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.
