DBS unveils targets for decarbonisation, data coverage under net zero goal

It plans to reduce emissions from O&G sector by 28% in 2030.

DBS has announced clear sectoral targets as part of its goal to achieve net zero in its financed emissions by 2050.

Decarbonisation has been set in seven sectors: power, oil & gas, automotive, aviation, shipping, steel, and real estate. 

Notably, the bank targets to reduce the absolute emissions in the O&G sector attributable to DBS by 28% in 2030. This target covers Scope 1 (direct emissions), 2 (energy use) and 3 emissions (indirect emissions).

Data coverage targets have also been set for two sectors: food & agribusiness, and chemicals. The data coverage targets should, in turn, pave the way for future sectoral decarbonisation targets, DBS said.

ALSO READ: DBS opens net zero building DBS Newton Green

The nine sectors represent the most carbon-intensive institutional banking  segments financed by DBS. Together, they represent 31% of DBS’ outstanding loans but constitute the vast majority of the Institutional Banking Group’s financed emissions, the bank shared.

Amongst the seven decarbonisation targets set, six of them have been set as intensity metrics, with the objective to achieve lower emissions per unit of output or activity.

The publication of the clear plan to net zero is in line with DBS joining the Net-Zero Banking Alliance last October 2021. As a signatory, DBS is required to align its lending and investment portfolios with net zero emissions by 2050, the bank said.