Union Bancaire Privée (UBP) is replacing its target of achieving 100% Science Based Targets initiative (SBTi) coverage across its impact portfolios by the end of 2026 with a deeper assessment of companies’ transition plans, focusing on whether targets are backed by changes in emissions, capital allocation, governance and disclosure.
Mathieu Nègre, head of impact investments at UBP, said the previous approach had been “too simplistic”, with companies effectively assessed on whether they had an SBTi commitment or not.
From the beginning of 2027, UBP plans to conduct an internal assessment of companies whose emissions reduction targets are not SBTi-validated. The assessment will be based on four pillars: emissions trajectory, capital allocation alignment, governance and disclosure.
Nègre said the new approach would allow UBP to understand why a company was not SBTi-validated and assess the substance of its transition plan rather than relying on the presence or absence of an external commitment.
The methodology is still being developed, with UBP planning to publish a white paper setting out the framework in more detail.
The approach builds on UBP’s existing focus on company-level impact KPIs. Its 2025 impact report says each holding is anchored in at least one core KPI reflecting its most material contribution to a social or environmental outcome, with preference given to company-reported data that is audited or externally assured where possible. The report says the focus remains on outcome-oriented measures linked to real-world change.
Nègre said the new approach would also need to work alongside UBP’s existing engagement and escalation process. The manager has previously reduced or sold positions following unsuccessful engagement, although this has not occurred specifically in relation to SBTi.
Under its escalation process, companies that fail to meet critical, pre-agreed milestones within a realistic timeframe can face measures including position resizing, collaborative engagement and, if necessary, divestment.
UBP’s preference is to achieve change through engagement, Nègre said, but the new framework will allow the manager to assess progress against more substantive milestones.
For institutional investors, the change also reflects the practical challenge of demonstrating that an impact strategy is generating measurable outcomes. UBP said its reporting has become increasingly transparent around impact KPIs, portfolio examples and its proprietary IMAP assessment system, which evaluates companies across intentionality, materiality, additionality and potential.
Nègre said the quality of impact data remained a challenge. UBP relies on data provided by portfolio companies and, where a high-quality outcome KPI is unavailable, uses the closest verifiable proxy linked to its original impact thesis.
