Sustainable development a priority for Singaporean banks
(12 October 2015 – Singapore) A group of local and foreign banks in Singapore has urged its members to make "sustainable development" part of their lending requirements, increasing pressure on companies linked to land-clearing fires in Indonesia.
Last week, the 158-member Association of Banks in Singapore (ABS) issued guidelines for the inclusion of greenhouse gas emissions, deforestation, forest degradation and biodiversity loss among the criteria for approving commercial loans.
The move came following fires illegally started to clear land for plantations on Sumatra island and the Indonesian part of Borneo.
ABS director Ong-Ang Ai Boon said in a statement: "The banking sector in Singapore wants to play a bigger role in driving responsible business and long-term sustainable development."
Palm oil and pulp and paper companies are believed to be the main culprits behind the use of burning to clear massive tracts of land for their plantations, but prosecution by Indonesian authorities has been rare, prompting affected countries such as Singapore to resort to economic pressure.
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