Finance & Economics

Standard Chartered CEO Says About Significance of Environmentally Conscious Investing

Bill Winters, Executive Director of Standard Chartered, believes that environmentally conscious investment will benefit from the term of business interests in the context of the prospects for developing players in this sector.

Standard Chartered CEO Says About Significance of Environmentally Conscious Investing

At the same time, the mentioned point of view does not envisage the so-called crusade of the United States against mission-driven investments as a factor of significant impact. Currently, commercial investing based on environmental, social, and governance factors has become what can be described as a politically polarized issue. In the United States, legislators who are members of the Republican Party have defined the specified investment formula as a form of awakened capitalism. Within the framework of this paradigm of perception of the approach to financing large-scale projects related to the environment, social sphere, and governance, the opinion has been formed that the corresponding concept defines as a priority task that ensures the implementation of liberal goals and provides for consideration of the issue of the commercial result of investment as a factor of lesser importance.

Democratic lawmakers disagree with the specified point of view of members of the Republican Party. According to them, the public statement of the failure of business approaches containing the imperative of ethical responsibility, with the implied subsequent discrediting or even cancellation of such commercial concepts, is an attempt to provoke a culture war. Democratic lawmakers also argue that the statements of their political opponents should be interpreted as measures to protect the special interests of corporations.

Analysts say that the results of the presidential elections in the United States, which will take place in the second half of the current year, will allow them to form an understanding of the prospects for launching a large-scale campaign against investment, based on environmental, social, and governance factors, in the country. Also, after the election process, there will be signals about how deep and lasting the consequences of statements against the mentioned approach to commercial investments can be.

Bill Winters, while talking to media representatives, described the current political situation in the United States as toxic. He also drew attention to the fact that the state of Texas, the largest renewable energy center in the USA, is making accusations against pension fund managers who support the agenda of the so-called awakened capital or concepts similar to suchlike an approach.

Currently, the tendency to oppose the implementation and promotion of political strategies that define the solution of issues related to climate problems as one of the main goals is a kind of trend not only in the United States. In European countries, there are signals that the local public is beginning to perceive the introduction of so-called green technologies more negatively. The corresponding sentiments are largely explained by the fact that businesses and citizens are beginning to face the costs of the energy transition that are sensitive to them.

When asked by reporters about concerns that companies are starting to reduce their commitments to the sphere of sustainable development, Bill Winters said that, in his opinion, in this case, there was no significant backing away from the original goals.

The head of Standard Chartered says that his financial institution has been constantly improving the zero-result methodology since the approval of the dual goal as the main guideline. In this case, the result is meant in terms of the consequences of the activity on the state of the environment.

Standard Chartered, whose business is focused on emerging markets, aims to achieve net zero carbon dioxide emissions within its own firm by 2025 and net zero in its financed emissions by 2050.

During a conversation with journalists, Bill Winters said that the financial institution he heads intends to become a leader in thought and action in terms of policy regarding the elimination of carbon dioxide emissions. Mr. Winters also noted that the bank’s clients are in solidarity with the corresponding aspiration. Separately, he noted the absence of any signs of abandonment of the mentioned goal.

During a conversation with journalists, the head of Standard Chartered drew special attention to the fact that this bank intends to create a business to support customers and already has a result in the corresponding direction in the form of earnings of $720 million last year. Mr. Winters expects that in 2024, the mentioned indicator will show growth and reach the $1 billion mark. He noted that the company cannot continue to direct resources to business development if, after a certain point, the corresponding efforts do not bring an acceptable result. In this context, Bill Winters noted that commercial investment is not philanthropy and does not belong to the category of political activity. The head of the financial institution stated that the right approach is to make the correct decisions in terms of ensuring an acceptable ecological state of the planet and from the point of view of the interests of own business. Standard Chartered adheres to the corresponding concept.

Since the beginning of 2024, the share price of the financial institution headed by Bill Winters has decreased by about 3.8%.

As we have reported earlier, Standard Chartered CEO Says About China’s Biggest Problem.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.