Standard Chartered is making significant strides in the realm of sustainable finance, as outlined in its latest report. The bank’s income from this sector reached $982 million in 2024, marking a notable 36% increase from the previous year. This achievement brings Standard Chartered closer to its target of attaining $1 billion in annual sustainable finance income by 2025. The growth underscores the bank’s unwavering dedication to funding the transition towards a low-carbon economy.
This commitment is further evident in the bank’s sustainable finance lending and financing solutions, which rose to $507 million in 2024 from $386 million in 2023, as per the bank’s 2024 annual report. Additionally, sustainable finance transaction services saw a substantial 58% surge to $319 million, while payments and liquidity-based services experienced an 82% increase. These figures reflect a growing demand from businesses for climate-friendly financial solutions as they strive to decarbonize.
Standard Chartered has set a commendable target to mobilize $300 billion in sustainable finance by 2030. By the end of 2024, the bank had already achieved $121 billion, showcasing steady progress towards its long-term goal. This financing supports crucial projects in renewable energy, green infrastructure, and other climate-positive initiatives. The bank’s sustainable finance portfolio has expanded to $23.3 billion, with 78% of assets located in Asia, Africa, and the Middle East. Marisa Drew, the Chief Sustainability Officer at Standard Chartered, emphasized the significance of this financing, highlighting the pressing need to support the transition to a low-carbon economy.
In its pursuit of sustainability and a net-zero commitment, Standard Chartered has not only made financial strides but also endeavored to reduce its carbon footprint. In 2024, the bank achieved a notable 28% decrease in Scope 1 and 2 emissions, bringing total emissions down to 24,968 tCO₂e. Standard Chartered has set a target to achieve net zero in its financed emissions by 2050 and has established interim targets for its highest-emitting sectors. The bank has shared its strategy in a new transition plan, including commitments to reduce emissions from capital markets activities in the oil and gas sector by 26.9% by 2030.
Standard Chartered’s approach to net zero involves setting sector-specific emission reduction targets, aligning with global climate goals. For instance, in the oil and gas sector, the bank aims for a 29% reduction in absolute financed emissions by 2030 and 100% by 2050. Similarly, in power generation, the target is a 63% reduction in emissions intensity by 2030, with a focus on supporting renewable energy projects. The bank is partnering with clients in sectors like metals & mining and automotive manufacturing to adopt sustainable practices and reduce emissions.
Differentiating itself from industry peers, Standard Chartered remains steadfast in its sustainability goals while some banks are reevaluating their climate targets. Despite challenges, the bank continues to strengthen its emission reduction strategies and sustainable finance efforts. CEO Bill Winters reiterated the bank’s commitment, emphasizing the importance of supporting clients in their transition to net zero.
Standard Chartered’s sustainable finance initiatives are already making a global impact, particularly in funding renewable energy projects, green bonds, and climate-friendly investments. The bank’s financing not only facilitates the shift to cleaner energy but also fosters innovation in combating climate change. With clear strategies, ambitious targets, and robust financial support, Standard Chartered is positioning itself as a leader in sustainable banking. As the demand for sustainable financing grows, the bank’s role in mobilizing capital for climate solutions will be crucial in accelerating the transition to a low-carbon economy, ensuring a more sustainable future for businesses and communities worldwide.
