United Overseas Bank (UOB), a leading bank in Asia, has launched its Green and Sustainable Deposits solution for corporate and institutional clients.
This new service, which is the first of its type in Singapore, was piloted with GIC.
The UOB stated that deposits from companies will be used to finance projects that meet environmental, social and governance (ESG) criteria and are aligned with the United Nations Sustainable Development Goals (SDGs).
Deposits are deployed to green loans under UOB’s sustainable finance frameworks. The frameworks cover financing solutions for eligible assets and activities that meet specific ESG criteria within green real estate, renewable energy, energy efficiency, smart city infrastructure and the circular economy.
All projects financed under UOB’s sustainable frameworks are aligned with the UN SDGs.
A minimum deposit size for the solution is SGD 10m ($7.1m) and is open to companies globally. Companies will earn market interest rates on their cash deposits.
One of the key features of the new solution is an annual report that will provide companies information about the environmental impacts their deposits have made. For example, companies can see which industries their deposits have gone to.
This report also highlights greenhouse gas emissions avoided and the corresponding effects, such as the equivalent number of tree seedlings planted and the number of cars taken off the road.
Companies can use this report to quantify their contributions to sustainable development and use the information for their own sustainability reporting.
UOB head of the global financial institutions group Lim Lay Wah said, “Our Green and Sustainable Deposits solution gives our clients an opportunity to put their money where it matters. It provides direct involvement in the financing of meaningful sustainability projects globally. We thank GIC for placing their trust in us.
“At the same time, we welcome other like-minded organisations to integrate responsible financing into their businesses and join us on this sustainability journey.”
Singapore recently got a new ESG reporting committee. Two financial regulatory authorities in the country established a sustainability reporting advisory committee to supply guidance on a roadmap for companies in the country.
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