DBS Outlines Decarbonisation Targets for Major Industries
DBS Group Holdings Ltd
DBS Group has set decarbonisation targets for nine industries, including electricity, oil and gas, aviation, and shipping, and has reiterated its commitment to net-zero financed emissions by 2050.
According to DBS, the nine sectors account for 31% of the bank's outstanding loans but are the most carbon-intensive institutional banking segments it has financed.
Piyush Gupta, the CEO of DBS, said:
"We do believe that this is one of the most expansive sets of commitments that exist in the financial sector."
DBS promised in October to align its loan and investment portfolios with net zero emissions by 2050 but did not specify a breakdown of the sectors.
DBS has also set an absolute reduction target for the oil and gas sector. It plans to cut absolute emissions in the sector attributable to the bank by 28% by 2030.
"With the announcement, the bank aims to encourage and enable its institutional banking customers to pivot their business strategies and accelerate their transition journeys.
"This could be achieved in various ways, including by providing them with sustainable and transition finance solutions," said DBS.
Asian banks such as DBS, Nomura Holdings, and Macquarie Group are members of the Glasgow Financial Alliance for Net Zero (GFANZ), a body tasked with coordinating the financial sector's contribution to the battle against climate change.
DBS also set decarbonisation targets for the automotive, real estate, and steel industries, as well as food and agribusinesses and chemicals.