Measuring Impact
Understanding and managing impacts
from our business.
Measuring Impact
We are committed to create value for the long term by managing our business in a balanced and responsible manner to address the needs of all stakeholders.
To do so, we want to understand the impacts we make. As a bank, we are cognisant that most of our impact stems from our lending decisions. Finding the right balance between development vis-à-vis environmental and social impacts is an important dimension in our approach. It is, therefore, integral that we have an objective form of measurement that enables us to make better informed decisions.
Pilot Impact Measurement Project
We have taken the first steps towards developing an impact measurement framework by conducting pilot studies on two sectors with Impact Institute.
The studies highlight levers such as implementing restrictions, policies, or enabling new technologies and the impact of employing these measures. We intend to progressively start tracking these measures as an indication of the impact we create from our lending. These insights will then be used to engage with our clients.
Automotive
Financing companies transitioning from production of combustion engine vehicles to electric vehicles
Palm Oil
Financing the production of crude palm oil in Indonesia
For a detailed report on methodology used by Impact Institute, please refer here.
The pilot was also supported by Singapore Management University’s (SMU) Sim Kee Boon Institute for Financial Economics who reviewed the studies conducted and methodology utilised by Impact Institute.
Moving Forward
We intend to expand the study to include more sectors in our portfolio. We hope that our work on the pilot can help contribute to a growing global discussion on how banks can measure and better manage the impacts of their lending portfolios.
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