UOB highlights six sectors, including real estate, that can support its 2050 net zero goals

United Overseas Bank (Malaysia) Bhd (UOB) has established emissions objectives in six carbon-intensive sectors it finances, including real estate, in order to reach its net-zero emissions goals by 2050.

This 2050 goal reportedly will be achieved by restricting funding for new upstream oil and gas projects and establishing carbon reduction targets in other industries.

The six sectors UOB is targeting are power, automotive, oil and gas, which are part of the energy value chain, as well as real estate, construction and steel, which are part of the built environment value chain.

These make up 60 per cent of the bank's corporate lending portfolio.

UOB has also set targets to reduce emissions intensity for these sectors.

Emissions intensity is measured differently for each sector.

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In the real estate sector, the bank has set a goal to reduce emissions intensity by 36 per cent by 2030, and by 97 per cent by 2050.

Using internationally-recognised climate science models, UOB based its sectoral targets on regional pathways that align with global net zero goals.

UOB said this approach to net zero reflects its strong belief in the need to support a just transition in Southeast Asia that advances sustainable socioeconomic development in tandem with decarbonisation in the region.

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Its deputy chairman-cum-chief executive officer Wee Ee Cheong said the bank's net zero ambitions must go hand in hand with an orderly and just transition to take into account socioeconomic challenges in Southeast Asia.

Wee said the bank's targets are ambitious, yet realistic, and they also meet the global goals of net zero for ASEAN.

"Even as we cut our carbon footprint, we must ensure that people's lives and livelihoods can continue to improve, and it is important to balance growth with responsibility on our net zero journey." he said in a statement today.

UOB said its commitments also include interim 2030 targets to reflect the necessary near-term progress on the path to net zero.

In addition, UOB has committed to exit financing for the thermal coal sector by 2039, on top of its existing prohibitions on the new project financing of greenfield or expansion of coal-fired power plants and thermal coal mines.