UOB highlights six sectors in its commitment to reach 2050 net zero targets

07/11/2022 01:01 PM

KUALA LUMPUR, Nov 7 (Bernama) -- United Overseas Bank (Malaysia) Bhd (UOB) has highlighted six sectors -- making up 60 per cent of its corporate lending portfolio -- as part of its commitments to reach net zero by 2050.

These six sectors are power, automotive, oil and gas, which are part of the energy value chain, as well as real estate, construction and steel, which are part of the built environment value chain, UOB said in a statement today. 

It said the commitments underscore its goal to support a just transition that advances sustainable socioeconomic development in tandem with decarbonisation in Southeast Asia.

"Using internationally-recognised climate science models, UOB based its sectoral targets on regional pathways that align with global net zero goals.

This approach to net zero reflects UOB’s strong belief in the need for a just transition in Southeast Asia that continues to support economic growth and improve energy access across the region’s diverse economies," it added.

Deputy chairman-cum-chief executive officer Wee Ee Cheong said the bank's net zero ambitions must go hand in hand with an orderly and just transition to take into account socioeconomic challenges in Southeast Asia.

"Even as we cut our carbon footprint, we must ensure that people’s lives and livelihoods can continue to improve, and it is important to balance growth with responsibility on our net zero journey," he said.

The bank said its commitments also include interim 2030 targets to reflect the necessary near-term progress on the path to net zero.

"In addition, UOB has committed to exit financing for the thermal coal sector by 2039, on top of its existing prohibitions on the new project financing of greenfield or expansion of coal-fired power plants and thermal coal mines.

"UOB is integrating its net zero plans into its business strategies and will step up its efforts to work closely with clients and other stakeholders towards decarbonisation," it said, adding that it will conduct annual reporting to track progress against its net zero commitments.

Underlining its commitment to regional and global decarbonisation efforts, UOB has joined the Net-Zero Banking Alliance, made up of 121 banks from 41 countries with US$70 trillion (US$1 = RM4.74)  in global banking assets.




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