Standard Bank, led by Sim Tshabalala, raises sustainable finance commitments to $24.5 billion

Key Points

• Standard Bank raised its sustainable finance commitment to $24.5 billion by 2028, an 80% surge, aiming to accelerate Africa’s energy transition and economic development.
• The bank has already deployed $9.6 billion since 2022, financing $4 billion last year, with a focused strategy on infrastructure, job creation, and climate mitigation.
• Despite green ambitions, Standard Bank maintains a “balanced approach,” with its net-zero carbon emissions from financed activities by 2050.

Standard Bank, Africa’s largest bank by assets, under the leadership of South African banker Sim Tshabalala, has ramped up its sustainable finance commitment to $24.5 billion by 2028, marking an 80 percent increase from its previous R250 billion($13.6 billion) target by 2026. This move highlights the financial giant’s resolve to drive Africa’s green transition while fostering economic development across the continent.

The latest R450 billion ($24.5 billion) target builds on the R177 billion ($9.6 billion) the bank has already deployed since 2022, including R74.3 billion ($4 billion) in financing last year. The announcement underscores Standard Bank’s role in shaping Africa’s energy and infrastructure landscape while addressing climate change challenges.

Tshabalala’s vision for sustainable finance growth

Under the leadership of Sim Tshabalala, Standard Bank has cemented its reputation as a pioneer in sustainable finance. The bank’s renewed commitment aligns with Africa’s broader climate financing needs, with the African Development Bank estimating the continent requires $2.7 trillion by 2030 to meet its climate goals.

“The revised targets emphasize Standard Bank’s commitment to leading energy and infrastructure development on the continent,” the lender stated. “Our goal is to drive Africa’s growth by ensuring our business activities directly address the region’s challenges and promote shared prosperity.”

Standard Bank’s sustainable finance strategy is centered around four pillars: financial health and inclusion, business growth and job creation, climate change mitigation and adaptation, and infrastructure development. Despite its green ambitions, the bank maintains a “balanced approach,” continuing to finance new oil and gas projects while adhering to stringent environmental and social safeguards.

Balancing growth and climate responsibility

Standard Bank’s energy strategy reflects a pragmatic stance, limiting upstream oil and gas exposure to less than 30 percent of its energy portfolio and under 3 percent of total loans and advances. The bank also aims to reduce the physical intensity of its portfolio by 10 percent by 2030, aligning with its long-term goal of achieving net-zero carbon emissions from its operations by 2040 and its financed emissions portfolio by 2050.

Africa remains disproportionately affected by climate change despite contributing the least to global greenhouse gas emissions. While countries like South Africa and Senegal have launched just energy transition programs, funding gaps persist. South Africa’s initiative suffered a setback with the U.S. withdrawing $1.5 billion from its $8.5 billion transition package.

With R3.27 trillion ($178.24 billion) in assets, R1.5 trillion ($79.80 billion) assets under management as of December 2024 and operations spanning 20 African markets and key international financial hubs, Standard Bank remains at the forefront of Africa’s green finance evolution. Tshabalala’s leadership continues to steer the institution towards impactful investments that bridge sustainability with economic growth, reinforcing Standard Bank’s position as a pivotal force in the continent’s energy transition.