UBS Group has cut its global sustainability workforce by nearly 65 per cent and reduced its Asia sustainability team by half, marking one of the most significant restructurings of environmental, social and governance functions among major global banks.
According to Bloomberg, the Zurich-based lender has reduced staffing within its chief sustainability office to around 35 employees, down from more than 100 employees in mid-2023, as it continues to integrate operations following its acquisition of Credit Suisse.
The cuts have also affected UBS' regional sustainability operations in Asia. Bloomberg reported that the bank's seven-person Asia sustainability team has been reduced to three employees in recent months.
The latest retrenchment reflects a broader shift across the banking sector, where institutions are reassessing dedicated ESG structures amid changing regulatory priorities, political scrutiny and cost pressures.
Asia sustainability team significantly reduced
People familiar with the matter told Bloomberg that UBS eliminated several sustainability positions across Hong Kong and Singapore.
The reported departures included:
• Esther Tsang, Executive Director, Hong Kong
• Fang Zhu, Executive Director, Hong Kong
• Samantha So, Associate Director, Hong Kong
• Umadevi Dassaye, Associate Director, Singapore
Bloomberg reported that the affected employees either declined to comment or could not immediately be reached.
A UBS spokesperson declined to comment on the specific job reductions but said the bank remains committed to its sustainability objectives.
"Our ambition to position UBS as a leader in sustainability remains unchanged," the spokesperson said in a statement cited by Bloomberg.
The bank added that it is embedding sustainability capabilities across business divisions to improve delivery, enhance productivity, reduce duplication and support clients more effectively.
Sustainability restructuring extends beyond core ESG office
The reduction in staffing extends beyond UBS' chief sustainability office.
According to Bloomberg, the bank dismantled its Sustainability and Impact Institute in December 2024, affecting approximately five employees. The unit had focused on sustainability-related research and thought leadership.
Bloomberg also reported that UBS has almost completely eliminated its dedicated ESG data team. The group, which previously consisted of roughly 10 employees, has reportedly been reduced to a single staff member, while data specialists and researchers were reassigned elsewhere within the organisation.
The bank's social impact and philanthropy division has also undergone restructuring.
Key changes reported by Bloomberg include:
• Social impact and philanthropy headcount falling to approximately 86 employees
• Previous staffing levels standing at roughly 150 employees before the Credit Suisse integration
• At least 40 employees reassigned to other functions within UBS
The figures suggest that UBS has prioritised redistribution of some sustainability-related expertise rather than implementing across-the-board reductions.
Wider banking industry pulls back from dedicated ESG functions
The latest cuts come as several major international banks scale back specific ESG commitments and reporting initiatives.
The shift has been particularly visible in the United States, where political opposition to climate-related policies and diversity initiatives has intensified scrutiny of corporate sustainability programmes.
Recent developments across the sector include:
• Goldman Sachs removing diversity targets from a regulatory filing in 2025
• HSBC delaying certain emissions-reduction targets
• Standard Chartered highlighting difficulties in achieving some climate goals
• UBS withdrawing from the Net-Zero Banking Alliance, following similar moves by several global banking peers
While banks continue to maintain sustainability commitments, many are increasingly integrating ESG responsibilities into mainstream business units rather than operating large standalone sustainability teams.
UBS says sustainability targets remain on track
Despite the workforce reductions, UBS maintains that it continues to make progress on its environmental and social objectives.
According to the bank's statement cited by Bloomberg, UBS reduced emissions from its operations and electricity consumption by 48 per cent in 2025 compared with its 2023 baseline.
The lender also said it exceeded its US$1 billion philanthropic funding target ahead of schedule in 2025 and reached more than 26.5 million beneficiaries through its philanthropic initiatives.
The restructuring suggests UBS is seeking to balance sustainability commitments with broader efficiency measures as it completes the integration of Credit Suisse and adapts to a changing ESG landscape.
For the banking sector, the move highlights a growing trend towards embedding sustainability responsibilities across core operations rather than maintaining large dedicated ESG teams, even as institutions continue to publicly reaffirm long-term sustainability goals.