WWF-Singapore

Climate Impact & Sustainability Data (2022)

Increased number of Asian banks committing to net-zero financed emissions by 2050 (from 15% in 2021 to 39% in 2022)
Leading banks publishing science-based targets by sector with interim 2030 targets
Improved disclosures on financed emissions and impacts of climate-related initiatives in TCFD reports
Increased number of banks developing and disclosing specific energy sector policies (49% in 2022 vs 29% in 2021)
Increased number of banks offering financial products and services to support sustainability improvements in the energy sector (70% in 2022 vs 54% in 2021)

Increased engagement with clients to improve their E&S impact
Improved policies requiring clients to commit to “no deforestation” and comply with international standards on human rights
Improved client outreach activities to help clients implement sustainable practices

Increased incorporation of E&S criteria in the appraisal process of senior managers
Expansion of the role of internal audit to include E&S procedures

Long-term Goals:

Banks need to expand their capacity to manage nature-related risks; recognition of risk is not reflected in client expectations and policies.
Laggard banks are losing momentum, widening the gap between leaders and laggards.
Wide variation in banks’ E&S integration performance across the region and within countries.
Banks need to improve supply chain traceability for palm oil and other soft commodities; policies typically don't cover the entire value chain or clients' supply chains.
More banks need to implement policies and set science-based targets to transition their energy portfolios; main gap is setting science-based targets.
Many banks are aware of seafood sector E&S risks, but current policies are insufficient; expectations for aquaculture and downstream clients lack detail.

Regulators need to provide support for banks to implement E&S requirements by aligning and enhancing ESG risk management requirements and supporting capacity building.
Banks should commit to net-zero, develop science-based targets, and detailed transition plans.
Banks should identify, understand, and recognize material nature-related risks, develop effective policies to manage them, and set up processes to monitor progress.
Banks should require palm oil clients to commit to NDPE and develop plans for RSPO certification, help clients build supply chain traceability, and improve disclosures.
Banks should develop exclusion policies for coal, prohibit financing for oil and gas exploration, set science-based targets for energy portfolios, and consider social impacts in transition plans.
Banks should develop seafood sector policies aligned with best-practice guidance, address seafood-related risks within broader policies, regularly assess portfolios, extend financial crime policies to include IUU fishing, and develop “blue” financial products.

Frameworks Used: GRI, UNEP-FI Principles for Responsible Banking (PRB), TCFD, SASB, TNFD