Helge Muenkel, in a video interview, explains his company's sustainability strategy, highlighting their unwavering commitment to integrating environmental, social, and governance principles into every facet of their operations
Helge Muenkel, Group Chief Sustainability Officer, DBS Bank, delves into a range of topics, encompassing the sustainability framework and governance, tackling the global food waste challenge, and implementing Environmental, Social, and Governance (ESG) principles as a strategic imperative within organisations.
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Edited excerpts
On sustainability and sustainability framework
Helge Muenkel provides an illustrative example, envisioning a future where approximately 9 billion people thrive while adhering to the limits of our planet’s resources by the year 2050. He says, “So, sustainability ultimately means something to us. What does this mean? Well, it can mean a lot of things. It can simply mean that people have food on their plates. It can mean that people have access to fresh air and water. That people have good medical health. They have shelter, and so on and so forth.” He emphasizes that living within planetary boundaries goes beyond ensuring the well-being of the present generation; it equally entails safeguarding these essential elements for the benefit of future generations.
Muenkel elaborates on DBS Bank’s strategic approach to integrating sustainability frameworks within the industry by first identifying its purpose. Crafting a powerful vision – “to be the best bank for a better world” – formed the cornerstone of its sustainability commitment. It also helped DBS Bank foster a culture wherein the entire organisation wholeheartedly embraces the sustainability agenda. “So, everything really does start with a purpose,” states Muenkel.
“Subsequently, you need to ask yourself, ‘How do I structure my organisation?’ If you think about my role, many years ago, most leaders wouldn’t have even seen this role as credible in their organisations. However, DBS Bank, as an example, has taken significant strides forward by developing this particular role for a board sustainability committee, showcasing its progressive thinking,” he says.
He further explains that the board is chaired by their group CEO, and includes a few other members. One notable member is an academic from Oxford University, which highlights the organisation’s strong commitment to sustainability.
Muenkel elaborates on the importance of governance and adds that DBS has established a clear purpose by allocating dedicated resources to drive it forward. Recognising the unique nature of each organisation, DBS Bank approaches sustainability with a tailored perspective that aligns with how it operates within different markets. With a keen focus on stakeholders, including shareholders, customers, employees, and government regulators, DBS Bank strategically identifies and prioritises the most material topics relevant to each of them
DBS Banks’s three pillars of sustainability
Expanding upon the three pillars of sustainability, he describes the first pillar ‘responsible business, responsible banking,’ as empowering clients to embrace sustainability through financing options. “We support our large corporate clients in transitioning to lower carbon business models by providing advisory and lending services. It also cuts across aspects such as financial inclusion, banking, and the underbanked, especially in India, which are also huge concerns for us.”
The second pillar, known as ‘responsible business practices,’ directs its focus inward, compelling the organisation to introspect and uphold essential values such as diversity, equity, inclusion, fairness, and transparency. “On the environmental side, we have achieved carbon neutrality in our own operations at the end of 2022,” he states.
The third pillar, referred to as ‘impact beyond banking,’ entails DBS Bank’s dedicated efforts to support social enterprises, focusing on businesses that incorporate a triple bottom line approach, combining financial success with social and environmental benefits. In alignment with this vision, the bank actively engages with communities by providing essential support, such as promoting digital literacy and financial literacy initiatives. Muenkel adds, “Last year, our board approved another 100 million SGD to boost this endeavor. So, as you can see, it’s a comprehensive and all-encompassing approach across the entire organisation.”
Key sustainability programmes
Helge Muenkel discusses DBS Bank’s participation in a number of noteworthy sustainability initiatives and highlights notable accomplishments. “At DBS Bank, we are weaving environmental and social matters into the fabric of our business across the three pillars mentioned above.”
He also highlights that DBS has decided to prioritise climate, because it’s very urgent. And secondly, it is interlinked with other environmental and socio-economic matters as well. In September of last year, DBS Bank published a report titled ‘Path to Net Zero’ that provides extensive information on how it align its lending and financing with net zero.
Zero waste food programme
Acknowledging food waste as a significant issue, he explains that in 2022, DBS Bank effectively supported the avoidance of 140,000 metric tonnes of food waste that would have otherwise just gone to waste.
Appreciating his role
Helge Muelkel returns to his initial statement, “It all starts with purpose. I think it’s almost a luxury that I am allowed to spend my entire day and all my energy on environmental and social matters because, ultimately, climate change is real. There are many social issues as well. And having the ability to ultimately grow my sphere of influence by shaping the thinking and the acting of a big organisation like DBS Bank to support environmental and social matters is, I think, really a huge luxury.”
He elaborates on how his sense of purpose is what keeps him going. He strongly believes that there is a compelling business case, as he sees a great opportunity in providing assistance to customers during their transitions. All of these aspects contribute to making his job extremely enjoyable and meaningful.
Advice to organisations that are implementing ESG
Muenkel believes that it is crucial for an organisation to establish its purpose as a first step. The topic is of great significance as it ultimately impacts culture. Organisations need to understand what is most material to them because every organisation, depending on what sector it is in, has a very different sustainability agenda, different stakeholders, and so on and so forth. Going through the process of identifying what is most relevant to them and how they can allocate their time and resources is quite critical.
