UOB already became carbon neutral last year for its internal operations. Now the group intends to cut lending drastically for clients in six carbon-heavy sectors by 2050, aiming to achieve net-zero greenhouse gas emissions among its borrowers as well.

For the oil and gas sector, the bank will not extend project financing for developments approved after 2022. UOB said it is the first lender in Asia to announce such a commitment.

The bank also has set ambitious net-zero goals for the power, automobile, real estate, construction and steel industries. For the power industry, which has knock-on effects for other sectors, UOB looks to reduce emissions intensity 61% by 2030, and 98% by 2050, compared to the 2021 baseline.

“Our region has diverse economies, each with different social needs,” CEO Wee Ee Cheong said Monday. “We are mindful to balance growth with responsibility.”

UOB will maintain communication with borrowers regarding plans to reduce emissions and work with them to achieve those goals. The banking group will evaluate progress yearly in each of the six industries and wants to add more sectors to this net-zero initiative.

UOB already has ceased lending for coal-fired power plants along with new financing for coal mines. The banking group intends to make a full exit from all existing loans for the coal industry by 2039.

Top Singaporean bank DBS Group Holdings unveiled a decarbonisation plan in September for nine industries including the oil and gas sector. OCBC Bank, another major Singaporean lender, has said it will publicise carbon reduction plans for separate industries by the first half of 2023.