Clearing the air: How UBS is using Azure to shed more light on carbon emissions

When UBS, a leading and truly global wealth manager, took a closer look at its carbon footprint, the firm discovered that over a third of its total global energy consumption came from its IT operations. Based in Switzerland, but operating across more than 50 countries, UBS’s infrastructure decisions have globally significant environmental impact.

In its quest to reduce its carbon footprint and improve energy efficiency, UBS leveraged insights from Microsoft Azure and Azure Carbon Optimization, a new emissions management and optimization feature on the Azure portal.

From data centers to cloud sustainability

Historically, UBS relied on on-prem servers to support its global operations. Ben Logan, Executive Director and leader within UBS's Sustainable Technology Guild—a passionate internal volunteer group tasked with furthering sustainability within the firm—explains, “Once we understood how much energy was being consumed by our existing IT estate, we quickly realized that by accelerating our existing cloud migration, we could deliver substantial environmental benefits.”

The Sustainable Technology Guild was founded four years ago as a grassroots initiative within UBS, driven by technology professionals from all divisions. Its primary aim is to identify and implement technologies that reduce UBS's environmental impact. Logan notes. “As we learned more, it became clear that the economies of scale achievable in Microsoft Azure data centers would result in significant sustainability benefits; better energy efficiency and access to innovations around storage, cooling and power backups, for example.”

Azure carbon optimization: a precise measurement tool

UBS previously relied on emission tools that provided only macro-level views of carbon usage—insufficient for driving the kind of operational optimization the firm needed. The company collaborated with Microsoft to address this challenge by becoming a first mover in adopting Azure Carbon Optimization. UBS played a central role in co-designing the tool, helping define the functional requirements that would make Azure Carbon Optimization impactful at enterprise scale. Azure Carbon Optimization provides precise emissions data directly linked to Azure resource usage, empowering teams on the ground to identify optimization opportunities. Now, Azure Carbon Optimization is available to all Azure customers via the Azure Portal under the “sustainability” blade.

“Most carbon assessments only show a very high-level view, but Azure Carbon Optimization offered something critical: detailed visibility,” says Vinjosh Varghese, Data Science Engineer and another key member of UBS's Sustainable Technology Guild. “Unlike previous tools, Azure Carbon Optimization provides specific, resource-level emissions data. It gives developers clear, actionable insights, showing precisely where they have hotspots and high emissions.”

Logan highlights, “The data provided by Azure Carbon Optimization was groundbreaking for us. For the first time, we had real transparency into the environmental impacts of specific applications and services. This lays the foundations required for widespread monitoring and, eventually, target setting.

Extensive pilot and cross-divisional adoption

Recognizing the transformative potential of Azure Carbon Optimization, UBS launched an extended, comprehensive proof-of-concept lasting 18 months, involving numerous business units and application teams across the firm.

“We deliberately selected a broad range of applications for the pilot,” Varghese explains. “By including everything from trading platforms to external client-facing apps, we ensured diverse testing conditions. This allowed us to evaluate how effectively Azure Carbon Optimization could deliver value across very different technical environments.”

This pilot was extensive, involving around ten teams initially but with considerable internal interest and demand for broader participation. UBS carefully controlled the pilot to ensure accuracy and reliability in its evaluations.

“The internal demand for access to Azure Carbon Optimization was extremely high," Logan recalls. "Teams across UBS wanted to measure and manage their environmental impact. This strong interest validated our approach and helped us identify opportunities to scale the tool effectively across the firm.”

Driving meaningful reductions

Through Azure Carbon Optimization, UBS teams could baseline their emissions, measure the environmental impact of specific services, and identify unexpected energy spikes.

"We had a particularly insightful moment when one team activated cognitive services,” Varghese says. "Almost instantly, we saw a spike in emissions data through Azure Carbon Optimization. This visibility allowed us to reconsider configurations, adjust workloads, and significantly lower emissions again. Without Azure Carbon Optimization, such quick action wouldn’t have been possible.”

The pilot uncovered previously hidden opportunities for emissions reductions across the organization. UBS quickly realized they could reduce aspects of their environmental footprint by better understanding the granular emissions profiles provided by Azure Carbon Optimization.

“Azure Carbon Optimization didn't just show us where emissions were,” Logan says. “It showed us how specific operational choices directly affected our sustainability efforts. This was a major leap forward in our sustainability strategy.”

Scaling sustainability across UBS

Following the successful pilot, UBS decided to scale Azure Carbon Optimization across its entire global operation, planning to provide universal access to the tool for all Azure developers within the company. Azure’s centralized infrastructure and native integration with Azure Carbon Optimization made global rollout seamless, ensuring every development team could immediately access actional insights. The UBS Sustainable Technology Guild anticipate that Azure Carbon Optimization will have a significant impact on their environmental efforts; a powerful new tool that will play a central role in emission measurement across UBS, for years to come.

“Every development team within UBS will soon have direct access to their emissions data,” Logan says. “This empowers them to set meaningful, measurable targets and continually improve performance. We intend to align Azure Carbon Optimization with our existing financial optimization frameworks, effectively creating a unified 'GreenOps' and 'FinOps' strategy."

Training and widespread internal communication will support the rollout. UBS's certified engineer scheme, already established to train developers on various technical standards (including Green IT), will soon include a specific module focused on Azure Carbon Optimization.

"We worked collaboratively with Microsoft to test and provide feedback," Logan emphasizes, " helping to shape the solution not only for UBS’s needs but also for millions of Azure customers globally."

This hands-on development approach ensured that Azure Carbon Optimization not only met UBS’s needs but also scaled to help other large enterprises meet their goals too. UBS’s pioneering involvement in the Green Software Foundation—another collaborative sustainability initiative where UBS and Microsoft are both steering members—further underscores the firm’s commitment to driving sustainability standards industry-wide.

"As a steering committee member of the Green Software Foundation, another collaborative sustainability initiative, UBS has also contributed to broader sustainability standards," Varghese notes. "For example, the Carbon Aware SDK, which we helped develop and open-source, exemplifies our commitment to industry-wide progress, not just internal gains.”

Future-proofing sustainability with AI

Looking ahead, UBS recognizes AI's potential to impact their environmental sustainability. While optimistic about the potential efficiencies AI can deliver, UBS also remains cautious about unintended consequences.

"AI adoption represents a risk, but also an opportunity," Logan explains. "We anticipate significant growth in AI workloads. However, leveraging Azure's efficiency and Azure Carbon Optimization’s precise measurement, we're confident we can proactively manage emissions associated with AI, keeping our environmental impact minimized even as our capabilities grow." As UBS increases its use of AI across services, including a standard-setting roll out of 50,000 Microsoft 365 Copilot licenses to its employees by March 2025 (the largest deployment within the global financial services industry to date), Azure Carbon Optimization will be a vital check-and-balance—enabling sustainable innovation at scale. 

Varghese adds, "When we activated AI services, the immediate visibility from Azure Carbon Optimization alerted us to emissions increases. This transparency is vital for balancing innovation and sustainability."

Transformational sustainability leadership

By moving away from energy-intensive on-premises data centers toward cloud infrastructure monitored by advanced tools like Azure Carbon Optimization, UBS demonstrates its ongoing leadership in corporate sustainability.

"Sustainability is not just a macro-level goal for us," Logan summarizes. "We’re rolling up our sleeves and taking meaningful, measurable actions at every level. Azure Carbon Optimization enables precisely that, putting detailed emissions data into the hands of those who can directly influence outcomes."

UBS's approach represents more than operational efficiency; it exemplifies the transformative power of collaborative sustainability innovation, setting a precedent for other large financial institutions. The initiative has driven stronger governance, increased developer awareness, and created a repeatable model for operational and environmental performance. "Ultimately, our journey with Azure Carbon Optimization highlights what's possible when technology, sustainability, and strategic collaboration intersect," concludes Varghese. "We're proud to be setting this standard—and we're just getting started."

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