With a population of 700 million people and a combined gross domestic product of close to US$3 trillion, Southeast Asia accounts for 20 per cent of the world’s forest cover and rich biodiversity. The region has a landmass of more than 1.7 million square miles that supports natural habitats, agriculture, manufacturing and massive cities. It is also responsible for 1.5 billion tonnes of carbon dioxide emissions on an annual basis.

Therefore, Southeast Asia is critical in global efforts to address climate change and to drive sustainability. A leading bank in Asia, UOB believes that the financial industry has a responsibility to engage various stakeholders across the region and to help companies in their transition to promote sustainability.

Founded in 1935, UOB is deeply committed to Southeast Asia’s sustainable growth and prosperity, leveraging its fundamental strengths, along with a deep understanding of the region’s diversity and potential. UOB’s Deputy Chairman and Chief Executive Officer, Wee Ee Cheong, explains, “As the region transforms, we see tremendous opportunity in green technologies and business models, sustainable cities and infrastructure.”

It is increasingly clear that financial institutions are in a strong position to contribute to a region’s growth and development. UOB is aware of how it can motivate change and is determined to do just that. The company’s Chief Sustainability Officer, Eric Lim, speaks further to this, “UOB is committed to playing our role in the region’s transition towards a sustainable and climate resilient economy through the provision of sustainable financing and sustainable investment solutions.”

The bank is engaging with clients in the region, such as Sunseap and Musim Mas, and offers sustainable financing frameworks along with simple and transparent solutions to help them implement their sustainability strategies.

UOB is not working alone, as Eric Lim explains, “We believe that industry collaboration is the key to addressing highly complex sustainability issues that we are facing today, such as climate change.”

Industry collaboration is at the core of UOB programmes such as U-Solar, available in multiple Southeast Asian markets. The U-Solar programme benefits many business owners and homeowners in the region looking to make the switch to solar power.

Frank Phuan from Sunseap, a clean energy solutions provider specialising in solar power, shares, “UOB was the first one to look into how we can offer a one-stop solution for the residential segment. We are not only proposing a solar power system, but also EV charging, including energy storage on the house.”

UOB’s Head of Group Wholesale Banking and Markets, Frederick Chin, says, “U-Solar is Asia’s first one-stop solar power ecosystem and financing platform. Since its launch, U-Solar has facilitated the generation of almost 160 gigawatt hours of solar power across four markets, reducing more than 80,000 tonnes in greenhouse gas emissions. This is equivalent to taking more than 17,000 cars off the road a year.”

Such results demonstrate the impact of sustainable financing and responsible investments in a clear and measurable way.

Banks play a role in encouraging sustainability. Musim Mas’ Carolyn Lim explains, “Banks can be great facilitators of sustainable trade practices.” As a leading palm oil company with operations across 13 countries, Musim Mas appreciates the support UOB has provided to them in the form of dedicated green trade finance facilities to support its sustainability efforts. “The green trade financing from UOB complements our efforts in our sustainability journey through our supply chain and demonstrates how palm oil can be sustainably financed.”

UOB works with regulators and is an active contributor to industry initiatives. The bank is a supporter of the Task Force on Climate-related Financial Disclosures (TCFD). This earns UOB the credibility to engage with its stakeholders in positive and meaningful ways. Eric Lim explains, “Through targeted and integrated communications, we aim to demonstrate our thought leadership and help our stakeholders to build a deeper understanding of our purpose and practices and jointly work towards a sustainable future.”

UOB’s focus is simple: doing what is right. This focus ensures its activities and engagements are aligned with the global goals. The bank’s focus enables it to work wholeheartedly in forging a sustainable future. Wee Ee Cheong explains, “By working with stakeholders, from regulators to ecosystem players, we ensure the impact we create is positive and meaningful. We want to foster social inclusiveness and environmental well-being. By doing these things well and keeping our eye on the future, we can be a catalyst for impactful and lasting change.”