Green group files complaint against OCBC to SGX over alleged disclosure gaps on coal plants

straitstimes.com · Feb 24, 2026 · Collected from GDELT

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SINGAPORE – A complaint has been lodged with the Singapore Exchange (SGX) against OCBC for potentially failing to comply with sustainability reporting requirements, specifically pertaining to the lack of disclosures around the bank’s exposure towards captive coal plants. Environmental group Market Forces said in a media statement on Feb 24 that OCBC did not provide complete information material to investors, including the true extent of its exposure to carbon-intensive companies that are powering their operations with off-grid coal plants, which are known as captive coal plants. The Australian-based organisation previously flagged OCBC, along with UOB and DBS, for financing coal-powered nickel smelters and refineries run by Indonesia’s Harita Group.Even though all three Singapore banks have committed to cease the financing of new coal-fired power plants, financing the production of nickel does not fall under this remit even if the extraction activities are powered by coal. Market Forces considers this a “loophole”, as the funds could be used by the company to construct additional captive coal capacity. In response to queries from BT, OCBC chief sustainability officer Mike Ng said the bank remains committed to transparent sustainability and environmental disclosures that are aligned with SGX rules and international frameworks. “In addition, we are guided by our responsible financing framework and policies which outline our approach and dedication to managing ESG risks within our lending practices, to ensure that our financial services do not adversely impact people, communities or the environment,” he added. ESG risks refer to environmental, social and governance risks.In its complaint, Market Forces said there is “a material information gap” between OCBC’s publicly stated sustainability commitments and the details of its financing policies, specifically on clients reliant on captive coal. “OCBC does not clearly disclose whether captive coal power plants are included in the calculation of these thresholds, nor how such exposure is assessed for energy-intensive industrial clients,” read the complaint. It added that this lack of a clear disclosure may constitute “material omissions” and potentially result in investors not being provided with an accurate representation of the bank’s climate-related risks, which are requirements under 711A and 711B of SGX’s rule book. Under SGX’s rule book, banks would also have to comply with the recommendations made by the International Sustainability Standards Board (ISSB) from their 2025 financial year, which means the first sustainability reports aligned with ISSB would be published in 2026. Under the new ISSB framework, banks are required to disclose their absolute gross financed emissions for each industry by asset class. This would typically fall under the investment category of a bank’s Scope 3 emissions, which refer to indirect emissions arising from an entity’s supply chain. While OCBC did not specifically disclose its financed emissions arising from its loan to Harita Nickel in its previous sustainability reports, the bank reports the financed emissions of the six sectors – power, oil and gas, real estate, shipping, steel and aviation – for which it has set decarbonisation targets. This is also the reporting framework adopted by the other two banks. When asked why Market Forces did not file a complaint with SGX against DBS and UOB, which were also flagged for their lending to Harita Nickel, Ms Binbin Mariana, the organisation’s Asia energy finance campaigner, said DBS and UOB have different policies, funding timelines and exceptions.Mr Ng said funding the production of nickel is necessary, with global demand for the material – which is a critical component for the production of electric vehicle batteries – projected to increase by nine times in the next 25 years. Given that Indonesia has the world’s largest nickel reserves, its nickel industry is vital for the global decarbonisation effort, he added. However, it is not pragmatic to expect the production of nickel to be fully powered by renewable energy, said Mr Ng. This is a result of Indonesia’s unique geography. “Grid connectivity is often beyond the control of companies. Renewable energy has limitations, given that hydropower and wind resources are location-specific and not available everywhere, especially in remote areas in Indonesia. Solar energy is intermittent,” he added. “We recognise that the transition journey is not going to be a short and quick one. In the absence of reliable renewable energy to fully supply the required power for nickel producers, the energy transition inevitably incurs trade-offs.” THE BUSINESS TIMES