Sustainability as a driver of innovation

Many companies are seeking to identify strategies for integrating sustainability into their business operations in a way that does not negatively impact their competitiveness. It is essential to achieve a balance between short-term financial objectives and long-term environmental and social responsibilities. Furthermore, there are increasingly complex regulations, such as the requirement to report on ESG criteria (environmental, social, governance). At present, these requirements are only mandatory for companies with 500 or more employees. However, they also affect smaller companies that act as suppliers or service providers for larger companies. Currently, there is a proposal at the federal level to make reporting mandatory for smaller companies as well. SMEs must also meet the expectations of their stakeholders and are facing mounting pressure from consumers who demand sustainable solutions.

Companies often associate sustainability primarily with environmentally friendly measures. However, in addition to this ecological aspect, social and governance components also play an important role, particularly with regard to social responsibility, such as ensuring fair working conditions throughout the supply chain or promoting diversity and inclusion. This is not only about employee satisfaction, but also about the social value, for example through the creation of apprenticeships. At UBS, for instance, we promote volunteer work and charitable projects with our platform UBS Helpetica. This platform is available to all Swiss companies.

These costs can indeed be a challenge, as sustainable measures often require higher initial investments, be it through the use of renewable energies, the optimization of production processes or the switch to sustainable supply chains. Nevertheless, it is becoming evident that these investments yield long-term benefits, including cost savings due to enhanced efficiency and competitive advantages. There is also an increasing emphasis on sustainability among clients, who are willing to pay higher prices to ensure that products align with their values. Governments and institutions are also creating incentives and funding programs to support the transition to sustainable business practices. As a bank, we offer companies customized financing solutions that facilitate the transition to sustainable corporate management.

We support companies on three levels. Firstly, we integrate sustainability firmly into the strategic dialogue and adopt a holistic view of the company. What are the drivers or obstacles? What are the relevant regulations? What are the expectations of clients, employees, investors and society? What are the financing requirements? Secondly, we offer practical solutions that are specifically tailored to the needs of the company. Smaller companies benefit from simple and cost-effective support services such as the esg2go online tool or energy management advice from EnAW. Companies with more experience in sustainable corporate management can make use of sustainable financing, for example. In the construction and real estate sector, collaborations such as the one between UBS Renovation Service and Wincasa enable targeted consulting for sustainable renovations. UBS also offers green financing and green mortgages for investment properties through UBS key4 mortgages. Thirdly, we promote partnerships that go beyond traditional banking, for example in the area of cyber security. The UBS Marketplace offers access to various services that support companies on their path to greater sustainability.

I recommend industry associations and regional networks. Our clients also tell us that our regional client roundtables are valuable. During these events, we bring together companies to discuss the challenges and opportunities of sustainability and share best practices. This format is hands-on and tailored to the specific needs of the participants.

Companies should begin by assessing the sustainability measures they currently have in place, as they may have more in place than they initially realise. Then it is advisable to take a step-by-step approach: Companies should define one specific measure and implement it consistently before moving on to the next. A decisive factor is the involvement of employees, who are often closely familiar with the processes and contribute valuable ideas for the transformation. At the same time, their active involvement promotes acceptance of the measures. And finally: Companies do not have to tackle these changes alone. Cooperation with authorities, other companies or industry associations can be extremely helpful when implementing new legal requirements.