Sustainable and Impact Investing

Redefining the way you think about sustainable investing

Insights from Global Head of Sustainable and Impact Investing Michael Baldinger

Keep informed about new sustainable and impact solutions and thought leadership papers.

Matching our SI approaches to your needs

We know that there is no 'one size fits all' approach to sustainable investing. That's why we look at it across all of them.

Avoidance of investments which are deemed undesirable either by UBS or our clients.

UBS standard exclusions:

  • Controversial weapons
  • Thermal coal
  • Integration of ESG factors in the investment process alongside traditional financial metrics
  • ESG relevant risk analysis helps us look to the future, to identify long-term risks and opportunities, and invest accordingly

A fundamental element of sustainable investing is the role of stewardship. Acting as good stewards includes activities such as:

  • Monitoring companies' ESG performance
  • Engaging with management on identified risks and opportunities
  • Voting consistently at shareholder meetings

Our sustainability focused strategies can be characterized by:

  • Extended criteria for exclusions (which go beyond the standard exclusions)
  • Positive sustainability characteristics
  • Engagement is prioritized with ESG improvers
  • Compliance with the EU-Taxonomy
  • Risk based screening to identify those higher risk issuers which are to be avoided in the investable universe

Our Impact strategies meet the minimum criteria of the sustainability focused strategies and additionally include a verifiable impact measurement. The UN Sustainable Development Goals (SDGs) create the framework for impact investing

Our approach

We have a range of products across asset classes that have sustainability playing a significant role in the investment process. We also offer tailored solutions that span the sustainability spectrum, including ESG integration, tilt toward a specific E, S or G factor, thematic, positive screening, impact or exclusions.

+20 employees dedicated to SI1

Around 900 investment professionals1

USD 97bn SI-Focused
USD 441bn ESG Integrated assets under management1

20 years of SI business history


Active equities & fixed income

We offer a broad range of sustainable and impact investing capabilities across equities and fixed income:

Active equities

  • Global Sustainable
  • Global Impact
  • International Sustainable
  • US Sustainable
  • Emerging Markets Sustainable
  • Long-Term Themes
  • European Opportunity Sustainable 

Active fixed income

  • US Corporate Bond Sustainable
  • Euro Corporate Bond Sustainable
  • CH Aggregate Bonds Sustainable

Rules-based and quants

We have several rules-based and quantitative products, including our award-winning Climate Aware strategy, as well as some market-specific quantitative sustainable solutions.

Index strategies provide many opportunities for sustainable investors, but they also face unique challenges. Through a risk-based approach to integration and stewardship, we pursue a proactive approach to identify and mitigate risks across our index strategies.

Passive and ETFs

We are the largest provider of SI equity and fixed income ETFs in Europe, and our range includes:

  • Global Gender Equality UCITS
  • MSCI ESG Universal-based indices
  • S&P 500 ESG-based indices
  • MSCI SRI indices-based indices
  • Multilateral Development Banks (MDB) Bonds

Real estate / Infrastructure

REPM, serving as a leader in sustainable real estate solutions

Sustainability is central to how REPM actively manages its infrastructure investments

Climate change, energy needs and water scarcity are counted among the biggest challenges of our century. UBS Asset Management's Real Estate & Private Markets business (REPM), created by the consolidation of real estate and infrastructure, acknowledges that real assets such as properties and infrastructure contribute significantly to CO2 emissions and the consumption of natural resources.

UBS has established a comprehensive approach to environmental and social factors, and to corporate governance across each of the investment disciplines.

At REPM we are committed to acting as responsible investors.

Responsible ownership and operation of real property can have a significant positive impact on the environment and returns for our clients. REPM operates with this in mind while investing both directly and indirectly into real assets. While the financial objectives of our clients remain the primary focus of our investments, our responsible investment strategy also considers long-term resilience, climate change, environmental, social and governance aspects.

 

Real assets such as properties and infrastructure contribute significantly to CO2 emissions and the consumption of natural resources. We operate with this in mind while investing both directly and indirectly into real assets.

Climate Aware

We are committed to integrating sustainability research across our asset classes:

  • Active Equity Climate Aware
  • Active Fixed Income Climate Aware
  • Passive Equity Climate Aware
  • Passive Fixed Income Climate Aware
  • EUR Corporates Active Climate Aware
  • USD Corporates Active Climate Aware

ESG Integration

We believe the integration of material sustainability information within our financial analysis and investment process provides unique insights into the long-term risks, opportunities and competitive advantages of companies.

Stewardship

We believe stewardship activities are an intrinsic part of long-term sustainable investing. As owners of companies we invest in, we have a fiduciary duty to monitor companies ESG performance, engage with management on identified risks/opportunities, influence business conduct and vote consistently at shareholder meetings.

Impact

Our approach to impact investing is based on 3 pillars:

Intentionality: We believe investing in companies that have impactful products and services for society

Additionality: Through stewardship, by influencing company behavior could lead to a combination of additional impact, reduced risk and/or enhanced alpha.

Measurement: Reporting on engagement activities, and progress thereof, helps clients understand how their assets have contributed to corporate change and driven solutions to global challenges.

UBS Group is a founding signatory of the Operating Principles for Impact Management. Explore how we align with the Principles in our Disclosure Statement (PDF, 827 KB).