DBS Bank sets decarbonisation targets for seven key sectors

• DBS Bank set a target to become net zero by 2050, last October.
• It has now set sectoral targets following the same lines for nine key sectors.
• Piyush Gupta of DBS Bank said that the bank’s net zero commitment must be supported by a clear and detailed roadmap and plan.

Development Bank of Singapore (DBS) has set sectoral decarbonisation and data coverage targets across nine sectors. This will help provide a detailed roadmap for its plan to turn net zero by 2050.

“Our firm conviction is that our net zero commitment, made last October, must be supported by a clear and detailed roadmap and plan. However, charting a viable course of action that is constructive and impactful is not easy, given challenges in mapping out suitable industry pathways and realistic medium-term milestones in markets with differing starting points,” said Piyush Gupta, Chief Executive Officer, DBS Bank.

It has set decarbonisation targets for seven sectors — power, oil and gas, automotive, aviation, shipping, steel and real estate. Data coverage targets have been set for two sectors — food and agribusiness and chemicals, paving the way for future sectoral decarbonisation targets.

These nine sectors are the most carbon-intensive institutional banking segments, representing 31% of its outstanding loans but constitute the vast majority of the Institutional Banking Group’s financed emissions.

“The decarbonisation targets will act as the ‘north star’ for our financing activities guiding us to net zero by 2050 through measurable change,” Gupta added.

The bank set a target to reduce the absolute emissions in the O&G sector by 28% by 2030.

“Decarbonisation cannot be achieved in silos – the global banking and business community, and world leaders have a part to play in balancing the climate agenda, social equity and economic development. Collectively, we must exercise leadership by working towards a balanced, sustainable and just transition,” Gupta further explained.

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