With strong alignment among governments, asset managers and customers, the bank is positive about building a net-zero future, its sustainability chief said.
UOB is on track to hit $15 billion in sustainability loans ahead of its target date of 2023, and will look to increase its commitments going forward, chief sustainability officer Eric Lim said at a media briefing on Tuesday.
Newly appointed to the role, Lim, also UOB's head of finance, highlighted the estimated $1 trillion in sustainable opportunities across Southeast Asia, ranging from renewable and transitional energy, to food and agriculture, green cities and efficient industries, and said that while the region is an untapped growth market with high potential, the relevant frameworks are already in place.
Exiting Coal Investments
Lim said UOB will be able to exit its exposure to coal-fired power plants within five years. Phasing out its exposure to thermal coal will take more time and the bank does not want to make a hard deadline, as rival DBS has done.
He noted that most Southeast Asian countries still heavily rely on coal as an energy source, so the bank wants to work with large national anchors that have the capacity to make the transition, Lim said.
«The last thing you want to do is keep piling investment dollars into a sunset industry,» Lim said.
Helping Businesses Transition
UOB is hoping the bank's finance frameworks – the Smart City Sustainable Finance Framework, Real Estate Sustainable Finance Framework, and Green Circular Economy Framework – will be able to help businesses advance responsibly on their sustainability journey and help their business models transition.
«There's no point for us shouting about sustainability if we can't bring our customers along on the journey,» Lim said.
