UOB has received approval to join the Equator Principles Association and has adopted the Equator Principles (EPs), a risk management framework used by financial institutions globally for determining, assessing and managing environmental and social risk in projects.
The EPs provide financial institutions with a set of internationally-recognised standards for due diligence and monitoring of projects to support responsible risk decision-making. As an Equator Principles Financial Institution (EPFI), UOB will be committing to the implementation of the EPs in its environmental and social policies, procedures and standards for financing projects.
Mr Eric Lim, Chief Sustainability Officer, UOB, said, “As an EPFI, we will ensure that rigorous environmental and social standards are applied in the projects we support, from the project development stage through to follow-up monitoring. UOB’s adoption of the EPs underscores our ongoing integration of sustainability into our business strategy and lending practices, as we fulfil our role as a catalyst and enabler in helping our clients across the region to grow responsibly.”
The regional bank monitors and manages its environmental, social and governance risk actively. With the adoption of the EPs it will further strengthen the bank’s processes and practices to enhance its approach to ESG risk management, Responsible Financing Policy and disclosure. In supporting the national sustainability agenda of the countries in which it operates, UOB is also proactively working with its clients to drive sustainable development. Currently it provides sustainable financing solutions that enable its clients to create positive environmental and social impact in areas such as sustainable infrastructure and land use, renewable and transitional energy, energy efficiency and connectivity, as well as circular economy.
These solutions are anchored by the bank’s sustainable finance frameworks, including the UOB Smart City Sustainable Finance Framework, the UOB