DBS – Impact assessment of lending to the automotive industry
Client
DBS is a leading financial services group in Asia with a presence in 18 markets. Headquartered and listed in Singapore, DBS has a growing presence in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia.
The bank’s “AA-” and “Aa1” credit ratings are among the highest in the world.
Project description
Impact Institute supported DBS to deepen its understanding of its impacts, specifically of its lending activities.
DBS started measuring economic, social, and environmental impacts through two pilot studies, which are financing companies transitioning from production of combustion engine vehicles to electric vehicles and financing the production of crude palm oil in Indonesia. These impacts are estimated by using industry average data.
These two pilots were also reviewed by Singapore Management University’s (SMU) Sim Kee Boon Institute for Financial Economics.
Benefits to the client
The pilot provides insights into the impacts of a bank’s lending activities in the sector of electric vehicles. They highlight levers for improvement and impacts of enabling new technologies or policies of lending to the sector. These insights can also be used to engage clients and strengthen its lending policies.
