Singapore, London, 23 June 2026 – Amid a growing need to address physical climate risks, DBS and Climate Bonds Initiative (CBI) have published a new report which aims to provide a structured framework for banks and businesses to identify, assess and finance credible adaptation and resilience (A&R) investments.

Titled "Adaptation and Resilience: Exploring Investable Opportunities in Asia-Pacific", the report represents an important first step towards advancing climate adaptation financing – by deepening knowledge and capability in A&R financing as the financial impact of climate change becomes more material.

Annual costs associated with physical climate risks for companies with significant operations in Asia are projected to reach $336 billion by the 2030s. Globally, less than 10% of climate finance flows support A&R and less than 11% of that comes from the private sector. The gap between financing need and financing flow is large and concentrated: Asia accounts for approximately 69% of global adaptation financing needs and 75% of the global financing gap by 2030.

Against this backdrop, banks and businesses are increasingly seeking practical guidance on what constitutes a credible climate resilience investment and how these can be assessed.

Introducing a structured approach to assessing climate resilience investments

While taxonomies, thresholds and market definitions for green and sustainable financing have been more widely adopted over the past decade, similar frameworks for A&R finance continue to be a work in progress. Another key challenge to scaling A&R finance is the need to balance two competing priorities: ensuring that resilience measures are tailored to local risk conditions, while also promoting sufficient standardisation to support investment decisions, market confidence and capital mobilisation.

Leveraging the expertise of both partners, the report introduces a structured approach to assessing climate resilience investments including identifying A&R financing opportunities; how to assess credible investments; as well as identifying potential impact indicators and metrics to track and measure outcomes. Together, these components aim to help investors and corporates achieve greater consistency and transparency when assessing resilience-related financing opportunities.

The report explores how rising temperatures, water stress, extreme weather events and flooding impact businesses and infrastructure in the real economy starting with four key sectors:

· Commercial real estate in India: Addressing heat stress impacting operating costs and asset valuation.

· Data centres in Singapore and Malaysia: Tackling water stress as a material constraint on operations and expansion.

· Power infrastructure in coastal China: Building resilience against typhoon and storm damage to transmission and distribution networks.

· Transport corridors in Taiwan: Mitigating recurring damage to transport infrastructure from typhoons and flooding.

In addition, the report highlights how emerging frameworks such as the Climate Bonds Resilience Taxonomy can help provide greater clarity to market participants.

Kelvin Wong, chief sustainability officer, DBS, said: "We believe the transition to a low-carbon economy must go hand-in-hand with adaptation – and finance can be a lever that accelerates both. As climate change increasingly shapes how businesses grow in the decades ahead, organisations need to better understand not only their exposure to climate risks, but also the investments required to strengthen resilience. This report marks an important step forward in helping us better support clients and scale adaptation solutions to support sustainable economic development across the region."

Shilpa Gulrajani, head of sustainable finance, Institutional Banking Group, DBS, said: "Across Asia-Pacific, the impacts of physical climate risks are becoming increasingly visible, yet A&R finance remains nascent. Through our partnership with Climate Bonds Initiative, we hope this report contributes to the development of a more transparent and investable market across the region. Effective A&R solutions must be grounded in local conditions, while commercial banks need greater clarity and consistency in how A&R investments are assessed."

Sean Kidney, CEO of the Climate Bonds Initiative, said: "We're already feeling the effects of climate change, with more intense heat, floods and weather patterns across Asia and around the world. But these aren't just climate risks, they are financial risks. That's why adaptation and resilience is moving from the margins into the core of banking strategy and risk management. DBS' leadership demonstrates that forward-looking financial institutions are beginning to address adaptation and resilience as a core business and risk management challenge. This report sends a strong signal that mainstream finance is ready to act to build the resilient societies, economies and businesses of the future."

The publication marks the next milestone in the partnership between DBS and Climate Bonds Initiative that was announced on the sidelines of Ecosperity Week in May 2026 to advance climate adaptation financing across the Asia-Pacific. The next phase of the partnership will see DBS embark on an internal capacity building programme to embed adaptation and resilience considerations across its business, including training sessions to equip relationship managers with technical expertise to help clients better navigate climate change adaptation as the next frontier of climate finance.

Re-disseminated by The Asian Banker