Position statements

Power generation

We remain committed to promoting sustainable practices in these sectors, while supporting economic growth and prosperity.

For more detail on our approach to climate risk and impact, please refer to our climate change position statement.

While the Group voluntarily adheres to these non-legally binding position statements, they reflect our aspiration to apply these principles consistently and to conduct our business with the highest standard of ethics and integrity. All staff are required to adhere to the position statements and endeavour to achieve these goals in line with our Group Code of Conduct and to live up to our brand promise of Here for good.

Applicable to

This position statement reflects the sector-specific criteria we assess our clients against when considering providing financial services to power generation industries.

Fossil fuel power refers to the construction, operation and decommissioning of power plants and related infrastructure, that utilise coal, oil or natural gas as fuel. For activities involving the extraction, processing and transportation of coal, oil or natural gas, please refer to our extractive industries position statement.

Nuclear power refers to the construction, operation and decommissioning of nuclear power plants and related infrastructure, including the generation of power using nuclear energy, the provision of equipment, materials, and related technology to the activities listed above, and the management of radioactive waste. For activities involving the extraction, processing and transportation of uranium, please refer to our extractive industries position statement.

Renewable energy refers to power plants and related infrastructure using solar, wind, hydro, geothermal, and wave energy, biofuels and waste to generate power – including energy storage infrastructure.

For all power generation industries, criteria relating to power transmission and distribution are captured by our infrastructure and transport position statement.

Our commitment

As a key part of our mission to be Here for good, we only provide financial services to clients who manage their environmental and social impacts responsibly. The sector-specific criteria in this position statement, along with those in the cross-sector requirements set out the standards we assess our clients against.

We regularly engage with our clients to confirm that they’re aligned with our environmental and social requirements, and consult with industry experts to ensure these stay relevant and effective.

Fossil fuel power

Effective immediately.

We will not provide financial services directly towards:

• New coal-fired power plant projects in any location;
• Any coal-fired power plant expansions, retrofits or dedicated infrastructure, in any location[1]

We will not provide financial services to clients* that are:

• Building new thermal coal infrastructure
• Investing in new or additional thermal coal power-generating capacity
• Acquiring standalone thermal coal power assets.

*This restriction will apply to the client entity pursuing expansion plans and we will exit the relationship subject to contractual arrangements.  Ongoing provision of financial services to the client group will be subject to enhanced due diligence including the following:

• Review of the client group’s transition strategy.
• Confirmation that any financial services provided to the client group will not and cannot be used for thermal coal.
• Support from our Group Responsibility and Reputational Risk Committee (or delegate).

We will only provide financial services to clients who:

• By 2024, are less than 80% dependent on thermal coal (based on % revenue)
• By 2025, are less than 60% dependent on thermal coal (based on % revenue)
• By 2027, are less than 40% dependent on thermal coal (based on % revenue)
• By 2030, are less than 5% dependent on thermal coal (based on % revenue) 

*Standard Chartered remains committed to supporting the transition.  Where a client triggers a threshold but approaches us to provide Transition Finance we will consider our involvement on a case by case basis

In addition, effective immediately, all coal companies in our portfolio will be subject to enhanced due diligence by our Environmental and Social Risk Management, Climate Risk and Reputational and Sustainability Risk teams.

We expect clients to:

• monitor and publicly report greenhouse gas emissions annually in accordance with internationally-recognised methodologies such as the GHG Protocol, and where appropriate set clear targets for reducing greenhouse gas emissions.

[1] Existing projects pursuing GHG emissions reduction technologies i.e. carbon capture, flue-gas desulphurisation, etc will be considered on a case by case basis where there is no extension of the life of the project or capacity expansion. 

Nuclear power

Effective from March 2022.

We will only provide financial services to clients who:

• Demonstrate that their operations do not contribute to the manufacture or distribution of nuclear weapons, and that they have a long-term commitment to the use of nuclear technology and equipment for a peaceful purpose.
• Have nuclear operations in locations where the host country is a signatory to the Treaty for Non-Proliferation of Nuclear Weapons, or has in place appropriate IAEA Safeguard Agreements; and where the country of origin of the materials, equipment and technology is a member of the Nuclear Supplier Group Guidelines.
• Demonstrate compliance with the applicable IAEA Safety Standards and Nuclear Safety Series (including compliance with national nuclear safety law and regulation).
• Use the IAEA Site and External Events Design (SEED) review service for siting of new installations.

We expect clients to:

• Publicly report nuclear safety incidents in-line with the International Nuclear and Radiological Event Scale (INES).
• Participate in nuclear industry associations and guiding principles relevant to their operations, such as the World Association of Nuclear Operators (WANO), the World Institute for Nuclear Safety (WINS), the Nuclear Power Plant Exporters’ Principles of Conduct, and the World Nuclear Transport Institute (WNTI).

Renewable energy

Effective from March 2022.

We expect solar power clients to:

• Follow our Cross-sector Criteria, including alignment with the IFC Performance Standards, EHS Guidelines and applicable Industry Sector Guidelines.

We expect wind power clients to:

• Follow our Cross-sector Criteria, including alignment with the IFC Performance Standards, EHS Guidelines and applicable Industry Sector Guidelines.

We expect hydropower clients to:

• Follow the World Commission on Dams (WCD) Framework for Decision Making.
• Follow the International Hydropower Association’s Hydropower Sustainability Assessment Protocol (HSAP).
• Follow to the IFC Good Practice Note on Environmental, Health, and Safety Approaches for Hydropower Projects.

We expect geothermal power clients to:

• Follow our Cross-sector Criteria, including alignment with the IFC Performance Standards, EHS Guidelines and applicable Industry Sector Guidelines

We encourage all renewable energy clients to:

• Implement appropriate lifecycle and waste management processes aligned to recognised international standards, such as the EU Waste Electrical and Electronic Equipment (WEEE) Directive (2012/19), and the EU Batteries and Accumulators Directive (2006/66).
• Follow applicable industry safety guidance such as the DNV GL Safety, operation and performance of grid-connected energy storage systems (2017).
• For alternative energy plants such generating energy from biofuels2 or waste; design plants to maximise efficiency, minimise plant emissions and manage waste streams responsibly.