Key Takeaways
- Net Zero Commitment: Standard Chartered aims for net zero in its financing activities by 2050 and in its own operations by 2025.
- Sustainable Finance Growth: The bank generated $982 million in sustainable finance income in 2024, targeting $1 billion by the end of 2025.
- Sector-Specific Targets: Standard Chartered has set science-based 2030 targets across 12 high-emitting sectors, aligned with the Net-Zero Banking Alliance (NZBA) guidelines.
Integrating Climate Considerations
Standard Chartered has released its Transition Plan, detailing how it embeds climate considerations into decision-making to support its net zero strategy. The plan outlines a clear framework for engagement with corporate and institutional clients, ensuring sustainable finance solutions drive decarbonization.
Driving Emissions Reductions
The plan primarily focuses on financed emissions, targeting high-emitting clients in sectors such as oil and gas, steel, shipping, and power. The bank aims to actively engage 4,000 clients, ensuring their transition strategies align with global climate goals.
Bill Winters, Group Chief Executive at Standard Chartered, emphasized the commercial significance of this transition:
“As a global bank serving the cross-border needs of our clients, we’re clear that the transition to a low-carbon economy presents a significant opportunity to accelerate sustainable and enduring growth across our markets.”
Science-Based Approach and External Verification
The bank has engaged EY to verify its interim 2030 targets for high-emitting sectors, ensuring alignment with the Paris Agreement. Dana Barsky, Global Head of Sustainability Strategy and Net Zero, highlighted this commitment:
“We’re pleased to say that Standard Chartered is the first Global Systemically Important Bank (GSIB) to have external confirmation of its targets.”
Financial Commitments and Progress
- $121 billion in sustainable finance mobilized from January 2021 to September 2024, targeting $300 billion by 2030.
- $982 million in sustainable finance income in 2024, progressing towards a $1 billion annual target by 2025.
- 29% reduction target in absolute financed emissions for the oil and gas sector by 2030.
Governance and Industry Collaboration
Standard Chartered’s Transition Plan follows guidelines from the Transition Plan Taskforce (TPT) and Glasgow Financial Alliance for Net Zero (GFANZ), ensuring rigorous governance around net zero calculations and client engagement strategies. The bank remains an early adopter of the Taskforce on Nature-related Financial Disclosures (TNFD), reinforcing its commitment to environmental sustainability.
The Path Ahead
With a science-backed transition plan, active client engagement, and sector-specific net zero targets, Standard Chartered is positioning itself as a leader in sustainable finance. The bank’s strategy underscores the opportunities for economic growth in emerging markets while ensuring a credible path to decarbonization.
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