UBS delays climate targets to 2035 after acquisition

UBS has announced it will delay its goal to reach net-zero greenhouse gas emissions from 2025 to 2035. The bank attributes this setback to its recent acquisition of Credit Suisse, which expanded its corporate real estate portfolio. In its new sustainability report released on Monday, UBS explained that managing the increased real estate costs linked to the Credit Suisse takeover requires more time. The bank expects to incur a $400 million expense related to this change. This decision follows a similar move by HSBC, which recently postponed its decarbonization timeline by 20 years to 2050. Many large banks are reevaluating their climate commitments, particularly after political shifts in the United States. Notably, some major Wall Street banks, including JPMorgan and Goldman Sachs, have withdrawn from a key climate alliance in recent months. UBS remains a member of the Net-Zero Banking Alliance, but there are discussions about possibly changing long-term climate goals among its members. UBS CEO Sergio Ermotti has indicated the bank is considering whether to continue its involvement in the alliance. He pointed out the challenges of applying the same pace of commitment to climate goals in different regions and countries. In its recent report, UBS omitted previous sections linking executive compensation to environmental and governance objectives. However, executives are still evaluated on non-financial criteria that include supporting sustainability efforts. UBS also noted the delay aligns with recent regulatory updates. The bank is currently focused on integrating Credit Suisse and anticipates completing this process by 2026. UBS did not provide further comments on the matter.