Greenpeace, the environmental organization, is criticizing the two big Swiss banks for a perceived failure to adhere to standards agreed in Paris. The NGO presents six measures it suggests will help rectify the situation.

Greenpeace Switzerland says that UBS and Credit Suisse fall foul of the Paris climate agreement, citing an analysis it compiled and published on Wednesday. Despite their claims in support of a cleaner economy, they still invest billions into the business with fossil fuels and don't even shy away from particularly damaging activities such as the extraction from oil sands, fracking and coal-fired power stations.

«The sustainability policies of the banks demonstrably fail to gain traction and serve primarily the purpose of averting damage to their reputations,» said the non-governmental organization in its report. Credit Suisse and UBS have continued to finance companies such as Glencore and Total after 2016, despite their activities that involve the production of very harmful fuels, Greenpeace added.

Top Political Priority

The group said the analysis was proof that forcing the Swiss financial market adhere to the Paris agreement had to become a top political priority. «Politics and regulators must provide and enforce clear guidelines in this respect,» Greenpeace said.

The organization published a set of six measures that would help transform the Swiss financial market to become more sustainable:

1. Definition of a climate friendly economy and reporting on the effect that its activities have on the climate

2. Binding agreement, compelling all financial actors to adhere to climate friendly business model

3. Establish the truth on risks and costs

4. Promotion of sustainable financing

5. Stricter investment guidelines for public financial actors

6. Disclosure of climate risks.

UBS issued the following comment upon request by finews.com: «With its ambitious climate strategy, UBS is supporting a controlled transition to an economy that uses only little carbon dioxide as stipulated by the Paris agreement. UBS clients have increased their sustainable investments by more than 56 percent to almost $490 billion in the past year. We have also further reduced our investments in companies in the fossil sector to less than 1 percent of the total credit business.»

Group-Wide Climate-Risk Strategy

Credit Suisse said that the bank as a global financial firm acknowledged its share of the responsibility in the fight against climate change. The company was aware that the flow of financing has to be brought into accordance with the goals of the Paris agreement, it added.

«We wish to support our clients as a reliable partner in the transition to a low-carbon and climate-resistant economy and therefore have introduced a group-wide climate-risk strategy. In addition to that, Credit Suisse has carried out the financing of renewable energies worth more than $100 billion over a ten-year period.»

The company can counter the claim to be climate-friendly on paper only with the announcement made late in 2019 to stop financing coal-fired power stations. This year, it adopted the Poseidon Principles for the financing of shipping and the first emission of a green bond.

Abseiling as a Statement

Credit Suisse in Switzerland repeatedly was targeted by Greenpeace. In 2017, activists abseiled from the ceiling of an auditorium during the annual general meeting; in 2018 the NGO organized a demonstration on Paradeplatz in Zurich.

A year ago, the climate youth movement blocked the entrances of UBS and Credit Suisse, leading to a number of arrests.