Our financing helps shape and incentivise sustainable practices of our customers. Our Group Core Credit Risk Policy and Group Responsible Financing Standard incorporate the principles and approach for considering environmental, social and governance (ESG) risks in our lending and capital market activities.
Our Approach to Responsible Financing, including a summary of our Sector Guides, is available here. The document provides a point of reference as it outlines our sustainability commitments and the expectations we have of our customers, forming the basis of our corporate business relationships.
Seven Sector Guides have been developed detailing industry-specific ESG risks, referencing 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.
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.
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.