Glossary

The common metric used to compare emissions from the various types of greenhouse gases. Different greenhouse gases have different potentials for global warming; by converting all greenhouse gases to the common measure of tonnes of CO2e, companies are able to be consistent in their measurement and comparison. For example, one tonne of methane would be equal to about 25 tonnes of CO2e, because it has a global warming potential that is approximately 25 times that of one tonne of carbon dioxide.

The increase in the average temperature of the Earth’s climate system, apparent from the mid- to late-20th century onwards. Climate change is attributed primarily to the higher amounts of greenhouse gases in the atmosphere resulting from the burning of fossil fuel, the production of industrial products, livestock farming, crop fertilisation and deforestation. The gases trap heat in the atmosphere and are expected to have a variety of effects on the planet, including sea level rise, droughts and severe weather events.

The Bank’s long-term involvement in and support of inclusive community programmes to further social good and create a positive impact on the community through corporate philanthropy, community partnerships and employee volunteerism.

Refers to the measurement that determines how satisfied customers are with our products and services and their overall satisfaction based on recent interaction with the Bank, on a scale of zero to 10.

Singapore Dollars unless specified otherwise.

Programmes and initiatives that help individuals and businesses access useful, appropriate and affordable financial products and services that meet their needs (for example transactions, payments, savings, credit and insurance) delivered in a responsible and sustainable way.

A set of internationally recognised standards that helps businesses, governments and other organisations communicate and report their risks and impacts for environmental, social and economic topics.

A measure of the amount of heat a greenhouse gas is able to trap in the atmosphere relative to carbon dioxide gas.

Any type of loan instrument made exclusively to finance or to re-finance, in whole or in part, new and/or existing Green Projects that are deemed eligible under UOB Umbrella Frameworks or borrowers’ frameworks and which are aligned to the Loan Market Association /Asia Pacific Loan Market Association (LMA/APLMA) Green Loan Principles.

Gaseous pollutants that absorb infrared radiation and trap heat in the atmosphere. The primary greenhouse gases are carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulphur hexafluoride.

The deployment of capital in companies with the deliberate intention of generating positive social and/or environmental benefits alongside, and as a means of, achieving positive financial returns.

A system of banking that complies with Islamic law (Shariah).
The underlying principles that govern Islamic banking are mutual risk between parties, assurance of justice and fairness (al-‘adl wal Ihsan).
In generating profit, Islamic banking transactions are based on an underlying activity or asset.

Material sustainability issues include the environmental, economic, social and governance risks and opportunities that can act as potential barriers or enablers to achieving business goals in the short, medium and long term.

Environmental, social and governance, as well as economic, factors can impact the risk and return profile of our financing and investment decisions as well as our internal operations. Such factors are considered by investors and other stakeholders in assessing and measuring the sustainability of a company and its business activities. The same factors are considered, in turn, by the Bank to ensure that our stakeholders abide by our values and principles.

The methodology by which we identify and assess the material ESG factors that have an impact on our business and influence stakeholder decision-making.

A material supplier is a new, existing or re-contracted supplier that performs a material outsourcing activity which, if disrupted, has the potential to impact our business operations significantly or our ability to manage risks effectively. Material suppliers also include those that supply goods and/or services to the Bank with an annual spend of $2,000,000 or more.  

The provision of financial services to individuals, households and
micro-enterprises that are normally excluded from conventional
banking services.

A metric used to measure the likelihood of a customer recommending a company’s brand, product or service to others. The NPS is an established worldwide metric used to measure customer loyalty and to predict business growth.  

The integration of ESG factors into our credit and risk evaluation process for financing activities.

Direct emissions that originate from operations or assets which are owned or controlled by the organisation including on-site generation of electricity, steam or heat in equipment, travel in cars and other vehicles owned or controlled by the company and hydrofluorocarbons emitted from refrigeration or air-conditioning equipment.

Indirect emissions resulting from the generation of grid electricity, heat or steam by an outside organisation, such as an electricity provider, but which is utilised by the reporting organisation.

All other indirect emissions which occur at sources the organisation neither owns nor controls. Scope 3 emissions can result from business travel in non-company vehicles, especially commercial planes; employees commuting in non-company vehicles, as well as the activities of suppliers, customers and contractors.

The time provided by UOB to allow our colleagues to volunteer in approved volunteerism activities either during working or non-working hours as per the UOB Group CSR Policy.

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.

Any type of loan instrument and/or contingent facility (such as bonding lines, guarantee lines or letters of credit) which incentivise the borrower to achieve pre-determined sustainability performance objectives. The borrower’s sustainability performance is measured using sustainability performance targets, which can include key performance indicators, external ESG ratings or equivalent metrics which measure improvements in the borrower’s sustainability profile.

Industry-led initiative established by the Financial Stability Board in 2015 at the request of G20 to develop a set of voluntary climate-related financial risk disclosures which can be adopted by companies so that those companies can inform investors and other members of the public about the risks they face related to climate change. The Recommendations of the TCFD are organised around four pillars, namely governance and management, strategy, management of climate change-related risks and metrics and targets in place to address the impacts.

The PRI sets out six principles that serve as a global standard for responsible investing. They also provide guidance to financial institutions on the integration of ESG factors in the investment process and active ownership.

The 17 UN SDGs, also known as the Global Goals, were adopted by the United Nation Member States in 2015 and form the core of the 2030 Agenda, a universal call to action for governments, businesses and civil society to end poverty, to protect the planet and to ensure peace and prosperity for all people by 2030.