Standard Bank outlines net-zero goals, targets 300B rand for sustainable finance

South Africa-based Standard Bank Group Ltd. committed to raise between 250 billion rand and 300 billion rand for sustainable finance by 2026 as part of its wider long-term goal to achieve net-zero emissions.

In its climate policy published March 16, the lender laid out targets to reduce its contribution to carbon emissions and accelerate its sustainable finance commitments with a focus on renewable energy projects across Africa. Standard Bank aims to reach net-zero emissions in its own operations by 2040 and from its portfolio of financed emissions by 2050, in line with the Paris Agreement on climate change.

The sustainable finance target includes 50 billion rand for renewable energy financing and underwriting of a further 15 billion rand for renewable energy by 2024-end.

READ MORE: Sign up for our weekly ESG newsletter here, read our latest coverage of environmental, social and governance issues here and listen to our ESG podcast on SoundCloud, Spotify and Apple podcasts.

Standard Bank committed to reduce group advances to upstream oil by 5% by 2030 and its exposure to gas by 2045, as well as limit its exposure in thermal coal to 0.70% of group loans and advances in 2021 and to 0.50% by 2030.

The bank also pledged to finance new coal mines only when there is an overall positive environmental impact and exclude the financing of deforestation of natural forests and indigenous trees, among other commitments.

As of March 16, US$1 was equivalent to 15.00 South African rand.