Standard Chartered has pledged to cut the emissions linked to the bonds it arranges for oil and gas companies, reaffirming its commitment to a net-zero strategy despite a broader trend of banks reconsidering their climate commitments.
The London-listed bank announced on Friday that it aims to reduce emissions from these bond deals by 26.9% by 2030, as part of its broader sustainability strategy. The announcement coincided with the bank reporting an 18% rise in annual profit and unveiling a $1.5 billion share buyback programme.
While most major banks have set targets for reducing emissions associated with their lending activities, only a few have committed to facilitated emissions—those linked to underwriting and arranging finance for high-carbon industries. Standard Chartered’s new target is currently limited to the oil and gas sector, a key focus for environmental campaigners pushing for stronger climate action across the financial industry.
CEO Bill Winters reaffirmed the bank’s commitment to reaching net-zero by mid-century, stating that its clients remain focused on decarbonisation efforts.
“Why are we so successful in the space? Because we focused on it, because our clients need us,” Winters told analysts. “Our clients are in transition to net zero. That’s unabated despite some of the challenges.”
The bank’s sustainable finance business generated nearly $1 billion in income last year, underscoring the commercial viability of its climate-focused strategy.
Standard Chartered’s decision comes at a time when some of its peers are scaling back climate commitments. Earlier this week, HSBC announced it was delaying its net-zero emissions target by 20 years, now aligning with Standard Chartered’s 2050 timeline. HSBC also confirmed it would review its financed emissions targets and policies in 2025, signalling a potential shift in strategy.
Despite its continued support for fossil fuel producers, Standard Chartered has published its first transition plan, outlining its pathway to net zero and how it intends to assist clients in achieving the same goal. The bank, which primarily operates in developing markets, will maintain its role in financing traditional energy sectors while also driving sustainable finance initiatives.
