UOB Advances to Net Zero with Steady Progress
United Overseas Bank Ltd
UOB has taken a significant step forward by unveiling its inaugural progress report on its journey towards achieving net-zero emissions by 2050.
The bank's report showcases encouraging strides in aligning with the predefined targets set for its focal sectors.
UOB's commitment to achieving net zero emissions involves the establishment of specific reduction targets for five key sectors: power, automotive, real estate, construction, and steel.
Based on the data from 2022, the bank has recorded substantial reductions in emission intensities across all these sectors, with metrics falling between seven to fourteen per cent below their respective net-zero target reference paths.
Furthermore, UOB's pledge from the previous year encompasses a vital element: a ban on new financing for upstream oil and gas projects greenlit for development post-2022. Notably, these six sectors constitute a substantial portion, approximately 60 per cent, of the bank's corporate lending portfolio.
UOB has anchored its sectoral goals in internationally recognised climate science models, closely aligned with regional pathways that mirror the overarching global net-zero objectives.
This approach underscores the bank's steadfast belief in the imperative need for a fair and equitable transition within Southeast Asia, intended to bolster economic growth and enhance energy accessibility across the region's diverse economies.
In this comprehensive report, UOB delineates the opportunities and challenges it has encountered while working towards its net-zero targets across various sectors. The bank also elucidates its commitment to intensify efforts aimed at engaging clients and fostering deeper collaboration with global and regional stakeholders in the quest for decarbonisation.
Mr. Wee Ee Cheong, Deputy Chairman and Chief Executive Officer of UOB, articulates the bank's commitment, emphasising the importance of an orderly transition to net zero.
He emphasises their role in facilitating funding and support for their clients on their transition journey while simultaneously reforming their operational processes and expanding cooperation with a broader spectrum of stakeholders, including government bodies, businesses, and society, to bring about transformative change.
UOB has crafted a holistic programme to bring its net-zero commitment to life. This programme revolves around four pivotal areas:
Developing sector-specific plans, including target setting, progress measurement, and opportunity identification.
Providing advisory and financial solutions to assist clients in their decarbonisation journey.
Integrating the net-zero concept into the bank's operational framework, covering governance, policies, processes, and capabilities.
Spearheading stakeholder engagement and fostering collaboration with an extensive network of governments, regulators, industry associations, and peers to foster collective action.
Notably, UOB has disbursed SGD 38 billion in sustainable financing as of the end of September 2023. The bank remains steadfast in its commitment to expanding its repertoire of sustainable finance frameworks and solutions while seeking opportunities to support its clients in their decarbonisation endeavours.
For further information on UOB's commitment to achieving net zero and its progress, please visit their dedicated page at https://www.uobgroup.com/sustainability/sustainable-banking/net-zero-commitment.page.
In addition to these substantial efforts, UOB has also unveiled a thought-provoking sustainability-themed film. This film underscores the bank's belief that the well-being of people and the planet must progress hand-in-hand. You can watch the film by visiting https://www.uobgroup.com/sustainability/index.page.
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Source: UOB
