In line with its focus on responsible banking, DBS Bank India, a leading financial services group in Asia, has announced the launch of its Green Deposit Programme for corporate clients providing a simple way for companies to support environmentally-friendly projects or avenues.
DBS Bank is one of the few banks globally to integrate Sustainable Development Goals by offering lending & trade credit solutions to sustainable and environmentally-friendly green sectors and now offering a Green Deposit product. Under the Bank’s sustainability programme, Green Deposits will fund green industries and initiatives such as; green building sustainable water initiatives that include wastewater management, renewable energy and clean transportation.
Different to a regular Fixed Deposit
The Green Deposits proposition combines all the benefits of a regular fixed deposit with a commitment from DBS to support green and sustainable loans disbursed by the bank. Green Deposits serve as an ideal opportunity for corporates looking to include sustainability agenda into their treasury activities or those having limited options for investing in environmentally-beneficial projects.
Commenting on the initiative, Divyesh Dalal, Managing Director and Head – Global Transaction Services, DBS Bank India, said, “Through sustainable financing, banks play an important role in accelerating the transition to an ESG friendly future. DBS is bolstering support for customers to adopt sustainable business practices, enabling them to contribute towards Sustainable Development Goals. Our Green Deposits programme aims to finance green industries and initiatives for renewable energy, managing wastewater and clean transport.”
Threefold Benefit of the Deposits
- Demonstrate customer’s commitment towards environmental sustainability;
- Customers can invest surplus cash in deposits supporting sustainable projects with positive environmental impact;
- Customers can receive stable returns on investment without compromising the security of the deposit placement.
A pioneer in understanding international green finance benchmarks, DBS Bank has established its capacity and expertise in providing Green Loans. In 2020, DBS had partnered with CapitaLand Group to place its first green deposit for one of their group entities. The total net worth of outstanding green loans disbursed by DBS Bank in India is worth INR 1,546 Crores.
To drive further progress in Asia’s sustainable financing landscape, DBS advocates scaling up transition finance and supporting clients in adopting incremental and instrumental solutions – all of which are necessary to broaden and deepen the market. To scale up India’s cotton industry, the Bank partnered with fashion retailer Inditex, one of the world’s largest retailers, to arrange financing for the Farmer Producer Organisations (FPOs) to procure organic cotton from the farmers in a timely fashion.
The World Economic Forum reported that an estimated $2.5 billion in additional annual investment is necessary to fully achieve the United Nations’ Sustainable Development Goals in developing countries.
India is increasingly working towards achieving an inclusive, sustainable economy. India’s performance on the NITI Aayog SDG India Index has improved from an overall score of 60 in 2019-20 to 66 in 2020-21.
Read More: Initiatives towards Sustainable Energy and Resources sector
