Standard Chartered is making major strides in sustainable finance as revealed in its latest report. THe bank generated $982 million in income from this sector in 2024, which is a 36% rise from last year. It brings the bank closer to its goal of reaching $1 billion in annual sustainable finance income by 2025.
This growth reflects the bank’s strong commitment to financing the transition to a low-carbon economy. Its sustainable finance lending and financing solutions rose to $507 million in 2024, up from $386 million in 2023, per the bank’s 2024 annual report.
Meanwhile, sustainable finance transaction services surged by 58% to $319 million. Payments and liquidity-based services jumped by 82%. These figures show that more businesses want climate-friendly financial solutions. They are looking to decarbonize.
A $300 Billion Commitment to Sustainability
Standard Chartered is improving its overall financing commitments, not just its annual income. The bank has pledged to mobilize $300 billion in sustainable finance by 2030.
As of the end of 2024, it had already reached $121 billion, demonstrating steady progress toward its long-term target. This financing supports projects in renewable energy, green infrastructure, and other climate-positive initiatives.
The bank’s sustainable finance portfolio expanded to $23.3 billion, with 78% of assets located in Asia, Africa, and the Middle East.
Marisa Drew, Standard Chartered’s Chief Sustainability Officer, underscored the importance of this financing, stating,
“The opportunity to finance the transition to a low-carbon economy is more compelling and crucial than ever… The scope for further sustainable finance growth is significant as new technologies come online and as renewable capacity growth continues to outpace that of fossil fuels.”
So, how does the bank advance with its own sustainability and net zero commitment?
Banking on Carbon: Standard Chartered’s Commitment to Net Zero
Standard Chartered is not only growing financially but also working hard to cut its carbon footprint toward net zero.
In 2024, the bank achieved a 28% decrease in Scope 1 and 2 emissions, reducing total emissions to 24,968 tCO₂e.
The bank has set a target to reach net zero in its financed emissions by 2050. To achieve this, it has set interim targets for its highest-emitting sectors. It also shared its strategy in a new transition plan.
One of the most notable commitments is the goal to reduce emissions from capital markets activities in the oil and gas sector by 26.9% by 2030. This makes the financier one of the few global banks to set such a target.
Oil and gas represent the majority of Standard Chartered’s facilitated emissions, making this a critical area for action. The bank has set financed emissions targets for agriculture. Now, all 12 of its highest carbon-emitting sectors have clear reduction goals.
Sector-Specific Emission Reduction Targets
Standard Chartered aims for net zero by setting sector-specific targets. These targets align with global climate goals. Some of its key commitments include:
- Oil & Gas: Aiming for a 29% reduction in absolute financed emissions by 2030 and 100% by 2050. This includes a new emissions target. It aims to cut emissions from capital market activities in the sector by 26.9% by 2030.
- Power Generation: Targeting a 63% reduction in emissions intensity by 2030. The bank is also working to boost support for renewable energy projects. These projects are set to help lower carbon intensity even more.
- Metals & Mining: Aiming for a 32% reduction in financed emissions by 2030. Standard Chartered is partnering with clients in this sector. Together, they aim to adopt sustainable mining practices and improve energy efficiency.
- Automotive Manufacturing: Committed to a 67% drop in emissions intensity by 2030. The bank is boosting funding for electric vehicle (EV) production. This supports manufacturers in moving away from fossil fuel-powered cars.
Standard Chartered has also set interim goals for other high-emitting sectors. This includes agriculture and real estate. They aim to make sure their financing helps reduce emissions in many industries.
Differentiating from Industry Peers
Standard Chartered stays committed to its sustainability goals, even as some banks rethink their climate targets. HSBC and other competitors have pushed back their net-zero targets. They say this is due to slow progress on the global transition.
Standard Chartered is growing its sustainable finance efforts. It is also strengthening its emission reduction strategies.
CEO Bill Winters reinforced this commitment during an analyst call, stating,
“Why are we so successful in the space? Because we focused on it, because our clients need us… Our clients are transitioning to net zero. That’s unabated despite some of the challenges.”
Driving the Green Transition with Impactful Financing
Standard Chartered’s sustainable finance initiatives are already making an impact worldwide. The bank plays a key role in funding renewable energy projects. It also supports green bonds and climate-friendly investments in various regions.
The chart below shows the trend in sustainable bond issuances worldwide, hitting $1 trillion this year.
The British bank’s financing helps businesses move to cleaner energy. It also improves access to green technologies and boosts innovation in the fight against climate change.
With a clear strategy, ambitious targets, and substantial financial backing, Standard Chartered is positioning itself as a leader in sustainable banking.
The bank is ramping up its efforts and is on track to hit its $1 billion sustainable finance income target by 2025. At the same time, it is making good progress on its net zero roadmap.
As demand for sustainable financing grows, Standard Chartered’s role will become even more critical. Its leadership in mobilizing capital for climate solutions will help accelerate the transition to a low-carbon economy, ensuring a more sustainable future for businesses and communities worldwide.