UOB

UOB performs fairly well in the aspects of governance, stewardship and lobbying. Governance-wise, it assigns decision-making and oversight responsibility for its sustainability strategy to its highest governance body and responsibility for implementing its sustainability strategy to specific functions, teams or committees. Additionally, it links performance criteria for remuneration at the senior executive level to specific sustainability targets. In terms of stewardship, UOB has a stewardship policy that supports environmental transitions and social best practices in line with its sustainability strategy and covers client and other stakeholder engagement as well as advocacy and partnerships. It transparently identifies the key sectors, clients and investees to engage with on climate issues as well. As for lobbying, not only does it disclose a list of the trade associations of which it is a member, but it also specifies that it does not make political contributions.

UOB also discloses other information regarding its organisational footprint, financing and operational data. For instance, it monitors its scope 1-2 emissions. It also discloses the amount and/or share (in monetary terms) products, services and capital provided to small-and medium-sized enterprises, as well as its operation by country (e.g. by number of employees or revenue).

There is scope for UOB to enhance its disclosures in various aspects, particularly its impact materiality strategy, targets and plans, financing towards fossil fuels and high-emitting sectors, organisational carbon footprint and financing to underrepresented groups and sectors, as well as low and lower-middle income countries.

While UOB identifies material sustainability impacts across its value chain, it could further detail its process and how objective criteria and/or supportable evidence were considered for identification and prioritization of impacts. It is also recommended that UOB discloses that it conducts third-party assurance or verification of their target reporting. When it comes to financing fossil fuels and high-emitting sectors, it has an opportunity to disclose the total amount it spends on fossil fuels and other high-emitting sectors. It could also consider not providing products, services or capital to some fossil fuel projects or some clients and investees undertaking such projects and a time-bound strategy to phase out the provision of products, services and capital to existing fossil fuel projects and clients and investees across the fossil fuel value chain, which lack a well-defined strategy aligned with a 1.5°C trajectory.

In terms of organisational carbon footprint, while UOB monitors scope 3 emissions beyond financed emissions, it could cover additional categories and provide a rationale for those excluded. Similarly, while UOB provides some details regarding the methodology applied in their carbon footprint calculation, it has the opportunity to cover all aspects including emissions coverage for each category, data types, sources for applied emission factors and reference to applied standard.

It is recommended that the financial institution discloses that it has established a transition plan covering its own operations, supply chain and portfolio as well. Lastly, it could consider disclosing the breakdown of clients and/or beneficiaries by income group and its processes for avoiding divestment from low-income and lower-middle countries as unintended consequences of its sustainability strategies and targets.

This scorecard refers to information in English which was publicly available by July 15 2024. AuM and Total assets are stated in USD for comparability and have been calculated based on reported local currency values multiplied by applicable IMF currency converter values.