UOB, in collaboration with Enterprise Singapore (EnterpriseSG), has introduced the Sage Programme to assist small and medium-sized enterprises (SMEs) in reaching their sustainability performance targets while securing favorable financing options. Launched on June 12, 2024, the program is designed to minimize the resources, time, and costs associated with setting sustainability benchmarks and obtaining financing.

The Sage Programme offers SMEs three predefined, sector-specific sustainability performance targets to qualify for sustainability-linked financing from UOB. These targets include reducing greenhouse gas (GHG) emissions, certifying management systems, and enhancing environmental, social, and governance (ESG) ratings. SMEs will collaborate with appointed sustainability service partners, such as CDP, Convene ESG, M1, Paia Consulting, PwC Singapore, and TUV SUD, to meet these goals.

To ensure the program’s credibility, all targets are validated by a second-party opinion partner, Environmental Resources Management, aligning them with globally recognized principles for sustainability-linked loans.

Frederick Chin, UOB’s head of group wholesale banking and markets, emphasized that by pursuing preset targets, SMEs can focus their resources on practical implementation rather than preliminary setup processes.

Participating SMEs that meet their sustainability goals will benefit from preferential pricing through UOB’s network of preferred sustainability partners and receive support from EnterpriseSG. This assistance can cover up to 85% of costs associated with various services, including ESG digital platforms, GHG inventory assurance, ISO management system certification, and improving ESG performance disclosures.

The launch of the Sage programme responds to findings from the recent UOB Business Outlook Study 2024, which highlighted the challenges faced by businesses in adopting sustainable practices. The study revealed that only 40% of firms implemented sustainability measures, primarily due to concerns about rising costs, a lack of knowledge, and insufficient manpower.

Cindy Khoo, managing director of EnterpriseSG, noted that companies must adapt to evolving sustainability requirements, as major corporations and public sector entities are already integrating sustainability criteria into their procurement processes. This includes mandating suppliers to address their Scope 1 and 2 emissions to meet net-zero targets.