31/10/2023 (Singapore) - United Overseas Bank (UOB) has unveiled its inaugural net zero progress report, underscoring its earnest pledge to achieve net zero emissions by 2050. The update reveals encouraging advances in the bank's goals, especially concerning its designated focus sectors.
Diving into specifics, UOB has set emissions reduction benchmarks for five pivotal sectors: power, automotive, real estate, construction, and steel. The bank's 2022 data indicates an impressive drop in emissions intensities throughout these sectors, reporting metrics that stand between seven to 14 per cent beneath their corresponding net zero target reference pathways.
A pivotal aspect of UOB's commitment, established last year, is its decision to discontinue new financial support for upstream oil and gas ventures greenlighted post-2022. Notably, these sectors, together with the aforementioned five, constitute approximately 60% of UOB's corporate lending inventory.
In devising its sector-specific goals, UOB employed globally acknowledged climate science models. The bank's strategy accentuates its faith in facilitating a balanced transition in Southeast Asia. This is to concurrently bolster economic growth and amplify energy accessibility across the region's multifaceted economies.
Elaborating on the strides and obstacles in achieving net zero across these sectors, the report elucidates how UOB is amping up its efforts to work closely with clients and foster ties with international and regional decarbonisation stakeholders.
Mr Wee Ee Cheong, UOB's Deputy Chairman and CEO, expressed, "At UOB, our objective is to ensure a structured and equitable shift to net zero, fortifying economic progression and enhancing energy access. We're geared to spur funding and aid our clientele in this transformative journey. Our initiatives also encompass refining our operational protocols and solidifying partnerships with diverse stakeholders to usher in profound changes."
Continuing on this note, he stated, "Rooted in our commitment to our clients and partners, we aspire to forge a positive imprint on individuals, enterprises, and communities. Our vision is a sustainable future, not just for ASEAN but also for all entities engaging with it."
By the close of September 2023, UOB has already allocated S$38 billion towards sustainable financing. Going forward, the bank is geared to continually refine its sustainable finance blueprints, while actively exploring avenues to assist clients in their decarbonisation objectives.