UBS has been recognised for its handling of the sustainability challenges the landmark merger with Credit Suisse posed and its strong history of sustainable finance innovations.

UBS acquired peer Credit Suisse in 2023 which saw the two globally systemically important financial institutions (G-SIFIs) merge.

UBS chief sustainability officer Michael Baldinger told Environmental Finance this is the first time two G-SIFIs have combined in the "net-zero era" since the Paris Agreement in 2015. As a result, UBS faced unique challenges in unifying the diverse sustainability commitments, methodologies and processes of these globally significant banks.

For example, UBS expanded its sustainability and climate risk framework to reflect the increased exposure the combined firm had to carbon-intensive sectors and was quick to reassign carbon-intensive sector portfolios that were misaligned with its approach into non-core and legacy portfolios to be managed off its balance sheet over time.

UBS also added decarbonisation targets for shipping, iron, and steel sectors which had become material exposures after the Credit Suisse merger.

Overall, Baldinger said the 2030 decarbonisation targets set by UBS for high emissions sectors are "among the most ambitious of our peers".

"Entire sectors need to be synchronised in their moves towards decarbonisation, and that should become easier to achieve as financial institutions set targets such as these," he added.

A Sustainable Company Awards judge said UBS should also be recognised for other sustainability activities the bank has undertaken over the years – including its creation of an innovative sustainable finance benchmark for multi-lateral development banks (MDBs).

UBS was also praised for its significant work around nature-related finance, including its role chairing the financial services working group of the Taskforce on Nature-related Financial Disclosures (TNFD).

Indeed, Baldinger said the "expansion of nature-related advice and financial solutions is likely to be one key area of growth in the coming several years" for the bank.