Seizing opportunities for a climate smart economy

UBS Climate Aware Corporate Bond

Climate risks impact every sector and the potential effects of climate change will be felt in the short term while an even greater impact is expected over the long term. To address climate change and avoid a climate crisis, urgent change is needed. 

Our UBS Climate Aware Corporate Bond strategy is a 'climate aware' solution managed against a standard corporate bond index with index-like characteristics.

Our offering draws upon our Indexing and Quantitative expertise along with our Sustainable Investing insights.

Key benefits

Meaningful, 50%, mitigation of climate risk, while closely tracking the benchmark

Probability-based assessment of companies' ability to operate in line with a maximum temperature increase of 2 degrees1 (2 degree scenario)

Strategic, targeted engagement program with issuers to encourage better behavior whilst not excluding complete sub-sectors but instead tilting towards renewable energy

Projection of world energy demand million bb/d

Reference Technology Scenario (RTS)

Accounts for recent pledges by countries to limit CO2 emissions and improve energy efficiency that would result in an average temperature increase of 2.7°C by 2100

2°C Scenario (2DS)

CO2 emissions consistent with > 50% probability of max 2°C global temperature increase

Beyond 2°C Scenario (B2DS)

Predicts future deployment of available and improved technologies consistent with > 50% probability of max 1.75°C global temperature increase

Three different scenarios outlining the potential effects of CO2 emissions on the increase in global temperature

Our strengths

  • With more than 40 years’ experience in indexing solutions, our team have a strong focus on research. 
  • We aim to reach an optimal balance between a strong emphasis on reducing transaction costs and managing the tracking error within a defined range based on our stratified sampling approach.
  • Our approach is lifted by UBS-AM wide client engagement strategy.

UBS – your partner in sustainable investing

  • Today, UBS Asset Management ranks as the 6th largest sustainable investing focused manager by assets under management globally with USD 48 billion1 and has USD 357 bn in ESG integrated assets under management. We are also the 2nd most successful in raising net new money over the last 12 months.
  • We are also a leader in sustainability data and committed to supporting clients in their own climate change transition.
  • Putting that commitment into action, we continue to focus on the development of investor relevant solutions.

Related Climate Aware insights

For further information on what we can offer you, please get in touch.