Hub for Sustainable Finance Becoming climate aware

Mobilizing capital to help meet climate change goals: an investor’s perspective

byUBS 01 Jan 2020

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What is inside?

A collective responsibility

By Axel A. Weber (Chairman of the Board of Directors) and Sergio P. Ermotti (Group Chief Executive Officer)

The climate change

The climate finance gap: We explore the extent of the climate finance gap, looking at what is being spent compared to what might actually be needed to transition toward a lower-carbon future.

What climate challenges do investors face? Many investors want to account for climate change factors in their portfolios, but at the moment that’s proving difficult. We consider some of the challenges they face, from regulatory frameworks to data imperfections.

How are investors tackling climate change? While many are concerned with climate change, the way they approach it can vary. As one of the world’s largest wealth managers, we highlight their differing perspectives.

How should investors respond? We suggest an investor-led framework for addressing climate change. In this chapter, we outline a three step model that we believe will help investors:

  • Lower their investment exposure to climate risk
  • Increase their investment exposure to climate-related innovation and solutions
  • Align their investments to the requirements of a lower-carbon economy

At UBS we’re working toward a climate-smart future. That’s why we’re continuing to develop products and solutions which will help our clients to do the same.

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Authors

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Acknowledgements

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