Banking giant Standard Bank ramps up climate policy

Standard Bank Group, Africa's largest bank by assets, is making significant strides towards becoming a climate-conscious company. The bank has announced plans to provide up to 300 billion Rand in sustainable financing by the end of 2026. In a recent interview with CNBC Africa, Kenny Fihla, Chief Executive of Corporate and Investment Banking at Standard Bank Group, discussed the bank's ambitious climate targets and the challenges they face in achieving them. One of the key points of the interview was Standard Bank Group's commitment to no longer financing 'brown projects', signaling a shift towards renewable energy initiatives. Fihla mentioned that the bank aims to scale back funding for fossil fuel projects and has set a specific reduction target for its fossil fuel financing by 2030, with the ultimate goal of achieving net zero emissions by 2050. Standard Bank Group also has a target to reach net zero carbon emissions by 2040. Currently, the bank still relies on diesel backup power in some operations, but plans to transition to renewable energy solutions. Fihla emphasized the importance of new buildings being powered by renewable energy from the outset and the bank's goal to eliminate the use of fossil fuels by 2040. Another key focus for Standard Bank Group is its investment portfolio. While the current portfolio is not yet net zero, the bank is working towards converting its existing buildings to be net zero by 2040 and ensuring that new buildings are powered by renewable energy. In terms of financing for clients, the bank acknowledges that a large portion of its portfolio is linked to oil and gas projects. Standard Bank Group is now implementing measures to track and reduce the carbon emissions associated with these investments, with the aim of ultimately achieving net zero emissions. Fihla highlighted some of the obstacles the bank faces in implementing these measures, including the need for clients, governments, and economies to make the transition to renewable energy. He also noted the challenges in measuring carbon emissions and the lack of robust standards and data in this area. Fihla emphasized the importance of tracking financed emissions as a key metric to evaluate the bank's progress towards its climate targets. While there are challenges ahead, Standard Bank Group is committed to driving sustainable financing and supporting the transition to a low-carbon economy. With ambitious targets and a clear focus on renewable energy initiatives, the bank is poised to make a significant impact in the fight against climate change.