Focusing on the transition to a low carbon and climate resilient economy

Climate change is becoming an important area of focus by major stakeholders in our economy. Corporations are working to adapt their business practices to reduce climate impact, governments are developing regulations to control and shrink carbon footprints, and institutional investors are committing capital with climate and environmental impacts in mind.



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Index overview

What is the UBS Climate Aware Equity Index?

The UBS Climate Aware Equity Index (the “Index”) is a rules-based strategy that aims to provide investment exposure to the long-term theme of transitioning to a low carbon and climate resilient economy. The Index includes equity securities of large and medium sized US companies* while tilting the allocation towards companies that are expected to be successful in a low carbon economy. The Index is maintained by a third-party benchmark administrator and uses ESG scoring information provided by a recognized market data provider.

Systematic Rules-Based Approach

Development of the Index by UBS Investment Bank was informed in part by UBS Asset Management expertise in climate investing

The Index applies a systematic, rules-based approach to select and weight Index constituents based on climate scores

Current and forward-looking data is used to assess a company’s carbon footprint and gauge its forward-looking carbon emissions profile

Innovative Process

Seeks to achieve climate objectives while controlling tracking error

Transparent rules-based methodology combines multiple climate factors (powered by ISS)

Portfolio construction through a process that calculates individual stock weights while applying climate and ESG considerations

Climate Score Components

Carbon Emission

The Carbon Emission component underweights companies with high carbon emissions.

Coal Energy

The Coal Energy component underweights companies that generate revenue from coal mining or from generating energy from coal.

Fossil fuel Reserves

The Fossil Fuel Reserves component underweights companies with large fossil fuel reserves and companies that generate revenue from distribution or servicing related to fossil fuel reserves.

Renewable Energy

The Renewable Energy component overweights companies engaged in renewable energy and associated technologies (by combining revenue from the generation of renewable energy and potential avoided emissions per revenue).

Emissions Trajectories

The Emissions Trajectories component overweights companies committed to achieve their associated industry target under a specific climate scenario.

Severe Weather Events

The Severe Weather Events component underweights companies with significant exposure to the negative effects of more frequent and severe weather events arising from permanent climate change.

Index Construction Process

Step 1:

Step 2:

Step 3:

Calculate a Composite Climate Score for each company included in the Solactive GBS United States Large & Mid Cap index (the Parent Index) based on 6 climate scores: Carbon Emission, Coal Energy, Fossil Fuel Reserves, Renewable Energy, Emissions Trajectories, and Severe Weather Events.

Reweight the Index component companies based on each company’s Composite Climate Score by removing companies with lowest Climate Scores and overweighting companies with highest Climate Scores.

Adjust the weighting in Step 2 to reflect principles of the EU Climate Transition Benchmark*, which, among its objectives, seeks to increase transparency on underlying methodologies and data sources, and address the risk of greenwashing. The Index also excludes exposure to companies involved in tobacco, controversial weapons and violators of societal or environmental norms.

Selected Risk Considerations

  • Neither the UBS Climate Aware Index (the “Index”) nor any of the components comprising the Index are guaranteed to yield specific results. There can be no assurance that the Index will be successful or that Index investors will not incur losses.
  • The UBS Climate Aware Index levels are based on values of notional assets. There is no actual portfolio of assets to which any person is entitled or in which any person has any ownership interest.
  • Prior to investing in any products linked to (or based on) the Index, investors should seek independent financial, tax, accounting and legal advice.
  • Certain extraordinary and disruption events may impact the calculation of the Index.
  • The Index is a new index, launched on October 7th, 2021. The performance shown before that date is hypothetical back-tested information. This website contains certain performance data based on back-testing, i.e. calculations of the hypothetical levels of the Index as if it had actually existed during a defined period of time, and may in certain circumstances contain simulated levels where the Index or assets described has recently been established or issued. Further, potential investors must note that such analysis is based on a number of working assumptions and data that may not be capable of duplication in actual trading terms. Unlike actual performance records, hypothetical or simulated performances, returns or scenarios may not necessarily reflect certain market factors such as liquidity constraints, fees, market impact and transaction costs and must be considered illustrative only. Actual history or back-tested past performance does not constitute an indication of futures results. The actual performance of the Index may bear little resemblance to the hypothetical results.
  • The Index is a “price return” index and not a “total return” index and does not re-invest dividend paid by the Index constituents.
  • The Index is invested in US stocks and lacks country diversification.
  • The optimization process used to calculate the Index constituent weightings may not be successful on the first iteration and subsequent iterations may lead to further deviation from the Solactive GBS United States Large & Mid Cap Index NTR (the “Parent Index”)
  • Publicly available information on the Index and its methodology is limited. Information is available in the Index Administrator’s website:
  • UBS AG and its affiliates note that there is currently no globally accepted framework or definition (legal, regulatory or otherwise) of, nor market consensus as to what constitutes, an “ESG” (Environmental, Social or Governance),“green”, “sustainable”. “climate-friendly” or an equivalently-labelled product, or as to what precise attributes are required for a particular investment or product or index to be defined as “ESG”, “green”, “sustainable”, “climate friendly” or such other equivalent label nor can any assurance be given that such a clear definition or consensus will develop over time.
  • While the Index aims to align to certain current EU sustainability and climate regulations and has been labelled an EU Climate Transition Benchmark by the Index Administrator, neither UBS or its affiliates make any representation or assurances as to the investment or- product or index’s ESG performance, alignment or compliance with any regulatory regime, nor any future ESG performance, alignment to or compliance with any regulatory regime.
  • Neither does UBS or any affiliate make any representation or assurances that the investment or product or index will meet any or all investor objectives or expectations regarding any relevant “ESG”, “green”, “sustainable”” or other equivalently labelled objectives, or that any adverse environmental, social and/or other impacts will not occur, therefore there can be no assurance as to the viability of the investment or product or index for ESG purposes. Any questions as to the viability of the investment or product or index for ESG purposes may limit the liquidity and adversely affect the market value of the investment or product or index.
  • UBS neither represents that any ESG information or data is accurate or complete, nor that UBS has (itself or via a third-party) taken any steps to independently or otherwise verify such information. Accordingly, UBS AG or its affiliates does not accept any liability whatsoever for any direct, indirect or consequential loss arising from any actions or inactions undertaken in reliance on the information or any other content contained herein.
  • UBS AG or its affiliates may publish climate scores or ESG assessments or ratings that differ from the assessments reflected in the Index. The fact that the Index utilizes ISS’s Climate and ESG Scores does not mean that such Climate and ESG Scores necessarily reflect the climate and ESG assessments that would be made by UBS AG or its affiliates. UBS AG or its affiliates may from time to time publish or otherwise provide assessments of companies’ climate and ESG performance, including in the form of climate or ESG ratings, and these assessments and ratings may differ from the assessments reflected in the Climate or ESG Scores utilized in the Index.
  • Investors are reminded that differences in opinion are possible. Different persons (including third-party data providers, investors and other financial institutions) may interpret and apply different criteria, including use internal methodologies and arrive at different conclusions regarding the investment or product or index.
  • Investors are advised to obtain their own independent financial, legal, regulatory, tax or other advice as necessary in order to make their own investment decision as to whether the investment or product or index meets their needs and make their own determination as to the investment or product or index and future of the investment or product or index, including ESG performance, alignment or alignment to or compliance with any regulatory regime.

Indicative risk factors summary only. The risk factors are not complete, and you should read the risk factors contained in a final offering document prior to investing in any products linked to the Index. This presentation is provided for information purposes only and does not purport to summarize or contain all of the provisions that would be set forth in a final offering document.