Our financing can help shape and incentivise sustainable practices of our customers. Our Group Core Credit Risk Policy incorporates the principles and approach for considering environmental, social and governance (ESG) issues in our lending practices and capital market activities. Supplementing the policy is the Group Responsible Financing Standard, which provides structured guidance to assess ESG risks.
The ESG risk assessment process detailed below, with established roles and responsibilities, enables us to develop an overall understanding of the customer’s approach to managing ESG issues including commitment, capacity and track record.
In addition, we have also developed seven sector guides detailing industry-specific ESG risks, based on industry best practices such as the International Finance Corporation Performance Standards and World Bank Environmental, Health and Safety Guidelines. These guides cover the agricultural commodities, palm oil, chemicals, oil and gas, mining and metals, power generation and infrastructure sectors.
As part of the industry’s push towards sustainable development, the Association of Banks in Singapore (ABS) released a set of industry guidelines to enhance the implementation of responsible financing in October 2015.
Developed in consultation with banks, including DBS, the guidelines underscore the sector’s commitment to advancing responsible financing in a more structured and transparent manner. The guidelines will help achieve systematic environmental and social criteria integration into banks’ lending decision-making as well as provide higher levels of transparency and accountability.
We have fully implemented the ABS guidelines in 2017.