SAGE Programme: Simplified Green Financing for SMEs
Key Takeaways
UOB and Enterprise Singapore introduce the SAGE Programme for SMEs to simplify access to sustainability-linked financing.
SMEs achieving pre-agreed sustainability performance targets (SPTs) receive preferential loan rates from UOB.
The programme reduces time, cost, and resource burdens for SMEs, overcoming challenges such as high costs and limited knowledge.
UOB and Enterprise Singapore (EnterpriseSG) have launched the Sustainability-Linked Advisory, Grants, and Enablers (SAGE) Programme, targeting small and medium-sized enterprises (SMEs).
The initiative intends to make access to sustainability-linked financing solutions easier by giving preferential loan rates from UOB to SMEs that meet pre-determined sustainability performance targets (SPTs).
This programme includes collaboration with sustainability service partners such as CDP, Convene ESG, M1, Paia Consulting, PwC Singapore, and TÜV SÜD, allowing SMEs to participate in a single programme with pre-set SPTs.
The SAGE Programme is designed to help SMEs reduce the time, cost, and resources needed to set SPTs and secure financing. It addresses issues raised in a recent UOB survey, which found that just 40% of businesses had implemented sustainability practices, citing increasing expenses, limited expertise, and a lack of manpower as major hurdles.
Companies can access sustainability-linked financing from UOB through the SAGE Programme, which offers three "plug and play" alternatives of pre-defined, sector-specific SPTs. Environmental Resources Management (S) Pte Ltd evaluated these SPTs to guarantee their authenticity and alignment with the globally recognised Sustainability-Linked Loan Principles. The SPTs target three areas:
Reduction of greenhouse gas (GHG) emissions
Certification of management systems
Improvement of ESG ratings
SMEs in Singapore can offset up to 85% of the costs of ESG digital platforms, advisory and assurance services for GHG inventory, ISO management system certification, and improving ESG performance disclosures to meet these SPTs with the help of Enterprise Singapore and preferential pricing from UOB's network of preferred sustainability partners.
Ms. Lim Lay Wah, Group Head of Sector Solutions Group & Financial Institutions Group, UOB, stated, “The SAGE Programme sees an industry-first collaboration with leading industry partners to give our SME clients a seamless experience in implementing sustainability initiatives with pre-approved sustainability performance targets. The one-stop access will connect them to a network of sustainability service partners to advance their green transition.”
Geoffrey Yeo, Assistant Managing Director of Enterprise Singapore, added, “With growing focus on net zero from governments, investors and consumers, sustainability is no longer just a good to have for businesses. This programme with UOB provides Singapore enterprises with clear targets and the resources to develop their sustainability capabilities. Enterprise Singapore encourages our companies to tap this programme to improve their sustainability performance and remain competitive.”
For more details, please visit uob.com.sg/sage.
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Source: UOB
