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DBS Sets Targets to Cut Emissions From Carbon-Intensive Sectors

By Fabiana Negrin Ochoa


Singapore's DBS Group Holdings Ltd. has set new climate targets for the most carbon-intensive segments that it finances, as banks come under increased pressure to decarbonize their portfolios.

The targets announced Tuesday cover Scope 3 financed emissions in nine industry sectors, including power, oil & gas, and steel, the lender said in a statement. Such emissions make up the bulk financial institutions' carbon footprint, covering indirect emissions from lending, investment, or underwriting activities.

DBS, Singapore's largest bank, said the targeted sectors represent 31% of its outstanding loans and the vast majority of financed emissions from its Institutional Banking Group.

It has tailored targets for each sector, with decarbonization goals for seven. For oil & gas, DBS aims to cut absolute emissions--indirect and direct--attributable to it by 28% by 2030. For power, automotive, aviation, shipping, steel and real-estate, it is aiming for lower emissions intensity, the volume of emissions relative to a specific activity or output.

For food & agribusiness and chemicals, DBS set data-coverage targets to map the way for future decarbonization targets. Given the lack of industry consensus on net-zero pathways and limited disclosure, "it is premature to set emissions-reduction targets" for these two sectors, it said.

DBS will report progress toward its targets annually. The targets align with the goal of net zero by 2050, and will not only guide financing away from high-emitting activities but "also protect our shareholders from the risks associated with being left behind in the transition and help them gain from the tailwinds against this megatrend," the bank said.

DBS's move comes amid similar steps by others in the region as regulators crack down on climate risk, including with mandatory disclosure rules and climate-stress tests. Malaysia's Maybank last month set a Scope 3 financed emissions baseline and transition strategy for its portfolio, while Commonwealth Bank of Australia set new targets in four priority sectors and Westpac Banking Corp. released its first sector targets in July.


Write to Fabiana Negrin Ochoa at


(END) Dow Jones Newswires

September 13, 2022 01:32 ET (05:32 GMT)

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