GESR identifies, screens and manages transactional-level environmental and social impacts associated with the group's lending activities.

- Corporate functions, including group risk, group compliance and group procurement

– Responsible for development and oversight of group wide responses to climate-related risks, including for group stress and scenario testing, risk governance framework design, and integration of climate risk management into existing enterprise-wide systems and frameworks.

•• The group board exercises oversight of executive management's efforts to foster a responsible culture of ethics and appropriate conduct. The group's code of ethics, organisational culture and values determine how we do business and with whom we do business. •• Our board and executive management are responsible for ensuring an appropriate focus on ethics, conduct and positive client outcomes. •• The social and ethics board committee is responsible for ensuring that we adhere to our values, code of ethics, and human rights statement, and our commitments under the UN PRB. •• SEE is a standing agenda item for our risk oversight committee, our social and ethics board committee, and our group leadership council. •• In 2020, we reviewed and restructured our governance systems and processes to ensure we're aligned with global good practice in respect of ESG risk management, including climate-related risk management. ESG risk has been integrated into the group's enterprise risk management framework. We have adopted a revised group ESG risk governance framework which addresses social, environmental and climate-related risk identification, classification, analysis, monitoring and reporting. •• The revised framework defines structures and accountability for the oversight, governance and execution of ESG risk management, including environmental issues and climate-related risks; social issues including labour practices, human rights, health and safety, financial inclusion and impacts on communities; and governance issues including ethics and conduct, prevention of financial crime, and stakeholder relations. •• Enhancements to the framework included strengthening our focus on climate-related risk, ensuring accountability for climate- related risk management, and embedding climate-related risk identification, classification, analysis, monitoring and reporting in our enterprise-wide risk management system. •• Group risk committees oversee the implementation of the ESG Risk Governance Framework, and report to the relevant board committees. During 2020, the group board undertook dedicated ESG training, including sessions with external experts. [...] •• The Group social and ethics committee (GSEC) approved the group's decision to become a founding signatory to the UN PRB in August 2019 •• GSEC provides oversight over PRB implementation •• Progress reports on PRB implementation re submitted to and reviewed by GSEC.

###### GOVERNANCE

Board oversight of climate-related risks and opportunities SBG's board is responsible for guiding the group's strategy and overseeing our progress against our strategic priorities and related value drivers.

Our value drivers include the delivery of positive impact on society, economies and the environment, with a specific focus on climate change mitigation and adaptation as one of four positive impact areas. The board is also responsible for assessing the effectiveness of our risk management processes, including ESG and climate risk management. The board and executive management are working toward strengthening our reporting regarding how performance against sustainability KPIs impact executive performance assessment and remuneration.

Responsibilities are delegated to several board sub-committees. Committees meet quarterly and provide feedback to the full board. All committees are chaired by independent non-executive directors. Our **governance report describes the composition of the board and** its committees, together with an explanation of how board performance is evaluated.

###### Board skills and training
Sustainability, climate risk and organisational resilience are regularly discussed at board and board committee meetings. This ensures that board members are well-informed about key issues and developments impacting the group.

In March 2025, in partnership with the Gordon Institute of Business Science (GIBS), the board embarked on a 12-month programme focusing on climate-related matters, with a view to further strengthening the board's role in overseeing these issues in relation to SBG's strategy.

###### GROUP BOARD COMMITTEES

###### Risk and capital management

###### OVERSIGHT ROLE

###### RECEIVES UPDATES ON

|Social, ethics and|sustainability|
|---|---|
|Social, ethics and|sustainability OVERSI|
|" Ensures alignment between SBG commitments " Approves group policies and sta policy, and monitors adherence " Approves climate-related metrics progress against these " Approves selection of additional|strategy and climate ndards, including climate and targets and monitors sectors for prioritisation.|
||RECEIVES|
|" Progress against positive impact metrics and targets " Progress against climate policy commitments and targets at sector and business unit level " Progress on defining climate risk metrics and risk appetite.||

|Risk and capita T ROLE|l management|
|---|---|
|" Monitors enterprise-wide risk " Approves risk appetite and al|s, including climate risk location of capital.|
|DATES ON||
|" Integration of climate risk management into an enterprise- wide risk management framework " Management of climate risk at sector and business unit level (report is prepared by sector heads, with support from group sustainability, and approved by business unit sustainability forums prior to board submission) " Progress toward developing appropriate methodologies and tools to assess, measure and disclose financed emissions and develop a financed emissions target for upstream oil and gas.||

###### MANAGEMENT'S ROLE
Executive oversight of climate-related risks and opportunities

###### Legal entities

� Chaired by business unit CEs. � Legal entity boards are responsible for overseeing climate-related risk management and alignment with the group climate policy and targets.

|Group Leadership Council (GLC)|Col2|
|---|---|
|" Chaired by group chief executive (CE) " Highest management structure " Reports to SBG board " Meets monthly.||
|||
|" Ensures appropria structures, policie in place to identify including climate r risk culture " Drives business al climate risk mana business ownersh accountability.|te governance s and processes are and resolve risks, isks, and strengthen ignment with gement and ensures ip and|
|||

|Social, ethics and sustainability management committee|Col2|
|---|---|
|" Chaired by SBSA CE " Reports to group social, ethics, sustainability committee " Meets quarterly.||
|||
|" Oversees group's and environmenta climate-related im " Oversees impleme climate policy " Approves metrics to climate risk ma|social, economic l impact, including pacts ntation of group and targets related nagement.|||

|Group risk oversight committee (GROC)|Col2|
|---|---|
|" Chaired by group chief risk and corporate affairs officer " Reports to group risk and capital management committee " Meets quarterly.||
|ACCOUN|TABILITY|
|" Ensures climate-re identification, clas monitoring and re in enterprise-wide system, including transaction screen diligence " Reviews results of regulatory scenari stress testing for c|lated risk sification, analysis, porting is embedded risk management client and ing and due internal and o analysis and limate risk.|
|HOW IT RECEIVE|S INFORMATION|

|Business unit strategy and governance committees|Col2|
|---|---|
|" Chaired by business unit CEs.||
|||
|" Monitor progress unit-level sustaina strategies, includi and targets " Provide quarterly the GLC.|against business bility and ESG ng climate metrics progress reports to||
|||

|Col1|Col2|
|---|---|
|" Legal entity boar for overseeing cl management an the group climat targets.|ds are responsible imate-related risk d alignment with e policy and|
|||
|" Ensure alignment strategy and grou commitments " Engage with secto level regarding co targets.|between country p climate policy and r heads at group mmitments and|||

� Engagement with sector heads, engagement between country sustainability teams and group sustainability, and between country risk functions and group risk including E&S risk teams.

� Receives updates from business units on progress against climate policy and targets.

� Receives updates from business units on progress against climate policy commitments and targets

� Quarterly reports on stakeholder issues and concerns based on group-wide input.

� Receives updates from business units on management of climate risk at sector and business unit level, and progress to develop appropriate methodologies and tools to assess and disclose financed emissions.

� Receives updates from sector heads on climate risk management.

--NEW-PAGE--

|Col1|Col2|
|---|---|

� Identify, measure, monitor and report risk on an enterprise-wide basis, independently from the first line.

Internal audit conducts risk-based and general audits to provide assurance to the board that the overall governance framework, including the risk governance framework, is effective and that policies and processes are in place and consistently applied.

In 2024, group internal audit provided assurance over the group's strategic execution and reporting of environmental risk management, assessing the adoption and embedment of group policies, information and data management for internal decision making, and controls to manage the integrity of public environmental disclosures. It further provided assurance on the accuracy and completeness of data used to calculate financed emissions baselines for priority sectors and the appropriateness of the methodology in line with the PCAF Financed Emissions Standard.

In 2025, group internal audit will provide assurance over controls to identify, measure and manage climate risk impact on CIB's credit and equity exposures. It will then provide assurance over controls to identify, measure and manage CIB's impact on

– Group legal and legal teams within **business units Track trends in climate** litigation, using information from a variety of sources including external law firms and other international databases and support business to manage legal risk in sustainable finance transactions (with a focus on risk of greenwashing) – Physical security and group real estate **risk Ensure appropriate policies and** procedures are in place in relation to potential protest action on group properties.

– Group chief risk officer Ensures climate risk is integrated into the enterprise-wise risk management framework – Chief risk officers in each business unit Ensure effective implementation of climate risk management framework within business units – Group environmental and social risk **(GESR) Ensure lending activities align with** SBG environmental and social risk policies and international standards; Work with business and credit teams to assess and monitor climate risks

– Country risk Assess and manage climate change in relation to sovereign risk – Group sustainability Shape the group's approach to climate-related risk management and key performance metrics, with oversight from the group social, ethics and sustainability committee; Collate and report progress on climate targets and climate risk management on quarterly basis to GLC and relevant executive and board committees; Deliver annual climate-related financial disclosures report; Coordinate updates to climate policy, commitments and targets

We engage with **trade associations** ###### and other industry bodies, working through them to influence our regulatory and operating environment and working with them to agree industry standards and guidelines [...] **Participation in Trade Associations policy aims to ensure:** group's position and representation are managed and consistent across various associations; adequate internal consultation is undertaken to formulate positions; representatives are clearly mandated and supported to communicate bank-wide positions; developments and positions on material issues are appropriately reported to relevant stakeholders, and all representatives conduct themselves in a way that reflects the values and protects the reputation of Standard Bank. - Applies to membership of banking or insurance associations, broader business associations and industry workgroups set up by regulators or government - Sets out categories of representatives; process for nominating and appointing group representatives to new and existing committees; principles for participation; and criteria for an annual review of representatives - All representatives are required to undergo compulsory training on competition law provided by group compliance.

**4** **Governance**\n\nOur governance structures, at board and management level, ensure effective oversight of our climate\npolicy and commitments. Our enterprise-wide risk management framework defines the structures and\naccountability for the oversight, governance and execution of climate risk management.\n\n**SBG board**\n\nSBG's board is responsible for guiding the Group's strategy and overseeing our progress against our\nstrategic priorities and related value drivers, including delivery of positive impact. The board is also\nresponsible for assessing the effectiveness of our risk management processes, including climate risk\nmanagement.\n\nResponsibilities are delegated to several board subcommittees. Board committees meet quarterly and\nprovide feedback to the full board. All committees are chaired by independent non-executive directors.\n\n - The Group social, ethics and sustainability sub-committee approves climate commitments and\ntargets per sector, and monitors progress against the Group climate policy, commitments and\ntargets.\n\n - Management of climate-related risk and opportunity is a standing agenda item for the board's risk\nand capital management subcommittee.\n\n**SBG executive management**\n\nThe Group Leadership Council (GLC) approves Group policies and standards, including the climate\npolicy and monitors adherence to commitments and progress against targets. The GLC ensures\nappropriate governance structures, policies and processes are in place to identify and resolve climate\nrelated risks and maximise positive impact in relation to climate mitigation and adaptation. The GLC\ndrives business alignment with the policy and ensures business ownership and accountability.\n\n**Business units and legal entities**\n\nBusiness units and legal entities are required to incorporate the Group's climate commitments and\ntargets into their strategies and report to existing BU governance committees on progress. These\ncommittees are responsible for recommending climate targets and commitments to group-wide\ngovernance committees for approval.\n\n--NEW-PAGE--\n\n**5** **Monitoring, review and reporting**\n\nProgress against our climate targets and commitments is regularly monitored and disclosed publicly\nin the Group's annual reporting suite. Climate targets and commitments are reviewed, at a minimum,\non a three-year cycle from the date of adoption. The Climate Policy is reviewed and revised where\nnecessary every three years at a minimum.\n\nTransactions designated as high-risk must be referred to the appropriate committees for enhanced\ndue diligence and transaction screening in compliance with SBG's procedures. Post-finance\nmonitoring will be required on an ongoing basis. Reporting on financing activities will be in accordance\nwith regular internal requirements and external regulatory reporting as and when applicable.

The group social and ethics committee (GSEC) oversees group activities relating to ethics and conduct, stakeholder engagement and social and environmental impacts. This committee ensures alignment between group strategy and commitment to create positive SEE impact and monitors metrics and targets related to SEE impact, in line with PRB commitments, including group climate policy and targets. At management level, the social and ethics management committee oversees the social and environmental impacts of the group's business activities, including climate related impacts, alignment with ESG standards and good practice, ethics, conduct and human rights impacts. It monitors stakeholder issues and concerns based on group-wide input. It is responsible for management review and approval of climate policy and targets and monitoring of implementation.

The group social and ethics committee is responsible for monitoring the group's SEE impact metrics and targets in line with our PRB commitments. This includes oversight of the group's climate policy, climate targets and commitments. The committee is chaired by Geraldine Fraser-Moleketi. A summary of the committee's focus areas in 2022 can be found in the SBG governance and remuneration report. [...] We undertake environmental and social risk screening, management and monitoring in relation to clients and transactions, and particularly in relation to commercial and corporate clients, project finance, commercial debt and equity and short-term banking facilities. We comply with international good practice standards, including the Equator Principles and IFC Performance Standards, for relevant transactions.

The Stanbic IBTC Board of Directors has ultimate responsibility for sustainability, encompassing environmental and social risk management. The board and executive leadership actively cultivate a sustainability culture grounded in good risk management practices, ethics, and conduct. They set the tone from the top, ensuring alignment of our values and standards with business operations. Their responsibility is to establish shared values for clients, society, and the environment. To execute oversight on sustainability matters, the board has delegated responsibilities to dedicated board and management committees. The BRMC plays a pivotal role by regularly reviewing and approving significant changes to the Group's policies, including sustainability, environmental and social risk, and compliance policies. The EXCO oversees the implementation of sustainability, including the environmental and social risk governance framework. They report to relevant board committees, ensuring that governance structures, policies, procedures, and practices are in place to align the business with the sustainability culture. The ORCC conducts reviews on operational risk, cyber, information, fraud, and environmental and social risks and compliance risks. This committee also assesses relevant sustainability and risk policies, promoting Environmental, Social, and Governance (ESG) risk management culture across the group. [...] In addition to the existing governance structure, we have established a dedicated Sustainability Steering Committee to further reinforce sustainable practices at the operational levels. This committee comprises of key stakeholders from various functions across the group, who serves as a driving force, fostering collaboration and innovation to enhance our impact on society, the economy, and the environment. The SSC is responsible for overseeing implementation of sustainable practices, reviewing progress on the four (4) sustainability pillars and ensuring alignment with our overarching sustainability goals.

The Board Audit Committee is responsible for providing oversight of the financial reporting process. [...] The Board of Directors (the Board), supported by the Board Audit Committee (BAC), acknowledges its responsibility for overseeing and ensuring the integrity of this integrated report. The Board has applied its collective mind to the report's presentation and preparation, which it believes to have been prepared in accordance with the IIRC's <IR> Framework. The Board further believes that the report fairly represents the Group's material matters and that it offers a balanced view of our strategy and value-creation model. [...] The mandate of the Board Nominations Committee includes establishing and maintaining directorship continuity programme which includes a review of performance and planning for successors for the board and management. During the year, matters relating to succession planning were discussed by the Committee.

###### Principle 5: Governance and culture

**Reporting and Self-Assessment Requirements** **Response**

**PRINCIPLE 5: GOVERNANCE AND CULTURE**

We will implement our commitment to these Principles through effective governance and a culture of responsible banking

###### 5.1 Governance Structure for implementation of the Principles 

Does your bank have a governance system in place that incorporates the PRB?

 Yes  In progress  No

Please describe the relevant governance structures, policies and procedures your bank has in place/is planning to put in place to manage significant positive and negative (potential) impacts and support the effective implementation of the Principles. This includes information about

� which committee has responsibility over the sustainability strategy as well as targets approval and monitoring (including information about the highest level of governance the PRB is subjected to),

� details about the chair of the committee and the process and frequency for the board having oversight of PRB implementation (including remedial action in the event of targets or milestones not being achieved or unexpected negative impacts being detected), as well as

� remuneration practices linked to sustainability targets.

###### Governance structures, policies and procedures to manage impacts and support the effective implementation of the Principles
Our Sustainability Disclosures report describes the policies, processes and governance structures the group has in place to manage our ESG risks and opportunities, including social risks related to human rights, and environmental risks related to climate impact.

###### Committee responsible for the sustainability strategy and target approval and monitoring
Our social and ethics management committee (executive level) and group social, ethics and sustainability committee (board level) oversee the implementation of the group's sustainability approach, progress against our positive impact value driver, and progress against our climate policy commitments and targets.

###### Chair of the committee
Social and ethics management committee – SBSA CE.

Group social, ethics sustainability committee – non-executive board member.

###### Process and frequency for board having oversight of PRB implementation
From 2024, the social and ethics management committee and social, ethics and sustainability board committee will receive quarterly updates on progress against the group's positive impacts.

The committees will also continue to receive quarterly updates on the group's progress against our climate policy and commitments, which include targets in respect of our PRB commitments.

###### Remuneration practices linked to sustainability targets
Our remuneration report provides information about the group's governance approach and priorities and includes our remuneration policy and implementation report. The remuneration committee considers executive performance against the group's six value drivers, including positive impact, in their decision-making.

**[[Sustainability ]](https://www.standardbank.com/static_file/StandardBankGroup/filedownloads/RTS/2023/SBG_SustainabilityDisclosuresReport2023.pdf)**
**[Disclosures Report](https://www.standardbank.com/static_file/StandardBankGroup/filedownloads/RTS/2023/SBG_SustainabilityDisclosuresReport2023.pdf)**

Page 9 to 12

--NEW-PAGE--

###### 6.3 Outlook

What are the next steps your bank will undertake in next 12 month-reporting period (particularly on impact analysis[13], target setting[14] and governance structure for implementing the PRB)? Please describe briefly.

###### Impact analysis

� The group will introduce quarterly reporting for positive impact metrics, across business units. Business units will be responsible for collating information from across geographies, for submission to the group social, ethics and sustainability committee.
###### Financed emissions and targets

� The group will continue to progress toward calculating and disclosing financed emissions data for additional sectors, and will determine targets and timelines for the reduction of financed emissions on this basis.

� The group will incorporate additional sectors into our climate-risk assessment processes and climate policy commitments.
###### Governance structure

� The group instituted quarterly reporting to the group social, ethics and sustainability committee (GSESC) and the social and ethics management committee (SEMCO) on climate risk and progress against the climate policy in 2023. From 2024, reporting to these committees will include quarterly progress on positive impact measures.

**[Sustainability ]**
**Disclosures Report,**

Page 10 and 11

**[[Climate-related ]](https://www.standardbank.com/static_file/StandardBankGroup/filedownloads/RTS/2023/SBG_ClimateRelatedFinancialDisclosuresReport2023.pdf)**
**[financial disclosures](https://www.standardbank.com/static_file/StandardBankGroup/filedownloads/RTS/2023/SBG_ClimateRelatedFinancialDisclosuresReport2023.pdf)**
**[report](https://www.standardbank.com/static_file/StandardBankGroup/filedownloads/RTS/2023/SBG_ClimateRelatedFinancialDisclosuresReport2023.pdf)**

Page 8 and 9,
41 to 44

## 5 Monitoring, review, and reporting

- Progress on the achievement of climate targets and commitments will be monitored on an
annual basis and will be disclosed in the group's annual reporting suite.

- Climate targets and commitments will be reviewed, at a minimum, on a three-year cycle
from the date of adoption.

- The Climate Policy will be reviewed and revised where necessary every three years at a
minimum.

Transactions designated as high risk will be referred to the appropriate committees for
enhanced due diligence and transaction screening in compliance with SBG's procedures.

- Post-finance monitoring will be required on an ongoing basis. Reporting of financing
activities will be in accordance with regular internal requirements and external regulatory
reporting as and when applicable.

###### Political party funding
We do not provide funding directly to political parties in any of our countries of operation. In South Africa, our democracy support programme provides for the provision of funding directly to the Independent Electoral Commission (IEC), in line with arrangements provided for in the Political Party Funding Act 6 of 2018. The IEC distributes the funds it receives to all parties represented in parliament, based on a formula provided by the Act. Political parties receive no other financial support from SBG. Our democracy support programme is approved by the SBG board and reviewed every five years. [...] In 2024 we donated R5 million to the IEC.

###### ESG governance E&S governance is a critical part of our E&S risk management strategy, designed to effectively manage E&S related risks and minimise any negative impact on the environment, society, and the economy. [...] With new emerging threats to the business such as climate change, the Leadership Council (LC) is responsible for overseeing implementation and adherence of policies put in place to manage these risks. This includes performance against set targets, ensuring reports are submitted to the board regularly on progress made. The LC ensures that governance structures, policies and processes are appropriate and adequately identify and resolve E&S related risks. It fosters accountability for E&S risk management across the Banks footprint, enforces through incorporation of E&S criteria in performance reviews with staff. Additional subcommittees have been set up to facilitate tracking and management of these activities. [...] Strategic level Our board is responsible for guiding the group's strategy, overseeing our progress against our strategic priorities and value drivers. This includes the delivery of positive SEE impact, and assessing the effectiveness of our risk management processes, strategy and governance standards. Our board is supported in this function through board committees, with specific ESG focused responsibilities unpacked as follows: |Subcommittee Risk and Conduct Committee (RCC)|Role • Oversees SEE impacts, including climate related impacts. • Monitors stakeholder issues and concerns. • Ensures alignment with code of ethics and conduct, human rights statement, E&S risk management framework, climate policy and targets • Ensures climate-related risk identification, classification, analysis, monitoring. • Oversees non-financial risks and governance. • Promotes a compliance culture and ensures the effective management of compliance risk across the Bank.| |---|---| |Credit Risk Management Committee (CRMC)|• Ensures effective E&S risk management in line with group risk appetite. • Ensures reporting is embedded in enterprise-wide risk management system, including client and transaction screening and due diligence.| |Committee|Role| |---|---| |Board Risk Committee (BRC)|• Approves updates to E&S risk standard and policy. • Monitors material stakeholder issues, and ensures they receive appropriate attention from board and management. • Guides alignment between group strategy and climate commitments and monitors progress against locally set climate commitments and targets. • Oversees adherence to E&S risk management system and policies. • Monitors climate risk exposure. • Assesses executive performance against SEE and E&S metrics.| |Board Credit Committee|• Considers enterprise-wide risks, emerging risks and events, including E&S risks, that may directly/indirectly transmit into the Credit book and portfolio and overall impact on the group's risk profile.|

The GSESC is responsible for overseeing the group's adherence to our values, code of ethics and conduct, as well as fulfilling our commitments under the UN Principles for Responsible Banking (PRB). It is responsible for guiding and monitoring progress against the group's positive impact value driver and transformation initiatives, and governs and oversees group activities relating to conduct, ethical standards and stakeholder engagement. It ensures that material stakeholder issues receive appropriate attention from the board and management. The committee's monitoring process includes the review of periodic conduct reports outlining matters of significance at a group, country, business unit and corporate function level. The GAC monitors the implementation of the remedial actions listed in the internal audit reports to ensure compliance with regulatory and legislative requirements. [...] The board has mandated the GSESC with oversight over social and sustainability matters. It considers and monitors the environmental impact of the group's activities, including climate change, and approves the group's environmental and sustainability initiatives, including any frameworks and policies, and oversees implementation thereof. It also oversees the integrity of relevant external sustainability disclosures.

The GSESC is responsible for overseeing the group's adherence to our values, code of ethics and conduct, as well as fulfilling our commitments under the UN Principles for Responsible Banking. It is responsible for guiding and monitoring progress against the group's positive impact value driver and transformation initiatives, and governs and oversees group activities relating to conduct, ethical standards and stakeholder engagement. It ensures that material stakeholder issues receive appropriate attention from the board and management. The committee's monitoring process includes the review of periodic conduct reports outlining matters of significance at a group, country, business unit and corporate function level. The GAC monitors the implementation of the remedial actions listed in the internal audit reports to ensure compliance with regulatory and legislative requirements. [...] The group does not fund political parties outside of South Africa. In South Africa, it provides funding for political parties under our democracy support programme (DSP). This board-approved funding policy is reviewed every five years. Since 2022, donations have been made directly to the Independent Electoral Commission (IEC), in line with arrangements provided for in the Political Party Act 6 of 2018. These guidelines are in place to guard against the risk that such contributions be used inappropriately, by the bank, its employees or third parties to obtain business advantage. Political parties receive no other financial support from the bank.

The board has delegated oversight of risk management, including climate-related financial risk and climate risk associated with our own operations to the GRCMC. Climate risk is governed as a component of environmental and social risk under the ESG risk governance framework and embedded within our enterprise-wide risk management system, and specifically our environmental and social management system (ESMS). This aims to ensure that executive management has an integrated view of our ESG risks, thereby enabling effective risk management. The framework explicitly incorporates climate-related risk and provides processes and accountability for climate-related risk identification, classification, analysis, monitoring and reporting. [...] The board has mandated the GSESC with oversight over social and sustainability matters. It considers and monitors the environmental impact of the group's activities, including climate change, and approves the group's environmental and sustainability initiatives, including any frameworks and policies, and oversees implementation thereof.

The board ensures the integrity of our external reporting through internal reporting processes that are well embedded and supported by various levels of oversight. The social, ethics and sustainability board sub-committee provides oversight of this report. [...] The social, ethics and sustainability board committee oversees the annual assessment and approves the issues and associated metrics and targets. We report progress to relevant executive committees and the board committee on a quarterly basis. [...] The materiality process, issues and matrix, and associated measures and targets, were reviewed by the social, ethics and sustainability management committee and then approved by GSESC in November 2024. [...] The group social, ethics and sustainability committee (GSESC) approves Principles of Responsible Banking (PRB) targets and oversees progress. [...] Group risk oversight committee (GROC) approves the E&S risk management governance standard and policy. [...] The board risk and capital management committee is responsible for approving updates to the group E&S risk standard, policy and monitoring adherence. At executive level, the GROC, chaired by group chief risk and corporate affairs officer, oversees E&S risk management by risk committees and mandated forums, in line with group risk appetite; reviews the results of client and transaction screening and due diligence to assess potential social/human rights and environmental impact, and ensures climate-related risk identification, classification, analysis, monitoring and reporting is embedded in the enterprise-wide risk management system, including client and transaction screening and due diligence. [...] Group environmental and social risk (GESR) is responsible for reviewing, updating and ensuring the effective implementation of the ESMS, standard and policy. The standard and policy are reviewed and updated every three years, taking into account any changes to global standards and frameworks, national regulatory requirements and internal requirements. During 2024, the standard and policy were amended to include updates to climate, biodiversity, water and supply chain risk assessment criteria and to reflect the evolving governance changes in integrating ESG risks across the various business units. The group risk and capital management board committee approves updates to the E&S risk standard and policy and monitors adherence to the standard and policy. [...] The group portfolio risk management committee reviews the results of portfolio reviews, stress testing, appetite and strategy assessments for all risk types, including E&S risk; sets concentration limits or thresholds of portfolios and risk appetite indicator guidelines for group; and assesses portfolio composition and implications of climate stress testing. [...] Transactions rated as high E&S risk require approval from the head of GESR prior to credit approval. [...] The group social, ethics and sustainability committee receives quarterly reports on progress against the group's positive impact metrics and targets, and climate policy commitments and targets. [...] The group social, ethics and sustainability committee receives quarterly ethics and conduct dashboards. [...] The group social, ethics and sustainability committee receives quarterly updates on progress against climate policy and targets.

Conduct risk is governed by conduct oversight committees within business segments and corporate functions, together with the social and ethics management committee and group social and ethics committee. Conduct oversight committees are responsible for: Promoting sound culture and conduct standards Identifying emerging trends in conduct and behaviour Aligning conduct strategy and metrics at business unit level with regulatory requirements and business objectives Monitoring and interrogating conduct risk management information and indicators Identifying conduct risk specific to their business and taking appropriate risk-mitigating actions Reporting conduct risk management information and material control issues to enable the board and executive management to exercise oversight and management.

### Executive oversight of ESG risk management

###### Group risk oversight committee (GROC)

###### Social and ethics management committee

- GLC subcommittee with reporting line into the group social

and ethics committee

- Chaired by the SBSA chief executive officer

- Meets quarterly

- Oversees social and environmental impacts of the group's

business activities, including climate related impacts,
alignment with ESG standards and good practice, ethics,
conduct, human rights impacts

- Monitors stakeholder issues and concerns based on

group-wide input

- Responsible for review and approval of climate policy

and targets and monitoring of implementation.

###### Group leadership council (GLC)

- GLC subcommittee with reporting line into group risk and capital management committee

- Chaired by group chief risk and corporate affairs officer

- Meets quarterly

- Responsible for overseeing financial and operational related risk, including ESG risk and, within this,

climate-related risk, and embedding climate-related risk identification, classification, analysis, monitoring
and reporting in enterprise-wide risk management system. ESG risk management was a standing agenda
item in 2021

- Approves relevant risk governance policies, promotes risk management culture, oversees ESG risk

management processes implemented by risk committees and mandated forums, including client and
transaction screening and due diligence, to assess potential human rights and environmental impact

- Reviews and recommends group risk appetite.

###### Group social and ethics committee

� Oversees alignment between group

strategy and SEE value driver

� Monitors SEE impact metrics and

targets in line with PRB commitments

� Monitors adherence to code of ethics

and conduct, including quarterly
conduct dashboards and progress on
diversity targets

� Monitors material stakeholder issues,

and ensures they receive appropriate
attention from board and management

� Guides alignment between group

strategy and climate commitments and
monitors progress against climate
commitments and targets" [...] "###### Group leadership council

(GLC)

� Constituted by the group chief executive,

highest management structure

� Ensures appropriate governance structures,

policies, processes are in place to identify and
resolve risks and strengthen risk culture

� Approves group policies and standards

� Monitors adherence to group policies and

standards, including code of ethics and
conduct, and climate policy

� Drives business alignment with ESG risk

management and ensures business ownership
and accountability

� Oversees conduct dashboards

� Oversees implementation of climate policy

and targets

� Reports to SBG board on progress

� Meets monthly" [...] "###### Engagement with regulators

**We continued to monitor policy and regulatory**
**developments across the group and provide evidence-**
**based submissions to support the policy making process.**
We have seen a notable shift in several of our countries of
operation toward forward-looking regulatory supervision, as
embodied in stress testing requirements and recovery and
resolution planning, particularly in respect of climate risk. A
challenge for the group, operating as we do across multiple
countries and regions, is that different countries are adopting
global standards and good practice at different times, and
that some countries have taken different regulatory
approaches to issues (such as adoption of cloud and
cryptocurrencies, for example), with implications for our
group strategy and operations.

In South Africa, we maintain a schedule of policy and
regulatory developments, which is shared with relevant
internal stakeholders across the group to ensure awareness
and readiness for new regulatory requirements. In 2022, we
assessed 104 new regulatory issues and completed
51 submissions on behalf of the bank to Parliament,
regulators, government departments and trade associations.

3.4 Sector climate plans are tabled at the relevant governance bodies in the respective Business Segment and, if approved, submitted to the Social and Ethics Management Committee and Group Leadership Council for discussion. Final sector climate plans, including targets and commitments are tabled at the Group Social and Ethics Committee for approval. This is a Board committee mandated to oversee the group's climate strategy.

We have a series of internal policies, procedures and controls in place to ensure that accurate data is provided. The Standard Bank Group (SBG) social and ethics committee provides oversight of this report. [...] PricewaterhouseCoopers Inc. (PwC) provided limited external assurance on selected performance data in this report, indicated by in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised). PwC's limited assurance report can be found here.

As part of our interaction with key stakeholders, we are active members of banking and insurance associations in Namibia, and other broader business associations and industry work groups set up by regulators or the government. These memberships enable us to continue to contribute to public policy debates and policy-making processes to ensure the development of our economy and society. [...] We are active members of banking and/or insurance associations in our countries of operation, and engage in broader business associations, and industry work groups set up by regulators or government. These memberships enable us to contribute to public policy debates, support evidence-based policy making, contribute to processes such as the development of global standards and frameworks, and work collectively to enable positive impact. Our trade association membership policy governs employee participation and accountabilities in such bodies. We pay membership fees, which are managed at country level. We do not provide funding for lobbying on specific issues.

Transactions related to thermal coal mining that are designated as High Risk will be referred to the Head: Group Environmental & Social Risk for enhanced due diligence and transaction screening in compliance with the Group's internal procedures. Post-finance monitoring will be required on an ongoing basis.

### GOVERNANCE AND OVERSIGHT

###### Board's role Our board is responsible for guiding the group's strategy and overseeing our progress against our strategic priorities and related value drivers, including the delivery of positive impact on society, economies and the environment. The board is also responsible for assessing the effectiveness of our risk management processes, including ESG risk and climate risk. Climate risk management oversight is delegated to two board subcommittees. Board committees meet quarterly and provide feedback to the full board.

###### Board Subcommittees

###### Group social, ethics and sustainability committee (GSESC)

� Oversees implementation of the group's climate policy, monitors progress against our climate commitments and targets and ensures alignment between our climate commitments and SBG's strategy.

� Reviews and discusses quarterly climate risk management updates from the business sectors and interrogates progress against the group's climate commitments and targets at sector level.

**Focus in 2023**

� Approved the selection of sectors for phase three assessment and target setting.

� Reviewed first set of financed emissions measurements and disclosures for the group's upstream oil and gas portfolio.

###### Group risk and capital management committee (GRCMC)

� Reviews and discusses quarterly updates on the group's management of climate risk and progress in respect of integrating climate risk management into the enterprisewide risk management framework.

� Oversees management's progress toward developing appropriate methodologies and tools to assess financed emissions and monitors progress in terms of the group's capacity to measure and disclose financed emissions.

**Focus in 2023**

� Climate risk was one of the South African Prudential Authority's Flavour of the Year topics for 2023. The SBG chairman presented this topic to the PA on behalf of the board. The focus was on organisational resilience and climate-related risk and potential impacts on business model and strategy, governance and leadership in respect of climate risk management, risk appetite, approach to scenario analysis and stress testing, internal reporting and external disclosures.

**Country and regulated entity** **boards are responsible for** overseeing climate-related risk management and alignment with the group climate policy and targets at country level.

###### Looking ahead The board is committed to strengthening its climate-risk management expertise. It continues to develop its understanding of climate finance, climate risks and the energy transition. Where necessary, external expertise is consulted.

The board is aware of global developments calling for greater disclosure of biodiversity and nature risk. The board will review management's plans to assess and address nature-related financial risks in 2024.

--NEW-PAGE--

###### Management's role

###### GLC sub-committees

###### Social and ethics management committee (SEMCO)

###### Group risk oversight committee (GROC)

**Oversight and guidance**

|guidance|Col2|Col3|Col4|
|---|---|---|---|
|" Chaired by group chief risk and " Reviews and recommends group corporate affairs officer, reports to risk appetite group risk and capital " Ensures effective E&S risk management committee, meets management in line with group quarterly risk appetite " Oversees financial and operational " Ensures climate-related risk related risk, including ESG risk identification, classification, management by risk committees analysis, monitoring and reporting and mandated forums, including is embedded in enterprise-wide client and transaction screening risk management system and due diligence to assess including client and transaction potential social/human rights and screening and due diligence environmental impact " Tracks progress against the " Approves relevant risk governance integration of the climate risk policies management programme adopted " Promotes culture of effective risk in 2022. management.||||
|||||

|Col1|Oversight an|
|---|---|
|" Chaired by Standard Bank South Africa (SBSA) CE, reports to group social, ethics and sustainability committee, meets quarterly " Oversees group's social, economic and environmental impact, including climate-related impacts " Monitors stakeholder issues and concerns based on group-wide input " Ensures alignment with code of ethics and conduct, human rights statement, E&S risk management framework, climate policy and targets " Receives quarterly reports on progress against the group's climate policy commitments and targets " In 2023, approved selection of sectors for phase 3 assessment and target setting.||

**Business units and legal entities have** strategy and governance committees that oversee climate work in their respective areas, and which recommend climate targets and commitments to group-wide governance committees for approval.

� Oversees credit exposure at sector and country level

� Oversees non financial aspects of ESG and climate risk

--NEW-PAGE--

###### Three lines of defence Our three lines of defence model sets out the responsibilities of individuals and teams to ensure that risks are adequately considered and managed.

###### First line

� **Business units are responsible for assessing** and managing climate risk in relation to their activities. Within each business unit, sector heads drive climate-related work and ensure engagement with clients. For example, executives leading the group's agriculture business monitor climate-related issues relevant to the agriculture sector, while executives leading the group's residential real estate business monitor issues pertinent to home loans.

� Business engages with group risk and other corporate functions (including compliance, legal, people and culture, procurement, third-party risk management) to ensure that climate risk management is integrated into existing

###### Second line

� **Group risk functions identify, measure, monitor** and report risk on an enterprise-wide basis, independently from the first line.

� The group chief risk officer is accountable for ensuring that climate risk is integrated into the enterprise-wise risk management framework.

� Chief risk officers in each business unit are responsible for implementing the climate risk management framework in their areas.

� Group environmental and social risk (GESR) is responsible for ensuring the group's lending

###### Third line

enterprise-wide systems and frameworks, including client onboarding and review, transaction screening and monitoring, portfolio management, third-party risk management, procurement and product development.

� Business is responsible for implementing sector-specific climate commitments and targets and reporting progress to their strategy and governance committees. These committees oversee climate work in their respective business units, recommend climate targets and commitments to group-wide governance committees for approval, and provide quarterly progress reports to the GLC on progress against commitments and targets. The committees are chaired by the business unit chief executives.

activities align with group environmental and social risk policies, and international standards of best practice. GESR works with business and credit teams to assess and monitor climate risks.

� Country risk focuses on climate change in relation to sovereign risk.

� Group sustainability collates and reports relevant developments for different audiences across the group, including the group risk strategy committee, group leadership council, and the board.

� In 2023, internal audit initiated an assessment of the group's environment and social risk management process, and the group's process for reporting against the climate commitments and targets. The process will be concluded in the first half of 2024, following which action plans to address areas for improvement will be developed.

###### Governance\n\n###### There was a notable increase in the time that both the board and management invested in assessing and monitoring climate-related issues in 2022. We expect this trend to continue into 2023 and beyond.\n\n Board level oversight and guidance\n\n###### SBG board\nThe board is responsible for overseeing climaterelated risk management and progress against our\nclimate policy and targets. This also applies to the\nboards of subsidiaries.\n\nThis responsibility is delegated to the group risk and\ncapital management committee (GRCMC) and the\ngroup social and ethics committee (GSEC). These\ncommittees meet quarterly and provide feedback\nto the full board.\n\n###### Group leadership council\nThe group leadership council drives the\nimplementation of the group's climate strategy and\nadherence to the group climate policy. Throughout\nthe year it received progress reports on the targetsetting work underway in client segments.\n\nThis committee is chaired by the SBG chief executive.\n\nGLC received quarterly progress reports starting from\nQ3 2022.\n\n###### Group social and ethics committee (GSEC)\nThis committee has oversight of the group's climate\npolicy, climate targets and commitments. In 2022,\nit considered a report on progress against the group's\nphase one climate targets. It also discussed and\napproved the group's phase two targets and\ncommitments.\n\nManagement tabled the group's climate strategy,\ntargets and commitments to GSEC in Q3 and Q4 2022\nand continues to provide quarterly updates in 2023.\n\n###### Management level oversight\n\n Social and ethics management committee\nThis committee has oversight of the group's climate\npolicy, climate targets and commitments. In 2022,\nit considered a report on progress against the group's\nphase one climate targets. It also discussed and\napproved the group's phase two targets and\ncommitments.\n\nThis committee is chaired by the SBSA chief executive.\n\nClient segments tabled climate strategy, targets and\ncommitments to GSEC in Q4 2022, and will continue to\ndo so on an annual basis, at a minimum.\n\n###### Group risk and capital management committee (GRCMC)\nThis committee is expanding its role in the oversight\nof climate risk management. In 2022, it considered\na detailed report on evolving our climate risk\nmanagement practices, regulatory requirements,\nand the work being led by group risk to understand\nthe group's exposure to climate risk.\n\nManagement tabled a climate risk management\nreport to GRCMC in Q4 2022.\n\n###### Group risk oversight committee\nThis committee is developing its role in the oversight\nof climate risk management. In 2022, it considered a\ndetailed report on evolving climate risk management\npractices, regulatory requirements, and the work being\nled by group risk to understand the group's exposure to\nclimate risk.\n\nThis committee is chaired by the group chief\nrisk officer.\n\nGROC reports to the group risk and capital\nmanagement committee (GRCMC).\n\n###### Client segments\nClient segments have strategy and governance committees that oversee climate work in their respective business units,\nand which recommend climate targets and commitments to group-wide governance committees for approval.\n\nThese committees are chaired by the client segment chief executives\n\n###### Management's role in assessing and managing climate-related risks and opportunities\n\nIn keeping with the group's operating model, client\nsegments take the lead in assessing and monitoring\nclimate-related issues relevant to their specific\nbusinesses. Each segment has identified an\nappropriate executive to drive climate-related work in\ntheir business, ensuring that the climate strategy\nwork takes place as close to our clients as possible.\nThis means for example that the executives leading\nthe group's agriculture business monitor climaterelated issues relevant to the agriculture sector, while\nexecutives leading the group's residential real estate\nbusiness monitor issues pertinent to home loans.\n\nIn addition, executives in various corporate functions\nsupport climate related risk management at group\nlevel. For example,\n\n� Investor relations keeps track of investor sentiment\nin respect to climate-related matters.\n\n� Country risk focuses on climate change in relation\nto sovereign risk.\n\n� Group corporate citizenship collates and\nsynthesizes relevant developments for different\naudiences across the group, including the group\nrisk strategy committee, group leadership council,\nand the board.\n\n� Certain group subsidiaries have dedicated roles\nrelated to ESG and climate change, including SBG\nSecurities and Melville Douglas.\n\nThe group ESG Community of Practice meets\nmonthly and shares knowledge about climate-related\nmatters. Relevant insights are also shared through\nbespoke training sessions to different audiences\nwithin the group.

##### Board oversight of climate-related risks and opportunities

The Standard Bank Group's Board is accountable for oversight of climate-related risk management.

The Board has oversight of the Group's risk management frameworks and practices. The Board has delegated this oversight role to the Group Risk and Capital Management Committee and to the Group Social and Ethics Committee.

##### Management's role in assessing and managing climate-related risks and opportunities

The Group's ESG Risk Governance Framework seeks to ensure that executive management has an integrated view of our ESG risks, thereby enabling effective risk management. We are updating our ESG risk governance framework to explicitly manage climate-related risk. The Group Chief Risk Officer is accountable for this work.

The Group Risk Oversight Committee approves climate-related policies, standards and guidelines such as the Group Thermal Coal Mining Policy. Other committees that discuss climate-related risks and opportunities include:

- Group Operational Risk Committee

- Group Portfolio Risk Management Committee

- Social and Ethics Management Committee

Standard Bank Group's Sustainable Finance team, supported by relevant originating business units, including but not limited to Corporate and Investment Banking, Business and Commercial Banking, and Personal and Private Banking, will be responsible for evaluating and selecting eligible projects in line with the Framework's eligibility criteria. Standard Bank Group's Environmental and Social Management System applies to eligible allocation decisions made under the Framework. Sustainalytics considers these risk management systems to be adequate and aligned with market expectations. For additional details, see Section 2. This is in line with market practice. [...] Standard Bank Group commits to report on the allocation and impact of proceeds through a publicly available Environmental, Social and Governance reporting suite of documents on an annual basis until full allocation. Allocation reporting will include the total amount of proceeds allocated to eligible asset category, the number of eligible assets in each category and the balance of unallocated proceeds. Sustainalytics views Standard Bank Group's allocation and impact reporting as aligned with market practice.

Stanbic's E&S risk management processes are based on international best practice and aligned to the requirements of the Equator Principles, the IFC Performance Standards, the Principles for Responsible Banking, and the Guidance on Climate Related Management issued by the Central Bank of Kenya. To measure and disclose climate-related risks and opportunities, Stanbic has adopted a metrics methodology that aligns with industry best practices and incorporates the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD), William added.

At the same time, we strengthened our governance of Environmental, Social and Governance (ESG) risk, and introduced new oversight mechanisms and policy frameworks to enable us to assess and monitor these risks more effectively. We continued to support skills development and the evolution towards new ways of work for our employees and communities, and we did all we could to keep our employees and clients as safe as possible in the context of unprecedented risks to public health. [...] 2020: Adopted ESG governance framework, recognising ESG as separate risk type within non-financial risk and assigning clear accountability. Expanded board and management committee mandates to include oversight of ESG risk management Integrated SEE metrics and ESG performance into SBG performance metrics Included SEE and ESG considerations in executive performance assessment Hosted internal PRB webinars for employees.

The Board risk committee prioritized the tracking of key metrics especially those related to climate risks. Guided by the ESG dashboard developed in 2022, the Board risk committee continuously monitored progress with the Group's commitments to integrating Sustainable Development Goals (SDGs) into its activities. [...] Relevant executives, teams and committees are responsible for ensuring that E&S considerations are incorporated across the Group's business activities. At an operational level, the team is responsible for the day-to-day execution and tracking of E&S at business unit level. This includes ongoing structured reporting and capacity building. SEE Committee - The SEE (Social, Environmental, and Economic) Committee is responsible for overseeing and promoting E&S considerations within the organization. - Ensures that social, environmental, and economic factors are incorporated into business decisions and activities, aligning them with the company's sustainable development goals. - Focuses the business on client wealth generation, and tailored solutions and products to grow the SME sector. - Provides products and tools aimed at promoting trade, and sustainable financing with a specific focus on combating the effects of climate change. - Track and monitor the set target as well as reviews strategy. Credit Committee - Considers E&S factors when assessing credit risks and making lending decisions. - Evaluate potential social and environmental impacts of financing activities and ensure alignment with the company's E&S objectives.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]In-country compliance functions support the in-country chief executives in the management of regulatory relationships. This includes receiving and providing feedback on all communications between regulators and banks. We treat climate risk as a component of ESG risk. Our ESG risk management is informed by regulatory requirements in our countries of operation, and voluntary frameworks such as the UN Guiding Principles on Business and Human Rights, The UNEP FI Principles for Responsible Banking, and global standards governing environmental and social (E&S) risk management including the IFC Performance Standards and Equator Principles (EP).