DBS: As of the end of last year, provided sustainable financing of 102 billion yuan | Lianhe Zaobao

As of the end of last year, DBS Bank's sustainable financing amount reached 102 billion yuan, with a year-on-year net growth of 14% after deducting repayments, and facilitated the issuance of a total of 41 billion yuan in sustainable development bonds. In its "2025 Sustainable Development Report" released on Monday (March 8), DBS disclosed that it also strengthened support for the decarbonization of small and medium-sized enterprises (SMEs) last year, providing over 500 million yuan in loans in Singapore, Hong Kong, and India, and developed a decarbonization guide for the manufacturing industry to assist enterprises in addressing working capital and decarbonization needs. Helge Muenkel, DBS Bank's Director of Sustainable Development, pointed out that SMEs often lack the resources to initiate the decarbonization process, but the entry standards for multinational company suppliers are very strict. These guidelines focus on practical guidance to help SMEs "stay in the global supply chain." However, among the total sustainable financing amount of 102 billion yuan, the proportion of transition finance in the overall financing amount is still less than 1%, with transaction volumes only in single digits. Muenkel explained that on one hand, this is due to the market's ongoing refinement of the transition finance framework standards, and some financing during the business transformation process has not been labeled as transition finance. On the other hand, when some enterprises' capital expenditures for transformation are relatively small, they typically do not go through the complete labeling, alignment standards, and disclosure processes for transition financing, but rather handle it as general corporate financing or project financing. He also noted that as the market's standards and guidelines for transition financing frameworks gradually become clearer, discussions among clients regarding related financing projects are increasing, and he believes that the number and scale of related transactions are expected to gradually increase in the future. Further Reading Local listed companies disclose more climate content, 28% disclose all recommended content In terms of industry assessment, DBS set decarbonization targets for seven key industries in 2022. The latest report shows that five of these industries are on track, including electricity, oil and gas, automotive, aviation, and real estate, while the steel and shipping industries have yet to meet the standards. The report pointed out that the low-carbon technologies and solutions for these two industries are still not fully mature, with high costs and limited commercialization, resulting in relatively slow transformation progress. Integrating Natural Factors into Risk Management DBS also revealed that the banking industry has primarily focused on climate change and decarbonization in recent years, but solely relying on emissions reduction is insufficient for a comprehensive assessment of environmental risks. Banks are gradually incorporating natural and biodiversity factors into their risk management frameworks, including broader natural capital such as water resources, soil health, and ecosystem services. As a result, banks have conducted more in-depth pilot studies on the electricity and mining industries and developed specialized guidelines to help clients identify nature-related risks and translate them into financial risk indicators for credit assessment and client communication. Meng Hao pointed out that these analyses help banks understand the extent to which enterprises rely on water resources, land, and ecosystem services, and also incorporate indirect risks into financing decisions to enhance the long-term resilience of loan portfolios