Green Inflection Point

Read our latest white paper to find how the financial sector can accelerate and drive decarbonization of the real economy.

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What insight will you gain if you read this white paper?

This edition of our white paper series sets out to do the following:

Identify key actions that the financial sector can take to help accelerate and scale decarbonization of the real economy
Present an engaging discussion that highlights the progress made so far through sustainable finance initiatives on frameworks, standards, and cross-sectoral collaboration
Offer expert opinion on potential next steps that can drive and build on decarbonization efforts across sectors, while sharing case studies from organizations that are already having measurable impact

                We are standing at an inflection point, where we feel a change in speed is needed. It is time to move beyond exclusions and reinforce our focus on engagement. By focusing on greening our collective future with renewed urgency and commitment, we can achieve our net-zero objectives and transform what tomorrow will bring.
                
            UBS Sustainability and Impact Institute, white paper “The green inflection point”

What will drive real economy decarbonization?

Measurable reductions

Driving actions that measurably reduce actual carbon emissions in the environment

Systemic approach

Understanding the levers, complex dependencies and causalities that drive change across single issues, and interconnected systems of issues

Scalability

Identifying and supporting innovations and initiatives that can scale across geographies and sectors quickly

What is the challenge?

Investors and companies currently focus on decarbonization through various approaches, for example exclusion, restrictive lending policies and divesting. These approaches achieve decarbonization through portfolio alignment – investments become greener by aligning with greener objectives. But the climate does not necessarily benefit immediately.

We suggest that to move the needle on decarbonization – to reduce actual GHG emissions and help carbon intensive sectors transition more quickly – more can be done. In this white paper The green inflection point we share with you key actions and considerations that can help the financial sector support this transition in the real economy more effectively.

What is greening?

Our experts suggest that a key mindset shift is needed to go from greenness to greening. Through focusing on efforts that actively green the economy – reducing GHG emissions and transitioning to a low carbon economy faster, our ability to meet net zero targets is better supported.

Focusing on companies that need help to transition more quickly can be a powerful strategy for climate conscious investors.

Adam Gustafsson, The UBS Sustainability and Impact Institute

Executive Summary

Podcast

The podcast

00:00

In Monocle’s podcast, UBS sustainability experts, Francis Condon, Head of Thematic Engagement at UBS Asset Management and Adam Gustafsson, Portfolio Manager, QED UBS Asset Management, focus on the new white paper from the UBS Sustainability & Impact Institute, ‘The Green Inflection Point’. They discuss the key actions that the financial sector can to take in order to scale and speed up the transition to a low-carbon economy.

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Source: Monocle, for more podcasts visit https://monocle.com/radio/shows/the-bulletin-with-ubs/426/

Video

Progress to Net Zero

What is Net Zero and why is it important? Francis Condon, Head of Thematic Engagement at UBS Asset Management, explains.

Meet our specialists

This white paper is a collaborative from our in-house team, working together through the UBS Sustainability and Impact Institute:

Contributors

Adam Gustafsson

Portfolio Manager, QED AM

Armin Peter

Global Head
DCM Syndicate
IB

Antonia Sariyska

Sustainable Investing Analyst
CIO

Samantha Sutcliffe

Head of Sustainable Finance
IB

Tasos Zavitsanakis

Head of Sustainable Finance, Greater China
CSO

Key findings

Decarbonizing the real economy

Progress has been made so far on decarbonization. But, the financial sector has an opportunity to do more to drive measurable change.
To drive change further, financial institutions need to intensify constructive engagement with emission-intensive sectors against a background of regulatory pressures and public scrutiny.
Creating and supporting frameworks, standards and collaborative efforts will enable the financial sector to drive the low-carbon transition – especially in hard-to-transition sectors.
The financial sector has various tools available – including investing, financing and advising. These tools can all be applied to inform, shape and drive the transition to a low-carbon economy.
Innovative funding approaches can help bring relevant stakeholders together to ensure that finance is not the barrier to decarbonization efforts.

Decarbonizing the real economy through impactful financial sector engagement requires targeted engagement, effective partnerships and innovative financial approaches.

Discover more

More insights and research from the Institute

Visions

UBS Global Visionaries are Entrepreneurs and thought leaders working to achieve the 17 UN sustainable development goals. UBS supports them to scale their positive impact. These GVs are actively working on decarbonization in the real economy.

We founded Climeworks with the vision to provide the world a tech that has the potential to reverse climate change.

Rodrigo Garcia & Pierre Paslier, Notpla CEOs

Imagine a world where packaging disappears naturally, just like a fruit peel.

In this decade, SPAN will enable millions of homes to electrify by replacing the key bottleneck - the outdated electrical panel, and eliminate 40% of emissions originating from our everyday lifestyle choices.

Learn more about the UBS Global Visionaries

ubs.com/globalvisionaries

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The green inflection point

Measurable reductions

Systemic approach

Scalability

What is the challenge?

Podcast