DBS, OCBC and UOB have launched a pioneering report to help banks understand the financial implications of nature-related risks, marking the first collaboration of its kind in Singapore with support from the Monetary Authority of Singapore (MAS).
The report, “Building capacity to identify and assess nature-related financial risks”, was developed in partnership with the University of Cambridge Institute for Sustainability Leadership (CISL) and aims to raise industry awareness while building internal capabilities to assess nature-related financial risks within lending portfolios.
The initiative is set against the backdrop of an increasing global focus on the financial consequences of biodiversity loss and ecosystem degradation, with more than half of the world’s GDP, estimated at $58tn, depending on nature. However, quantifying nature-related risks remains complex due to the varying relationships between nature, biodiversity and communities across regions. The report aims to address these complexities, helping banks identify nature-related dependencies and evaluate potential impacts on their loan books, while emphasising the need for further data, research and collaboration to refine measurement and risk tracking.
The study, which began in January 2024, examined the loan portfolios of DBS, OCBC and UOB, focusing on the food and agriculture sector across Southeast Asia, a sector that accounts for 11% of GDP in the region and is highly exposed to nature-related risks such as droughts and ecosystem degradation. The palm oil industry was selected as a pilot case to analyse hypothetical scenarios, revealing that upstream players are generally more sensitive to nature-related risks than integrated players, while financially stronger clients tend to be more resilient to short-term risks.
Monetary Authority of Singapore assistant managing director (development and international) and chief sustainability officer Gillian Tan said, “Nature-related risks are inherently location-specific, requiring a contextual lens to assess how localised events can translate into material impact for businesses and financial institutions. This study is a significant contribution to the industry’s understanding of the risks facing a sector that is both economically important in this region and key to global supply chains. We welcome the joint efforts by DBS, OCBC and UOB in addressing this complex area, leveraging the pioneering work of CISL in nature-related financial risks. Their collaboration will lead the way for the financial sector to take concrete steps towards channelling finance to nature-positive assets and activities.”
DBS chief sustainability officer Helge Muenkel said, “The health of our natural capital – forests, soils, oceans and biodiversity – is intrinsically linked not only to economic development, but also to human wellbeing. This is also true across Asia, where communities, livelihoods and food systems are closely intertwined with and dependent on nature. At DBS, we see the preservation and restoration of nature not just as an environmental and social priority, but as a risk and business imperative. It enhances food security, promotes healthier populations and lays the foundation for long-term, inclusive growth, while also protecting financial value. In this context, banks have a vital role to play in addressing the nature crisis, and we see it as an extension to our climate agenda. Building an understanding of nature-related risks and opportunities across our business is critical to tackling one of the most urgent challenges of our time.”
OCBC group chief sustainability officer Mike Ng said, “In light of Southeast Asia’s vulnerability to biodiversity loss and climate change, this is a timely pioneering study. Advancing our understanding of nature-related financial risks, starting with the food and agriculture sector, will serve us well as we support our clients in their transition by assessing emerging risks as well as harnessing opportunities for long-term value creation. In partnership with our clients, and through forward-looking industry collaborations such as this, OCBC is committed to contributing to inclusive and sustainable growth in the region.”
UOB chief sustainability officer Eric Lim said, “Southeast Asia’s economies and communities are highly dependent on nature and biodiversity. At UOB, we seek to understand and address nature-related risks and opportunities including those of our clients. This complements our commitment to decarbonisation and a just transition. Through meaningful partnerships and cross-sector collaboration, we aim to catalyse early conversations so that solutions can be unlocked to promote inclusive economic growth, while safeguarding the planet for future generations.”
Keep up with all the latest RegTech news here
Copyright © 2025 RegTech Analyst
Copyright © 2018 RegTech Analyst
