DBS Bank said it has become the first lender in South-east Asia to adopt an internationally recognised framework that allows banks to assess and manage environmental and social risks in development projects.

The Equator Principles (EPs), which also outline environmental and social standards for large-scale developments, are based on the International Finance Corporation (IFC) Performance Standards published by the World Bank Group.

DBS said yesterday that its adoption of the EPs means it will "go the extra mile" to disclose information on large-scale developments it is involved in.

This will be in addition to its existing adherence to due diligence processes in accordance with IFC's Performance Standards when assessing large project financing deals.

DBS said in April that it will stop financing new coal-fired power plants in any market once its existing commitments are completed by 2021, while it will step up funding for renewable energy projects.

The latest initiative by the bank, a Temasek-linked company, also comes as Temasek flagged last week that it would like to "shape a carbon neutral portfolio sooner rather than later" and to go carbon neutral by next year.

Ms Tan Su Shan, group head of institutional banking group at DBS, said: "We acknowledge the importance of incorporating environmental and societal considerations into our lending decisions, and to managing our business in a balanced and responsible way, contributing to a more sustainable future."

This year, DBS expects to close more than $4 billion of sustainable finance transactions comprising green loans, sustainability performance-linked loans and renewable energy financing.