More support for SMEs to access sustainable financing: UOB

Business Times

27-04-2025

UOB said that it is enhancing support for small and medium-sized enterprises (SMEs) to help them access sustainable financing.
The lender has incorporated the Monetary Authority of Singapore's (MAS) Technical Screening Criteria of the Singapore-Asia Taxonomy into all of its six sector-focused sustainable financing frameworks.
The frameworks are: circular economy, green buildings, sustainable cities, sustainable food and agribusiness, sustainable trade, as well as transition finance.
UOB wants to ensure that sustainable financing remains accessible, while supporting the green transition. The enhanced frameworks explicitly include companies in the industry value chain that provide goods and services in sustainable assets, activities, projects and products.
The bank applies a differentiated assessment model. The entities directly involved in the economic activities, such as project owners and main contractors, that are seeking financing above a specific threshold will need to provide evidence of their compliance with specific criteria.
Other entities, such as those assessed with lower risk profiles, will follow an attestation-based approach with mandatory representations and warranties.
UOB's transition finance framework covers specific measures for a just and orderly transition in the oil, gas and chemicals sector, with defined sunset dates established. This gives companies the time and support needed to pivot their business models, enhance operational efficiencies and move towards lower-carbon solutions.
Lim Lay Wah, UOB's group head of sector solutions and global financial institutions group, said: 'UOB's long-term vision is to balance environmental integrity with practical economic considerations, ensuring SMEs can decarbonise while maintaining business growth.'
The lender provided S$58 billion in sustainable financing in 2024. It said that it has supported 580 SMEs in their sustainability journey, financed more than 175 green buildings, enabled the development of 20 green data centres, and facilitated S$7 billion in sustainable trade financing for agri-commodities and responsible supply chains.