Standard Bank Group
Climate strategy
We are committed to driving Africa’s growth in an inclusive and sustainable manner, supporting a just energy transition.
We strive to create a positive impact through our business on important aspects of Africa’s development such as education, infrastructure, financial inclusion and other UN Sustainable Development Goals. It is also crucial for us to reduce the negative impacts of our business on the environment and society. Climate change is an important issue with implications for Africa’s growth, and as the largest bank on the continent, we have the opportunity to play a leading role in supporting a just energy transition for Africa.
Our focus
Supporting the Transition
R250 billion to R300 billion for sustainable finance
By mobilising a cumulative amount of between R250 billion and R300 billion for sustainable finance by the end of 2026. Our commitment to financing renewable energy power plants is estimated to be 2.5 to 3 times greater than our financing commitment towards fossil fuel-fired plants by the end of 2024
Our climate journey and future commitments
Our climate policy is designed with Africa’s social, economic and environmental context as its starting point. We have set commitments and targets for thermal coal, oil, gas and agriculture, based on their identified levels of elevated climate risk. Over the next 2 to 3 years, climate targets and commitments will also be set in additional sectors including insurance, residential and commercial property, and transportation.
ESG governance and risk management
- Published the group climate policy and priority sector targets
- Updated relevant SBG policies to align with the Climate Policy
- Joined Partnership for Carbon Accounting
- Financials (PCAF) and committed to applying the PCAF methodology over the next three years to measure the financed emissions of our customers
- Engaging with stakeholders on the Just Energy Transition in South Africa to inform group strategy and offering
- Establishing a transitional finance framework
- Launching a learning framework to deepen understanding of climate change impacts and sustainable finance instruments, in partnership with African and International centres of expertise.
Awards
- Local Markets ESG & Sustainable Finance Adviser of the Year at the Bonds & Loans Africa Awards.
ESG governance and risk management
- Board approved the SBG climate policy and targets for priority sectors
- Established a group ESG risk community of practice to raise awareness of social and environmental risks and impacts across the group and provide a platform for learning and discussion
- Published our second TCFD-aligned report and our first PRB self-assessment report.
Products and services
- Issued social bonds and a green bond, to support women’s access to affordable housing and to finance renewable energy assets
- Provided 15 sustainable finance loan facilities (use of proceeds and performance-based loans)
- Arranged eight sustainable finance bonds (use of proceeds and sustainability-linked bonds)
- Provided finance for successful bidders in South Africa’s Risk Mitigation Programme (RMIPP) and Renewable Energy IPP Programme (REIPPP)
- Enabled ESG-linked investing through Melville Douglas Global Impact Fund.
- Launched PowerPulse, providing bespoke solutions for solar PV projects, for businesses and residential property owners
- Launched OneFarm Share in South Africa
- Launched the Green Home initiative for Standard Insurance Limited clients.
Thought leadership
- Elected to the ICMA Advisory Council, the only African bank represented
- Delivered a climate risk and sustainability masterclass for 40 executive managers across the group, in partnership with SOAS University of London
- Launched the Sustainable Finance quarterly newsletter for clients and partners
- Hosted a Climate Change Africa Conference in partnership SOAS University of London
- Presented and facilitated panel discussions at various forums including the Africa Green Hydrogen Forum, the 3rd Green Hydrogen Webinar and the Africa Energy Indaba.
Market firsts
- First sustainability-linked bond (SLB) in Africa (Netcare)
- First social bond on sustainability segment of the JSE (TUHF)
- First SLB in SA real estate investment trust (REIT) sector (IPF)
- First SLL in the retail sector (Woolworths).
Awards
- Outstanding Leadership in Sustainable Bonds, Outstanding Leadership in Green Bonds and Outstanding Leadership in Social Loans at Global Finance Sustainable Finance (regional winners) Awards
- Best Pan-African Green Finance Bank at Emeafinance African Banking Awards.
ESG governance and risk management
- Adopted ESG governance framework, recognising ESG as separate risk type within non-financial risk and assigning clear accountability
- Expanded board and management committee mandates to include oversight of ESG risk management
- Integrated SEE metrics and ESG performance into SBG performance metrics
- Developed performance dashboard to measure progress against our SEE strategy
- Developed non-financial metrics for each of our SEE impact areas
- Developed country-led SEE strategies
- Adopted Fossil Fuel Finance Policy
- Published interim TCFD-aligned report
- Participated in the UNEPFI TCFD Pilot Programme Phase III to improve our climate risk management.
Products and services
- Published Sustainable Bond Framework, aligned with the International Capital Market Association (ICMA) Green Bond Principles (GBP), Social Bond Principles (SBP) and the Sustainability Bond Guidelines
- Issued inaugural USD200 million Green Bond, via private placement with IFC, the first bond issuance under our sustainable bond framework, Africa’s largest green bond and South Africa’s first offshore green bond issuance.
- Issued several pioneering sustainability-linked loans and ESG-performance incentive loans
- Offered ESG investment options through Standard Bank Isle of Man and Standard Bank Jersey, and Melville Douglas discretionary managed responsible portfolios, with a focus on renewable energy and sustainable infrastructure.
Thought leadership
- Sponsored the African Energy Journey webinar.
Market firsts
- First SLL in the technology, media and entertainment, and technology sector (TMT) sector (Vodacom)
- First offshore green bond in South Africa (SBSA)
- First SLL in the real estate sector (Equites).
Awards
- Best Investment Bank for Sustainable Finance, Global Finance.
ESG governance and risk management
- Expanded integration of E&S screening, management and monitoring across business and credit functions (beyond CIB)
- Expanded mandate of client risk committees to include assessment of ESG risks for new and existing client relationships
- Adopted coal-fired power finance and thermal coal mining finance policies
- Tabled first South Africa shareholder resolution on climate risk
- Established Task Force on Climate-Related Financial Disclosures (TCFD) working group.
Products and Services
Established a dedicated sustainable finance business unit mandated to partner with clients to develop tailored sustainable finance solutions
Launched OneFarm as a pilot in Kasese, Uganda.
Launched OneFarm as a pilot in Kasese, Uganda.
Thought leadership
- Founding signatory to the UN Principles for Responsible Banking (PRB)
- Co-chair of UNEP FI Banking Board.
Market Firsts
- First Green Infrastructure Bond in Nigeria (NSP-SPV PowerCorp Plc.)
- First Green Bond in East Africa (Acorn)
- First sustainability-linked loan (SLL) in Africa (Curro)
Awards
- Project Finance Deal of the Year by Bonds, Loans & Sukuk Africa for the Acorn Green Bond
- Local Currency Bond Deal of the Year by Bonds, Loans & Sukuk Africa for the NSP Green Bond.
ESG governance and risk management
- Adopted social, economic and environmental (SEE) impact as a strategic value driver. SEE impact areas informed by UN SDGs and directly relevant to our core business
- Strengthened environmental and social (E&S) risk governance standard and policy.
2022
ESG governance and risk management
- Published the group climate policy and priority sector targets
- Updated relevant SBG policies to align with the Climate Policy
- Joined Partnership for Carbon Accounting
- Financials (PCAF) and committed to applying the PCAF methodology over the next three years to measure the financed emissions of our customers
- Engaging with stakeholders on the Just Energy Transition in South Africa to inform group strategy and offering
- Establishing a transitional finance framework
- Launching a learning framework to deepen understanding of climate change impacts and sustainable finance instruments, in partnership with African and International centres of expertise.
Awards
- Local Markets ESG & Sustainable Finance Adviser of the Year at the Bonds & Loans Africa Awards.
2021
ESG governance and risk management
- Board approved the SBG climate policy and targets for priority sectors
- Established a group ESG risk community of practice to raise awareness of social and environmental risks and impacts across the group and provide a platform for learning and discussion
- Published our second TCFD-aligned report and our first PRB self-assessment report.
Products and services
- Issued social bonds and a green bond, to support women’s access to affordable housing and to finance renewable energy assets
- Provided 15 sustainable finance loan facilities (use of proceeds and performance-based loans)
- Arranged eight sustainable finance bonds (use of proceeds and sustainability-linked bonds)
- Provided finance for successful bidders in South Africa’s Risk Mitigation Programme (RMIPP) and Renewable Energy IPP Programme (REIPPP)
- Enabled ESG-linked investing through Melville Douglas Global Impact Fund.
- Launched PowerPulse, providing bespoke solutions for solar PV projects, for businesses and residential property owners
- Launched OneFarm Share in South Africa
- Launched the Green Home initiative for Standard Insurance Limited clients.
Thought leadership
- Elected to the ICMA Advisory Council, the only African bank represented
- Delivered a climate risk and sustainability masterclass for 40 executive managers across the group, in partnership with SOAS University of London
- Launched the Sustainable Finance quarterly newsletter for clients and partners
- Hosted a Climate Change Africa Conference in partnership SOAS University of London
- Presented and facilitated panel discussions at various forums including the Africa Green Hydrogen Forum, the 3rd Green Hydrogen Webinar and the Africa Energy Indaba.
Market firsts
- First sustainability-linked bond (SLB) in Africa (Netcare)
- First social bond on sustainability segment of the JSE (TUHF)
- First SLB in SA real estate investment trust (REIT) sector (IPF)
- First SLL in the retail sector (Woolworths).
Awards
- Outstanding Leadership in Sustainable Bonds, Outstanding Leadership in Green Bonds and Outstanding Leadership in Social Loans at Global Finance Sustainable Finance (regional winners) Awards
- Best Pan-African Green Finance Bank at Emeafinance African Banking Awards.
2020
ESG governance and risk management
- Adopted ESG governance framework, recognising ESG as separate risk type within non-financial risk and assigning clear accountability
- Expanded board and management committee mandates to include oversight of ESG risk management
- Integrated SEE metrics and ESG performance into SBG performance metrics
- Developed performance dashboard to measure progress against our SEE strategy
- Developed non-financial metrics for each of our SEE impact areas
- Developed country-led SEE strategies
- Adopted Fossil Fuel Finance Policy
- Published interim TCFD-aligned report
- Participated in the UNEPFI TCFD Pilot Programme Phase III to improve our climate risk management.
Products and services
- Published Sustainable Bond Framework, aligned with the International Capital Market Association (ICMA) Green Bond Principles (GBP), Social Bond Principles (SBP) and the Sustainability Bond Guidelines
- Issued inaugural USD200 million Green Bond, via private placement with IFC, the first bond issuance under our sustainable bond framework, Africa’s largest green bond and South Africa’s first offshore green bond issuance.
- Issued several pioneering sustainability-linked loans and ESG-performance incentive loans
- Offered ESG investment options through Standard Bank Isle of Man and Standard Bank Jersey, and Melville Douglas discretionary managed responsible portfolios, with a focus on renewable energy and sustainable infrastructure.
Thought leadership
- Sponsored the African Energy Journey webinar.
Market firsts
- First SLL in the technology, media and entertainment, and technology sector (TMT) sector (Vodacom)
- First offshore green bond in South Africa (SBSA)
- First SLL in the real estate sector (Equites).
Awards
- Best Investment Bank for Sustainable Finance, Global Finance.
2019
ESG governance and risk management
- Expanded integration of E&S screening, management and monitoring across business and credit functions (beyond CIB)
- Expanded mandate of client risk committees to include assessment of ESG risks for new and existing client relationships
- Adopted coal-fired power finance and thermal coal mining finance policies
- Tabled first South Africa shareholder resolution on climate risk
- Established Task Force on Climate-Related Financial Disclosures (TCFD) working group.
Products and Services
Established a dedicated sustainable finance business unit mandated to partner with clients to develop tailored sustainable finance solutions
Launched OneFarm as a pilot in Kasese, Uganda.
Launched OneFarm as a pilot in Kasese, Uganda.
Thought leadership
- Founding signatory to the UN Principles for Responsible Banking (PRB)
- Co-chair of UNEP FI Banking Board.
Market Firsts
- First Green Infrastructure Bond in Nigeria (NSP-SPV PowerCorp Plc.)
- First Green Bond in East Africa (Acorn)
- First sustainability-linked loan (SLL) in Africa (Curro)
Awards
- Project Finance Deal of the Year by Bonds, Loans & Sukuk Africa for the Acorn Green Bond
- Local Currency Bond Deal of the Year by Bonds, Loans & Sukuk Africa for the NSP Green Bond.
2018
ESG governance and risk management
- Adopted social, economic and environmental (SEE) impact as a strategic value driver. SEE impact areas informed by UN SDGs and directly relevant to our core business
- Strengthened environmental and social (E&S) risk governance standard and policy.
Our industry focuses
We are committed to providing tailored industry-specific insights as well as providing market-specific product and services for key industries.
Agriculture industry
We encourage sustainable agricultural practices through sustainable loan products that support renewable energy opportunities, climate-smart agriculture and digital platforms to assist small-holder farmers.
We collect data through partnerships with research groups and industry experts to set an emissions reduction target and a portfolio baseline.
We will not finance
- the deforestation of natural forests and indigenous trees (except where this will have a positive impact, as in the de-bushing of farming blocks for grazing and cropping);
- the production of or trade in other non-indigenous forestry products except from sustainably managed forests and
- unsustainable fishing.
Gas industry
We only finance gas-related projects that produce zero to minimal fugitive emissions or are committed to reducing the carbon intensity of liquified natural gas (LNG) plants.
We will prioritise finance for constructing gas-fired power plants when
- providing support services as part of an integrated renewable energy power solution or
- converting existing coal- or oil-fired power plants as part of a clearly defined decarbonisation plan aligned to net zero by 2050.
In line with our view of gas as a transition fuel, we will limit the financing of standalone gas-fired power plants providing general baseload, mid-merit or peaking power to a cap of 0.75% of total group advances after 2026, from a current level of 0.14%.
We will reduce our exposure to gas by 2045, in line with our commitment to net zero by 2050, while considering the energy security of the markets where we operate.
Oil industry
We will reduce
- group advances to upstream oil by 5% by 2030 and
- financing to clients generating power mainly from oil, from 0.05% of total group advances in 2021 to 0.03% in 2026 and zero from 2030.
We will not finance
- companies with unrestricted flaring for new assets, and we will seek from existing companies with flaring timebound plans to eliminate flaring for existing assets;
- the extraction of tar sands or construction of associated export facilities, exploration and production of tight oil resources, and pipelines transporting a significant volume of tight oil and export terminals supplied by a significant volume of tight oil and
constructing new oil-fired power plants or expanding existing generating capacity unless such plants provide support services as part of an integrated renewable energy power plant.
Thermal coal industry
We will limit our exposure to 0.70% of group loans and advances in 2021 and to 0.50% by 2030.
We will not finance the construction of new coal-fired power plants or the expansion of generating capacity of existing plants.
We will reduce the financing of power sector clients that generate power mainly from coal, from 0.18% of total group advances in 2021 to 0.15% in 2026 and 0.12% from 2030.
We will finance new coal mines only when there is an overall positive environmental impact.
Download our climate policy documents
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ESG
We ensure that our strategy is consistent with our mission by managing environmental, social and governance (ESG) risks, formalising ESG compliance and sustainability and embedding a culture of responsible banking across the group.
Our Impact areas
Our products and services are designed to deliver positive social, economic and environmental (SEE) impacts in 7 key focus areas.