DBS Group Holdings Ltd

We strive to be a good corporate citizen and advocate by providing input to and supporting the implementation of public policies. Additionally, we seek to be a strong representative voice for Asia in global industry forums. • Regular engagement sessions with regulators, governments/ government bodies, and public agencies in one-on-one or group meetings. • Sharing insights with and advising public agencies as an industry leader, including via the participation in relevant committees. • Providing insights and thought leadership in support of regulators' e΍ orts towards ensuring ȴ nancial stability. • Active participation in local, regional, and international industry forums on ȴ nancial regulation. [...] We engaged proactively with regulators and policy-makers across our core markets following the publication of 'Our Path to Net Zero', where we described in great detail how we selected science-informed decarbonisation pathways and set interim 2030 decarbonisation targets for a large number of sectors. The aim of this was to share insights and lessons learned to expedite knowledge exchange and support a system-wide net-zero transition.

#### Board's oversight

The DBS Group Board[2] has overall responsibility for the formulation of
DBS' sustainability strategy and is guided by the overarching objective
to create long term value by managing our business in a balanced and
responsible way. As a commitment to creating a sustainable future, a
new Board Sustainability Committee ("BSC") was established in February
2022. The BSC oversees DBS' overall plans and approves its strategies,
goals, and targets in relation to material environmental and social issues,
in particular climate-related matters, strategically centred around three
sustainability pillars: (1) Responsible Banking, (2) Responsible Business
Practices and (3) Impact Beyond Banking.

The Board of Directors (the "Board") of DBS Bank (Hong Kong) Limited
has overall responsibility for sustainability and integrates environmental,
social and governance ("ESG") matters in the formulation of strategy. The
Board provides oversight on sustainability agenda and directs its efforts
in managing material ESG matters, and is guided by the objective to
create long-term value by managing our business in a balanced and
responsible way.

The Board has delegated the Board Risk Management Committee
("BRMC") to oversee overall climate risk management, development and
implementation of climate risk strategies, including setting risk appetite,
overseeing the establishment of risk management policies and key
processes for managing climate risk. The BRMC also supports the Board
and senior management in setting the tone from the top to embed
climate-related considerations into the business activities and
decision-making process.

During 2022, updates on climate-related developments and risk
management approaches including risk appetite, local adoption of DBS
Group's decarbonisation targets and stress testing regularly feature on
the Board and BRMC' agendas. Climate risk management training has
been provided to Board, BRMC and senior management. [...] #### Management's role

The Hong Kong Sustainability Council ("HKSC"), in consultation with DBS
Hong Kong CEO and Group Chief Sustainability Officer ("CSO"), sets the
strategic direction of location-wide sustainability matters across DBS
Hong Kong. The HKSC is chaired by Head of Hong Kong Strategic
Marketing & Communications ("GSMC"), comprising of representatives
from key business and support units. The HKSC meets quarterly, and as
and when required.

In March 2022, the Hong Kong Climate Steering Committee, co-chaired
by the Senior Risk Executive of Hong Kong ("SRE"), Head of Hong Kong
Institutional Banking ("IBG"), Head of Hong Kong GSMC and Group CSO,
was established to strengthen the climate risk management of DBS Hong
Kong on location level. With the direction of the Hong Kong Climate
Steering Committee, a dedicated working team has also been formed
and consists of members from IBG, Risk Management, Legal, Compliance
& Secretariat, Finance and the Group CSO team. The Hong Kong Climate
Steering Committee meets monthly, and as and when required. Progress
of the climate risk management is regularly updated to Hong Kong Risk
Executive Committee and/ or BRMC.

In view of the heightened expectations among external stakeholders on DBS' sustainability agenda and commitments, as well as the increased requirements in the areas of governance, target setting, tracking and disclosures following DBS' public commitment to join the NZBA, the Board approved the establishment of a Board Sustainability Committee (BSC) in February 2022 to provide better focus on sustainability matters. The Chairperson of the BSC is Mr Piyush Gupta, and the members of the BSC are Mr Tham Sai Choy, Ms Judy Lee and Mr Chng Kai Fong. Fees payable to the members of the BSC (who are non-executive Directors) will be similar to the fees payable to members of the Compensation and Management Development Committee (CMDC), and will be subject to shareholders' approval at our annual general meeting (AGM) to be held in 2023. [...] The BRMC also deliberated on the risks arising from new business initiatives (including the DBS Digital Exchange and the DBS digital ecosystem) and ensured that appropriate risk management and governance policies and procedures were put in place to manage these risks."
"How the Group is managing the transition to ARRs A Group steering committee was established in 2019 to manage the impact of IBOR reform on the Group. The committee comprises senior representatives from Institutional Banking Group, Consumer Banking Group, Treasury Markets, Finance, Risk Management Group, Technology & Operations, Legal and Compliance and Group Strategic Marketing and Communications and is chaired by the Corporate Treasurer. The Terms of Reference of the committee are to review transition plans related to LIBOR and SOR discontinuation, SIBOR reform and other interest rate benchmark reform, to assess the Group's key risks across different scenarios, and to develop strategies to manage existing and new business in the context of these risks. Oversight of IBOR reform is provided by the Group Executive Committee and the Board Risk Management Committee.

##### Board and Board Committees

The DBS Group Board[2] has overall responsibility for the formulation of DBS' sustainability strategy. The DBS Group Board provides oversight on DBS' sustainability agenda and directs its efforts in managing material environmental, social and governance (\"ESG\") factors, guided by the objective to create long-term value by managing our business in a balanced and responsible way.

In 2022, the DBS Group Board established Board Sustainability Committee to provide greater governance and oversight on sustainability agenda, including net zero commitment, which is a strategic priority for DBS Group.

The Board of Directors (the \"Board\") of DBS Bank (Hong Kong) Limited has overall responsibility for sustainability and integrates ESG matters in the formulation of strategy. The Board provides oversight on sustainability agenda and directs its efforts in managing material ESG matters, and is guided by the objective to create long-term value by managing our business in a balanced and responsible way.

The Board has delegated the Board Risk Management Committee (\"BRMC\") to oversee overall climate risk management, development and implementation of climate risk strategies, including setting risk appetite, overseeing the establishment of risk management policies and key processes for managing climate risk. The BRMC also supports the Board and senior management in setting the tone from the top to embed climate-related considerations into the business activities and decision-making process.

During 2023, updates on climate-related developments and risk management approaches were featured on the Board and BRMC' agendas, including ESG risk monitoring metrics, continuous adoption of the DBS Group's decarbonisation targets as reference points for local progress monitoring, and stress testing. [...] The Hong Kong Climate Steering Committee, co-chaired by the Senior Risk Executive of Hong Kong (\"SRE\"), Head of Hong Kong Institutional Banking Group (\"IBG\"), Head of Hong Kong GSMC and Group Chief Sustainability Officer (\"CSO\"), was established in March 2022 to strengthen the climate risk management of DBS Hong Kong on location level. Under the guidance of the Hong Kong Climate Steering Committee, a dedicated working team has also been formed and consists of members from IBG, Risk Management, Legal, Compliance & Secretariat, Finance and the Group CSO team. The Hong Kong Climate Steering Committee meets monthly, and as and when required. Progress of the climate risk management is regularly updated to Hong Kong Risk Executive Committee and/ or BRMC.

##### Committing to net zero by 2050 and **setting our 2030 interim targets mark an** **important milestone of DBS. Navigating** **this transition will be a long-term** **endeavour. Much needs to be done in** **order to fulfil our commitments set out** **in this report. It will entail a** **fundamental change in how we do** **business – both internally and** **externally. We will enhance the** **monitoring and reporting of our targets,** **review our targets and methodologies at** **regular intervals, and most importantly,** **support our clients on their transition to** **adapt to a net zero world.** [...] **Monitoring and reporting annually** **our progress against our targets – As** an early adopter of the TCFD, we have been reporting under the recommendations since 2018. Now as a signatory to NZBA, we remain committed to being transparent about our efforts and will report annually our progress against both our 2030 interim targets and 2050 net zero targets within our sustainability reports. For the seven sectors of which we have set emissions reduction targets, this will entail updating the annual financed emissions for the sectors and analysing the progress against previous years and the respective targets. [...] **Reviewing periodically and, if** **appropriate, updating our targets and** **methodologies – We expect the reference** scenarios against which we have calibrated our emissions reduction targets to continually evolve. Precedent suggests that organisations that own these reference scenarios typically update them periodically. However, we do not intend to update our interim targets for 2030 each time these reference scenarios are revised or updated. Doing so would potentially create business uncertainty, both internally for our business planning and externally in our client engagements. However, we intend to review and, if necessary, revise our targets at least once every five years hereafter.

###### 3.4 Process for Transition Finance Label Selection & Evaluation

The selection and evaluation of transactions' alignment with the transition labels are subject to a comprehensive process, involving IBG Relationship Managers ("RMs"), IBGS and IBG Credit Risk Managers ("CRMs").

The RMs will identify potential transactions qualifying for any of the transition finance labels and liaise with their customers. The selected transactions will be presented to IBGS for technical review and endorsement of the proposed sustainable finance label. For example, for transition finance tagged loans, the use of proceeds will be documented in the facility agreements to ensure the integrity of the labelled loans. The final checking and approval of the proposed labelling will be performed by the IBG CRMs.

###### Transition Finance Framework

The Chief Sustainability Office ("CSO") will be notified of transition finance labels. An escalation process has been established to the Head of IBG and the CSO Office for endorsement, where a transaction has potential reputation risk or other material concerns.

As the last line of defence, Group Audit will carry out periodic review on the effectiveness as well as compliance on the transaction evaluation and selection process.

DBS will approach the "Transition Finance" label with caution considering it is a complex and multifaceted concept to navigate. We will deploy robust governance measures to demonstrate compliance with the conditions mentioned below. Given that transition cannot last indefinitely, DBS will regularly re-assess all transition labelled facilities.

###### 3.5 Governance

DBS has implemented strong governance that supports our sustainability policies and standards.

This Framework has been reviewed and approved, by the Head of IBG, CSO, Risk Management Group ("RMG"), and IBGS. DBS' overall approach to transition finance including the key components of the Framework was also discussed at the Board Sustainability Committee.

Our key commitments supporting our policies on transition follow:

y DBS will track transactions labelled under this Framework. Facility agreements for transition finance loans will ensure the integrity of labels, taxonomy and best practice alignment;

y We will report aggregated "transition finance" limits annually;

y We will review and update the Framework annually to reflect technological, sectoral, and geographical changes, and incorporate new principles as they emerge; and

y All updates will be reviewed and approved by CSO, RMG, and IBGS.

###### DBS will continue to review and assess the list of Eligible Activities, and label transactions as transition where it is possible to demonstrate alignment with the key principles set out above or in recognised taxonomies. Where appropriate, DBS will seek support from third party consultants to provide guidance on transition finance labelling.

The Framework will evolve with market practices, with the latest version applying to new transition finance instruments, while past versions continue to govern existing products and refinanced facilities, where appropriate.

Where there are multiple versions of the Framework, the most recent version will be applicable to any transactions issued at that time. Should a new revision be introduced when financial products issued under the past version are still outstanding, the requirements applied to existing finance transactions will not be affected by the changes in the new revision.

The Board had in-depth discussions and reviews on the initiatives to strengthen our technology architecture and resiliency, in light of the digital disruptions during the course of 2023. [...] In March 2023, the Board established a Special Board Committee (SBC), chaired by the Lead Independent Director, comprising certain members of the Board and supported by external subject matter experts. This committee, with support from Accenture, oversaw the development of a comprehensive technology resiliency roadmap. The BTRC was set up in September 2023 and has assumed the responsibilities previously held by the SBC. It will continue to closely monitor the progress of our remedial activities, and ensure ongoing diligence and oversight in addressing technology-related challenges. In conjunction with these e� orts, a Technology Risk Management Uplift (T-Up) Programme, chaired by the CEO was also established. [...] The Board Risk Management Committee (BRMC) established the BRMC Technology Risk Committee (BTRC) for dedicated oversight of technology risk. The BTRC oversees the implementation of the remedial measures that would be carried out to address the findings of the Accenture review and the completion of the technology roadmap. To enhance independent checks and balances, we transferred the Technology Risk Management team to the Risk Management Group. Since then, a new Group Head of Technology Risk was onboarded and the team's bench strength expanded with specialised expertise. We strengthened our Site Reliability Engineering with new leadership and also created a new Quality Assurance function to provide an additional independent layer of verification, controls and checks over the bank's change management process. A new Group Technology Risk Committee (GTRC) was constituted to enhance the oversight and management of technology risk by senior management."
"Under our risk management approach, the Board, through the Board Risk Management Committee (BRMC), sets our Risk Appetite, oversees the establishment of enterprise-wide risk management policies and processes, and establishes risk appetite limits to guide DBS' risk-taking. The BRMC also oversees the identi� cation, monitoring, management and reporting of credit, market, liquidity, operational, technology and reputational risks. In addition, the BRMC Technology Risk Committee (BTRC), a sub-committee to the BRMC, has been set up to assist the BRMC in overseeing the management of technology risk across the Group. This includes providing guidance on the implementation of the plans to uplift DBS Bank's technology resilience and the business continuity management. [...] Following the technology incidents in 2023, we have laid out a comprehensive roadmap to further enhance our resilience and enhance stakeholder con� dence and trust. To reinforce governance and oversight of technology risk, we established the Board Technology Risk Committee. [...] The Chief Risk O� cer (CRO), who is a member of the Group Executive Committee and reports to the Chairman of the BRMC and the CEO, oversees the risk management function. The CRO is independent of business lines and is actively involved in key decision-making processes. He often engages with regulators to discuss risk matters, enabling a more holistic risk management perspective.

Governance of sustainability Effective governance and board oversight is crucial to ensure resilience and drive long-term value creation. At DBS, the Board is collectively responsible for the long-term success of the bank and has ultimate responsibility of our sustainability strategy and reporting. It provides constructive challenge and strategic advice to management. [...] Sustainability governance structure Board and Board Committees In 2022, the Board established our Board Sustainability Committee (BSC) to provide greater governance and oversight on our sustainability agenda, including our net zero commitment, which is a strategic priority for the bank. The BSC is chaired by DBS Group CEO Piyush Gupta. Its members come from different business backgrounds and bring together complimentary skills and experience. The BSC members who are also DBS Board members, include Chng Kai Fong, Judy Lee, Tham Sai Choy and David Ho, who was newly appointed to the bank's Board of Directors in April 2023. In addition to DBS Board members, the BSC also comprises of a non-director member and sustainability expert, Dr. Ben Caldecott, the founding Director of the Oxford Sustainable Finance Group at the University of Oxford Smith School of Enterprise and the Environment. [...] At DBS, we take an integrated approach to governance of sustainability and climate-related risks and opportunities. The Audit Committee (AC) and the Board Risk Management Committee (BRMC) also have oversight responsibilities for sustainability-related activities. In 2023, the AC received regular updates on sustainability-related disclosure requirements, while the BRMC discussed and reviewed climate considerations as part of the wider risk management processes. [...] In 2023, the BSC met quarterly and discussed several topics related to sustainability, including, but not limited to: • Global themes relevant to DBS and our sustainability strategy. • Sustainability-related developments within DBS. • Climate risk considerations including physical and transition risks, and enhancements to our ESG risk assessments. [...] Board statement on sustainability "The Board has overall responsibility for the formulation of DBS' sustainability strategy. The Board provides oversight on DBS' sustainability agenda and directs its efforts in managing material ESG factors, guided by the objective to create long-term value by managing our business in a balanced and responsible way. In 2023, the Board Sustainability Committee (BSC) oversaw the update of our material ESG factors, as well as the continued progress to weave social and environmental factors into the fabric of our business, with a greater focus on climate-related matters." [...] Executive management At the management level, the Group Sustainability Council (GSC) oversees the execution of sustainability initiatives across the bank. The GSC is chaired by the Group CSO and comprises of senior managers from various business and support units. In 2023, the GSC met quarterly. Given the increasing regulatory and legal relevance of ESG matters, Internal Audit and Legal & Compliance attend GSC meetings as observers. This supports a more comprehensive approach to risk management and regulatory compliance, and deeper ethical considerations as we navigate a dynamic and complex sustainability landscape. The GSC – through the Chief Sustainability Office – coordinates and collaborates sustainability efforts with the five Local Sustainability Councils (LSCs) established in our core markets outside of Singapore (China, Hong Kong, Taiwan, India and Indonesia). In addition to the GSC, the LSCs serve as executive forums for discussions and operational decision-making on sustainability matters. In 2023, we established a cross-functional steering committee called Project Net Zero, which drives the operationalisation of our climate agenda across our net zero commitment, risk management and reporting. Sponsored by the Group Head of Institutional Banking, Group CRO and Group CSO, the steering committee is responsible for the implementation of multiple workstreams that involve different business and support units across the bank. The Project Net Zero Steering Committee provides quarterly updates to the BSC as one of the key standing agenda items. [...] Embedding sustainability into performance management and remuneration We use a balanced scorecard approach to measure how successful we are in serving our key stakeholders and executing our long-term strategy. Sustainability and climate-related targets are incorporated into our Group Scorecard and cascaded across the relevant units' scorecards, which are used to evaluate performance. Progress made against these targets is then used to determine the compensation for both our management and relevant executing teams, which in turn drives the overall management of sustainability performance across the bank. Management targets cover key sustainability and climate-related themes such as: • Governance, processes and reporting systems • Climate progress under Project Net Zero • Sustainable, green and social products, solutions and services • Financial inclusion, financial literacy and digital inclusion • Regenerative technology and spaces • Talent and people, including talent retention, diversity & inclusion and employee engagement • Impact beyond banking through DBS Foundation To further strengthen the governance of sustainability at DBS, in 2023 we conducted a holistic review of our sustainability governance processes. As a result, we have refined our approach including: • Establishing an Environmental and Social Incident Management Guide to ensure timely and appropriate response to any reports of environmental and social incidents. • Establishing a Consumer Banking Governance Guide for Sustainability Labelled Products and Services to ensure that a robust governance framework and internal controls are in place for products and services, to which a sustainability label is attached. • Uplifting our Sustainable Sourcing Principles (SSP) to further promote the principles of restorative procurement amongst our suppliers.

Governance of sustainability

Effective governance and board oversight is crucial to ensure resilience and drive long-term value creation. At DBS, the Board is collectively responsible for the long-term success of the bank and has ultimate responsibility of our sustainability strategy and reporting. It provides constructive challenge and strategic advice to management. [...] Sustainability governance structure

Board and Board Committees In 2022, the Board established our Board Sustainability Committee (BSC) to provide greater governance and oversight on our sustainability agenda, including our net zero commitment, which is a strategic priority for the bank. The BSC is chaired by DBS Group CEO Piyush Gupta. Its members come from different business backgrounds and bring together complimentary skills and experience. The BSC members who are also DBS Board members, include Chng Kai Fong, Judy Lee, Tham Sai Choy and David Ho, who was newly appointed to the bank's Board of Directors in April 2023. In addition to DBS Board members, the BSC also comprises of a non-director member and sustainability expert, Dr. Ben Caldecott, the founding Director of the Oxford Sustainable Finance Group at the University of Oxford Smith School of Enterprise and the Environment.

At DBS, we take an integrated approach to governance of sustainability and climate-related risks and opportunities. The Audit Committee (AC) and the Board Risk Management Committee (BRMC) also have oversight responsibilities for sustainability-related activities. In 2023, the AC received regular updates on sustainability-related disclosure requirements, while the BRMC discussed and reviewed climate considerations as part of the wider risk management processes. [...] In 2023, the BSC met quarterly and discussed several topics related to sustainability, including, but not limited to:

• Global themes relevant to DBS and our sustainability strategy.
• Sustainability-related developments within DBS.
• Climate risk considerations including physical and transition risks, and enhancements to our ESG risk assessments. [...] Board statement on sustainability

"The Board has overall responsibility for the formulation of DBS' sustainability strategy. The Board provides oversight on DBS' sustainability agenda and directs its efforts in managing material ESG factors, guided by the objective to create long-term value by managing our business in a balanced and responsible way. In 2023, the Board Sustainability Committee (BSC) oversaw the update of our material ESG factors, as well as the continued progress to weave social and environmental factors into the fabric of our business, with a greater focus on climate-related matters." [...] Executive management At the management level, the Group Sustainability Council (GSC) oversees the execution of sustainability initiatives across the bank. The GSC is chaired by the Group CSO and comprises of senior managers from various business and support units. In 2023, the GSC met quarterly.

Given the increasing regulatory and legal relevance of ESG matters, Internal Audit and Legal & Compliance attend GSC meetings as observers. This supports a more comprehensive approach to risk management and regulatory compliance, and deeper ethical considerations as we navigate a dynamic and complex sustainability landscape.

The GSC – through the Chief Sustainability Office – coordinates and collaborates sustainability efforts with the five Local Sustainability Councils (LSCs) established in our core markets outside of Singapore (China, Hong Kong, Taiwan, India and Indonesia). In addition to the GSC, the LSCs serve as executive forums for discussions and operational decision-making on sustainability matters.

In 2023, we established a cross-functional steering committee called Project Net Zero, which drives the operationalisation of our climate agenda across our net zero commitment, risk management and reporting. Sponsored by the Group Head of Institutional Banking, Group CRO and Group CSO, the steering committee is responsible for the implementation of multiple workstreams that involve different business and support units across the bank. The Project Net Zero Steering Committee provides quarterly updates to the BSC as one of the key standing agenda items.

#### Board's oversight

The DBS Group Board[2] has overall responsibility for the formulation of
DBS' sustainability strategy and is guided by the overarching objective
to create long term value by managing our business in a balanced and
responsible way. As a commitment to creating a sustainable future, a
new Board Sustainability Committee ("BSC") was established in February
2022. The BSC oversees DBS' overall plans and approves its strategies,
goals, and targets in relation to material environmental and social issues,
in particular climate-related matters, strategically centred around three
sustainability pillars: (1) Responsible Banking, (2) Responsible Business
Practices and (3) Impact Beyond Banking.

The Board of Directors (the "Board") of DBS Bank (Hong Kong) Limited
has overall responsibility for sustainability and integrates environmental,
social and governance ("ESG") matters in the formulation of strategy. The
Board provides oversight on sustainability agenda and directs its efforts
in managing material ESG matters, and is guided by the objective to
create long-term value by managing our business in a balanced and
responsible way.

The Board has delegated the Board Risk Management Committee
("BRMC") to oversee overall climate risk management, development and
implementation of climate risk strategies, including setting risk appetite,
overseeing the establishment of risk management policies and key
processes for managing climate risk. The BRMC also supports the Board
and senior management in setting the tone from the top to embed
climate-related considerations into the business activities and
decision-making process.

During 2022, updates on climate-related developments and risk
management approaches including risk appetite, local adoption of DBS
Group's decarbonisation targets and stress testing regularly feature on
the Board and BRMC' agendas. Climate risk management training has
been provided to Board, BRMC and senior management.

#### Management's role

The Hong Kong Sustainability Council ("HKSC"), in consultation with DBS
Hong Kong CEO and Group Chief Sustainability Officer ("CSO"), sets the
strategic direction of location-wide sustainability matters across DBS
Hong Kong. The HKSC is chaired by Head of Hong Kong Strategic
Marketing & Communications ("GSMC"), comprising of representatives
from key business and support units. The HKSC meets quarterly, and as
and when required.

In March 2022, the Hong Kong Climate Steering Committee, co-chaired
by the Senior Risk Executive of Hong Kong ("SRE"), Head of Hong Kong
Institutional Banking ("IBG"), Head of Hong Kong GSMC and Group CSO,
was established to strengthen the climate risk management of DBS Hong
Kong on location level. With the direction of the Hong Kong Climate
Steering Committee, a dedicated working team has also been formed
and consists of members from IBG, Risk Management, Legal, Compliance
& Secretariat, Finance and the Group CSO team. The Hong Kong Climate
Steering Committee meets monthly, and as and when required. Progress
of the climate risk management is regularly updated to Hong Kong Risk
Executive Committee and/ or BRMC.

Governance of sustainability Effective governance and board oversight is crucial to ensure resilience and drive long-term value creation. At DBS, the Board is collectively responsible for the long-term success of the bank and has ultimate responsibility of our sustainability strategy and reporting. It provides constructive challenge and strategic advice to management. The Board Sustainability Committee (BSC) supports DBS' vision to be the "Best Bank for a Better World", which underpins our efforts in empowering our own businesses as well as our clients in their transition towards a more sustainable future. This supports a healthy planet and a just society, while also strengthening risk management and unlocking new business opportunities for long- term value creation. In discharging its responsibilities, the BSC evaluates trade-offs and seeks to balance the interests of various stakeholders, such as regulators, investors, employees, sustainability analysts, NGOs and activists. [...] Board and Board Committees In 2022, the Board established our Board Sustainability Committee (BSC) to provide greater governance and oversight on our sustainability agenda, including our net zero commitment, which is a strategic priority for the bank. [...] The BSC is chaired by DBS Group CEO Piyush Gupta. Its members come from different business backgrounds and bring together complimentary skills and experience. The BSC members who are also DBS Board members, include Chng Kai Fong, Judy Lee, Tham Sai Choy and David Ho. In addition to DBS Board members, the BSC also comprises a non-director member and sustainability expert, Dr. Ben Caldecott, the founding Director of the Oxford Sustainable Finance Group at the University of Oxford Smith School of Enterprise and the Environment. [...] In 2024, the BSC met quarterly and discussed several topics related to sustainability, including, but not limited to: • Material global themes relevant to DBS and our sustainability strategy and sustainability-related developments within DBS. Selected topics included global momentum in sustainability, global energy outlook, developments related to the Net Zero Banking [...] The Board receives regular updates on key sustainability matters arising from these quarterly BSC meetings. At DBS, we take an integrated approach to governance of sustainability and climate-related risks and opportunities. The Audit Committee (AC) and the Board Risk Management Committee (BRMC) also have oversight responsibilities for sustainability-related activities. In 2024, the AC received regular updates on sustainability-related disclosure requirements, while the BRMC discussed and reviewed climate considerations as part of the wider risk management processes. [...] Board statement on sustainability "The Board has overall responsibility for the consideration of sustainability issues in the formulation of DBS' strategy. In 2024, the Board continued to provide oversight on DBS' sustainability agenda, including the determining, monitoring and managing of material ESG factors, guided by the objective to create long-term value by managing our business in a balanced and responsible way. During the year, the Board Sustainability Committee (BSC) also oversaw the enhancement of DBS' approach to transition financing and the work to align future climate-related disclosures with International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards." [...] Executive management At the management level, the Group Sustainability Council (GSC) oversees the execution of sustainability initiatives across the bank. The GSC is chaired by the Group CSO and comprises of senior managers from various business and support units. In 2024, the GSC met quarterly. Given the increasing regulatory and legal relevance of sustainability matters, Internal Audit and Legal and Compliance attend GSC meetings as observers. This supports a more comprehensive approach to risk management and regulatory compliance, and deeper ethical considerations as we navigate a dynamic and complex sustainability landscape. The GSC – through the Chief Sustainability Officer – coordinates and collaborates sustainability efforts with the five Local Sustainability Councils (LSCs) established in our core markets outside of Singapore (China, Hong Kong, Taiwan, India and Indonesia). In addition to the GSC, the LSCs serve as executive forums for discussions and operational decision-making on sustainability matters. In 2024, Group Climate Council (GCC), a new sub- committee to GSC was institutionalised. GCC took over the Project Net Zero Steering Committee, which was project- based and intended to be transitional to operationalise our climate agenda, including net zero commitments, risk management and reporting. Its members comprise representatives from key units, who possess the requisite knowledge and capabilities to set strategic direction for our climate-related initiatives. The GCC's primary responsibility is to institutionalise an effective and efficient forum on all climate-related matters including our net zero commitment and transition our attributable emissions from our lending, investment and capital markets portfolios to align with pathways to net zero by 2050. [...] Beyond our governance structure, our ESG Risk teams across Portfolio Analytics and ESG Credit, which are part of the Risk Management Group, continue to provide leadership and expertise to further strengthen our climate and ESG risk management capabilities. To strengthen the governance processes and guidance, in 2024 we: • Operationalised the Environmental and Social Incident Management Guide to ensure timely and appropriate response to any reports of environmental and social incidents. • Enhanced the New Product Approval (NPA) process for group-wide sustainability-labelled products and services. More than 50 operational risk managers and product managers were trained with a clear focus on greenwashing risks. We are currently enhancing governance and processes for sustainability-related products for other business units, such as Global Financial Markets (GFM). [...] Embedding sustainability into performance management and remuneration We use a balanced scorecard approach to measure how successful we are in serving our key stakeholders and executing our long-term strategy. Sustainability and climate-related targets are incorporated into our Group scorecard and cascaded across the relevant units' scorecards, which are used to evaluate performance. Progress made against these targets is then used to determine the compensation for both our management and relevant executing teams, which in turn drives the overall management of sustainability performance across the bank.

##### Board and Board Committees

The DBS Group Board[2] has overall responsibility for the formulation of DBS' sustainability strategy. The DBS Group Board provides oversight on DBS' sustainability agenda and directs its efforts in managing material environmental, social and governance (\"ESG\") factors, guided by the objective to create long-term value by managing our business in a balanced and responsible way.

In 2022, the DBS Group Board established Board Sustainability Committee to provide greater governance and oversight on sustainability agenda, including net zero commitment, which is a strategic priority for DBS Group.

The Board of Directors (the \"Board\") of DBS Bank (Hong Kong) Limited has overall responsibility for sustainability and integrates ESG matters in the formulation of strategy. The Board provides oversight on sustainability agenda and directs its efforts in managing material ESG matters, and is guided by the objective to create long-term value by managing our business in a balanced and responsible way.

The Board has delegated the Board Risk Management Committee (\"BRMC\") to oversee overall climate risk management, development and implementation of climate risk strategies, including setting risk appetite, overseeing the establishment of risk management policies and key processes for managing climate risk. The BRMC also supports the Board and senior management in setting the tone from the top to embed climate-related considerations into the business activities and decision-making process.

During 2023, updates on climate-related developments and risk management approaches were featured on the Board and BRMC' agendas, including ESG risk monitoring metrics, continuous adoption of the DBS Group's decarbonisation targets as reference points for local progress monitoring, and stress testing. [...] The Hong Kong Climate Steering Committee, co-chaired by the Senior Risk Executive of Hong Kong (\"SRE\"), Head of Hong Kong Institutional Banking Group (\"IBG\"), Head of Hong Kong GSMC and Group Chief Sustainability Officer (\"CSO\"), was established in March 2022 to strengthen the climate risk management of DBS Hong Kong on location level. Under the guidance of the Hong Kong Climate Steering Committee, a dedicated working team has also been formed and consists of members from IBG, Risk Management, Legal, Compliance & Secretariat, Finance and the Group CSO team. The Hong Kong Climate Steering Committee meets monthly, and as and when required. Progress of the climate risk management is regularly updated to Hong Kong Risk Executive Committee and/ or BRMC.

The Board has overall responsibility for sustainability and integrates ESG matters in the formulation of DBS' strategy. The Board provides oversight on DBS' sustainability agenda and directs its efforts in managing material ESG matters, and is guided by the objective to create long-term value by managing our business in a balanced and responsible way. Given the heightened expectations among external stakeholders on DBS' sustainability agenda and commitments, a new Board Sustainability Committee was established to better focus on sustainability matters. [...] To ensure full oversight and accountability for our sustainability strategy, the Group Sustainability Council (GSC), through regular updates and reporting to the Group Management Committee (GMC), supports the CEO and the Board Sustainability Committee (BSC) on ESG matters. The BSC is chaired by the Group Chief Executive Officer (CEO), and oversees DBS' overall plans and approves its strategies, goals, and targets in relation to climate and the broader ESG matters, strategically centred around our three sustainability pillars. The BSC will meet quarterly and as and when required. [...] The GSC is chaired by the Chief Sustainability Officer (CSO) and consists of senior management members from various business and support units. The GSC serves as an executive forum for discussions and operational decision-making on sustainability matters. These include the setting, tracking, and reporting of key performance indicators in consultation with stakeholders, as well as overseeing the execution of sustainability initiatives across the bank. [...] The Climate Steering Committee meets monthly to coordinate the multi-year climate roadmap and oversees the analyses and implementation of disclosures in alignment with the TCFD recommendations updated in 2021 and the Environmental Risk Management Guidelines issued by the Monetary Authority of Singapore in 2020. As a specialised function, the Climate Steering Committee also acts as an expert group that will inform the GSC on the progress made in managing our climate risk. [...] During 2021, we focused our initiatives and programmes on building knowledge and deepening subject-matter expertise, clarified roles and responsibilities, and integrated climate change – identified as a top priority and most immediate issue – within our strategic and risk management framework, that is aligned with our overall aspiration and ambition. As such, updates on climate-related developments, our climate ambitions, and risk management approaches regularly feature on the Board and Board Committees' agendas.

In February 2022, we established a new Board Sustainability Committee to further strengthen oversight and accountability for our sustainability strategy. We are also conscious that the challenges we face can only be addressed with collective resolve across the public, private and finance sectors as well as the community-at-large. As a responsible steward, we will continue to foster ecosystem change and partnerships that allow us to further scale and accelerate efforts, while also making sure we continue to optimise trade-off decisions. [...] Following the establishment of the BSC in February 2022, DBS appointed one new Non-Director BSC member in June 2022, Dr Ben Caldecott, the founding Director of the Oxford Sustainable Finance Group at the University of Oxford Smith School of Enterprise and the Environment. The BSC is chaired by DBS Group CEO Piyush Gupta and its other members comprise DBS board members Chng Kai Fong, Judy Lee and Tham Sai Choy. The BSC oversees DBS' overall plans and approves its strategies, goals, and targets in relation to material environmental and social issues, in particular climate-related matters, strategically centred around our three sustainability pillars. The BSC meets as and when required, minimally quarterly. Since its establishment, the BSC has met twice between July and December 2022. To further strengthen oversight and accountability for our sustainability strategy, the BSC is kept informed through regular updates and reports on all material sustainability efforts by the Chief Sustainability Officer (CSO), such as progress on the operationalisation of our net-zero commitments, enhanced sustainability disclosures, new public commitments and policies, among other matters.

The Board has overall responsibility for sustainability and integrates ESG matters in the formulation of DBS' strategy. The Board provides oversight on DBS' sustainability agenda and directs its efforts in managing material ESG matters, and is guided by the objective to create long-term value by managing our business in a balanced and responsible way. Given the heightened expectations among external stakeholders on DBS' sustainability agenda and commitments, a new Board Sustainability Committee was established to better focus on sustainability matters. [...] To ensure full oversight and accountability for our sustainability strategy, the Group Sustainability Council (GSC), through regular updates and reporting to the Group Management Committee (GMC), supports the CEO and the Board Sustainability Committee (BSC) on ESG matters. The BSC is chaired by the Group Chief Executive Officer (CEO), and oversees DBS' overall plans and approves its strategies, goals, and targets in relation to climate and the broader ESG matters, strategically centred around our three sustainability pillars. The BSC will meet quarterly and as and when required. [...] The GSC is chaired by the Chief Sustainability Officer (CSO) and consists of senior management members from various business and support units. The GSC serves as an executive forum for discussions and operational decision-making on sustainability matters. These include the setting, tracking, and reporting of key performance indicators in consultation with stakeholders, as well as overseeing the execution of sustainability initiatives across the bank. [...] The Climate Steering Committee meets monthly to coordinate the multi-year climate roadmap and oversees the analyses and implementation of disclosures in alignment with the TCFD recommendations updated in 2021 and the Environmental Risk Management Guidelines issued by the Monetary Authority of Singapore in 2020. As a specialised function, the Climate Steering Committee also acts as an expert group that will inform the GSC on the progress made in managing our climate risk.

Following the establishment of the BSC in February 2022, DBS appointed one new Non-Director BSC member in June 2022, Dr Ben Caldecott, the founding Director of the Oxford Sustainable Finance Group at the University of Oxford Smith School of Enterprise and the Environment. The BSC is chaired by DBS Group CEO Piyush Gupta and its other members comprise DBS board members Chng Kai Fong, Judy Lee and Tham Sai Choy. The BSC oversees DBS' overall plans and approves its strategies, goals, and targets in relation to material environmental and social issues, in particular climate-related matters, strategically centred around our three sustainability pillars. The BSC meets as and when required, minimally quarterly. Since its establishment, the BSC has met twice between July and December 2022. To further strengthen oversight and accountability for our sustainability strategy, the BSC is kept informed through regular updates and reports on all material sustainability efforts by the Chief Sustainability Officer (CSO), such as progress on the operationalisation of our net-zero commitments, enhanced sustainability disclosures, new public commitments and policies, among other matters. [...] The Group Sustainability Council (GSC) oversees the execution of sustainability initiatives across the bank and is chaired by the CSO, comprising of senior management members from various business and support units. The GSC meets as and when required, minimally quarterly. The GSC extends standing invitations to Group Audit, and Legal & Compliance as observers to the meetings, while regularly inviting additional Group Management Committee (GMC) members depending on the meeting agenda. Furthermore, the GSC coordinates sustainability efforts with Local Sustainability Councils the bank has established in the five core markets outside of Singapore, China, Hong Kong, Taiwan, India and Indonesia. Notably, the GSC serves as an executive forum for discussions and operational decision-making on sustainability matters. In consultation with the Group CEO and GMC, the GSC defines the Group's sustainability related KPIs, sets targets and tracks the performance against these KPIs, which will be reviewed by the BSC.

# 6. Process for Project Evaluation and Selection
The selection as well as evaluation of transactions' alignment with the four labels is subject to a three-tier process involving IBG Relationship Managers (RMs), IBG Sustainability and IBG Management Committee.

The RMs will identify potential transactions qualifying for any of the four labels and liaise with their customers. The nominated transactions will be escalated for technical review by IBG Sustainability. The team will advise customers on the measurement of required data where needed.

To promote transparency and enhance the quality of ESG data, and where commercially viable, IBG will consider providing incentives (e.g. a reduction in margin of loans, or other adjustment on terms) to encourage customers who are yet to measure and/or publicly report its carbon exposure, or to independently verify its GHG emissions reduction or other ESG data.

The final validation and approval of the eligible transactions will be done by the IBG Management Committee, which comprises IBG segment heads and is led by the Head of IBG. The Head of Sustainability of IBG will have the right of veto if there is no unanimous decision.

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As the last line of defence, Group Audit will carry out periodic review on the effectiveness as well as compliance on the project evaluation and selection process.

RM IBG Sustainability IBG Management

Committee

- Propose Sustainable & - Evaluate the merit of - Approve nominated

Transition Finance nominated transaction to be eligible
Transaction and assets/projects/clients for the Sustainable or
underlying assets Transition label

# 7. Monitoring & Management of Transactions
IBG Sustainability and Group Finance will establish and maintain a centralised database that keeps tracks of all concerned transactions. The database will include information such as company identifier, transaction amount, tenor. The database will be monitored periodically to avoid double counting. For example, proceeds received from a newly issued green bond will not be allocated to a labelled transaction already earmarked by a previous green bond.

For Sustainable and Transition Finance loans, the use of proceeds will be documented in the facility agreements to ensure the integrity of the labelled loans. For loans labelled as "transition", the agreement will include the requirement for independent verification of GHG emissions reduction (forecast or realised).

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]At DBS, we regularly engage with our key stakeholders to strengthen the rapport amidst changing priorities. In this case, the key stakeholders here refer to those who impact our climate strategy the most, or are directly impacted by it. For example, we engage regularly with regulators, government, and public agencies in in-depth discussions on climate-related matters (e.g., green finance taxonomy, climate-related disclosures) and actively participate in local, regional, and international industry forums on financial regulations, including sustainability disclosures.

One of the direct engagements we had with policy makers include the Monetary Authority of Singapore (MAS) Green Finance Industry Taskforce (GFIT) workstreams on disclosure, which is co-led by DBS and SGX (Singapore Stock Exchange), where we worked on launching several initiatives to accelerate green finance in Singapore through improving disclosures and fostering green solutions
https://www.allenandgledhill.com/sg/perspectives/articles/18325/sgkh-green-finance-industry-taskforce-launches-guide-for-climate-related-disclosures-and-framework-for-green-trade-finance.

We have also been focusing on helping our clients transition to a low carbon economy. To provide greater support to accelerate the sustainability agenda, we partnered with relevant regulators and industry partners to set up Climate Impact X (CIX) in May 2021 – a global exchange and marketplace for the trading of tokenised high-quality carbon credits. By facilitating a well-functioning marketplace with strong impact and risk data, CIX aims to enable the efficient price discovery of carbon credits and catalyse the development of new carbon credit projects not just in Singapore, but across the world. This is also in line with Singapore's national agenda in pushing forward on its ESG goals, where the government has mandated an increase in carbon taxes (from the current SGD 25 per tonne to SGD 45 per tonne in 2026, before reaching up to SGD 80 per tonne by 2030). Businesses that fall under this category (emitting at least 25,000 tonnes of GHG annually) can purchase carbon credits to offset up to 5% of their emissions from 2024 onwards. Regulated carbon markets, such as the CIX, will be able to close the demand gaps in this regard. https://www.straitstimes.com/singapore/budget-2022-large-emitters-can-buy-carbon-credits-to-offset-carbon-tax-bill-from-2024

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes