Standard Chartered sustainable finance income up 36% in 2024

Standard Chartered bank is on track to generate at least US$1 billion in sustainable finance income by the end of this year, with revenue from this segment up 36% in 2024.

Sustainable finance was the bank’s fastest-growing income stream last year, ahead of wealth solutions (29%), global banking (15%) and net interest revenue (11%).

Commenting on the bank’s full-year 2024 results and sustainability income growth, Chief Sustainability Officer Marisa Drew said “the numbers speak for themselves”. 

“The opportunity to finance the transition to a low-carbon economy is more compelling and crucial than ever, and 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, whether we’re financing adaptation and resilience in our markets, or supporting and accelerating emissions mitigation.”

Standard Chartered mobilised US$121 billion in sustainable finance since the beginning of 2021 (on track to meet its US$300 million target by 2040), and this generated revenue of US$920 million so far. 

Sustainable finance is allocated to projects that preserve biodiversity, nature or the environment, avoid or decrease GHG emissions, have a social purpose or incentivise sustainability objectives (what’s known as sustainability-linked finance).

Standard Chartered climate transition plan

The bank published its inaugural climate transition plan this year alongside its annual report, outlining the key steps it plans to take to achieve its goals (not validated by the Science Based Targets Initiative) of net zero Scope 1 and 3 emissions by 2025, and net zero financed emissions by 2050.

It has set interim 2030 targets for 12 high-emitting sectors as defined by Net Zero Banking Alliance (NZBA) Guidance, including a 29% reduction in oil and gas financed emissions and 46-67% reduction for the power sector.

It is now working on setting targets for its capital market emissions based on the guidance released by the Partnership for Carbon Accounting Financials (PCAF) in 2023.

Financed emissions represent 98.4% of Standard Chartered’s overall carbon footprint.

Standard Chartered: Early adopter of TNFD recommendations

The bank is also an early adopter of the recommendations of the Taskforce for Nature-Related Financial Disclosures (TNFD), which guides the way companies and financial institutions can report on their nature impacts.

“Building on our ambition to shift financial flows towards nature-positive outcomes, Standard Chartered also partnered with The Government of The Bahamas, The Nature Conservancy, the Inter-American Development Bank (IDB), and other financial partners to launch an innovative debt conversion, expected to generate US$124 million for marine conservation,” Drew added.