Recently, Standard Chartered released its Net Zero Transformation Plan, detailing how it will continue to integrate climate considerations into its business and operational decisions to achieve the Net Zero agenda while supporting sustainable growth.
The plan sets out how companies can achieve net zero emissions from the bank's financing activities by 2050, and from the bank's own operations by 2025. Taking into account the bank's new and existing clients, the plan sets out a transparent and actionable framework for delivering on these commitments through the engagement of corporate and institutional clients, as well as the deployment of innovative sustainable and transformational financing solutions across its global operations.
Targeting carbon in 12 sectors
Standard Chartered's Net Zero Transformation Program focuses on carbon emissions from financing activities, a major source of emissions. To achieve this goal, the bank has completed interim 2030 target setting for all 12 high-emission sectors. In accordance with the Guidelines for Setting Banks' Climate Targets issued by the Net Zero Banking Coalition, Standard Chartered set science-based carbon targets and commissioned Ernst & Young to confirm that its targets for the aluminum, automotive manufacturers, cement, commercial real estate, oil and gas, power, shipping, steel and coal sectors were mathematically accurate in line with the Paris Agreement's long-term temperature goal, making it the first relevant target to receive such external validation from a Global Systemically Important Bank.
In terms of helping clients transition, in addition to building a sophisticated green and sustainable product framework, Standard Chartered has also established a transition financing framework to accelerate capital investment in transition financing. The bank has set up a team specializing in providing transition financing consulting services for clients in highly carbon-intensive industries, an environmental social and governance consulting team, and a sustainable finance team to assist clients in advancing the process of sustainable development in all aspects, from information disclosure, strategy development to concrete implementation.
Sustainable finance business revenue expected to exceed $1 billion
The global sustainable finance market has grown significantly over the past decade, and Standard Chartered has played a significant role in it. in 2024, its sustainable finance business revenue has reached $982 million and is expected to exceed $1 billion by 2025. In addition, from January 2021 to September 2024, Standard Chartered has provided a cumulative total of US$121 billion in sustainable finance, and has committed to increase total sustainable finance to US$300 billion by 2030.
In Asia, Standard Chartered has helped many companies complete green transformation projects. For example, it has supported Trina Solar to issue the world's first offshore syndicated loan in line with the China-EU Common Classification Catalog for Sustainable Finance, which has promoted the widespread adoption of the market's classification standards for green activities. In the Chinese market, Standard Chartered China has actively tilted its resources towards green and sustainable financial services to meet the growing demand for sustainable development from enterprises, and has promoted a number of “firsts”. Including support for the completion of the first onshore syndicated loan in line with the Sino-European “Common Classification Catalogue for Sustainable Finance”, for Henan Muyuan Grain Trading Co., Ltd. to provide the first sustainable development-linked invoice financing loan, etc., to assist enterprises to enhance sustainable performance, to achieve the green and low-carbon transformation.
Standard Chartered has also committed to mobilizing US$300 billion for green and transition financing by 2030, and is actively involved in the “Belt and Road” projects. 2022, it participated in more than 130 “Belt and Road” projects with a total value of more than US$21 billion. In 2022, it is involved in more than 130 Belt and Road projects worth more than $21 billion, of which about 40% are in line with the Sustainable Development Goals set by the United Nations.
Peer carbon action slows down
While Standard Chartered is firmly on track with its net-zero transition plan, there have been some changes in the global banking industry's carbon actions. Recently, the adjustment of the climate targets of some large international banks has raised concerns.2025 On February 19, HSBC announced that it was abandoning its original target of achieving net-zero carbon emissions across its business by 2030, and setting a new target of 2050.2026 The announcement comes as HSBC's new target of 2050 is to achieve net-zero carbon emissions across its entire business by 2030.2027 This follows the announcement of several Wall Street banking giants, including Goldman Sachs, Wells Fargo, Citigroup, Bank of America, Morgan Stanley, and others, that they were withdrawing from the UN-backed Net Zero Banking Coalition.
The reasons behind the adjustment of these banks' actions are complex, with some banks citing business strategy adjustments, reassessment of the feasibility of their goals, and so on. However, the outside world questioned these changes may affect the global green financial development process and the advancement of the Paris Agreement goals. Against this backdrop, Standard Chartered's insistence on advancing its net-zero transformation program stands out. As a global bank serving the cross-border needs of our clients, we are well aware that the transition to a low-carbon economy offers significant opportunities to accelerate sustainable and enduring growth across all of our markets,” said Standard Chartered's Group Chief Executive, Mr. Wentworth. Whether it's supporting our clients in developing their transition strategies and future business models, developing financing solutions to support innovative technologies, or financing low-carbon infrastructure projects in India, Indonesia, South Africa and elsewhere, these are all important aspects of Standard Chartered's business. These all make business sense and the numbers speak for themselves. As we announced in our 2024 results report, by the end of 2025, Standard Chartered Sustainable Finance is on track to exceed $1 billion in revenue.”
Author:Circle
