Climate Change: global emissions reporting framework a game changer for decarbonisation, says DBS sustainability head
- Adoption of the impending ISSB framework will be a ‘game-changer’ that accelerates climate-mitigation efforts, says Helge Muenkel
- DBS has decarbonisation targets for its exposure to seven sectors, and is training staff to help clients make plans in line with the bank’s goals
Adopting a set of globally agreed-upon baseline standards for climate risks and opportunities will help corporate decarbonisation efforts to hurdle a major stumbling block in the next few years, according to the sustainability head of DBS Bank.
Combined with greater integration of environmental and other sustainability data into financial institutions’ data systems, the publication and adoption of the International Sustainability Standards Board (ISSB) disclosure framework will accelerate global climate-mitigation efforts, Helge Muenkel said in a briefing on Monday.
“The ISSB [requirements] will be quite a game changer,” said Muenkel, the group chief sustainability officer of Southeast Asia’s largest bank by assets. “In five years time, we will not talk about this problem any more because we will probably have mandatory global baseline reporting [requirements] … But we are not there yet.”
Last September, DBS unveiled decarbonisation targets for its exposure to seven sectors, which Muenkel said are “among the most comprehensive and ambitious” in the banking industry globally.
Reaching the targets is essential for protecting the bank’s business, its shareholders and the communities where it operates, because the increasing frequency of extreme climate events is creating more risk of losses from business disruption and asset impairment, he said.