Championing sustainability in the corporate world: 4 companies show the way
DBS: Pushing the boundaries of green finance
Helge Muenkel, chief sustainability officer at DBS, said the bank is committed to enabling a “just transition” in the region. The phrase refers to efforts to ensure that the benefits of a transition into a green economy are shared widely, while also supporting those who stand to lose out economically, such as workers, consumers, communities or industries.
The bank does this through a three-pillar approach to sustainability that encompasses responsible banking, responsible business practices and delivering impact beyond banking. “Our sustainability strategy focuses on embedding environmental and social considerations into the fabric of our business,” he said.
The bank’s sustainable financing commitments grew by 37 per cent year on year to S$70 billion as at the end of 2023. To enhance its ability to support clients in their transition to net-zero, it uses digital tools such as generative artificial intelligence for climate and ESG risk assessments.
Muenkel said: “We work with large corporations on climate to deliver on the bold commitments we made in 2022 when we published the Our Path to Net Zero report. We have also significantly dialled up our support to SMEs (small and medium-sized enterprises) as they begin their shift to lower-carbon business models through sustainable finance, advisory and initiatives such as the ESG Ready Programme.”
Creating a low-carbon economy requires collective action across multiple industries, segments and stakeholder groups, he added. “No one entity can do it alone.”
In its drive to advance ecosystem change, for example, the bank is a founding shareholder of Climate Impact X, a carbon market and exchange that seeks to address environmental challenges.
To promote high-quality disclosures, the bank also takes part in more than 10 policy and industry initiatives to come up with more consistent standards for data reporting at the global, regional and national levels. DBS is the only Asia-Pacific representative on the Global Reporting Initiative technical committee, which is developing a pioneering sector-specific guidance for banks.
Beyond environmental initiatives, DBS does its part for social responsibility: It has pledged up to S$1 billion to support vulnerable communities in Singapore and other key markets; its employees will put in 1.5 million volunteer hours over the next decade to this cause.
Muenkel said: “We recognise our larger role in society. As part of our efforts to create impact beyond banking, we leverage our business, resources and talents to be a force for good, such as by banking the under-banked and driving financial inclusion.”
DBS will continue to help its clients advance their sustainability agendas, particularly in areas such as nature conservation, renewable energy and sustainable supply chains.