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As the global banking and investment industry continues to place greater importance and focus on sustainability issues, some financial institutions are making clearer progress than others in implementing this strategic shift. .
Bank of Singapore is one such financial institution, benefiting from a focus on strengthening environmental, social and governance (ESG) investing and integrating sustainability into its operations. I am receiving
In a video interview, Mr Mike Ng, OCBC’s Group Chief Sustainability Officer, and Mr Zubin Dubb, Head of Markets and Chair of the Singapore Bank Sustainability Forum, discuss Singapore Bank’s approach to sustainability and the sustainability of its customers. Learn how we support your investments.
Mr. Dove goes deeper and shares further insights into the bank’s strategy, recent initiatives and developments, how the financial institution ecosystem is working and what is being achieved.
Q: How would you describe the banks’ strategies regarding sustainability and sustainable investing? All banks say their approach is different from other banks. So, what are the characteristics of Singapore Bank’s strategy?
Dub: Our key differentiation is that we are part of OCBC, the second largest financial services group in Southeast Asia by assets. Because we are united as ‘one group’ across the OCBC Group, we are well placed to collaborate with external stakeholders, including clients and various industry players. We want to make an impact, expand our capabilities to a broader audience, and work together to make a bigger impact.
As the private banking division of OCBC, we are well-positioned to educate and help high-net-worth clients direct the flow of capital towards sustainable investments and meaningful projects that benefit the environment and society.
We also have ESG factors in our DNA, not just from a sustainable investing perspective, but as part of our culture and how we operate. This means we look at sustainability holistically, rather than just focusing on investment products. For example, as a group, starting in 2021, he will invest S$30 million over three years to develop a series of initiatives to help employees deepen their understanding of sustainability and how it applies to their roles. has launched a sustainability module.
Q: How does Bank of Singapore promote sustainability initiatives among its customers and encourage them to make sustainable investments? What else does the bank have planned?
Dub: In 2021, we became the first private bank in Asia to add ESG factors to the evaluation of investment loan amounts for our customers. What this means is that if the loan is backed by a top-tier mutual fund, the loan amount will be increased. -Class MSCI ESG fund rating AAA or AA. Currently, approximately 20% of the mutual funds offered by Bank of Singapore are MSCI rated AA or above, investing in companies that are leading the way in addressing ESG issues and have made sustainability a core part of their business strategy.
In 2022, we co-chaired a task force under the Singapore Bankers Association that led to the release of the region’s first sustainable investment guidelines for private banks and wealth managers. We were also deeply engaged with the Private Banking Industry Group, which led to the publication of recommendations on incorporating sustainability and sustainable investment competencies into private bank front office learning curricula.
As the private banking division of OCBC, we are well-positioned to educate and help high-net-worth clients direct the flow of capital towards sustainable investments and meaningful projects that benefit the environment and society.
Zubin Dub, Bank of Singapore
Last year, Bank of Singapore became the first private bank to sign up to the Singapore Stewardship Principles for Responsible Investors, underscoring its commitment to sustainable investing. We believe that responsible investment practices can make a significant contribution to developing a more sustainable financial system that benefits the wider community.
We are currently in the process of introducing new ESG assessment tools, including portfolio ESG ratings and scores, and an ESG dashboard that adds an ESG dimension to our clients’ investment portfolios through client ESG profiling surveys. The purpose of these new tools is to give our front office staff access to ESG performance data for client portfolios (based on MSCI ESG ratings) and client ESG preferences, allowing them to better recommend to clients about sustainable investment opportunities. It’s about being able to do it. This also helps him develop new ESG products customized to the specific needs of his clients.
As the ESG landscape rapidly evolves, we also continue to invest in upskilling and reskilling our employees. This is an opportunity for our employees to engage in sustainability-related initiatives to help guide our clients in the right direction to more effectively navigate the ongoing climate transition and achieve better long-term outcomes. This is to ensure that they are properly equipped with the right knowledge and skills.
Q: A key pillar of the bank’s approach is the ecosystem of institutions it has cultivated to help achieve specific sustainability goals and drive greater impact than any single institution can. Across his three areas of ESG, the Bank has developed a partnership within this ecosystem with WWF on the environment. In Singapore Community Foundation and Social. And we worked with EY on governance. What do these three collaborations actually look like? How do they work and what are they achieving?
Dub: Private banks play a critical role in connecting private capital with innovative ideas that not only deliver significant benefits to their customers, but also promote environmental and social progress. We recognize that collaboration with other like-minded partners is the key to achieving greater impact.
In 2021, Bank of Singapore became the first private sector bank to forge a strategic partnership with the Community Foundation of Singapore (CFS), providing our clients with a comprehensive, impact-focused platform that leverages deep pockets to achieve their giving goals. Be able to co-develop philanthropic strategies with CFS. Insights from CFS’s dedicated philanthropy and grants team and philanthropy advisors.
This expertise and insight into Singapore’s philanthropy landscape helps clients plan their philanthropic goals in line with their values and ambitions, and with the same careful consideration as any investment.
In the same year, Bank of Singapore became the first bank in Asia to partner with WWF (Asia Sustainable Finance Initiative Academy) to provide sustainable financial education to its global workforce of over 2,200 employees. Since then, we have undertaken multiple initiatives with WWF, the most recent being our sponsorship of the WWF Thirty Hills Initiative, a conservation project supporting the restoration of Indonesia’s rainforests.
Additionally, the Bank has collaborated with EY on a series of reports outlining key ESG frameworks and principles to demystify sustainability and make it more accessible to business owners, investors and philanthropists. Continuing. Last year, we released our third edition, which was themed around carbon credits.
We are also focused on growing ESG ecosystem partnerships across nonprofits, consultancies, the public sector, and academia. Bringing different groups together provides different perspectives and broader insights, allowing us to identify approaches that work for everyone. There are limits to what we can accomplish alone. When you collaborate with others, you can achieve more impactful results.
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