UBS real estate funds’ binding ESG commitment sends a strong signal

Zurich19 Aug 2022, 02:00 CESTReal Estate Switzerland

On the way to climate neutrality!

Real Estate Switzerland, the Swiss real estate business of UBS Asset Management, lives a sustainable real estate management and has been following a clearly defined sustainability strategy since 2012. With the inclusion of environmental, social and governance (ESG) factors in the fund contracts of the Swiss UBS real estate funds, now, all the more a strong signal is being sent toward climate neutrality of our real estate investment products.

The investment objective of the real estate funds is the long-term preservation of building substance and the distribution of appropriate income to investors. This is based on the mindful use of non-renewable energies and climate protection. The fund management company has extended the investment policy and investment objectives for its real estate funds and has set binding sustainability targets (the so-called "target matrix"). For our existing properties, our particular focus lies in replacing fossil heating systems and improving energy efficiency. We plan and implement our construction projects in accordance with established sustainability standards. Thereby, sustainability aspects are incorporated in the entire investment process and implemented along the life cycle of properties - from acquisition or from new construction to renovations and ongoing operation.

In addition to the ESG factors, additional fund contract amendments were made, which affect regulatory changes relating to the enforcement of the new Federal Acts FinSA (Financial Services Act) and FinIA (Financial Institutions Act), the revised Collective Investment Schemes Act (CISA) and the associated ordinances.

FINMA has approved these fund contract amendments, which implies their enforcement on 12 August 2022.