Singaporean lender OCBC has extended a five-year 100 million Swiss franc ( US$122.03 million ) 1.5°C loan to Swiss market expansion services provider DKSH Holdings, marking the first time DKSH has linked its sustainability-linked financing to its emissions reduction targets validated by the Science Based Targets initiative ( SBTi ), and its first to incorporate a Scope 3 emissions intensity reduction target.
The loan is also OCBC’s first 1.5°C loan in the market expansion services sector. The bank, as the sole lender and sustainability adviser, structured the loan with annual sustainability performance targets aligned with DKSH’s near-term SBTi-validated decarbonisation targets, including reducing absolute Scope 1 and 2 greenhouse gas ( GHG ) emissions by 71.2% by 2030 from a 2020 base year, and reducing Scope 3 GHG emissions from purchased goods and services by 61.1% per Swiss franc of value added by 2033 from a 2024 base year. Scope 3 emissions account for more than 70% of DKSH’s overall carbon footprint.
The OCBC 1.5°C loan, the lender notes, was designed to incentivize corporates to commit to internationally recognized, science-based net-zero decarbonization pathways. Companies that meet or exceed their annual sustainability performance targets may benefit from reduced financing costs. Proceeds of the loan will support DKSH’s general corporate purposes and growth opportunities.
The transaction, the lender points out, builds on DKSH’s climate progress. In 2025, DKSH reduced its market-based Scope 1 and 2 GHG emissions by 65% from its 2020 baseline, sourced or matched almost 80% of the electricity used in its facilities with renewable electricity, and enhanced the transparency of Scope 3 emissions, reporting across all relevant Scope 3 emissions categories.
DKSH, the company shares, is recognized as an industry leader by ISS ESG and ranked among the top 5% of its sector and has maintained strong performance across major sustainability benchmarks, including EcoVadis, CDP, MSCI and FTSE.
OCBC previously extended the OCBC 1.5°C loan to City Developments ( 2023 ), Frasers Logistics & Commercial Trust, CapitaLand Ascott Trust and COFCO International ( 2024 ) and Florentia Village ( 2026 ). The bank’s total sustainable finance commitments, as of this June, had grown 13% year on year to S$84.2 billion ( US$65.74 billion ).
“Turning climate ambition into measurable progress is key to achieving the low-carbon transition,” says Elaine Lam, OCBC’s head of global corporate banking. “In linking financing to its SBTi-validated emissions reduction targets, DKSH has demonstrated both the boldness of its climate ambitions and its firm commitment to delivering tangible decarbonization outcomes across its value chain.”
Ido Wallach, DKSH’s CFO, emphasizes: “By linking this facility to our SBTi-validated emissions reduction targets, we are strengthening accountability for our climate commitments, while further embedding sustainability into the way we operate and grow our business.”
