Sustainablility / Responsible Business / ESG

As part of delivering the above statement to stakeholders, we understand the importance of managing risk well and are committed to responsible, sustainable growth through fair, ethical and responsible business practices. Thus, we not only look at risk from a traditional perspective (i.e. credit risk, market risk) but also look at environmental, social and governance risk. We take account of ESG risk while developing a product or services.

Our Commitment is underscored by the recent signing of a Memorandum of Understanding with WWF for the development and implementation of the Environmental, Social and Governance Framework.

We have taken a proactive step of establishing and implementing an EXCLUSION LIST, which lists sectors or types of customers that do not fit into uab bank’s profile. We do not facilitate financing to entities engaged in activities listed below:

  • Production, trading and maintenance of weapons and munitions of any kind

  • Trade in or unauthorized catching of wildlife or wildlife products

  • Production or trade in any product or activity deemed illegal under Myanmar laws or regulations or international conventions and agreements, or subject to international bans, such as pharmaceuticals, pesticides/herbicides, ozone depleting substances

  • Hunting marine mammals and shark finning
  • Using of dynamite and poison in fishery practices
  • Activities involving harmful or exploitative forms of forced labor or harmful child labour
  • Activities involving people smuggling of any kind

Environmental data for the financial year ended at 31st March 2024:

CARBON FOOTPRINT (METRIC TONS OF CO2e)
We conducted a carbon footprint analysis and summarised key metrics on its environmental impact. The key measurement of our environmental carbon footprint for FY 2024 with comparison to other financial years is described below.
  • Scope 1: : Direct emissions include fuel usages for transportation and generators at HO and branches. Its total CO2e in metric tons was 1056.4 which represents 64.6 % of total carbon footprint.
  • Scope 2: Indirect emissions of electricity consumption across the operations was supplied by the government. It amounted to 555.19 metric tons of CO2e accounted for 34.0% of total carbon footprint.
  • Scope 3: Indirect emissions arising from energy use in rented facilities and ferry buses for employees were 23.11 metric tons of CO2e, constituting 1.4% of total carbon footprint.
For FY2024, it is noted the use of fuel at our premises contributed to a larger portion at 64.6% of the carbon footprint with electricity use at 34.0% of the footprint.
A further comparison of the numbers for FY2023 and FY 2024 is as below:
Scope
2023
Carbon Foot print
(Metric Tons of CO2e)		 2024
Carbon Foot print
(Metric Tons of CO2e)
SCOPE 1: Petrol for Transportation and Generators 1,000.15 1,056.40
SCOPE 2: Electricity use at Head Office and All Branches 687.04 555.19
SCOPE 3: Electricity use from other facilities in the value chain, and petrol use from rented ferry buses 9.56 23.11
Total CO2e 1,697.12 1,634.70

A 5-year comparison of our data is further seen the graph below:

A drop in CO2E was seen in FY21 and this was primarily because of COVID pandemic which in the large part restricted travel and petrol use.
Since FY2021, there seems to be a steady increase in CO2E production. This may be due to the steady expansion of the Bank’s operations and the opening of new retail branches and offices. Given the Bank’s business expansion, we computed the carbon footprint on a per employee basis for an alternate view of the progress and it is noted from the numbers below that the CO2E generated on a per employee basis seemed to have reduced in FY2024 when compared to FY2023 despite the Bank’s expansion.
FY2023 FY2023
CO2E per employee 0.924 metric tons 0.817 metric tons
The CO2e over these years reflects the inherent low emissions profile of the banking sector, particularly due to its emphasis on digital transformation, in contrast to higher-emission industries such as manufacturing, mining, and construction. Nevertheless, the Bank will strive towards managing its carbon footprint and transitioning towards a net zero target.
The Bank recognises that its influence with carbon footprint is also significant in its lending activity and is developing an ESG Policy to improve its ESG governance in lending.