London – Standard Chartered PLC “the Group” today released its Taskforce on Climate-related Financial Disclosures (‘TCFD’) report, detailing progress against its commitment to align its lending portfolio with the goals set by the Paris Agreement of limiting global warming to significantly below 2 degrees.
In September 2018, the Group announced steps it is taking to measure, manage and ultimately reduce the emissions related to its activities and those related to the financing of its clients. The TCFD report demonstrates how the Group is assessing the current alignment of its portfolios to global emissions and how it will extend this work to ultimately set targets for these and other sectors. It also describes the steps taken to enhance the Group’s capabilities and governance for climate risk management.
The Group is supporting its clients transition to a low-carbon future by increasing its target for financing and facilitating of clean technology and renewables to $35 billion by 2025, focused on emerging markets. Emerging markets will be the most affected by climate change and have the greatest opportunity to leapfrog to new low-carbon technology but there has not been sufficient investment into this sector across emerging Asia, Africa and the Middle East. The Group wants to be part of the solution in bridging what the UN estimates to be a $2.5 trillion a year funding gap.
Furthermore, the Group is today announcing that it will only support clients who actively transition their business to generate less than 10% of earnings from thermal coal by 2030. The Group recognises, however, that transitioning to clean technology will require significant changes across our markets, and because of that has chosen to implement this decision on a phased basis, using set milestones, beginning 1 January 2021.
These new restrictions apply to all products and services offered by the Group and are in addition to its prohibition on direct financing for new coal-fired power plants announced in September 2018. The Group can also confirm that it will withdraw from three projects that it had agreed to fund before this prohibition.
Bill Winters, Group Chief Executive, commented: “We are taking bold and ambitious actions in support of the Paris Agreement, being the first bank active in emerging markets to confirm that we will be out of thermal coal by 2030 and set a massively increased target for helping our clients transition into low-carbon technologies. Our footprint and expertise mean we are uniquely well-positioned to support this transition.
“There is still much work to be done to ultimately reduce the emissions generated by our financing activities, but we are making good progress toward doing so and are determined to continue to leverage our strong position across our markets to bring the required capital for sustainable development to where it matters most.”
This announcement forms part of the Group’s position statements which outline the conditions under which it will support the activities of clients which operate in sectors that have a high potential environmental or social impact.
The Group has a broad range of sustainable finance product offerings that can be deployed to help clients pivot their business towards a more sustainable model. In October 2018, it created the Sustainable Finance team, which has since launched sustainable deposit products in London, Singapore, Hong Kong and New York; plus, a €500m Sustainability Bond, the proceeds of which will be used to provide finance in areas aligned with the United Nations Sustainable Development Goals – including clean energy projects, smaller business lending and microfinance loans.
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For further information please contact:
Executive Director, Group Media Relations
Standard Chartered Bank
Tel: +44 20 7885 5934
Note to Editors
*On an EBITDA (earnings before interest, tax, depreciation and amortisation) basis.