DBS Bank Sets Decarbonization Targets for 9 Sectors

Singapore's DBS Group announces sectoral targets aligned with science-based decarbonization glide paths in its report "Our Path to Net Zero - Supporting Asia's Transition to a Low Carbon Economy." A total of nine industry sectors have been covered by decarbonization and data coverage targets: power, oil and gas (O&G), automotive, aviation, shipping, steel, real estate, food and agribusiness, and chemicals.

Piyush Gupta, Chief Executive Officer of DBS Bank, said the nine sectors represent the most carbon-intensive institutional banking segments financed by DBS. They represent 31 percent of the bank's outstanding loans but constitute most of the Institutional Banking Group's financed emissions. Acknowledging that the path to net zero requires a lower usage of fossil fuels, an absolute emissions reduction target has been set for the oil and gas sector, which is attributable to DBS by 28 percent. This aligned with the IEA Net Zero Emissions by 2050 scenario.

DBS said the company's 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 the challenges in mapping out suitable industry pathways and realistic medium-term milestones in markets with differing starting points. "That is why I am pleased that we can announce a set of ambitious, broad, and measurable actions that we can execute. The decarbonization targets will act as the north star for our financing activities, guiding us to net zero by 2050 through measurable change," Gupta said in a press conference on Tuesday.