Our 2019 Snapshot
Our Sustainability Approach
UOB’s approach to sustainability is based on five guiding principles that act as a compass for how we address the material risks and opportunities which may impact our customers, colleagues, investors, suppliers and the communities in which we operate. We believe that as one of Asia’s largest banks, we have a duty to contribute to and to ensure the region’s long-term economic, social and environmental well-being. We also recognise that good corporate governance is essential for embedding sustainable business practices across the Group. This responsible, long-run approach is central to our business strategy and activities.

In our focus on creating sustainable value for our stakeholders, we also align our long-term business strategies with their interests. We believe in sustainable development that meets the needs of the present without compromising the ability of future generations to meet their own needs. This entails respect for the environment, human rights, labour rights, decent work and economic growth, data privacy and business ethics.

As we continue to deepen our presence across the region, we strive to address the environmental, social and governance (ESG) risks and impact of our operations in a manner consistent with our values of Honour, Enterprise, Unity and Commitment. This is also in line with our commitment to help ensure a safe, secure and trusted banking system.

We are cognisant of the direct environmental and social impact of our own operations and have set objectives and targets toward mitigating those impacts. We are also aware that our lending and funding activities have significant potential to affect the environment, society and the economy indirectly, in both positive and negative ways. Therefore, we are constantly enhancing the mechanisms to encourage our customers and suppliers to comply with all applicable local, national and international legislations, including those intended to safeguard the environment and social well-being. Further, we encourage our customers and suppliers to adopt suitable best practices that are aligned with internationally-recognised guidelines, codes and standards.
The Guiding Principles of Our Sustainability Approach
1
Regulatory Compliance as the Baseline
Align our sustainability approach with ESG policies and guidelines of governments in our key markets
2
Aligned to Business Strategy and Stakeholder Interests
Stay economically relevant by pursuing sustainable growth strategies
3
Pragmatic and Progressive
Implement sustainability programmes to manage ESG risks and opportunities sensibly, in line with market and competitive realities
4
Customer-centric
Engage our customers proactively to influence their sustainability practices positively
5
Values-driven
Based on our longstanding and distinct values
Board Statement on Sustainability
The Board is committed to building on the Bank’s rich heritage to continue creating long-term value for all its stakeholders. Integral to the business direction UOB takes is its sustainability strategy. In formulating this strategy, the Board considered the factors which contribute to the sustainable growth of the Bank. As part of the process, the Bank undertakes an annual exercise to gather and to assess data and insights from across the organisation and from its external stakeholders.

Together with Management, the Board identified opportunities relevant to the long-term success of the Bank and determined the material ESG risks to be managed. Through its Committees, the Board oversees the management and monitoring of these factors to ensure that the Bank is responding effectively to developments in the market and in view of its stakeholders’ expectations. The Board and Management are supported in this regard by the Bank’s dedicated ESG Committee comprising senior executives from functions across the organisation.
The framework of UOB’s sustainability reporting is in line with the Singapore Exchange (SGX) Sustainability Reporting Guide and the Global Reporting Initiative (GRI) Standards.

The Bank’s values of Honour, Enterprise, Unity and Commitment underpin UOB’s sustainability strategy. These will continue to guide its people, policies and processes to ensure the long-term interests of its stakeholders are met and the performance of UOB sustained.
The Four Pillars

In driving growth sustainably, we incorporate sustainability risk elements in our approach to risk management. This includes integrating ESG considerations into our credit evaluation and approval processes. We offer a range of sustainable solutions that can help our customers make a difference in their own communities. We are also progressively adopting as well as promoting climate-resilient practices which will support our customers in their own transition to a lower-carbon economy. Beyond financing, we continue to make significant strides in growing our impact investing portfolio.

As we focus on doing what is right for customers, we ensure that Fair Dealing principles are entrenched in all aspects of our relationship with them. Keeping their best interests in mind, we harness technology and use data to make banking simpler, smarter, safer and more intuitive for them. By doing so, we aim to make banking more accessible and inclusive to individuals and businesses in the communities in which we operate. Standing by our customers also means that we must protect their data and privacy by maintaining the security and robustness of our systems and processes.

Our colleagues enable us to ensure the best outcome for our customers, our business and our community. Hence we develop professionals of principle – high-performing teams and individuals who are guided by our values. We embrace diverse strengths and abilities as these enhance our capabilities and enrich our competitiveness. We equip our colleagues to take on the challenges of tomorrow even as we care for their welfare and work-life harmony today. We also foster a sense of belonging among our colleagues by encouraging volunteerism and improving engagement and satisfaction.

We believe that as a responsible financial services provider, we must uphold corporate responsibility by maintaining the highest standards of governance and risk culture, ensuring regulatory compliance and protecting the financial system. We remain steadfast in our commitment to promote social development in the areas of art, children and education. Both in our own operations as well as among our stakeholders, we also actively encourage and support environmental stewardship efforts. Together, these efforts help us contribute to a strong and sustainable future for the wider community.The four pillars of our sustainability strategy arise from our fundamental strengths and are rooted in our values of Honour, Enterprise, Unity and Commitment. They reflect UOB’s expertise, the responsibilities we hold and the role we can play for the long-term benefit of our key stakeholders. Each of the pillars determines a set of objectives which we strive to achieve to ensure that we implement our strategy with clear plans and purpose.
Promote United Nations Sustainable Development Goals with Our Stakeholders
  • Contribute economically to the progress of our communities
  • Embed environmental, social and governance risk in our approach to risk management
  • Integrate social and environmental considerations into our credit evaluation and approval processes
  • Adopt and promote climate-resilient practices to support our customers in their transition to a lower-carbon economy
  • Develop and provide sustainable financing and impact investment solutions
Drive Growth Sustainably
  • Protect customer data and privacy through secure and robust systems and practices
  • Ensure Fair Dealing
  • Create intuitive and  impactful customer experiences
  • Make banking simpler, smarter and safer through ethical use of technology and data
  • Make banking more accessible and inclusive
  • Support businesses across all stages of growth
Keep Customers at the Centre
  • Develop high-performing teams and future-focused individuals
  • Embed environmental, social and governance risk in our approach to risk management
  • Encourage volunteerism and advocacy for social and environmental causes
  • Ensure employee engagement and satisfaction
  • Ensure workplace health, safety and
    well-being
  • Embrace diverse abilities and strengths
Develop Professionals of Principle
  • Maintain highest standards of governance and risk culture
  • Ensure regulatory compliance
  • Protect the financial system against abuse
  • Incorporate sustainability principles into our procurement practices
  • Encourage environmental stewardship through efficient resource use and waste management
  • Champion social development in art, children and education
Uphold Corporate Responsibility
Rooted in Our Values of Honour, Enterprise, Unity and Commitment
Balancing growth with stability
Our sustainability strategy mirrors our business approach of balancing growth with stability. It takes into account the influence and impact our decisions and actions may have on our stakeholders and the environment. It also ensures that we remain economically relevant through managing ESG risks and opportunities practically and in line with market realities. To enable our programmes and initiatives to take root and to grow, we have ensured alignment with the ESG-related laws and regulations in each of our key markets. Just as our business strategy hinges on doing what is right for our customers, our sustainability strategy informs our engagement with our stakeholders and how we can help them in their own practices for positive outcomes in the long run.

When making business decisions and developing our products and services, we consider our stakeholders’ expectations in appreciation of what is material to them. As part of our commitment to sustainable and responsible growth, we also seek to identify, to assess and to manage social and environmental risks, challenges, impact and opportunities. This is carried out within a robust governance framework, underpinned by policies and guidelines that define our commitment and guide our approach to conducting business.

We refine our sustainability strategy continually through extensive discussions and workshops with teams from across the Bank. In our evaluation and planning, we start with internal factors that are key to the long-term growth of our business. Some of these factors are strong governance, employee health, safety and well-being, diversity and inclusion, as well as attracting, developing and retaining talent. Our deliberations also include wider sustainability trends affecting businesses globally, such as responsible financing, increasing interest in sustainability-related products and services and a changing regulatory landscape. In addition, we consider our alignment with the United Nations Sustainable Development Goals (UN SDGs) and the Paris Climate Agreement.
Alignment with the United Nations Sustainable Development Goals (UN SDGs)
The UN SDGs set the global agenda for sustainable economic, social and environmental development by 2030 and call for action by both the public and private sectors. In 2019, we aligned our strategy and reporting to all 17 UN SDGs, compared with 11 in 2018. We recognise that while UOB is better placed to contribute directly to a sub-set of the Global Goals, the broadening scope of our sustainable financing and impact investment activities and their corresponding positive impact enable us to align more closely with all the Global Goals. Consequently, we are now aligned with six additional UN SDGs, namely: SDG 1 No Poverty; SDG 2 Zero Hunger; SDG 6 Clean Water and Sanitation; SDG 10 Reduced Inequalities; SDG 14 Life Below Water; and SDG 15 Life on Land.
The Global Goals
Global Targets Toward Which We Can Align Our Efforts
Material ESG Factor and Page Reference
1
No Poverty
Global Target 1.4 Equal rights to economic resources, basic services, natural resources, appropriate new technology and financial services, including microfinance
  • Financial Inclusion, page 96
2
Zero Hunger
Global Target 2.3 Increase in agricultural productivity and incomes of small-scale food producers through knowledge and financial services
  • Supporting Customers in Sustainable Development, page 86
3
Good Health and Well-being
Global Target 3.8 Health coverage and access to quality essential healthcare services and access to safe, effective, quality and affordable essential medicines and vaccines for all
  • Workplace Safety, Health and
    Well-being, page 100
Global Target 3.C Increase in health financing and the recruitment, development, training and retention of the health workforce in developing countries
  • Supporting Customers in Sustainable Development, page 86
4
Quality Education
Global Target 4.4 Increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship
  • Community Development, page 115
Global Target 4.6 Build and upgrade inclusive and safe schools
  • Community Development, page 114
Global Target 4.7 Learners to acquire knowledge and skills needed to promote sustainable development, including, among others, through education for sustainable development
  • Community Development, page 117
5
Gender Equality
Global Target 5.5 Full and effective participation and equal opportunities for women at all levels of decision-making in political, economic and public life
  • Diverse and Inclusive Workforce, page 101
6
Clean Water and Sanitation
Global Target 6.3 Improve water quality by reducing pollution, halving the proportion of untreated wastewater and increasing recycling and safe reuse globally
  • Supporting Customers in Sustainable Development, pages 82-83 and page 85
7
Affordable and
Clean Energy
Global Target 7.2 Increase share of renewable energy in the global energy mix
  • Supporting Customers in Sustainable Development, pages 82-85
Global Target 7.3 Global rate of improvement in energy efficiency to double
  • Supporting Customers in Sustainable Development, pages 82-85
Global Target 7.B Infrastructure expansion and technological upgrade in order to supply modern and sustainable energy services for all in developing countries
  • Supporting Customers in Sustainable Development, pages 82-85
8
Decent Work and Economic Growth
Global Target 8.2 Higher levels of economic productivity achieved through diversification, technological upgrading and innovation
  • Customer Experience, page 92
  • Innovative Digital Banking Products, page 93
Global Target 8.3 Development-oriented policies promoted to support productive activities, decent job creation, entrepreneurship, creativity and innovation, and to encourage the formalisation and growth of micro-, small- and medium-sized enterprises, including through access to financial services
  • Financial Inclusion, page 97
Global Target 8.4 Improvement in global resource efficiency in consumption and production and decoupling of economic growth from environmental degradation
  • Supporting Customers in Sustainable Development, pages 82-83
Global Target 8.5 Full and productive employment and decent work to be achieved for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value
  • Supporting Customers in Sustainable Development, page 87
  • Attracting, Developing and Retaining Talent, page 99
Global Target 8.10 Capacity of domestic financial institutions to be strengthened to encourage and expand access to banking, insurance and financial services for all
  • Financial Inclusion, page 94
9
Industry, Innovation and Infrastructure
Global Target 9.1 Quality, reliable, sustainable and resilient infrastructure to support economic development and human well-being
  • Workplace Safety, Health and
    Well-being, page 100
Global Target 9.3 Increase in access  to small-scale industrial and other enterprises to financial services, including affordable credit, and their integration into value chains and markets
  • Financial Inclusion, page 97
Global Target 9.4 Upgrade infrastructure to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally-sound technologies and industrial processes
  • Supporting Customers in Sustainable Development, pages 82-85
  • Managing our Direct Environmental Footprint, pages 107-109
10
Reduced Inequalities
Global Target 10.2 Social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status
  • Supporting Customers in Sustainable Development, page 87
  • Diverse and Inclusive Workforce, page 101
11
Sustainable Cities and Communities
Global Target 11.4 Strengthen efforts to protect and safeguard cultural and national heritage
  • Community Development, page 113
Global Target 11.6 Reduced adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management
  • Supporting Customers in Sustainable Development, pages 82-85
  • Managing our Direct Environmental Footprint, pages 107-109
12
Responsible Consumption and Production
Global Target 12.5 Reduction in waste generation through prevention, reduction, recycling and reuse
  • Managing our Direct Environmental Impact, pages 107-109
Global Target 12.6 Companies, especially large and transnational companies, encouraged to adopt sustainable practices
  • Supporting Customers in Sustainable Development, pages 82-85
Global Target 12.7 Promotion of sustainable procurement practices in accordance with national policies and priorities
  • Sustainable Procurement, page 106
13
Climate Action
Global Target 13.2 Integration of climate change measures into policies strategies and planning
  • Climate Change Transition and Opportunities, page 80-81
Global Target 13.3 Improvements in education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning
  • Supporting Customers in Sustainable Development, page 82
  • Community Development, page 117
14
Life Below Water
Global Target 14.1 Prevention and reduction of marine pollution of all kinds, in particular from land-based activities, including marine debris and nutrient pollution
  • Supporting Customers in Sustainable Development, pages 82-83 and page 85
15
Life on Land
Global Target 15.A Increase in financial resources to conserve and sustainably use biodiversity and ecosystems
  • Supporting Customers in Sustainable Development, page 83 and page 85
16
Peace, Justice and Strong Institutions
Global Target 16.5 Reduction in corruption and bribery in all their forms
  • Preventing Corruption, Fraud and Money Laundering, page 104
17
Partnership for the Goals
Global Target 17.16 Multi-stakeholder partnerships that mobilise and share knowledge, expertise, technology and financial resources, to support the achievement of the sustainable development goals
  • Responsible Financing, page 79
  • Climate Change Transition and Opportunities, page 81
  • Supporting Customers in Sustainable Development, page 82
  • Information Security and Data Privacy, page 88
  • Financial Inclusion, page 94
  • Diverse and Inclusive Workforce, page 101
  • Preventing Corruption, Fraud and Money Laundering, page 104
Global Target 17.17 Effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships
  • Supporting Customers in Sustainable Development, page 87
How We Engage with Our Stakeholders
Material ESG Factors
Sustainability Governance
Sustainability Reporting
ESG in Investing