Fossil fuels financing policy dismisses coal power plants
South African Standard Bank Group has published its Fossil Fuels Financing Policy, stating that the bank would no longer finance coal-fired power generation or coal mining sectors. This is part of its efforts to improve its management of environmental, social and governance (ESG) risks, and contribute to the sustainable development of Africa.
This follows the adoption in 2019 of policies on lending to coal-fired power projects and coal-mining operations specifically. Standard Bank’s energy finance portfolio increasingly focuses on renewable energy projects. Since 2012, 85% of the bank’s energy lending has been to green energy projects.
“We continue to engage with our clients to find solutions that enable them to understand and manage their climate risks, adopt good ESG risk practices, and grow their businesses sustainably,” said Kenny Fihla, the chief executive for corporate and investment banking at Standard Bank Group. However, Fihla acknowledged that the bank would continue to finance existing coal-fired power generation utilities.
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