Standard Bank has floated a new fossil fuels financing policy for the African subcontinent, media reports said. The policy is a part of the bank’s efforts to enhance its management of environmental, social and governance (ESG) risks. Furthermore, the policy is expected to establish sustainable development on the continent.
It is reported that the new policy will be implemented strictly towards any form of financing for coal, oil and gas projects. The compliance for the policy is in line with the World Bank’s Environmental, Health, and Safety Guidelines, Equator principles and International Finance Corporation’s (IFC) performance standards.
The other rules and regulations which the project owners must follow are: provide updates of the project’s performance related to water usage, greenhouse emissions, waste generation and energy consumption. The bank will only provide only financial products and service for oil and gas activities carried out by the clients in order to cut their greenhouse gas emissions.
Wendy Dobson, Head of Group Corporate Citizenship at Standard Bank, told the media, “The publication of our Fossil Fuels Financing Policy is another important step forward for Standard Bank. We are fully aware that climate change is a material risk to our ability to generate value for all stakeholders over time, and to our purpose of driving sustainable development across the continent.”
Standard Bank is committed to climate change actions and has been pushing the need to support access to reliable and affordable energy that bolsters economic growth across Africa. The global banking sector is slowly becoming serious towards going green by introducing paperless service and much more.