As part of plans towards achieving net zero carbon emissions, the Standard Bank Group has published its climate policy, setting out progressive short, medium, and long-term targets to accelerate its sustainable finance commitments, with a focus on renewable energy projects across Africa.
Africa’s largest bank by assets, Standard Bank Group Limited is planning to raise about 300 billion Rand or $20 billion by 2026 to fund renewable projects, disclosed Sim Tshabalala Chief Executive Officer Standard Bank Group.
The group pledged to achieve a net zero carbon emission’s target in its own operations by 2040 and from its portfolio of financed emissions by 2050, in line with the Paris Agreement.
The company, in a statement on its website, noted that it is substantially increasing support for the financing of renewable energy and the use of sustainable finance instruments. It added that the company plans to reduce group advances to upstream oil by 5% by 2030 and as well, limit exposure to thermal coal to 0.7% of group loans and advances in 2021 and to 0.5% by 2030.
“As Africa’s largest bank by assets, not only do we feel strongly compelled to act responsibly, but we also understand that we can make a significant positive impact.
“To achieve our purpose to drive Africa’s growth, our core business activities are being directed towards solving Africa’s development challenges and maximising opportunities for sustainable and inclusive growth, while also managing the risks posed by climate change,” Sim Tshabalala, Chief Executive of Standard Bank Group said.
“Having said that, our long-term goal is clear. The Standard Bank Group will achieve a portfolio mix that is net zero by 2050. That will entail reducing our financed emissions and simultaneously scaling up our financing of renewables, reforestation, climate-smart agriculture, decarbonisation and transition technologies, and supporting the development of credible carbon offset programmes”, Tshabalala added.
The group added that it will partner with clients and stakeholders to support their transitions and the national climate commitments of the countries in which the Group conducts business. According to the group, climate targets and commitments will also be set in additional sectors including insurance, residential and commercial property, and transportation over the next two to three years.
“In line with our values, we will be transparent in our decision-making, and we commit to annually report on our action plans and progress toward achieving our climate targets. We will also review our targets and commitments on a three-year cycle and in accordance with current climate science and aligned to the Task Force on Climate-Related Financial Disclosures (TCFD) principles”, Chief Executive: Corporate and Investment Banking at Standard Bank Group, Kenny Fihla said.
Meanwhile, the group resolved that there will be ‘no financing for new oil-fired power plant construction or expansion in the generating capacity of existing oil-fired power plants, except where such plants provide support services as part of an integrated renewable energy power plant’.
