DBS has announced its commitment to grow its suite of sustainable investments to more than half of its assets under management (AuM) by 2023.

In addition, it aims to encourage clients in the region to adopt environmental, social, and governance (ESG) standards in their investments.

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Furthermore, the bank will widen and deepen client access to social enterprises in the region, which includes next-gen tech leaders involved in positively impacting communities.

This is part of DBS and its three-pronged sustainable investing approach. The three prongs are:

  • Drive ESG investing;
  • Advocate responsible business practices, and
  • Create social impact.

Sustainable investing targets for DBS

DBS targeting more than half of its AuM in sustainable investments is a 41% increase.

This year alone, the bank has onboarding more than 10 products that are considered sustainable investment solutions. It also will begin reviewing clients’ portfolios to improve ESG ratings through targeted advisory and recommendations.

Q2 2021 will see the launch of a portfolio-weighted ESG rating methodology. This should allow relationship managers and clients to manage portfolios more dynamically.

DBS also aims to educate its clients more on sustainable investments and it recently launched an ESG-focused webinar series. it gathered investment experts, social entrepreneurs and clients.

Joseph Poon, group head of DBS Private Bank said: “Sustainable investments have become increasingly important in value-adding investment portfolios in the long run. However, their pace of growth is being compromised as there is still no clear definition for sustainable investments today. There is also no single established industry benchmark to rate ESG.

“We decided to take the lead in challenging this status quo, and were among the first in Asia to integrate MSCI ESG ratings into our product suite. By taking this step, we are not only availing greater transparency of our offerings, but are also holding ourselves accountable to our pledge to boost our share of sustainable investments.”