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DBS Becomes First Singapore Bank to Join Net-Zero Alliance

By Fabiana Negrin Ochoa

 

DBS Group Holdings Ltd. has become the first Singaporean bank to join the Net-Zero Banking Alliance, a United Nations-convened group of lenders committed to net-zero emissions by 2050.

Joining the pact, which has 87 members across 36 countries representing more than 40% of global banking assets, commits DBS to aligning its lending and investment portfolios with net-zero emissions by 2050, it said Friday.

That includes all emissions generated either directly or indirectly throughout the value chain, known as Scope 1, 2 and 3.

Along with other signatories of the pact, which includes major names like Goldman Sachs and Nomura Holdings Inc., DBS will publish absolute emissions and emissions intensity figures annually within a year of setting targets.

Singapore's largest bank also provided updates on some of its other climate goals on Friday. The bank said it is tracking steadily toward its goal of having zero exposure to thermal coal by 2039. It has been incrementally restricting funding to coal since 2018, including by imposing a blanket cease on new coal assets financing in April 2019.

DBS is also progressing toward its target of 50 billion Singapore dollars (US$37.20 billion) in sustainable financing by 2024. As of October, it had concluded S$30 billion in financing, it said.

DBS Chief Executive Piyush Gupta acknowledged that determining suitable carbon transition pathways for customers will be a challenge, but that collective action is fundamental for a net-zero future and there is now "some line of sight towards a viable course of action that is constructive and impactful."

 

Write to Fabiana Negrin Ochoa at fabiana.negrinochoa@wsj.com

 

(END) Dow Jones Newswires

October 29, 2021 00:05 ET (04:05 GMT)

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