Mobilize adaptation finance for resilient infrastructure

This case study is part of the “Climate Resilience Awards for Business” an initiative by the World Business Council for Sustainable Development (WBCSD) in partnership with the Global Resilience Partnership (GRP), which celebrate businesses driving innovative and scalable solutions to strengthen climate resilience across operations, supply chains, and communities. Learn more here

Standard Chartered (SC) is a global bank connecting corporate, institutional and affluent clients to a network that offers unique access to sustainable growth opportunities across Asia, Africa and the Middle East. A significant proportion of its footprint markets are coastal, which means that adaptation represents both a risk and an opportunity for SC and its clients. SC aims to help its footprint markets adapt to impacts of climate change and identify new opportunities for growth via developing strategies and partnerships that promote adaptation investments.

From an internal focus: Climate risk primarily manifests as an operational, technology and cyber risk when physical risk disrupts SC’s properties, data centres and vendor arrangements. The Bank assesses the physical risk vulnerabilities of its existing sites on a regular basis and for new sites during the onboarding process.

From a clients’ focus: SC has launched the Guide for Adaptation and Resilience Finance in partnership with KPMG and the United Nations Office for Disaster Risk Reduction (UNDRR), which sets out guidance on what constitutes adaptation and resilience investment, mapping over 100 investable activities in this field. The Bank continues to drive adaptation financing opportunities, such as the initiative reflected in this case study.

SC completed its first adaptation finance deal for a corporate client by providing Bank Guarantees to Jinko Solar Co., Ltd. (JinkoSolar) to facilitate the trade of its storm and extreme-weather-resilient Tiger Neo N-type solar modules. These modules were delivered to solar photovoltaic farms in the United States (Florida), the United Arab Emirates, and Saudi Arabia, where extreme wind, storms and sandstorms degrade and disrupt solar technology, leading to economic losses on investments made. This also represents the Bank’s first labelled adaptation finance transaction in China.

The deal builds on the launch of SC’s breakthrough Guide for Adaptation and Resilience Finance, which sets out guidance on what constitutes adaptation and resilience investment and maps more than 100 investable activities. By applying this guidance in practice, the Bank demonstrates how adaptation and resilience can function as an investable asset class in markets exposed to acute physical risks.

This initiative demonstrates SC’s ability to leverage the full breadth of its cross-border capabilities alongside its unique adaptation finance expertise, to connect demand for advanced solar technology with supply, building long-term resilience into critical energy infrastructure across its markets.

Sustainability Impact

Climate

The initiative enables adaptation and resilience benefits for clients operating in regions exposed to extreme weather. By financing the delivery of storm- and extreme-weather-resilient solar modules, the initiative supports long-term operational continuity for solar photovoltaic farms in locations such as the United States (Florida), the United Arab Emirates, and Saudi Arabia, where extreme wind, storms, and sandstorms disrupt solar technology and result in economic losses.

Additionally, this supports reduction of GHG emissions associated from back-up fossil fuel generated electricity reducing the consumers Scope 1 & 2 GHG emissions or Scope 3, Category 11 - Use of Sold Products, for electricity suppliers. This is a probable outcome given the majority of electricity capacity in the USA, UAE and Saudi Arabia are fossil fuel powered.

The initiative contributes to enabling positive climate impact by strengthening the resilience of clean energy infrastructure to physical climate risks. It supports continued renewable energy generation under increasing acute climate hazards, aligning with the guidance set out in the Bank’s Guide for Adaptation and Resilience Finance, which maps over 100 investable adaptation activities.

Nature

The initiative delivers indirect positive impacts on nature by supporting clean, resilient energy infrastructure that limits greenhouse gas emissions and reduces climate-related pressures on the natural environment. It supports the continued operation of solar photovoltaic farms in regions exposed to extreme weather, helping avoid disruptions that can reduce the availability of renewable energy. By enabling the delivery of solar modules designed to withstand extreme wind, storms, and sandstorms, the initiative helps limit damage to solar assets and reduces the need for premature replacement. This avoids additional material use and resource extraction associated with equipment failure and contributes to maintaining low-carbon energy production in high-risk environments.

Social

The initiative delivers indirect social benefits through resilient energy infrastructure that supports access to clean energy, community safety and economic stability. It helps protect energy infrastructure in regions exposed to extreme weather, reducing the risk of power disruptions that can affect communities and businesses. It also enables clients like Jinko Solar to continue operations and growth, safeguarding employment and supporting long-term business continuity in communities dependent on reliable energy access.

Business Impact

Benefits

SC launched its Guide for Adaptation and Resilience Finance with the aim to provide the clarity needed across the market to accelerate investment into adaptation and resilience. In addition, the analysis in its Adaptation Economy Report reflected how every dollar spent on adaptation could generate up to USD 12 of economic benefit this decade, thus emphasizing the need to embed adaptation and resilience into financial decision-making to manage risks and identify new opportunities.

The Bank has put its Guide into action – demonstrating the commercial opportunity alongside the economic benefits of financing resilient infrastructure in markets that are acutely vulnerable to the negative effects of extreme weather.

This initiative reflects SC’s ability to leverage its cross-border capabilities and adaptation finance expertise to connect demand for resilient solar technology with supply, strengthening long-term resilience in critical energy infrastructure, and supporting clients in delivering clean energy security while enabling sustainable business growth. It reinforces the Bank’s leadership in ESG and its capacity to drive and scale similar climate-resilient projects globally.

Typical business profile

This initiative might be most relevant for:

• Climate-resilient exporters

• Producers of power in areas of high climate vulnerability

• Financial institutions focused on adaptation finance opportunities

Approach

1. Guide development – Standard Chartered co-authored and launched the Guide for Adaptation and Resilience Finance, providing market clarity and mapping over 100 investable adaptation activities.

2. Identification of client needs – The bank identified regions where extreme weather (storms, wind, sandstorms) degrades solar technology, leading to economic losses.

3. Transaction execution – Completed a labelled adaptation finance deal for Jinko Solar, providing Bank Guarantees to facilitate trade of resilient solar modules.

4. Deployment of resilient technology – Resilient solar modules (Tiger Neo N-type) were delivered to solar farms in the US (Florida), UAE, and Saudi Arabia.

5. Replication potential – Demonstrated a pilot model that can be scaled in other regions, showing adaptation finance as an investable asset class.

Stakeholders involved

• Project Lead: Mr. Alex Kennedy – Head, Sustainable Finance Solutions and Adaptation Finance Innovation Hub at Standard Chartered; Chair of the Climate Financial Risk Forum Adaptation Working Group

• Company functions (Standard Chartered)

  • Adaptation Finance Innovation Hub

  • Sustainable Finance Originators

  • Relationship Managers

• Main providers

  • Jinko Solar Co., Ltd – Globally leading PV module manufacturer and energy storage system integrator

Key parameters to consider

• Initiative maturity: The deal is SC’s first labelled adaptation finance deal for a corporate client following the launch of the Guide for Adaptation and Resilience Finance. This suggests that adaptation finance is still nascent, but it is actionable and has significant growth potential, supported by established guidance provided by the Guide.

• Geographical relevance: The initiative targets regions with high exposure to extreme weather

• Physical risk constraints: Locations exposed to extreme flood, storm, and wind risks require resilient infrastructure to maintain operational continuity.

• Sector relevance: Primarily applicable to solar photovoltaic infrastructure and adaptation-focused corporate clients.

• Financial instruments: The use of Bank Guarantees was central to facilitating the trade of resilient solar modules.

Implementation and operation tips

Challenges for adaptation finance include the absence of common market language, standard definitions and classification frameworks for adaptation and resilience-building investments and transactions. Interested parties are encouraged to refer to SC’s Guide for Adaptation and Resilience Finance for insights and practical guidance to drive investments.