Sustainability Still Critical Despite Pullbacks by US Banks: DBS

Bank to Continue with Net-Zero Push, Climate Efforts: Sustainability Chief

- Sue-Ann Tan

The tide appears to have shifted against sustainability, with US President Donald Trump pledging to withdraw from the Paris climate agreement and roll back environmental regulations just days into his presidency.

But globally and in Asia, sustainability is gaining momentum, and Singapore's DBS Bank intends to continue addressing climate change as a core pillar of its broader sustainability strategy, its chief sustainability officer Helge Muenkel told The Straits Times on Jan 24.

He said DBS will remain in the Net-Zero Banking Alliance, which is the global banking industry's net-zero target-setting group.

On Jan 8, it was reported that the six biggest banks in the US had quit the alliance as Mr Trump is expected to bring political backlash against climate action. They are JP Morgan, Citigroup, Bank of America, Morgan Stanley, Wells Fargo and Goldman Sachs.

But Mr Muenkel said the alliance serves as a valuable platform for collective action towards achieving net-zero emissions, particularly in an Asian context.

"As a leading bank in the region, we believe that enabling a just transition across Asia that balances environmental and socio-economic considerations is critical," he said.

"Against this backdrop, fostering strong ecosystems and collaboration are essential to address the complexities of climate change."

In an earlier interview with ST, Mr Muenkel said sustainability is the third "big mega wave" in the global economy, alongside the economic rise of Asia and rapid digitalisation.