Going green

Q: Alix Foulonneau - Sustainability Research Analyst, Global Equities, UBS AM

Sustainable and impact investing: From exclusion to impact ESG factors are systematically integrated into our investment process, and our approach is standardized across asset classes. Stewardship is a core part of the investment process. We leverage our strength as a large asset manager to drive positive, material change at the company level. We believe that impact investing is the most evolved or sophisticated part of sustainable investing. Through engagement, we want to lead the companies in our portfolios to make improvements in their operations and supply chain.

Q: Joseph Elegante - Sustainability Research Analyst, Global Equities, UBS AM

Active Climate Aware Strategy The Paris Agreement’s core aim is to limit global warming to a maximum of 2 degrees Celsius above preindustrial levels, and ideally below 1.5 degrees Celsius. This means making the world carbon neutral by 2050. At the end of the century, our planet will likely be warmer than at any time in history. The impact this will have on the ecosystem, our lives and the economy will be dramatic. Climate change is creating fundamental and operational risk for companies, and prompting many to think more holistically about their energy consumption and their carbon footprint. Helping investors position for a low carbon economy can be good for both your portfolio and the planet. And the volatility we’ve seen over the last few months has widened the opportunity set.

Q: Sebastian Richner - Portfolio Manager, Investment Solutions, UBS AM

Strategy sustainable investment solution Several years ago, we sought to align our strategies with sustainability and transition our portfolios to that approach. The goal of our sustainable strategies is to offer attractive risk-adjusted returns, and to have a positive impact on the environment and society. We believe ESG is not just about reducing risk. It’s about embracing change for the future. Companies that react on climate change reduce their risk of sitting on stranded assets. It’s essential for companies to be well-regarded by all of their stakeholders in order to attract talent and avoid controversies that might lead to a lawsuit. Improvements on the governance side, such as being more transparent and inclusive, should help companies add value for investors over the long term.

Q: Willem Keogh - Head of Passive and ETF Investment Analytics, UBS-AM

Sustainable Investing with ETFs UBS has been a pioneer in sustainable investing. We launched our MSCI SRI ETFs more than a decade ago. In 2015, we launched sustainable fixed income ETFs which focused on US corporates and complemented our roster of sustainable equity ETFs. We added a Gender Equality ETF in 2017 and a Multilateral Development Bank Bond ETF in 2018 that seeks to align with the UN Sustainable Development Goals. Our main aim is to supply our clients with a building block approach. And it is important for us to work with world-class index providers. We provide an extensive range of solutions together with MSCI and S&P.

Lucy Thomas, UBS-AM Head of Sustainable Investments, discusses our approach

Sustainable investing 21 Jul 2022 17 min watch

Lucy Thomas

UBS-AM Head of Sustainable Investments

Lucy Thomas, Head of Sustainable Investing, UBS Asset Management discussed our approach to sustainability and to sustainable investing at the UBS AM – APAC Green Forum 2022.

Highlights:

Our goal is to mobilize capital toward the UN Sustainable Development Goals
The strong commitment among senior leaders at UBS, from the board all the way down, shapes everything we do
We have a notable pedigree and deep understanding of sustainability
Our Sustainable Investing capability sits across multiple teams
Sustainability across UBS Asset Management – More than just talk for us: Our goal is to create an ecosystem where we lead by walking the walk

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Adrian Zuercher - Co-Head CIO Global Asset Allocation & Global Investment Management APAC, UBS GWM

UBS GWM Chief Investment Office view on sustainable investing

One of our key themes is the expectation that value stocks will outperform growth stocks. Our gender equality investment theme enables us to pursue value. Companies that are better diversified from a gender perspective have sustainably better returns and tend to be more value driven. This is a solution where we can also play tactically, and our tactical overweight has generated outperformance relative to traditional businesses.
The world’s population is growing, approaching eight billion, and growing older. We will have to become more efficient to cope. We also need to emphasize education. Literacy and numeracy are lacking in much of the world. We can harness digital trends to address these issues and help these children have a better life.
Sustainability is a key investment topic and a long-term trend. By investing in companies that are involved in sustainability efforts, we can achieve higher earnings and growth, and have a positive impact on the world.

Alix Foulonneau - Sustainability Research Analyst, Global Equities, UBS AM

Sustainable and impact investing: From exclusion to impact

ESG factors are systematically integrated into our investment process, and our approach is standardized across asset classes.
Stewardship is a core part of the investment process. We leverage our strength as a large asset manager to drive positive, material change at the company level.
We believe that impact investing is the most evolved or sophisticated part of sustainable investing.
Through engagement, we want to lead the companies in our portfolios to make improvements in their operations and supply chain.

Joseph Elegante - Sustainability Research Analyst, Global Equities, UBS AM

Active Climate Aware Strategy

The Paris Agreement’s core aim is to limit global warming to a maximum of 2 degrees Celsius above preindustrial levels, and ideally below 1.5 degrees Celsius. This means making the world carbon neutral by 2050.
At the end of the century, our planet will likely be warmer than at any time in history. The impact this will have on the ecosystem, our lives and the economy will be dramatic.
Climate change is creating fundamental and operational risk for companies, and prompting many to think more holistically about their energy consumption and their carbon footprint.
Helping investors position for a low carbon economy can be good for both your portfolio and the planet. And the volatility we’ve seen over the last few months has widened the opportunity set.

Sebastian Richner - Portfolio Manager, Investment Solutions, UBS AM

Strategy sustainable investment solution

Several years ago, we sought to align our strategies with sustainability and transition our portfolios to that approach. The goal of our sustainable strategies is to offer attractive risk-adjusted returns, and to have a positive impact on the environment and society.
We believe ESG is not just about reducing risk. It’s about embracing change for the future.
- Companies that react on climate change reduce their risk of sitting on stranded assets.
- It’s essential for companies to be well-regarded by all of their stakeholders in order to attract talent and avoid controversies that might lead to a lawsuit.
- Improvements on the governance side, such as being more transparent and inclusive, should help companies add value for investors over the long term.

Willem Keogh - Head of Passive and ETF Investment Analytics, UBS-AM

Sustainable Investing with ETFs

UBS has been a pioneer in sustainable investing. We launched our MSCI SRI ETFs more than a decade ago. In 2015, we launched sustainable fixed income ETFs which focused on US corporates and complemented our roster of sustainable equity ETFs.
We added a Gender Equality ETF in 2017 and a Multilateral Development Bank Bond ETF in 2018 that seeks to align with the UN Sustainable Development Goals.
Our main aim is to supply our clients with a building block approach. And it is important for us to work with world-class index providers. We provide an extensive range of solutions together with MSCI and S&P.