Standard Bank to discontinue financing coal-fired power projects

In its recently released climate policy, Standard Bank Group, Africa's largest bank by assets, plans to funnel between R250 billion and R300 billion into sustainable finance projects by 2026. The bank outlined its commitment to reducing its thermal coal energy exposure to 0.70% of loans and advances by 2021 and 0.50% by 2030. The group emphasized that it will not finance new coal-fired power facilities and cease supporting existing power plant expansions.

The development is pivotal to the bank's ethical obligation and commercial opportunity. Standard Bank takes measures to mitigate climate change risk due to its strategic importance; thus, it continues to support renewable energy finance.

The climate policy of the bank only allows it to fund new coal projects when it has a net positive impact on the environment. Also, the bank will continue to support the Paris Agreement's goal of transforming Africa into a lower-carbon economy.