According to a report by the WMO State of the Global Climate in 2021, the past seven years have been the warmest on our planet Earth. Glaciers are shrinking, we are losing sea ice more rapidly than ever, sea levels are rising, and deadly heat waves have been recorded.
A rise in greenhouse gas concentrations, ocean acidification, flooding, drought, and raging storms are just some of the many side effects of global climate change that we are facing and will continue to do so as per the predictions.
The Intergovernmental Panel on Climate Change (IPCC), has forecasted a temperature rise of 2.5 to 10 degrees Fahrenheit over the next century, which means that these effects have only just begun.
However, there are still ways and means to cut emissions and limit global warming. Currently, the need for systematic action to mitigate the risks of climate and environmental change beats all, and the responsibility falls on each individual.
Realizing the need of the hour, Standard Chartered Bank in Pakistan with a rich history of over 160 years, has lived up to its brand promise of being ‘Here for Good’ and geared up to play its role in addressing one of the biggest challenges of our time – climate change.
ProPakistani sat down with Syed Ejaz Alam, CFO, Standard Chartered Bank where he talked in detail about the various efforts by the Bank to curb the effects of climate change. Here is how it went:
Syed Ejaz Alam: We continuously strive to “Do the Right Thing” to become more socially, economically, and environmentally / ecologically responsible. As part of our commitment to delivering sustainable and responsible banking, our Sustainability Aspirations continue to provide a robust set of performance targets to support sustainable outcomes aligned with UN Sustainable Development Goals.
Our commitment to sustainability is not only about the economic activity we finance, but also about how we run our business. We invest in our people, promote the right values, behaviors, and conduct and manage our environmental footprint.
We are committed to promoting economic and social development in a sustainable and equitable manner. This means that as we help people and companies succeed, we do so sustainably and responsibly, constantly asking ourselves how we can have a more positive impact on the world around us.
Syed Ejaz Alam: Standard Chartered has committed to cutting down its carbon emissions to net-zero by 2050 from their own operations and financing activities. To meet this challenge, the bank set out interim 2030 targets for key sectors as medium-term milestones.
Globally, we need to cut emissions by 45% to 50% by 2030. This is easier said than done since the carbon emissions have risen over 11% in the last decade alone.
Given Standard Chartered’s extensive footprint in the emerging markets and its business model, the Bank believes it can play a unique role when it comes to facilitating the net-zero transition across Asia, Africa, and the Middle East, where it matters the most.
Syed Ejaz Alam: To meet the goal of reaching net-zero carbon emissions globally by 2050, an investment of $3.5 trillion dollars is needed each year, much of which needs to be directed at emerging markets like Pakistan.
To play its part in contributing to this mission, the Bank has committed $300 billion in transition finance globally and to develop a transition advisory team.
Considering the immense investment opportunities in pursuing the UN’s Sustainable Development Goals, Standard Chartered has pledged to facilitate its clients’ net-zero journeys by providing them with innovative financial solutions that help them achieve their sustainability goals.
The Bank offers sustainable finance across multiple footprints which it has publicly set out in its verified Green and Sustainable Product Framework to promote renewable energy, blue economy, water management, energy efficiency, and clean transportation.
Syed Ejaz Alam: When it comes to climate change, we have collaborated with many transition industries to encourage others to adopt more sustainable practices as well.
We have provided solar financing solutions to our corporate clients for the green transition of their factories, sustainable-trade financing facility for Textile companies, and the green bond financing by the Water and Power Development Authority to fund hydro projects, which was also Pakistan’s first-ever international USD Green Bond.
Syed Ejaz Alam: We have been actively concentrating on multiple areas to reduce our own carbon footprint. The bank recently launched its innovative Digital Banking solution and the Standard Chartered Mobile App. Through this, we aim to lift participation and drive financial inclusion for the unbanked across Pakistan while eliminating the consumption of paper. Our end-to-end digital processes show our aggressive digitalization plans for the future.
Quite recently, Standard Chartered in collaboration with Sindh Radiant Organization (SRO) planted 40,000 trees at the Clifton Urban Forest. The tree plantation was conducted with the support of volunteers from the Bank. This initiative is in line with the Bank’s efforts toward reducing carbon footprint and conservation of wildlife and biodiversity.
Other initiatives taken by the Bank for the reduction of its environmental footprint include:
These initiatives helped the bank in reducing its carbon footprint by 17% in 2021.
Syed Ejaz Alam: Our plan is well set out to cut financed emissions, mobilize capital, and accelerate climate solutions.
SC further plans to plant 100,000 trees by the end of 2022 which is tenfold of its last year’s goal of planting 10,000 trees.
As part of the refurbishment of our Head Office premises, we are focusing on being carbon light and plan to produce a significant portion of our energy needs from green sources, including solar power.
We will further accelerate green and transition finance, helping clients on a path to net-zero while maximizing the benefits for people and communities.
Syed Ejaz Alam: I believe it will take everyone to join hands to address this truly global challenge. The corporate sector can play an important part in this regard as part of its social initiatives.
Standard Chartered, through its efforts, hopes to inspire others as well. We hope to start a chain reaction, a domino effect that will motivate others to take steps towards addressing the challenge of climate change. Hopefully, it will set in a healthy competition to the benefit of this cause!
Only by securing long-term economic sustainability and translating our ambitions to deeds will we be able to co-create a world that we can not only breathe in but be proud of.
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