DBS Assigns Customer & Bank Decarbonisation Targets

Asia, Singapore
DBS Group
Environmental, Social and Governance (ESG)

(16 September 2022 – Singapore) DBS has set ambitious climate targets for both clients and its own operations, reviewing exposure to power, oil, gas, aviation and shipping sectors while detailing its sustainability commitments as major Banks join the race to fight climate change.

DBS’s decarbonisation targets not only comprise the Bank itself but its own customer base also in what it pronounces is the most comprehensive set of commitments by any bank globally. 116 banks have pledged to reach “net zero” carbon emissions by 2050.

 

The concept includes an actionable plan to drive carbon emissions to net zero following the bank becoming a signatory of the Net-Zero Banking Alliance in 3Q 2021. Delivering the plan will require a comprehensive redirection of the bank’s financing towards less carbon-intensive industries while also urging clients to implement sustainability policies themselves.

 

The decarbonisation targets will also encompass DBS' capital markets activities where the bank's total assets stood at S$686 billion as of December 2021 and customer loans at S$409 billion. Across seven high-emission industry verticals, cumulatively accounting for one third of DBS’s outstanding loans yet representing the majority of the institutional bank group’s financed emissions, the bank has set specific targets either for outright emissions in oil and gas, or intensity of emissions.

 

“We do believe that this is one of the most expansive set of commitments that exist in the financial sector. It is our responsibility to reduce greenhouse gas emissions from our own operations and, more importantly, to engage with our clients to reduce their footprint through the activities we finance” commented DBS CEO Piyush Gupta.

 

“Our clients who are heavy carbon producers realise the train has left the station and they have to do the right thing,” said DBS Group Head of Institutional Banking Business, Tan Su Shan.

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