United Overseas Bank Limited (UOB) announced that its investment management subsidiaries are now signatories of the United Nations (UN)-supported Principles for Responsible Investment (PRI), signaling its commitment to responsible investing.

UOB Asset Management (UOBAM), UOB Venture Management (UOBVM) and UOB Global Capital LLC (UOBGC) are now signatories of the United Nations (UN)-supported Principles for Responsible Investment (PRI), making UOB the first Singapore bank to have its investment companies sign up for the PRI.

The bank said that the move signals its commitment to responsible investing, integrating environmental, social and governance (ESG) considerations into its investment policies, processes and practices, and its objective to develop sustainable investment solutions for clients. 

«We use a structured risk management approach to creating sustainable, long-term returns for them (the investors). We will continue to enhance our ESG evaluation process by tapping fundamental analysis and technology, such as the use of artificial intelligence, and engage our portfolio companies to help improve their ESG practices,» said Thio Boon Kiat, Group CEO of UOBAM in a media statement on Monday. 

Six Principles

UOBAM, UOBVM, and UOBGC are principally third-party fund management companies. «By investing in training our people on relevant regulatory, industry and product trends and developments, we can also offer more ESG-focused funds that will align to the UN Sustainable Development Goals,» Thio added.

The UN-supported PRI is an international network of investors working together to put the six Principles for Responsible Investment into practice. By upholding the Principles, UOB will incorporate ESG issues into its investment analysis and decision-making processes, amongst other practices.

Other Actions

«Sustaining growth responsibly is a key pillar of UOB’s sustainability strategy. As such, we consider and manage the ESG risks, challenges, impact, and opportunities in all that we do, including our investing activities,» said Eric Lim, Head of UOB Group Finance and the Chairperson of the Bank’s ESG Committee, in the same media release.

Besides incorporating ESG issues, the bank also act on the following:

  • Be active owners and incorporate ESG considerations into its ownership policies and practices
  • Seek appropriate disclosure on ESG issues by the entities in which it invests
  • Promote the acceptance and implementation of the Principles within the investment industry
  • Work to enhance its effectiveness in implementing the Principles; and
  • Report on the activities and progress of its investment firms towards implementing the Principles

Signatories In Asia Increased

As at the end of September 2019, there were more than 2,600 PRI signatories globally, representing US$89 trillion of assets under management. In Asia, the number of signatories increased by 23 percent in the 12 months prior, with a total of 26 signatories in Singapore.

UOB Asset Management UOB Asset Management (UOBAM) is a wholly-owned subsidiary of United Overseas Bank Limited that was established in 1986. It currently manages 54 unit trusts in Singapore and is one of the largest unit trust managers in terms of assets under management. As of 30 November 2019, UOBAM and our subsidiaries manage about S$36.2 billion (US$26.4 billion) in clients' assets.