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Sustainable Finance and Climate Change

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Sustainable finance is essential in the fight against climate change.

The financial industry will play an increasingly important role in fighting climate change in the coming years by investing in sustainable projects that can make a significant difference to Africa.

Taking the continent’s environmental, social, and economic context into consideration, efforts to mitigate the impact of climate change, and improve access to reliable and sustainable energy sources are a critical factor in economic growth and poverty alleviation. While the socio-economic effects are not fully understood, it is clear that transition risk mitigation will require the development of skills, the use of technology, and the adoption of assertive policies.

As one of Africa’s largest financial institutions, Standard Bank Group is committed to supporting sustainable economic growth and providing financial services to meet the needs of Africa’s people, businesses and economies. In line with SBG’s purpose of driving Africa’s growth, the opportunities to partner with clients and stakeholders to support their transition to a low-carbon economy is essential.

SBG supports the transition away from carbon-based fuels and reducing the impact of financed carbon emissions, but recognises that energy is essential for economic growth in emerging markets, specifically in Africa, where affordable and reliable energy access is fundamental to Africa’s development. 

Because non-renewable energy will likely remain key to ensuring energy security in many African regions requiring broad access to electricity and transportation, SBG has defined prudent parameters for its involvement in specific sources: gas, oil, and thermal coal. The transition away from carbon-based fuels and reducing the impact of financed carbon emissions from clients in the non-renewable energy sectors will be a just transition, grounded in an understanding of the science and developments in the energy mix.

Standard Bank Group’s climate policy can be accessed here.