DBS Group Holdings Ltd., Southeast Asia’s largest lender, warned emissions tied to its customers could rise in the short-term as the bank attempts to support heavy polluting industries to decarbonize.
DBS Group Holdings warns that efforts to reduce emissions in Asia could become more challenging, with emissions tied to its customers potentially rising temporarily as it supports decarbonization in heavy-polluting industries. While progress is being made in some sectors, shipping and steel remain off track. Financing the early retirement of coal plants and supporting high-emitting activities could increase short-term emissions. DBS reiterated its plan to halt financing to clients heavily reliant on thermal coal but will continue to fund non-thermal coal and renewable energy projects. Sustainable financing commitments have increased, while exposure to thermal coal has decreased, though this may be impacted by efforts to accelerate Asia's shift to cleaner energy.
