UK-headquartered bank Standard Chartered has updated its approach to greenhouse gas (GHG) emissions reduction by turning its attention to the methane (CH4) emissions resulting from client activities, noting that its new CH4-inclusive target, “applicable to the oil and gas sector, builds on best practice and the stated ambition of leaders in the industry to address methane emissions, as outlined at COP28 [UN climate conference]”.

A CH4 target aligns, the banks says, with “its focus on reducing carbon dioxide-related (CO2)-financed emissions and supports our ambition to be net zero by 2050”. The bank has committed to set a baseline and identify a science-based target for sector-specific CH4 emissions by 2025.

The monitoring and reporting of CH4 emissions remains nascent. When compared with the equivalent CO2 emission profile, the impact of CH4 emissions is significantly higher, with estimates placing it at more than 25 times more potent, making it a critical lever in seeking to mitigate climate change.

By taking action on CH4-related emissions, the bank will work alongside its clients in transition to address a broader base of GHG emissions and seek outcomes that align with the Paris agreement.

“Addressing CH4 emissions is critical if we are to reduce the collective impact of GHG on our environment,” says Marisa Drew, the bank’s chief sustainability officer. “As technology for monitoring and identification improves, and with demonstrable commitment from clients, it is important to support and encourage the movement to new industry best practice with further accountability and transparency by setting targets that build on our existing decarbonization efforts.”