Introduction 

∙ A very good morning ladies and gentlemen.  

∙ UOB is proud to be partnering The Star for this very topical event as  Sustainability and the role Solar energy plays in combating climate  change risks, are areas that UOB has been actively championing in  the country and across the region. 

Why is Sustainability important & how does RE play a role?

∙ Confronting climate change was critical even before COVID-19.  Although the pandemic has reduced carbon emissions hence  improving the environment in the short term, it has inevitably  impacted global efforts to transition towards a low-carbon future as  priorities have rightfully been channelled towards battling the  outbreak. 

∙ As we move into the pandemic recovery phase, the need to address  global warming one of the most significant threats facing our planet  today becomes more pressing.

∙ Rising global temperatures have brought about extreme weather  conditions - such as the wildfires happening now in Greece and  California, as well as the recent floods in Europe and China - all of  which have affected lives and livelihoods. 

∙ How human induced climate change is affecting us today is a key  agenda being looked at by governments of the world. Reducing  carbon emissions will no doubt be a key focus area in the upcoming  United Nations Climate Change Conference in Glasgow this  November. As a signatory to the Paris Agreement, Malaysia has  committed to a reduction of greenhouse gases by 45% by 2030, compared to the 2005 levels. 

∙ While it is critical to manage emerging climate risks, there are  opportunities too.  

∙ In Southeast Asia alone, there is an estimated USD1 trillion of annual  economic opportunities by 2030 as our region moves to a greener  economy.  

∙ As an ASEAN bank, UOB is committed to playing our role. We  initially aimed to build a sustainable finance portfolio of USD15 billion  by 2023. Given the increasing demand by businesses for such  opportunities, we have already hit USD13 billion as of June 2021.  

∙ The market for clean renewable energy such as solar is only going  to grow and Malaysian companies can benefit from that. A case in  point, is the Large Scale Solar (LSS) 4 project with 30 bids awarded  to local companies. The Energy Commission expects LSS4 to unlock  RM4bn worth of investments and create 12,000 new jobs.

∙ As sustainability becomes increasingly important, beyond the  traditional profit making goals, companies must integrate  Environmental, Social and Governance (ESG) considerations into  their business strategies in order to better compete in the longer  term. 

Why UOB believes in solar for Malaysia 

∙ UOB believes the future is bright for solar power. 

∙ Investing in clean and renewable energy such as solar is one of the  many ways to significantly reduce the carbon footprint in your  business. 

∙ There is a strong push from the government to increase renewable  energy in the country’s power capacity mix to 31% by 2025 and 40%  by 2035. Solar will be the main contributor. International rating firm,  Fitch, estimates Malaysia’s solar capacity could more than quadruple  to surpass 4 gigawatts (GW) in 2030 up from 996 megawatts (MW)  at the end of 2020. 

∙ There is also a supportive framework from our regulator. In April this  year, Bank Negara Malaysia published the Climate Change and Principle-based Taxonomy (CCPT) document, with the aim to help  financial institutions assess and categorise economic activities  according to the extent to which they meet climate objectives and  promote the transition to a low-carbon economy. 

∙ These development signal that sustainability is increasingly  becoming a regulatory compliance matter. There are expectations 

not just from the government but also investors and even consumers  for financial institutions to support economic activities that are  sustainable. In time to come, there will be little or no room for  unsustainable companies. 

∙ Solar power has become more affordable, accessible and a reliable  source of renewable energy in Southeast Asia. 

∙ The entry cost of procuring a solar system has seen significant  reduction of almost 70 per cent from 2010 to 2020. 

∙ Solar power also helps save electricity costs for businesses. o A typical solar PV panel installation on commercial or industrial  properties can help businesses potentially save at least 25 per  cent in electricity cost which translates to an average payback  period of 3 to 5 years on your total investments.  

o With solar PV panels installed, landed residential property  households get to enjoy between 30% to 50% of monthly savings  in electricity bills. 

o Companies and individuals can save money while reducing their  carbon footprint 

How is UOB helping our customers get started on Solar adoption ∙ To help our customers address their cost concerns of installing and  operating solar power systems in their homes, business premises  and factories, UOB launched the U-Solar programme, which is  Asia’s first integrated solar energy platform providing financing 

solutions to solar developers, contractors, businesses and  homeowners. 

∙ It is a game changer for the solar energy ecosystem in Asia, with  Malaysia being the first country to launch in Oct 2019, followed by  Indonesia, Singapore and Thailand.  

∙ For the end users, U-Solar is a one stop solution that provides  businesses and homeowners with green financing to reduce the  upfront investment for solar. Through this program we also make it  easy for our customers by connecting them with our Solar partners 

who are established industry players namely Ditrolic, ERS Energy,  PlusSolar, Pekat Solar and Solarvest, who will undertake  assessment, installation and maintenance. 

∙ Since launch, the U-Solar programme in Malaysia has helped our  customers to generate 32,700 megawatt hours in solar power. The  programme has contributed to greenhouse gas reduction of 21.4  tonnes of CO2 in the country; which is equivalent to 354,000 tree  seedlings grown for 10 years and 4,650 cars taken off the road for a  year. U-Solar also won a Special Award under the category of  Sustainable Energy Financing in Malaysia’s National Energy  Awards 2020. 

∙ We expect the demand for our U-Solar solutions to rise as we are  seeing increasing interests in solar energy, especially coming from  the commercial, industrial and residential sectors.

Closing 

∙ I would like to thank The Star for providing UOB with the platform to  share our thoughts and insights on today’s discussion.  ∙ Mother Earth is our home. The notion that sustainability and  profitability do not go hand in hand has been proven otherwise in  recent times. It is possible for businesses to do good to the planet  while creating value for themselves. 

∙ Ladies and gentlemen, if you are interested to learn more about  UOB’s U-Solar Programme and how solar power can further save  costs for your business – we hope that you will benefit from our panel  discussion this morning. Information on U-Solar can be found on our  bank’s website. 

∙ Thank you.  

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