<\/p>\n
DBS, OCBC, and UOB have set S$200b loan portfolio emissions targets.<\/p>\n
Singapore’s major banks, DBS, OCBC, and UOB, have set sector-specific emissions reduction and net-zero targets for their indirect financial activities, known as Scope 3 financed (lending and investments) and facilitated (underwriting) emissions.<\/p>\n
These targets focus on ten carbon-intensive sectors and cover over S$200b in loan portfolios, representing the majority of their total financed emissions, according to Smartkarma\u2019s recent ESG Insight.<\/p>\n
The banks aim for intermediate reductions of 40% by 2030 and long-term reductions of 96% by 2040 or 2050, with net-zero targets for three sectors and nearly net-zero for most others. These targets are supported by science-based decarbonisation pathways specific to each sector.<\/p>\n
Setting Scope 3 financed and facilitated emissions targets is both good corporate citizenship and sound business practice. Financed emissions typically account for over 95% of a bank’s total greenhouse gas emissions, and addressing them is crucial for managing climate-related risks and opportunities.<\/p>\n
The key benefits include:<\/p>\n
Climate Risk Management: Financed emissions pose significant climate risks, particularly transition-related credit and market risks such as loan defaults and asset devaluations. Setting these targets provides valuable data for climate risk management and stress testing.<\/p>\n
Sectoral Decarbonisation: Sector-specific financed emissions targets help embed climate action across banking activities. While this may involve divestment from high-carbon sectors like thermal coal, the focus is on financing clients’ decarbonisation and low-carbon transition goals.<\/p>\n
Commercial Opportunities: Facilitating clients’ transitions helps banks identify new climate-related opportunities, particularly in developing innovative transition finance products.<\/p>\n
Regulatory Relationships: With financial systems increasingly focused on climate-related systemic risks, banks can assist regulators by setting financed emissions targets, gaining a head-start on mandatory Scope 3 emissions reporting.<\/p>\n
Stakeholder Sentiment: Setting these targets enhances transparency and accountability regarding banks’ emissions, which is increasingly valued by clients and shareholders who are concerned about the climate impacts of their banks and investments.<\/p>\n
<\/p>","protected":false},"excerpt":{"rendered":"
DBS, OCBC, and UOB have set S$200b loan portfolio emissions targets. Singapore’s major banks, DBS, OCBC, and UOB, have set sector-specific emissions reduction and net-zero targets for their indirect financial activities, known as Scope 3 financed (lending and investments) and facilitated (underwriting) emissions. These targets focus on ten carbon-intensive sectors and cover over S$200b in […]<\/p>\n","protected":false},"author":1,"featured_media":1860,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1859","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bez-rubriki"],"featured_image_src":{"landsacpe":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/06\/DBS-51-1140x445.jpeg",1140,445,true],"list":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/06\/DBS-51-463x348.jpeg",463,348,true],"medium":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/06\/DBS-51-300x199.jpeg",300,199,true],"full":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/06\/DBS-51.jpeg",2560,1700,false]},"_links":{"self":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/1859","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/comments?post=1859"}],"version-history":[{"count":1,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/1859\/revisions"}],"predecessor-version":[{"id":1861,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/1859\/revisions\/1861"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media\/1860"}],"wp:attachment":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media?parent=1859"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/categories?post=1859"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/tags?post=1859"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}