Sustainability Strategy and Approach
UOB Indonesia (UOBI) is committed to driving sustainable development by creating positive impact on the national economy, environment and society.
Sustainability Strategy
At UOB Indonesia, our sustainability strategy is underpinned by our corporate purpose and mirrors our business approach of balancing growth with responsibility. Our strategy takes into account the influence and impact our decisions and actions may have on our stakeholders and the environment. It also ensures that we remain pragmatic and progressive through managing environmental, social, and governance (ESG) risks and opportunities sensibly and in line with market realities.
We continue to provide added value to all stakeholders by integrating the eight principles of sustainable finance (set out in POJK 51) in our operating activities. These principles include:
- Principles of Responsible Investment
- Principles of Sustainable Business Strategy and Practice
- Principles of Social and Environmental Risk Management
- Governance Principle
- Principles of Informative Communication
- Inclusiveness Principle
- Prioritisation of Strategic Sector Development Principle
- Principles of Coordination and Collaboration
We continue to provide added value to all stakeholders by integrating the eight principles for sustainable finance (set out in POJK51) in our operating activities. These principles include:
- Principles of Responsible Investment
- Principles of Sustainable Business Strategy and Practice
- Principles of Social and Environmental Risk Management
- Governance Principle
- Principles of Informative Communication
- Inclusiveness Principle
- Prioritization of Strategic Sector Development Principle
- Principles of Coordination and Collaboration
Sustainable Finance Action Plan
In addition, UOBI has prepared a “Sustainable Finance Action Plan” (Rencana Aksi Keuangan Berkelanjutan/ RAKB) for the 2025-2029 period which was prepared by the Board of Directors and approved by the Board of Commissioners. During the 2024 RAKB, we have carried out the following:
- Raise internal bank awareness regarding ESG aspects, through our on-site coffee shop program since January 2024. This program managed to eliminated more than 20,000 paper coffee cups
- Supported mental health, raise awareness of diversity and inclusivity in the work environment in work environment through Employee Assistance Program
- Ensuring employees stay relevant to the market and trends with programs and training
- Supported and created social programs that focus on arts, children and education through partnerships, employee participation/volunteerism, and corporate philanthropy
- Carried socialization and communication to students to improve financial literacy
- Actively participated in marketing “Green Bonds” for Retail Bonds
- Active in Social Activities as part of marketing BNP Paribas IDX30 Philanthropy products
- Building good relationships with partner property developers who have Green Property certification
- Promoted the use of renewable energy by installing solar panels in our office
- Implemented waste management program
- ESG Framework/Policy refreshment
- Participated in a pilot program on climate risk management and banking scenario analysis, guided by the Financial Services Authority (OJK)
The Five Guiding Principles
UOB Indonesia’s sustainability programme runs in accordance with the Five Guiding Principles that serve as a guide on how we mitigate risks and, in turn, optimise opportunities that can materially impact our customers, colleagues, investors, suppliers and communities wherever we operate.
- Forge a sustainable future with our customers Engage our customers proactively to influence their sustainability practices for greater long-term resilience
- Aligned to business strategy and stakeholder interests Stay economically relevant by pursuing sustainable growth strategies
- Forge a sustainable future with our customers Implement sustainability programmes to manage ESG risks and opportunities sensibly, in line with market and competitive realities
- Regulatory compliance as the baseline Align our sustainability approach with ESG policies and guidelines of governments in our key markets
- Values-driven Based on our longstanding and distinct values
Forge a Sustainable Future with Our Customers
Aligned to Business Strategy and Stakeholder Interests
Engage our customers proactively to influence their sustainability practices for greater long-term resilience.
Implement sustainability 3 programmes to manage ESG risks and opportunities sensibly, in line with market and competitive realities.
Align our sustainability approach with ESG policies and guidelines of governments in our key markets.
The Four Pillars
The four pillars of the sustainability strategy stem from UOB Indonesia’s fundamental strengths and are rooted in the Bank’s values. These four pillars reflect the Bank’s expertise, responsibility, and role in ensuring the benefit of key stakeholders in the long term. Each pillar determines the goals to be achieved to ensure the implementation of sustainability strategies in accordance with clear plans and objectives.
Drive Growth Sustainably
UOBI's support for sustainable development goals is reflected in every policy it adopts, particularly when it comes to financing sustainable business activities. We incorporate sustainability risk into our risk management strategy in order to sustainably drive growth. In this instance, we incorporate ESG factors into our credit approval and evaluation procedures.
One of UOBI's concrete actions to promote environmentally- friendly development is financing renewable energy, biodiversity management and sustainable land use, and eco-friendly products in the midst of global climate change issues. We also channel financing in the MSME sector to empower economic resilience.
Keep customers at the centre
We ensure that Fair Dealing principles are entrenched in all aspects of our relationship with customers as we prioritise doing what is right for them. By keeping their best interests in mind, we harness technology and use data to make banking simpler, smarter, safer and more intuitive for them. As part of our commitment to our customers, we must safeguard their data and privacy by ensuring that our processes and systems remain secure and robust.
Develop professionals of principle
We continue to create a harmonious, inclusive and productive work environment for our colleagues by embracing diverse strengths and abilities to enhance our capabilities and enrich competitiveness.
In the midst of business challenges within the banking industry, we continue to develop the skills of our people through a series of education and training programmes. With this approach, we believe UOBI will continue to grow sustainably, be a dependable and trustworthy bank, and provide added value to all stakeholders.
Uphold corporate responsibility
We believe that as a responsible financial services provider, we must uphold corporate responsibility by maintaining highest standards of governance and risk culture, ensuring regulatory compliance and protecting the financial system. This commitment is manifested in good corporate governance and our support for social and community activities. Together, these efforts help us contribute to a strong and sustainable future for the wider community.
Supporting the Sustainable Development Goals
We are committed to contributing to the 17 United Nations Sustainable Development Goals (UN SDGs) and integrating the United Nations Global Compact’s (UNGC) Ten Principles in the areas of human rights, labour, environment and anti-corruption into our culture, business strategy and daily operations.
Human Rights
- Principle 1: businesses should support and respect the protection of internationally- proclaimed human rights; and
- Principle 2: make sure that they are not complicit in human rights abuses.
Labour
- Principle 3: businesses should uphold the freedom of association and the effective recognition for the right of collective bargaining;
- Principle 4: the elimination of all forms of forced and compulsory labour;
- Principle 5: the effective abolition of child labour; and
- Principle 6: the elimination of discrimination in respect of employment and occupation.
Environment
- Principle 7: businesses should support a precautionary approach to environmental challenges;
- Principle 8:undertake initiatives to promote greater environmental responsibility; and
- Principle 9:encourage the development and diffusion of environmentally-friendly technologies.
Anti-Corruption
- Principle 10: businesses should work against corruption in all its forms, including extortion and bribery.
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