Singapore Bank Sees Progress on Net Zero Targets

Singapore’s third largest lender UOB has released its first net zero progress report on its commitment to reach net zero by 2050, saying it is making positive headway in meeting the targets set for its focus sectors.

UOB’s net zero commitment includes specific reduction targets for five sectors – power, automotive, real estate, construction, and steel. Based on its 2022 data, the Bank achieved reductions in emissions intensities across all five sectors, with the various metrics at seven to 14% below the respective net zero target reference pathways.

The Bank’s commitment made last year also includes no new financing for upstream oil and gas projects approved for development after 2022. Together, the six sectors make up about 60% of its corporate lending portfolio.

Using internationally-recognised climate science models, UOB based its sectoral targets on regional pathways that align with global net zero goals. This approach reflects UOB’s strong belief in the need for a just transition in Southeast Asia, to support socioeconomic growth and improve energy access across the region’s diverse economies.

*Certain figures presented in these charts may not reflect the absolute values due to rounding.

The report details the opportunities and challenges faced in meeting the net zero targets across sectors and explains how the Bank is stepping up efforts to engage clients and deepen collaboration with global and regional stakeholders on decarbonisation. 

Wee Ee Cheong, Deputy Chairman and Chief Executive Officer, of UOB, said: “At UOB, we support an orderly and just transition to net zero so that economies continue to grow and people’s access to energy continues to improve.”

“We are here to catalyse funding and support our customers on their transition journey. We have also taken steps to transform our operating processes and to deepen our collaboration with the larger ecosystem of stakeholders, including across all levels of government, economy, and society to effect transformative changes.”

“Building on our promise to do right by our customers and stakeholders, we want to create a positive impact for individuals, businesses, and communities. Together, we can forge a sustainable future for the people and businesses in our home region of ASEAN and those connecting with the region,” the CEO added.