Major Asian bank says it’s not practical to cut off clients with coal exposure in the short term

Major Asian bank says it’s not practical to cut off clients with coal exposure in the short term

SINGAPORE “” Singapore's largest bank DBS Group Holdings said it's not practical to cut off clients with coal exposure in the short term.DBS on Friday announced that it aims to eliminate thermal coal exposure by 2039.To get there, DBS will cease taking on new clients that derive more than 25% of their revenue from thermal coal with immediate effect. And from January 2026, the bank will stop financing clients with more than 50% of their revenue from thermal coal “” except for their non-thermal coal or renewable energy activities.Explaining the 50% threshold, DBS Chief Executive Piyush Gupta cited how it's "impossible" to expect energy majors BP, Exxon Mobil and Shell to reduce their oil business significantly in the next five years.

"Similarly the whole bunch of conglomerates that we deal with, for whom coal is one part of their business but they're increasingly trying to do other stuff, they're trying to build a renewable business, they're trying to get into other forms of activities," he told CNBC's "Squawk Box Asia" on Friday."For us to say that we won't deal with any client if your coal is more than 50% of business becomes very hard and that's just the practical reality. You