Standard Chartered unveils first transition plan, hails almost $1bn of sustainable finance income – EQ

In Short : Standard Chartered has launched its first transition plan, targeting net-zero emissions by 2050 and aiming to cut financed emissions in high-impact sectors. The bank reported nearly $1 billion in sustainable finance income, driven by green bonds and renewable energy financing. It plans to mobilize $300 billion by 2030, emphasizing transparency and aligning with global climate goals to support a low-carbon economy.

In Detail : The document reaffirms the business’s commitment to reach net-zero operational emissions by 2025 and bring financed emissions to net-zero by 2050. Operational emissions account for 0.1% of Standard Chartered’s total emissions footprint while financed emissions account for more than 98%.

Interim financed emissions targets have been set for high-carbon, hard-to-abate sectors, namely aluminium, automotive manufacturing, agriculture, aviation, cement, commercial real estate, oil and gas, power, shipping, steel, coal and residential mortgages.

Standard Chartered’s transition plan just days after competitor HSBC pushed back a 2030 target for net-zero emissions across its operations and supply chains to 2050. Instead, it will aim for a 40% reduction against a 2019 baseline.

HSBC will also review its sector-specific targets for reducing financed emissions.

“The transition to a low-carbon economy is both more compelling and crucial than ever,” said Standard Chartered’s chief sustainability officer Marisa Drew.

“This Transition Plan represents an important milestone as we continue to deliver against our Net Zero Roadmap, which we published in 2021 and remains unchanged. It speaks to the collaborative efforts of teams across the bank and will serve as a fundamental catalyst for delivery, translating our commitments into a framework for operationalising and executing on our net-zero agenda.”

Sector-specific engagement

Transition plans go beyond detailing emissions targets by setting out the steps which businesses are taking to deliver them, including alterations to their business models, spending plans and strategies for training and managing staff.

On the latter, Standard Chartered’s plan states that more than 20,400 colleagues have completed initial training on sustainability issues since this was introduced in 2022. More in-depth training has been provided to those providing advisory services to clients.

Information on engaging Standard Chartered’s clients forms a key part of the 71-page document. It states that its Corporate and Investment Bank arm has assessed the transition plans of around 4,000 clients.

In its assessment approach, the bank Prioritised ‘Transition Priority Clients’ – those whose emissions reductions will be “essential” to the delivery of Standard Chartered’s 2030 and 2050 targets. The bank looked not only at the presence of plans but decarbonisation access to date and financial strength, including the ability to finance the CAPEX required to transition.

Of the Transition Priority Clients assessed to date, 43.3% disclosed insufficient information, 31.2% already have a transition plan deemed ‘credible’ and 25.4% have transition plans which ‘need improvement’.

Of the priority sectors, credibility is worst in the cement sector. More than 80% disclose insufficient information and of those with a plan, all need improvement.

Exposure to the priority sectors and subsequent financed and facilitated emissions are tracked every quarter, the plan states. Data on progress should be reported annually going forward.

Targets to cut financed emissions in coal and oil and gas are absolute. Those for other sectors are intensity-based.

Transition plans additional detail how the senior executive manages climate and transition-related risks and prepares to maximise opportunities.

On opportunities, the confirms that Standard Chartered has mobilised $121bn of financing for ‘sustainable’ activities since 2021, as it works towards mobilising $300bn cumulatively by 2030.

The bank further generated $982m of income from sustainable finance activities in 2024. This puts it on track to achieve a 2025 target of $1bn.

Standard Chartered’s Group CEO Bill Winters 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.

“Whether we’re supporting clients with their transition strategies and business models of the future, developing solutions to finance new innovative technologies, or financing infrastructure projects in India, Indonesia, South Africa, and beyond – it is important business for Standard Chartered. It makes commercial sense, and the numbers speak for themselves.”