According to Reuters, the Swiss UBS Bank decided to stop providing its support concerning drilling in the Arctic. In fact, the bank will stop funding future offshore oil and gas projects located in Alaska, amid efforts to face climate change.
Among others, the bank will stop providing finance for greenfield thermal coal mines and greenfield oil sand projects. UBS bank announced that has set new standards in order to boost a sustainable environment.
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.
…UBS Chairman Axel Weber said in a statement.
Moreover, UBS would offer finance to companies with more than 30% of reserves or production in Arctic oil or oil sands, if the funding is going to be used on renewable energy or conventional oil and gas assets.
For the records, the bank’s funding to the energy and other utilities sectors, reported a drop of more than 40% billion during 2019, equivalent to just 0.8% of its total gross banking products exposure, down from 1.6% at the end of 2018.
The Swiss-based bank, has assets of more than $3.76 trillion and is playing a leading role relating sustainable investing.
In light of the situation, the New York-based bank JPMorgan Chase recently announced additional steps to address climate change and further promote sustainable development. Among others, the bank committed to stop financing coal-fired power plants or oil and gas exploration projects in the Arctic.