Climate Investing UBS AM: Challenge & Ambition

Net Zero means achieving balance between the carbon emitted into the atmosphere by human activities, and the carbon removed from it. Reaching net zero is an ambitious goal, but at UBS Asset Management we are committed to doing our part for future generations. The shift toward a lower-carbon future is a priority for us and for many of our clients, and it is a key focus of our UBS Group sustainability strategy.

Our Net Zero approach: Guided by five principles

At UBS Asset Management we're focused on helping our clients achieve their sustainable investment and decarbonization objectives. Our approach is guided by five core principles.

Key requirements

Additional requirements

1. Decarbonization

Aim of decarbonizing investment portfolio consistent with achieving the global Net Zero goal by 2050 and including portfolio target and science-based Net Zero pathway¹.

2. Climate solutions

Investing in climate solutions that enable Net Zero global GHG emissions by 2050.

3. Real economy contribution

An engagement activity targeting relevant companies, partners, managers, borrowers, tenants and vendors not meeting or aligned with Net Zero to direct or collective engagement and stewardship actions.

4. Offsets

Used where enabling or supporting long-term carbon removal, and where there are no technologically and/or financially viable alternatives to eliminate emissions.

5. Annual disclosure

Monitoring and reporting progress annually for absolute emissions reduction and progress towards an absolute or intensity target at portfolio level.

Source: UBS Asset Management.
Note: 1) The Science Based Targets initiative (SBTi) drives ambitious climate action by enabling organizations to set science-based emissions reduction targets.
Disclaimer: Commitments are made in the expectation that governments will follow through on their own commitments to ensure the objectives of the Paris Agreement are met, including increasing the ambition of their Nationally Determined Contributions, and in the context of our legal duties to clients and unless otherwise prohibited by applicable law (NZAMI).

UBS-AM Climate investment strategies

With over 20 years’ sustainable investing expertise at UBS Asset Management, we continue to develop a range of sustainable strategies that are aimed at helping drive positive change, beyond just financial returns. To read more about our climate investment strategies, please see below. Note that these are not all offered in every market so please check with your local client relationship manager for details.

Equities

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UBS Climate Aware Global Equity

UBS Global Equity Sustainable Transition

UBS Global Equity Climate Transition

UBS Climate Aware Global Developed Equity CTB

UBS MSCI Climate Paris Aligned

Fixed Income

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UBS Climate Aware Corporate Bonds

UBS (CH) Investment Fund - Global Government Bonds Climate Risk-Adjusted Passive (CHF hedged) I-A1

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A collective action: Together we are better

Governments, businesses and financial institutions are connecting in climate initiatives to speed the pace of climate action. UBS Asset Management is one of the founding member of the Net Zero Asset Managers Initiative.

Net Zero Asset Managers Initiative

Net Zero Asset Owner Alliance

IIGCC Net Zero Investment Framework

The Institutional Investors Group on Climate Change (IIGCC) is the European membership body for investor collaboration on climate change. The Net Zero Investment Framework provides a common set of recommended actions, metrics and methodologies through which investors can maximize their contribution to achieving global Net Zero global emissions by 2050 or sooner. UBS Asset Management is a member of this framework too.

https://www.iigcc.org/resource/net-zero-investment-framework-implementation-guide/

Others

Fiona Reynolds: Developing countries hold the key to limiting climate change

The former head of the UN’s Principles for Responsible Investment believes more attention needs to be paid to supporting the climate response of less developed countries, and more focus is needed on the ‘S’ of ESG.

Dive deeper: Your guide to Net Zero and beyond

The green inflection point

Investors who want to align with the Paris Agreement are standing at an inflection point – to reach Net Zero by 2050 a change in speed is needed. It is time to move beyond exclusions and reinforce the focus on engagement. By focusing on greening the collective future with renewed urgency and commitment, we believe asset owners can help achieve net zero objectives and transform what tomorrow will bring.

The paper aims to identify:

Key actions the financial sector can take to help accelerate and scale decarbonization of the real economy
Next steps that can drive and build on decarbonization efforts across sectors

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