UOB embeds net-zero commitments in business strategies, client engagements
Its targets are based on internationally-recognised climate models.
As a leading financial institution operating in Asia, UOB is steadfast in being a positive force in the fight against climate change within the region, one that is very vulnerable to climate risk.
It announced in October 2022 its net-zero commitment and targets for its corporate lending portfolio – covering six focus sectors in the energy and built environment ecosystems – power, automotive, oil and gas, real estate, construction and steel. These sectors are some of the most prevalent contributors of greenhouse gas (GHG) emissions regionally and account for about 60% of the bank’s corporate lending portfolio.
One year on, UOB recently published its first net zero progress report. The bank shared how it has made positive headway on its net zero commitment, which is grounded in the need for a just transition that continues to support socioeconomic growth and improve energy access across the diverse economies in the region, in tandem with decarbonisation.
“We are guided by the science in setting our net-zero targets, and have based our targets on regional pathways described by internationally-recognised climate models or through constructing regionally-representative, bottom-up reference pathways using these models,” the company said.
It is integrating its net-zero targets in its business strategies and operations as it actively engages its clients across the region and supports them in setting their own net-zero commitments or in making their existing plans more ambitious.
As part of this move, UOB launched its Transition Finance Framework in 2022 to help clients in carbon-intensive, hard-to-abate sectors with their transition plans for energy efficiency and emissions reduction. It has also launched three ecosystem solutions that are designed to meet the end-to-end needs within specific sectors.
To support small- and medium-sized enterprises (SMEs), the company also rolled out the UOB Sustainability Compass to offer SMEs a customised, step-by-step guide on starting and advancing their sustainability journeys. For individuals, it helps UOB EVOL cardholders to offset their household electricity carbon footprint when they charge their utility bills to their credit cards.
The bank’s role in advocating for green and sustainable finance in Singapore has been acknowledged at the ESGBusiness Awards, with the bank clinching the Net-Zero Award - Banking category win.
The prestigious awards programme honours businesses that demonstrate outstanding commitment and achievement in environmental, social, and governance (ESG) practices, as well as those leading the way in building a sustainable future.
The ESGBusiness Awards is presented by ESGBusiness. To view the full list of winners, click here. If you want to join the 2024 awards programme and be acclaimed for your company's outstanding commitment and achievement in environmental, social, and governance (ESG) practices, please contact Julie Anne Nuñez at [email protected].
