DBS BANK
“ conventional and non-conventional financing ”, Terence explains .
He says : “ In earlier stage financing , we ’ ve brought to bear partners in measurement , assessment and consultancy . We brought digital platforms to the table .”
At the same time , scaling trade platforms is enabling more measurement and traceability of sustainability outcomes .
Terence says : “ There would be no financing if we can ’ t measure the outcomes , measure the gains , and these are the key drivers to make sustainable financing available in Asia-Pacific .”
Focusing on large Western & Asian corporates / anchor companies Large anchor companies are a central part of DBS Bank ’ s efforts to drive sustainability .
These are companies of significant size and have deep supply chains with many suppliers of varying sizes , the majority of which are located in Asia . They have considerable influence on the suppliers .
Terence says : “ DBS is playing a significant role in bringing our large corporate companies together with many of their suppliers in the region .”
For Asian suppliers , the challenges with decarbonisation often revolve around cost competitiveness and maintaining margins when investing in cleaner technologies . While these challenges affect both large corporations and SMEs , the impact is more keenly felt by SMEs , as they often lack the access to capital and technical resources to decarbonise .
The approach is to bring together regional partners to :
• Assess transition financing needs like identifying required equipment and financing tools
• Facilitate collaboration between stakeholders and establish measurable KPIs and outcomes .
• Leverage digital platforms to ensure traceability and scalability .
The bank ’ s considerable experience with midcap and SME clients across its markets has bred expertise in supplier engagement at scale and through its financing capacity and deep knowledge and relationships across the APAC region plays a key role in the success of the large corporates that they bank .
Terence says : “ That is done by working alongside a large anchor client and its procurement teams as part of an overall supply engagement strategy to be able to deploy the right tools , measurements and consultancy .”
A phased approach to decarbonisation : From assessment to action Getting businesses identified , assessed and enrolled in the programmes overseen by DBS is a three-step process , Shilpa explains .
“ From the very beginning , we put our clients at the centre of our solutions . We access their sectoral maturity and transition pathway at Phase 1 . fintechmagazine . com 65