UOB launched a Green and Sustainable Deposits solution for its corporate and institutional clients, the first such product in Singapore offered by a local bank on July 8. The solution was piloted with GIC.
Under this solution, the deposits are deployed to green loans under UOB’s sustainable finance frameworks. The frameworks cover financing solutions for eligible assets and activities that meet specific ESG criteria within green real estate, renewable energy, energy efficiency, smart city infrastructure and the circular economy. All projects financed under the Bank’s sustainable finance frameworks are aligned with the UN SDGs.
The minimum deposit size for the solution is S$10 million and it is open to companies globally. Companies will earn market interest rates on their cash deposits. A key feature of the Green and Sustainable Deposits solution is an annual report that will be provided to companies on the environmental impacts their deposits have made. For example, companies can see which industries to which their deposits have been channelled via UOB’s sustainable financing.
At the same time, the report will also reflect the greenhouse gas emissions avoided and the corresponding effects, such as the equivalent number of tree seedlings planted and the number of cars removed from the road. With the report, companies will be able to quantify their contributions to sustainable development and use the information for their own sustainability reporting.