Standard Chartered has outlined its strategy for integrating climate considerations into its operations and financing activities as it moves towards net zero commitments. The bank’s newly published Transition Plan details its approach to reducing financed emissions to net zero by 2050 and achieving net zero in its own operations by 2025.
The plan sets out measures for corporate engagement and sustainable finance initiatives, with a particular focus on financed emissions—those linked to high-emitting clients. The bank aims to support businesses in adopting low-carbon solutions while driving investment in clean energy and sustainable infrastructure.
Group Chief Executive Bill Winters described the shift to a low-carbon economy as a major opportunity for economic growth. He highlighted the bank’s role in financing emerging technologies and low-carbon infrastructure, particularly in key markets such as India, Indonesia, and South Africa.
Marisa Drew, Chief Sustainability Officer, underscored the urgency of the transition, describing the plan as a key milestone in the bank’s net zero roadmap, first outlined in 2021. She stressed the importance of balancing climate action with economic sustainability.
The plan aligns with international frameworks, including guidelines from the Transition Plan Taskforce (TPT), the Glasgow Financial Alliance for Net Zero (GFANZ), and the Net-Zero Banking Alliance (NZBA). Interim decarbonisation targets for 2030 have been set across 12 high-emitting sectors in the bank’s portfolio.
Standard Chartered has adopted a science-based approach to setting and validating its targets. Dana Barsky, Global Head of Sustainability Strategy and Net Zero, said the bank had engaged external auditors EY to assess its targets for sectors including aluminium, automotive, cement, oil and gas, power, and steel. The review confirmed alignment with the Paris Agreement’s long-term temperature goals, making Standard Chartered the first Global Systemically Important Bank to receive such external validation.
The bank’s latest financial results indicate progress in sustainable finance, with $982 million generated in 2024, moving towards a $1 billion target for 2025. Since January 2021, it has mobilised $121 billion in sustainable finance, working towards a commitment of $300 billion by 2030. It has also become an early adopter of the Taskforce on Nature-related Financial Disclosures (TNFD).
A key measure in the Transition Plan is an absolute facilitated emissions target for oil and gas, requiring a 29% reduction in absolute financed emissions by 2030, based on a 2020 baseline. The bank has also completed decarbonisation targets for all 12 high-emitting sectors covered by the NZBA framework.
Governance mechanisms have been established to ensure oversight and accountability, covering decision-making processes, net zero calculations, and client engagement strategies. The plan is intended to align the bank’s activities with global climate objectives while maintaining a focus on economic transition.
