UBS has unveiled its Climate Aware Framework in a whitepaper entitled Becoming climate aware: Mobilizing capital to help meet climate change goals, calling for immediate collaboration across the public sector, business and academia to close the “climate finance gap.”
According to UBS, in order to meet the goals of the Paris Climate Agreement, more than $90 trillion will need to be invested in infrastructure. Sergio Ermotti, group CEO of UBS, says there is strong investor appetite to direct private capital toward a lower-carbon future. However, there are still a number of barriers to sustainable investing, such as short-term investment horizons that only capture the short-term climate risks, as well as a lack of standardized sustainability data.
In the United States alone, the infrastructure gap is estimated to exceed $1.4 trillion.
Failure to act could give rise to a $2.3 trillion depreciation in equity market asset values, according to recent esti