UBS has announced a delay in its target to achieve net zero greenhouse gas (GHG) emissions in its operations, pushing the deadline back by ten years to 2035 from its original 2025 goal. This decision was largely influenced by the bank’s recent acquisition of Credit Suisse, as outlined in its 2024 Sustainability Report. In addition to postponing its net zero goal, UBS has also withdrawn a separate target concerning its Asset Management division, which sought to align 20% of its assets under management (AUM) with net zero by 2030. The bank stated that it is reviewing this goal in light of the integration of Credit Suisse.
This announcement reflects a broader trend among banks worldwide re-evaluating or retreating from climate commitments. Notably, while UBS’s revisions appear less severe than those of some competitors—such as HSBC, which extended its own net zero target to 2050—several banks have completely exited the Net-Zero Banking Alliance or dropped their net zero goals altogether.
Despite the changes, UBS remains committed to its financed emissions decarbonization targets. It has maintained specific interim goals, aiming for a 57% reduction in Scope 1 and 2 emissions by 2030 (based on 2023 levels) and sourcing 100% of its electricity from renewable energy sources by 2026. Furthermore, UBS aims for a 90% reduction in emissions by 2035 as part of its net zero strategy, emphasizing the importance of achieving substantial reductions before using any carbon removal credits for residual emissions.
The updated report also modifies the language surrounding its key climate commitments, shifting from aspirations of achieving net zero by 2050 to a more immediate focus on 2035 for its operations. The bank cited its expanded corporate real estate portfolio due to the Credit Suisse acquisition and the latest definitions of net-zero targets in the Corporate Sustainability Reporting Directive (CSRD) as reasons for these adjustments.
In its Asset Management sector, UBS reported that its assets under management with a net zero ambition have increased to $64.4 billion (3.6% of AUM) with the inclusion of Credit Suisse, contrasting with the previous year’s figure of $35.5 billion (2.9% of AUM) without it.