Supporting the Decarbonisation of Africa’s Economies

Standard Bank, a leader in Africa’s energy and infrastructure development, is proud to announce changes to its sustainable finance mobilisation targets aimed at maximising positive impact and supporting the decarbonisation of Africa’s economies. The revised targets emphasise Standard Bank’s commitment to leading energy and infrastructure development on the continent.

In 2022, Standard Bank set a target to mobilise R250 billion in sustainable finance by 2026. As part of the process of updating our group climate policy and improved integration of sustainable finance across the group, we have identified additional eligible assets in our portfolio and have updated our group sustainable finance targets. Building on this foundation, the bank has now updated its group sustainable finance targets, aiming to mobilise over R450 billion by 2028. This ambitious goal builds on the R177 billion already financed since 2022, with R50.6 billion mobilised in 2023 and R74.3 billion in 2024.

Standard Bank remains steadfast in its commitment to achieving net zero financed emissions by 2050. This involves engaging with clients on sector transition pathways and advocating for supportive policy and regulatory frameworks.

Standard Bank’s purpose is to drive Africa’s growth by ensuring that its business activities address the continent’s challenges and deliver improved prosperity for its people. The bank is dedicated to conducting its core business in a manner that generates positive social, economic, and environmental impacts for the communities it serves. The bank’s activities focus on four key areas: financial health and inclusion, business growth and job creation, climate change mitigation and adaptation, and infrastructure development.

Investment in renewable energy infrastructure remains a priority for Standard Bank. The bank focuses on expanding access to affordable and reliable energy, particularly through renewable energy solutions. This includes financing utility-scale and decentralised renewable energy projects, as well as energy efficiency solutions for SMEs and homeowners. In 2022, Standard Bank set a target to mobilise R50 billion in finance and R15 billion in underwriting for new renewable energy projects by 2024, achieving 82% of this target by raising R53.4 billion. In 2024, our energy supply ratio, the share of finance directed towards renewable power generation relative to that for non-renewable power generation, was 5.96 times.

While prioritising renewable energy, Standard Bank also supports a broader range of activities that contribute to the decarbonisation of Africa’s economies. The bank continues to finance new oil and gas projects, provided they are designed and implemented with robust environmental and social risk controls. This balanced approach includes limiting upstream oil and gas exposure to less than 30% of the energy portfolio and less than 3% of the bank’s total loans and advances, with a goal of reducing the physical intensity of the portfolio by 10% by 2030.

Boitumelo Sethlatswe, Standard Bank Group’s Head of Sustainability, stated: “Our approach to sustainability is deeply rooted in our purpose: Africa is our home, we drive her growth. Our commitments reflect our ambition to be a leading green energy player on the continent. We recognise the critical role the bank plays in supporting African economies to achieve a Just Energy Transition, ensuring access to affordable energy while managing climate risk and advancing towards a low-carbon future.”

Standard Bank’s strategy is guided by the Paris Agreement’s principle of ‘common but differentiated responsibilities,’ acknowledging that climate actions must vary by national circumstances. This perspective shapes the bank’s approach to supporting sustainable growth while addressing climate challenges.