Bank DBS Indonesia Dialing Up Transition Finance Towards Decarbonization

Dialing up DBS Bank Ltd’s (DBS Group) ambition to be net-zero emission by 2050, Bank DBS Indonesia continuously advances its commitment to support the DBS Group vision to become the “Best Bank for A Better World” across three pillars of sustainability namely Responsible Banking, Responsible Business Practice and Impact Beyond Banking. Today, Bank DBS Indonesia introduces Indonesia Sustainability Council, a board that contributes to implement strategies and roadmaps for Bank DBS Indonesia to tackle environment, social and governance (ESG) issues. Formed as a commitment to creating a sustainable future, Indonesia Sustainability Council will coordinate DBS Group’ sustainable efforts with the Group Sustainability Council and other sustainability councils in the bank’s five core markets outside Singapore.

DBS Group materially accelerated its climate agenda when publishing “Our Path to Net Zero” guidebook and established its very first set of net zero targets for its Scope 3 financed emissions attributable to DBS Group as a bank in September 2022. DBS Group’s decarbonisation targets are science-informed and represent one of the most ambitious and comprehensive sets in the global banking industry. The guide lists nine sectors as the main focus, namely the aviation, automotive, property, chemical, food and agriculture, oil and gas, energy, steel, and shipping sectors. All in all, these nine priority sectors are recognised as some of the most carbon-intensive sectors in the real economy and collectively account for a majority of global Glass House Gas (GHG) emissions. Moving forward, DBS Group will continually deliver and operationalise our net zero targets by focusing on the following key areas as priorities: our (i) people, (ii) data (iii) process, and (iv) and analytical tools, also as essence of our net zero action plan.

While Asia’s transition is very complex, for instance due to socio-economic considerations, there is nonetheless, tangible commitment towards a low-carbon future in the region. Of the over 140 countries that have announced or are considering net-zero targets, 25 are in Asia, with pledges covering about 47% of global emissions. Corporations in Asia are also making good progress in committing to or setting science-based decarbonisation targets. From just 60 companies in 2019, there are now over 1,000 such companies regionally – representing a quarter of signatories globally.

Helge Muenkel, Chief Sustainability Officer, DBS Group said, “Indonesia plays a vital role in accelerating decarbonisation in Asia as it currently has the largest number of coal-related activities. Transition finance is a key enabler as companies move from brown to green energy, and should be part of a suite of financial tools including blended finance to enable sustainable development. In 2020, DBS Group launched our Sustainable and Transition Finance Framework and Taxonomy to capture growing demand in the transition finance space in Asia. Our ability to reduce financial emissions are integral to the success of the decarbonization efforts of our customers, and we are committed to hand hold them throughout the process.”

Indonesia has committed to the bold ambition of achieving net zero emissions by 2060—or sooner. Meanwhile, DBS Group plans to achieve net-zero emissions by 2050, ahead of the countries in which it operates. While it is currently one of the largest contributors to greenhouse-gas emissions globally, the country is blessed with abundant reserves of renewable and sustainable energy resources.

Kunardy Lie, Chairman of Indonesia Sustainability Council, PT Bank DBS Indonesia said, “In Indonesia, we see abundant opportunities in driving the sustainability agenda through numerous financing solutions. We believe collaborative and strategic partnerships among industry players and regulators alike will be able to establish a common practice and approach to tackle ESG issues, aligning Indonesia with the rest of the world. Backed with our Asia connectivity and expertise in transition finance, our aim is to help accelerate corporations to decarbonize.”

DBS Group’s commitment for sustainable financing – consisting of green loans, renewable energy loans, sustainability loans and transition loans – is recorded total of SGD61 billion by end of 2022, exceeding the SGD50 billion target two years in advance. In Indonesia, as per July 2023, sustainability finance and transition loan has reached Rp 4 trillion or up by 253% which are mainly channeled to real estate, renewable energy and manufacturing industries as well as SOEs. In addition, Green Savings has also attracted customers to contribute to the community through a percentage of their savings. In the social front, Bank DBS Indonesia also carries out numerous collaborations with several parties such as companies, startups, and social entrepreneurs to present solutions to comprehensive environmental and societal issues. One of them is coordinating organic waste management with social enterprise partner for #MakanTanpaSisa campaign. This is done as an effort to reduce food waste which reached 276 tons of food impact as per July 2023 since its launch in 2020. In addition, DBS Foundation Grant Program 2022 provides grants to social entrepreneurs Waste4Change, Tridi Oasis, and SukkhaCitta to accelerate business growth and the positive impact they create.

More information about DBS sustainability effort please visit this page.

About DBS

DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.

Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the“Safest Bank in Asia“ award by Global Finance for 14 consecutive years from 2009 to 2022.

DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting social enterprises: businesses with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping communities with future-ready skills and building food resilience.

With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com