Standard Chartered Launches $75 Billion Sustainable Development Goals Fund

As part of efforts aimed at providing needed supports to its clients as they transition to a low carbon economy which forms part of its Sustainability Aspirations. Global financial giant, Standard Chartered Group has committed to providing by the end of 2024, the sum of $ 40 billion of project financing services for infrastructure that promotes sustainable development providing $35 billion of project financing services, M&A advisory and debt structuring services for renewables and clean tech projects (solar and wind).

Tracey McDermott, Group Head, Corporate Affairs, Brand & Marketing
Tracey McDermott, Group Head, Corporate Affairs, Brand & Marketing

Underpinning the aspirations, Standard Chartered also intends to reduce its emissions across its global properties by 2030. With an office footprint spanning 60 countries, including many large emerging markets, the Bank will achieve net zero emissions by only sourcing energy from renewable sources and continuing to pursue energy efficiency measures across its 12 million square feet of property.

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Tracey McDermott, Group Head, Corporate Affairs, Brand & Marketing, commented: “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.”

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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 $100 billion annually , whilst in Africa this figure stands between $ 500 billion and $ 1.2 trillion . For the goals to be met by 2030, investors and banks need to coordinate and connect capital to promote sustainable development.”

“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. The 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.”

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Standard Chartered has a broad range of sustainable finance product offerings that can be deployed to help clients pivot their business towards a more sustainable model. In October 2018, it created the Sustainable Finance team and has since launched sustainable deposit products in London, Singapore, Hong Kong and New York; plus, a EUR500 million Sustainability Bond, the proceeds of which will be used to provide finance in areas aligned with the Sustainable Development Goals – including clean energy projects, smaller business lending and microfinance loans.

 

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry