The bank has announced that it will integrate environmental, social and governance (ESG) considerations into its full suite of retail investment solutions.
The move is part of the bank’s commitment to driving growth sustainably by working with like-minded partners in designing and offering solutions that enable customers to support environmental and social responsibility through their investments, UOB said in a statement on Wednesday.
UOB has also developed a due diligence framework to ensure its solution providers for products offered to consumers across segments, such as unit trusts, bonds and structured products, demonstrate a commitment to addressing ESG risks and opportunities, and have operationalized policies and processes in place and/or adopt or align to globally recognized standards.
«In encouraging and helping our customers to reshape their investment portfolios, we are partnering them to invest wisely and responsibly, and to do good while achieving returns on their investments,» Jacquelyn Tan, UOB head of group personal financial services, said.
Growing Demand
UOB noted growing consumer demand for ESG-structured products, with the year-to-date transaction value, which stood at S$200 million ($147 million) as at 30 September 2020, exceeding the figure for the whole of 2019.
The bank ESG-focused products include unit trusts such as UOB Asset Management’s United Sustainable Credit Income Fund and the Allianz Global Sustainability Fund, as well as green bonds selected from the constituents of the Bloomberg MSCI Green Bond Index.
