DBS is urging oil and gas companies to focus on sustainable fuels particularly sustainable aviation fuels (SAF), low-emission biofuels, hydrogen and ammonia.
But in its new net zero blueprint, covering nine key industrial sectors, DBS acknowledges it is ’neither realistic nor desirable’ to abruptly cut off fossil fuel supply without offering commercially-viable alternatives, while demand remains high.
The banking corporation – which itself is committed to achieving net zero operational carbon emissions by the end of 2022 – is targeting 38.6 MtCO2e in 2020, 27.7 MtCO2e in 2030 and a significant cut to 3 MtCO2e by 2050 in the oil and gas (O&G) sector.
To achieve its targets, DBS – which became a signatory of the Net-Zero Banking Alliance last October – will support clients to meet their transition targets by financing their decarbonisation efforts; reduce exposure, especially to high-emitting parts of the O&G value chain; and direct financing to companies that are diversifying away from pure O&G production.
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