Standard Chartered Achieves $982M in Sustainable Finance

Standard Chartered, a top-tier international banking group, has made a major milestone in its sustainable finance operations, recording a total of $982 million in sustainable finance income in 2024. The figure is a strong 36% year-on-year increase, further positioning the bank towards its aggressive target of making $1 billion per annum in sustainable finance income within 2025. The bank's 2024 annual report identified the areas leading this growth and highlighted the significance of sustainable finance within the bank's overall strategic vision.

Perhaps one of the biggest achievements in the sustainable finance performance of Standard Chartered was its remarkable increase in banking services. The bank's financing and lending solutions under its sustainable finance product grew to a whopping $507 million in 2024 compared to $386 million in the same period in the previous year. This surge in lending was an indication that the demand for green financial services and products increased, with clients wanting sustainable offerings for their finance requirements. In addition, the bank witnessed a steep rise in sustainable finance transaction services, which grew 58% in 2024 to $319 million. The increase was predominantly due to an 82% surge in payments and liquidity-based services, which are critical to helping businesses navigate the shift towards a low-carbon economy.

In addition to its strong growth in income, Standard Chartered also announced advancement toward its more general sustainability aims, most notably its goal to mobilize $300 billion of sustainable finance by 2030. During 2024, the bank had already mobilized $121 billion toward this objective, displaying considerable momentum in the pursuit of a sustainable financial future. Marisa Drew, Chief Sustainability Officer at Standard Chartered, stressed the imperative for financing the move to a low-carbon world. She told us that growth in sustainable finance is "compelling and crucial," as fresh technologies and growing capacity of renewables are ahead of fossil fuel development.

To the accomplishment of financial goals, Standard Chartered also reaffirmed its pledge to addressing climate change, more specifically on meeting its 2050 goal for net-zero financed emissions. The bank likewise presented its first transition plan outlining its approach toward attaining its lofty objectives. One of the most important elements of this transition strategy is the bank's goal to cut emissions from capital markets activities in the oil and gas industry by 26.9% by 2030. The oil and gas industry is responsible for most of the emissions in Standard Chartered's facilitation portfolio, so this is an important move towards its goal of aligning its financial activities with international climate objectives.

The bank's efforts are not restricted to the oil and gas industry alone. Standard Chartered also published an interim financed emissions goal for the agricultural industry, a major milestone towards reducing emissions from high-carbon sectors. The bank now has targets in all 12 of its highest emitting industries, making a clear road map towards achieving its net-zero financing ambitions. This is particularly significant considering that a number of Standard Chartered's peers, including HSBC, have already reconsidered their climate goals or postponed their net-zero ambitions because of the hurdles of global transition.

CEO Bill Winters, while discussing the bank's annual results on a call with analysts, emphasized the significance of sustainable finance in Standard Chartered's strategy. He cited that the bank's success in the field of sustainable finance is due to its targeted approach as well as the bank's ability to respond to the changing needs of its clients, many of whom have a commitment to decarbonizing their businesses. Winters stressed that even amid challenges in the global transition, demand for sustainable finance is high, with clients understanding the imperative of aligning their businesses with climate objectives.

Standard Chartered's leadership in sustainable finance and climate action makes the bank a pioneer in the financial industry's transition to sustainability. By coordinating its financing approach with the international drive toward a low-carbon economy, the bank not only enhances its financial strength but also contributes to the overall effort to address climate change. The increase in sustainable finance revenue, together with the bank's ongoing pursuit of aggressive emissions targets, underlines Standard Chartered's commitment to creating positive environmental change while delivering value to its customers and shareholders.

Financial institutions such as Standard Chartered have a critical role to play as the world is put under more pressure to solve the climate crisis. The bank's 2024 results show the increasing opportunities of sustainable finance and its capacity to boost long-term growth. Going forward, Standard Chartered is in good position to meet its target of $1 billion a year in sustainable finance annual income by 2025, further positioning it as a leader in the global transition towards a low-carbon economy.