Singapore-based lender UOB is deepening support for small and medium-sized enterprises ( SMEs ), facilitating their access to sustainable financing through the incorporation of the Singapore-Asia Taxonomy ( SAT ) into its sustainable financing frameworks. This will allow SMEs to save time and resources while aligning their business operations with global best practices tailored to the region’s needs.

So far, UOB is the only Singaporean bank to incorporate the Monetary Authority of Singapore’s ( MAS ) technical screening criteria ( TSCs ) under the SAT into all of its six sector-focused sustainable financing frameworks. These frameworks are also independently validated by an independent consultant, ERM, to ensure credibility.

The six frameworks are circular economy, green buildings, sustainable cities, sustainable food and agribusiness, sustainable trade, and transition finance.

This initiative aims to reinforce UOB’s position in sustainable financing and strengthen its commitment to supporting SMEs and other businesses across the Asean region in their transition to a low-carbon, climate-resilient economy.

Nuanced approach

The bank says it has taken a nuanced approach to ensure that sustainable financing remains accessible to clients while supporting green transition when incorporating the TSCs into its sustainable financing frameworks. This includes:

• Ensuring SMEs are not left behind – UOB’s enhanced frameworks now explicitly include companies in the industry value chain that provide important goods and services in sustainable assets, activities, projects, and products.
• A risk-based, differentiated approach for greater accountability and accessibility – The bank applies a differentiated assessment model. Entities directly involved in 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.
• Expanding transition finance – UOB has broadened its transition finance framework to cover not only the SAT “Amber” TSCs but also 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 shift towards lower-carbon solutions.
• Referencing global best practices – In areas where the SAT provides scope for broader alignment, UOB will draw on globally recognised frameworks, including the EU Taxonomy, Australia’s Sustainable Finance Taxonomy ( in-consultation ), and the Climate Bonds Initiative Taxonomy, to ensure a comprehensive and forward-thinking approach.

Actionable solutions

Lim Lay Wah, group head of sector solutions and global financial institutions group at UOB, says: “UOB’s long-term vision is to balance environmental integrity with practical economic considerations, ensuring SMEs can decarbonize while maintaining business growth. By enhancing our Sustainable Financing Frameworks with MAS’ Singapore-Asia Taxonomy and adopting the Technical Screening Criteria, we have strengthened our sectoral financing frameworks to offer SMEs clear, credible and actionable solutions.”

The bank provided S$58 billion ( US$44 billion ) in sustainable financing in 2024. It has supported 580 SMEs in their sustainability journey, financed over 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.