The coronavirus has acted as a further catalyst more than an obstacle in boosting OCBC’s confidence to increase its sustainable loan target to S$25 billion by 2025.
This is up from the original S$10 billion ($7.2 billion) target which the bank achieved two years ahead of plan in the first quarter of this year.
OCBC participated in more than 20 green and sustainability-linked loans including renewable energy projects such as solar, onshore wind and offshore wind projects in markets like Taiwan, China, the United Kingdom, Australia and Malaysia.
Post-Virus Tailwinds
More than just not acting as an obstacle, the coronavirus pandemic has actually created greater momentum for sustainability, according to the bank which cited greater awareness for issues like the environment due to lower pollution and clearer skies amidst quarantines and scaled down businesses.
«The awareness and interest in sustainable projects has been increasing over the last few years, and COVID-19 has helped to draw attention to wider sustainability issues, including social ones,» said Mike Ng, head of structured and sustainable finance at OCBC.
«25-By-25»
According to the bank, its newly set target, dubbed «25-by-25», will also focus on two areas: diversification across industries and geographies.
On the former, OCBC highlighted up and coming sectors like renewable energy, clean transportation, education, water and waste management in addition to property development – the incumbent leader in sustainable finance. And on the latter, the bank named Myanmar, Malaysia, Taiwan, Hong Kong, Korea and Japan and Australia as attractive market opportunities.
«We believe our «25-by-25» target defines our commitment in addressing the challenges presented by climate change, and in contributing to the achievement of the United Nations Sustainable Development Goals,» Ng added.
