Standard Chartered Sets Bold Net-Zero Targets By 2050

Standard Chartered has launched its comprehensive Transition Plan, setting out how it will reach net zero in its financing activities by 2050 and in its operations by 2025. It is the sole Global Systemically Important Bank (GSIB) to have external validation of its net-zero ambitions. The plan highlights embedding climate considerations into every facet of its business while continuing its sustainable finance commitment.

While the financial sector is experiencing a change of heart on climate commitments, Standard Chartered is unwavering in its membership of the Net-Zero Banking Alliance (NZBA), standing out from big banks such as Bank of America, Morgan Stanley, and JPMorgan, which have just backed out of the group. The bank views a shift to a low-carbon economy as a strategic imperative to spur sustainable and long-term growth.

Bill Winters, Standard Chartered's Group Chief Executive, emphasized the importance of this change, saying, "The shift to a low-carbon economy offers a major opportunity to drive sustainable and long-term growth in our markets."

Leading in Sustainable Finance

The bank's initiatives in sustainable finance are already reaping their rewards. It has earned $982 million in sustainable finance revenue in 2024 and is poised to exceed $1 billion by 2025. Moreover, between 2021 and 2024, Standard Chartered has mobilized $121 billion worth of sustainable finance and is looking to raise this amount to $300 billion by 2030.

One of the best things about the Transition Plan is that it aims to finance emissions, particularly in sectors with high emissions. It has a goal to reduce oil and gas financed emissions by 29% absolutely by 2030, showing a science-driven ambition consistent with the Paris Agreement goals.

Marisa Drew, Standard Chartered's Chief Sustainability Officer, reiterated the bank's position in enabling the transition for its customers by saying, "We believe Standard Chartered has an important role to play in supporting our clients and markets as they navigate complicated transition challenges."

External Validation and a Science-Based Approach

In contrast to several other banks that have committed to ambitious climate goals without independent assurance, Standard Chartered went the extra mile of obtaining independent confirmation from EY. The company confirmed the bank's 12 high-emitting sectors' net-zero goals, such as Aluminium, Automotive, Cement, Oil & Gas, and Steel. This third-party verification adds transparency and accountability, strengthening the validity of Standard Chartered's sustainability goals.

Dana Barsky, Global Head of Sustainability Strategy and Net Zero, emphasized the importance of this recognition, stating, “We’re pleased to say that Standard Chartered is the first GSIB to have such external confirmation of its targets.”

Building a Future-Ready Bank

The Transition Plan of the bank is not merely goal-setting but the deployment of a strong governance system to ensure that these pledges are turned into tangible action. Through integrating climate thinking into its core business model, Standard Chartered intends to develop a clear, responsible, and well-organized framework for attaining its sustainability goals.

In addition, its cross-border capability and wealth management expertise make it a market leader in international sustainable finance. With financial institutions being put under the spotlight by regulators, investors, and society as a whole, Standard Chartered's early action is indicative of its willingness to stay ahead of the curve on green finance.

With robust financial milestones, science-informed transition strategy, and unrelenting commitment to funding a low-carbon future, Standard Chartered is leading the way in the banking industry's trajectory towards sustainability.