Standard Chartered has launched its Transition Plan, outlining the bank’s strategy for integrating climate considerations into decision-making and achieving net zero. The plan is focused on the decarbonisation of financed activity and operations. Standard Chartered aims to reach net zero for its financed emissions (Scope 3) by 2050 and net zero for its Scope 1 and 2 by 2025.

A High-Emitting Sector Focus

Standard Chartered works with high-emitting clients to cut financed emissions and make real progress towards net zero. Oil and gas, automotive, and cement clients offer the bank opportunities to drive sustainable innovation. Standard Chartered works with customers, offering sustainable finance solutions to support them in their transformation while driving long-term growth for the company and customers.

Bill Winters, Group Chief Executive at Standard Chartered, said,”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.”

He added, “Whether we’re supporting clients with their transition strategies and business models of the future, developing solutions to finance new innovative technologies, or financing low-carbon infrastructure projects in India, Indonesia, South Africa, and beyond – it is important business for Standard Chartered.”

Science-Based Targets for Emissions Reduction

Standard Chartered adopts a science-driven strategy to net zero, with EY verifying that its greenhouse gas reduction targets are consistent with the climate ambition of the Paris Agreement.This recognition is the first for a GSIB to receive independent verification, highlighting its commitment to transparent and credible climate action.

Standard Chartered’s recently released full-year results show that it has made great strides in its sustainable finance initiatives. The bank earned $982 million from sustainable finance in 2024, close to its goal of $1 billion by 2025.

Besides, it has mobilized $121 billion of sustainable finance from January 2021 to September 2024, a target of doubling to $300 billion by 2030.These statistics serve to illustrate the bank’s vast contribution towards inducing sustainable growth as well as capital mobilization toward the low-carbon transition.

Standard Chartered has also established precise targets for high-emitting industries as part of its initiative. For the oil and gas industry, the bank has a goal of reducing absolute financed emissions by 29% by 2030, from a 2020 baseline.

In addition, the bank has finalized science-based emissions targets across all 12 high-emitting sectors included in the Net-Zero Banking Alliance (NZBA), further committing to achieving international climate objectives.

Also read: Standard Chartered Launches Sustainable Finance Variants for Borrowing Base Trade Loans

Strong Governance and Accountability

Transition Plan outlines strong governance arrangements to support good control and accountability while the bank achieves net zero. This includes strict controls over target management, client interactions, and decision-making procedures. These mechanisms hold Standard Chartered responsible for net zero and maintain transparency among stakeholders and clients.

The European Investment Bank (EIB) has signed a €430 million loan to support Galp’s initiative towards the decarbonisation of two major projects at its Sines Refinery. The two projects aim to significantly decarbonize heavy-duty road transport and aviation.

Biofuels Unit to Revolutionize Aviation Fuel Production

Galp is building a Biofuels unit in collaboration with Japan’s Mitsui. The €400 million investment will convert vegetable oils and residual fats into sustainable aviation fuel (SAF) and renewable diesel (HVO). Both will be the same quality as their fossil-based equivalents for application in conventional combustion engines.

The plant, which will begin production in 2026, will produce up to 270,000 tons of renewable fuels annually. This will allow Portugal to meet the European Union‘s aviation fuel demand. SAF is at the centre of air transport decarbonisation, contributing approximately 3% of global greenhouse gas emissions.

Green Hydrogen Production with €250 Million Electrolyser

Galp is building a 100 MW electrolyser at Sines with a €250 million investment, €180 million of which the EIB will cover. The electrolyser will yield up to 15,000 tons of green hydrogen per year when it foes online in 2026. It will become one of Europe’s biggest functional green hydrogen units, continuing to promote the EU’s green energy drive.

Ronald Doesburg, Galp’s Executive Board Member responsible for the Industrial area said, “We have mobilized partners, private investment, and European financing to drive a transformative project that brings European and national energy and industrial policies to life.”

He added, “More is needed from energy companies, public funding and government support if we want to maintain Portugal’s relevance in an increasingly unstable world.”

Also read: EIB and Sparkasse Bank Partner to Strengthen Green Finance in North Macedonia

Facilitating the European Green Deal and REPowerEU Plan

Additionally, the green hydrogen and biofuels projects promote the EU’s climate neutrality vision for 2050 and enhance energy autonomy in REPowerEU. The €22.5 million funding from the Recovery and Resilience Plan also supports the projects, highlighting the EU’s push for clean energy transitions.