Oversea-Chinese Banking Corporation (OCBC) O39 has launched a new net-zero-aligned loan for corporates. The new financing solution, named the OCBC 1.5°C loan, provides incentives for corporates to set and work towards clear carbon emissions reduction targets aligned with internationally recognised, science-based net-zero decarbonisation pathways for their sectors.
The loan, which is said to be the first in Singapore, means corporates will get a reduced interest rate on their loans when their targets are met or exceeded.
The reference pathways, which are developed by autonomous global organisations, are geared towards achieving a net zero level of greenhouse gas emissions by 2050 to limit global warming to 1.5°C above pre-industrial levels.
“For the world to successfully transition to net-zero, businesses need to set ambitious, rigorous targets and follow through with strong initiatives to reduce emissions and measure progress. This mammoth task can only be achieved with the collaboration of all stakeholders,” says Mike Ng, head of sustainability office, global wholesale banking, OCBC Bank.
“Our new financing solution aligned to a 1.5°C pathway is a concrete step to partner with our customers on their net-zero journey together. The only path to delivering our Net-Zero Banking Alliance (NZBA) commitments is through our customers reaching net-zero, and we will do our utmost to support them through this journey,” he adds.
OCBC joined the NZBA in October 2022.
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As at 10.01am, shares in OCBC are trading 6 cents lower or 0.49% down at $12.20.
