- Post-updates to our ESG scoresheet for banks under our coverage (refer to our thematic note, Banks: In Pursuit Of Net Zero), we maintain OCBC’s ESG score at 3.1. Hence, there is no change to the 0% ESG premium/discount that we attach to OCBC Bank’s intrinsic value to derive OCBC's target price.
- - Read this at SGinvestors.io -
OCBC's ESG – The positives.
- - Read this at SGinvestors.io -
- As a signatory to the Net-Zero Banking Alliance (NZBA), OCBC is committed to an orderly transition towards a net-zero economy for itself and customers. As such, OCBC has embarked on its journey towards achieving net zero by 2050, with an interim target of 2030 or sooner.
- OCBC has committed to invest more than S$25m to increase the use of renewable energy in its energy mix for operations over four years to reduce its carbon footprint in Singapore, Malaysia and Greater China.
- OCBC has also set a target of S$50bn by 2025 for its sustainable financing portfolio – this was surpassed in end-2023, when its sustainable financing commitment reached S$56bn.
Areas for improvement?
- Read more at SGinvestors.io.
