DBS has announced that it is the first Singapore bank to become a signatory on the United Nations-convened, industry-led Net-Zero Banking Alliance (NZBA).
The announcement comes in the lead up to the UN climate-focused COP26 conference which kicks off in Glasgow on Oct 31.
The NZBA is a component of the Glasgow Financial Alliance for Net Zero (GFANZ) and is hosted by the UN Environment Programme Finance Initiative.
“Fantastic that DBS will be the first Singaporean bank to join the Net-Zero Banking Alliance and GFANZ, the gold standard for net zero commitments and action. By joining, DBS will work with its corporate clients, investors, fellow GFANZ members and the public sector to translate climate ambition into action that will reduce emissions while growing our economies,” says Mark Carney, UN Special Envoy for Climate Action and Finance and UK Prime Minister Johnson’s Finance Adviser for COP26.
See: DBS commits to zero thermal coal exposure by 2039
Piyush Gupta, CEO of DBS Bank, says, “Joining the GFANZ alliance and making a commitment to net-zero carbon emissions by 2050 is not something that we take lightly. Determining suitable transition pathways for our customers in different industries, and creating realistic medium-term milestones in the journey is challenging, given the starting position in many countries in our part of the world.”
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“Nevertheless, we firmly believe that collective action is essential to achieving a net-zero future, and now have some line of sight towards a viable course of action that is constructive and impactful,” Gupta adds/
The NZBA was launched in April 2021 and currently includes 87 banks across 36 countries, representing more than 40% of global banking assets amounting to around USD65 trillion.
As a signatory of the NZBA, DBS commits to transitioning the operational and attributable greenhouse gas (GHG) emissions from its lending and investment portfolios to align with pathways to net zero by 2050 or sooner.
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The bank also commits to annually publishing absolute emissions and emissions intensity in line with best practice and within a year of setting targets as well as taking a robust approach to the role of carbon credits/ offsets in transition plans.
As part of its sustainability efforts, DBS has committed to achieving net zero operational carbon emissions by 2022 and zero thermal coal exposure by 2039. It has also raised its sustainable finance target to $50 billion by 2024.
As at 10.56am, DBS shares are trading up 18 cents or 0.57% higher at $31.80.
Photo: Bloomberg
