In order to facilitate the EU’s ambitious climate and energy targets, the European Commission has published an Action Plan for Financing Sustainable Growth, introducing new requirements for financial market participants. In Switzerland, the implementation of sustainable finance regulations is already under way and these are expected to be similar to those in the EU, particularly as regards the aspects put forward by the Task Force on Climate-related Financial Disclosures (TCFD). Consequently, UBP has been preparing to integrate these new regulatory requirements into its business.
In addition, in 2020 UBP conducted an assessment of the impact of the upcoming EU regulations on its processes, products, tools and controls in preparation in particular for the Sustainable Finance Disclosure Regulation (SFDR) and the planned changes to the MIFID II regulation.
Focus on sustainability risks
In 2020, we set up a dedicated sustainability risk framework and have been reviewing its implementation on an ongoing basis. Climate-related issues (such as natural disasters) and widespread health risks have been identified as potential challenges to UBP’s risk management in the future. To reinforce our sustainability risk approach, we are implementing up-to-date systems, regularly making substantial investments in ESG data collection and integrating these into our IT infrastructure.