Responsible investment

UBS Global Asset Management is committed to acting as a responsible investor on behalf of its clients, striving to take into account environmental, social and governance (ESG) factors where possible.

Signatory to key industry initiatives

In 2009, UBS Global Asset Management became an Investment Manager signatory to the UN Principles for Responsible Investment (UNPRI) . This global investor initiative, in partnership with the UNEP Finance Initiative and the UN Global Compact, is designed to provide a framework for better integration of ESG issues into mainstream investment practice.

We recognize the impact the Principles are having on the dynamics of the industry and the increasing focus of our clients and their consultants on this important aspect of their investments.

We were an original signatory of the Carbon Disclosure Project (CDP) . The CDP issues annual climate change information requests on behalf of institutional investors to more than 3,700 corporations globally to improve levels of corporate disclosure on climate change action.

We believe that participation in the CDP is a positive indicator of a company’s seriousness in addressing the potential risks and opportunities of climate change. UBS is itself committed to this issue with a target of reducing carbon emissions by 40%, from 2004 levels, by 2012.

Corporate governance

We believe that good corporate governance should, in the long term, lead towards both better corporate performance and improved shareholder value. We expect board members of companies in which we have invested to act in the service of the shareholders, view themselves as stewards of the company, exercise good judgment and practice diligent oversight of the management of the company. A commitment to acting in as transparent a manner as possible is fundamental to good governance.

Our Global Corporate Governance Principles outline our approach to corporate governance and to the exercise of voting rights across relevant investment areas. We are also a member of the Institutional Corporate Governance Network (ICGN), an investor-led network that looks at corporate governance issues globally.

We vote globally so long as there is no conflict with the efficient management of client portfolios. In the year to 31 March 2009, we voted on a total 38,606 separate resolutions at 4,035 company meetings.

Sustainable and responsible investments

Sustainable & responsible investments (SRI) take into account social and environmental criteria besides traditional financial factors when selecting securities.

UBS Global Asset Management’s SRI team, which forms part of our Equities investment area, has been offering a range of broad and thematic SRI funds for over a decade. The team also participates in international working groups such as the UN Global Compact, the UNEP FI Initiative, Eurosif (the European Sustainable Investment Forum) and Forum Nachhaltige Geldanlagen as well as supporting international conferences and academic research on SRI topics.

Our SRI funds are available to investors in several domiciles.

UBS’s commitments

UBS is firmly committed to corporate responsibility and actively strives to understand, assess, weigh and address the concerns and expectations of the firm's stakeholders. This process supports UBS in its efforts to safeguard and advance the firm’s reputation for responsible corporate conduct.

UBS’s corporate governance principles are designed to lead the firm towards sustainable growth and protect the interests of its shareholders as well as to create value for shareholders and stakeholders.

UBS has also endorsed and signed several international charters as part of its corporate responsibility commitment.