Net Zero Commitment

We have based our net zero targets on regional pathways. While we are guided by the science in setting our targets and aligning with global net zero models, we have stayed pragmatic and where possible, extracted regional pathways that represent the fair contributions of our key markets.

As a start, we have covered two key carbon-emitting ecosystems, namely energy and the built environment. These span six focus sectors that are material contributors to GHG emissions regionally and account for about 60 per cent of UOB’s corporate lending portfolio. The six sectors are among the most important for decarbonisation and our targets in these sectors reflect our ambition to facilitate this change end to end.

We are guided by the science in setting our net zero targets and have based our targets on internationally-recognised climate models. In consideration of structural differences across the region, we have extracted regional pathways for some targets that represent fair contributions of our key markets. 

Our approach is in line with the guidance from the Glasgow Financial Alliance for Net Zero (GFANZ) on how financial institutions should set targets and use sectoral pathways in alignment with the Paris Agreement and the 1.5°C global warming trajectory outlined by the Intergovernmental Panel on Climate Change. We have applied standards by the Partnership for Carbon Accounting Financials (PCAF) to account for the GHG emissions associated with our financed portfolio. Our data selection priority is also in line with PCAF’s guidance, with limited deviations where necessary to reflect the reality of emissions data availability.