As part of the framework, Bapco Energy has disclosed its absolute Scope 3 emissions targets. Unlike Scope 1 and 2 emissions that are directly related to Bapco Energy’s operations, Scope 3 indicates emissions for which the company is indirectly responsible – an important measure in combating climate change . The framework was developed in close collaboration with Standard Chartered, who acted as the company’s ESG advisor on the process.
Bapco Energy will be able to tap into the emerging investor and lender base on ESG in a robust and transparent manner. With the support of Standard Chartered, the framework has received a second party opinion from the ISS confirming its compliance with the ICMA’s Sustainability Linked Bond (SLBP) Principles and the LMA’s Sustainability Linked Loan Principles (SLLP).
“We are proud to publish our financial framework linked to sustainability and second party opinion from the ISS. Disclosure of our detailed and ambitious targets for decarbonisation, makes us the first national energy company to implement this practice which sets a global standard in the energy sector. Transparency in sharing these goals allows us to do our part in Addressing the global climate crisis more effectively, and we are committed to actively contributing to global and local sustainability agendas.This announcement underscores our commitment to commercially viable energy transformation to support the Kingdom’s efforts in the field of sustainability.Achieving net zero by 2060, said Mark Thomas, CEO of Bapco Energy Group .
Dr. Boutros Klink, Standard Chartered – Middle East excluding UAE CEO, said they are pleased to build on their longstanding relationship with Bapco Energy and support the Kingdom’s ambitions by establishing the sustainability-linked financing framework, which is testament to our market-leading sustainable financial capabilities.
“We are proud to have been a part of Bahrain’s economic growth over the past 100 years and hope to continue to do so for the next 100 years and beyond.”
“We commend Bapco Energy for its commitment to this framework and for its leadership among national energy companies in setting ambitious emissions reduction targets that will contribute to efforts seeking to mitigate climate change. At Standard Chartered, we are committed to supporting our customers around the world in our dynamic footprint as they venture into sustainable financing market to meet their ambitions in the field of environmental, social and corporate governance,” Klink added.
Bapco Energy lists its net Scope 1 and 2 emission intensity reduction targets, using 2017 as a baseline: 15% by 2025, 25% by 2030, 50% by 2040, and 75% by 2050; And by 2060, net Scope 1 and Scope 2 emissions will reach zero. Bapco Power is also committed to reducing Absolute Scope 1 and Sco 2 emissions by 30% from 2017 levels by 2035. To achieve its landmark Scope 3 targets, Bapco Power will work to reduce Absolute Scope 3 emissions within the Kingdom of Bahrain by 30% from 2017 levels by year 2035.; And by 2060, reach Net-Zero Scope 3 emissions.
Standard Chartered has a longstanding commitment to sustainable financing which is underpinned by a robust framework and approach to assessing, mitigating and managing environmental and social risks. The Bank continues to make and update commitments to sustainable financing and has set a number of goals, including mobilizing $300 billion in sustainable financing by December 2030; Achieve $1 billion in sustainable finance income by 2025; It aims to reduce emissions linked to financing activities to net zero by 2050.
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