As part of its efforts to support the transition to a low-carbon future, the bank has set a target of 2039 to cut its thermal coal exposure to zero.
DBS, Southeast Asia’s largest bank, has announced plans to reach its goal of zero thermal coal exposure by 2039, and will focus instead on the development of renewables, according to a statement on Friday.
The bank will stop onboarding new customers that derive more than 25 percent of their revenue from thermal coal with immediate effect, and stop financing customers that derive more than half their revenue from thermal coal from January 2026. These thresholds will also be lowered over time, DBS said.
DBS will use its sustainable and transition finance framework to help sectors reliant on thermal coal to transition.
Every year counts in the journey towards a low-carbon future and we recognize the increasing need for transition financing to help industries gradually navigate away from brown to green, Tan Su Shan, DBS group head of institutional banking, said.
Tan said the bank hopes to help energy players in the region scale the reach and supply of renewable energy in the near future.
In 2020, DBS grew its exposure to renewable energy projects to S$4.2 billion ($3.15 billion), up from S$2.85 billion the year before.