London, Feb 20 (Reuters) - Standard Chartered announced plans on Friday to reduce emissions associated with the bonds it issues for oil and gas companies, reaffirming its commitment to its net-zero strategy amidst a backdrop of other lenders reevaluating their climate initiatives.
The London-listed bank aims to decrease polluting emissions related to bond transactions for oil and gas companies by 26.9% by 2030. This pledge was made alongside an 18% rise in share buybacks amounting to $1.5 billion.
While many major banks have emission reduction targets for their lending activities, only a few, including Standard Chartered, have set targets for facilitated emissions. Environmental advocates have long urged banks to set such targets for all polluting industries, whereas Standard Chartered's current commitment is solely for oil and gas.
CEO Bill Winters emphasized that the bank is dedicated to achieving net-zero by the mid-century mark, noting that clients are actively working to decarbonize without slowing down.
Regarding the bank's success in this area, Winters attributed it to their focus and client demand. He highlighted the profitability of this strategy, emphasizing the uninterrupted transition of clients towards net-zero goals.
Standard Chartered reported a robust performance in its sustainable finance division last year, Winters noted.
Recent setbacks in climate advocacy within the financial sector have been evident, with the news that some institutions, like HSBC, are delaying their net-zero emission targets until 2050, aligning with Standard Chartered's timeline.
HSBC announced a forthcoming review of its financed emissions objectives and policies, as part of a larger revision of its climate approach to be completed by 2025.
Despite its focus on emerging economies, Standard Chartered continues to support fossil fuel fundraising. It has also unveiled its inaugural transition plan outlining progress towards net-zero and its assistance to clients in achieving similar goals.