Standard Bank goes green with coal funding

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Standard Bank goes green with coal funding

Published Date: 2019-08-01 | Source: Stephen Gunnion | Author: Stephen Gunnion

Standard Bank goes green with coal funding

The bank says it will make its policy on lending to coal mining operations public once it has been through the appropriate processes.

Standard Bank says it's in the process of developing a policy on lending to coal mining operations. In a statement yesterday, the bank said the move followed a shareholder vote on the disclosure of its policy to help fund coal-fired power projects and mines at its annual general meeting (AGM) in May.

At the AGM, the resolution was passed with the support of just over 55% of shareholders. However, a call for the bank to disclose its climate change risk received just 38% support, with 58% of shareholders voting against the resolution to declare the carbon risk it faced from financing projects that contributed to global warming.

Earlier this year, it said it had set up a strict set of parameters that would guide all future financing decision as they related to new coal-powered stations. The position was broadly in line with the Organisation for Economic Cooperation and Development (OECD) Export Credit Agency Coal-Fired Power Finance Guidelines. It said it had observed the model, which assesses the financing of coal-fired power generation based on a country's energy poverty, technology and size of plant, since July 2018.

The bank said it would make its approved policy on lending to coal mining operations public once it had been through appropriate oversight and governance processes.

Its shares closed 0.7% down at R179.55 yesterday.





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