DBS takes first steps towards measuring their impact
“To this end, I am pleased that in 2019, we took the first steps towards developing an impact measurement framework. (…) We plan to extend this study to our wider lending portfolio, to better inform our effort in steering it towards being more sustainable.”
DBS is the first bank in South-East Asia to conduct an integrated impact measurement study based on Impact Institute’s Integrated Profit & Loss Assessment Methodology. These methodology and framework set the foundation for DBS to report on the societal impact of their lending across automotive and palm oil sectors.
Using Impact Institute’s expertise, DBS can draw on these results to consider expanding the study to its wider lending portfolio and steer towards more sustainable lending opportunities.
Singapore Management University’s (SMU) Sim Kee Boon Institute for Financial Economics reviewed these and published an evaluation report which can be found here.
Impact Institute sees that with its impact measurement approach, DBS is on the path towards being a purpose-driven bank and reaching their sustainability goals for responsible banking, responsible business practices and creating social impact. This drive by DBS comes at crucial moment for companies worldwide, as many are joining the movement towards impact valuation.
Key findings of the pilot studies are (i) shifting to electric vehicles improves the impact of the automotive sector. While environmental costs for producing electric vehicles are slightly higher, the benefits of substantially lower costs of driving compared to combustion engine vehicles clearly outweighs it. (ii) The negative environmental and social impacts of palm oil production have both substantial socio-economic benefits, but also environmental and social costs. Strengthening and expanding No deforestation, peat, exploitation (NDPE) policies in the sector can drive reducing these costs.
By Impact Institute|2020-06-18T17:00:52+02:00April 9th, 2020|News|Comments Off on DBS takes first steps towards measuring their impact