SINGAPORE (THE BUSINESS TIMES) – DBS Financial institution has raised its sustainable finance goal for 2024 to $50 billion, which is effectively over twice the lender’s earlier $20 billion goal for a similar yr.
The transfer stems from extra firms looking for to advance their company sustainability agenda via sustainable financing, mentioned DBS in a media assertion issued on Thursday (Feb 4).
“We thought our earlier goal of $20 billion for renewable and different inexperienced financing could be a stretch and had been vastly heartened on the degree of buyer curiosity in shifting from business-as-usual mode to adopting sustainability of their methods,” mentioned Ms Tan Su Shan, DBS’ group head of institutional banking.
Ms Tan notes that many firms have doubled down on their environmental, social and governance (ESG) commitments because the Covid-19 pandemic, with a marked enhance within the quantity of company curiosity in sustainable financing.
In its announcement, DBS mentioned the brand new inexperienced financing dedication reinforces its efforts in “accountable banking” – a key pillar of DBS’ method to sustainability. Elevating the goal accelerates the financial institution’s sustainability agenda in serving to clients incorporate sustainable enterprise practices into their general enterprise technique, it added.
The financial institution mentioned it continues to see mixture of sustainable financing offers throughout the markets it operates in, and throughout sectors. It’s also concerned in financing renewable vitality gear makers and electrical car battery vegetation, even because the inexperienced mortgage market continues to be dominated by debtors in the true property sector.
Based mostly on Ms Tan’s observations, ESG issues are “very a lot on the forefront” amongst firm stakeholders, who additionally need to perceive and measure the worth firms create past earnings.
“To stay related, firms might want to steadiness earnings with assembly the wants of society… We need to do our half to assist handle key areas of environmental and social considerations and help Singapore in its ambition to be a inexperienced finance hub,” she mentioned.
Since 2018, DBS has concluded greater than 100 sustainable financing offers value about $17 billion in whole.
Landmark sustainable and inexperienced financing transactions performed by DBS in 2020 embody the US$1.11 billion (S$1.48 billion) dual-tranche inexperienced venture bond by Star Power Geothermal, PSA Marine’s three-year €30 million (S$48.1 million) equal sustainability-linked mortgage, and the €500 million Korea Housing Finance Company Covid-19 social bond.
OCBC Financial institution in June mentioned that it plans to develop its sustainable finance portfolio to $25 billion by 2025. The financial institution cracked its 2022 purpose of $10 billion in sustainable finance within the first quarter of 2020 as a substitute, about two years forward of its goal.