SINGAPORE – South-east Asia’s largest lender DBS on Tuesday outlined its decarbonisation targets in some of the most carbon-intensive sectors it finances, as the bank ploughs ahead with its net-zero pledge.
Decarbonisation targets have been set for seven sectors – power, oil and gas, automotive, aviation, shipping, steel and real estate.
Data coverage targets were also set for two sectors – food and agribusiness, as well as chemicals.
In particular, an absolute emissions reduction target has been set for the oil and gas sector. By 2030, the bank is looking to reduce the absolute emissions in this sector which are attributable to DBS by 28 per cent. This is in line with the International Energy Agency’s Net Zero Emissions by 2050 Scenario.
The bank said its target will cover Scope 1, 2 and 3 emissions.
Collectively, the nine sectors represent the most carbon-intensive institutional banking segments financed by DBS.
They represent 31 per cent of the bank’s outstanding loans but constitute the vast majority of the Institutional Banking Group’s financed emissions.
The lender said its targets will be reviewed periodically as science and client data become available. It will also update on its progress annually through its Sustainability Report.
The group’s chief executive officer Piyush Gupta said: “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.”
Mr Piyush noted that the bank’s decarbonisation targets will act as the ‘north star’ for its financing activities and guide the group to net zero by 2050 through measurable change.