At UOB, we drive growth sustainably by designing and offering solutions that help our customers make a positive impact on the environment and society. From large purchases to everyday spend, our customers can make greener choices for more sustainable living.
In 2021, we launched the UOB Go Green Home Loan and UOB Go Green Car Loan for our customers in Singapore. To qualify for the UOB Go Green Home Loan, the property to be financed must be awarded the Green Mark certification by the Building and Construction Authority Singapore. Under our U-Solar programme, we also offer customers interest-free instalment plans when they use a UOB credit card to pay for their purchase and installation of solar power systems for their homes. The UOB Go Green Car Loan is available for the purchase of fully-electric vehicles (EVs). In 2021, we expanded our partner ecosystem to seven car dealers, which cover more than 90 per cent of new EV models in the country. We purchase Renewable Energy Certificates (RECs) for every UOB Go Green Home Loan or UOB Go Green Car Loan. One REC is created for every megawatt of energy generated from renewable sources such as solar, wind, hydro and geothermal energy. The purchase of RECs is a simple way for our customers to offset their carbon footprint.
In 2021, we awarded close to
1,400
RECs, greening
1,334,000
kilowatt hours of electricity. This is equivalent to nearly
545,000
kilograms of carbon dioxide (CO2 ) emissions being absorbed by
27,000+
raintrees.
In 2021, we also launched in Singapore the UOB EVOL Card, which is Southeast Asia’s first bio-sourced credit card. Each UOB EVOL Card:
is made of 82 per cent plant-based polylactic acid material from non-edible corn;
saves 4.48 grams of polyvinyl chloride; and
produces 10 grams less of CO2 emissions.
To help our customers reduce their carbon emissions on electricity consumption, we also offer green energy plans in collaboration with open energy market retailers in Singapore.
In protecting and building our customers’ wealth, we have in place our Risk-First wealth advisory approach that is focused on helping our customers safeguard their assets before taking on more risk through tactical investments. Aligned to this approach, we offer a full suite of investment solutions that integrate environmental, social and governance (ESG) considerations. Such investment solutions include:
unit trusts that focus on companies creating a positive impact on the environment and society;
green bonds issued by companies to fund environmental or climate-related projects; and
structured notes that are linked to assets that embed ESG considerations as part of their business models and processes.
In 2021, our total assets under management (AUM) in ESG-focused investments for our retail customers jumped
4x
compared with the previous year.
The unit trusts we offer across the region include:
United Smart Sustainable Singapore Bond Fund;
United Sustainable Credit Income Fund;
United Sustainable Equity Solution Fund;
Allianz Global Sustainability Fund;
BNP Paribas Energy Transition; and
Schroder ISF Global Climate Change Equity.
In recognition of our efforts in steering consumers’ wealth to sustainable investments, we were awarded Best Wealth Manager for Impact Investing, Asia at The Asset Triple A Private Capital Awards 2021. To sharpen our focus on serving the wealth needs of our high-net-worth clients and to be their bank of choice, in 2021 we established a Private Wealth arm dedicated to developing and offering holistic advisory products and services for our Private Bank and Privilege Reserve client segments. We continued to strengthen our people, product and platform capabilities, focusing on providing advisory excellence and solutions centred on trust and client care. Within the Private Bank, we are focusing our client coverage by three regional market groups, namely Singapore, Southeast Asia and North Asia. Our efforts to provide best-in-class solutions were recognised with the Best Private Bank for Innovative Client Solution (Data Analytics) in Southeast Asia at the WealthbriefingAsia Awards 2021.
Making a positive impact through fund management
Our fund management arm, UOB Asset Management (UOBAM), develops and offers a comprehensive suite of products, ranging from unit trusts and exchange-traded funds (ETFs) to customised portfolio management services. As a signatory of the United Nations (UN)-supported Principles for Responsible Investment, UOBAM is committed to helping investors make a positive impact. In 2021, UOBAM’s new ESG-focused retail funds included:
UOB APAC Green REIT ETF, the world’s first ETF focusing on green real estate investment trusts in the Asia Pacific. The ETF is listed on the Singapore Exchange (SGX) and aims to replicate, as closely as possible, the performance of the iEdge-UOB APAC Yield Focus Green REIT Index that was created in partnership with SGX and GRESB;
United Smart Sustainable Singapore Bond Fund, the first Singapore-focused ESG fixed income fund;
United Battery and EV Technology Fund, which offers investment opportunities arising from the growing adoption of electric vehicles globally;
United Asia ESG Bond Fund, the first onshore fund in Taiwan that focuses on ESG and investment-grade bonds in Asia; and
United-i Asia ESG Income Fund, a Shariah-compliant, Asia-focused ESG fund.
Making investing more accessible
UOBAM also rolled out the United Sustainable Credit Income Fund for individual investors in Brunei and Thailand in 2021. First launched in Singapore in 2020, this fund is UOBAM’s first sustainable bond fund that invests in companies making progress against the UN Sustainable Development Goals. To make investing, including in sustainable fund products, more accessible to individuals, in 2021 UOBAM:
partnered Singtel to launch in Singapore a customised robo-adviser, the UOBAM Robo-Invest, to users of the Singtel Dash mobile app. The first robo-advisory service in Singapore to be available through a mobile wallet, UOBAM Robo-Invest also features an ESG-focused Global Impact portfolio exclusive to Singtel Dash customers; and
tied up with several digital distributors in Indonesia, such as Ajaib, Bareksa and Pluang-grow, to offer ESG-focused and other mutual funds to underserved investors in the country.
As at the end of 2021, UOBAM had
$38.7 billion
in AUM across Asia.
At the launch of UOB APAC Green REIT ETF
“The launch of the UOB APAC Green REIT ETF is a great example of how private sector participants can come together to develop quality green investment products that cater to the needs of investors. MAS welcomes more of such collaborations to add to the product suite and vibrancy of our capital markets, and contribute to the region’s efforts to transition to a low carbon future.”
Mr Leong Sing Chiong,
Deputy Managing Director, Markets and Development, MAS
“Investors want effective price benchmarks, but more importantly, highly liquid and investable instruments that are increasingly tied to standardised and validated ESG data. Together with UOBAM, we have jointly created an index and investment tool offering stable yield that is aligned with positive environmental outcomes. SGX will continue to work with our partners to expand our product franchise to meet investors’ growing appetite for ETFs.”
Mr Michael Syn
Head of Equities, SGX
On the partnership with UOBAM
“This new investment service (UOBAM Robo-Invest) delivers on our commitment to make it simple, affordable and convenient for Dash customers to manage their finances and build their wealth. Customers can also tap on the investment expertise of an asset manager with a strong track record of optimising returns. We look forward to working with UOBAM as well as other established ecosystem partners to introduce more relevant and related financial and lifestyle products on Dash…”
Mr Gilbert Chuah
Head of Financial and Lifestyle Services at Consumer Singapore, Singtel
“The mutual fund industry in Indonesia has great potential considering the size of the country’s population. Pluang-grow strives to provide digital mutual fund solutions that are easily accessible to domestic investors. The collaboration with UOBAM Indonesia is testament to our efforts. Pluang-grow will continue to work with partners such as UOBAM Indonesia who share a similar vision and mission to offer more innovative and meaningful products in the future.”
Mr Christopher Andre Benas
Head of Financial Education, Pluang-grow