UOB Integrates Healthcare Into Sustainable Finance Portfolio

United Overseas Bank (UOB) operates through more than 500 offices spanning 19 countries and territories across the Association of Southeast Asian Nations (ASEAN) economic region, with presence in markets including Thailand, Malaysia, China, Indonesia and Vietnam. The bank's newly published 2025 Sustainability Report reveals the financial institution's approach to addressing climate challenges, expanding sustainable finance capabilities and diversifying into health-related lending across the region.

As Southeast Asia positions itself at a critical juncture in the global sustainability transition, UOB's latest disclosure offers insight into how one of the region's major banking players is navigating the complex intersection of economic growth and environmental responsibility. The report details the bank's efforts to balance commercial imperatives with climate commitments, while operating in a region that presents both significant transition risks and substantial green economy opportunities.

Regional institutions face mounting pressure to support decarbonisation efforts while maintaining economic development momentum across diverse ASEAN markets. UOB's sustainability framework centres on building the future of ASEAN through sustainable growth, customer-centric operations and enhanced corporate social responsibility. The bank has committed to strengthening the resilience of its lending and investment portfolio while supporting the region's shift towards a low carbon economy.

Southeast Asia's green economy potential

The ASEAN region could generate up to US$300bn in annual green revenue by 2030, according to estimates referenced in the report.

This potential revenue could stem from expanding clean energy infrastructure, developing low carbon industries and implementing nature-based solutions across the region.

Financial institutions are positioned as critical enablers of this clean energy transition, with UOB acknowledging the opportunities for transition and adaptation across Southeast Asian markets.

Eric Lim, Chief Sustainability Officer at UOB, writing on LinkedIn, says: "A decade ago, we made a commitment to transparency, accountability and building a sustainable future for ASEAN and beyond. Ten years on, that commitment has only deepened."

The 2025 report marks the first year UOB has integrated net zero progress reporting into its disclosures.

The bank has strengthened its climate reporting with reference to the IFRS Sustainability Disclosure Standards and deepened its focus on nature-related engagement with clients and the wider ecosystem.

Eric notes: "Amid ongoing global uncertainties and geopolitical tensions, we remain focused on sustaining progress through a balanced and pragmatic approach, grounded in steadfast purpose and disciplined execution."

Embedding ESG across operations

UOB aims to integrate Environmental, Social and Governance (ESG) considerations throughout the development of its financial products to support long-term economic, ecological and societal wellbeing.

In 2025, the institution mobilised US$70.1bn in sustainable financing, which included US$7.8bn directed towards accelerating small and medium-sized enterprises' (SMEs) sustainable business practices.

The bank worked on enhancing its sustainable finance frameworks to strengthen its support of SMEs' decarbonisation efforts.

The bank's sustainable banking products are designed to address ESG risks and opportunities across its business operations, including initiatives that tackle climate change, natural capital and biodiversity concerns, and human rights considerations.

Wee Ee Cheong, Deputy Chairman and CEO of UOB, says: "2025 was a challenging year as sustainability ambitions shifted in an increasingly fragmented world. In times like these, our purpose matters more than ever.

"UOB is committed to being a long-term enabler of our customers' sustainability journeys. We balance environmental integrity with practical economic realities."

Diversification into healthcare lending

UOB's sustainable financing portfolio encompasses multiple sectors, including data centres, renewable energy and healthcare.

The portfolio composition shows 57% allocated to real estate and hospitality, 10% to energy and chemicals, and 5% to consumer goods and healthcare sectors.

Notable transactions include a US$300m sustainability-linked loan to IHH Healthcare, marking the company's first loan to the healthcare sector and its first facility of this type.

The loan supports UOB's commitment to cap carbon growth and improve waste management practices. The bank's portfolio spans various investment themes, including access to finance, education, agriculture and healthcare sectors across the ASEAN region.