OCBC, Southeast Asia’s second-largest financial services group by assets, has embedded climate action, responsible financing and sustainable financial solutions as core pillars of its net-zero transition strategy.
With the objective of offering targeted solutions to partner clients on their transition journey, OCBC launched Singapore’s first 1.5°C loan in 2023, recognising companies that set credible emissions-reduction targets aligned with science-based 1.5°C pathways (e.g., SBTi, IEA NZE). Clients receive interest rate reductions when they meet or exceed agreed targets. Adoption has grown across markets, improving the bank’s ability to obtain accurate emissions data, deepen conversations and embed sustainability into financing structures.
The loan complements OCBC’s broader suite of sustainable finance solutions—including green, social and transition loans/bonds, carbon-credit-linked financing and SME solutions. Examples of transactions with real estate and agriculture clients are detailed.
Targeted net-zero products and solutions: The 1.5°C Loan seeks to recognize and incentivise clients’ progress and leadership, through offering a reduced interest rate when targets are met or exceeded
Assessing clients transitions and engaging: OCBC actively engages clients, especially those identified as “High Priority” in its Transition Engagement Strategy, to evaluate portfolio-related climate and transition risks and opportunities, while finding collaborative solutions
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