Standard Bank Group, Africa’s biggest bank by assets, has raised its sustainable finance targets by 80% to R450 billion in the next three years. This move is part of the bank’s wider strategy to support Africa’s economic development while reducing the impact of climate change.
In a statement from its Johannesburg headquarters, the bank explained that this new target will be achieved by 2028. The decision builds on the R177 billion already achieved since 2022 and the R74.3 billion that was financed last year. Originally, Standard Bank had planned to raise R250 billion by 2026 but has now increased its ambitions.
“The revised targets highlight Standard Bank’s dedication to driving energy and infrastructure development in Africa,” the bank stated. “Our mission is to propel Africa’s growth by tackling its challenges and ensuring economic prosperity for its people.”
Africa remains one of the most vulnerable continents to climate change, even though it contributes the least to global greenhouse gas emissions. Scientists blame these emissions for rising global temperatures and erratic weather conditions. According to the African Development Bank, the continent requires approximately $2.7 trillion by 2030 to meet its climate goals.
Currently, only South Africa and Senegal have implemented Just Energy Transition programmes. However, South Africa’s initiative faced a major setback when the United States withdrew $1.5 billion from the country’s $8.5 billion climate transition plan.
Standard Bank’s climate finance strategy focuses on financial inclusion, business growth, job creation, climate change mitigation, and infrastructure development. Despite its sustainability goals, the bank confirmed that it will continue financing new oil and gas projects, provided they meet environmental and social standards.
“Our approach balances sustainability with economic development,” Standard Bank stated. “We aim to keep upstream oil and gas exposure below 30% of our energy portfolio and under 3% of our total loans and advances. Additionally, we target a 10% reduction in the physical intensity of our energy portfolio by 2030.”
Industry experts have reacted to Standard Bank’s increased commitment with mixed views. Some financial analysts see the move as a bold step towards sustainable investment in Africa, while environmental groups question the continued financing of oil and gas projects.
In recent years, African banks have come under growing pressure from international organisations to support climate-friendly investments. Many financial institutions have introduced green bonds, renewable energy projects, and carbon credit schemes to align with global climate goals. However, challenges remain, particularly in balancing economic growth with sustainability.
Standard Bank remains one of the leading financial institutions on the continent, playing a key role in funding infrastructure, agriculture, and industrial development. With its new target of R450 billion in sustainable finance, the bank hopes to accelerate Africa’s transition towards a greener and more resilient economy.
