British multinational financial services company Standard Chartered will invest $75 billion to reduce the impact of its operations and customers’ on the environment through 2024.
The $75 billion, part of the bank’s Sustainability Aspirations, will be divided into two:
- $40 billion will be directed into financing services for infrastructure that promotes sustainable development.
- $35 billion of project financing services, merger and acquisition advisory and debt structuring services for renewable energy projects.
Standard Chartered plans to become net-zero across its global properties by 2030 across 60 countries.
The bank plans to achieve the sustainability commitment by only sourcing energy from renewable sources and continuing to pursue energy efficiency measures across its 12 million square feet of property.
Tracey McDermott, Group Head, Corporate Affairs, Brand & Marketing, said: “Over the past 18 months, we have made a series of commitments which are all geared towards supporting the Paris Agreement on climate change and the transition to a cleaner, greener, fairer economy. We know that the investment required cannot be provided by governments and NGOs alone, so it is critical that investors embrace the Sustainable Development Goals at pace and scale.
“Our unique footprint means we are well placed to help get finance to where it matters most. That is why, as well as ceasing support for clients who generate more than 10% of earnings from thermal coal by 2030, we also have a renewed target for financing and facilitating $35 billion of clean technology and renewables, and $40 billion of sustainable infrastructure.”
Sunil Kaushal, Regional CEO for Standard Chartered, Africa and the Middle East, said: “It is estimated that emerging markets need an annual USD2.5 trillion investment to meet the SDG targets by 2030. A bulk of this investment will need to be focused on Africa and the Middle East, which is home to some of the key sustainable development opportunities. The financing gap in Arab countries has been estimated to be over USD 100 billion annually , whilst in Africa this figure stands between USD 500 billion and USD 1.2 trillion . For the goals to be met by 2030, investors and banks need to coordinate and connect capital to promote sustainable development.”
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“With our unique footprint into emerging and developing markets, we can use our banking knowledge, people, and products to catalyse capital to where it matters most for SDG financing. Africa and Middle East region is home to some of the world’s fastest-growing economies, though we also face some of the world’s most pressing environmental and social issues. Our ability to solve for the issues here will have tremendous impact on our 2030 ambition to meet global SDGs.”