Standard Bank South Africa is making significant strides in its commitment to sustainable finance and renewable energy initiatives, solidifying its position as one of the country’s largest investors in green energy. This underscores Standard Bank’s dedication to supporting renewable energy efforts.
Since launching its climate policy in March 2022, Standard Bank has been ahead of its target to raise between R250 billion to R300 billion for sustainable finance by the end of 2026. In 2022, the bank exceeded its goal, executing 29 sustainable finance transactions worth R55 billion. The bank’s 2023 run rate is also higher compared to the same period last year, indicating progress towards this year’s R50 billion mobilization target.
Lungisa Fuzile, Standard Bank South Africa CEO, emphasized that the bank is committed to achieving net-zero carbon emissions from its own operations by 2040 and from its portfolio of financed emissions by 2050, aligning with the Paris Agreement. In the first half of 2023, Standard Bank mobilized R28 billion for sustainable finance, bringing the cumulative amount since FY22 to R83 billion.
In 2022, Standard Bank financed R5 in renewable energy for every R1 lent to non-renewable power, demonstrating a strong commitment to renewable energy financing. The bank also provided R30 billion in financing for new renewable energy power plants, contributing to its cumulative financing efforts since FY22.
Standard Bank has emerged as the leading renewable investor in the country, showcasing its dedication to sustainable development and a just energy transition for the continent.
Standard Bank’s Corporate and Investment Banking division is on track to exceed its renewable investment targets. It exceeded its R40 billion 2022 goal by executing 29 sustainable finance transactions worth R55 billion as it ramped up origination efforts to support clients in achieving climate and sustainability goals. The bank also funded and committed under REIPPP and RMIPPP, totalling R52.5 billion or 3GW.
On decentralised energy projects, three have reached financial close already, totalling 370MW under construction with a pipeline of 1GW reaching financial close within 6 months and another 2-3GW pipeline still under discussion.
Standard Bank has disbursed funds to individuals in South Africa for installing solar solutions or purchasing ‘green-aligned’ homes. By the end of 2023, it aims to provide up to R1.2 billion in financing for these initiatives.
Through its LookSee home efficiency digital platform, Standard Bank has installed over R60 million worth of Home Solar systems for customers, experiencing 350% growth year-on-year. This initiative has resulted in significant savings for South African homeowners, with an estimated annual savings of almost R14 million.
To ease the demand on the grid and promote energy efficiency, Standard Bank and LookSee have installed over 3700 solar panels on homes, offsetting over 5,000 tons of CO2.
The bank has disbursed over R1.1 billion to support solar solutions providers and facilitate access to renewable energy for its SME clients. As a result of these efforts, clients have installed 656 renewable energy systems generating 192 MW of power from green sources. Standard Bank is also the first bank to participate in the Energy Bounce-Back Loan Guarantee Scheme, offering affordable solar loans to both personal and business clients.
Simone Cooper, Standard Bank Head of Business and Commercial Banking SA, noted the growing appetite for solar energy alternative solutions, especially among small businesses.
Standard Bank South Africa is proud to support its customers in transitioning to sustainable energy solutions, reducing carbon emissions, and promoting a greener future for South Africa.