• Financial institutions have an opportunity to increase constructive engagement with emission-intensive sectors, but further development of frameworks, standards and collaborative efforts are needed.
  • Innovative funding approaches can help bring relevant stakeholders together to ensure that finance is not a barrier to decarbonization efforts.
  • This white paper is published to coincide with Decarbonization Day at COP27.

Zurich, November 10, 2022 – The UBS Sustainability and Impact Institute today released its latest white paper, ‘The green inflection point: Driving decarbonization of the real economy’, exploring where and how the financial sector can be most impactful in facilitating decarbonization at significant scale in the years to come. While companies, investors, asset managers and financial firms now recognize the value and importance in transitioning toward a collective net zero future, more can and must be done.

Deepening collaboration across sectors and stakeholders will help develop the necessary frameworks, regulations, education and incentives for scalable action. By showcasing three emission-intensive global corporations that are leading these transformations through their ability and willingness to create novel approaches to sustainability-related challenges, the paper addresses how governments, corporations, financial firms, investors and consumers can work together to help industries accelerate their own transitions towards a low carbon economy.

Mike Ryan, Head of UBS’s Sustainability and Impact Institute: “The first steps have been taken toward decarbonization but we’re now at a critical inflection point. The next green wave is on the horizon and further establishing and developing effective collaborative frameworks, targeted engagement, partnerships and innovative financial approaches will be essential if we are to capture the opportunities and achieve real, measurable and positive impact in the climate transition.”

The paper concludes that the financial sector has an opportunity to create partnerships, innovate impactful and exciting financing options, mobilize capital in all its forms and drive effective solutions to move decarbonization of the real economy more quickly and more efficiently.