The bank is raising its sustainability target as it increases its efforts to help customers incorporate sustainable business practices into their overall business strategy.
DBS aims to reach S$50 billion ($37.53 billion) in sustainable financing by 2024, up from its initial target of S$20 billion, the bank announced on Wednesday in a statement.
This move comes amid renewed focus on sustainability as a result of the Covid-19 pandemic, and as more companies seek to advance their corporate sustainability agenda through sustainable financing, DBS said.
«Since Covid-19 hit, many companies have actually doubled down on their ESG commitments and we saw a marked increase in the number of corporate interest in sustainable financing,» Tan Su Shan, DBS group head of insitutional banking, said.
Sustainable Financing Deals
The bank reported «a good mix» of sustainable financing deals across the markets it operates in and across sectors. The green loan market is dominated by borrowers in the real estate sector, but also includes renewable energy equipment makers and electric vehicle battery plants, DBS said.
DBS has concluded over 100 sustainable financing deals worth about S$17 billion since 2018.
In 2020, DBS launched a sustainable and transition finance framework and taxonomy, and introduced transition financing as part of the bank's efforts to help clients from key industries to transition to a low-carbon economy.
