UBS has earned global recognition for its sustainability efforts, cementing its position as a leader in the financial industry’s push for more sustainable practices. The firm has not only committed to reducing its emissions intensity but has also been instrumental in helping clients mobilize capital towards a greener future.
A significant part of UBS’s sustainability strategy revolves around its initiatives in Environmental, Social, and Governance (ESG) criteria. The firm’s dedication has garnered accolades, including recognition on the prestigious Dow Jones Sustainability Index and an AA rating from MSCI.
Michael Baldinger, UBS’s Chief Sustainability Officer, expressed his pride in the firm’s achievements: “I’m proud that two key annual ratings have reconfirmed UBS’s leading position in sustainability. These scores represent our first fully consolidated ESG ratings post-acquisition as we remain committed to shaping a more sustainable future.”
A Rich History of Sustainable Growth
UBS’s roots trace back to 1862, with its origins in Winterthur, Switzerland. The firm underwent significant transformations, including a merger with Toggenburger Bank in 1912, which led to the formation of the Union Bank of Switzerland. By the 1920s, UBS had already grown into a prominent financial institution with over 2,000 employees and assets surpassing US$1 billion.
In 2023, UBS marked a pivotal moment in its history with the acquisition of Credit Suisse. This milestone made headlines as the first-ever combination of two globally significant financial entities. UBS Chairman, Colm Kelleher, described 2023 as “a defining moment” for the bank, emphasizing that the acquisition allowed UBS to play a crucial role in stabilizing the financial system both locally and internationally.
“Our strategy, focused on client services, sustainable profitability, financial strength, and risk management, has been key to navigating this transformative period,” Kelleher added.
UBS’s Commitment to Sustainable Finance
UBS’s commitment to sustainability is a core part of its long-term vision. The firm’s 2023 Sustainability Report underscores the vital role the financial sector plays in fostering a sustainable future. The bank aims to harness the power of people and capital to drive positive societal, economic, and environmental outcomes.
A major milestone in 2023 was UBS’s increase in sustainable investments, which grew to US$292.3 billion, up significantly from US$2.66 billion the previous year. Looking ahead, UBS has set ambitious goals for 2030, including a 48% reduction in emissions intensity from its Swiss commercial real estate lending and a 60% decrease in emissions from power generation financing. The bank also plans a 70% reduction in financed emissions from fossil fuels by 2030, compared to 2021 levels.
Additionally, UBS is advancing its diversity and inclusion initiatives. In 2023, the firm increased the percentage of women in Director-level positions and above to 29.5%, nearly achieving its 2025 target of 30%.
Michael Baldinger: Championing Sustainability at UBS
Since 2021, Michael Baldinger has led UBS’s sustainability efforts as the firm’s first Chief Sustainability Officer. Baldinger’s extensive experience in sustainable finance includes his tenure as CEO of RobecoSAM, the asset manager behind the Dow Jones Sustainability World Index. Joining UBS in 2016, Baldinger previously headed Sustainable and Impact Investing at the firm, where he has been instrumental in shaping its sustainability strategy.
UBS’s ongoing efforts to integrate sustainability into every aspect of its operations and investments highlight its commitment to leading the way in the global push for a more sustainable and equitable future. With its comprehensive strategies and continued focus on environmental and social responsibility, UBS is poised to remain at the forefront of sustainable finance for years to come.
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