UBS Asset management has developed a low carbon, rules-based investment approach, that not only reduces exposure to companies with higher GHG emissions, but also aims to align with companies that are better prepared for a low carbon future and the two-degree scenario.
A key distinguishing factor of this approach is a corporate engagement program, where companies are chosen based on the lowest relative score in the Glidepath probability, that highlight their management practices and policies as well as their future carbon risks.
Once selected, we explain our investment strategy to the companies, encouraging adaptation to a 2-degree scenario. In the following 3-year engagement cycle, companies will be asked to provide information showing their progress, such as actual emission levels, strategy for reduction of emissions etc., with data being updated annually. This allows for collaborative engagement, designed to help companies make progress over time.
Another vital component of our approach is its active voting policy. This is especially important, as our strategy works with companies around the world that need to adapt their business, strategy, and corporate governance in order to reduce climate risks and meet globally agreed climate change goals.
Further, we aim to report the aggregated results of progress on an annual basis, with individual examples of company progress provided on the UBS website. We also aim to publish a report at the end of the 3-year engagement period, summarising best practices and case studies of companies that made the most progress.
Through our "climate aware" approach to investing, we at UBS Asset Management believe that we can align your fiduciary duties and sustainability objectives, and engage with companies to adapt to a 2-degree scenario and lower future carbon risk.
Views and opinions expressed are presented for informational purposes only and are a reflection of UBS Asset Management’s best judgment at the time a report or other content was compiled. UBS specifically prohibits the redistribution or reproduction of this material in whole or in part without the prior written permission of UBS and UBS accepts no liability whatsoever for the actions of third parties in this respect. The information and opinions contained in the content of this webpage have been compiled or arrived at based upon information obtained from sources believed to be reliable and in good faith but no responsibility is accepted for any errors or omissions. All such information and opinions are subject to change without notice but any obligation to update or alter forward-looking statement as a result of new information, future events, or otherwise is disclaimed. Source for all data/charts, if not stated otherwise: UBS Asset Management.
Any market or investment views expressed are not intended to be investment research. Materials have not been prepared to address requirements designed to promote the independence of investment research and are not subject to any prohibition on dealing ahead of the dissemination of investment research. The information contained in this webpage does not constitute a distribution, nor should it be considered a recommendation to purchase or sell any particular security or fund. The materials and content provided will not constitute investment advice and should not be relied upon as the basis for investment decisions. As individual situations may differ, clients should seek independent professional tax, legal, accounting or other specialist advisors as to the legal and tax implication of investing. Plan fiduciaries should determine whether an investment program is prudent in light of a plan's own circumstances and overall portfolio. A number of the comments in the content of this webpage are considered forward-looking statements. Actual future results, however, may vary materially. Past performance is no guarantee of future results. Potential for profit is accompanied by possibility of loss.
© UBS 2018 The key symbol and UBS are among the registered and unregistered trademarks of UBS.