Key Points:
- DBS Bank’s sustainable financing commitments reach $70 billion by the end of 2023, reflecting a significant increase from the previous year.
- DBS is phasing out commitments in thermal coal power plants and engaging SMEs through sustainability training and partnerships.
- Ambitious decarbonization targets have been set, with a net-zero goal by 2050 and interim targets for 2030 across various sectors.
- DBS’s sustainability efforts align with regulatory requirements, making climate reporting mandatory for financial industry players.
DBS Bank is intensifying its efforts in sustainable financing, with commitments reaching approximately $70 billion by the end of 2023. This marks a significant increase from $51 billion in 2022, showcasing the bank’s dedication to environmental, social, and governance (ESG) principles.
Chief Sustainability Officer, Mr. Helge Muenkel, highlighted the bank’s progress during a media briefing ahead of the release of its sustainability report on March 6. The sustainable financing commitments include initiatives such as green loans, sustainability-linked loans, and transition loans. DBS facilitated close to $18 billion of ESG bond issuances, further contributing to its green efforts.
One example of DBS’s sustainable financing is a $180 million green loan provided to the Malaysian public sector pension fund KWAP to refinance a green office tower in Australia. Additionally, the bank has taken steps to phase out commitments in thermal coal power plants, aligning with its goal to cease financing in this area by 2039.
Mr. Muenkel emphasized that while progress has been made, more action is needed to address environmental challenges effectively. DBS is committed to phasing out thermal coal activities but acknowledges the complexity of this task, particularly in terms of replacing energy sources and supporting affected communities.
DBS has engaged over 1,000 small and medium-sized enterprises (SMEs) through sustainability training courses and programs, demonstrating its commitment to capacity-building and education in addition to financing. Collaborations with partners like fashion retailer H&M have enabled DBS to provide technical assistance to SMEs in improving energy efficiency and transitioning to renewables.
The bank has set ambitious targets for decarbonization, with a net-zero target by 2050 and interim goals for 2030. These targets cover seven sectors, including power, oil and gas, and automotive, with specific emission reduction objectives tailored to each sector.
DBS’s sustainability efforts align with regulatory requirements, with climate reporting becoming mandatory for financial industry players from the 2023 financial year. This commitment underscores the bank’s proactive stance in addressing environmental concerns and promoting sustainable development.
