DBS rolls out sustainable transition finance framework and taxonomy

The taxonomy will outline the banks’ “green” and “transition” transactions.

DBS has launched its sustainable and transition finance framework and taxonomy which will help the bank engage with clients who are furthering their sustainability agenda, according to a news release.

The taxonomy will serve as a reference for clients to adapt and build resilience amidst climate change, resource scarcity and address critical global issues such as social inequality. To encourage greater transparency in sustainable and transition economic activities, it will outline the way DBS manages transactions that are classified as “green”, “transition”, or contributing to the United Nations Sustainable Development Goals.

It also summarises a broad list of eligible economic activities like using recycled plastics for apparel making or an electricity grid upgrade to enable integration of intermittent renewable energy.

In addition, DBS will offer transition financing, which will take a scientific approach to evaluate the transitional qualities of economic activities and whether clients have a strategy to adapt their businesses in line with the Paris Agreement.

The implementation of the framework will involve robust governance and reporting processes that enable transparency. It has also received a second-party opinion from Norwegian green ratings provider CICERO Green.