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Just Share accuses Standard Bank of incomplete reporting on oil and gas exposure

4 Jun 2025

Three years after a near-unanimous shareholder vote for greater climate accountability, Standard Bank is being accused of missing the mark on climate targets.

At Standard Bank’s 2022 annual general meeting, shareholders overwhelmingly voted in favour of a climate resolution calling for greater transparency and emission reduction commitments.

Co-filed by Aeon Investment Management and shareholder activism organisation Just Share, the advisory resolution passed, backed by 99.74% of shareholders.

It laid out the following roadmap:

31 March 2023: Report progress on calculating greenhouse gas (GHG) emissions from oil and gas exposure.

31 March 2024: Disclose a baseline of these emissions.

31 March 2025: Publish short-, medium- and long-term reduction targets aligned with the Paris Agreement.

Now Just Share is accusing Standard Bank of delivering an “incomplete picture” of its fossil fuel involvement by adjusting the metric tools by which it holds itself accountable.

What you should know about the Paris Agreement, the APS and financial institutions

Click on each block in the infographic for a pop-up explanation.

Changing the metric or the mission?

According to Standard Bank, it has ticked the baseline disclosure box.

The bank’s 2024 Climate Related Financial Disclosures Report states that its baseline disclosure has been “completed for oil and gas”.

What the bank has actually disclosed, Just Share argues, covers just 19% of its total oil and gas exposure and only 82% of on-balance sheet upstream oil and gas loans.

Read more: Standard Bank CEO says their climate strategy falls within Paris Agreement

“It has not provided a timeline for setting targets for mid and downstream exposure,” said Karishma Bhoolia, a senior climate risk analyst at Just Share.

“This incomplete picture of Standard Bank’s oil and gas exposure allows the bank to downplay the significant impact that its involvement in midstream projects such as the East African Crude Oil Pipeline will have on its oil and gas exposure and financed emissions.”

Oil and gas value chain explained

Upstream: Exploration and extraction of oil and gas

Midstream: Transportation and storage thereof

Downstream: Refining oil and gas and selling it to customers

Moving the goalposts

Standard Bank’s 2022 Climate Policy committed the bank to reducing upstream oil and gas exposure by 5% by 2030.

This target is nowhere to be found in the bank’s 2025 Climate Policy.

Now Standard Bank commits to ensuring that oil and gas lending remains under 3% of its total loans and advances by 2030.

Read more: Does Standard Bank’s clean energy funding outweigh its controversial dirty energy deal facilitation?

According to Just Share, this new figure is both weaker and more ambiguous. The updated policy is based around physical intensity metrics (a measure of emissions per barrel of oil) without accompanying absolute targets or timelines, a report by Just Share states.

“The targets are weaker than those contained in the bank’s 2022 Climate Policy and allow the bank to significantly increase its exposure to oil and gas,” Boohlia said.

Boitumelo Sethlatswe, the head of sustainability at Standard Bank, said that their updated targets and disclosures balanced climate ambition with the realities of sub-Saharan Africa’s development needs.

“We have set robust, measurable targets that directly address our material oil and gas financed emissions,” he said. “These include a 10% reduction in physical intensity for upstream oil and gas, limiting upstream exposure to 3% of total loans, and ensuring we finance at least three times more renewable energy than non-renewable power.”

These targets are grounded in the International Energy Agency’s (IEA) Announced Pledges Scenario (APS), which is compatible with the Paris Agreement’s objectives, Sethlatswe said.

What is a baseline emission?

An article by global consulting firm McKinsey describes baseline emissions as a “footprint”, meaning a measure of emissions recorded during a specific period, like a year. This measure is then taken as a starting point against which to measure change.

From Paris to pledges

The bank appears to have reoriented its climate ambition away from the Paris Agreement.

In its 2024 Climate Related Financial Disclosures Report, the bank states that it is “committed to the goals of the Paris Agreement”.

While the 2022 policy referenced targets aligned with the Paris Agreement, the updated 2025 version uses the IEA’s Announced Pledges Scenario (APS) as a pathway, which is a model that assumes countries will meet their net zero targets, probably leading to a 1.7℃ temperature rise by 2100.

While the IEA’s Net Zero by 2050 scenario (which aligns with 1.5℃ ) is mentioned, the only reference to the Paris Agreement in the 2025 Climate Policy is to its principle of “common but differentiated responsibilities”.

No explanation is offered for the change.

Standard Bank maintains that its current actions deliver on the requirements of the 2022 shareholder resolution.

The East African Crude Oil Pipeline elephant

One of the blind spots in Standard Bank’s climate reporting, according to Just Share, is midstream oil and gas, which includes its potential financing of the East African Crude Oil Pipeline (EACOP).

Read more: Fate of vexed East African pipeline project may hinge on looming decision by China’s Exim Bank

Just Share says that the 2030 limit the bank touts applies only to upstream investments and that there is no restriction on midstream and downstream exposure.

“EACOP funding is a midstream oil and gas asset,” Boohlia explained. “The 2030 limit has no impact on this funding. Thus, Standard Bank could continue to fund EACOP and other projects like it without limit.”

Standard Bank’s oil and gas portfolio accounts for nearly 80% of its operational emissions, according to Sethlatswe.

“We continue to work on improving data availability for midstream and downstream activities, which will inform future target setting,” he said.

How does Standard Bank stack up?

An assessment of South Africa’s 13 largest banks by non-profit group Bank Green paints a bleak picture. Not one received a “great” rating when it came to climate responsibility.

Read more: Put your money where your (morals) are — where SA’s top 5 banks rank in climate policy

According to the group’s findings, one third of the banks assessed failed to provide transparency regarding lending to the fossil fuels and renewable energy sectors, and only five out of the 13 reported any financed emissions.

Transparency, continuous improvement, and supporting a just energy transition remained a commitment to Standard Bank, Sethlatswe said.

Investor pressure mounting

As a shareholder itself, Just Share says it will continue to hold Standard Bank accountable.

It recommends that investors hold Standard Bank accountable to update its 2025 Climate Policy to:

Include emission reduction targets aligned with the Paris 1.5℃ pathway.

Provide a strategy of how these targets will be met.

Set targets across the full oil and gas value chain.

“Banks can either exacerbate the climate emergency or play a constructive role in urgently reducing greenhouse gas emissions and financing the transition to a low-carbon, inclusive economy,” Boohlia said. DM

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