Swiss bank UBS won't fund new offshore oil and gas projects in the Arctic, and will "enhance due diligence" on some deepwater drilling projects.
In a statement on Thursday, UBS said it had, in 2019, reduced carbon-related assets on its balance sheet to USD 1.9 billion or 0.8% at the end of 2019, down more than 40% from the previous year.
"The firm also committed to no longer provide financing where the stated use of proceeds is for new offshore oil projects in the Arctic, greenfield thermal coal mines or greenfield oil sands projects," UBS said.
The new standards also include enhanced due diligence for transactions directly related to liquefied natural gas and ultra-deepwater drilling.
"Transactions directly related to ultra-deepwater drilling assets are subject to enhanced ESR [Environmental and Social Risk] due diligence considering relevant factors such as environmental impact analysis, spill prevention and response plans, and the company's past and present environmental and social performance," UBS
UBS also said it was well on track to meet its target of reducing the firm's own greenhouse gas emissions in 2020 by 75% from 2004 levels, with a 71% reduction already achieved in 2019.
UBS last year became a founding signatory of the Principles for Responsible Banking, which incorporates both the SDGs and the Paris Agreement on Climate Change, as well as of the IFC's Operating Principles for Impact Management.
Chairman Axel A. Weber said: "As the world's largest truly global wealth manager, we have a responsibility to take a leading role in shaping a positive future for everyone, including future generations. We aim to be the financial provider of choice for clients who want to engage toward the achievement of the United Nations Sustainable Development Goals (UN SDGs) while helping achieve an orderly transition to a low-carbon economy."
Swiss banks UBS and Credit Suisse were criticized by Greenpeace last year. The organization in January 2019 issued a report accusing the two banks of being responsible for the emission of 182.9 million tonnes of greenhouse gases between 2015 and 2017, through the provision of financing for fossil fuels companies.
Subscribe
