The chief executive of Standard Chartered has issued a sharp rebuke to banks that are retreating from their climate commitments, warning that such moves undermine global efforts to combat climate change.
In a strongly worded statement, the CEO emphasised that financial institutions have a critical role to play in supporting the transition to a low-carbon economy. "Walking back on sustainability pledges is not just irresponsible—it's a betrayal of our collective future," he said.
Banks Under Fire for Weakening Climate Goals
Several major banks have recently scaled back their environmental, social, and governance (ESG) targets, citing economic pressures and regulatory uncertainty. However, critics argue that this backsliding jeopardises progress toward net-zero emissions by 2050.
The Standard Chartered CEO highlighted that financial institutions must align their lending and investment strategies with science-based climate targets. "Short-term profits should not come at the expense of long-term planetary stability," he added.
Call for Stronger Industry Leadership
The banking sector has faced increasing scrutiny over its role in financing fossil fuel projects despite public commitments to sustainability. The CEO urged peers to adopt stricter policies on fossil fuel financing and accelerate funding for renewable energy initiatives.
"The financial industry must lead by example," he stated. "We cannot afford half-measures when the stakes are this high."
Environmental campaigners have welcomed the remarks, calling for greater accountability in corporate climate action. Meanwhile, some analysts warn that inconsistent policies across banks could create market instability.
As pressure mounts on financial institutions to uphold their climate promises, the debate over their role in the green transition shows no signs of slowing down.
