United Overseas Bank (UOB) has announced a significant enhancement to its Sustainable Financing Frameworks by incorporating the Singapore-Asia Taxonomy, a move aimed at bolstering support for small- and medium-sized enterprises (SMEs) in sectoral value chains. This initiative, unveiled on 15 April 2025, is designed to streamline SMEs’ access to sustainable financing, aligning their practices with global standards tailored to regional needs.
UOB stands as the sole Singaporean bank to integrate the Monetary Authority of Singapore’s Technical Screening Criteria into its six sector-focused frameworks, which include Circular Economy, Green Buildings, Sustainable Cities, Sustainable Food and Agribusiness, Sustainable Trade, and Transition Finance. These frameworks have been independently validated by ERM, ensuring their credibility.
The bank’s approach ensures that sustainable financing remains accessible, particularly for SMEs, by adopting a risk-based, differentiated assessment model. This model requires entities seeking significant financing to demonstrate compliance with specific criteria, whilst those with lower risk profiles follow an attestation-based approach.
UOB has also expanded its Transition Finance Framework to support the oil, gas, and chemicals sectors in transitioning to lower-carbon solutions, referencing global best practices such as the EU Taxonomy and the Climate Bonds Initiative Taxonomy.
Lim Lay Wah, Group Head of Sector Solutions at UOB, emphasised the bank’s commitment to balancing environmental integrity with economic growth, stating, “By enhancing our Sustainable Financing Frameworks, we deepen our impact, fostering a just transition where no business is left behind.”
In 2024, UOB provided $42.5 billion (S$58 billion) in sustainable financing, supporting 580 SMEs and facilitating $5.1 billion (S$7 billion) in sustainable trade financing, underscoring its proactive role in advancing ASEAN’s green economy.
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