Singapore’s DBS Group, the largest bank in the country and also the biggest in Southeast Asia by assets, has significantly increased its sustainable financing commitments. As of December, these commitments, net of repayments, have surged by 37.3% to 70 billion Singapore dollars ($52.10 billion), up from S$51 billion in 2022.
This notable increase underscores DBS’s strong commitment to sustainable finance and its proactive approach towards environmental, social, and governance (ESG) initiatives. By expanding its sustainable financing commitments, DBS aims to play a pivotal role in driving positive change and supporting sustainable development in the regions it operates in.
Furthermore, DBS has made significant strides in reducing its exposure to thermal coal, a major contributor to greenhouse gas emissions and climate change. The bank has reduced its thermal coal exposure by 18.2% to S$1.8 billion last year compared to S$2.2 billion in 2022. This reduction demonstrates DBS’s recognition of the environmental risks associated with thermal coal and its commitment to transitioning towards cleaner and more sustainable energy sources.
In alignment with its efforts to mitigate climate change and promote sustainable practices, DBS has updated its coal policy to align with regional taxonomies. The updated policy focuses on the managed phase-out of coal, reflecting DBS’s proactive stance towards addressing climate-related risks and supporting the transition to a low-carbon economy.
According to Helge Muenkel, Chief Sustainability Officer at DBS, the bank’s commitment extends beyond merely reducing thermal coal exposure. Muenkel emphasized DBS’s broader goal of supporting a just transition by facilitating the early closure of coal power plants. This approach underscores DBS’s proactive efforts to address climate change and promote sustainable development in the communities it serves.
These announcements were made during a media briefing preceding the launch of DBS’s sustainability report, highlighting the bank’s transparency and accountability in disclosing its sustainability initiatives and progress. Through its robust sustainability efforts, DBS continues to demonstrate its leadership in sustainable finance and its commitment to driving positive environmental and social impact.