DBS to adopt risk-management framework Equator Principles

DBS BankDBS is adopting the Equator Principles, a globally recognised risk-management framework, as part of its ongoing efforts in promoting responsible financing, the bank said in a statement on Monday.

The Equator Principles (EPs) is adopted by financial institutions for determining, assessing and managing the environment and social risk in development projects. The EPs also outline environmental and social standards for large scale developments and is based on the International Finance Corporation (IFC) Performance Standards published by the World Bank Group.

DBS’ adoption of the Equator Principles would mean that the bank will take the extra step in disclosing information related to large-scale developments that the bank is involved in. Currently, the bank already adheres to due diligence processes in accordance with IFC’s Performance Standards when assessing large project financing deals, DBS said.

“We are proud to be the first bank in Singapore and Southeast Asia to be a signatory of the Equator Principles. We believe that the region will see significant infrastructure development over the next few years and financing will play a central role. As that happens, we acknowledge the importance of incorporating environmental and societal considerations into our lending decisions, and to managing our business in a balanced and responsible way, contributing to a more sustainable future,” said Tan Su Shan, Group Head of Institutional Banking Group, DBS.

The bank said that it has been focused on advancing the sustainability agenda with an approach based on three pillars – responsible banking, responsible business practices and creating social impact. In the area of responsible financing, this year, the bank is expected to close more than S$4 billion of sustainable finance transactions comprising green loans, sustainability performance-linked loans and renewable energy financing.

Additionally, the bank is also working with the Monetary Authority of Singapore as an industry partner, to create a framework for financial institutions to promote the responsible adoption of Artificial Intelligence and Data Analytics.

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