TIDMSTAN
RNS Number : 5790Q
Standard Chartered PLC
28 October 2021
Standard Chartered announces interim targets and methodology
for pathway to net zero by 2050
-- 2030 interim targets to reduce financed emissions for thermal coal mining,
oil and gas, and power
-- Plan to mobilise USD300 billion in green and transition finance by 2030
LONDON, 28 October 2021 - Standard Chartered (the Group) today
announced ambitious new targets to reach net-zero carbon emissions
from its financed activity by 2050, including interim 2030 targets
for the most carbon-intensive sectors. The Group's approach is
based on the best data currently available and aligns to the
International Energy Agency's Net Zero Emissions by 2050 scenario
(NZE).
Whilst 33 of our 59 footprint markets do not at present have a
commitment to reach net zero by 2050, we are setting out our plan
for this timeline, recognising the pivotal role we can play in the
transition. Many of these markets are currently reliant on
carbon-intensive industries for their continued economic growth.
Achieving a just transition - one where climate objectives are met
without depriving developing countries of their opportunity to grow
and prosper - will require capital and specialised support. We are
uniquely placed to help by directing capital to markets that have
both the greatest opportunity to adopt low-carbon technology, and
some of the toughest transition-financing and climate
challenges.
Our net-zero approach has three aims:
Reduce the emissions associated with our financing activities to
net zero by 2050, setting 2030 interim targets in our most
carbon-intensive sectors
Our current estimate of in-scope baseline emissions from our
corporate client base as at year-end 2020 is 45.2 million metric
tonnes of carbon dioxide equivalents, associated with USD74.8
billion of assets (or 77% of our total drawn on-balance-sheet
financing exposure of USD97.3 billion to corporate clients). There
is currently insufficient available data to accurately reflect the
financed emissions of the remaining 23 per cent of our in-scope
corporate lending assets.
We will stop financing, at an individual client entity level
(e.g. subsidiaries), companies that are expanding in thermal coal.
Ongoing provision of financial services to the client group will be
subject to enhanced due diligence. We aim to reduce absolute
financed thermal coal-mining emissions by 85% by 2030, in addition
to the existing prohibition on financing new or expanding
coal-fired power plants. By 2030 we will only provide financial
services to clients who are less than 5% dependent on revenue from
thermal coal.
As we expand our green and transition finance, we are targeting
2030 reductions in revenue-based carbon-intensity (i.e. the
quantity of greenhouse gas emitted by our clients per USD of their
revenue) of:
-- 63% for power
-- 33% respectively for steel and mining (excluding thermal coal mining)
-- 30% for oil and gas
While the NZE foresees a decline in fossil-fuel production,
progress won't be linear and production of some fossil fuels may
rise before it comes down in our markets, e.g. gas as it replaces
more carbon-intensive alternatives such as coal in the transition
phase.
By the end of 2022 we expect all clients in the power
generation, mining and metals, and oil and gas sectors to have a
strategy to transition their business in line with the goals of the
Paris Agreement.
Having already covered nearly two-thirds of our in-scope
financed emissions, targets for remaining carbon-intensive sectors
will be announced in line with current guidelines from the Net Zero
Banking Alliance, before the first quarter of 2024.
We are sharing our methodology transparently in a white paper to
help collective learning and encourage discussion and debate. As
standards and methodologies evolve, and data quality and
availability improve, we will refine our emissions calculations
further. To ensure transparency, we report yearly on progress, in
detail, as part of the Task Force on Climate-Related Financial
Disclosures process.
Catalyse finance and partnerships to scale impact, capital and
climate solutions to where they are needed most, including a plan
to mobilise USD300 billion in green and transition finance
Our new Transition Finance Framework sets out how our transition
finance will be governed by alignment to the NZE and a set of
well-defined principles that help guide our clients onto a
low-carbon pathway.
Accelerate new solutions to support a just transition in our
markets, including a new dedicated Transition Acceleration Team to
support clients in high-emitting sectors, and launch sustainable
products
The Transition Acceleration Team will provide our clients in
carbon-intensive sectors with deep expertise on how to accelerate
their low-carbon transitions, and tools to measure their
progress.
We will launch a Universal Climate Finance Loan to incentivise
clients to outpace national decarbonisation rates, as well as
sustainable retail products such as green mortgages in key markets.
In wealth management, by 2025 we aim to double sustainable
investing assets under management and integrate environmental,
social and governance considerations into our advisory
activities.
José Viñals, Group Chairman, commented: "Following engagement
with clients, shareholders and NGOs, we are today setting out our
methodology for how we intend to reach net zero by 2050.
We are motivated by a belief that we can and must address the
need for decarbonisation as a result of greater climate-related
risks, which increase financing costs and hamper emerging markets'
long-term economic prospects."
Bill Winters, Group Chief Executive, added: "We're confident
that we're on a science-based trajectory toward net-zero financed
emissions by 2050 that is consistent with the Paris Agreement.
As we reduce the emissions associated with our financing
activities to net zero, we will also tackle financial barriers to
the transition, including by making more green and transition
finance available. This will help clients on a path to net zero
while maximising the benefits of a just transition for people and
communities."
More information on our approach can be found on our
website.
--ENDS--
Media contacts:
Julie Gibson
Email: Julie.Gibson@sc.com
Phone: +44 20 7885 2434
Shaun Gamble
Email: Shaun.Gamble@sc.com
Phone: +44 20 7885 5934
Investor relations contact:
Gregg Powell
Email: Gregg.J.Powell@sc.com
Phone: +852 2820 3282
About Standard Chartered Bank
We are a leading international banking group, with a presence in
59 of the world's most dynamic markets and serving clients in a
further 85. Our purpose is to drive commerce and prosperity through
our unique diversity, and our heritage and values are expressed in
our brand promise, here for good.
Standard Chartered PLC is listed on the London and Hong Kong
Stock Exchanges.
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