OCBC Stays the Course on Climate Commitment

OCBC's commitment to sustainability is not an 'academic exercise' but a long-term business strategy, says its group chief sustainability officer Mike Ng

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The global effort to combat climate change has faced significant headwinds in recent years. Under the Trump administration, the US withdrew from the Paris Agreement, a landmark international treaty to tackle climate change. More recently, several major financial institutions, including American and Japanese banks, exited the Net-Zero Banking Alliance, a coalition committed to aligning banking practices with net-zero greenhouse gas emissions by 2050.

Despite this shifting landscape, OCBC remains committed to its decarbonisation agenda. "For OCBC, our position remains the same because climate change is still a real issue based on science, and it is our responsibility to be part of the solution as a connector of capital," says OCBC's group chief sustainability officer Mike Ng.

The bank offers strategic advisory, innovative financial solutions and ecosystem partnerships to help large corporations, small and medium enterprises (SMEs), and retail investors achieve their sustainability goals.

Ng acknowledges that the journey to net zero is fraught with challenges and "will never be linear". Nevertheless, he stresses that OCBC's commitment to sustainability is not an "academic exercise" but a long-term business strategy for the bank that shapes its portfolio and guides how it supports industries and clients in their green transition.

While climate efforts globally may appear to be losing momentum, Ng believes that significant opportunities remain in the transition to net zero, particularly in Asia.

A World Economic Forum white paper from 2023 estimated that climate adaptation and mitigation initiatives in Asia could unlock an additional US$4.3 trillion in revenue and create 232 million new jobs in the region by 2030.