Holistic programme to help SMEs set sustainability performance targets and secure sustainability-linked financing
Singapore, 12 June 2024 – UOB and Enterprise Singapore (EnterpriseSG) launched the Sustainability-Linked Advisory, Grants and Enablers (SAGE) Programme targeted at small and medium-sized enterprises (SMEs) today. The programme aims to simplify sustainability-linked financing solutions for SMEs, providing preferential loan rates from UOB for participating SMEs that achieved pre-agreed sustainability performance targets (SPTs).
This Programme involves a collaboration with sustainability service partners CDP, Convene ESG, M1, Paia Consulting, PwC Singapore and TÜV SÜD, where SMEs can come onboard a single programme offering pre-set SPTs.
The SAGE Programme is tailored to help SMEs reduce the time, cost and resources required to set SPTs and secure financing. This was developed to address concerns from businesses that were highlighted in a recent UOB survey, where only four in 10 businesses adopted sustainability practices, citing key challenges such as increased costs, insufficient knowledge and lack of manpower.
Under the SAGE Programme, companies can select from three “plug and play” options of pre-defined, sector-specific SPTs, to obtain sustainability-linked financing from UOB. These SPTs have also been validated by a Second Party Opinion partner, Environmental Resources Management (S) Pte Ltd, to ensure credibility and alignment with the globally recognised Sustainability-Linked Loan Principles. The SPTs focus on three areas:
- Reduction of greenhouse gas (GHG) emissions
- Certification of management systems
- Improvement of ESG ratings
With preferential pricing from UOB’s network of preferred sustainability partners and support from Enterprise Singapore1, SMEs in Singapore can defray up to 85% of the costs of ESG digital platform, advisory and assurance services for GHG inventory, certification of ISO management systems, and enhancing ESG performance disclosures to meet these SPTs.
Ms Lim Lay Wah, Group Head of Sector Solutions Group & Financial Institutions Group, UOB, said, “The SAGE Programme sees an industry-first collaboration with leading industry partners to give our SME clients a seamless experience in implementing sustainability initiatives with pre-approved sustainability performance targets. The one-stop access will connect them to a network of sustainability service partners to advance their green transition.”
Geoffrey Yeo, Assistant Managing Director of Enterprise Singapore, said: “With growing focus on net zero from governments, investors and consumers, sustainability is no longer just a good to have for businesses. This programme with UOB provides Singapore enterprises with clear targets and the resources to develop their sustainability capabilities. Enterprise Singapore encourages our companies to tap this programme to improve their sustainability performance and remain competitive.”
For more information on UOB’s SAGE Programme, please visit uob.com.sg/sage.
1Subject to application post incurrence of relevant costs by eligible SMEs and approval from Enterprise Singapore for support up to 70% of the cost of eligible activities per company.
