International banking group Standard Chartered announced that it achieved $982 million in income from sustainable finance in 2024, up 36% year-on-year.
The announcement, made alongside the bank's 2024 annual report, marks a major step towards its goal of generating $1 billion in annual income from sustainable finance by 2025.
Key growth areas
The annual report highlighted key areas of growth for sustainable finance over the past year, with the most significant increase coming from banking. Sustainable finance lending and financing solutions are expected to reach $507 million in 2024, up from $386 million the previous year.
In addition, the bank also recorded strong growth in sustainable financial transaction services, up 58% to USD 319 million, mainly due to an 82% increase in payment and liquidity services.
Progress in sustainable finance
Standard Chartered also reported significant progress towards its goal of mobilizing $300 billion in sustainable finance by 2030, with the figure reaching $121 billion by the end of 2024.
Comment from the Director of Sustainability
In the report, Standard Chartered's Chief Sustainability Officer, Marisa Drew, said:
“The opportunity to finance the transition to a low-carbon economy has never been more compelling or important… The potential for sustainable finance to grow is huge as new technologies are deployed and as renewable energy capacity continues to outpace fossil fuels.”
Commitment to climate goals
Alongside the sustainable finance results, Standard Chartered also reaffirmed its commitment to its climate goals, including a target to achieve net zero emissions across its finance portfolio by 0. The bank also published its first transformation plan, detailing its strategy to achieve its net zero emissions targets.
Notably, Standard Chartered has announced a target to reduce emissions from its oil and gas-related capital markets activities by 26,9% by 2030, setting its first supported emissions target. Oil and gas currently account for the majority of emissions from the bank’s supported portfolio.
The bank has also announced intermediate emissions targets for the agriculture sector, with targets now set for all 12 of the highest carbon-emitting sectors.
Compare with competitors
Standard Chartered’s new net zero emissions financing targets come as other banks have pulled back on climate finance commitments. Earlier this month, HSBC announced it was reviewing its 2030 financing emissions targets and delaying its net zero emissions target due to slow global progress.
Affirmation from CEO
On a conference call with analysts to discuss annual results, Standard Chartered CEO Bill Winters said the bank continued to see strong demand from clients, driven by its decarbonisation initiatives.
Mr. Winters said:
“Why are we successful in this area? Because we focus on it, because our customers need us… Our customers are transitioning to net zero emissions. This is not interrupted despite some challenges.”