Sustainable finance framework to fund Asia’s smart city projects
The UOB Smart City Sustainable Finance System (UOBSCSFF) was unveiled by the United Overseas Bank (UOB) in Asia to make sustainable funding more reachable to corporations who are working to build smart cities.
The system is backed by the green and sustainability-linked loan grant scheme of the Monetary Authority of Singapore (MAS). It is compliant with the Sustainable Development Goals (SDGs) of the United Nations (UN).
Framework requirements and goals
The framework puts out the requirements that corporate and institutional clients of a bank must follow before purchasing a variety of items, ranging from green or sustainability-related loans and commercial finance facilities to other sustainable banking products. These requirements need corporations to
- have specific plans and strategies for sustainability
- meet their targets for sustainability performance, and
- use the proceeds to advance their agenda of achieving sustainability
Under the framework, businesses must demonstrate the effect of their activities in promoting a better quality of life for residents by:
- using renewable energy
- green building constructionv improved energy efficiency
- green transportation
- sustainable water management
- water management
- climate adaptation to climate change
UOB will keep an eye on the company's loan proceeds management and the social as well as environmental impact of its commercial activities annually.
Companies dedicated to building sustainable and smart cities can apply for sustainable financing through the UOBSCSFF without the need to establish their funding structure, which can take time and resources. This implies that their energy can be focused on contributing to building a healthier world for everyone.
According to media reports, second opinion on the Bank's UOBSCSFF was given by the Carbon Trust, a leading consultancy specialising in climate and environment-related consulting and assurance services, following the sustainability-related loan standards issued by Loan Market Association.
The UOB Smart City Sustainable Finance Framework is an extended form of the UOB Green Infrastructure Financing Framework introduced by the Bank in 2019 to provide sustainable funding to infrastructure sector corporations.