Standard Chartered's Transition Plan: Energy and Finance

Standard Chartered has set interim 2030 targets, focussing on 12 high-emission sectors.

The finance giant’s Net Zero Transition Plan provides a science-based framework to decarbonise its lending portfolio while continuing to mobilise capital for sustainable growth across key markets.

To ensure that its targets aren't just attainable but also scientifically verified, the bank has collaborated with EY.

EY has independently verified that these targets hold up under rigorous mathematical scrutiny and are based on robust third-party scenarios.

As the first Global Systemically Important Bank (GSIB) to obtain such external validation, Standard Chartered positions itself at the forefront of science-based emissions reduction in the financial sector.

“We have consciously chosen a science-based approach to our net zero programme to ensure our targets are credible and effective in driving real-world decarbonisation,” says Marisa Drew, Chief Sustainability Officer of Standard Chartered.

Sector-specific targets

The Transition Plan highlights Standard Chartered’s sector-specific targets, with emissions reduction commitments ranging from 22% in the cement sector to 85% in coal by 2030.

The bank is maintaining a 1.5°C-aligned trajectory in aluminium and agriculture while targeting a 47% to 74% reduction in oil and gas emissions intensity.

Acknowledging the challenges posed by emerging markets, where decarbonisation pathways are often less developed, the bank is actively engaging with corporate clients to support their transition strategies.

As of 2024, approximately 55% of the bank’s Transition Priority Clients (TPCs) have yet to set net zero targets.

Standard Chartered plans to intensify engagement efforts, offering ESG advisory services and sustainable finance products to accelerate decarbonisation.

Scaling sustainable finance

A vital component of the Transition Plan involves augmenting sustainable finance with an objective of mobilising US$300bn by 2030.

To date, the bank has successfully channelled US$121bn into green and sustainable initiatives, with revenues from such activities in the year amassing to US$982m.

The Green and Sustainable Product Framework and the Transition Finance Framework ensure that these financial products adhere to stringent industry standards while minimising risks associated with greenwashing.

With more than 40 sustainable finance products already developed, targeting pivotal areas like renewable energies, electric vehicle technology and sustainable agriculture, Standard Chartered's global footprint empowers it to act as a bridge to greener economies, particularly across Asia, Africa and the Middle East.

“As a bank that offers access to sustainable growth opportunities across Asia, Africa and the Middle East, Standard Chartered has an important role to play in supporting our clients and markets as they navigate the complexities of transitioning their economies and businesses,” Marisa explains.

Governance and accountability

The implementation of the Transition Plan falls under the oversight of the Group’s Board, with climate risk and sustainability governance embedded across multiple committees including the Audit Committee, Board Risk Committee and Sustainability Executive Committee.

The Net Zero and Climate Risk Working Forum (NZCRWF) plays a crucial role in assessing client alignment with net zero objectives, ensuring that transition finance strategies remain on track.

The bank has also reinforced its internal capabilities, embedding sustainable finance expertise within its corporate banking teams.

Relationship managers now receive climate risk training, and emissions data is integrated into client engagement strategies to enhance decision-making.

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