UOB Thailand introduces Green Term Deposit product for corporate and institutional clients

Friday 21 June 2024 15:44
UOB Thailand announces the launch of its Green Term Deposit product in Thai Baht, Singapore Dollars and US Dollars, enabling corporate and institutional clients to directly engage in supporting Environmental, Social and Governance (ESG) projects that foster environmental conservation and sustainable development.
UOB Thailand introduces Green Term Deposit product for corporate and institutional clients

This innovative product channels deposits toward green loans[ Green loans are a form of financing which fund projects that have a direct impact on the environment.] within UOB's comprehensive sustainable finance frameworks[ Details of UOB's sustainable financing frameworks are available at https://www.uobgroup.com/uobgroup/sustainable-financing.page ] which encompass a wide array of financing options tailored for eligible assets and activities that adhere to specific ESG criteria including green real estate, renewable energy, energy efficiency, smart city infrastructure, and the circular economy, all in alignment with the United Nations Sustainable Development Goals (UN SDGs).

Participating companies will earn market interest rates on their cash deposits while actively contributing to environmental preservation and sustainable growth. UOB will provide an annual report offering insights into the industries and environmental impacts the deposits have facilitated through UOB's sustainable financing projects. The customised report details crucial metrics such as greenhouse gas emissions avoided, equivalent number of tree seedlings planted, and cars removed from the road, empowering companies to quantify their contributions to sustainable development. Such information serves as a valuable resource for companies to integrate into their sustainability reporting, further enhancing transparency and accountability in their ESG efforts.

Ms Panittra Vejjajiva, Head of Financial Institutions and ESG Solutions, UOB Thailand, said "With Sustainability as one of our key strategic pillar, we are pleased to launch our Thai Baht Green Term Deposit product where we believe that businesses will have the opportunity to meaningfully invest their money while ensuring stable returns. Our sustainable finance frameworks comply with top-in-class global sustainability standards which enable them to invest with confidence."

Arcelik Hitachi Home Appliances (Thailand) Ltd. (Arcelik) and MFC Asset Management Pcl. (MFCAM) are amongst the depositors to invest in UOB's Green Term Deposits in Thailand.

Mr Umut ?zsoez, Finance and Accounting Executive Director, Arcelik Hitachi Homes Appliances group and Arcelik Hitachi Homes Appliances Thailand, said "Arcelik Hitachi Home Appliances is committed to operating our business in alignment with global standards and principles of Environmental, Social, and Governance (ESG). With our commitment to achieve net zero by 2050, we have adopted various Green initiatives to minimise carbon emission while maximising environmental management capabilities across all aspects of our business. The Green Term Deposit offered by UOB helps us expand the reach of our sustainability contribution and environmental stewardship."

Mr Thanachote Rungsitivat, President, MFC Asset Management, said "MFCAM recognises the importance of Sustainability agenda and how it rapidly changes the business landscape. In our role as an investor, we can play a pivotal role in supporting ESG market. UOB has established Sustainable Financing Frameworks that are aligned with internationally recognised ESG principles and independently validated. Their frameworks allow MFCAM to contribute to sustainable growth and development through Green Term deposits. We can ensure that these term deposits placements will be specifically dedicated towards green assets that are aligned with the UN Sustainable Development Goals (SDGs)."

For more information on UOB Sustainable Financing Frameworks and, please visit UOB website

Source: UOB Thailand