Singapore’s banks are emerging as early movers in Asia’s protein transition, according to a new benchmark released by Asia Research & Engagement (ARE). The report, titled “Banking Asia’s Protein Transition: Financing the Shift Towards Responsible and Sustainable Food and Agriculture Systems,” evaluates 24 major banks across Southeast Asia and India. It highlights Singapore’s DBS, UOB, and OCBC for their responsible-lending frameworks and deforestation-exclusion principles, though none have set measurable financing targets for plant-based proteins or other sustainable initiatives.
The benchmark underscores the importance of aligning food and agriculture lending with climate and nature targets. Kate Blaszak, ARE’s Director of Protein Transition, stated, “This benchmark provides a constructive starting point for banks to build understanding of intersectional risks in this critical sector.”
Whilst Singaporean banks have made strides, the report identifies significant gaps in sustainable finance. It calls for enhanced transparency and increased support for plant-based proteins, humane production, and deforestation-free supply chains. The report also notes that banks in Malaysia, Thailand, Indonesia, the Philippines, and India are at varying stages of integrating sustainability into their frameworks.
ARE emphasises the potential for banks to drive sustainable food production by adopting comprehensive responsible lending frameworks. Blaszak added, “Banks that act early can reduce systemic risks and unlock new sources of value.” The report suggests that by learning from regional peers and international models, Asian banks can play a pivotal role in the protein transition.
