The year 2025 was a pivotal one. An unpredictable geopolitical and trade landscape, and breakthroughs in artificial intelligence across industries converged with more frequent and intense weather events, as well as large-scale demographic shifts defined by ageing populations and falling birth rates.
The impact of these developments was felt across the world, including in Asia Pacific where the megatrends of climate change and ageing societies have become top of mind for policymakers.
In 2020, the number of people aged 60 years and older surpassed the number of children under five years of age – marking a first in history. Asia mirrors this trajectory, with one in four projected to be over 60 years of age of by 2050 [1].
These numbers highlight the urgency of not just supporting older workers but also helping the younger generation plan for their future by empowering them to make sound financial decisions, plan for their retirement, and protect their future financial stability.
As a purpose-driven bank focused on improving lives, DBS Bank has long emphasised balancing social, economic and environment priorities in Asia across three key pillars – responsible banking, responsible business practices and impact beyond banking.
It also believes that meaningful progress on climate change, societal resilience and inclusion cannot be achieved by one institution alone and requires coordinated action from the entire ecosystem.
“Sustainability today is about focusing on what truly matters – delivering real-world outcomes at speed and scale that ultimately improve people’s lives. While geopolitical pressures, energy security concerns and competitiveness debates can create a perception that the global transition has stalled, the reality is that the electrotech revolution is already reshaping energy and industrial systems,” says Helge Muenkel, DBS’ chief sustainability officer.
Strong governance, targets and disclosure are essential foundations, but they are not enough on their own, he adds. “Progress depends on system-level collaboration. That is why DBS takes a whole-of-ecosystem, partnership-driven approach – combining disciplined risk management with innovative financing to support a just transition in Asia that is both socially impactful and financially resilient.”
Businesses play a vital role in addressing global challenges, given their ability to mobilise capital, technology and talent at scale. In addition to driving innovation, they also connect policymakers, investors and communities.
DBS exemplifies this by embedding purpose in its DNA, leveraging its banking capabilities to support decarbonisation, and uplifting the lives and livelihoods of vulnerable communities in Asia through its impact arm, DBS Foundation. Its philosophy of Doing Well by Doing Good continues to guide its sustainability and societal impact efforts.
Addressing Asia’s environmental imperative
In the past year, global momentum around climate commitments has seemingly waned amid political pushback in the US, exits from the Net-Zero Banking Alliance, and concerns around private sector pledges.
But the reality of climate change and broader social challenges has not changed. Rather, they have gotten worse. Asia witnessed this firsthand last year through significant natural disasters that led to large-scale loss of lives and livelihoods.
DBS is well aware of that and has set its sights on creating scalable solutions that are credible and impactful.
Muenkel highlights DBS’ work with the Monetary Authority of Singapore’s Transition Credits Coalition (Traction) which aims to create a new financial instrument called transition credits that will support the early and managed phase out of thermal coal power plants, replacing these with cleaner forms of energy. This cross-sector effort involves policymakers, financial institutions, industry and technical experts, with DBS co-leading a working group that is currently working on several pilot transactions, says Muenkel.
Such collaboration is essential to deliver systemic change and shows how cross-sector efforts can move beyond theory into practice.
DBS is also a leader in providing sophisticated and bankable sustainability solutions to corporates under its responsible banking pillar.
In April 2025, DBS anchored S$710 million of a landmark S$1.13 billion sustainability-linked loan (SLL) for One Raffles Quay, a premier office building in the heart of Singapore’s central business district.[2] This was one of the first SLLs in Singapore to tie financial incentives to the environmental performance of a single commercial complex.
The bank also partnered with hyperscale data centre developer AirTrunk for its S$2.25 billion green loan that came with an option to convert into an SLL over time. [3] This flexible structure reflects a longer-term approach to impact, and marked a milestone in sustainable digital infrastructure financing in the region.
DBS is also helping small and medium-sized enterprises with their sustainability efforts and providing them the right financing support for their transition plans.
Muenkel reckons the next frontier for growth in Asia is transition finance, and that it is essential to allocate capital to either shut down polluting assets early or support their transition to becoming greener.
“Asia’s transition will be complex, but with the right financing models, it can also be both profitable and transformative,” he says.
Ageing societies: from challenge to opportunity
That transformative impact on Asian societies is something to watch out for as populations grow and demographics shift. Birth rates are declining, while at the same time, better medical systems across the board mean life expectancies are rising. However, a stark gap remains between life spans and health spans, or how long people live in good health.
This is increasingly demanding a rethink of how people live, work and thrive across longer lifespans.
DBS and the DBS Foundation are tackling this issue head-on. Karen Ngui, head of DBS Foundation, says ageing has been largely framed in a negative manner so far: as a strain on the healthcare system and economies, as a demographic time bomb or a silver tsunami. But she posits that while ageing does bring challenges, it also brings opportunities to innovate, redesign systems and reimagine ageing where longer lives can equate to productive and healthy lives, as well as a stronger economy.
“We seek to shift mindsets around ageing, unlock its opportunities, and help shape a future where everyone can age with dignity, purpose and joy, regardless of age or circumstance,” says Ngui.
Established in 2014, DBS Foundation’s work focuses on uplifting the lives and livelihoods of vulnerable communities. With ageing societies an increasingly urgent challenge in many parts of Asia, the foundation has stepped up efforts to build social and financial resilience of individuals and communities.
This includes its Impact Beyond Awards, launched in 2024 to support visionary businesses with transformative solutions to meet ageing societies’ needs. S$3 million was awarded to the inaugural winners – four businesses from Singapore, Mainland China, Hong Kong and India that are reimagining ageing through technology, community partnerships, and new models of care – to scale their solutions.
This is in addition to ongoing support for innovative businesses for impact through the foundation’s annual grant programme, which has provided funding, as well as capacity-building and other opportunities, to 160-plus businesses in Asia.
Marrying financial success with societal good
What differentiates DBS is its integrated one-bank approach to tackling these megatrends.
Whether it is financing energy transition or spearheading initiatives to support ageing communities, the bank draws on its capabilities in responsible banking and community partnerships to deliver programmes that directly support Asia’s population.
In 2024, the bank deepened its support for the foundation’s work by pledging up to S$1 billion and 1.5 million employee volunteering hours, to be disbursed over 10 years.
DBS Foundation also runs the Impact Beyond Dialogue signature platform across its key markets, to foster cross-sector discussions and solutioning for market needs, convening key voices to address the challenges and identify actionable opportunities in ageing societies.
“With ageing now taking centre-stage, the onus is on us to anticipate what this means for our customers and the wider community, innovate to meet evolving needs, and be a trusted partner that walks with them throughout all stages of life,” says Ngui. “Importantly, the DBS Foundation also plays a key role in ensuring that those with less are not left behind.”
This combination of a changing demographic at a time of rapid climate change makes for a complex situation that needs a nuanced approach, factoring in Asia’s unique and diverse social and development contexts. Ngui says addressing this requires a multi-faceted, whole-of-society approach that spans the public, private and people sectors.
DBS is leading the charge, with its one-bank approach ensuring coherence across environmental and social priorities. Just as climate adaptation investments boost resilience against environmental shocks, parallel investments in elder care, health systems and future-proofing people’s lives help mitigate social vulnerabilities. DBS’ strategic approach to these issues and its profit-through-purpose mission is helping turn Asia’s biggest tests into opportunities for resilience, inclusion and growth.
[1] UNFPA Asia and the Pacific | Ageing
[2] One Raffles Quay secures landmark SGD 1.13 billion sustainability-linked loan with DBS as anchor lender and sole sustainability coordinator
[3] AirTrunk secures landmark S$2.25 billion green loan, advancing Singapore’s role as Asia’s green finance hub | AirTrunk
