The Development Bank of Singapore (DBS) has established sectoral decarbonisation and data coverage targets for nine industries. This will aid in providing a precise roadmap for their goal of being net zero by 2050.
“Our firm conviction is that our net zero commitment, made last October, must be supported by a clear and detailed roadmap and plan. However, charting a viable course of action that is constructive and impactful is not easy, given challenges in mapping out suitable industry pathways and realistic medium-term milestones in markets with differing starting points,” said Piyush Gupta, Chief Executive Officer, DBS Bank.
It has set targets for decarbonization in seven sectors: power, oil and gas, automobile, aviation, shipping, steel, and real estate. Data coverage goals have been established for two industries: food and agriculture and chemicals, opening the basis for future sectoral decarbonization goals.
These nine industries are the most carbon-intensive institutional banking segments, accounting for 31 per cent of outstanding loans yet accounting for the vast majority of financed emissions for the Institutional Banking Group.
“The decarbonisation targets will act as the ‘north star’ for our financing activities guiding us to net zero by 2050 through measurable change,” Gupta added.
“Decarbonisation cannot be achieved in silos – the global banking and business community, and world leaders have a part to play in balancing the climate agenda, social equity and economic development. Collectively, we must exercise leadership by working towards a balanced, sustainable and just transition,” Gupta further explained.
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