DBS Group Holdings Ltd Sustainability Report 2019

DBS Group Holdings Ltd Sustainability Report 2019

Purpose-driven Bank

Introduction 2Key highlights 3CEO message 4Sustainability overview 5Governance 9Material ESG matters 10Stakeholder engagement 11Our key markets 13

Pillar 1: Responsible bankingA. Responsiblefinancing 15 B. Climatechange 18 C. Financialinclusion 21 D. Fairdealing 23 E. Cybersecurity 23 F. Datagovernance 25 G. Preventingfinancialcrime 26

Pillar 2: Responsible business practices H. Talentmanagementandretention 28 I. Diversityandequalopportunity 30 J. Workplacewell-being 31 K. Sustainableprocurement 32 L. Managingourenvironmentalfootprint 33 M. Responsibletaxmanagement 34

Pillar 3: Creating social impact N. Socialentrepreneurship 36 O. Employeevolunteerism 38

Geographic profit segmentation 41Information on employees 42 Information on environmental footprint 45 10 Principles of UN Global Compact 46Mapping to GRI Standards 47GRI Content Index 48Mapping to Sustainability Accounting Standards Board standards 54Methodology on Task Force on Climate-related Financial Disclosures 55Selected ESG-related awards, indices and ratings 57Commitments and memberships 58Abbreviations 59Independent limited assurance report on sustainability information 61

Our approach and strategy

Articulation of sustainability matters

Appendix

Introduction

OverviewWe have been named the inaugural winner of the “Social Enterprise Champion of the Year (Corporation)” award at the President’s Challenge Social Enterprise Awards 2019 in Singapore. For the third consecutive year, we have been included in both the Bloomberg Gender-Equality Index and FTSE4Good Global Index. All of which are testament to our commitment to delivering a purpose beyond banking and working towards a more sustainable future.

As part of our ongoing efforts to promote responsible financing, we have adopted the Equator Principles and will continue to adhere to due diligence processes in accordance to International Finance Corporation Performance Standards. On raising public awareness on sustainability issues, we debuted the second season of Sparks, a mini-series inspired by true stories of social enterprises with DBS Foundation, and partnered with Singapore’s English flagship daily, The Straits Times, to publish sustainability-related articles in a 28-part series collaboration.

This year, we issue our second standalone Sustainability Report and it follows the same structure of the previous year. Additional disclosure and commentary are provided in several areas, including responsible financing, climate change and social entrepreneurship.

Reporting principlesThecontentofthisreportfollowstheGRIStandards Reportingprinciples.

• Principle 1 - Stakeholder Inclusiveness Weidentifykeystakeholders,engagethemandrespondtothekey topicsandfeedbackreceived.

• Principle 2 - Sustainability Context Wepresentperformanceinthewidercontextofsustainability.

• Principle 3 - Materiality Wefocusonmattersthatimpactbusinessgrowthandareofimportancetoourstakeholders.

• Principle 4 - Completeness Weincludecoverageofmaterialtopicsandtheirboundariesto reflectsignificantESGimpact,andtoenablestakeholdersto assessourperformanceinthereporting period.

FeedbackWewelcomefeedbackonthisreportandanyaspectofoursustainabilityperformance.Pleaseaddressallfeedbackto [email protected].

About this reportThisSustainabilityReportisapprovedbytheBoardandispreparedinaccordancewiththefollowingregulations,standardsandguidelines:

• SingaporeExchangeSecuritiesTradingLimitedListingRules711Aand711BonSustainabilityReport,andPracticeNote7.6SustainabilityReportingGuideissuedinJuly2016

• TheGlobalReportingInitiative(GRI)Standards–CoreOption,issuedinOctober2016(withsubsequentrevisions),andtheG4FinancialServicessectordisclosuresbytheGRIGlobalSustainabilityStandardsBoard

• TheGuidelinesonResponsibleFinancingissuedinOctober2015(revisedJune2018)bytheAssociationofBanksinSingapore

• RecommendationsoftheTaskForceonClimate-relatedFinancialDisclosuresinJune2017

WeareasignatorytotheUnitedNations(UN)GlobalCompactandarecommittedtothe10Principles.ThisreportservesasourCommunicationonProgress.

CoverageThisreportcoverstheenvironmental,socialandgovernance(ESG)principles,initiativesandperformanceofouroperationsinourkeymarkets.Itcontainsinformationforthefinancialyear1Januaryto 31December2019,unlessotherwisestated.ThereportistobereadinconjunctionwiththeAnnualReport2019andothersustainability-relateddisclosuresonourwebsite.

Introduction1 2DBS Sustainability Report 2019


https://www.dbs.com/investor/group-annual-reports.html

https://go.dbs.com/sustainability

Atthedawnofanewdecade,theworldhasseenmuchprogress,particularlyinareassuchasextremepovertyeradication,lifeexpectancyandchildmortalityrates.Inmanyways,theworld,andindeedAsia,isbecomingabetterplacetolive.Yet,significantsocial,developmentalandenvironmentalchallengespersistand,insomecases,arebecomingmorepronounced.Inmyview,therearetwodefiningissuesthatwillincreasinglyoccupytheattentionofbusinesses,politiciansandsociety:climatechangeandgrowingincomeinequality.

Asapurpose-drivenbank,DBShasaroletoplayinaddressingbothissues.Wedothisthroughourthreesustainabilitypillars:responsiblebanking,responsiblebusinesspracticesandcreatingsocialimpact.Inourfirstpillar,wecontinuetohelpourinstitutionalbankingclientsinindustries,suchasagriculture,energy,realestateandautomotive,transitiontoalow-carboneconomy.Wedothisviasustainablefinancialproducts,suchassustainability-linkedloans,whichprovidebusinesseswithincentivestoimprovetheirenvironmentalandsocialfootprint.Similarly,weaimtonudgeourretailbankingclientstopursuemoresustainablelifestylesbyraisingawarenessonenvironmentalandsocialissues.Wearealsoexpandingourdigitalbankingcapabilitieswhichexpandcustomerreachandlowercost-to-serve,thusenhancingfinancialinclusion.Ontheinvestmentfront,weareimprovingaccesstoESG-relatedproducts.Withinoursecondpillar,wearemakingstridesinourbusinessoperationsthroughstrongeremployeeengagementandcollaborativeeffortsinsustainableprocurement.Tacklingtheworld’ssustainabilityissuesremainsacolossalendeavourandpartnershipiskeyinourlastpillar.DBSFoundationwasrecognisedbythePresidentofSingaporeforsupportingsocialenterprisesintacklingsocialissuessince2014.

Throughcontinualcollaborationswithbusinesses,governmentagencies,institutesofhighereducationandnon-governmentalorganisations,wepersevereinhelpingtosolvecomplexsocialissuesinasustainablewayandcontributingtoamoreinclusiveAsia.

Imentionedlastyearthatfindingtherightbalanceisanimportantdimensioninourapproach,anditisnotalwayseasy,giventhesometimes-inherenttensionsinthepursuitofvariousSustainableDevelopmentGoals(SDGs).Forexample,thereareinstanceswheredevelopmentandsocialgoalsareinconflict.Netimpactassessmentisthereforeintegraltodetermineifanindustrycreatesoverallpositiveornegativeimpact,buttoday,therearenoconsistentmeasuresavailable.Ibelieveanobjectiveformofmeasurementisimportanttobetterunderstandtheimpactresultingfromourlending.

Tothisend,Iampleasedthatin2019,wetookthefirststepstowardsdevelopinganimpactmeasurementframework.Thisisauniquechallengebecausetheimpactfromourlendingdependsontheactivitiesofourcustomers,hencetheneedtoobtainawiderangeofdataacrossdifferentsectors.Forastart,weconductedanimpactmeasurementstudyfortheautomotiveandpalmoilsectorsthatwelendto.PreliminaryresultsindicatedthatthetransitiontoelectricvehiclesandtheimpositionofstringentESGrequirementsonourpalmoilcustomerswouldleadtoreducedenvironmentalandsocialexternalities.Weplantoextendthisstudytoourwiderlendingportfolio,tobetterinformoureffortinsteeringittowardsbeingmoresustainable.

Indemonstratingcommitmentandtransparency,wehavebecomethefirstbankheadquarteredinSoutheastAsiatoadopttheEquatorPrinciples.WhilewehavealreadyadheredtoduediligenceprocessesinaccordancetoInternationalFinanceCorporationPerformanceStandards,wewillnowgotheextramileindisclosingmoreinformationrelatedtolarge-scaledevelopments.

ThissecondstandaloneSustainabilityReportsummarisesourcommitmentsandprogresswehavemadeontheSDGsandmaterialsustainabilitymatters.Ihopeyoufindthisreportusefulandseeusbeinghereforthelongtermtoenrichlives,transformbusinessanddrivesustainableoutcomes.

400

88,000

Responsible financing Financial inclusion

Climate change

Talent management and retention

Social entrepreneurship

Diversity and equal opportunity

Employee volunteerism

Workplace well-being

Sustainable procurement

Managing our environmental footprint

Responsible tax management

Data governance

Preventing financial crime

SGD 5 billion SGD 37.2Pillar 1: Responsible banking

Pillar 2: Responsible business practices Pillar 3: Creating social impact

financing for sustainability-linked loans, renewable and clean energy-related loans and green loans

‘Green Mark for Healthier Workplace’ Platinum

in financing for small and medium-sized enterprises (SMEs)

Task Force on Climate-related Financial Disclosures: Deepened transition risk assessment and introduced limited physical risk assessment

Awarded the

Workforce Transformation Award by the Institute of Banking and Finance Singapore

Nurtured over

in the last five years Included in the Bloomberg Gender-Equality Index for the third consecutive year About

Awarded the Building Construction Authority-Health Promotion Board

99.9% of new suppliers signed to our Sustainable Sourcing Principles

About 14% of renewable energy for key markets

RE100:

Contributed

in income tax

Fair dealingNO material instances of non-compliance concerning fair dealing

Cyber securityNO material instances of customer data loss

NO material instances of customer privacy breaches

NO material instances of non-compliance with laws and regulations in financial crime

About Provided

Piyush GuptaCEODBSGroupHoldings

Key highlights

CEO message

CEO message

billion

social enterprises

employee volunteering hours

> SGD 1.1 billion

3 4DBS Sustainability Report 2019


Sustainability pillarsOurapproachtosustainabilityisbasedonthreepillars– (i) Responsiblebanking,(ii)Responsiblebusinesspractices and(iii)Creatingsocialimpact.

Responsible bankingWeincorporateresponsiblefinancinginourlendingpractices,supportourcustomers’transitiontowardsmoresustainablelow-carbonbusinessmodelsandimprovecustomers’accesstoESGinvestments.Weconductourbusinessinafairandresponsiblemanner.Thisincludesadvancingfinancialinclusion,takingaproactivestancetoprotectourcustomers’informationandpreventingfinancialcrime.

Responsible business practices Wedotherightthingbyourmostimportantresource–ourpeople –andconsiderenvironmentalandsocietalfactorsinourbusinessoperations.Weprovideaninclusiveworkenvironment,manageourdirectenvironmentalfootprintandseektoinfluenceoursupplychaintowardssustainablepractices.Wealsopayourfairshareoftaxesandmakeeconomiccontributionstothecommunitiesinwhichweoperate.

Creating social impact Weseektobeaforceforgoodbysupportingsocialenterprises –businesseswithdoublebottomline–andgivingbacktothecommunitiesinwhichweoperate.Throughour“PeopleofPurpose”volunteerismmovement,wealsohelptodriveimpactintheareasoftheelderly,educationandtheenvironment.

Progress on Sustainable Development Goals AsamemberoftheUnitedNationsGlobalCompact,wearecommittedtodrivingprogresstowardsachievingSDGs.Webelievethatwehavearoletoplayinpromotingsustainabledevelopment.

WehavechosentofocusonthefollowingsixSDGswhichwebelievewecanmakemeaningfulcontributionsto,takingintoaccountthemarketsinwhichweoperate.

Responsible banking

SDGs Related ESG matters

2030 UN established targets

Selected initiatives

Performance achieved

Financialinclusion Supportwomen’sequalrightstoeconomicresources,aswellasownershipandcontroloflandandotherresources

SupportedUSD12millionImpactInvestmentExchangeWomen’sLivelihoodBond2(WLB2),astheplacementagent

• TheWLB2willcreatesustainablelivelihoodsforover250,000underservedwomenacrosstheAsiaPacific

Responsiblefinancing Promotefinancingofrenewableenergyintheglobalenergymix

Financedawidespectrumofcleanandrenewableenergytechnologiesfromsolar,windandothers

• FinancedaboutSGD1.7billionofrenewableandcleanenergy-relatedloansin2019

Financialinclusion Encourageandexpandaccesstobanking, insuranceandfinancialservicesforall

OfferedSMEsavarietyoffinancialservices,includingsupplychainfinance,loaninsurancescheme,fixedassetfinancingandothers

• Providedmorethan SGD37.2billioninfinancingforSMEs in2019

Responsiblefinancing Developquality,sustainable,andresilientinfrastructuretosupporteconomicdevelopmentand humanwell-being

AdoptedtheEquatorPrinciplesandGreenInvestmentPrinciples forBeltandRoad

• TotalamountofoutstandingloanstoinfrastructurewasapproximatelySGD4.1billionin2019

Responsiblefinancing Supportpeopleto gainrelevantinformationandawarenessforsustainabledevelopment

Engagedwealthmanagementcustomers onsustainabilityawarenessandsustainableinvesting

• Hostedpaneldiscussionsonsustainableinvestingforthesecondgenerationofourwealthmanagementcustomers

• AdoptedMSCIESGratingsforourwealthproducts,advisory anddiscretionaryportfolioservices

Responsiblefinancing Improveeducation,awareness-raisingandhumanandinstitutionalcapacityonclimatechangemitigation,adaptation andimpactreduction

Advisedandstructuredgreenloansandsustainability-linkedloans

Ceasedfinancingnew coal-firedpowerplants,apartfromhonouringexistingmandates

• Providedmorethan SGD3.3billionofgreenloansandsustainability-linkedloansin2019

• Exposuretocoal-firedpowerplantswaslessthan0.4%oftotalIBGexposurein2019

Sustainability overview

Sustainability overview5 6DBS Sustainability Report 2019


https://www.unglobalcompact.org/

Responsible business practices





Diversityand equalopportunity

Ensurewomen’sfullandeffectiveparticipationandequalopportunitiesforleadershipatalllevelsofdecision-making

EstablishedaBoardDiversityPolicytopromotediversityamongstBoard ofDirectors

• Boardfemalepercentage:18%

• GroupManagementCommitteefemalepercentage:29%

• Totalworkforcefemalepercentage:52%

Managingourenvironmentalfootprint

Increasetheshareofrenewableenergyintheglobalenergymix

Installedsolarpanels ontopofselectedretailbranchesaspartofourRE100commitment

• About14%ofrenewableenergyforkeymarkets

Talentmanagement andretention

Achievehigherlevelsofeconomicproductivitythroughdiversification,technologicalupgrading andinnovation

Investedincontinuedreskilling,upskillinganddevelopmentofemployees

Investedintechnologicalinfrastructuretosupportemployees

• Reskilledorupskilledmorethan1,100employeesundertheProfessionalConversionProgramme

• ImplementedDBSMySkillsandDBSMatchprogrammesthatmatchedemployees’skillstosuitabletrainingprogrammesandavailableinternalroles


Upgradeinfrastructureandretrofitindustriestomakethemsustainable,withincreasedresourceuseefficiencyandgreateradoptionofcleanandenvironmentallysoundtechnologies

TransformedDBStraditionaldatacentresintocloud-optimisedcentres

• ElectricityconsumptionofdatacentreITload fellbyabout8.5% inSingapore

Sustainableprocurement Promotepublicprocurementpractices thataresustainable

EstablishedSustainableSourcingPrinciples(SSP)

• 99.9%ofnewsupplierssignedSSPin2019


Improveinstitutionalcapacityonclimatechangemitigation,adaptation andimpactreduction

ObtainedGreenMarkcertificationsacross ourbranchnetwork

• 100%ofourSingaporebranchesareBuildingandConstructionAuthorityGreen Markcertified

• 62branchescertified asGreenMarkGold andabove

Creating social impact





Socialentrepreneurship

Employeevolunteerism

Supportproductiveactivities,decentjobcreation,entrepreneurship,creativityandinnovationthroughaccessto financialservices

Supportedsocialenterprisesviaour annuallyadministered SocialEnterprise GrantProgramme

Conducteddigital/financialliteracyprogrammesfortheelderlyandyouth/children

• SGD1.3milliongrantedtoninesocialenterprises

• Over400socialenterprisesnurtured inthelastfiveyears

• About88,000employeevolunteeringhourstoservecommunities

Socialentrepreneurship Increaseaccessof small-scaleindustrial andotherenterprises tofinancialservices

Addressedtheneeds ofsocialenterprisesthroughDBSSocialEnterprisePackage

• 597customersbenefittedfromSocialEnterprisePackage

• AboutSGD2.34millionofcommittedunsecuredloansweregrantedtosocialenterprisesas at31December2019

Socialentrepreneurship Improveeducation, promoteawarenessandraisehumanandinstitutionalcapacityforclimatechangemitigation,adaptationandimpactreduction

Integratedsustainabilityelementsintoevents

• Over70,000members ofthepublicattendedtheeco-certifiedDBSMarinaRegatta2019 withthethemeof “TheRaceAgainstTime”

Sustainability overview7 8DBS Sustainability Report 2019


Impo

rtan

ce to

sta

keho

lder

s

Importance in DBS’ value creation

Responsible tax management

Social entrepreneurship

Workplace well-being

Employee volunteerism

Sustainable procurement

Managing our environmental footprint

Diversity and equal opportunity

Material ESG matters have the most impact on our ability to create long-term value. These matters influence how the Board and senior management steer the bank.WereviewourmaterialESGmattersannuallyforrelevanceandprioritisation.

Thisyear,weelevatedthematerialityof“Climatechange”,“Responsiblefinancing”, “Preventingfinancialcrime”,“Talentmanagementandretention”,“Datagovernance”and“Cybersecurity”.Inaddition,“Managingourenvironmentalfootprint”and“Socialentrepreneurship”wereelevated.Theelevationreflectedincreasedattentionfromstakeholdersaswellasourexpandedeffortstocreatevalueinthesesamematters. Wealsosubsumeddigitalfinanceintofinancialinclusion.

ThematerialESGmatterstoDBSarehighlightedinredanddepictedinthe illustrationbelow.

ReadmoreabouteachESGmatteronpages15to40.

Material ESG matters

The Board has overall responsibility for sustainability and integrates ESG matters in the formulation of DBS’ strategy. The Board also determines what material sustainability matters are and provides guidance on their management and monitoring.

Roles and responsibilitiesTheCEOisassistedbytheGroupSustainabilityCouncilonsustainabilitymatters.

TheGroupSustainabilityCouncilischairedbytheChiefSustainabilityOfficerandconsistsofseniormembersfromvariousbusinessandsupportunits.Itdevelopsthesustainabilityframework,whichincludessettingkeyperformanceindicatorsinconsultationwithstakeholders andoverseeingtheexecutionofsustainabilityinitiativesacrossthebank.

TheGroupSustainabilityCouncilalsoadvisestheCEOonmaterialsustainabilitymattersthatcontributetotheoverallmaterialityassessment,whicharethenutilisedbytheBoardforstrategicplanning.TheGroupSustainabilityCouncilmeetseverytwomonthsandprovidesperiodicupdatestotheCEO,GroupManagementCommitteeandtheBoard.

Toensuresustainabilityisembeddedintheorganisation,LocalSustainabilityCouncilsareestablishedacrossourkeymarkets– China,HongKong,India,IndonesiaandTaiwan.TheseCouncilsfollowasimilarstructureastheGroupSustainabilityCouncilandhaveabroadmandatetoexecuteinitiativesinlinewiththeGroup’ssustainabilityapproachwhileadaptingthemtolocalmarketconditions.

Performance measurementProgressinoursustainabilitystrategyisreflecteddirectlyinthebalancedscorecardsoftheGroup,keymarketsandbusinessandsupportunits.Thebalancedscorecardisusedtosetobjectives,drivebehaviours,measureperformanceanddeterminetheremunerationofourpeople.

Readmoreabout“Balancedscorecard”intheAnnualReportpage26.

TheGroupSustainabilityCouncildevisesanannualscorecardwhichtracksthesustainabilityinitiativestakenandtheperformanceachieved.Itincludesthenumberofsustainability-relatedloanscompleted,howwidelyculturalawarenesstoolsareused,andothertopics.

EngagementTheBoardhasoverallresponsibilityforsustainabilityandintegratesESGmattersintheformulationofDBS’strategy.TheBoardalsodetermineswhatmaterialsustainabilitymattersareandprovidesguidanceontheirmanagementandmonitoring.Duringtheyear, theBoardwasengagedindiscussionsandtrainingonSDGs, climatechangeandothers.

TheGroupManagementCommitteeisengagedonallmaterialsustainability-relatedmatters,includingthedevelopmentofthe GroupResponsibleFinancingStandard.ThetopicsdiscussedbytheGroupSustainabilityCouncilduringtheyearincludedclimatechange,impactmeasurement,humanrightsissues,aswellasmemberships ofvarioussustainability-relatedorganisations.

Werecognisethatownershipofsustainabilitymattersbylocalmanagementteamsiscrucialtomeetingoursustainabilitygoals. TheyareupdatedontheGroup’ssustainabilitystrategyandspecificlocalissuesbytheLocalSustainabilityCouncilsandtheChiefSustainabilityOfficer.

AstheformerDevelopmentBankofSingapore,beingpurpose-drivenhasalwaysbeenpartofourDNA.Today,ourdrivetoembedsustainabilityintotheorganisationissystematicallyorganisedunderthethreepillars–responsiblebanking,responsiblebusinesspracticesandcreatingsocialimpact.Asthesepillarspermeateourpoliciesandpractices,theembraceofsustainabilitywillbeincreasinglypervasiveacrosstheorganisation.Thiswillenableustocreatesocietalandenvironmentalimpactingreatermeasure.

IndeterminingwhatmaterialESGmattersare,wealsoconsideredtherelevantsustainabilityissuesidentifiedbySustainabilityAccountingStandardsBoard(SASB). Specifically,weconsideredtheissuesidentifiedasmaterialfor(i)commercialbanks,(ii)consumerfinanceand(iii)mortgagefinance.

Readmoreabout“MappingtoSASBStandards”onpage54.

Sustainability governance structure in DBS

Board of Directors

Chief Executive Officer

DBS Sustainability Council (chaired by Chief Sustainability Officer)

Governance Material ESG matters

PrioritiseFrom the list of identified matters, we prioritise those that most significantly impact our ability to successfully execute our strategy in delivering long-term value and influencing the decisions of key stakeholders.

IdentifyWe identify matters that may impact the execution of our strategy. This is a group-wide effort taking into account input from all business and support units, and incorporating feedback from stakeholders.

Read more about our stakeholder engagement on page 11.

IntegrateThose matters that are material to value creation are integrated into our balanced scorecard, which is used to set objectives, drive behaviours, measure performance and determine the remuneration of our people.

Read more about “Balanced scorecard” in the Annual Report page 26

ESG materiality matrix

Data governance

Responsible financing

Financial inclusion

Preventing financial crime

Fair dealing

Talent management and retention

Climate change

Cyber security



Shareholders Customers Employees Society Regulators and policy makers

Wha

t wer

e th

e ke

y to

pics

ra

ised

and

feed

back

rec

eive

d?

1.Progressonoursustainabilityagendaandourapproachtofinancingenvironmentally-sensitiveindustries

2.Alignmentwithinternationalprotocolsandpledges(e.g.EquatorPrinciples,ScienceBasedTargetsInitiative)

3.Frameworks/policies/processesformaterial ESGmatters

1.DBS’responsetoclimatechange

2.Availabilityof ESG-relatedinvestmentproducts

3.Responsible useofdata

1.Through“TellPiyush”,questionswereraisedonworkplacemanagement,employeebenefits,welfareandothers

2.Inouremployeeengagementsurvey,wescoredverywellon“CustomerFocus”,“LearningandDevelopment”,“RiskandControlCulture”and“DiversityandInclusion”.Comparatively,wescoredhigherthanAPACBestEmployersfor“LearningandDevelopment”,“RiskandControlCulture”and“DiversityandInclusion”.Wecanimprovein“EnablingProductivity”and“RewardsandRecognition”

3.AvenuesthroughwhichemployeescancontributetoGroupinitiatives

1.Increasedfocusonsustainabilityandclimatechangematters–thepublicisexpectingthatbanksexertgreaterinfluenceontheircustomersandemployeestoactresponsiblyinsustainabilitymatters

2.Astheworlddigitises,segmentsoftheelderlypopulationhaveexpressedtheneedfordigitalliteracyeducation

3.SEscontinuedtofacechallengessuchasthelackoffundingaswellascommercialandoperationsexpertise.Theyexpressedthe needfortargetedtrainingto growtheirmanagementoftalent,digitalandtraditionalmarketing,aswellasfinancialanddatamanagementcapabilities

4.Humanrightsviolationsincludinghumantraffickingandmodernslaveryinhigh-riskregions

1.Financingtowardssustainabledevelopment,includingthrough theuseoffintech

2.Policiesandprocessestoaddressincreasingrisksinfinancialcrime,cybersecurityanddatagovernance

3.Asetofguidelinesillustratingsoundpracticesinthemanagementofenvironmental riskforthebankingsector

4.Fairdealingandconduct5.Taxpracticestoaddressfairshareoftaxpayment,BaseErosionandProfitShifting(BEPS)

6.Ourapproachtofinancingenvironmentally-sensitiveindustries

7.GovernanceframeworkfortheethicalandresponsibleuseofAI

Shareholders Customers Employees Society Regulators and policy makers

How

did

we

resp

ond?

1.OurSustainabilityReport2019incorporatedfeedbackrequestingmoredisclosureongeneralprogressmadeandlendingapproachtoenvironmentally-sensitiveindustries.

2.Wearethefirstbankheadquartered inSoutheastAsiatoadopttheEquatorPrinciples.

3.TheengagementinformedtheformulationofourResponsibleFinancingStandardandSectorGuides.

1.RecommendationsbytheTaskForceonClimate-relatedFinancialDisclosureswereadopted.Wedeepenedtransitionriskassessmentandintroducedlimitedphysical riskassessment.

2.Suiteofsustainableinvestmentproductsforwealthmanagementwasmadeavailable.

3.PUREprinciples(Purposeful,Unsurprising,RespectfulandExplainable)weredeveloped.Thismulti-facetedassessmentisappliedtovalidatethattheuseofdataisbeingdoneinaresponsibleandaccountablemanner.

1.Piyushpersonallyrespondedtoallthequestionsandcommentsraisedon“TellPiyush”toaddressemployees’concerns.Whereapplicable,issuesorsuggestionsweredirectedtorelevantdepartmentsforfollow-up.

2.Wecontinuedtostrengthenthebank’sculturebyrefreshingourPRIDE!behaviouraldescriptors,andemphasisingtheminourperformanceanddevelopmentreviewforallemployees.

3.SustainabilityinterestgroupswereestablishedtovolunteerworktimeinsupportofDBS’sustainabilityobjectives.Responsestofrequentlyaskedquestions,includinghowemployeescanengagemoreandthebroadsustainabilitykeyperformanceindicatorsofeachworkstream,wereshared ontheintranetportal.

1.Ouraward-winningmini-seriesSparks(secondseason)wasinspiredbytruestoriesofSEsandwasairedacrossvariousdigitalchannels.Sincethelaunch,ithasgarnered144millionofviewsacrosstheregion.Theseriesadvocatesforpeopletoreduceplasticpollutionandbemoreinclusiveofmarginalisedpopulations,amongothers.Wecontinuedtopromotethemessageof“Recyclemore,Wasteless”throughcampaignsinleadingdailiesandondigitalchannels.Inaddition,wepublishedanESG-relatedprohibitedtransactionlistandsummariesofsevenSectorGuidestoarticulateourcommitmentandposition.

2. InthePOSBActiveNeighboursprogramme,seniorshavebeenappointedas“digitalambassadors”whoproactivelysharetipsandinformationondigitalbankingatthebank’sbranchesandevents.In2019,twoofourdigitalambassadorswereappointedbyIMDAasSilverInfocommWellnessAmbassadors.

3.DBSFoundationshapeditssignatureSEGrantsprogrammetoscaleupSEs’businessesandimpact.Additionally,wesupportearlystageenterpriseswhoareintheideationandprototypingstagewiththeSocialImpactPrizeswhichattendtotheirimmediategrowthneeds.Throughthesetwoprogrammes,wehavebeenabletosupportSEsacrossdifferentstagesofgrowth.

4.Weconductedelementaryhumantraffickingandmodern-dayslaverythemedtrainingsessionswithourrelationshipmanagersandcreditriskmanagers.

1.Wesupportedclientsonsustainability-relatedfinancialproductsandworkedwithSDFAonareporttoharnessdigitaltechnologytoaddresssustainabilityissues.

2.DBSremainstheonlybankinSingaporetobecertifiedIMDADataProtectionTrustmark(DPTM).WeareactivelyparticipatinginIMDA’soutreachtopromoteDPTM,includinghostingindustrysessionstoshareourcertificationjourney.WealsocontinuedtoleaddiscussionsondevelopingdigitalecosystemsforconsumerandSMEbanking,andonusingdataandanalyticstoimprovefinancialcrimeriskmanagement.

3.Duringtheyear,weparticipatedheavilyintheconsultationofMAS’EnvironmentalRiskManagementGuidelinesandengagedrelatedbusinessandsupportunitson itsimplications.

4.FairdealingcommitmentisembeddedinourCodeofConductandallfairdealingoutcomesarereportedtotheBoardRiskManagementCommitteeonaquarterlybasis.

5.OurapproachtoBEPSis disclosedpublicly.

6.TheengagementinformedtheformulationofourResponsibleFinancingStandard.

7.WecontributedtoSingapore’smodelAIgovernanceframeworkandhaveadoptedtheguidelineswithin.

Stakeholder engagement

Stakeholder engagement

Shareholders

We provide investors with information on our sustainability commitments and progress for them to make informed investment decisions about DBS.

Customers

We interact with customers to better understand the environmental and social issues of importance to them so that we can propose the right financial solutions for them.

Employees

We communicate with our employees using multiple channels to ensure they are engaged in driving our sustainability efforts. This also allows us to be up to date with their concerns.

Society

We engage the community including non-governmental organisations (NGOs) and opinion makers to better understand how we can help address the needs of society.

Regulators and policy makers

We strive to be a good corporate citizen and long-term participant in our markets by providing input to and implementing public policies regarding sustainability. More broadly, we seek to be a strong voice for Asia in sustainability-related forums.

How

did

we

enga

ge? • Meetingswith

investorstounderstandtheirexpectationsonSustainabilityReportingandgreenbondfinancing

• Ongoingconversations withmajorESGratingagencies

• Focusgroupstudytoevaluateinterestofretailcustomersforsustainableproducts

• AnnualFutureLeadersProgrammetoraiseawarenessofDBS’sustainabilitystrategyandcommitment

• Seminarsonemergingissuesincludingenvironmentalsustainability,womenandchildreninAsia,andageingpopulations

• SingaporeCreatorAwards2019topromoteuniquelylocaldesignsandideastoinspire”Recyclemore,Wasteless”

• Sustainabilitydisclosureson ourwebsites

• “DBSOpen”–quarterlygroup-widetownhallshostedbyCEOPiyush Gupta

• “TellPiyush”–anonlineforumwhereemployeescanfreelysharetheirfeedbackandpostquestionstotheCEO

• Regulardepartmenttownhallsandeventsheldbyseniormanagementincludediscussiononsustainability-relatedinitiatives

• Annualemployeeengagementandsustainabilityawarenesssurvey

• Employeesustainabilityfocusgroups

• Sustainability intranetportal

• Sustainabilityinterestgroups–volunteersleadinitiativeswithinDBS

• Annualgroupleadershipconferenceforseniormanagement

• Meetingswithsocialenterprises(SEs)todiscusstheirprogress, shareexperiences,andunderstandtheirspecificchallenges

• Communitypartners/socialserviceagencieswereengagedtounderstandconcernsfromgroundup,suchasthechallengesourbeneficiaries–theelderly,underprivilegedanddisadvantaged–faceandareaswherewecaneffectivelysupportthem

• ConnectingtogovernmentbodiesandassociationsincludingSingaporeCentreforSocialEnterprise,CommunityChest aswellasnetworkssuchasAsianVentureandPhilanthropyNetworkandUNGlobalCompacttocontinuedialogue,engageandsupportwherenecessary

• StrongpartnershipssuchasacademicinstitutionslikeSingaporeManagementUniversity–InstituteofInnovationandEntrepreneurshipandLienCentreforSocialInnovationtosupporttacklingreal-worldsustainabilitychallenges

• Beingthe“People’sBank”,POSBplaysanactiveroleinengagingthecommunitywithinourneighbourhoodsandpartneringwithvariousagenciessuchasCommunityDevelopmentCouncils,InfocommMediaDevelopmentAuthority(IMDA)andthePeople’sAssociationtomakeadifference insocietyatlarge

• MeetingwithNGOsabouttheirspecificconcerns

• Participatinginvariousindustrysustainability-relatedforumsorganisedbyWorldWideFundforNature(WWF)Singapore,WorldBusinessCouncilforSustainableDevelopment,GlobalCompactNetworkSingaporeandGRIRegionalHubinSingapore

• ConsultationswithUnited NationsbodiesincludingSustainableDigitalFinanceAlliance(SDFA)withPiyushasamemberoftheadvisoryboard,andUNSecretary-General’sTaskForce onDigitalFinancingoftheSDGs

• MeetingswithgovernmentsandregulatorsincludingMonetaryAuthorityofSingapore(MAS)

• AdvisingpublicpolicyagenciesincludingIMDAwithCEOPiyushGuptaasacouncilmemberto theAdvisoryCouncilontheEthicalUseofArtificialIntelligence(AI) andData

• Activeparticipationinvariousindustrysustainability-relatedforumsorganisedbytheAssociationofBanksinSingaporeandSingaporeInstituteofInternationalAffairs



Our key markets

Our key markets

We are proud to make a positive impact in our key markets and across our three sustainability pillars.

Our local offices, supported by Local Sustainability Councils, have driven initiatives to advocate, engage and empower stakeholders on sustainability.

We are honored to be named the inaugural winner of the “Social Enterprise Champion of the Year (Corporation)” award at the President’s Challenge Social Enterprise Awards (PCSEA) 2019.

India

We organised an event for employees to use their volunteer leave to plant 200 saplings of Rhizophora mangle (red mangrove) species. This event included a brief introduction to mangroves and their ecosystem, a pledge to continue supporting the mangroves project and the actual planting. A total of 32 employees from the Mumbai office participated.

The inaugural DBS Hong Kong Sustainability Day was launched to engage, entertain and educate staff on the bank’s sustainability strategy and efforts, and on sustainable lifestyle practices. Multiple internal and external guest speakers were invited to share their perspectives and a variety of booths and activities were set up by SEs. The event saw more than 1,000 participating employees and positive feedback was received on the meaningful guest presentations and booth activities.

Hong Kong

Taiwan

In March 2019, we launched the Carbon Zero Mission to conserve energy and reduce its related carbon emissions. The six-month campaign had 67 champions trained to lead more than 2,400 participating employees across our operations in Taiwan. Through this period, we achieved overall savings of approximately 200 MWh of electricity which is equivalent to around 110 tCO².

Indonesia

In July 2019, we partnered PT Sumatera Timberindo Industry, a leading premium wooden furniture door manufacturer, to sign the first export financing sustainability-linked loan of its kind in Indonesia. The loan was evaluated based on a target to obtain timber and raw materials from sources certified by the Forest Stewardship Council (FSC). The interest rate of this loan will be reduced for each shipment of raw material that has an FSC certification, documenting that the raw material is responsibly sourced.

China

In August 2019, we set up a pop-up store at a popular retail mall in Shanghai, promoting “Recycle more, Waste less”. The interactive activities included screening of the latest Sparks mini-series, sorting garbage using virtual reality technology and others. Key opinion leaders were invited to livestream the event and promulgate the message to their followers.

Singapore

In recognition of our efforts to nurture social enterprises (SEs) in Singapore and the region, we were named the inaugural winner of the “Social Enterprise Champion of the Year (Corporation)” award at the PCSEA 2019. The PCSEA, conferred biennially by the President’s Office, honours outstanding businesses and their partners within the SE sector in Singapore for contributions made to the local community.



15 16DBS Sustainability Report 2019 Pillar 1: Responsible banking


Identification Evaluation Decision making Monitoring

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The following writeups describe (i) why it matters, (ii) approach, (iii) initiatives, (iv) status, (v) targets and (vi) case study for each ESG matter and is structured based on our three sustainability pillars.

A. Responsible financing Why it matters Ourfinancingplaysacriticalroleindirectingcapitalflowsandunlockingopportunitiesthatsupportsustainabledevelopment.Werecognisethatfinancingcustomerswholackthecommitment,capacityorcapabilitytomitigateESGriskscanleadtocreditandreputationrisksforthebank.

Westandbyourcustomerswhoaremotivatedtomakeapositiveimpact,forexample,intheareasofrenewableenergy,sustainablefoodandagriculturalsystemsandusingalternativesforscarcematerials.Withthegrowingurgencyforsustainablebusinessmodelsandclimate-resilienteconomies,wewillcontinuetostructurefinancingsolutionstosupportthistransition.

ApproachOurGroupCoreCreditRiskPolicyincorporatesprinciplesandapproachestomanagingESGissues.Ourlistofprohibitedactivitieswasalsostrengthenedin2019.TheyaresupplementedbytheGroup Responsible Financing Standardandoureight Sector GuidespertainingtosectorswithelevatedESGrisks.AnewSectorGuidefortheAnimalHusbandryandFeedsectorwasalsointroduced.TheGroupResponsibleFinancingStandardissubjecttoanannualreview.Itappliestoallourlending andcapitalmarketproductsandservicesforcorporatecustomers.

Thisyear,weexpandedtheapplicationofESGstandardstopromotersharefinancinginPrivateBanking(wherecustomerspledgetheirowncompanysharesascollateral),andthebankingbookinvestmentdeskwithinTreasuryandManagement.WeaimtoapplyESGstandardsconsistentlyacrossthebankwherepracticable.

Sector GuidesWehavedevelopedeightSectorGuidesthatoutlinetheESGstandardsweexpectofourcustomers.Thesecovertheagriculturalcommodities,palmoil,chemicals,oilandgas,miningandmetals,powergeneration,infrastructure,andanimalhusbandryandfeedsectors,andprovide ourrelationshipmanager(RMs)andcreditriskmanagers(CRMs)with astructuredapproachtoassessESGrisks.

TheseSectorGuidesrefertocertificationschemes,internationalbestpracticesandconventionssuchastheInternationalFinanceCorporation(IFC)PerformanceStandards,WorldBankEnvironmental,HealthandSafetyGuidelines,InternationalLabourOrganizationConventionsandRecommendations,InternationalCouncilonMiningandMetalsprinciplesandpositionstatements,RoundtableonSustainablePalmOil(RSPO)PrinciplesandCriteria,TheStockholmandRotterdamConventionforchemicals,UNESCOWorldHeritageConventionandtheAssociationofBanksinSingapore’s(ABS)HazeDiagnosticsKit.

ReadmoreaboutOurApproachtoResponsibleFinancing.

ESG risk managementESGrisksmayincludeacombinationofenvironmentalmatterssuchasbiodiversityloss,marineecosystemdegradation,climatechange,deforestation,hazardouswastecontamination,waterscarcityandpollution,aswellassocialmattersincludinglabourandhumanrights,occupationalhealthandsafetyandinvoluntaryresettlements.

CheckifcustomeroperationfallsunderExclusionList

Preliminaryscreening ofrisksassociatedwith thecustomer/project

EngagecustomersonspecificESGrisksonatimelybasis

Conductenhancedduediligence(e.g.sitevisits,independentreviewsorcertification requirements)

Forhighriskscases,recommendfinancingconditions/covenantstomitigateESGrisks

CompleteGenericorSector-SpecificESGRiskAssessmentaspartofcreditapplication,capitalmarketstransactionclearance,orduringannualreview

Roles and responsibilities in the ESG risk assessment process, which enables us to develop an overall understanding of the customer’s approach to managing ESG issues including commitment, capacity and track record.

Pillar 1: Responsible banking

ConsistentwithDBS’internalcontrolsframework,weadoptthreelinesofdefencetomanageourESGrisk.RMsconductESGriskassessmentsforeachborroweraspartofthecreditapplicationprocess,formingthefirstlineofdefence.TheInstitutionalBankingGroup(IBG)Sustainabilityteamconductsadditionalevaluationoncasesthatareescalated.Enhancedduediligencemaytaketheformofsitevisits,independentreviewsorcertificationrequirements.Asthesecondlineofdefence,ourCRMsreviewtheseESGassessmentsaspartofthecreditapprovalprocess.GroupAuditprovidesthethirdlineofdefencethroughperiodicauditevaluationontheeffectivenessofourESGriskmanagement.

Monitoringcustomers’adherencetoourESGstandardsandimplementinggoodESGpracticesinvolvenumeroussteps.Theyincludetrackingprogressinaddressingpastincidents,followingnegativemediacoverage,engagingcustomersinestablishingpoliciesthatalignwithinternationalstandards,andfollowinguponagreedmitigatingmeasures.IfacustomerisunwillingtoadequatelymanageandmitigatetheidentifiedESGrisks,wearepreparedtoturndown thetransactionorreassessthebankingrelationship.

TheBoardRiskManagementCommitteeapprovesDBS’overallandspecificriskgovernanceframeworksandoverseesanindependentGroup-wideriskmanagementsystemincludingresponsiblefinancing.Attheportfoliolevel,theIBGSustainabilityteamreportstotheGroup CreditRiskCommitteebiannuallyandanymaterialissuesarecommunicatedtotheGroupRiskExecutiveCommittee.

In2019,wepaidspecificattentiontoourpowergeneration,thermalcoalandpalmoilportfolios.

Thermal coal-related financingInApril2019,weannouncedwewillceasefinancingnewcoal-firedpowerplantsinanymarket,afterhonouringourexistingcommitments.Thisfollowedfromourearliercommitmenttoceasefinancingnewthermalcoalminingprojects.Whenprovidingcorporatefinancing,wewillonlysupportcustomerswithadiversificationstrategyinthesesectors.

Ourexposure(1)tothermalcoalminingandcoal-firedpowerplantsattheendof2019wereSGD1.17billionandSGD1.63billionrespectively,representing0.24%and0.33%oftotalIBGexposure.Whileourcoalportfolioisalreadyrelativelysmall,weexpecttoseethisshrinkasnewcommitmentsareeliminated.

Atthesametime,wehaveincreasedoursupporttowardsrenewableenergydevelopment.Attheendof2019,ourexposuretorenewableenergywasSGD3.03billion,representing0.62%oftotalIBGexposure.

NomaterialESGriskidentified

MaterialESG risksidentified

Monitor ESG risks, metrics at transaction and portfolio levels

Report to Group Credit Risk Committee on a half-yearly basis

Follow-up on agreed mitigation measures and action plan

Credit approval by relevant credit approving authority

Approve with time-bound mitigation measures or Reject if action plan cannot be agreed upon

Thermal coal mining

0.00%

0.80%

2016 2017 2018 2019

Exposure to thermal coal mining(% of total IBG credit exposure)

Coal-fired power plants Renewables

0.00%2016 2017 2018 2019

Exposure to coal-fired power plants and renewables(% of total IBG credit exposure)

Palm oil financingAsapriority,weservecustomerswhodemonstratealignmentwithRSPOstandardsandnodeforestation,nopeatandnoexploitation(NDPE)commitments.Allourpalmoilcustomersalignthemselves witheitherNDPEorRSPO,orboth.Thisisinlinewithourpalmoil ESG-relatedcommitmentannouncedin2017.

AsofDecember2019,ourexposuretopalmoilsectorstoodat SGD1.8billion,representing0.37%oftotalIBGexposure.

Exposure by borrower committments (NDPE, RSPO)

This chart includes palm oil plantations, crude palm oil mills, palm oil refiners, integrated players and processors.

0.20%

0.40%

0.60%

0.20%

0.40%

0.60%

0.80%

RSPOandNDPE NDPE

26%

70%

4%

RSPO

(1) Exposure refers to the maximum loss (including commitment and outstanding) that a bank may incur as a result of the failure of a counterparty to meet its credit obligations

https://www.dbs.com/sustainability/responsible-banking/responsible-financing



Initiatives Sustainability-related financial productsWeactivelyidentifycustomersacrossourlendingportfolioandencouragethemtoadoptsoundenvironmentalandsocialpracticeswhichreducenegativeimpactsand/orenhancepositiveimpacts.Forexample,wehelpedclients’transitionintheautomotiveindustrythroughservingthevaluechainbybringingmetalsforthefutureincludingnickel,lithiumandcoppertobatteryandelectricvehiclesproducers.

Greenloans(2)areloansmadeexclusivelytofinanceeligiblegreenprojectsinenergyefficiency,pollutionpreventionandothers.Sustainability-linkedloansarestructuredtoenablecustomerstopaylessinterestwhentheyachieveasetofpre-agreedESGperformancetargetswhicharevalidatedbyanindependentESGratingagencyorverificationparty.Ourcustomersareabletoleveragesuchincentivesformeaningfulsustainabilityimpact,whileweplayourparttomotivatethispositivetransitionandstrengthenourbankingrelationships.

WemakeavailableasuiteofESGinvestmentproductsincludingtheParvestGlobalEnvironmentFund,WellingtonGlobalImpactFundandFirstStateDividendAdvantage.WhenonboardingtheseESGFundsontoourplatform,welookformanagerswhohaveaproventrackrecordofintegratingESGintotheirinvestmentprocess,aresignatorytoPrinciplesofResponsibleInvestmentandusecrediblethirdpartyESGresearchplatformsorhaverobustinternalESGresearchcapabilities.Inthelastquarterof2019,weonboardedourfirstfixedincomeESGproduct–RobecoSAMSDGCreditIncome.Thisfundisaglobalcreditportfoliowithflexibleallocationacrossinvestmentgrade,high-yieldandemergingmarketcorporatecredit.OnekeydifferentiatingfactoristheextentofESGintegrationintheinvestmentprocessandtheadditionalscreeningprocesstoavoidincludingcompaniesthatcontributenegativelytowardstheUNSDGsintheirportfolio.Inaddition,wehavealsoadoptedMSCIESGratingsforourwealthproducts,advisoryanddiscretionaryportfolioserviceforourwealthclientstomakebetterinformedinvestmentdecisions.Theseratingsaremadeavailableonrequestthroughtheirrelationshipmanagers.DBSwillalsoexploreleveragingthiscapabilitytointroduceESGofferingsinretailapplications.

Equator PrinciplesAspartofourongoingeffortsinpromotingresponsiblefinancing,webecamethefirstbankheadquarteredinSoutheastAsiatoadopttheEquatorPrinciples(EPs)inNovember2019.TheEPsisagloballyrecognisedriskmanagementframeworkadoptedbyfinancialinstitutionsfordetermining,assessingandmanagingenvironmental andsocialriskindevelopmentprojects.TheEPsalsooutlineenvironmentalandsocialstandardsforlarge-scaledevelopments andarebasedonIFCPerformanceStandards.

Green Investment Principles for the Belt and Road InitiativeWeadoptedtheGreenInvestmentPrinciples(GIP)fortheBeltandRoadInitiativeprojectsinApril2019.TheGIPconsistsofsevenprinciplesandaimstoincorporatelow-carbonandsustainabledevelopmentpracticesintoinvestmentprojectsinBeltandRoadcountries.

Correlation between credit quality and ESG performanceCognisantofthediscussionsheldbyregulatorsaroundtheworldwithregardstothepotentialuseofdifferentialcapitaltreatmentsforgreenandbrownassets,wehavestartedinvestigatingtheconnection

betweenthecreditqualityofcompanies,theirESGperformanceandthenatureoftheirbusinessactivities.Thisinvestigationentailsthecollectionofdatatoidentifyareaswhereasustainablebusinessmayjustifylowercostoffinancing.

TrainingTrainingallowsouremployeestobeequippedwiththeknowledgetoapplyourpoliciesandstandardsconsistently.Since2018,772employeeshaveundergoneESGtraininginaclassroom-basedsetting.Atotalof1,850RMsandCRMshavecompletedthetrainingusingourResponsibleFinancinge-learningmodule,representingabout97%completionrate.Attheindustrylevel,weparticipated ine-learningcontentdevelopedbyABSandWWF andofferedittoouremployees.

In2019,weintroducedanewtrainingsessiontoourRMsandCRMs,specificallyonthetopicsofhumantraffickingandmodern-dayslavery.ThreetrainingsessionsofthismodulewereconductedwithourKnow-Your-Customerteamandwetrained628RMs.Theobjectivewastoraiseinternalawarenessonemergingissuesandenhanceourunderstandingoftheearly-warningsignalsandrelevanceofmodernslaverytoourbusiness.

Engaging stakeholdersEngagementwithkeystakeholdershelpsusdefineourstrategicpriorities.Weholdregularconversationswithinstitutionalinvestors,employees,industryassociationssuchasABS,customers,communities,NGOsandregulators.Wealsoparticipateinsustainability-relatedforumsorganisedbypolicymakers,bankingassociations,academicinstitutionsandshareourthoughtsonspecificESGmatters.

Thisyear,weco-chairedtheworkinggroupinconsultationwiththeMonetaryAuthorityofSingaporeonthedevelopmentofEnvironmentalRiskManagementGuidelineswhichwouldoutlineexpectationsongovernance,riskmanagementanddisclosure.

Wecontinuetoengageourcorporatecustomersongreenfinancinginstruments.DuringtheannualDBSMarinaRegatta,weheldaprivatesessionwithourcorporatecustomerstoraiseawarenessongood ESGpracticesandmakingpositiveimpacts.

DBSTreasuresPrivateClientorganisedapaneldiscussiononthefutureofinvestingwithanemphasisonsustainableinvestingtothesecondgenerationofourwealthmanagementcustomers.

HeveaConnect – A digital trading marketplace for sustainable rubber Lastyear,wepartneredHalcyonAgritolaunchHeveaConnect,adigitalmarketplaceforthetradingofsustainablyprocessednaturalrubber.Sincethen,ITOCHUCorporationofJapanhasinvestedintoHeveaConnect.Itswhollyownedsubsidiary,PTAnekaBumiPratamaofIndonesiahasadoptedtheHEVEAPROframeworkfortheprocessingofnaturalrubber,coveringover1,200auditpointsinqualityassurance,environment,healthandsafetyandothers.VonBunditCo.,LtdofThailandisalsocommittedtoadoptingtheHEVEAPROframework.Withincreasedinvolvementfrominvestorsandnaturalrubbersuppliers,webelieveHeveaConnectwillcontinuetogaintractioninto2020.

ReadmoreaboutHeveaConnect.

(2) As defined in the Green Loan Principles by the Loan Market Association and the Asia Pacific Loan Market Association

StatusIn2019,268ESGriskassessmentsconductedforlargecorporatecustomerswereescalatedforenhancedduediligence.Thisrepresentedabout4.4%ofthelargecorporatecustomersassessed.

Weconcluded35sustainablefinancingtransactionsamountingtoaboutSGD5billion.TheycomprisedapproximatelySGD1.2billion ofsustainability-linkedloans,SGD1.7billionofrenewableand cleanenergy-relatedloansandSGD2.1billionofgreenloans. Oursustainablefinancinghasincreasedbyapproximately60% fromSGD3.1billion(3)theyearbefore.

Todate,wehaveraisedapproximatelySGD8millionforthe ParvestGlobalEnvironmentalFund.AccordingtotheImpaxAssetManagementimpactreport,foreveryUSD1millioninvestedin2018,approximately60megalitresofwaterwastreated,savedorprovided,122MWhofrenewableelectricitygenerated,and260tonnesofmaterialsrecovered,orwastetreated.

Forinfrastructure(4)financing,theamountofoutstandingloanswasapproximatelySGD4.1billionin2019.

Targets Wearecommittedtothefollowingtargetstopromotesustainabledevelopment:1. Renewablefinancing:WeaimtofinanceSGD10billionofrenewable

andcleanenergy-relateddevelopmentsby2024,withanexpecteddouble-digitgrowthannually;and

2. Green(besidesrenewableenergy)financing:Weaimtofinance SGD10billionofgreenprojects,assetsandactivitiesby2024, withanexpecteddouble-digitgrowthannually.

Case study

Chew’s Agriculture signed Singapore’s first SME sustainability-linked loan with DBS

InMay2019,DBSandChew’sAgriculture,aleadingeggproducerinSingapore,signedathree-year,SGD27millionsustainability-linkedloan,afirstofitskindforaSME,toconstructanewfarmwithcage-freefacilities.Underthetermsoftheloan,Chew’swillenjoylowerinterestratesifitobtainstheHumaneFarmAnimalCareCertification.Thecertificationaimstoimprovethewelfareoffarmanimalsandensurehumanefoodproduction.Thehenslayingeggswillbe housedinoptimalconditions–whichincludelargerlitterareasandelevatedpercheswhichhaveappropriateenvironmentaldesign. Thisresponsiblemanagementoflivestockwillalsoenhancethenutritionalvalueoftheeggsthattheyproduce.

AnadditionalenvironmentalfeatureoftheloanisthatChew’swillsupplyitsorganicpoultrywastetoAcropower,anenergyspecialist, toconvertitintobiogasforelectricitygeneration.

ThistransactionmarkedamilestoneforsustainablefinanceasitwasSingapore’sfirstsustainability-linkedloanforanSME.

B. Climate change Why it matters Climatechangeisperhapsthemostexistentialthreatofourtime.EmissionsreductiontargetscommittedundertheParisAccordhaveputusontrackfora3.2°CtemperatureincreasethiscenturywhiletheUNIntergovernmentalPanelonClimateChange(IPCC)hascalledforwarmingtobelimitedto1.5°C.Wide-ranginginitiativestoachieveanimmediatetransitiontoalow-carboneconomyisnowrequired.Suchatransitionmaybringabouthighercarbonpricesthatmaypresentcreditrisktothebankbutalsocreateopportunitiestofinancecompanies’transitions.

Financialregulatorsaroundtheworldhaveraisedexpectationsonbankstounderstand,measureandreportclimate-relatedrisksandthereareongoingdiscussionstointroducemandatorystresstestingofclimaterisksinsomecountries.InSingapore,wehaveparticipatedintheMonetaryAuthorityofSingaporepreparationofthesoon-to-beissuedEnvironmentalRiskManagementguidelinesasoneofarangeofinitiativestoaddressclimate-relatedrisks.

(3) We have restated total sustainable financing for 2018 from SGD 2.4 billion to SGD 3.1 billion(4) Broadly, infrastructure comprises of project financing to renewables, transmission and distribution, road, port, rail, telecommunications and others

107

29

36

42

57 12 12

18

Number of escalated ESG risk assessments by sector

AgricultureexcludecrudepalmoilChemicalsGeneric

InfrastructureMiningandmetalsOilandgas

PalmoilPowerAnimalhusbandry &feed

https://www.dbs.com/sustainability/responsible-banking/sustainable-financing/esg-funds/parvest-global-environment-fund

https://www.dbs.com/sustainability/responsible-banking/sustainable-financing/esg-funds/wellington-global-impact-fund

https://www.dbs.com/sustainability/responsible-banking/sustainable-financing/esg-funds/first-state-dividend-advantage

https://www.heveaconnect.com/



ApproachThroughourlendingandcapitalmarketintermediaryactivities,wearecommittedtopromotinganorderlytransitiontoalow-carboneconomy,whilstbalancingtheneedforeconomicgrowthandsocialinclusion.

Theclimate-relatedrisksfacingourcustomersultimatelyaffectourcreditandreputationrisks.Consequently,climate-relatedrisksareconsideredaspartoftheESGriskassessmentweconductoncustomersinourcorporatelendingandcapitalmarketsbusiness.

Readmoreabout“Responsiblefinancing”onpage15.

In2019,weexpandedourworkrelatingtotheTaskforceonClimate-relatedFinancialDisclosures(TCFD)bydeepeningourtransitionriskassessmentandintroducingalimitedphysicalriskassessmentforsomeofourborrowers.

Weactivelyengageregulatorsontheirexpectationsofusinunderstanding,mitigatingandreportingclimate-relatedrisksthroughworkinggroupsandpilotstresstestingscenarios.

InitiativesWehavefocusedonthefollowingthree key areas:

FinancingWeareincorporatingclimateactionconsiderationsinourbusinessactivities.Someoftheinitiativesinclude:• Announcingacessationinfinancingnewcoal-firedpowerplants

inanymarketsregardlessoftheefficiencyoftechnologiesused,afterhonouringourexistingcommitments

• FinancingaboutSGD3.8billiontorenewableandcleanenergy-relatedloansandgreenloans

• Supportingcorporateclientstomobilisecapitalmarketfinancingviaissuancesofgreenbonds.In2019,weunderwroteoverSGD4billionworthofgreenbonds,withtheraisedproceedsusedtofinanceanumberofprojectsinrenewableenergy,cleantransportation,energyefficiency,andwaterandwastewatermanagementsectors

• ParticipatinginBuildingandConstructionAuthority’sBuildingRetrofitEnergyEfficiencyFinancing(BREEF)SchemeandtheSingaporeEconomicDevelopmentBoard(EDB)EnergyEfficiencyFinancingPilotProgramme.TheseschemesofferfinancingtohelpSMEsoffsethighupfrontcoststhroughanenergyperformancecontractarrangement.ThetotalamountofoutstandingloanstoBREEFandEDBEnergyEfficiencyFinancingPilotProgrammewasaroundSGD7.25million.

OperationsAllfunctionsofthebankareengagedinreducingcarbonemissionsfromouroperations.Someoftheinitiativesinclude:• MakingRE100progressinmanagingourenvironmentalfootprint

throughtheinstallationofsolarpanelsacrossourkeymarkets• Establishingsustainability-relatedinterestgroupsandengaging

greenambassadorsformanagingourenvironmentalfootprint• Enhancingtheexistingmeasurementsystemtoincorporate

real-timeenergymonitoring

• Launchingapledgecampaignforemployeestoreducetheir carbonfootprint.Morethan1,500pledgeswerecommittedand about1,355tonnesofCO2ewillbesaved

• Issuingoursecondauditedgreenbondreportthatquantified13,843MWhofenergysavedand5,803tonnesofcarbon emissionsavoidedin2018

Advocacy Welaunchedinitiativestoraiseawarenessontheissueofclimatechange,morebroadlyontheenvironment,andtoencouragethepublicandpassionatechangemakerstotakestepsineffectingchange:• LaunchingDBSSparksSeasonTwo,inspiredbytruestoriesofsocial

enterprisesfocusedonpositivelyimpactinglivesandtheenvironment• Organisingtheeco-certifiedDBSMarinaRegattawiththetheme

of“TheRaceAgainstTime”whichaimstoraiseawarenessonenvironmentalissues

• LaunchingtheDBSQRgiftoverthethreemajorfestivals,ChineseNewYear,HariRayaandDeepavali,whichaimstoencouragethepublictoembracedigitalalternatives,reducecashdisbursementandsingle-usepackets

StatusWeareasupporteroftheTCFD,amarket-driveninitiativeestablishedbytheFinancialStabilityBoardtodeviseguidelinesonclimate-relateddisclosuresthatarecomparableacrosscompanies,consistentovertimeandreliableintheirmeasurement.

Lastyear,wecommissionedagloballyrecognisedindependentenvironmentalconsultancyfirmtoassistinconductingapilotstudy(5) ontransitionrisk(6).In2019,wecontinuedtofocusonthefivesectorsthataremostlikelytobeimpactedbyeffortstocombatclimatechangeandexpandedourworktoincludephysicalrisk(7).Thefivesectorsare:

Sectors SubsectorsAgriculture Agriculture,Food&Beverage(F&B)

upstream,F&BmidstreamandRubber

Chemicals Chemicals

Energy Oil&GasandPower

Miningandmetals Coal,Metal(ferrous)andMetal(non-ferrous)

Realestateandtransportation

Autoupstream,Automidstream,Aviation,RealestateandShipping

Readmoreabout“MethodologyforTCFD”onpage55.

Carbon footprintWeselected368listedcustomersforthestudy.Collectively,theyaccountedforabout9.7%ofourIBGexposureasofJune2019.

Wemeasuredthecarbonintensityofeachcustomer,usingthemetric“carbontorevenue”,whichistheamountofcarbonproduced(inmetrictonnes)foreverySGD1millionofrevenuegeneratedbyeachcustomer.Thismetricprovidesanindicationoftherisksacompanyfacesfromfutureregulationstocurbcarbonemissions.TheamountofcarbonproducedbythecustomersformsthebasisofScope3emissions(8)forus.

(5) The scope of our pilot study covers greenhouse gas (GHG) emissions. Carbon dioxide (CO2) is a component of GHG emissions. The term “carbon” is used broadly in this section and is consistent with market norms to describe GHG

(6) Transition risk is concerned with a lower-carbon economy which may entail extensive policy, legal, technology and market changes to address mitigation and adaptation requirements related to climate change

(7) Physical risk resulting from climate change can be event driven (acute) or longer-term shifts (chronic) in climate patterns. Acute physical risks refer to those that are event-driven, including increased severity of extreme weather events, such as heatwaves, hurricanes, or floods. Chronic physical risks refer to longer-term shifts in climate patterns (e.g., sustained higher temperatures) that may cause sea level rise or chronic heat waves

Inboth2018and2019,thetwomostcarbonintensivesectors weretheenergysectorandtheminingandmetalssector. Ouraggregateexposuretobothsectorswasapproximately3%ofIBGexposurein2019.Othersectorshaverelativelylowerintensities.

Thechangesincarbonintensityobservedacrossallsectors,includingthesignificantchangeinminingandmetals,reflectsprimarilychangesinourlendingexposurestocustomerswithinthesesectorsandmayfluctuateovertime. Weaimtoreducetheintensityoverthemediumtermaswehelpourclientsmanagetheirtransitiontoalow-carboneconomy.

Scenario analysis – transition riskWeanalysedthepotentialcosttothe368customersfromcarbon-relatedregulationsusingscenariosreflectingdifferentcarbonprices(11). Weappliedcreditriskmodelstoover60%ofthesecustomerstoevaluatetheirpotentialcreditdeteriorationarisingfromtheimpactof ahighercarboncost.Acreditratingdowngradeofatleastone-notchwasobservedin59customers.

Theresultsofthepilotstudyindicatedthefollowing:• Certaincarbon-intensivecustomersinourkeymarketsmaybe

negativelyaffectedbytransitionrisk,especiallyiftheincreaseincarbon-relatedcostscannotbepassedontotheircustomers;and

• Ourexposuretocustomersinthestudymostimpactedbytransitionriskisnotmaterialtoouroverallloanbook.

Scenario analysis – physical riskWeembarkedonapilotassessmentofphysicalriskforthesame368customersusingthreefutureclimatechangescenarios(12)andwechosetofocusontheenergyandminingandmetalssectors.

Theassessmentconsistedofsevenclimatehazardindicators,namelywaterstress,flood,heatwave,coldwave,hurricane,wildfireandsealevelrise.Physicalassets(whereinformationisavailable)ofourcustomersaremappedtoclimatechangephysicalhazardmapsandariskscoreforeachclimatehazardindicatorisassigned.Whileindividualcustomersmayexperiencedifferentlevelsofphysicalriskexposure,ingeneral,thereisanincreaseinphysicalriskexposureforheatwave.Thistrendisobservedinbothmoderateandhighclimatechangescenarios,betweennowand2050.

Wehavenotperformedafinancialimpactquantificationarisingfromphysicalriskassessment.

Moving forwardWerecognisethatclimatechangeassessmentsinherentlyhaveahighdegreeofuncertaintybecauseweatherpatternscanbeunpredictable,assumptionsusedinclimateriskmodellingandpolicyoutcomesmayhaveunforeseenpositiveornegativeeffects.Theanalysisandprognosisrelatedtoclimatechangecanthereforechangeovertime asscenariosevolve.

Nevertheless,thepilotstudyrepresentstheinitialstepofourcommitmenttounderstandingclimatechangeandhowitwillimpactourbusiness.Thefindingswillprovidethebasisforustoengagecarbon-intensivecustomersandcustomerswithassetsassessed ashighphysicalriskandguideoureffortstostructurallyshiftourportfolioovertime.

TargetsWewillcontinuetoengageouremployeesandcustomersonclimateaction-relatedinitiativesanddeepenourdiscussionwithregulators onclimatestresstestingmethodologies.

(8) “Scope 3” emissions are emissions incurred via our lending to companies in these five sectors. Scope 3 emissions are derived from customers’ “Scope 1” emissions which refer to all direct GHG emissions and “Scope 2” emissions which refer to indirect GHG emissions from the consumption of purchased electricity, heat or steam

(9) The weighted average carbon intensity for all five sectors is 472 CO2e / SGD million (2018: 567). This is a metric recommended by TCFD(10) CO2e (Carbon dioxide equivalent) is a standard unit for measuring carbon emissions by converting all types of GHG emissions into a CO2 basic unit(11) We considered three climate-related scenarios based on research by the International Energy Agency and the Organisation for Economic Co-operation and

Development. The three scenarios are differentiated by the assumed increase in carbon prices (ranging from USD 10 to USD 124 by 2030) and probability of limiting temperature increase to 2°C

(12) We considered three future climate scenarios based on IPCC representative concentration pathways and informed by the TCFD technical guidelines

Industry sectors

2019 (N = 368 customers) 2018* (N = 303 customers)

Sample population as % of IBG exposure

Sample population weightedcarbon to revenue(9)

Tonne CO2e(10)/ SGD million

Sample population as % of IBG exposure

Sample population weighted carbon to revenue

Tonne CO2e/ SGD million

Agriculture 1.0 259 0.5 525

Chemicals 0.6 462 0.1 474

Energy 2.3 1,134 1.7 1,533

Mining and metals 0.7 841 0.3 1,711

Real estate and transportation 5.1 165 5.2 192

Total 9.7 - 7.8 -

* We have changed our approach to remove the apportionment of results to provide a more direct reflection of the underlying carbon intensities of each sector. Additionally, we have changed to reporting sample population as a percentage of IBG exposure. 2018 figures were adjusted accordingly.

https://www.bca.gov.sg/GreenMark/breef.html

https://www.bca.gov.sg/GreenMark/breef.html

https://www.e2singapore.gov.sg/programmes-and-grants/incentives/financing-programme-for-energy-efficiency-projects

https://www.e2singapore.gov.sg/programmes-and-grants/incentives/financing-programme-for-energy-efficiency-projects

https://www.dbs.com/sustainability/reporting/green-bond-tnc



C. Financial Inclusion Why it matters Financialinclusion ismakingavailableaffordablebasicfinancialservicessuchassavingproducts,loansandpaymentservices.Accesstofinanceofferstheabilitytosaveandinvestforthefuture,enablingbusinessexpansionandreducinginequality.AccordingtoWorldBank,about1.7billionpeopledonothaveaccesstobasicfinancialservicesandthisremainsanimpedimenttoaddressingseveralSDGs.Whilstalargeportionofpeoplewithoutaccesstofinancialservicesliveindevelopingmarkets,theinabilitytoaccessbasicservicesisaglobalissue.Evenindevelopedmarketswhereaccesstofinancialservicesismorebroadlyavailable,severalfactorsimpedefullaccessespeciallyformarginalisedsegmentsofthepopulation.

ApproachWeworktoimprovefinancialinclusioninthekeymarketswhereweoperate,keepinginmindourfootprintandrelativesizeineachofthem.

Indevelopingmarkets,wedonotoperatetraditionalmicrofinancingbutincreasinglyuseourdigitalfinanceplatformstoextendourreachwhereviable.DigitalfinanceplatformsencompasstheuseoftechnologiessuchasBigData,artificialintelligence,mobileplatforms,blockchainandtheInternetofThings.Throughdigitalfinance,thecostoftransactions,acquisitionsandnetworkingprocessescannowbereducedsignificantly.Thisenablesanexpansionincustomerreachtounderservedpopulations.

Asimportantasitistoimproveaccesstofinancialproductsandservices,itisequallyimportantthatcustomersunderstandandmakeinformeddecisionsaroundtheseproductsandservices.InSingapore,weengageindividualsandcommunities,assistingthemthroughraisingawarenessandeducatingthemonfinancialplanning,andinkeepingupwithadvancementsindigitalfinance,anditsassociatedbenefits.

InitiativesCommunities,SMEsandsocialenterprises(SEs)areourkeyfocusareas.

Communitiesi. Financial inclusion enabled by digital means

a. DBS digiPortfolioAspartofoureffortstodemocratisewealthandinvestmentservices,weintroduceddigiPortfolio,aninhousehybridhuman-roboinvestmentsolution,toourretailcustomersinlate2019.StartingatalowinvestmentamountofonlySGD1,000,retailcustomerscannowinstantlygainaccesstoadiversifiedportfoliothatprovidesexposuretovariousstockmarketsandassetclasseswithnopre-qualificationnecessary.TheportfolioscomprisecarefullyselectedexchangetradedfundsandarereviewedquarterlyinalignmentwiththeDBSChiefInvestmentOffice’sviews.Wehavealsosimplifiedthefeestructure–therearenosalescharges,transactionorcustodyfees–onlyasinglemanagementfeeof0.75%perannum.Thesemeasureshaveloweredthebarrierstopersonalinvestingasitgivesinvestors asimplewaytogetinvestedsafelyandsecurelywithus.

b. Co-lending partnership with Home Credit IndonesiaWecollaboratedwithHomeCreditIndonesiatojointlyofferloansonconsumerdurablesandsmartphones.Thisstrategicpartnershipallowsustomeetthefinancialneedsofcustomers,

includingthosefromlower-incomehouseholdsthroughtheextensivedistributionnetworkofHomeCredit.SincethelaunchinMay2019,thispartnershiphasbenefittedover200,000customersinIndonesia.

c. digibank Personal LoanThroughstrategiccollaborationwithvariouspartners,welauncheddigibankPersonalLoaninIndonesia.Itoffersanin-principlecreditdecisioninlessthan60secondsforbothservedandunderservedsegmentsofthepopulations.Thisdigitaljourneycontinuestoleverageonthealgorithmiclendingandcreditscoremodelbasedontelecommunicationsdatabuilttheyearbefore.

d. POSB jollyWehavecontinuedthePOSBjollyAppwhichwascreatedespeciallyformigrantworkers,includingforeigndomesticworkers,tohaveuninterruptedaccesstobankingservicesthroughtheirmobilephones.Thisiscriticalforworkerswhoareprimarilyinroleswithlimitedflexibilitytotaketimeofftovisitbranches.TheappispartoftheMigrantWorkers’CentreandPOSBmembershipprogrammethatbringstogethervariousmerchantpartnerstoofferexclusivebenefitsandsavingstomigrantworkers.Theservicesincludeall-in-onebanking,remittance,insurancecoverage,telcoservicesandothers.

ReadmoreaboutPOSBjollyApp.

ii. Financial inclusion empowered by financial literacy

a. Smart BuddyInpreparingourchildrentobefuture-ready,wehavecontinuedSmartBuddy–theworld’sfirstin-schoolsavingsandpaymentswearableonchildren’swrists.Theprogrammeincludesfeaturessuchasfitnesstrackerhealthratereminders,goalsettingsandrewardstampstocultivategoodsavingshabits.Italsoimprovestheschoollivesofunderprivilegedstudents.Bydigitisingmealvoucherswhichwerepreviouslydistributedaspapercoupons,studentsfromlower-incomefamiliesarenolongereasilyidentified,reducingpotentialdiscrimination.

ReadmoreaboutPOSBSmartBuddy.

b. Your Financial GPSThroughtheyears,ourdigitalfinancialadvisorprovidestailoredtipsonhowtomanagecustomers’finances.Basedoncustomers’financialhealth,itwillprovideinsightsandpersonalisedsuggestionstoenablebetterfinancialdecisionsonthego.Atthesametime,thedigitaladvisorcanassistcustomersincheckingtheirspendingacrossmultiplecategories,setbudgetsandoptimisetheirfinancesaccordingtofinancialplanstheyhavesetout.

ReadmoreaboutYourFinancialGPS.

c. The Burrow and POSB ParentsWelaunchedtwoonlinecommunitiesinclosedFacebookgroupstoprovideasafetwo-wayinteractionchannelwithcustomers.TheBurrowandPOSBParentsservetoempowerinterestedcustomerstomakeinformeddecisionsthroughincreasedaccesstoresourcesrelevanttotheirfinancialneeds.Throughstructuredthemesandengagement,wefocusongivingvaluetoourcommunitymemberswhilebuildingagenuineandtransparentrelationshipforthelongterm.

ReadmoreaboutTheBurrowandPOSBParents.

iii. Financial inclusion with conventional financial products

a. Women Livelihood Bond 2 (WLB2)WesupportedImpactInvestmentExchangeonitsUSD12millionWLB2.TheproceedsofWLB2willbeusedtocreatesustainablelivelihoodsformorethan250,000underservedwomenacrosstheAsiaPacific.

b. Korea Housing Finance Corporation (KHFC)Duringtheyear,weagainsupportedtheKHFCtoissueitssecondsocialcoveredbond.Theraisedamountfinancesmortgageloansformoderatetolow-incomehouseholdsintheirfirsthomepurchase.

c. Retail bond marketAspopulationages,theabilityforawiderspectrumofsocietytohaveaccesstofinancialproductsforinvestmentmanagementandretirementplanningbecomesincreasinglyimportant.AsaleadingbondarrangerinAsia,wehavebeenworkingtodeveloptheretailbondmarketinSingapore.ThroughourexpansiveinternetbankingandATMplatforms,wehelpedtoavailmoreretailbondinvestmentopportunitiestoourretailcustomers.

SMEsAsadata-drivenorganisation,weworkedwithSMEclientstoharnessthepowerofdatatodeliverrelevantandtimelysolutions.Inaddition,wetargetedthegrowingstartupcommunity,mainlySMEs,bydevelopingtailoredsolutionssuchasthe‘StartupUnleashed’toolkit.Itoffersacomprehensivesuiteofbankingandprofessionalservicestotheoftencashtightsegmentatnocost.OurSMEportfoliohasmorethan220,000customersin2019andthisisagrowthofabout8%since2017.

Throughourparticipationingovernmentschemesinsomemarkets,wealsoenableawidersegmentofSMEstoaccessfinancing.Theseschemesinclude:• SingaporeEnterpriseFinancingScheme(EFS),aschemedesigned

tosupportSMEs’financingrequirementsthroughouttheirvariousstagesofgrowth

• Directloansandadvancestosmallscalebusinessandpromote theagendaonaccesstofinanceinIndonesia

• TaiwanSMEsCreditGuarantee(SMEG)Fund,whichassistsSMEs insecuringfinancingfromfinancialinstitutions

• Prioritysectorlendingtocriticalsectorslikeagriculture,micro andSMEsandothers,inIndia

Social enterprises (SEs)DBSSocialEnterprisePackagewasdesignedtoaddresstheneedsofsocialenterprises.Underthispackage,qualifiedapplicantsareofferedfinancingsupportwithloanprocessingfeewaiversandloweredinterestedratesformoreinclusivity.In2019,597SEsbenefittedfromthesetailoredbankingpackages.

InbuildingsociallyimpactfulSMEsoftomorrow,wehavealsopilotedamentorshipprogrammewhereourseniorRMsserveasmentorsandhelpSMEswithbusinessandmarketinsights.Additionally,SEsregisteredandoperatinginoursixkeymarketsmayfurtherapply forDBSFoundationSEGrants.

Readmoreabout“Socialentrepreneurship”onpage36.

OthersWepartnerandcontributetotheSustainableDigitalFinanceAlliance(SDFA)andtheUNSecretary-General’sTaskForceonDigitalFinancingoftheSDGs(DFTF).Webelievetheknowledgesharedthroughthoughtleadershipsupportsfinancialinstitutionstoharnessdigitalisationfor

sustainabledevelopment.Wecommissionedareport“SustainableDigitalFinanceinAsia”togetherwiththeSDFAandUNEnvironmentinNovember2018.Thereportsetsoutsixkeyrecommendationsforbankstoconsiderengaginginarapidlydigitalisingworld.Itcontributedasresearchmaterialtoaprogressreportentitled“Harnessingdigitalisationinfinancingofsustainabledevelopmentsgoals”releasedbyDFTFinSeptember2019.AfinalreporttotheGeneral-Secretary,withDBSasacontributor,willbeissuedin2020,andwewillstudytherecommendationstounderstandhowwecanbettercontributetofinancingSDGsdigitally.

StatusSincethelaunchofdigiPortfoliofortheretailmarket,40%ofdigiPortfoliocustomershavemadeaninvestment-relateddecisionthroughusforthefirsttime.

Asof31December2019,ourtotallendingtoSMEswasSGD37.2billion.Morethan16,000SMEaccountsopenedwerecreatedthroughourdigitalservicesin2019.ThetotalamountofoutstandingloanstoEFSandSMEGschemeswereapproximatelySGD950millionand SGD549millionrespectively.

RegardingSEs,aboutSGD2.34millionofcommittedunsecuredloanswasgrantedasatyearend.

TargetsWeaimtogrowourSMEcustomerbaseby10%by2025.

Wewillcontinuetoinvestindigitaltransformationbystrengtheningecosystempartnershipsandsimplifyinge-transactionstoaccessible,affordableandsustainablefinanceforourcustomers,andunderservedpopulations.

Atthesametime,wewillenhanceeffortsinraisingawarenessandeducatingthecommunitieswhereweoperateinonfinancialliteracy.

Case study

DBS conducted financial literacy workshops for foreign domestic workers

IncollaborationwiththeCentreforDomesticEmployeesandtheSingaporePoliceForce,weconductedfinancialliteracyworkshopsforforeigndomesticworkers(FDWs)toempowerthemwithknowledgetomakeinformedfinancialdecisions.Withtheenablingofbankaccounts,weencouragedthemtoconsiderfinancialplanningandtobeawareoffinancialscamsandillegalmoneylending.Inaddition,employeevolunteersfromDBSPeopleofPurposewereengagedtobefacilitatorsforourworkshops.Throughtheinteraction,ouremployeessharedtheirknowledgeandskillsandgainedinsights intotheFDWsegment.

https://www.dbs.com.sg/personal/investments/other-investments/dbs-digiportfolio

https://www.posb.com.sg/personal/deposits/for-foreigners/services-for-work-permit-holders

https://www.posb.com.sg/personal/deposits/bank-with-ease/posb-smart-buddy

https://www.dbs.com.sg/personal/deposits/digital-services/your-financial-gps

https://www.dbs.com.sg/personal/the-burrow.page

https://www.dbs.com/sustainability/insights/sustainable-digital-finance-in-asia

https://www.dbs.com/sustainability/insights/sustainable-digital-finance-in-asia

https://digitalfinancingtaskforce.org/wp-content/uploads/2019/09/Task-Force-CoChair-Interim-Report.pdf

https://digitalfinancingtaskforce.org/wp-content/uploads/2019/09/Task-Force-CoChair-Interim-Report.pdf



D. Fair dealingWhy it matters Ourcustomerstrustustoputtheirinterestfirstwhenweconductbusinessandinteractwiththem.Webelieveinprovidingrelevantinformation,qualityadviceandappropriaterecommendationstohelpcustomerswiththeirfinancialplanning.Thisiswhyfairdealingisthefoundationofourbusiness.Wecontinuetofocusondoingtherightthing,soastoconsistentlydeliverfairdealingoutcomesforourcustomers.

ApproachOurboardandseniormanagementsetthetonefromthetoptoinculcateastrongcultureoffairdealingandacrossDBStoensureweoperateinanethicalandsoundmanner.Wearecommittedtodealingfairlywithourcustomersby:i. Respondinghonestlytoourcustomers’needsandrequests;ii. Tailoringappropriatefinancialoutcomesforourcustomers;iii. Deepeningcompetenciesofourfinancialadvisors;andiv. Communicatingwithourcustomersinaclearand

transparentmanner.

TheGroupFairDealingandConductCommittee(FDCC),whichischairedbytheCEO,overseesfairdealingmattersacrosstheGroup.Aspracticesonfairdealingandsuitabilityareinextricablylinkedwithconduct,conductandriskculturewereaddedtothemandateoftheFDCCsince2018.

Metricsonfairdealingandconductaretrackedandmonitored.Actionsarealsotakeninresponsetoincidentsortrendstoensuredeliveryoffairdealingoutcomes.TheFDCCsubmitsreportstotheBoardRiskManagementCommitteeonaquarterlybasistokeeptheBoardapprisedoftheeffectivenessofstrategyindrivingfairdealingandgoodconduct.

InitiativesBesidesstatisticalreportstobothFDCCandtheBoardRiskManagementCommittee,thematicreviewswereintroducedthisyeartobroadenthescopeofoversight.Specifically,productriskratingwasreviewed.TheFDCCwasbriefedontheGroupmethodologyandenhancementsmadetorationaliseandstreamlinetheratingcategories.

Whilewerewardouremployeesforprovidingcustomerswithamazingexperiences,wecontinuallyreviewourperformanceevaluationandsalesincentiveframeworkstoensurealignmentofemployeeincentiveswiththeinterestsofourcustomers.Asanexample,cancellationofinsurancepolicieswithinthefreelookperiodwasincludedasametricinourrepresentatives’balancedscorecard.

Wecontinuallyrefineandimproveourfinancialadvisoryprocesstosafeguardtheinterestofourcustomers.In2019,weenhancedthecustomerinvestmentprofilingframeworkbyintroducinganew“no-risk”profile,toidentifycustomerswithnoriskappetiteandwhodonotwishtobeexposedtoinvestmentrisk.Additionalcontrolswereimplementedtoensurethatproductswhichareexposedtoinvestmentriskarenotmarketedtosuchcustomers.

Ourcommitmenttocustomersdoesnotendwiththepurchaseof aproductbutextendstothecustomersholdingit.Forexample,

weworkedwithaninsurancepartnertoenhancethemonthlystatementsforinvestment-linkedpolicies,sothatourcustomerscouldbetterunderstandthevarioussub-fundactivitiesandchargesincurredforthemonth.

StatusTherewerenomaterialinstancesofnon-complianceconcerning fairdealingduringtheyear.Substantiatedfairdealingcomplaintsacrosstheregiondecreasedbyone-thirdcomparedtoayearago.

TargetsWecontinuetofocusonsupportingouremployees’effortsto dealfairlywithallcustomers.Importantly,weaimtomaintain zeromaterialinstancesofnon-complianceinfairdealing.

Case studySignificantregulatorychangeswereintroducedtotheAccreditedInvestor(AI)regimeinSingaporethisyear.Thekeychangesincludedtheintroductionofanewopt-inprocessforAI-eligiblepersonsorentitiestoagreetobetreatedasanAI,andanopt-outprocessforexistingcustomerstooptoutofAI-status.

EligibleinvestorsthatqualifyasAIsmaychoosetobetreatedasretailinvestorstoenjoygreaterlevelsofregulatoryprotection.Conversely,suchinvestorsmayoptforAIstatusinordertoavailthemselvestoawiderrangeofinvestmentproducts,whileforgoingcertainregulatoryprotectioncomparedtoretailinvestors.

TobetterequipcustomersontheirrightsandsafeguardsaccordedunderthenewAIregime,welaunchedacomprehensivecustomeroutreachplanthroughvariouschannels.Wesentexplanationletterstocustomers,includedFAQsonourwebsiteandconductednumeroustrainingsessionstobuildthecapabilityofrelationshipmanagersinhelpingcustomersnavigatetheregulatorychanges.Inaddition,wekeptcustomercommunicationmaterialsclearandnon-legalistic,highlightingtherequirementstoqualifyasanAIandensuringthattherisksandtrade-offsofeachoptionareclearlydisclosed.Thesemeasureshelpedtominimisedisruptiontocustomersandfacilitated asmoothtransitiontothenewregulatoryregime.

E. Cyber securityWhy it matters Cybersecurityisoneofourkeyriskconcernsaswecontinuetopushthedigitalisationofbankingservices.Thisincludestheprotectionofoursystems,applicationsandthesafeandsecuredeliveryofinternetaswellasmobileeServices.Together,theyarevitalinsecuringourcustomers’assetsandensuringthecontinuedtrustofourcustomers.

Aseconomicactivitiescontinuetomigrateonline,cybercrimeanddigitalfraudwillcontinuetopropagatevianewformsofmalware,sophisticatedcyberfraudschemesandinnovativecyberattackmodusoperandi.Inresponsetothegrowingthreat,wehavedefinedcybersecurityasadedicated“EnablingPlatform”(13)tocreatea one-stopcompetencycentreforallrelatedmatters.

ApproachWearecommittedtoupholdingourcustomers’trustbyprotectingtheirassetsandpersonaldata.Wemonitordevelopmentsincybersecurity,andleverageoninnovativesolutionstomitigateexisting andemergingcyberthreats.

Wehavedevelopedthefollowingframeworkandpolicytooperationaliseourcybersecurityprogramme:i. Cyber Security Risk Management Framework

Includesthekeycontrolstoanticipate,prevent,detectandrespond tocyberattacksandincidents,underpinnedbyriskappetite.

ii. Group Information Security Policy Outlinesbroadprinciplesonhandlinginformationinelectronic andphysicalmedia,aswellasdealingwithexternalandinternalcyberthreats.

Inaddition,weworkedwiththeMonetaryAuthorityofSingaporeandtheAssociationofBanksinSingapore(ABS)toaddressthecontagionriskofacyberattackinviewoftheinter-dependencyofthefinancialsystem.In2019,weworkedwithindustrystakeholderstodesignandparticipateinanindustrywidecybersecurityincidentresponseandbusinesscontinuityexercisetotesttherobustnessofouroperationalprocessesagainstcyberattacks.Atthesametime,wehaveengagedPricewaterhouseCooperstoassessthecoverageandmaturityofourcybersecurityprogramme,andcybersecuritysubjectmatterexpertsfromUKtoconductadversarialattacksimulationtotestthedepthofourcybersecuritycontrols.

Ascybersecurityriskcutsacrossalllinesofbusiness,weprovideregularupdatestoourriskcommitteesincludingtheGroupOperationalRiskCommittee,RiskExcoandBoardRiskManagementCommitteetokeepthemabreastofthekeydevelopmentsinthecyberthreatandregulatorylandscapes,cybersecurityeventsandincidentsaffectingandkeyinitiatives.

InitiativesIn2019,wecontinuedtoworkonourpeople,technologyandprocesstoimproveourcyberresilienceholistically.Regardingpeople,weenhancedtherecruitmentprocessofnewcybersecurityhires,withtheintroductionofhackathonstoadditionallytestthecandidates’aptitudeandproblem-solvingskills.Wealsoincreasedthecybersecurityawarenessofemployeesviathegamificationofcybersecuritytrainingandongoingphishingexercises.Wefurthertrainedemployeesintechnologyroles,whoareresponsibleforthemanagementandsupportofourcriticalsystems,incybersecurityincidentdetection,escalationandreporting.Inviewofthespikeinonlineandmobilescams,wealsoincreasedthefrequencyofoursecurityadvisoriestoemployeesandcustomerstoraiseawareness.

Atthesametime,wecontinuedtoimplementnewsecuritysolutionssuchasinternetseparationtechnology,contentdisarmandreconstructiontoreduceoursurfaceofattackandprotectouremployeesfrommalwareandothercyberthreats.Newsecuritymeasuressuchasendpointdetectionandresponses,databaseprotectionandnetworkmicro-segmentationtechnologieswere alsobeenimplementedtoprotectourcriticaltechnologyassets.

Ontheprocessfront,weimplementedsecurityorchestrationandautomationtostreamlineandimprovetheefficacyofourcybersecurityincidentresponsecapabilities.WeincorporatedtheSecurity-by-Designframework,issuedbytheCyberSecurityAgency ofSingapore,inoursystemdevelopmentprocesses.

Whilewecontinuetostrengthenourinternalcontrols,theinterdependencyofthefinancialsystemandthecontagioneffectofcyberrisksrequireaconcertedindustryapproachtopreservetrustinthefinancialsystem.Tothatend,wecontributedwidelytonationalandindustrycybersecurityinitiatives.TheseincludedthedevelopmentofcybersecuritystandardsandguidesforthefinancialindustriessuchasABSCloudImplementationGuide,andAdversarialAttackSimulationExercisesguidelines,andcyberattacktechniques.Wealsoprovidedscholarshipandmentorshipforthedevelopmentofcybersecuritytalentfortheindustry,andconductedcampaignstopromotecybersecuritywellnessforourcustomersandmembersofpublic.

OureffortsandcontributionswererecognisedbytheAssociationofInformationSecurityProfessionalsandCybersecurityAgencywith theCybersecurityAwards2019.

StatusTherewerenomaterialinstancesofcustomerdatalossduringtheyear.

In2019,wedeliveredageneralsecurityawarenessprogrammetomorethan24,000employeesviaourInformationSecurityeLearningPlatform,andatargetedsecuritytrainingtothesystemadministratorsresponsiblefortheBank’scriticalsystemsandapplications.TheseannualtrainingprogrammeswerefurtheraugmentedwithCybrFIT,ourgamifiedsecurityawarenesstraining,whichdeliversup-to-datesecurityadvisoriesandbite-sizedtrainingonemergingandprevailingcyberthreats.

TargetsDBSadoptsazero-tolerancemindsetforoperationalrisk,includingcybersecurity.

Wewillcontinuetostrengthenourcybersecuritycapabilitiestoprotectourdataandmaintainhighsecurityhygieneinourtechnologicalenvironment.Wewillalsocontinuetomonitorthelandscapeforcyberthreatsandenhanceourprotectivetechnologiesandcyberincidentresponsecapabilities.

Case studyDBSparticipatedinthecomprehensivereviewofdatasecuritypracticesacrosstheentirePublicServiceaspartofthePublicSectorDataSecurityReviewCommittee(“theCommittee”).Thisincludedreviewingthepublicsectoragencies’andtheirvendors’measuresandprocessesinthecollectionandprotectionofcitizens’data,recommendingtechnicalimprovementstothegovernment’sprotectionofcitizens’data,anddevelopinganactionplanofimmediatestepsandlongertermmeasurestoimplementtherecommendations.

AlltherecommendationsbytheCommitteetosecure,usedataanddigitalsolutionstodeliverbetterservicesandpoliciesforSingaporeansareacceptedbytheGovernment.

(13) Enabling platforms are platforms that are not aligned with a business unit, provide scale benefits through consolidation, safeguard the bank by defining appropriate guardrails and enable business and enterprise platforms to deliver business outcomes



F. Data governance Why it matters Increasingintensificationofdatacollectionandusenecessitates adeepersensitivitytowardsdatagovernanceanditsdeployment. Anydatabreachorlossincidenthasthepotentialtocauseirreparabledamagetoacompany’sreputation.InDBS,webelievethatitisourresponsibilitytohonourthefoundationsoftrustgiventous.

Regulatoryguidanceandexpectationsintroducedaroundethicalandresponsibledatausehavealsospurredustocontinuallyfine-tuneourexistingriskmanagementframeworksandpractices.Wehavesharpenedourfocustowardsdatasecurityandtocontinuekeepingdatasafeandprotectedwhilebalancingwiththeneedtoenablegreateraccesstodataforouranalyticsgroups.

ApproachWefocusontheresponsibleuseofdata,whilstensuringthatregulatoryregimes,includingcustomer’sconsent,remainfullycompliedwith.OurResponsible Data Use frameworkcomprisesconsiderationsfrommultipledisciplineswithspecificfocusondata,cyberandcompliance.Thisholisticapproachensuresthatwewillcontinuetobuildstrongfoundationsandaccountablepractices intheareasofdataquality,securityandcompliance.

Additionally,wehavethefollowingpolicies:i. Data Management Policy

Providescontroloverdatacollection,quality,transferandretention.ii. Privacy Policy

Definesourinternalpolicyonpersonaldataprocessing. Itrepresentsourpromisetoprotectandmanageour customers’personaldatainaresponsiblemanner.

Inaddition,ourEnterprise Data Security Framework (EDSF) addressesdatasecuritythroughoutourecosystem,encompassing fourdistinctlayers:dataprotection,access,isolationandsurveillance.Theframeworkaimstobalancebroadeningtheavailabilityofdata,whilstreducingtherisksurfacearea.

InitiativesWithsomanydatapoints,astronggovernanceframeworkisnecessarytobeputinplace.WedevelopedthePUREprinciples(Purposeful,Unsurprising,RespectfulandExplainable),amulti-facetedassessmenttovalidatethattheuseofdatawillbedone inaresponsibleandaccountablemanner.

During2019,wealsobuiltthefoundationalcapabilitiesofEDSF. Inparticular,akeyenablerwastoincreaseourawarenessofthedatawearebringingintoournewEnterprise Data Platform,byestablishinganactivegovernanceprocesstoclassifythesensitivityofthedata(Metadata),bythegroupswhounderstandwhatthedatarepresents.

Data protection:Inenablingbroader,targetedaccesstodata,wehavetakenastepfurtherbygoingdeeperintoeachdataattribute(asguidedbytheMetadata)andprotectingthemaccordinglybasedonsensitivityclassification.AsdataisbroughtintotheEnterpriseDataPlatform,eachsensitiveattributeisautomaticallyprotectedbyutilisingdataencryptionortokenisationmethodsbeforeitisstored.Thisresultsinourmostsensitivedatabeingprotectedbydefaultandsimplifiesdataaccessforouranalyticsgroup.

Data access:WeintroducedanEnterprise Data CataloguetostoreMetadata,includingdetailsofdatasets,theircharacteristicsandsensitivityclassifications.Thisincreasedthevisibilityofthedataandenabledteams

todiscoverdataforuseinanalyticsinitiativesandwheretheycouldbesourced.AData Access for Analytics Standardwasfurtherestablishedtosetoutclearstandardsonwhatdatacouldbesharedforanalyticspurposeswithintheinternaldatalandscape.Underpinningtheseistheabilityforadvanceddynamicprovisioningofdatawhichisbasedonrulesandrolestoreducetimetodatawhilestillensuringthattheemployeeonlyviewsdatathatmatchestheirassignedpersonas.

Data isolation:Tobalancethebroadeningofaccesstolargeramountsofdataforanalyticgroups,weintroducedgreatercontrolsaroundthephysicalaccesstothedata.Analyticsemployeesnowaccessthedatathroughaspecialiseddataisolationlayer,whichprovidesacontrolledenvironmentforthemtoworkwithin.Movementofdataoutsideofthedataisolationlayerisstrictlycontrolledandcanonlybemovedthroughaspecificchannelthatisactivelymonitoredbythedatasurveillancelayertoensureitsvalidity.

Data surveillance:Thefinalpieceofthedatasecuritypuzzleistoleveragethemonitoringofdatausethroughactivesurveillance,inordertoidentifyandactuponanyunusualbehaviour.Thisutilisesadvancedanalyticscapabilitiestosingleoutunusualcasesfromthosethatarevalid.

Onexternalcontribution,ourCEOPiyushGuptaisacouncilmemberoftheSingaporeInfoCommMediaDevelopmentAuthority(IMDA)AdvisoryCouncilontheEthicaluseofArtificialIntelligenceandData.TheadvisorycounciladvisesandworkswithIMDAontheresponsibledevelopmentanddeploymentofArtificialIntelligence(AI)andisanexampleofaprivate-publicrelationshiptoenableaDigitalEconomy.Wearealsoproactivelyparticipatingandsharingourperspectivesondatagovernanceandresponsibledatauseinvariousindustrydiscussions,consultationsandthink-tanksessions.Topicsdiscussedspanacrossdataportability,businessinnovation,andAImodelgovernance,amongothers.

StatusTherewerenomaterialinstancesofcustomerprivacybreaches duringtheyear.

In2019,weimplementedDBS’ResponsibleDataUseframework todeliverourdata-drivenagendabyprovidingaclearand actionableframework.

WealsoimplementedthefoundationofDBS’EnterpriseDataSecurityFrameworkandhavemanagedtocutdownthetimeofthelastmileforouranalyticsgroupstogainaccesstodatafromseveralweekstodays.

WestrengthenedourdataprotectioncontrolstopreventinadvertentandintentionalattemptstoexfiltratedatafromtheBank’senvironment.Weimplementedemailpromptstoalertuserssendingemailtoexternalrecipientstominimiseaccidentalinformationdisclosure.Ourdatalossmonitoringcapabilitieswasfurtheraugmentedwithmachinelearningandnaturallanguageprocessingtoidentifyandescalatehighriskemailconversationsforfurtherinvestigation.MachinelearningwasimplementedtomonitortheuseoftheBank’ssystemsandapplicationsforanomalousbehaviouranddetectpotentialmisuseofcustomerinformation.

TargetsIn2020,wewillcontinuetodevelopandbolsterourAImodelgovernanceframeworkaswebelievethiswillengendergreaterreassuranceandconfidenceinourAImodeldevelopment.Wewillalsokeepabreastofchangingbusiness,operatingandregulatoryclimatestocontinuallyseekoutlearningopportunitiesandimprovementstoourresponsibledatauseandrespondto theirevolvingprivacy-relatedlawsandregulations.

ForEDSF,wewillcontinuetomovetoamodelwherebyouranalyticsgroupswillnolongerneedtoexplicitlyrequestaccesstospecificdatasetsbutwillhavepre-approvedaccesstoanyneworexistingdatasetsthatmatchesthepersonastheyareassignedto.Thisinturnwillhaveanoveralleffectofreducingthetimeittakestorollout newinnovativeproductsandservicestoourcustomers.

Case study

Singapore Infocomm Media Development Authority’s (IMDA) Data Protection Trustmark

Asof31October2019,DBSremainstheonlybankinSingaporetobecertifiedwithSingaporeInfocommMediaDevelopmentAuthority’sDataProtectionTrustmark(DPTM)andisactivelyparticipatinginIMDA’soutreachtopromoteDPTM,includinghostingindustrysessionstoshareourDPTMcertificationjourney.Westronglyupholdtheethosthattrustiscriticalinanyorganisation’sdatajourney,andtheDPTMrepresentsaresolutecommitmenttosafeguardthetrustgiven.

G. Preventing financial crimeWhy it matters Preventingfinancialcrimeactivitiesisoneofmanyfirststepsinhelpingusconfrontmultiplesocietalissues.Everyyear,theestimatedamountofmoneylaunderedisaboutUSD800billiontoUSD2trillion(14)globally.Thisincludesproceedsfromforcedprostitution,terrorismanddrugtrafficking,whicharelaunderedthroughtheworld’sfinancialmarketsandbankingsystems.

Globally,theFinancialActionTaskForcewasestablishedin1989todevelopandpromotepoliciestoprotecttheglobalfinancialsystem.Closertohome,wearemembersofprivate-publicpartnershipssuchastheAnti-MoneyLaundering/CombatingtheFinancingofTerrorism(AML/CFT)IndustryPartnershipthatdevelopactivestrategiesformemberstocollaborateandnavigatetheincreasinglycomplexenvironment.

ApproachCorruptionandfinancialcrimesarenotnew.Whatisnewistheincreasingsophisticationofcriminalstododgescreeningcontrols andinventnovelwaysofusingtechnologytoscamcustomersandfacilitatemoneylaundering.

AtDBS,weinvestheavilyinourdataanalyticsandsystemscapabilitytohelppreventfinancialcrimeandthesocialharmthatitbrings.Wecombinethiswitharobustcontrolframeworkthatincludesriskgovernanceandenforcementofbank-widepoliciesandproceduresaroundAML,CFT,sanctions,fraud,andbriberycorruption.

Wearecommittedtoconductingbusinessinaccordancewithallapplicablelaws,rules,regulationsandthehighestethicalstandards.ThiscommitmentisembodiedinourCodeofConduct.

Tous,financialcrimeincludesmoneylaundering,terroristfinancing,proliferationfinancing,sanctionsevasion,fraud,briberyandcorruption.Ourgovernanceframeworkconsistsofthefollowing:i. Anti-Bribery and Corruption Policy and Standard

Encompasseselementsofriskassessment,controlsandmonitoring,duediligence,rulesovergiftsandentertainment,andreporting.Alltheseareunderpinnedbyseniormanagementcommitmentandcommunication.Specifically,briberyandcorruptioncantakemanyformsincludingtheprovisionoracceptanceofpoliticalcontributions,charitablecontributions,kickbacksandothers.Underouranti-briberyandcorruptionprogramme,wedonot makeanypoliticalrelatedcontributions.

ii. Anti-Fraud Policy and Standard Includeselementsofreportingandanalysis,identificationandassessmentoffraudrisks,fraudcontrolsandmonitoring,investigationandremediation,allofwhichareunderpinned bystrategy,governanceandculture.

iii. AML, CFT and Sanctions Policy and Standard EstablishesbaselinerequirementsonKnowYourCustomer/CustomerDueDiligence.Thisincludesdigitalnon-face-to-faceonboardingrequirementsandcontrols,identificationandriskmanagementofhigherriskcustomerssuchaspoliticallyexposedpersons,andrecordretentionobligationsoffiveyearsataminimumorthestricterrequirementofapplicablejurisdictions.Italsodefinesminimumstandardsinwhichthebankanditssubsidiariesmustcomplywiththeserequirementstomeettheapplicablesanctionslawsandregulationsinwhichweoperate.

Fromagovernanceperspective,theFinancialCrimeandSecurityServicesteamisresponsibleforandoverseesthefinancialcrimecomplianceactivitiesfortheGroup.Inaddition,theGroupOperationalRiskCommitteeregularlyreviewsreportsonfinancialcrime,andmaterialissuesareescalatedtotheRiskExecutiveCommitteeand totheBoardRiskManagementCommittee,ifnecessary.

Anyemployeewhocontravenesthesepoliciesandstandardsmaybesubjecttoinvestigationanddisciplinaryactionuptoandincludingterminationofemployment.Suchincidentsmayalsobeescalatedtotheauthoritiesandleadtoprosecutionofthepartiesinvolved.

InitiativesOuranti-financialcrimecultureincludesatrainingandawarenessprogrammewithassociatedactivities.Everyemployeeisexpectedtorecognisefinancialcrimeandisempoweredtotakethenecessaryactionstomitigatesuchrisks.Tothatextent:i. AllouremployeescompletemandatoryAMLtrainingannually;ii. AllnewemployeescompletemandatoryAML,anti-briberyand

corruptiontraining;andiii. AllemployeesreadandacknowledgeourCodeofConduct

annually,whichcontainsourstanceonanti-corruption.

Wehavetakenadvantageoftechnologicaladvancementstoenhancebothoursystemsandartificialintelligencecapabilitytoboostourriskmonitoringanddetectionprogrammes,andtoprepareusforemergingrisks.Theresultofourrecenteffortsisevidencedbythesignificantyear-on-yearincreaseinthenumberofsuspiciousreportsfiledinSingapore.

Customer Regional Unified Surveillance Enterprise platform In2019,weunveiledanin-houseintelligentcasemanagementsystemtostrengthenourtransactionsurveillanceteamintheirreviewofsuspiciousactivitiesflaggedbysystemsorfrontlineemployees.

(14) Source: United Nations Office on Drugs and Crime https://www.unodc.org/unodc/en/money-laundering/globalization.html

28Pillar 2: Responsible business practices27 DBS Sustainability Report 2019


WeusedRoboticProcessAutomationtechnologytoaggregatedatafrommultiplesourcesforourinvestigatorstohaveaholisticviewofcustomerinformationandtransactionalactivities.Thisacceleratestheirabilitytodeterminewhethertheunusualbehaviourswarrantreportingtotheauthorities.Post-deployment,ouranalyststripledthepercentageoftimespentinvestigatinggenuinecasesasonerousmanualprocesseswereeliminatedthroughback-endautomation.Meanwhile,wecontinuetoaugmentourdatacapabilitiestofacilitatethefuturedevelopmentofanalyticalmodelsthatcandeteranddetectfinancialcrime.

Network link analysis Moneylaunderersandterroristnetworksareincreasinglysophisticatedinthemethodstheyusetoconcealtheirtransactionsandactivities.Inresponse,webuiltlinkanalysiscapabilitytovisuallyrepresentconnectionsbetweencustomersandcounterparties,flowoffunds, andtouncovercomplexandhiddennetworks.Thisnewwayofworkingenhancesourdetectioncapabilityfromtransactionandaccountlevel,toincludecustomerandnetworkleveldetection.Weappliedthistocompaniesusingtypology-baseddataanalyticsandourworkwasfeaturedbyMonetaryAuthorityofSingapore(MAS)asaneffectivemechanismtodetectandmitigatetheriskofmisuseoflegalpersons.

Machine learning Tocomplementourinfrastructure,wehaveinvestedinhumancapabilitiestoleverageontheproliferationofdataandtotransformthesereliablyintosignals.

Ourdatascientistsdevelopedmachinelearningmodelsthatcanprioritisesystemalertsbasedonriskandlikelihoodofmoneylaundering.Asaresult,ourinvestigatorscanfocusonreviewinggenuinealerts,whilstadifferentsetofmachinelearningmodelsmanagefalsepositives.Furthermore,weintroducedmodelsthatdetectnewandemergingthreatsbasedonspecifictypologies.Thesemodelsflagoutunusualactivitiesoverandabovethosegeneratedbyourmonitoringsystems.

Dynamic review assessment Applyingdefaultpolicystandardsincategorisingcustomersas‘highrisk’canleadtorevieweffortswithlimitedeffectiveness.Meanwhile,clientswhoaretaggedas‘lowrisk’mayalsopresentindicatorsdeservingscrutiny.WeintroducedaDynamicReviewAssessment(DRA)process,whichthroughourregulardataanalyticsvalidationonourcustomersandfacilitatedwithdesignatedriskscenarios,willgeneratetimelyandriskfocusedtriggerreviews.DRAhelpsustoconcentrateourresourcesonidentifyingcustomerriskearlyinthegame,whilstreducingunnecessaryinconveniencefacedbyourlargelygoodandlaw-abidingcustomers.

Ongoing awareness and training Webelieveinequippingouremployeeswiththerelevantfinancialcrimeknowledgeandcontinuetoinvestinmandatorytrainingandawarenessprogrammes.Everyemployeeisexpectedtorecognise,preventanddetectfinancialcrimetotheextentpossible.AllouremployeesmustcompletebothAMLandCodeofConductrefreshertrainingannuallyandattesttoit.

StatusAtDBS,oursurveillanceinfrastructureandpeoplecapabilitiesarebuiltandtrainedaroundadata-drivenandinnovationculture.Thisensuresweareeffectiveincombatingfinancialcrimeriskswhileadaptivetothenovelandemergingmethodsusedbysophisticatedcriminals.

In2019,therewerenomaterialinstancesofnon-compliancewithlawsandregulationsinthecontextoffinancialcrime.

InlinewithourAnti-BriberyandCorruptionprogramme,wedonotmakeanypolitical-relatedcontributionsinvolvinglobbying,campaignsandothers.

TargetsWherefeasible,wehavedevelopedandarecommittedtodeployingournewesttechnologiestoallmarketsthatweoperatein.

Wehavezerotoleranceforanyactsofbribery,corruptionandfraud,andwillcomplywithapplicableAML,CFTandunilateralordomesticsanctionslawsandregulationsinthejurisdictionsinwhichweoperate.

Case study

Speak Up whistleblowing programme

“SpeakUp”isthewhistleblowingprogrammeimplementedbythebank.Toprovideasafeenvironmentforgenuineconcernstoberaisedonpossiblemisconduct,theprogrammeoffersvariouschannelsforwhistleblowing,includinganindependenthotlinemanagedbyDeloittewhichoffersanonymityuponrequest.Anyincidenceswouldbedulyandindependentlyinvestigatedforappropriatefollow-upaction.Wedonottolerateanyreprisalswhendisclosuresaremadeingoodfaith.

H. Talent management and retention Why it matters HarvardBusinessReviewfeaturedDBSamongthetop10businesstransformationsofthedecade.Thistransformationwasbuiltontherelentlessfocus,commitmentandsupportofouremployees.Employeesareourkeyassetsandourlong-termsuccessdependsonthem.Increasingly,wearecompetingwithtraditionalsectorpeers,technologyfirmsandstartups.Itisthereforeimperativethatweremainasanemployerofchoicetocontinuallyattract,retainanddeveloptalent.

ApproachOurholisticapproachtoemployeedevelopment,engagement andretentionisanchoredonthreekeypolicies:i. Resource Management Policy

Coversrecruitment,onboardingandseparation.ii. Remuneration Policy

Outlinesthekeyremunerationandriskmanagementprinciplesforcompensationandbenefits.TheyarealignedtotheFinancialStabilityBoard’sPrinciplesforSoundCompensationPracticesaswellastheCodeofCorporateGovernance.

iii. Learning and Talent Development Policy Providesthe“Triple-E”frameworkcoveringExperience,ExposureandEducationtoguidecontinuousemployeedevelopment.

WehaveadoptedtheTripartiteStandardsbytheTripartiteAllianceforFair&ProgressiveEmploymentPractices.Theyareasetofeightstandardsthatcovervariousaspectsoffairrecruitmentpractices,flexibleworkarrangement,grievancehandlingprocesses,agemanagementandothers.

InitiativesInstrengtheningthebank’sculture,werefreshedthe12PRIDE!behaviourstoarticulatedesiredemployeebehaviours.Adual-ratingsystemwasintroducedtoemphasisethe“How”inadditiontothe“What”inemployees’performancereviews.Inaddition,periodichalf-yearlyandend-of-yearreviewswerereplacedbyongoingreviewstoencouragemoremanager-employeeconversationswhichinturnsupportgrowthandperformance.

“AnytimeFeedback”wascreatedforemployeestoseekandreceivefeedbackfortheirongoinglearningandimprovement.SinceitslaunchinJuly2019,over12,000feedbackmessageshavebeenreceived.

Aswecontinuedtodeepenourcapabilitiesasalearningorganisation,weworkedtobuildacultureofsociallearningwhereemployeesactivelycontributedtosharingandteachingeachother.Todate,wehavemorethan1,000subjectmatterexpertscertifiedasin-houseteachers.WealsolaunchedthemobileversionofLearningHub,ouronlinelearningplatform,toavaillearninganytimeandanywheretoouremployees.

Ensuringcareerresilienceofouremployeesisapriorityforus.Inourreskillingandupskillingefforts,wetrainedmorethan1,100employeesundertheProfessionalConversionProgrammetoenhancetheirpersonalchangeagilityandequipthemwiththenecessarydigitalskillstooperateinadigitalworld.Forexample,wehaveprogressivelyreskilledourCustomerServiceOfficersfromonlyansweringincomingcallstoservingcustomersthroughnewdigitalchannelssuchaslivechat,videotellermachines,emailsandsocialmedia.

MySkills,anonlineskillsinventory,waslaunchedtoinformemployees’skillsprofileandrecommendwaysforthemtoreskillorupskillintonewroles.WealsodevelopedDBSMatch,ananalyticalmodel,topairouremployeeswithavailableroleswithinthebankandtofacilitatetheircareerdevelopment.

Undergirdingtheseefforts,ourmanagersplayacriticalroleindevelopingemployeesandcreatingtherightenvironmentforthemtogrowandthrive.Welaunchedanenhanced“BuildingGreatManagers”programmetoequipallpeoplemanagerswithrelevantandupdatedskillstoempowerhigh-performingindividualsandteams.Morethan4,000peoplemanagershavecompletedtheprogramme.

StatusEngagement scoresWemaintainedourrankingatthe87thpercentileinthe2019Kincentric(15) MyVoiceSurveyacrossaglobalbenchmark,withanimprovementintheemployeeengagementscoreto83%.Learninganddevelopmentremainedthesecond-highestrateddimension,scoringthreepercentagepointshigherthantheaveragescoreofAPAC’sBestEmployers. Inthesamesurvey,ourmanagerscontinuedtoberatedpositively formanagereffectiveness,scoring86%.

My Voice Survey 2019 2018

Employee engagement score 83% 82%

DBS strongly supports the learning and development of its employees 90% 90%

AwardsRecognisedforourcommitmentandprogressinreskillingemployees,wewereawardedtheWorkforceTransformationAwardbytheInstituteofBankingandFinanceSingaporein2019.WewerealsorecognisedasKincentricBestEmployerinSingaporeandRegional BestEmployerinAsiaPacificfor2019.

Ourcontinuedeffortsinbeinganemployerofchoiceisevidentinthevariousawardswehavewon.

Readmoreabout“SelectedESG-relatedawards,indicesandratings” on page57.

Pillar 2: Responsible business practices

(15) Previously known as Aon Hewitt

https://dbsspeakup.com/

https://www.tal.sg/tafep

https://www.tal.sg/tafep

29 30DBS Sustainability Report 2019 Pillar 2: Responsible business practices


Statistics

i. Total number of employees and voluntary attrition rate(16) Ourvoluntaryattritionrateimprovedfrom15%in2018to13%in2019.Thiswasattributedtoourbest-in-classemployeepracticesandtheeffectivenessofourin-houseanalyticspredictivemodelforretention,whichourmanagersuse.

ii. Average training hours(17) per year per employee by gender and employee category Theaveragetraininghoursforpermanentemployeesincreasedfrom36.6in2018to38.7in2019.Thiswasmainlyduetocontinuouslearningmadeavailableonour24/7learningplatformandproactivesharingandteachingamongouremployees.

iii. Percentage of positions filled internally Ourinternalmobilityrateremainedhealthyat25%duetoourrobusttalentmanagementpractices.Theslightdeclineover2018wasattributedtoadeliberateacquisitionofmoretechnologytalentfromexternalsourcestomeetourgrowingdigitalrequirements.

iv. Percentage of employees who receive regular career development reviews 100%ofemployeesreceivedregularcareerdevelopment reviewsin2019and2018.

(16) The rates exclude involuntary termination as well as contract, temporary and agency employee attrition

(17) Excludes informal learning methods such as community-based learning; and exposure opportunities such as immersion programmes including customer and employee journeys

26,857

24,174

28,526

0 5,000 10,000 15,000 20,000 25,000 30,000

Total number of employees

15%

13%

13%

0 3 6 9 12 15

Voluntary attrition rate

Year 2019 Year 2018 Year 2017



Readmoreabout“Information onemployees“onpage42.

25%

28%

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36.6

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38.2

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TargetsContinuousemployeedevelopmentremainsakeypriority.Weareinvestingintheupskillingandreskillingofouremployeesandbuildinganopencultureofconstantlearninganddevelopment.Thiswillbeembeddedintothewaywework,ourprogrammesandwoveninto theexecutionofourstrategicpriorities.

Case study

DBS Staff Union 6th General Delegate’s Conference

InOctober2019,about230DBSStaffUnionmembersgatheredforthe6thGeneralDelegate’sConference.Newinitiatives,benefitsandtrainingopportunitiesforemployeeswerecommunicatedduringtheconference.Variousspeakerssharedaboutemergingtechnologytrendsthatbringaboutchallengesandopportunitiestobusinessesandworkers,andhowastronglabour-managementrelationshipiskeyinthisfast-changingenvironment. Thegatheringalsocelebratedthecommitment,dedicationandsupportoftheunion,andtheclosetripartitepartnershipbetweenthegovernment,managementandunion.

I. Diversity and equal opportunity Why it matters Embracingdiversityallowsustotapintoawidertalentpoolandhaveamultiplicityofviewsandperspectives.Beingintentionalinprovidingequalopportunitiesforouremployeesisimportanttosupportourdiversityandinclusionagenda.Italsoenablesustorealisethefullpotentialofourcollectivehumancapital.

ApproachDBSembracesgenderandculturaldiversitywhichwebelieveiskeytoaconduciveworkingenvironmentwhereindividualsarerespected,supportedandincluded.

Ourcommitmenttodiversityandequalopportunityiscoveredin ourBoard Diversity PolicyandResource Management Policy. InlinewithourDBSPRIDE!values,wehirebasedonmerit,competenciesandorganisationalfit,regardlessofgender,race,religionorphysicalattributes.

Employeescanreportanybullying,harassment,discrimination, andotherformsofmisconductthroughtheirsupervisorandHR. Inaddition,“SpeakUp”isawhistleblowingprogrammewhichservesasagrievancemechanism,allowingemployeestoescalatetheirconcerns.Furtherinvestigationswillbeinitiated,andallidentities areprotectedandkeptconfidential.

InitiativesToraisegenderequalityawareness,wecelebratedInternationalWomen’sDayacrossallourkeymarkets.InIndia,weintroducedtwopivotalprogrammesforourfemalecolleagues.Thefirstprogramme,“EmpowHer”,isanexclusivelearningpathforwomenintechnicalroles,andsupportsthemincraftingandplanningtheircareerprogression.Thesecondprogramme,“MyPersonaWoman2.0”,supportswomeninbuildingrelevantskillstoleadandinfluenceothers.Inaddition,weenhancedourhiringapproachtorecruitmorefemaletalentinthetechnologyareathroughbespokehackathonsforthem.

Tosupportculturaldiversity,weintroducedGlobeSmart,anonlineculturalinventorytool,whichhelpsindividualstounderstandtheirownpreferencesandtendenciesforinteractingwithothers.Programmesarealsomadeavailabletohelpindividualsbeawareoftheirownbiasesandadapttoworkmoreeffectivelywithotherswhilerespectingdifferences.

Weextendedbothmaternityandpaternityleavetoincludechildadoption.Newneonatalleaveandyoungdependentinsurancewereintroducedtosupportouremployeeswhomayrequireadditionalsupportduringunforeseencircumstances.Beyondexistingflexibleworkarrangements,weenhancedthesabbaticalleaveprogramme toallowemployeestotakeextendedtimeoutofwork.

StatusTheoverallgenderpaygapacrossoursixkeymarkets,adjustedforranksandlocations,isinsignificantatlessthan1%.

Engagement score

My Voice Survey 2019 2018

DBS has a work environment that is accepting of diverse backgrounds and ways of thinking

88% 88%

I can report an instance of unethical conduct without fear of retribution from anyone

88% 88%

Inthepasttwoyears,ouremployeeshaveratedthebankpositivelyforourinclusiveworkingenvironment.Ouremployeesarealsopositiveaboutbeingabletoreportunethicalconductwithoutfearofretribution.

Awards Inrecognitionofoureffortsindrivinggenderdiversity,wewereincludedintheBloombergGender-EqualityIndexforthethirdconsecutiveyear.

Statistics

Breakdown of employee headcount by gender In2019,52%ofourtotalemployeeheadcountwasfemale,withaslight 1%decreasefromtheyearbefore.Femalesmakeup18%and29% oftheBoardandGroupManagementCommitteerespectively.

Readmoreabout“Informationonemployees”onpage42.

TargetsWeremaincommittedtoworkplacediversityasweseektostrengthenoureffortstowardsdrivingadeeperappreciation forgenderandculturaldiversity.

52%

53%

55%

48%

47%

45%

Fem

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0 20 40 60 80 100



Case study

Hack2Hire India 2019

Hack2HireisahackathonweruntoidentifyandbringintalentthatwillenhanceDBS’digitaloffering.Inthepasttwoyears,approximately5%ofourHack2Hireapplicantswerefemale.Toincreaseourfemalerepresentationintechnologyroles,Hack2Hire-HerwaslaunchedinFebruary2019toattractmorefemalecandidates.WepartneredcommunitiessuchasThoughtWorks,GirlsinTechandCodingGirlstoincreaseouroutreachtothebestandbrightestfemaletalent. WealsoconductedHack2Hire-HeronInternationalWomen’sDay, withatwo-weekfestivalfeaturingtalksandeventsongenderdiversity.

J. Workplace well-being Why it matters Asanemployerofchoice,itisimportantthatwetreatandsupportouremployeeswell.Workplacewell-beingenablesouremployeestoleadhealthyandfulfilledlivesatworksothattheycanbemoreproductiveandengaged.

ApproachWearecommittedtoprovidingasupportiveenvironmentforemployeesandencourageallemployeesandallwhoworkinourworkplacetoembracesafetyandhealthylifestyles.

UnderouriHealth@DBS programme,ourworkplacewell-beingeffortsareanchoredonfourkeytenets:LiveWell,EatWell,StayWellandSaveWell.WealsotakereferencefromourOperational Risk Event Management and Reporting Guidewhereemploymentpracticesandworkplacesafetyareclassifiedandincludedintheoperationalriskmanagementsystem.Itincludesformalisedreportingandrelatedescalationprocedures.

InitiativesLive wellOuremployeesparticipateintheiFlexprogramme,aflexibleonlinespendingaccountwhichofferstoolsandincentivestopromotehealth,familyandwell-being.

SpecialarrangementshavebeenmadetoenhancetheLiveWellinitiativeinourkeymarkets.InTaiwan,ouremployeesareabletouseflexiblebenefitstoengagelicensedhealthcareprofessionalsfortheirfamilyneeds,thusgivingthempeaceofmindwhileatwork.InIndia,femaleemployeesareabletomakereimbursabledaycarearrangementsinpartnershipwithapprovedproviders,thusbringingflexibilityintoworkingmothers’lives.InSingapore,the“SailAway withDBS”eventprovidedanopportunityforemployeestorelax andspendtimewiththeirfamilyandfriends.

WealsoengagedThriveGlobaltorunascience-basedwell-beingprogrammebank-widetohelpouremployeesimprovetheirphysical,mental,emotionalandspiritualwell-being.

Eat wellOurcafeteriavendorsandvendingmachinesofferaselectionofhealthyfoodoptionstoencourageouremployeesto havehealthydietsatwork.

Stay wellFitnessfacilities,gymsanddancestudiosareavailablewithintheofficepremises.Weencourageouremployeestoparticipateinrecreationclubactivitiesandtoleadanactivelifestyle.Inaddition, weconductannualonsitehealthscreeningsforemployeesand werelaudedfora10%increaseinemployeeparticipationthisyear.DuringBreastCancerAwarenessMonth,weinvitedspeakerstosharerelevanthealthinformationwithouremployees.

Ourflexibleworkarrangementprogrammeprovidesemployeeswiththeflexibilitytobalanceresponsibilitiesatworkandathome.Itoffersoptionssuchasflexi-time,part-timework,no-payleaveandworkingfromhome.

Wecontinuetodeepenoureffortsinprovidinganactivity-basedsharedworkspacearrangement,JoySpace,todrivegreatercollaborationandideationamongemployees.Asat2019,wehadconvertedabout46%ofeligiblespaceintoJoySpaceinSingapore.OurselectedofficesinHongkong,Indonesia,andIndia(Hyderabad)aredesignedwithsimilarJoySpaceprinciples.

Save wellAsafinancialinstitution,weprovideemployeeswithoptionsandopportunitiestomanagetheirfinancialneeds.Beyondbankingprivilegesforemployees,weorganisefinancialhealthroadshows tosharetipsonpersonalfinancialmanagement.

Employeesandtheirfamiliesarealsocoveredbycorporatemedicalandinsurancebenefits,whereapplicable,toprotectthemfromunexpectedmedicalexpenses.Itincludesoutpatient,hospitalandsurgicalfees,dependents’medicalscheme,lifeinsuranceanddentalbenefits.

StatusWewereawardedtheBuildingConstructionAuthority-HealthPromotionBoard“GreenMarkforHealthierWorkplace”Platinum,forourDBSAsiaCentralandDBSAsiaHuboffices.TheawardrecognisesDBSforpromotingasafeandhealthyworkplacethroughdesign,fit-outprovisionsandpropermaintenanceofourfacilities.

TargetsWewillcontinuetobeinclosetouchwiththeneedsofouremployeesandprovidetimelyandrelevantsupporttoenhancetheirworkplacewell-being.Weaimtoconvert64%ofeligiblespaceinSingaporetoaJoyspacearrangementby2020.

Case study

DBS employees attending Emergency Response Training

Aspartofoursafetyandhealthtrainingprogramme,weorganised“AwarenessonWorkplaceSafety”attheannualbusinesscontinuityawarenessday.WepartneredInternationalSOStoadviseontravelsafetyandorganisedbizSAFEtrainingtobuildcapabilitiesinworkplacesafety,healthandsecurity.Inaddition,weencouragedemployeestoattendthe“EmergencyResponseTraining”conductedbytheSingaporeCivilDefenceForce.Thetrainingcoveredbasicknowledgeonfirstaid,automaticemergencydefibrillatorandfirefighting.

K. Sustainable procurement Why it matters Buildingastrongandreliablesupplychainisfundamentaltosustainableoperations.Sustainableprocurementpracticeswillhelpbusinessestoreducewaste,contributetodecentworkingconditionsandenableeconomicgrowth.

Werecognisethattheactionsofoursupplierscontributetothebank’ssustainabilityperformanceandthatwecaninfluenceandpartnerwiththemformutualimprovements.AsaleadingfinancialservicesgroupinAsiawithapresencein18markets,wepurchaseadiverserangeofproductsandserviceswiththebulkbeingprofessionalservices,software,realestateandcorporateservices.Engagingwithoursuppliersmayalsocarryfinancial,legalandreputationrisks.Assuch,wearecognisantthatwhenwemakeprocurementdecisions,wemustalsoconsiderenvironmentalandsocialmattersalongsidefinancialfactors.

ApproachOurprocurementismanagedinaccordancewiththefollowing:i. Group Procurement Standard and Sourcing Guide

Extendsthroughouttheprocurementcycle,fromidentificationandspecificationofrequirementstotheawardingofcontractstosuppliers.

ii. Group Procurement Policy OutlinesguidelinesforthepurchasingofgoodsandservicestomeetDBS’requirementswhileensuringminimumrisksandmaximumvalue.

InitiativesSustainable Sourcing Principles (SSP)TheSSPhavebeencentraltoourapproachinoursixkeymarketssince2017.Itoutlinestheexpectationsthatwehaveofoursuppliersinfourkeyareas:(1)humanrights,(2)healthandsafety,(3)environmentalsustainability,aswellas(4)businessintegrityandethics.AllnewsuppliersarereviewedagainsttheSSPduringregistrationandatregularintervalsaspartofourongoingsuppliermanagementprocess.

Supply chain high-risk categoriesThesustainabilityriskmaterialityassessmentfurtherhelpsustoidentifyspendcategorieswithhighESGrisks.OurbiennialassessmentforSingaporewasmostrecentlycarriedoutin2019andidentified18high-riskcategories.Forcompetitivetendersinhigh-riskcategories,weincorporatedorganisationalsustainabilityintotheevaluationandselectionofsuppliers.Thissourcingphilosophy,inturn,hascreatedarippleeffectbyencouragingoursupplierstoconsidermoresustainablesolutionsandmodesofoperation.

Circular procurementWeincorporatedcircularprocurementpracticesinoursupplychainandtrainedoursourcingmanagerstoworkwithsuppliersintheresponsiblemanagementofmaterialsandconservationofresources.Ourintention istokeepresourcesinuseforaslongaspossible.

Since2018,wehavecompletedmorethan10pilotprojectswhichincludedtheuseofbulkpackaginginlaptops,resellingofoldfurnitureandcompostingofcafeteriawaste.Insomeinstances,wealsoleveragede-procurementsystemfunctionalitiestorestrictoreliminatedemandatpoint-of-orderrequisitions.Forexample,weremovedDBS-brandedplasticbottledwaterandimplementeddepartment-levelpaperbudgetcontrol.Bydoingso,wewereabletoreduceusageofmaterialsandstrengthencircularityefforts.Thisisabestpracticewhichhassince beenreplicatedacrossourmarketsinsuccession.

Whenimplementedatscale,aggregatedoutcomesofcircularprocurementhavethepotentialtocatalyselargersystem-widechangesacrosstheentireindustry.Itiswiththisbeliefthatwehavebeenactivelypromotingcircularprocurement.Wehavesincesharedoureffortsandexperienceonpilotprojectswithover80organisations.

StatusThisyear,99.9%ofournewsupplierssignedtheircommitmenttoourSSP.Nosupplierswereidentifiedtohavecausedsignificantnegativeenvironmentalorsocialimpactintheiroperationsorsupplychains. Therewerealsonoterminatedrelationshipspost-assessment.

Wehavecompletedsustainabilityassuranceson45suppliersandobtainedtheirrecommitmentstocomplywithourSSPrequirements. Inthecourseoftheseengagements,onesupplierwasidentifiedwithweakhumanrights-relatedpractices.Insteadofhaltingtheengagement,weworkedtogetherwithoursuppliertomakeapositivechangebyengagingwiththesupplier’sseniormanagementanddemonstrating oursustainabilitycommitments.

TargetsWebelievethatweareinagoodpositiontodriveinnovationandsupportexperimentationtomakeameaningfulimpact.Wewillcontinuetoensurethat100%ofournewsuppliersarecommittedtotheSSP.

Inaddition,wehavechosentofocusonthevolumeofpaperandplasticsthatweusebecausethesearevisibleindicatorsofusbecomingsustainableinoperationstowhichallemployeescancontribute.Movingforward,weintendtosettargets,andtoputinplacefurtherreductioninitiatives.RelateddisclosureswillbemadeinthenextSustainabilityReportfor2020.

Case study

National Sustainable Procurement Roundtable

WeannouncedthecreationofSingapore’sfirstindustryworkgrouptopromotesustainableprocurement–theNationalSustainableProcurementRoundtable(NSPR).Itisco-foundedbyDBS,MandaiParkHoldings,SingtelandStarHub.Withacommonvision,the

https://www.dbs.com/sustainability/responsible-business-practices/sustainable-sourcing/dbs-sustainable-sourcing-principles



foundingmemberspartneredtopromotesustainableprocurementinSingapore,withtheaimofbuildinganinnovativeandsustainablesupplychainthatefficientlymeetssustainabilityobjectives.

Followingthelaunch,theNSPRwillfocusonincreasingmembership,expandingitsworkplanaswellasdevelopingbestpracticesandstandards(e.g.sustainablegiftsandpremiums,sustainablewaterprocurement,etc.)todrivescalablesustainableimpact.

L. Managing our environmental footprint Why it matters DBShasextensiveoperationsacrossAsia,anditisimportantforustomanagetheresultingenvironmentalfootprint.Thebuildingsthatweoperatecontributesignificantlytoourdirectenergyconsumptionandrelatedgreenhousegas(GHG)emissions.Aswecontinuetogrowourfranchise,wearecommittedtoconductingourbusinessmoresustainablybyincorporatinginnovativeandsimple-to-applysolutionstoouroperations.

ApproachWearecommittedtominimisingourenvironmentalfootprintthroughreducingourconsumptionandimprovingoverallefficiency.Tofacilitatethis,wearetakingstepstoenhanceourexistingmeasurementsystemtoincorporatereal-timeenergymonitoringandaddeddatacollectionforotherGHGsuchasSF6,FM200andrefrigerantsthatareusedinbuildingoperations.

Thephysicalspacesthatwebuildandfitouttodaywillconsumeenergyintheyearsthatfollow.Takingthisasakeyconsideration, weembarkedonseveralprogrammestokickstartatransformationtobecomeabuilderanddesignerofregenerativeandbeneficialspaces.

InitiativesBuilding sustainable infrastructureWeincorporatesustainabledesignandsustainableprinciplesacrossallourphysicalspaces,fromofficebuildingsandretailbranchestodatacentres.Thisyear,weexperimentedwiththefirstnetzeroenergyretrofitprojectwhichwillinformfuturedesignsandrenovations.Wealsobeganthedesignprocessfor‘livingJoySpace’,whichincorporatedelementsofnaturalsystemsandmaterialsintoourworkingenvironment.Inaddition,westartedourmostambitiousenergyreductionplanattheendof2019andexpecttoseesignificantsavingsin2020andbeyond.

Driving sustainable behaviours Weactivelyencourageemployeesinourkeymarketstoadoptsustainablelifestylehabitsthroughcampaignsthatraiseawarenessonhowindividualscaneffectchange.Wehaveestablishedfoursustainability-relatedinterestgroups.Employeesvolunteerupto5%oftheirworkinghourstoideateanddriveground-upsustainabilityinitiativestoreducepaper,plastics,textileandfoodwaste.Onesuchinitiativeistheclothingswapeventswhereemployeescanexchangetheirclothesforotherpre-lovedpiecesinsteadofbuyingnewitems.AnotherinitiativeistheSingaporeFoodShareprojectwhichisachatgroupthatinformsmembersofexcessfoodfrombuffetsheldwithinourpremises.Itpotentiallyactivatesmorethan500subscriberstoeatortakeawaythesurplusfood.

DBSHongKonglaunchedtheirSustainabilityDaythisyear.Employeeshadtheopportunitytotryplant-basedmeat,cycle forfreshjuice,and

makesoapfromcoffeegrounds.Thethree-dayeventalsoincludedaSEbazaarinpartnershipwithseveralSEs.

Welauncheda“VCMore,TravelLess”campaigntoreduceourworktravelfootprint.Conferenceroomsandhuddleroomsarefittedoutforvideoconferencecallsandemployeesareencouragedtolimitoreliminateworktravel.Initialresultsshowabout23%reductionintravelspentformeetingsin2019overthesameperiodin2018.

StatusWehavemadesignificantinvestmentsindrivingenergyefficiencyinourmarkets,andthishasenabledustooperatealargerbankingfranchisewithasmallerenvironmentalfootprint.

Toimproveourmeasurements,weengagedaconsultingfirmtoreviewourGHGemissionsinventory.Throughthisreview,wesoughttobemorecomprehensiveinourreportingscopeandhadidentifiedothersourcesthatcontributedtoemissions.

Readmoreabout“Informationonenvironmentfootprint”onpage45.

Renewable energyWearemakingsteadyprogressintheuseofrenewableenergyandabout14%ofourcurrenttotalelectricityconsumptionacrosssixmarketsissourcedfromrenewablesources.

Sustainable workspaces100%ofourSingaporebranchesareBuildingandConstructionAuthorityGreenMarkCertified,with62branchescertifiedasGreenMarkGoldandabove.Inaddition,twoofourSingaporepremiseswereawardedtheGreenMarkforHealthierWorkplaceswhileourTaipeiXinyiTreasuresPrivateClientBranchwasawardedLeadershipinEnergyandEnvironmentalDesignSilvercertification.

Data centre transformationWecontinuetotransformourdatacentrestobemoreenergyefficientthroughtheinnovativeuseofcloudtechnologyandoptimisationofourITinfrastructureoperations.Ourfirstdatacentremigration/transformationwascompletedinJune2019.TheelectricityconsumptionofdatacentreITloadfellby1,655MWh,orabout8.5%.

2019 2018

IT load from Singapore co-location data centre partners (MWh) 17,740 19,395

IT load includes servers, network equipment and voice equipment located in all data centres. It is computed using the data centre stated power use effectiveness and includes data centre facility energy. We have restated IT load for 2018 on a comparable basis.

TargetsWeaimtosource100%renewableenergyforourSingaporeoperationsby2030.Weplantoaccomplishthisthroughacombinationofbehind-the-metersolarinstallations,powerpurchaseagreements,bundledgreenenergycontractsandrenewableenergycertificates. OurabilitytoachievethiscommitmentismateriallycontingentonourabilitytosourceacceptablerenewableenergycertificatesinSingapore.

Onenergyconsumptionandefficiency,wewillcontinuetoworktowardsimprovingourenergyconsumptionthroughregularreviewsincludingthemonitoringofenergyconsumption,optimisingmechanicalandelectricalequipmentoperations,replacingagedequipmentandbuildingnewphysicalspacesdesignedtobesuperlowenergyornetzeroenergy.

Case studies

Responsible waste management programme

DBSIndonesiapartneredWaste4Change,asocialenterprisethatisfocusedonmanagingandrecyclingwaste,torolloutaninitiativecalled“ResponsibleWasteManagement”.Throughthisprogramme,weengagedandeducatedouremployeesaboutnewproperwastemanagementpracticesandhowtoreducetheuseofplastics.Wealsoinstalledthree-binwastesystemswherewastewillbepickedupandmanagedbyWaste4Changesowecanworktowardszerowastetolandfill.

Theprogrammecollectedapproximately30,000kgofwastewiththehelpofabout3,400employeesfromthemainofficesofCapitalPlaceandDBSTower.Allwastematerialsareeithercompostedasfertiliserorusedasfuelforcementindustryco-processing.

Rooftop panel system at DBS retail branches

WecontinuetoworktowardsachievingDBS’RE100commitment.FollowingthesuccessofDBSAsiaHub’ssolarpanelslastyear,weextendedoureffortstoregionalmarketsinIndonesiaandTaiwan,particularlyatourretailbranches.

InOctober2019,DBSTaiwanwentgreenwiththeinstallationofarooftopsolarpanelsystemattheTaipingbranchinTaichung.Approximately14,000kWhwillbegeneratedannually.Inaddition,DBSIndonesiacompleteditssecondsolarpanelinstallationwhichwashousedaboveitsBandungJawabranch,andwasprojectedtogenerateabout30,000kWhannually.

Theseprojectsacceleratedthebank’stransitiontorenewableenergyanddemonstratedourcommitmenttopursuinglong-termsustainabilityviaouroperations.

M. Responsible tax management Why it matters Taxesplayacentralroleincontributingtoeconomiesandcommunities.AsasignificanttaxpayerinSingaporeandintheotherlocationsthatweoperatein,weacknowledgeourpartincontributingtocommunitiesviathepaymentofdirectandindirecttaxes.

Governmentsandthegeneralpublicareplacinghigherexpectationsoncompaniestobeethicalintheirtaxdealings.Weacceptourdutytocomplywithalltaxrequirementsandadheretolocalandinternationaltaxstandards.

Approach(18)

Wearecommittedtopayingourfairshareoftaxesinthelocationswhereweoperateandcomplyingwithallrelevanttaxlawsandregulations.Thisincludesthefulfilmentoflocaltaxfilingobligationsandtimelypaymentoftaxes.

Itisthesovereignrightofgovernmentstosettaxlawsandregulationsinthecontextofthecompetitiveglobalmarketplace.Globally,competitionforinvestmentandcapitalisrobust,anditisnottheroleofbusinessestodeterminewhatleveloftaxwouldmeettheneedsandexpectationsofsociety.Taxincentivesandexemptionsareaneffortbygovernmentstoencourageinvestment,employmentandeconomicgrowth.Tobalancetheinterestsofourstakeholders,weclaimlegitimateincentivesandexemptionsthataregrantedtous.

Weseektoalignourtaxcontributioninanytaxjurisdictionwiththevaluecreatedinthoselocations,andonlyundertaketransactionswhichwewouldbepreparedtofullydisclose.OurapproachtotransactionswithclientsisguidedbyourTaxSensitiveTransactionsStandard.Wewillnotknowinglyengageintaxstructuresthataimtoevadetax.Inaddition,wehaveinplaceaprocesstoensurethattransactionsthatmayleadtotaxavoidanceareescalatedandreviewedbyriskandcontrolfunctionsasandwhenrequired.

Tax governance and risk management frameworkTheBoardofDirectors’responsibilityforsustainabilityincludesresponsibletaxmanagement.TheGroupCFO,supportedbytheHeadofGroupTax,overseesthetaxfunctionwhichisresponsibleforongoingtaxcomplianceandrobustmanagementoftaxrisksandexposures.

DBShasalowtolerancefortaxriskandadoptsaclearlydefinedtaxriskmanagementframeworkthatpromotestransparency,fairnessandaccountability.ThisisimplementedthroughourGroupTaxPolicy,whichisapprovedbytheGroupCFO.Thepolicyisfurthersupplementedbystandardsandprocedurestoensurecontinuedadherencewiththeframework.

Ourtaxriskmanagementframeworkisbasedonthefollowingprinciples:i. Weonlyundertaketransactionswhichareunderpinnedbystrong

commercialmotivationsthatwearepreparedtofullydisclose;ii. Wecarefullyconsiderthepotentialtaxsensitivityoftransactionsand

areguidedbyasetofestablishedescalationandapprovalprocedures;

(18) We comply with the requirements under the United Kingdom Finance Act 2016. The statements presented in the “Approach” section serve as DBS’ Tax Strategy, in compliance with Schedule 19, Part 2, Paragraph 19 of the said Act. These statements are effective for 2019 and 2020

36Pillar 3: Creating social impact35 DBS Sustainability Report 2019


iii. Wehavesufficientskilledemployeesineachmajorlocation,and wewillseekindependentadviceontransactionswithsignificant taxuncertainty;and

iv.Wetakeourtaxcomplianceresponsibilitiesseriouslyandfulfilallourobligationsasacomplianttaxpayer.Seniormanagementandindependenttaxconsultantsreviewourreturnsandfilingspriortosubmission.

Base Erosion and Profit ShiftingBaseErosionandProfitShifting(BEPS)referstotaxavoidancestrategiesthatexploitgapsandmismatchesintaxrulestoartificiallyshiftprofitstolow-orno-taxlocations.SingaporeispartoftheOrganisationforEconomicCo-operationandDevelopment(OECD)/GroupofTwenty(G20)InclusiveFrameworkonBEPSthatiscollaboratingtoimplementmeasurestotackletaxavoidance,improvethecoherenceofinternationaltaxrulesandensureamoretransparenttaxenvironment.WewelcomeandsupporttheconsistentimplementationofmeasuresarisingfromtheworkoftheOECD/G20InclusiveFrameworkonBEPS.

AsOECDcontinuestocoordinatetheglobalreviewontheinternationaltaxrulesforthemodernglobaleconomy,weremainanactiveparticipantinthesediscussionsthroughourinvolvementwithfeedbacktoOECD,localtaxauthoritiesandvariousindustryforums.Ifchangesaremadetotheinternationaltaxsystem(i.e.theallocationoftaxingrightsacrosscountries),thesewillbefar-reachingandmayhavesomeimpacttoDBS’cross-borderbusinessactivities.

Transfer pricingOurtransferpricingapproachaimstobeincompliancewiththearm’s-lengthprincipleandwehaveestablishedpoliciesandstandardswhichgoverntransferpricingbetweenrelatedpartiesoftheDBSGroup.OurapproachisalignedtothedomestictaxlawswhereweoperateandtherequirementsoftheOECDTransferPricingGuidelinesforMultinationalEnterprisesandTaxAdministrations.WealsoexamineourapproachinthecontextofevolvinginternationalstandardssuchastheOECD/G20BaseErosionandProfitShiftingProjectReportsandActionPlans(OECDBEPS).

InitiativesWeregularlyengagetaxauthoritiesbasedonmutualrespectandtrust.Weaimtobetransparentinourtaxfilingsandwillprovideauthoritieswithsufficientinformationsuchthatrobustconclusionsregardingthetaxtreatmentofouractivitiescanbemade.

Inalllocations,weseekopportunitiestomeetwithtaxauthoritiestoexchangeviewsandensureourlocalbusinessisunderstood.Forexample,weparticipateintheEnhancedTaxpayerRelationshipProgrammeintroducedbytheInlandRevenueAuthorityofSingaporetoengagewiththeminatransparentmannerandfacilitatetimelyresolutionofourtaxmatters.

Wheretransactionsaresignificantandrequiregreatercertainty, weinitiatetransparentdiscussionswithtaxauthorities(e.g.AdvancePricingAgreements)todiscussandachieveupfrontagreement. Wealsoengageindependentexternaltaxadvisorsregularlytoconductreviewsensuringourapproachtakenisappropriate.In2019,weinitiatedabilateralAdvancePricingAgreementwiththetaxauthoritiesoftwolocationsandconductedindependentreviewsofselectedrelatedpartytransactionswithglobalaccountingfirms.

StatusDBSisaregionalbank.Thetaxwepayisafunctionofwhereweoperateandtheapplicabletaxlawsinthoselocations.In2019,wecontributedSGD1,154millioninincometaxes.Oureffectivetaxrateincludespermittedconcessionarytaxratesandincomenotsubject totaxforspecificbankingactivities.

Readmoreabout“Geographicprofitsegmentation”onpage41.

Inadditiontoincometaxes,DBSalsocollectedGoodsandServices Tax(GST)/Value-AddedTax(VAT)onbehalfofgovernmentsacross thelocationswhereweoperate.

TargetsWesupporttheconsistentimplementationofOECDBEPSmeasures,andthecontributionsofthetaxjurisdictionscollaboratingtoimplementmeasurestargetedattacklingBEPS.Asdomestictaxlawsandinternationaltaxstandardscontinuetoevolve,wewillcontinuetofulfilourroleasaresponsibleandcomplianttaxpayertopayourfairshareoftaxes.

ReadmoreaboutDBSsubsidiaries’accountsonthebasisfordeterminingthedomestictaxespaid.

Group (in SGD million) 2019 2018

Profit before tax 7,583 6,659

Income tax expense charged to income statement 1,154 1,006

Tax as a percentage of profit before tax(19) 15% 15%

Payment of GST/ VAT collected from customers 242 222

(19) Refer to Note 12 of DBS Annual Report 2019 financial statements for reconciliation against Singapore basic tax rate

N. Social entrepreneurship Why it matters In2014,theDBSFoundation(DBSF)waslaunchedwithaSGD50millionfundtomarkthebank’scommitmenttochampioningsocialentrepreneurshipinAsia.Oursupportforsocialenterprises(SEs)resonateswithourheritageasa‘developmentbank’,whileleveragingourexpertiseinservingtheSMEsector.

Webelievethatbusinessesneedtoconsidernotonlyshort-termshareholderreturnsbutalsothelonger-terminterestsofthecommunitiesthatweserve.WechosetofocusonchampioningSEsbecausetheyarefor-profitbusinessesthatinnovativelyaddresssocialandenvironmentalissueswiththeirproductsandservices.ThroughtheworkofDBSF,wewanttocatalysethegrowthofanecosystemofbusinessesthatdobusinessdifferentlyandindoingso,scaletheimpactwecanmakeinaddressingthemyriadsocialandenvironmentalchallengesthatconfrontarapidlygrowingAsia.

ApproachDBSwasnamedtheinauguralwinneroftheSocialEnterpriseChampionoftheYearawardatthePresident’sChallengeSocialEnterpriseAwards(PCSEA)2019.ThePCSEAhonoursoutstandingbusinessesandtheirpartnersintheSEsectorforcontributionsmadetothelocalcommunity.

DBSFtakesathree-prongedapproachtoadvancingthesocialentrepreneurshipagenda:• AdvocateforSEs–businessesforgood–throughevents,

competitions,challenges,bootcamps,workshopsandlearningforums.• NurturepromisingSEsthroughgrantfunding,capacitybuildingand

mentorship.• IntegrateSEsintothecultureandoperationsofthebank.

Initiatives and statusi. Advocate

In2019,DBSFreachedouttomorethan25,000stakeholdersincludingSEs,students,governmentagencies,tertiaryinstitutions,SMEsandclientstofosteravibrantsocialenterprisecommunityandcreateacall-to-actiononenvironmentalandsocialissues.

SinceitslaunchinJuly2019,SparksSeason2,whichisamini-seriesinspiredbytruestoriesofSEssupportedbyDBSF,hasgarnered

over144millionviewsacrosstheregion.Thesestorieshelptoraiseawarenessandgalvaniseactionfromthepubliconmattersrelatedtoreducingplasticpollution,encouraginginclusionofthemarginalised,upcyclingandwastemanagement,aswellasadoptingtechnologicalinnovationsthathelpourpopulationsagegracefully.

Wealsoleveragedbank-wideplatformssuchastheDBSMarinaRegattatoshowcaseourSEsandtheircauses.Theeventinvolvedover15SEsandsawattendancebymorethan70,000people. Wealsomadeaconsciousefforttoembedsustainabilitypractices,obtainingtheSingaporeEnvironmentCouncil’sEcoEventCertificationintheprocess.

DBS supported the second Asia Pacific SE Summit, a public-private-partnership bringing together the SE ecosystem in Taiwan

Tobroadenouradvocacyeffortandnetwork,wesupportedtheAsiaPacificSocialEnterpriseSummitinTaiwanandpartneredotherorganisationsandgovernmentsintheregion,suchastheInstituteofInnovationandEntrepreneurshipatSingaporeManagementUniversitytooffertheSocialImpactPrizeattheLeeKuanYewGlobalBusinessPlanCompetition.Theprogrammereachesouttoover2,000universitiesgloballytoidentifysustainableandscalablebusinesssolutionsthathelpaddresscrucialsocialandenvironmentalissues.ThefinalswillbeheldinMarch2020.

ii. NurtureTheannualDBSFSEGrantProgrammeattractedarecord600applicationsfromacrossAsiain2019.NinesocialenterprisesfromourkeymarketswereselectedtoreceivegrantstotallingSGD1.3million.WefocusedonSEswhoarescalinguptheirbusinesses–businesseswithaproductmarketfitthathaveobtainedtractioninsalesandrevenueandhavewell-definedsocialimpactgoals.Theyaddresspertinentsocialchallengesinaninnovativeway,

Pillar 3: Creating social impact

DBS Sparks, an award-winning mini-series, was aired on digital channels with a second season inspired by true stories of SEs and dedicated to everyday heroes who are making a difference in the lives of others.

https://www.dbs.com/investors/financials/subsidiary-accounts

37 38DBS Sustainability Report 2019 Pillar 3: Creating social impact


suchasempoweringinmateswithemployment,addressingnutritionaldeficiencieswithsustainablefoodsources,connectingunderprivilegedcommunitiestoessentialhealthcaresupport,trainingchildrenwithspecialneeds,convertingwastecookingoilintobiofuels,andreducingfoodloss.

Inaddition,weleveragedtheexpertiseofthebankandecosystempartnersacrosstheregiontoequipSEswithbusinessskillsneededtoscaletheirbusinessandimpact.Forinstance,over20skillsclinicsforSEswerecarriedoutbyDBSexpertsin2019.Topicsincludeddataanalytics,financialmanagement,digitalmarketingandwebanalytics,talentmanagement,fundingforstartupsandlegalissues.

Somehighlightsacrossourkeymarkets:• India:WeprovidedgrantstothreeSEsunderapartnershipwith

SocialAlpha,aTechnologyBusinessIncubator,approvedbytheDepartmentofScienceandTechnology,andsupportedbyTataTrusts.ThegrantawardeeshelptoaddresssocialissuesbyutilisingmobileandAItechnologytoimprovetheemotionalresilienceandwell-beingofpeople,implementingacatheterreprocessingsystemwhichkeepshealthcaresafeandaffordable,andtrainingwomenfrommarginalisedcommunities.

• Indonesia:Westartedasix-monthlongDBSFSEBootcamp2019withacurriculumfocusingonfinancialmanagement. ThebootcampwillculminateinMarch2020withaninvestorshowcase.

• Taiwan:Weincubated28SEsintheiLab3.0programmewhichprovidestraining,networkingandclinicsforearly-stageSEssothattheycanlaunchtheirbusinesses.Inaddition,weintroducedanacceleratorprogrammeforestablishedSEstohelpthemdevelopintosustainablebusinesses.WiththehelpofseniorcolleaguesinDBSTaiwan,coursesweredesignedonspecificareassuchasHRandbusinessdevelopmentskills.

Inthelastfiveyears,wehavenurturedover400socialenterprises.

i. IntegrateWeembeddedSEsintothebank’soperationsbyintegratingthemintoourproductsandservicesthroughconsciousprocurement,providingco-workingspaceandbyincludingemployeesinskills-basedvolunteering.

Prime Minister Lee Hsien Loong with bettr Barista, a social enterprise supported by DBS Foundation and a regular vendor for our events

WepioneeredtheSEbankingpackageadecadeago,whichwasdesignedtosuittheneedsofSEs.ChargesonmosttransactionbankingservicesarewaivedandqualifyingSEsareofferedloansatpreferentialrates.597SEshavebenefittedfromtheSEbankingpackageinSingaporeandtheregion.Inaddition,manyofourSMERelationshipManagersprovidedadditionalsupporttoourSEsthroughtheSESupportProgramme,helpingthemtomanagetheirworkingcapitalandcashflowsaswellasofferingindustrysectorandmarketinsights.

WeextendedtheuseofourfacilitiessuchastheDBSSparksStudiotoSEsfororganisingtheirevents;DBSAsiaX,withcoworkingspacesalsoavailableforSEs.SEsarealsoinvitedtoeventsandworkshopsaspartoftheSMEAcademybyDBSBusinessClass.

B Corp events bring together SEs and small businesses interested in building credibility, value and trust through the social and environmental impact that they create. These were held at the DBS Sparks Studio.

TargetsDBSFwillcontinuethejourneyofadvocatingfor,nurturingandintegratingSEsintoouroperations.Weplantogrowourpartnershipswithotherssothatwecanreachouttoawideraudienceandgeneratealargerimpactthroughourinitiatives.

WewilldeepenournurturingofSEsandprovidestrongersupport–throughtheinternalandexternalnetworksofthebank–forhigh-potentialSEstoscaletheirbusinessandimpactin2020.

Case studyEdible Garden City – Singapore

Edible Garden City employs 40 full- and part-time employees including seven from disadvantaged backgrounds.

EdibleGardenCitychampionsthe“grow-your-own-food”movementandreducesfoodwastebyincorporatingnaturalsystemswithtechnologysuchashydroponics,aquaponicsandinsectfarming. ThisSEbuildsandmaintainsediblegardensforhotels,schools,restaurants,commercialbuildingsandprivateclients.Theirgoalistohelpcitiesbecomemoreself-sufficientbygrowingfoodinunderutilisedspaceslikerooftops,underviaducts,andeverywhereinbetween.

DBSFgrantenabledthedevelopmentandscalingupofmicrogreensandmushroomproduction,andthedevelopmentofclosed-loopagriculturesystems.

O. Employee volunteerism Why it matters Organisationsincreasinglyseetheimportanceofengagingemployeesincorporatesocialresponsibilityprogrammesandareprovidingopportunitiesforemployeestooffernotonlymoneybutalsotheirtimeandskillstohelpcommunities.Suchengagementsleveragethecapabilitiesofemployeeswhowanttocontributetothegreatergood.

WebelievethatitisimportanttobuildsuchacultureofgivinginDBS.

ApproachAsapurpose-drivenorganisation,westrivetocreateanimpactbeyondbanking.Webelieveouremployeescanmakeadifferencetosocietythroughthecontributionoftheirtime,donationsandskills.

PeopleofPurpose(PoP)isDBS’employeevolunteermovementthatbringsourvaluestolife,engagesouremployees,andleveragesourtimeandskillstomakemeaningfulcontributionstothecommunitiesweliveandworkin.Ourvolunteeringeffortsaresustainedandfocusedonthreeareas–theelderly,educationandtheenvironment,acrossourkeymarkets.

InitiativesRegularPoPprogrammesareplannedwithlocalcommunitypartnersandsocialenterprises(SEs)inthethreefocusareas.Theseprogrammesconsidertheskillsofouremployeeswiththeneedsofthecommunityandarecommunicatedonaregularbasis.

Wedemonstrateourcommitmenttovolunteerismbyinstitutionalisingtwodaysofvolunteerleaveforouremployeesacrossourkeymarkets.

Acrossourmarkets,weundertookmultipleactivitiestoconnectwithcommunitiesthroughvolunteeringinthethreefocusareas:

Elderly Education Environment

Weaimtomakeageingeasierforthegenerationthathasworkedtobuildourcommunities.

Weaimtoworktowardsimprovingthefuturesothatnooneisleftbehind.

Weaimtoworktogethertosafeguardthe Earthforour futuregenerations.

StatusOuremployeescontributedabout88,000volunteeringhourstoservethecommunityin2019,whichwasanincreaseofabout35%fromtheyearbefore.

TargetsWewillcontinuetopromoteacultureofemployeevolunteerismandcontributingtothegreatergood.Weaimtodeliver100,000hourstovolunteerismacrossoursixkeymarketsin2020.Thisincludesskills-basedvolunteeringwhereemployeesusetheirexpertisetosolvebusinesschallengescommonlyfacedbySEs.

WewillcontinuetodeepenandexpandpartnershipswithcommunitypartnersandSEstodrivegreaterpositivechangeinthecommunities.Inthelongterm,wehopetomakevolunteerismanintrinsicpartof ourworkcultureandalignedtoourbusinessesinadeeperway.

DBS Foundation Grant Awardees – SGD1.3M to support SEs in scaling up business & impact

S4S Technologies | Agriculture Empowerswomenfarmer-entrepreneurs withitssolar-powereddehydration technologyforharvestedproduce

Agape | Business ServicesContactcentrechampioninginclusiveemploymentofdisadvantagedgroups(e.g.inmates,exoffenders,PwDs)

Namz | F&B, AgricultureOffersarevolutionaryinstantnoodleproductthatisnutrient-rich,highinleanproteinandfibrebyincorporatingunderutilised,climate-resilientcrops

reach52 | HealthcareLeveragestechnologytoconnectunderserved,ruralcommunitiestoessentialhealthcaresupportanddiscountedmedicines

Mainland China

1

Hong Kong

1

Singapore

3

India

1

Indonesia

1

MotionECO | Energy & WasteManagementReduceskitchenwasteoilbyconvertingitintoenvironmentally-friendlybiofuels

Cha Tzu Tang | Retail & Consumer GoodsRevivingTaiwan'scamelliaoilculture andruralareasthroughretailingofbodycareproductsandedibleoils

Uwin Nonotech | Environment & Waste Management Offersenvironmentally-friendlye-wastetreatmenttechnology

Boaz International Education | EducationOffersspecialeducationneedsclassestodevelopindependentlearnersandimprove thestandardofteaching

Tanijoy | AgricultureEmpowerslocalsmallholderfarmersthroughagri-investments,end-to-endtechnicalassistance,andmarketaccessibility

Taiwan

2

https://www.dbs.com/careers/life-at-dbs/our-mission-values

Case studies

ii. Imparting financial knowledge at summer campWeorganisedaone-dayfinancialsummercampfor30studentsandsharedbasicconceptsoffinancialmarketsandbankingsystems.Interactivegameswereusedtosimulatethetradingmarket,allowingstudentstogethands-onexperience.

i. Plogging to save the planet Closeto250employeesandtheirfamilieswent“plogging”,amashupofjoggingandtheSwedish“plockaupp”(meaningtopickup),toadvocate“Recyclemore,Wasteless”. The4kmjog,whichincludedthepickingup oflitter,startedandendedatDBSTower.

i. Educating youths to live fulfilled lives WeextendedsupporttothePothukuchiSomasundaraSocialWelfareandCharitableTrustforthesecondyear,sponsoringpolytechnicdiplomaeducationfor80youngwomen. ThisiscoupledwithPoPvolunteersengagingthestudentsthroughouttheyearandprovidingthemwithcareerguidanceandvaluablelifeskills.

ii. Stopping Mumbai mangrove erosion Asacitybuiltonreclaimedlandwithheavyrainfall,theMumbaicoastlineispronetoerosion.Mangrovesareanimportantpartoftheecosystem,andwepartneredUnitedWayMumbaiin2015tolaunchMissionMangrovestorestoreMumbai’sdepletingmangroves.InSeptember2019,ouremployeesplanted200saplingsoftheRhizophoramanglespeciesandtheemployeespledgedtheircontinued supportforthemangroveproject.

China India

Hong Kong

Taiwan

39 40DBS Sustainability Report 2019 Pillar 3: Creating social impact


ii. Implementing “Plant more, pollute less” IncommemorationofInternationalVolunteerDay2019,anestimated320volunteers,includingtheseniormanagementteamandthelocalgovernment,plantedover650treesinPatriotForest,BekasiCity,WestJava.Theywerealsoengagedinpainting,installingsegregationwastebinsandpotteryclasses.

i. Saving the turtlesWevisitedtheTurtleConservationandEducationCentreinSeranganandlearnedthatsixoutofsevenspeciesofseaturtlesareeitherthreatenedorendangeredduetohumanactivities.Inadditiontopledgingtoreducetheuseofplasticsandtodisposeofthemproperly,thevolunteersalsovisitedtheconservatoryforsickseaturtlesandreleasedhealthybabyturtlesbackintothesea.

i. Contributing to a cleaner environmentWepartneredRE-THINK,oneofTaiwan’slargestnon-profitorganisationsthatchampionstheenvironmentalprotectionofseashores,toorganiseabeachclean-upatTaoyuanGuanyinBeachinAugust2019.Leveragingthepowerofsocialmedia,closeto3,000volunteerswereralliedfortheclean-up,including300DBSemployeesandtheirfamilies.Morethan14,450kg ofrubbishwascollectedduringthisone-dayevent.

ii. Raising public awareness on nature conservationWecollaboratedwithWildBirdSocietyofTaipei,anon-profitorganisationdedicatedtotheprotectionofwildbirdsandthenaturalenvironment.Awareness-raisingeventswereheldaspartofShilinCulturalFestivalovertwomonths,withmorethan80employeesvolunteeringatthefestival.Morethan60employees,includingtheseniormanagementteam,volunteeredatGuanduNatureParktohelpraisepublicawarenessonnatureconservationinTaiwan.

i. Teaming up for Marina Regatta “Race Against Time”Weteamedupyouthsandpersonswithdisabilitiestocompeteinthedragonboatrace.TheytrainedtogetherintheweeksleadinguptotheDBSMarinaRegattaCommunityRaceinJune2019.Thecompetitorswerealsohostedforlunchatthehospitalitysuiteonsite.

Asidefromracing,employeesalsohostedchildren,youthsandtheirfamiliesateco-themedmaze“RaceAgainstTime”,tolearnmoreaboutsustainabilityandtheenvironment.

ii. Celebrating our elderly and youthsWecelebratedtheInternationalDayofOlderPersonsandChildren’sDaywithourelderlyandyoungbeneficiariesfromLionBefriendersSeniorActivityCentresandLakesideFamilyServicesrespectively.

Over200PoPvolunteersparticipatedinvariousactivitieswith200elderlyfriends.Theytouredthecity,tookascenicrivercruisealongtheSingaporeRiver,playedexhilaratingarcadegamesandenjoyedpanoramicviewsofMarinaBayfromtheSingaporeFlyer.

OnChildren’sDay,ouremployeesbrought 50childrentotheScienceCentreandwatchedamovietitled“AdAstra”.

ii. Advocating the importance of active ageingWeparticipatedinaprogrammedesignedbyFoodlinkFoundation,alocalcharitydedicatedtocollectingsafe-to-eatsurplusfoodfromF&Boutletsfordeliverytothoseinneed.Inoneofthesessions,wejoinedafun-filledcookingsessionwiththeelderlyfromShamShuiPoIntegratedSocialServiceCentreoftheHongKongYoungWomen’sChristianAssociation.Thishelpedpromotetheimportanceofanutritiousdiettotheelderly,inanengagingway,aspartof oureffortstoadvocateactiveageing.

i. Beating the paradox of hunger and food wasteWecontinuedtosupportFoodAngel,alocalcharitableprojectthatpreparesnutritiousmealsanddistributesthemtounderprivilegedcommunities.Thevolunteeringprogrammewasinitiatedwiththeseniormanagementteamdonningapronsandhairnetstoprepare foodfortheneedy.Morethan 280employeesvolunteeredin thisprojectin2019.

Singapore

Indonesia

Geographic profit segmentation Information on employees

WecapturedandobtainedallinformationonemployeesfromGlobalHRManagementsystem.


Appendix

Group (in SGD million) 2019(1) 2018 (1) 2017

Profit before tax 7,583 6,659 5,175

Singapore 5,323 4,413 3,606

Hong Kong 1,718 1,612 1,185

Rest of Greater China 269 351 92

South and Southeast Asia 10 36 55

Rest of the World 263 247 237

Income tax expense charged to income statement 1,154 1,006 671

Tax as a percentage of profit before tax 15% 15% 13%

(1) Extracted from Note 45.2 of DBS Annual Report 2019 financial statements

Geographic profit segmentation

Type of contract2019 2018 2017

Female Male Total Female Male Total Female Male Total

Permanent of which: 14,356 13,009 27,365 13,828 11,772 25,600 13,005 10,591 23,596

Full time 14,276 13,006 27,282 13,747 11,768 25,515 12,932 10,588 23,520

Part time 80 3 83 81 4 85 73 3 76

Contract/ Temporary(1) 458 703 1,161 482 775 1,257 278 300 578

Total 14,814 13,712 28,526 14,310 12,547 26,857 13,283 10,891 24,174

Geography2019 2018 2017

Female Male Total Female Male Total Female Male Total

Singapore 6,764 5,340 12,104 6,649 5,044 11,693 6,417 4,545 10,962

Hong Kong 2,466 2,262 4,728 2,383 2,244 4,627 2,391 2,146 4,537

Rest of Greater China(2) 2,881 1,376 4,257 2,948 1,432 4,380 2,835 1,396 4,231

South and Southeast Asia(3) 2,573 4,545 7,118 2,205 3,650 5,855 1,524 2,638 4,162

Rest of the World(4) 130 189 319 125 177 302 116 166 282

Total 14,814 13,712 28,526 14,310 12,547 26,857 13,283 10,891 24,174

Geography2019 2018 2017

Permanent Contract/ Temporary Total Permanent Contract/

Temporary Total Permanent Contract/ Temporary Total

Singapore 12,003 101 12,104 11,567 126 11,693 10,844 118 10,962

Hong Kong 4,630 98 4,728 4,479 148 4,627 4,398 139 4,537

Rest of Greater China(2) 4,216 41 4,257 4,276 104 4,380 4,129 102 4,231

South and Southeast Asia(3) 6,212 906 7,118 4,989 866 5,855 3,960 202 4,162

Rest of the World(4) 304 15 319 289 13 302 265 17 282

Total 27,365 1,161 28,526 25,600 1,257 26,857 23,596 578 24,174

Table 1. Total number of employees by contract type and gender

Table 2. Total number of employees by geography and gender

Table 3. Total number of employees by geography and contract type

(1) Headcount on DBS’ payroll(2) Rest of Greater China includes Mainland China and Taiwan(3) South and Southeast Asia includes India, Indonesia, Malaysia, Vietnam, Thailand, Myanmar and Philippines(4) Rest of the World includes Australia, South Korea, Japan, Dubai, United States of America and United Kingdom

Information on employees

Information on employees43 44DBS Sustainability Report 2019

Table 4. Total number and rates of new employee hires and voluntary attrition by age group, gender and geography

2019Headcount Work force

mixNo. of

new hires(6)

New hire rate(7)

No. of voluntary attrition

Voluntary attrition rate(8)

By age group (x = age)x <= 30 7,343 26% 3,357 46% 1,307 20%

30 < x < 50 18,254 64% 3,001 16% 1,907 11%

x >= 50 2,929 10% 149 5% 142 5%

By genderFemale 14,814 52% 2,778 19% 1,618 12%

Male 13,712 48% 3,729 27% 1,738 14%

By geographySingapore 12,104 42% 1,904 16% 1,230 10%

Hong Kong 4,728 17% 1,062 22% 716 16%

Rest of Greater China(9) 4,257 15% 979 23% 673 16%

South and Southeast Asia(10) 7,118 25% 2,499 35% 705 13%

Rest of the World(11) 319 1% 63 20% 32 11%

Total 28,526 100% 6,507 23% 3,356 13%

2018Headcount Work force mix No. of

new hires(6)

New hire rate(7)




30 < x < 50 17,280 64% 3,881 22% 2,144 13%

x >= 50 2,688 10% 170 6% 141 6%

By genderFemale 14,310 53% 3,678 26% 1,923 14%

Male 12,547 47% 4,050 32% 1,728 15%


Hong Kong 4,627 17% 1,165 25% 819 19%

Rest of Greater China(9) 4,380 16% 1,383 32% 687 16%


Rest of the World(11) 302 1% 73 24% 28 10%

Total 26,857 100% 7,728 29% 3,651 15%

2017Headcount Work force

mixNo. of

new hires(6)

New hire rate(7)




30 < x < 50 15,545 64% 3,199 21% 1,482 10%

x >= 50 2,467 10% 208 8% 89 3%

By genderFemale 13,283 55% 3,001 23% 1,505 12%

Male 10,891 45% 3,041 28% 1,385 14%


Hong Kong 4,537 19% 1,163 26% 721 17%

Rest of Greater China(9) 4,231 18% 1,619 38% 580 16%


Rest of the World(11) 282 1% 53 19% 21 8%

Total 24,174 100% 6,042 25% 2,890 13%

2019SVP to MD Analyst to VP Senior Officer

and Below (14)

Total

Headcount (12)(13) 2,405 20,187 5,934 28,526

By genderFemale 40% 50% 63% 52%

Male 60% 50% 37% 48%

By age group (x = age)x <= 30 0% 24% 42% 26%

30 < x < 50 75% 67% 49% 64%

x >= 50 25% 9% 9% 10%

2018Headcount 2,076 18,559 6,222 26,857


Male 60% 49% 37% 47%


30 < x < 50 70% 66% 49% 63%

x >= 50 30% 10% 10% 11%

2017Headcount 1,800 16,807 5,567 24,174


Male 62% 48% 31% 45%


30 < x < 50 74% 68% 50% 64%

x >= 50 26% 9% 10% 10%

Table 5. Breakdown of employees by employee category according to gender and age group

(5) The tables exclude involuntary termination as well as contract, temporary and agency staff attrition(6) Headcount and new hires include permanent, contract and temporary employees, and excludes agency employees(7) New hire rate is computed based on number of new hires divided by headcount at the end of the year(8) Voluntary attrition rate is computed based on number of voluntary attrition divided by monthly average headcount for permanent employees only(9) Rest of Greater China includes Mainland China and Taiwan(10) South and Southeast Asia includes India, Indonesia, Malaysia, Vietnam, Thailand, Myanmar and Philippines(11) Rest of the World includes Australia, South Korea, Japan, Dubai, United States of America and United Kingdom(12) Headcount and new hires include permanent, contract and temporary employees, and excludes agency employees(13) Includes Singapore, Hong Kong, Rest of Greater China, South and Southeast Asia and Rest of the World(14) Includes all contract/ temporary employees

Appendix

Information on environmental footprint 10 Principles of UN Global Compact45 46DBS Sustainability Report 2019

Information onenvironmental footprint

2019(1) Singapore Hong Kong China Taiwan India Indonesia Total(2)

Energy

Total energy consumption (MWh)(3) 63,688 10,919 3,782 8,256 7,268 8,984 102,897

(a) From non-renewables (MWh) 63,129 10,919 3,782 8,242 7,268 8,975 102,315

(b) From renewable production (MWh) 559 0 0 14 0 9 582

Purchased Renewable Energy Certificates (MWh)(4) 14,000

Emissions

Total emissions (tCO2e)(4)(5) 34,543 9,752 2,409 4,397 7,408 8,386 66,895

(a) Scope 1 emissions (tCO2e)(6) 136 256 101 4 191 859 1,547

(b) Scope 2 emissions (tCO2e)7)

i. Gross (location-based) 18,652 7,062 2,107 3,951 4,850 5,688 42,310

ii. Net (market-based) 18,652 7,062 0 3,951 4,850 5,688 40,203

(c) Scope 3 emissions (tCO2e)(8) 15,755 2,434 201 442 2,367 1,839 23,038

Water

Total water consumption (m3)(9) 76,462 2,097 5,106 48,869 24,146 44,121 200,801

Waste

Total waste generated (tonnes)(10) 904 195 62 80 63 117 1,421

(1) In 2019, we expanded the scope of our data collection. The additional data collected was not available for 2018. Accordingly, we do not provide comparative figures for 2018(2) Our six key markets constitute more than 96% of our physical space and other locations are excluded(3) Energy consumption includes purchased electricity, purchased chilled water cooling to buildings and outsourced data centre energy usage including cooling of outsourced

data centres, combusted energy on site. Some sites have cooling energy included in the rent and these sites’ cooling energy were estimated based on similar site’s cooling consumption in the same climate zone and market. Chilled water data and some other cooling energy data is excluded in offices and branches where landlords do not provide data and reliable estimates are not possible. Excluded data encompasses cooling equipment energy and chilled water from China branches and offices, Indonesia branches and offices, some India branches, Hong Kong branches and offices, and Taiwan branches and offices

(4) All our emissions are calculated on a gross basis which is aligned to location-based approach. Under the market-based approach, our net scope 2 emissions in China will be reduced to zero. This is because we have purchased RECs, and the stated project was a wind farm in China. We procure RECs in markets we operate

(5) Follows the requirements of GHG Protocol Corporate Standard and GHG Corporate Value Chain Standard and use operational control to consolidate GHG emissions. The global warming potential rates follow GHG Protocol as well

(6) Scope 1 emissions include direct carbon emissions from backup diesel generators, LPG from kitchens; as well as fugitive emissions from fire retardants and refrigerants including FM200, SF6, R-410a, R-22, R-134a, R-132, and NOVEC-1230 – all converted to CO2 equivalent. The source of emission factors is Intergovernmental Panel on Climate Change (IPCC)

(7) Scope 2 emissions include purchased electricity, purchased chilled water energy – converted using efficiencies from the central chilled water suppliers, energy for cooling offices and branches. They are converted to CO2 equivalents using GOV.UK. (last updated 18 July 2018) Greenhouse gas reporting: conversion factors 2018 and other local grid emission factors

(8) Scope 3 emissions include outsourced shuttle bus travel, employee air travel as arranged by American Express travel agency and energy used in outsourced data centres. The source of emission factors is IPCC and Department for Environment, Food and Rural Affairs

(9) We assume water consumption is equivalent to water withdrawal by source. 99.4% of our water comes from municipal sources and 0.6% comes directly from wells. Water provided to common space by landlords in leased properties (e.g. branches in shopping malls) are excluded. Water consumption information is excluded from sites in China and Hong Kong where metering of tenanted spaces did not occur and reliable estimations were not possible. Sites in Indonesia where well water is extracted was metered starting in December 2019, whose data is included from that month only

(10) Total waste generated includes only waste that are collected by our appointed collectors. 52% is sent to incineration, 16% is sent to the landfill, 30% is recycled and 2% is composted. Recycled waste includes paper, metal, plastic, and glass, but excludes both e-waste recycling and all reuse of materials. Waste information is also excluded from sites where data collection was impossible including rural sites in India. Waste disposal method has been determined by geographic location which defaults to the only disposal methods available in each market

Principles Report section Report page

Human Rights

Principle 1 Businessesshouldsupportandrespecttheprotectionofinternationallyproclaimedhuman rights

• Responsiblefinancing• Sustainable

procurement 15and32

Principle 2 Makesurethattheyarenotcomplicitinhumanrightsabuses

Labour

Principle 3 Businessesshouldupholdthefreedomofassociationandtheeffectiverecognitionoftherighttocollectivebargaining

• GRIContentIndex 48

Principle 4 Eliminationofallformsofforcedandcompulsorylabour • Responsiblefinancing• Sustainable

procurement15and32

Principle 5 Effectiveabolitionofchildlabour

Principle 6 Eliminationofdiscriminationinrespectofemploymentandoccupation • Diversityandequalopportunity 30

Environment

Principle 7 Businessesshouldsupportaprecautionaryapproachtoenvironmentalchallenges • ClimateChange• Sustainable

procurement• Managingour

environmentalfootprint

18,32and33Principle 8 Undertakeinitiativestopromotegreaterenvironmentalresponsibility

Principle 9 Encouragethedevelopmentanddiffusionofenvironmentallyfriendlytechnologies

Anti-corruption

Principle 10 Businessesshouldworkagainstcorruptioninallitsforms,includingextortionand bribery

• Preventingfinancial crime 26

10 Principles of UN Global Compact

Appendix

Mapping to GRI Standards GRI Content Index47 48DBS Sustainability Report 2019

No. ESG matters Coverage GRI Titles/ Aspects Topic boundaries

Pillar 1: Responsible banking

1 Responsible financing• ESGriskassessment • Humanrightsassessment

• Productportfolio(FinancialServicesSectorDisclosure)

• Customers• Shareholders• Society

2 Climate change• Low-carbontransition• TaskForceonClimate-related

FinancialDisclosures(TCFD)

• Emissions • Employees• Customers• Society

3 Financial inclusion

• Sustainabledevelopment• Accesstofinancialservices

• Indirecteconomyimpacts• Productandservicelabelling

(FinancialServicesSectorDisclosure)

• Localcommunities(FinancialServicesSectorDisclosure)

• Customers• Employees• Society

4 Fair dealing

• Productsuitability• Grievancemanagement

• Marketingandlabelling• Productandservicelabelling

(FinancialServicesSectorDisclosure)

• Customers• Employees• Regulatorsandpolicymakers• Shareholders• Society

5 Cyber security • Cybersecurity• Regulatorycompliance

• Customerprivacy • Customers• Employees• Regulatorsandpolicymakers• Shareholders6 Data governance

• Responsibleuseandprotection ofdata

• Regulatorycompliance

7 Preventing financial crime

• Anti-moneylaundering• Counteringthefinancing

of terrorism• Fraud• Anti-briberyandcorruption• Regulatorycompliance

• Anti-corruption • Customers• Employees• Regulatorsandpolicymakers• Shareholders• Society

Pillar 2: Responsible business practices

8 Talent management and retention

• Talentdevelopment• Training

• Employment• Trainingandeducation

• Employees

9 Diversity and equal opportunity

• Anti-discrimination• Diversity

• Diversityandequalopportunity • Employees

10 Workplace well-being • Medicalcoverage• Mentalhealth• Workplacehealthandsafety

• Occupationalhealthand safety • Employees

11 Sustainable procurement • Supplierassessments• Sustainablesourcingprinciples

• Supplierenvironmentalstandard• Suppliersocialassessment• Humanrightsassessment

• Society

12 Managing our environmental footprint

• Energyconsumption• Waterconsumption• Carbonemissions• Wastegeneration

• Energy• Water• Emissions• Effluentsandwaste

• Employees• Society

13 Responsible tax management • Regulatorycompliance • Economicperformance • Regulatorsandpolicymakers

• Shareholders• Society

Pillar 3: Creating social impact

14 Social entrepreneurship • Supportforsocialenterprises • IndirecteconomicImpacts• Localcommunities


15 Employee volunteerism• Volunteerism • Localcommunities

• Productandservicelabelling (FinancialServicesSectorDisclosure)


Mapping to GRI Standards

GRI Standards Disclosure requirement Where have we disclosed this? Externally

assured?

General Disclosures

GRI 102: General Disclosures 2016

102-1 Nameoftheorganisation DBSGroupHoldingsLtd

102-2 Activities,brands,productsand services Howwecreatevalue–ourbusinessmodel,AnnualReportpage66.

102-3 Locationofheadquarters 12MarinaBoulevard MarinaBayFinancialCentreTower3 Singapore018982

102-4 Locationofoperations DBSisaleadingfinancialservicesgroupinAsia,headquarteredinSingaporewitha presencein18markets.

102-5 Ownershipandlegalform PubliclimitedcompanylistedontheSingaporeExchange.

102-6 Marketsserved DBShasagrowingpresenceinthethreekeyAsianaxesofgrowth: GreaterChina,Southeast AsiaandSouthAsia.

102-7 Scaleoftheorganisation Informationonemployees,page42. Financialstatements,AnnualReportpage116.

102-8 Informationonemployeesandotherworkers

Informationonemployees,page42.

102-9 Supplychain Sustainableprocurement,page32.

102-10 Significantchangestotheorganisationanditssupplychain

Therewerenosignificantchangestoourorganisationalprofileandsupplychainduringthe reportingperiod.

102-11 PrecautionaryPrincipleor approach Wedonotexplicitlyrefertotheprecautionaryapproachorprincipleinourriskmanagement framework.

102-12 ExternalInitiatives Commitmentsandmemberships,page58.

102-13 Membershipofassociations Commitmentsandmemberships,page58. KeymembershipsincludeInstituteofInternationalFinanceandtheAssociationof Banksin Singapore.

102-14 Statementfromsenior decision-maker

CEOmessage,page4.

102-16 Values,principles,standardsandnormsofbehaviour

TheDBSCodeofConduct(CodeofConduct),AnnualReportpage59.

102-18 GovernanceStructure Corporategovernance,AnnualReportpage44. Governance,page9.

102-40 Listofstakeholdergroups Stakeholderengagement,page11.

102-41 Collectivebargainingagreements OurhouseunioninSingapore,theDBSStaffUnion,isanaffiliateoftheNationalTradesUnionCongress.Asat31December20191,422ofouremployeesareeligibleforcollectivebargainingundertheMemorandumofUnderstandingbetweenDBSandDBSStaffUnion.Wedonothaveunionsinothermarkets.Inaddition,twoemployeeswhoareofficersandbelowinDBSVickersareeligibleforcollectivebargainingundertheCollectiveAgreementbetweenDBSVickersandTheSingaporeManualandMercantileWorkers’Union.

102-42 Identifyingandselecting stakeholders

Stakeholderengagement,page11.102-43 Approachtostakeholder engagement

102-44 Keytopicsandconcernsraised

102-45 Entitiesincludedinconsolidatedfinancialstatements

Subsidiariesandconsolidatedstructuredentities,AnnualReportpage145. Associates,AnnualReportpage146.

102-46 Definingreportcontentandtopic boundaries

Reportingprinciples,page2. MappingtoGRIStandards,page47.

102-47 ListofGRItopics MappingtoGRIStandards,page47.

102-48 Restatementsofinformation Responsiblefinancing,page15. Managingourenvironmentalfootprint,page33.

102-49 Changesinreporting MaterialESGmatters,page10.Digitalfinancewassubsumedinto FinancialInclusion.

102-50 Reportingperiod Coverage,page2.

GRI Content Index

Appendix

GRI Content Index49 50DBS Sustainability Report 2019


assured?

Material Topics

GRI 200 Economic Standard Series

Economic Performance

GRI 103: Management Approach 2016

103-1 Explanationofmaterialtopicanditsboundary

CFOstatement,AnnualReportpage20.

Howwecreatevalue–ourbusinessmodel,AnnualReportpage66.

Howwedistributevaluecreated,AnnualReportpage70.

Geographicalsegmentreporting,AnnualReportpage182.

Responsibletaxmanagement,page34.

103-2 Themanagementapproachandits components

103-3 Evaluationofthemanagement approach

GRI 201: Economic Performance 2016

201-1 Directeconomicvaluegeneratedand distributed

Indirect Economic Impacts



Financialinclusion,page21.

Socialentrepreneurship,page36.103-2 Themanagementapproachand

its components


GRI 203: Indirect Economic Impacts 2016

203-2 Significantindirecteconomic impact

Anti-Corruption



Preventingfinancialcrime,page26.



GRI 205: Anti-Corruption 2016

205-2 Communicationandtrainingaboutanti-corruptionpoliciesand procedures

205-3 Confirmedincidentsofcorruptionandactionstaken


assured?

General Disclosures102-51 Dateofmostrecentreport 31December2019

102-52 Reportingcycle Annual

102-53 Contactpointforquestionsregardingthereport

Feedback,page2.

102-54 ClaimsofreportinginaccordancewiththeGRIStandards

Aboutthisreport,page2.

102-55 GRIcontentindex GRIContentIndex,page48.

102-56 Externalassurance Assurancestatement,page61.


assured?

GRI 300 Environmental Standard Series

Energy


103-1 Explanationofmaterialtopicand itsboundary

Managingourenvironmentalfootprint,page33.

Informationonenvironmentalfootprint,page45.103-2 Themanagementapproach

and its components


GRI 302: Energy 2016

302-1 Energyconsumptionwithinthe organization

302-4 Reductionofenergyconsumption

Water





and its components


GRI 303: Water 2016

303-1 Waterwithdrawalbysource

Emissions



Climatechange,page18.



and its components


GRI 305: Emissions 2016

305-1 Direct(Scope1)GHGEmissions

305-2 Energyindirect(Scope2)GHG emissions

305-3 Otherindirect(Scope3)GHG emissions

Effluents and Waste





and its components


GRI 306: Effluents and Waste 2016

306-2 Wastebytypeanddisposal method

Supplier Environmental Standard



Sustainableprocurement,page32.

103-2 Themanagementapproachand its components


GRI 308: Supplier Environmental Standard 2016

308-1 Newsuppliersthatwerescreenedusingenvironmental criteria

308-2 Negativeenvironmentalimpactsinthesupplychainand actions taken

Appendix

GRI Content Index51 52DBS Sustainability Report 2019


assured?

GRI 400 Social Standard Series

Employment



Talentmanagementandretention,page28.

Informationonemployees,page42.103-2 Themanagementapproachandits

components

103-3 Evaluationofthemanagementapproach

GRI 401: Employment 2016

401-1 Newemployeehiresandemployeeturnover

Occupational Health and Safety



Workplacewell-being,page31.

103-2 Themanagementapproachanditscomponents

103-3 Evaluationofthemanagementapproach

GRI 403: Occupational Health and Safety 2018

403-6 Promotionofworkerhealth

Training and Education



Talentmanagementandretention,page28.



GRI 404: Training and Education

404-1 Averagehoursoftrainingperyearperemployee

404-2 Programsforupgradingemployeeskillsandtransitionassistanceprograms

404-3 Percentageofemployeesreceivingregularperformanceandcareerdevelopmentreviews

Diversity and Equal Opportunity



Boardofdirectors,AnnualReportpage4.

Diversityandequalopportunity,page30.

Informationonemployees,page42.103-2 Themanagementapproachand

its components


GRI 405: Diversity and Equal Opportunity 2016

405-1 Diversityofgovernancebodiesand employees

405-2 Ratioofbasicsalaryandremunerationofwomentomen

Human Rights Assessment



Responsiblefinancing,page15.

Sustainableprocurement,page32.103-2 Themanagementapproachand

its components


GRI 412: Human Rights Assessments 2016

412-1 Operationsthathavebeensubjecttohumanrightsreviewsorimpact assessments


assured?

Local Communities



Socialentrepreneurship,page36.

Employeevolunteerism,page38.103-2 Themanagementapproachand

its components


GRI 413: Local Communities 2016

413-1 Operationswithlocalcommunityengagement,impactassessments,anddevelopmentprograms

Supplier Social Assessment



Sustainableprocurement,page32.



GRI 414: Supplier Social Assessment 2016

414-1 Newsuppliersthatwerescreenedusingsocialcriteria

414-2 Negativesocialimpactsinthesupplychainandactionstaken

Public Policy



Preventingfinancialcrime,page26.



GRI 415: Public Policy 2016

415-1 Politicalcontributions

Marketing and Labelling



Fairdealing,page23.



GRI 417: Marketing and Labelling 2016

417-2 Incidentsofnon-compliance concerningproductandserviceinformationandlabelling

Customer Privacy



Cybersecurity,page23.

Datagovernance,page25.103-2 Themanagementapproachandits

components


GRI 418: Customer Privacy 2016

418-1 Substantiatedcomplaintsconcerningbreachesofcustomerprivacyandlossesofcustomerdata

Socioeconomic Compliance



Therewerenomaterialinstancesofnon-compliancewithlawsandregulationsinthiscontextduringtheyear.



GRI 419:Socioeconomic Compliance

419-1 Non-compliancewithlawsandregulationsinthesocialandeconomicarea

Appendix

Mapping to Sustainability Accounting Standards Board (SASB) standards53 54DBS Sustainability Report 2019


assured?

GRI G4 Financial Sector Disclosures

Product Portfolio

FS1 Policieswithspecificenvironmentalandsocialcomponentsappliedtobusinesslines


FS2 Proceduresforassessingandscreeningenvironmentalandsocialrisksinbusinesslines

FS3 Processesformonitoringclients’implementationofandcompliancewithenvironmentalandsocialrequirementsincludedinagreementsortransactions

FS4 Process(es)forimprovingstaffcompetencytoimplementtheenvironmentalandsocialpoliciesandproceduresasappliedtobusinesslines

FS5 Interactionswithclients/investees/businesspartnersregardingenvironmentalandsocialrisksand opportunities

Stakeholderengagement,page11.


Local Communities

FS14 Initiativestoimproveaccesstofinancialservicesfordisadvantaged people


Product and Service Labelling

FS15 Policiesforthefairdesignandsaleoffinancialproductsandservices

Fairdealing,page23.

FS16 Initiativestoenhancefinancialliteracybytypeofbeneficiary


Employeevolunteerism,page38.

GRI Content Index

Mapping to Sustainability Accounting Standards Board (SASB) standards

Principles Material issue Where have we disclosed this? Report page

Commercial banks

Datasecurity • Datagovernance SustainabilityReport,page25.

Financialinclusion&capacitybuilding • Financialinclusion SustainabilityReport,page21.

Incorporationofenvironmental,social,andgovernancefactorsincreditanalysis

• Responsiblefinancing• Climatechange

SustainabilityReport,page15 and18.

Businessethics • Fairdealing• Preventingfinancialcrime


Systemicriskmanagement • Riskmanagement• Capitalmanagementandplanning

AnnualReport,page76and95.

Consumer finance

Customerprivacy • Datagovernance SustainabilityReport,page25.

Datasecurity • Datagovernance SustainabilityReport,page25.

Sellingpractices • Fairdealing SustainabilityReport,page23.

Mortgage finance

Lendingpractices • Riskmanagement AnnualReport,page76.

Discriminatorylending • Fairdealing SustainabilityReport,page23.

Environmentalrisktomortgagedproperties • Responsiblefinancing• Climatechange


OurapproachtotheaboveSASBidentifiedsustainabilitytopicsaredescribedinourAnnualandSustainabilityReports2019.CertaindisclosuresintheSASBstandardsarespecifictoUSregulationsanddonotapplydirectlytoDBS’activities.NotalldisclosuressuggestedbySASBhavebeenprovided.

Appendix


Data collectionTCFDrecommendsthatcompaniesreporttheirScope1,2and3greenhousegasemissions.ThesetermsareelaboratedonintheGreenhouse GasProtocolCorporateStandard(1).

ReadmoreaboutDBS’emissionsin“Informationonenvironmentalfootprint”onpage45.

ThelargestpartofourScope3emissionsarisefromourloanstocorporatecustomers.Todeterminetheseemissions,dataforcustomers’ Scope1and2emissionsisrequired.Thisdataisnotreadilyavailableforalllistedcompaniesandrarelyavailableforunlistedones.Thispresents achallengeforourdatacollection.

Wecommissionedaglobally-recognisedindependentenvironmentalconsultancytodevelopamethodologyandextractdataforthepilotstudycovering368(2018:303)listedcompaniesinourcorporatelendingbusiness.ThedatawasasatJune2019,whenthestudycommenced.

Dataforcustomers’Scope1and2emissionsandrevenuewasbasedonthelatestavailableinformation,whichoftenwasforDecember2018, fromexternalsourcessuchasannualreports,regulatoryfilingsandtheCarbonDisclosureProjectdatabase.

ForcustomerswithpartialornoScope1and2emissionsdisclosure,theenvironmentalconsultancybenchmarkedthemwithlistedcompaniesbelievedtohavethemostsimilarenergyproductionfacilities,takingintoaccounttechnologyandlocation.

In2018,wedisclosedScope3emissionsapplyingtheprincipleofapportionment.TheuseofapportionmentindeterminingourScope3emissionsmightbeaffectedbyfactorsnotwithinourcontrolsuchasthecompany’senterprisevalue(2).In2019,wehavechosennottoapplyapportionment inordertogetamoredirectmeasureofourScope3emissions.

Carbon metricsWedisclosethefollowingcarbontorevenuemetrics:

Methodology on climate-related scenario – transition riskOurscenarioanalysisfocusedonpotentialcreditriskarisingfromclimate-relatedfactorsforthe368customersinthepilotstudy.Inadditiontolossesfromcreditcosts,ourportfoliomightalsobeaffectedbythelossoffuturerevenuestousfromcustomersthatmayhavebecomeeconomicallyunviable.

Weconsideredthepossibleincreaseincarbonpricesbyyear2030thatmayarisefromfuturecarbon-relatedregulation.Carbonpricingassigns amonetarycostoncarbon(infact,onallgreenhousegases)emissionsandservesasaproxyfortheimpactonthecashflowsofcustomersin ourlendingportfolio.

Weusedthreeclimate-relatedscenariosbasedonresearchbytheInternationalEnergyAgency(IEA)andtheOrganisationforEconomic Co-operationandDevelopment(3).

• Highcarbonpricescenario:Thisscenariorepresentstheimplementationofpoliciesbyyear2100thatareconsideredsufficienttoreducegreenhousegasemissionsinlinewiththegoaloflimitingthetemperatureincreaseto2°Cfrompre-industrialage.ThisisequivalenttothescenarioEnergyTechnologyPerspective–2DegreesScenario(ETP-2DS)with66%probabilityofstayingbelowa2°Cincrease.

No. Carbon Metrics Formulas Indications

1 Weightedaveragecarbonintensity(sectors)

∑n=customers

in sector

(DBS credit exposure to customer)i (Customer’s CO2e Scope 1 + 2)i

(DBS credit exposure to sector)n (Customer’s revenue)n*

i Expressestheaverageofcarbonefficiency(i.e.CO2e emissions embeddedinthegenerationofrevenue)atcustomerlevel,weightedbyDBScreditexposuretothecustomerasapercentageofDBScreditexposuretothesector.

2 Weightedaveragecarbonintensity(portfolio)

Expressestheaverageofcarbonefficiency(i.e.CO2e emissions embeddedinthegenerationofrevenue)atcustomerlevel,weightedbyDBScreditexposuretothecustomerasapercentageofDBScreditexposuretotheportfolio.

∑n=368

(DBS credit exposure to customer)i (Customer’s CO2e Scope 1 + 2)i

(DBS credit exposure to portfolio)n (Customer’s revenue)n*

i

(1) Source: https://ghgprotocol.org/corporate-standard (2) Enterprise value = Equity + Debt - Cash(3) Source: https://www.irena.org/DocumentDownloads/Publications/Perspectives_for_the_Energy_Transition_2017.pdf

Methodology for Task Force on Climate-related Financial Disclosures (TCFD)

• Mediumcarbonpricescenario:Thisscenarioassumesthatpolicieswillbeimplementedtoreducegreenhousegasemissionsandlimit climatechangetoa2°Cincreaseinthelongterm,butwithactiondelayedintheshortterm.ThisisequivalenttoahybridbetweenETP-2DSandNewPoliciesScenario(NPS).ForecastfuturecarbonpricesundertheETP-2DSscenariohavebeenscaleddownbasedonevaluationsofNationallyDeterminedContributionsbyClimateActionTracker(4).ThemediumscenarioassumesthatcarbonpriceswillrisetolevelsconsistentwiththeETP-2DSscenarioinallcountriesby2050.

• Low-carbonpricescenario:Thisscenarioconsidersbroadpolicycommitmentsandplansannouncedbycountries,includingpledgestoreducegreenhousegasemissionsandphaseoutfossilfuelsubsidies,evenifthemeasurestobeimplementedhaveyettobeidentifiedorannounced.PricesinthisscenarioareconsideredtobeinsufficienttoachievethegoalsoftheParisAgreement.Theimportantsecondaryeffectsonchangestothenaturalenvironmentareconsideredinthisscenarioonlyqualitatively.ThisisequivalenttotheIEANPSscenario.

Wesubjectedanumberofthesecustomers,asampleofmorethan60%ofthe368companies,toourcreditriskmodelstoevaluatetheirpotentialcreditdeteriorationarisingfromtheimpactofhighercarboncostontheircashflows.

Methodology on climate-related scenario – physical riskOurscenarioanalysisfocusedonphysicalriskarisingfromclimate-relatedfactorsforthe368customersinthepilotstudy.Sevenclimatehazardindicatorswereconsidered.

Climate hazard indicator

Analysis metric Indicator definition Data sources

1 Waterstress Waterstressindex Projectedfutureratioofwaterwithdrawalstototalrenewablewatersupplyinagivenarea.

WorldResourcesInstitute(WRI)Aqueduct(5)

2 Flood Inundationdepth Theextentanddepthofpluvialandfluvialfloodingatagivenlocationinagivenyear

WRIAqueduct

3 Heatwave Heatwavedays Theoccurrenceofperiodsofextremeheatrelativetolocalclimaticconditions,measuredbasedontheExcessHeatFactor.

CoupledModelIntercomparisonProject5(CMIP5)multi-modelaverage(6)

4 Coldwave Coldwavedays Theoccurrenceofextremecoldrelativetolocalclimaticconditions,measuredbasedontheExcessColdFactor.

CMIP5multi-modelaverage

5 Hurricane Hurricaneindex Compositeindexrepresentingthehistoricalincidenceandseverity/strengthofhurricane,typhoonorcycloneactivityatagivenlocation,weightedinfavourofrecentevents.

USNationalOceanicandAtmosphericAdministration(7)

6 Wildlife Burntarea Riskofwildfireoccurrencebylocationbasedonmodelledareaofburntvegetation.

CMIP5multi-modelaverage

7 Sealevelrise Inundationdepth Theextentanddepthofcoastalinundationduetosealevelriseatagivenlocationinagivenyear.

ClimateCentral(8)

Weusedthreeclimate-relatedscenariosbasedonIntergovernmentalPanelonClimateChangeRepresentativeConcentrationPathways(RCP)andinformedbytheTCFDtechnicalguidelines.

• Highclimatechangescenario(RCP8.5):Continuationofbusinessasusualemissionsgrowth.Thisscenarioisexpectedtoresultinwarming inexcessof4degreesCelsiusby2100.

• Moderateclimatechangescenario(RCP4.5):Strongmitigationactionstoreduceemissionstohalfofcurrentlevelsby2080.Thisscenariois morelikelythannottoresultinwarminginexcessof2degreesCelsiusby2100.

• Lowclimatechangescenario(RCP2.6):Aggressivemitigationactionstohalveemissionsby2050.Thisscenarioislikelytoresultinwarming oflessthan2degreeCelsiusby2100.

Globalclimatechangephysicalhazardmapswereproducedusingprojectedorhistoricalabsoluteriskofthesevenclimatehazardindicators, acrossthreeclimate-relatedscenariosandbyyear2030.Assetsofour368customers(whereinformationisavailable)weremappedtothese climatechangephysicalhazardmaps.Aphysicalriskassessmentmodelthenassignedabsoluteriskscoresfrom1(lowestrisk)to100(highestrisk)toeachassetbasedonlocationwithintheglobalclimatechangehazardmaps.Thephysicalriskscoreisintendedtorepresenttherelativelevelofriskforeachindicatorateachlocationrelativetoglobalconditionsacrossallscenariosandyear2030.

(4) Source: https://climateactiontracker.org/(5) Source: https://www.wri.org/applications/aqueduct/water-risk-atlas (6) Source: https://esgf-node.llnl.gov/projects/cmip5/(7) Source: https://oceanservice.noaa.gov/news/historical-hurricanes/ (8) Source: https://www.climatecentral.org/what-we-do/our-programs/sea-level-rise

Methodology for Task Force on Climate-Related Financial Disclosures (TCFD)

Appendix

https://ghgprotocol.org/corporate-standard

https://www.irena.org/DocumentDownloads/Publications/Perspectives_for_the_Energy_Transition_2017.pdf

https://climateactiontracker.org/

https://www.wri.org/applications/aqueduct/water-risk-atlas

https://esgf-node.llnl.gov/projects/cmip5/

https://oceanservice.noaa.gov/news/historical-hurricanes/

https://www.climatecentral.org/what-we-do/our-programs/sea-level-rise


China1. ChinaPreferredEmployeroftheYear

2018byZhaopin.com2. 2019UniversumChinaMost

AttractiveEmployers3. ExcellenceinDigitalHRManagement

Practicesby51Job.com4. TheMostPopularEmployerAward

recipientof2019AmericanUniversities’ChinaAssociationCareerFairs

5. “2019BestHRCenterofExcellence inGreaterChina”byHroot

6. KincentricBestEmployer2019

Hong Kong1. HumanResourcesAsiaRecruitment

Awards–BestRecruitmentInnovation2. HumanResourcesAsiaRecruitment

Awards–GrandWinnerCorporate HRTeam(threeyearsinarow)

3. HumanResourcesDistinctionAwards–HRInnovativeTeamoftheYear

India1. GreatPlaceToWork–India’s20Best

workplacesinBFSI2. Ranked#3forbanksinIndia,

Forbes’2019listofWorld’sBestBanks3. TISSCLOLeapvaultAward–

Diversity&InclusioninTraining4. 2019WorkingMotherandAVTAR

BestCompaniesforWomeninIndia (top100,fouryearsinarow)

Singapore1. LandTransportExcellenceAward2. RandstadMostAttractiveBanking&

FinancialServicesEmployerinSingapore3. SingaporeCorporateAwards4. 2019UniversumSingaporeMost

AttractiveEmployers-#4inBanking/Commercestudents

5. InstituteofBanking&FinanceWorkforceTransformationAward

6. KincentricBestEmployer2019

Indonesia1. HRExcellencebySWAMagazine,

Compensation&Benefitscategory2. SWAmagazine’sIndonesiaYoung

WomenFutureBusinessLeader20193. Ranked#10forbanksinIndonesia,

Forbes’2019listofWorld’sBestBanks4. IndonesiaHumanCapitalAward(IHCA),

TheMostOutstandingHuman CapitalDirector

5. IHCA,BestInWorkLifeIntegration6. IHCA,HumanCapitalOfTheYear,

#4inoverallcategories7. KincentricBestEmployer2019

Taiwan1. GlobalViewMagazineCSRAward2. HRAsiabyHRAsiaMagazine–

BestCompanytoWorkfor3. EmployerAwardoftheYearGoldABF4. KincentricBestEmployer2019

B. Human resources-related awards

A. Awards and indices

BloombergGEIIndex FTSE4GoodGlobalIndex

SustainabilityAward (BigCap)

SEC-CDLOutstandingand SEC-STATSAsiaPacific

(Services)

iEdgeSGESGIndices– LeadersIndexand TransparencyIndex

DJSI(AsiaPacific)SocialEnterpriseChampion oftheYear(Corporation)

BusinessLeadership inSustainability

(GreenBuildingOrganisation)

Selected ESG-related awards, indices and ratings

Asia Pacific, Global1. HRFestivalAsiaAwards–HRTechnology2. Efma-Accenture’sBankingInnovationoftheMonthawardforFebruary3. Efma-Accenture’sCustomerInsightandGrowthBankingInnovationawards–winnerintheBestAPACWorkforceExperiencecategory4. KincentricBestEmployer2019

Selected ESG-related awards, indice and ratings

C. Ratings

Carbon Disclosure Project

Dow Jones Sustainability Indices (RobecoSAM Score) MSCI Sustainalytics

Current Rating:B

January2020

Score:64,Percentile:73IncludedinDJSI(AsiaPacific)

September2019

Rating:AA

October2019

Score:67

August2019

Previous Rating:B

January2019

Score:69,Percentile:63IncludedinDJSI(AsiaPacific)

September2018

Rating:AA

December2018

Score:60

March2019

Digital:AdvisoryCouncilontheEthicalUseofArtificialIntelligence and Data

SustainableDigitalFinanceAlliance(SDFA)

UNSecretary-General’sTaskForceonDigitalFinancingoftheSDGs

Operational: RE100

UnitedforWildlifeFinancialTaskforce

Reporting:GlobalReportingInitiative(GRI)

IntegratedReporting<IR>

TaskForceonClimate-relatedFinancialDisclosures(TCFD)

Risk management:EquatorPrinciples

GreenInvestmentPrinciplesfortheBeltandRoad

Sustainable development:AsianVenturePhilanthropyNetwork

GlobalCompactNetworkSingapore(GCNS)

ThePrince’sAccountingforSustainability,Project(A4S)CircleofPracticeinSingapore

WorldBusinessCouncilforSustainableDevelopment(WBCSD)

UnitedNationsGlobalCompact(UNGC)

Commitments and memberships

Commitments and memberships

Appendix

https://www.imda.gov.sg/news-and-events/Media-Room/Media-Releases/2019/inaugural-meeting-of-the-advisory-council-on-the-ethical-use-of-artificial-intelligence-and-data

https://www.sustainabledigitalfinance.org/

https://digitalfinancingtaskforce.org/

http://there100.org/

https://www.unitedforwildlife.org/

https://www.globalreporting.org/Pages/default.aspx

https://integratedreporting.org/

https://www.fsb-tcfd.org/

https://equator-principles.com/

https://www.ukchinagreen.org/green-finance/green-belt-and-road/text-of-the-gip/

https://avpn.asia/

https://unglobalcompact.sg/

https://www.accountingforsustainability.org/content/dam/a4s/corporate/media/Launch%20Circle%20of%20Practice%20in%20Singapore.pdf

https://www.wbcsd.org/

https://www.unglobalcompact.org/


A4S ThePrince’sAccountingforSustainabilityProject

ABS TheAssociationofBanksinSingapore

AI ArtificialIntelligence

AI AccreditedInvestor

AML Anti-MoneyLaundering

BEPS BaseErosionandProfitShifting

BREEF BuildingRetrofitEnergyEfficiencyFinancing

CFT CombatingtheFinancingofTerrorism

CO2CarbonDioxide

CO2e CarbonDioxideEquivalent

CMIP5 CoupledModelIntercomparisonProject5

CRMs CreditRiskManagers

DBSF DBSFoundation

DFTF UNSecretary-General’sTaskForceonDigitalFinancingoftheSDGs

DJSI DowJonesSustainabilityIndex

DPTM DataProtectionTrustmark

DRA DynamicReviewAssessment

EDB EconomicDevelopmentBoardofSingapore

EDSF EnterpriseDataSecurityFramework

EFS EnterpriseFinancingScheme

EPs EquatorPrinciples

ESG Environmental,SocialandGovernance

ETP-2DS EnergyTechnologyPerspective–2DegreesScenario

F&B Food&Beverage

FAQs FrequentlyAskedQuestions

FDCC GroupFairDealingandConductCommittee

FDWs ForeignDomesticWorkers

FSC ForestStewardshipCouncil

FTSE FinancialTimesStockExchange

G20 Groupof20

GCNS GlobalCompactNetworkSingapore

GHG GreenhouseGases

GIP GreenInvestmentPrinciples

GRI GlobalReportingInitiative

GST GoodsandServicesTax

HR HumanResources

IBG InstitutionalBankingGroup

IMDA InfocommMediaDevelopmentAuthority

IEA InternationalEnergyAgency

IFC InternationalFinanceCorporation

IHCA IndonesiaHumanCapitalAward

IPCC IntergovernmentalPanelonClimateChange

IR IntegratedReporting

KHFC KoreaHousingFinanceCorporation

Abbreviations

Abbreviations

Appendix

MAS MonetaryAuthorityofSingapore

MSCI MorganStanleyCapitalInternational

NDPE NoDeforestation,NoPeat,NoExploitation

NGOs Non-GovernmentalOrganisations

NPS NewPoliciesScenario

NSPR NationalSustainableProcurementRoundtable

OECD OrganisationforEconomicCo-operationandDevelopment

OECD BEPS - OECD/G20 BaseErosionandProfitShiftingProjectReportsandActionPlans

PCSEA President’sChallengeSocialEnterpriseAwards

PoP PeopleofPurpose

PRIDE! Purpose-driven,Relationship-led,Innovative,Decisive,EverythingFun!

PURE Purposeful,Unsurprising,RespectfulandExplainable

raiSE SingaporeCentreforSocialEnterprise

RCP RepresentativeConcentrationPathway

RMs RelationshipManagers

RSPO RoundtableonSustainablePalmOil

SASB SustainabilityAccountingStandardsBoard

SDFA SustainableDigitalFinanceAlliance

SDGs SustainableDevelopmentGoals

SEs SocialEnterprises

SMEG TaiwanSMEsCreditGuarantee

SMEs SmallandMedium-SizedEnterprises

SSP SustainableSourcingPrinciples

TCFD TaskForceonClimate-relatedFinancialDisclosures

UN UnitedNations

UNESCO UnitedNationsEducational,ScientificandCulturalOrganisation

UNGC UnitedNationsGlobalCompact

VAT Value-AddedTax

WBCSD WorldBusinessCouncilforSustainableDevelopment

WLB2 Women’sLivelihoodBond2

WRI WorldResourcesInstitute

WWF WorldWideFundforNature


To the Board of Directors of DBS Group Holdings Ltd WehavebeenengagedbyDBSGroupHoldingsLtd(“DBS”)toundertakealimitedassuranceengagementinrespectoftheselectedsustainabilityinformationfromthe2019SustainabilityReportofDBSdescribedbelowfortheyearended31December2019 (“theIdentifiedSustainabilityInformation”).

Identified Sustainability InformationTherespectiveIdentifiedSustainabilityInformationfortheyearended31December2019issetoutbelow:

• GRI102-8: Informationonemployeesandotherworkers

• GRI102-9: Supplychain

• GRI102-41: Collectivebargainingagreements

• GRI201-1: Directeconomicvaluegeneratedanddistributed

• GRI205-2: Communicationandtrainingaboutanti-corruptionpoliciesandprocedures

• GRI302-1: Energyconsumptionwithintheorganisation

• GRI303-1: Waterwithdrawalbysource

• GRI305-1: Energydirect(Scope1)GHGemissions

• GRI305-2: Energyindirect(Scope2)GHGemissions

• GRI305-3: Otherindirect(Scope3)GHGemissions

• GRI306-2: Wastebytypeanddisposalmethod

• GRI308-1: Newsuppliersthatwerescreenedusingenvironmentalcriteria

• GRI401-1: Newemployeehiresandemployeeturnover

• GRI404-1: Averagehoursoftrainingperyearperemployee

• GRI404-3: Percentageofemployeesreceivingregularperformanceandcareerdevelopmentreviews

• GRI405-1: Diversityofgovernancebodiesandemployees

• GRI405-2: Ratioofbasicsalaryandremunerationofwomentomen

• GRI414-1: Newsuppliersthatwerescreenedusingsocialcriteria

Ourassuranceengagementwaswithrespecttotheyearended31December2019.Wehavenotperformedanyprocedureswithrespectto(i)earlierperiodsand(ii)anyotherelementsincludedinthe2019SustainabilityReportofDBS,andintheannualreport,websiteandotherpublications,andthereforedonotexpressanyconclusionthereon.

Reporting CriteriaTheIdentifiedSustainabilityInformationhasbeenassessedagainsttheGlobalReportingInitiative(“GRI”)SustainabilityReportingStandards2016(“theReportingCriteria”).

Management’s Responsibility for the Identified Sustainability InformationManagementofDBSisresponsibleforthepreparationoftheIdentifiedSustainabilityInformationinaccordancewiththeReportingCriteria.Theresponsibilityincludesdesigning,implementingandmaintaininginternalcontrolrelevanttothepreparationofIdentifiedSustainabilityInformationthatisfreefrommaterialmisstatement,whetherduetofraudorerror.

Practitioner’s Independence and Quality ControlWehavecompliedwiththeindependenceandotherethicalrequirementsoftheAccountingandCorporateRegulatoryAuthority(ACRA)CodeofProfessionalConductandEthicsforPublicAccountantsandAccountingEntities(ACRACode),whichisfoundedonfundamentalprinciplesofintegrity,objectivity,professionalcompetenceandduecare,confidentialityandprofessionalbehaviour.

OurfirmappliesSingaporeStandardonQualityControl1and,accordingly,maintainsacomprehensivesystemofqualitycontrolincludingdocumentedpoliciesandproceduresregardingcompliancewithethicalrequirements,professionalstandardsandapplicablelegalandregulatoryrequirements.

Independent limited assurance report on sustainability information

Practitioner’s ResponsibilityOurresponsibilityistoexpressalimitedassuranceconclusionontheIdentifiedSustainabilityInformationbasedontheprocedureswehaveperformedandtheevidencewehaveobtained.WeperformedourlimitedassuranceengagementinaccordancewithSingaporeStandardonAssuranceEngagements3000(Revised)–AssuranceEngagementsotherthanAuditsorReviewsofHistoricalFinancialInformation(“Standard”).ThisStandardrequiresthatweplanandperformourworktoformtheconclusionaboutwhethertheIdentifiedSustainabilityInformationisfreefrommaterialmisstatement.Theextentofourproceduresdependsonourprofessionaljudgmentandourassessmentoftheengagementrisk.

AlimitedassuranceengagementinvolvesassessingthesuitabilityinthecircumstancesofDBS’useoftheReportingCriteriaasthebasisforthepreparationoftheIdentifiedSustainabilityInformation,assessingtherisksofmaterialmisstatementoftheIdentifiedSustainabilityInformationwhetherduetofraudorerror,respondingtotheassessedrisksasnecessaryinthecircumstances,andevaluatingtheoverallpresentationoftheIdentifiedSustainabilityInformation.Alimitedassuranceengagementissubstantiallylessinscopethanareasonableassuranceengagementinrelationtoboththeriskassessmentprocedures,includinganunderstandingofinternalcontrol,andtheproceduresperformedinresponsetotheassessedrisks.

Theproceduresselectedincludedinquiries,observationofprocessesperformed,inspectionofdocuments,analyticalprocedures,evaluatingtheappropriatenessofquantificationmethodsandreportingpolicies,andagreeingorreconcilingwithunderlyingrecords.Giventhecircumstancesoftheengagement,wealsoperformedthefollowing:

• interviewedmanagementandpersonnelinGroupProcurementServices,GroupHumanResourcesandCorporateRealEstateStrategy&AdministrationinrelationtotheIdentifiedSustainabilityInformation;

• obtainedanunderstandingofhowtheIdentifiedSustainabilityInformationisgathered,collatedandaggregatedinternally;• performedlimitedsubstantivetesting,onaselectivebasis,oftheIdentifiedSustainabilityInformation(i)toverifytheassumptions,estimations

andcomputationsmadeinrelationtotheIdentifiedSustainabilityInformation;and(ii)tocheckthatdatahadbeenappropriatelymeasured,recorded,collatedandreported,totheextentweconsiderednecessaryandappropriatetoprovidesufficientevidenceforourconclusion;and

• assessedthedisclosureandpresentationoftheIdentifiedSustainabilityInformation.

Theproceduresperformedinalimitedassuranceengagementvaryinnatureandtimingfrom,andarelessinextentthanforareasonableassuranceengagement.Consequently,thelevelofassuranceinalimitedassuranceengagementissubstantiallylowerthantheassurancethatwouldhavebeenobtainedhadareasonableassuranceengagementbeenperformed.Accordingly,wedonotexpressareasonableassuranceopinionaboutwhetherDBS’IdentifiedSustainabilityInformationhasbeenprepared,inallmaterialrespects,inaccordancewiththeReportingCriteria.

Inherent Limitations Indesigningtheseprocedures,weconsideredthesystemofinternalcontrolsinrelationtotheIdentifiedSustainabilityInformationandreliancehasbeenplacedoninternalcontrolswhereappropriate.Becauseoftheinherentlimitationsinanyaccountingandinternalcontrolsystem,errorsandirregularitiesmayneverthelessoccurandnotbedetected.

ConclusionBasedontheprocedureswehaveperformedandtheevidencewehaveobtained,nothinghascometoourattentionthatcausesustobelievethattheIdentifiedSustainabilityInformationforthefinancialyearended31December2019isnotprepared,inallmaterialrespects,inaccordancewiththeReportingCriteria.

Purpose and Restriction on Distribution and UseThisreport,includingourconclusion,hasbeenpreparedsolelyforDBSinaccordancewiththeagreementbetweenus.Tothefullestextentpermittedbylaw,wedonotacceptorassumeresponsibilitytoanyoneotherthanDBSforourworkorthisreport.

Yoursfaithfully

PricewaterhouseCoopersLLP PublicAccountantsandCharteredAccountants

Singapore 5March2020

Independent limited assurance report on sustainability information

Appendix

World’s Best BankEuromoney, 2019

Bank of the Year – GlobalThe Banker, 2018

Best Bank in the WorldGlobal Finance, 2018

Top 10 Business Transformations of the Last DecadeHarvard Business Review, 2019

Bloomberg Gender-Equality IndexBloomberg, 2018-2020

FTSE4Good Global IndexFTSE Russell, 2017-2019

Dow Jones Sustainability Index (Asia-Pacic) S&P Dow Jones Indices/ RobecoSAM, 2018-2019

Social Enterprise Champion of the Year (Corporation)President’s Challenge/ raiSE, 2019

12 Marina BoulevardMarina Bay Financial Centre Tower 3Singapore 018982

(65) 6878 8888 | www.dbs.com

Co. Reg. No. 199901152M

facebook.com/dbs

twitter.com/dbsbank

DBS Group Holdings Ltd Sustainability Report 2019

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