UOB: 20% of Lending Portfolio Faces High Nature-Related Risks
UOB aligns its sustainability report with TNFD recommendations, identifying significant nature-related risks and emphasizing water's critical role
United Overseas Bank (UOB) has become the first Singaporean bank to align its sustainability report with the Taskforce on Nature-related Financial Disclosures (TNFD) recommendations. This initiative highlights UOB's commitment to addressing nature-related risks within its operations.
In its latest sustainability report, UOB identified that approximately 20% of its corporate lending portfolio is exposed to high nature-related risks. The bank emphasized the critical importance of water, noting its extensive impact across various sectors and the current lack of tools for effective target-setting in this area. Despite focusing on sectors like agriculture, forestry, and mining, UOB's analysis did not include the oil and gas industry.
UOB's adoption of the TNFD framework reflects a broader trend among Singaporean companies. Alongside firms like City Developments Limited (CDL) and Olam Group, UOB is part of a cohort of 320 organizations from over 46 countries committed to publishing TNFD-aligned disclosures by financial years 2023, 2024, or 2025. These organizations represent a combined market capitalization of US$4 trillion and include over 100 financial institutions managing assets totaling US$14 trillion.
To further its sustainability agenda, UOB has established a Sustainability Advisory Panel. This panel comprises experts in climate science and sustainability, including Ms. Neo Gim Huay from the World Economic Forum, Mr. Yoon Young Kim of Schneider Electric, and Mr. Mark Gainsborough, Chairman of Seatrium. The panel's role is to provide independent advice on UOB's sustainability strategies and initiatives.
UOB's proactive approach to integrating nature-related financial disclosures and establishing advisory panels underscores the growing recognition of environmental factors in financial decision-making. By addressing nature-related risks and opportunities, UOB aims to contribute to a sustainable and resilient economy
Source and Credits: Information sourced from Eco-Business:
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