OCBC’s SME Sustainability Efforts Show Strong Growth in 2023
In 2023, OCBC saw significant growth in its sustainable financing for small and medium-sized enterprises (SMEs), doubling its loan book to over S$7 billion from S$3.3 billion in 2022. More than 1,200 SMEs across Singapore and Asia have now participated in the bank’s sustainable financing programs, with 80% of them coming from sectors such as clean transportation, renewable energy, energy efficiency, and the built environment.
Focus on Sustainability-Linked Loans (SLLs)
OCBC also aims to double the number of sustainability-linked loans (SLLs) granted to regional enterprises, growing from 24 in 2023 to more in 2024, up from just one in 2022. These loans require borrowers to meet sustainability performance targets during the loan term.
Growth Driven by Market Trends
OCBC’s head of global commercial banking, Linus Goh, noted that there has been a positive momentum for SMEs adopting sustainable practices, partly driven by pressure from larger companies and multinational firms tracking Scope 3 emissions—those generated throughout a company’s supply chain.
However, Goh acknowledged that education and awareness remain key barriers for many SMEs. OCBC is working to overcome these challenges by partnering with consultants and third-party verifiers, as well as offering webinars and information-sharing sessions to support SMEs in adopting sustainability practices.
Support for SMEs’ Sustainability Transition
Through its sustainability framework, launched in November 2020 and extended across Malaysia, Hong Kong, and Indonesia in 2022, OCBC is positioning itself to help SMEs build a sustainable future and avoid falling behind in the global move towards green business practices.
