Singapore banks threaten to cut financing for firms linked to open burning and deforestation
Singapore banks say they will reduce or end funding for companies that breach zero-tolerance policies on open burning and deforestation amid heightened haze scrutiny.
Singapore’s major lenders - DBS, OCBC and UOB - warned they could scale back or sever financing for companies that break their zero-tolerance stance on open burning and deforestation, reflecting intensified scrutiny over the regional haze problem. OCBC’s group chief sustainability officer Mike Ng said evidence of breaches would trigger decisive action, including reduced support or relationship termination. DBS highlighted “No Deforestation, No Peat, No Exploitation” commitments, and UOB cited a sectoral palm-oil policy enforcing similar standards.
Their statements came after Senior Minister K Shanmugam urged banks to assess environmental and legal exposures linked to haze-related fires, noting possible regulatory and economic measures. Singapore has issued legal notices to ten Indonesian firms under the Transboundary Haze Pollution Act, and the Singapore Exchange has queried several listed agribusinesses. The Monetary Authority of Singapore’s supervisory role was also mentioned.
Why it matters
It shows how banks are leveraging credit decisions to push companies toward greener practices and curb haze-related pollution.
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