Singapore – United Overseas Bank has launched a new finance framework to help make sustainable financing more accessible to companies committed to advancing smart cities in Asia.

United Overseas Bank (UOB), a Singapore-based multinational bank, has become the first bank in Asia to set out criteria that its corporate and institutional clients must meet to access sustainable banking products, such as green or sustainability-linked loans. For example, companies must have a clear sustainability strategy and objectives, achieve their sustainability performance targets and use the proceeds to further their sustainability agenda.
 
In addition, the new Smart City Sustainable Finance Framework requires that companies also be able to demonstrate that their activities will promote a better quality of life for urban residents through the use of renewable energy, green building construction, improved energy efficiency, green transport, sustainable water and waste adaptation, and/or climate change adaptation.
 
According to Frederick Chin, Head of Group Wholesale Banking and Markets at UOB, financial institutions have an important role to play in making Asian cities more sustainable and liveable by bridging the financial gap in achieving the UN's Sustainable Development Goals.
 
“Under our UOB Smart City Sustainable Finance Framework, we will be able to support the sustainability efforts of more companies from various sectors, working with them closely for the development of sustainable and smart cities.”
 
The bank intends to monitor how companies manage their loan proceeds and the environmental and social impact of their business activities on an annual basis.
 
The UOB Smart City Sustainable Finance Framework is an expansion of the UOB Green Infrastructure Financing Framework, which was launched in 2019, which guides the financing of sustainable buildings.