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KUALA LUMPUR: United Overseas Bank (M) Bhd (UOB Malaysia) has extended a green trade finance facility under the UOB Green and Sustainable Trade Finance Framework to IOI Corp Bhd.
In a statement, the bank said the facility would help the company promote sustainable palm oil and strengthen global sustainable palm oil supply chain.
UOB Malaysia chief executive officer Ng Wei Wei said: “As a financial institution, UOB understands the critical role we play in supporting companies to achieve their sustainability-related targets and aspirations.”
“To that end, we have been sharing our expertise on how they can use our sustainable finance products and solutions to boost their sustainability efforts.
“This collaborative approach helps to drive greater market adoption for green financing and encourages more businesses to grow responsibly,” she said.
Ng said IOI had taken important steps to mitigate its environmental, social and governance risks such as good overall agronomic practices and building more resilient supply chains.,
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“Furthermore, we are delighted that our green trade financing facility will also be supporting the global trade flows of palm oil, which is a key export for Malaysia,” she added.
The green trade financing facility extended to IOI will be channelled towards the sourcing of certified palm oil to support its downstream resource-based manufacturing business as well as its business partners’ activities.
IOI’s integrated business activities range from upstream plantation to downstream resource-based manufacturing, which includes refining of palm oil as well as manufacturing of oleochemical and specialty oils and fats.
All its Malaysian plantations are both RSPO and MSPO-certified. Globally, it has a strong presence in Asia, Europe and the United States of America.
Meanwhile, IOI managing director and chief executive Datuk Lee Yeow Chor said IOI aims to lead in sustainable palm oil production and be at the forefront of sourcing for sustainably-produced palm oil.
“UOB’s green trade financing facility supports our goal to promote sustainable palm oil and expand our green footprint as we progress towards net-zero emissions.
“We will continue to work with responsible suppliers and business partners in different parts of our business to strengthen the global sustainable palm oil supply chain,” he said.