- There is growing interest from clients in aligning their investment goals with their environmental objectives and mitigating climate-related risks in their portfolios
- To meet this growing interest UBS AM made a commitment at the WEF Annual General Meeting 2020 to broaden the suite of climate solutions available to our clients
- UBS AM has now launched a new suite of investment strategies that includes equity and fixed income, and both active and passive approaches. These are the building blocks of most portfolios
- The strategies will be based on UBS AM’s innovative Climate Aware framework that seeks to help clients reduce the carbon footprint of investments
- Using a consistent methodology will lead to a greater pool of assets invested using the Climate Aware approach which may create even greater impact when engaging with companies
London, 14 September 2020 – UBS Asset Management (UBS AM) today announces the roll out of its Climate Aware suite of strategies based on its innovative Climate Aware framework. This will enable the firm to support more clients in aligning their investment and environmental goals and delivers on the commitment made at the WEF Annual General Meeting 2020.
UBS developed its Climate Aware framework as part of its Climate Aware passive equity strategy launched in 2017. This launch of the broader suite of investment strategies includes active and passive, equity and fixed income which are the building blocks of most portfolios. This represents the first time UBS AM has launched a cross-asset class suite of products.
The framework is based on portfolio mitigation by lowering investment exposure to carbon risks; portfolio adaptation through increasing investment exposure to climate-related innovation and solutions; and portfolio transition aligning to a chosen climate glidepath.
“The degree to which investors are embracing ESG as a fundamental investment driver, particularly around the issue of climate risk, is stark. As demand continues to grow and sustainable assets amass more capital, we will see the investment landscapes transform even further. This is a trend which we believe is here to stay and investors in today’s markets must understand the effect that climate is having on their portfolio” said Suni Harford, President of UBS Asset Management.
“Our Climate Aware approach sits at the heart of our sustainable investment proposition and is underpinned by our active stewardship program. This sends a clear message to the companies in which we invest, and allows us the opportunity to engage with these companies to help them move toward a lower-carbon future. Further, by using a consistent methodology and growing the pool of assets invested using this approach, we can drive further positive change on behalf of our clients” said Barry Gill, Head of Investments, UBS Asset Management.
Michael Baldinger, Head of Sustainable and Impact Investing, UBS Asset Management, added: “There is strong investor appetite to direct capital towards a lower-carbon future and contribute to a climate-smart world. Not only does our climate aware approach mitigate the risk of climate change, it also offers investors the potential to invest in those products and solutions best positioned to solve the challenges of a warming world.”
Sustainable finance is a firm-wide priority for UBS which manages approximately half a trillion US dollars in core sustainable assets across all its business divisions.