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. We are pleased to state that for its disclosure on material topics in its Annual Report 2017, UOB received Special Recognition for Stakeholder Engagement and Materiality at the Singapore Sustainable Business Awards 2018. The report was also a finalist for Asia's Best Sustainability Report within an Annual Report at the Asia Sustainability Reporting Awards 2018.

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.

Group Annual ReportsGroup Annual Reports

Strategy & Governance

Sustainability Strategy

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 green 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.

Sustainability Governance Structure

In 2018, the Bank set up a dedicated ESG Committee, a senior management committee that reports directly to the Management Executive Committee (MEC) on the Group’s sustainability matters. This ensures that ESG factors are given due consideration in all aspects of our operations. The ESG Committee members represent the Bank’s business and support units, and through their activities, seek to address the potential risks and effects of our operations in relation to the economy, environment and society. The ESG Committee reviews material ESG topics, identifies risks and opportunities, evaluates emerging issues, collates and assesses relevant data, and monitors the progress of sustainability-related programmes and initiatives.

The Board, through the Executive Committee, and the MEC review and determine the material ESG factors and their scope, evaluate key performance indicators, review long-term business and organisational goals and provide the strategic direction for the Bank’s sustainability practices. They also oversee the management and monitoring of these material ESG factors, and review and approve relevant disclosures.

Sustainability Governance Structure