Paris, Thursday 28 October 2021 – Press comment on Standard Chartered’s COP26 commitment
Less than five days before COP 26, Standard Chartered, the 5th largest UK bank, today announced new 2030 interim targets for thermal coal mining, oil and gas and power.
- Standard Chartered promised for the first time to stop financing all companies expanding in thermal coal, but not at parent company level (only at entity level). Standard Chartered is also yet to specify how it defines companies with expansion plans. (1)
- The target set for coal has not been coupled with a robust plan to swiftly exit coal: while 2030 is the correct date to target to exclude the entire coal sector, Standard Chartered’s plan to maintain support to companies generating more than 80% of their revenue from coal until 2024 and 40% by 2027 does not require its clients to adopt an asset-based coal phase-out plan in the coming year.
Lucie Pinson, the Executive Director of Reclaim Finance, said “Standard Chartered is finally acknowledging the need to stop supporting expansion in the coal sector. What could have been a big step forward is, however, undone by the gaping loophole in the policy. Having channelled $10 bln to the coal sector between October 2018 and October 2020, the bank has given itself enough wriggle room to protect its interests in giant coal companies like Glencore, which is currently developing new coal mines in Australia and South Africa (2).All eyes now turn to HSBC and Barclays – they must now follow suit by excluding all coal developers as defined in the Global Coal Exit List, and go further by imposing exclusions at the parent company level.”
The bank also sets the expectation that oil and gas companies should have Paris-aligned strategies by 2022. Yet, not only does the bank not explain what it means, but it fails to align with the main conclusions of the IEA’s net-zero scenario, even as it cites the IEA eight times. Adopting a net-zero pledge, like Standard Chartered has done, should mean no oil and gas expansion.
Pinson commented : “Regarding the oil and gas sector, if Standard Chartered is genuinely intent on requiring Paris-aligned strategies, then it should clarify that this means a clear stop to new oil and gas fields, in line with the IEA’s position.”
Standard Chartered has provided $10 billion to companies in the Global Coal Exit List between October 2018 and October 2020, with almost half of this amount ($4.7 billion) going to coal plant developers, the latter being the most of any UK bank. It has also provided $31 bn to the fossil fuel sector as a whole since the Paris Agreement was adopted.