OCBC has granted a five-year 1.5°C loan to DKSH Holdings Ltd, marking a significant step in the company’s sustainability efforts. This CHF 100 million loan is the first time DKSH has tied its financing to emissions reduction targets validated by the Science Based Targets initiative (SBTi). It also incorporates a Scope 3 emissions intensity reduction target, a first for DKSH, as these emissions account for over 70% of its carbon footprint.
The loan, structured by OCBC as the sole lender and sustainability adviser, includes annual sustainability performance targets. These align with DKSH’s decarbonisation goals, such as reducing Scope 1 and 2 greenhouse gas emissions by 71.2% by 2030 from a 2020 base year, and cutting Scope 3 emissions by 61.1% per CHF of value added by 2033 from a 2024 base year.
Elaine Lam, Head of Global Corporate Banking at OCBC, highlighted the importance of linking financing to measurable climate targets, stating that DKSH’s commitment underscores its leadership in transitioning to a low-carbon economy. Ido Wallach, CFO of DKSH, noted that the transaction strengthens accountability for their climate commitments and embeds sustainability into their operations.
This initiative builds on DKSH’s previous climate achievements, including a 65% reduction in Scope 1 and 2 emissions by 2025 and significant use of renewable electricity. The loan proceeds will support DKSH’s corporate purposes and growth opportunities, furthering its net-zero journey.
