UOB puts people at the heart of sustainability journey
Today, the fast-changing world has faced challenges on various fronts. Among them is climate change, which has drawn the attention of all sectors across the world. The business sector has now set its sight on net zero greenhouse-gas emissions. But a survey among UN Global Compact Network’s members shows only 10 per cent of business leaders have the abilities to meet that goal.
The recent UN Global Compact Network Thailand Forum (GCNT Forum) 2023 took up the theme of "Partnership for Human Capital 5.0 towards Sustainable Intelligence-Based Society". Held by the United Nations Global Compact Network Thailand (UNGCNT) and the United Nations Thailand, the event highlighted the fact that money, technology, and innovations were not enough for sustainable development to prosper. It was necessary that “people” or “human resources” be prepared well for the future especially as the world is now stepping to Era 5.0 or green economy.
“Tan Choon Hin”, President and CEO of UOB Thailand, expressed his sustainability vision during the event’s seminar on “Sustainability Disruption in Thailand Especially in Human Aspect”. His speech emphasized the need to embed the mindset and ability of the people to move sustainability forward as well as support clients to reduce their carbon footprints so that everyone could move ahead together.
“We should look at sustainability as a progression and not a disruption because these are 2 very different perspectives. If you see sustainability as a ‘disruption’, you tend to see it as a threat. But if we look at it as a ‘progression’, we will see it as an ‘opportunity,’ and our response will then be different,” Tan said.
UOB has pursued the goal of achieving net zero greenhouse gas emissions by 2050 on the basis of fair transition, which is expected to sustain economic and social growth while fostering a low-carbon society. Therefore, it has supported its customers and businesses for sustainability out of beliefs that the move will give opportunities to all sectors.
“From now on, a massive amount of investment will go to the development of technologies and innovations that promise to help the world achieve net zero emissions. Such investments will present key opportunities to all sectors,” Tan said.
As a financial service provider, UOB faces the challenges of expediting customers’ transition and helping them lower greenhouse gas emissions. Currently, UOB has placed an emphasis on two main areas. Thought Leadership is the first as it intends to drive businesses on the path of sustainability. Guided by the focus, UOB aims to cultivate a sense of urgency for the real economy to embark on sustainability journey. Efforts cover small and medium enterprises (SMEs) that need solid motivation and support for their sustainability shift. Apart from various sustainability initiatives, UOB has also actively raised sustainability topics during discussions with stakeholders namely partners, government agencies and customers as well as the society at large in the hope of highlighting the importance of sustainability.
The second aspect is about developing Green Financing Solutions to clients in the most cost effective manner. UOB has developed a series of six umbrella frameworks such as smart city, circular economy and transition financing. These solutions are available to several industries such as the electric vehicle industry, the renewable energy industry and the construction industry, paving the way for them to grow continuously and transition well into a low-carbon society in a low and cheaper manner.
The top executive of UOB Thailand pointed out that operations for sustainability or a shift into green economy could not be completed overnight. He explained that it would take time to achieve intended results and everyone had an important role to play, as none should be left behind. In his view, “people” are crucial to driving efforts. So, the big challenge surrounds “Sustainable transition is more about cultural change. Companies need to embed sustainability as a core aspect of their strategy, and in their corporate culture”.
UOB has considered “drive growth sustainably” and “develop professional of principles” as two of its sustainability strategy’s four pillars. And their approach is driven by unwavering values of Honour, Enterprise, Unity and Commitment. UOB has nurtured professionals who can navigate sustainable finance and foster a culture of integrity, diversity, and inclusion.
“We want our people to live by our values to do what is right and not what is convenient. And these are the characteristics we believe will drive a successful transition,” Tan said.
To ensure all its components head towards sustainability in the same direction, UOB has formulated a clear sustainability framework based on its business policies and guidelines so that its executives and staff know how to make decisions. Sustainability, moreover, is integrated into key performance indicators.
UOB has implemented sustainability training for all its employees, including both basic and specialized training. Sustainability has also been a part of its activities so as to foster the same DNAs bank-wide. Its sustainability focus covers not just customers but also society. For example, UOB commits to support the social development through art, education and children aiming to create sustainable good for more caring and inclusive society.
“Sustainability is everyone’s matter. All sectors must work together in pursuit of sustainability or else we won’t succeed in this transition,” Tan concluded.
