Sustainable Investing Adding a third dimension to investments

Sustainable Investing (SI) is a broad set of investment strategies that incorporate environmental, social or governance (ESG) considerations into the investment process. SI consists of three distinct approaches that can be used individually or in combination: Exclusion, ESG-Integration, and Impact Investing.

Exclusion: Screen and exclude investments in business activities that do not meet personal values

Integration: Invest in securities meeting Environmental, Social and Governance criteria (ESG) alongside attractive financial fundamentals

Impact Investing: Generate a measurable social and environmental impact alongside a financial return

Investors are usually drawn to Sustainable Investing by one, and often a combination of, these three motivations:

  • Improve portfolio risk/return characteristics by factoring sustainability into investment decisions
  • Exert a positive impact on society and the environment through investments
  • Align the financial portfolio with personal values
Benefits of sustainable investing

Exclusion: Based on social, environmental or ethical criteria - select business activities that you want to exclude from your portfolio. Tailor your investments by specifying which business activities you want to exclude from your portfolio, e.g. weapons, tobacco, gambling.

Check for business activities (CBA)

Integration: The UBS Sustainability Rating is used to implement the "integration"-approach: integrating Environmental, Social and Governance (ESG) factors based on extended SI instrument universe. Focus on securities with strong environmental, social and governance characteristics (ESG) in combination with attractive financial fundamentals. The rating is based on an analysis of factors e.g.

Environmental issues include CO2-emissions, water stress, toxic emissions and waste, etc.

Social issues include labor management, health and safety, access to finance and health care, etc.

Governance issues include corporate governance, corruption & instability, business ethics and fraud, etc.

UBS sustainability rating

Impact Investing: Generating a measurable social and/ or environmental impact alongside the financial return. Your opportunity to make an intentional, measurable, positive social and/ or environmental impact through investments that have a financial return, e.g. invest in companies, structures, organizations and funds focusing on environmental/ social impact typically via Private Market solutions.

UBS Sustainability rating

Portfolio Solutions

Exclusion and ESG integration approaches in portfolio solutions with 'SI focus'

  • UBS ManageTM and UBS AdviceTM solutions with Sustainable Investing focus
  • Incorporating sustainability considerations into best-in-class instrument selection, i.e. focus on securities with strong environmental, social and governance characteristics (ESG)
  • Allowing to avoid respectively exclude selected undesired business activities

Single Instruments

Exclusion, integration and impact investing approaches through single instruments

  • Impact Investing Funds (private and public markets), e.g. health care funds
  • Sustainable Investing Funds (Equity/ Fixed Income), e.g. ETFs on 'Socially Responsible Investments'
  • Sustainable real estate funds
  • Sustainable precious metals, e.g. sustainable physical gold

Analytical services

UBS Sustainability Analytics

  • Provides you with insight: you will have access to sustainability ratings for your investments (ESG integration) and details on those portfolio holdings exposed to business activities that might be in conflict with your personal values (Exclusion).
  • Provides you with transparency and unique insights into the sustainability profile of your investments
  • Highlights potential reputational as well as longer-term investment risks
  • Enables you to actively improve the sustainability profile of your portfolio

Your needs - Our solutions

Investor type

Solution

I want to be involved in all investment decisions including sustainability

UBS AdviceTM with Sustainable Investing instructions

I want to delegate investment decisions including sustainability and concentrate on other things in my life

UBS ManageTM with Sustainable Investing instructions

I would like to invest more sustainably but don't know where I stand

UBS Sustainability Analytics

  • For single portfolios
  • For large portfolios and/ or multibank context

I have a broad view on sustainability and need a simple product to invest in

Broadly diversified Sustainability/ SRI funds (e.g. ETFs)

I want to make investments with the intention of generating measureable social and environment impact alongside a financial return

Impact investing

Our Solutions

Video

Research

UBS CIO regularly publishes research to various themes relevant for Sustainable Investing. Below you can find a selection of publications.

visual

To integrate or to exclude

en (PDF, 2 MB)

In challenges lies opportunity

en (PDF, 5 MB)

Doing well by doing good

en (PDF, 4 MB)

Adding value(s) to investing

en (PDF, 6 MB)

The full range of publications is available on the Research tab of UBS Quotes under Themes/Long-term ideas and Themes/Education Series. As a UBS client who would like to be informed about new research and recommendations you have the opportunity to subscribe to research on the Research tab of UBS Quotes under "My subscriptions". Please choose the area of your interest such as "SRI" or "climate change".