Sustainable investing is clearly generating impact. For stakeholders, but also for banks and their clients. Sustainable investing is also the smart way forward, as Environmental Social Governance (ESG) issues affect both, public perception as well as performance. The way we look at investing has seen major change in the last few years. With the growing prominence of ESG norms, investment portfolios have seen the need to consider material, non-financial data in investment processes.
Sustainable investing has seen the fastest growth in the last few years, with sustainable assets under management doubling between 2012 and 2016. With investors controlling over USD 62 trillion in assets signing on to the UN-backed Principles for Responsible Investment, this approach is mapping the course for the future of investing.
Across UBS Asset Management, we are integrating ESG into investment research. We envision a comprehensive sustainable investing toolbox that utilizes our wide range of skills and resources, including indexing, quantitative and sustainability research, to manage the new sources of ESG data and provide transparent, progressive solutions. Using new investment analysis metrics, we are able to not only measure impact, but also capture the upside of investing in forward-looking companies with ethical business practices.
In a timely and insightful interview, Michael Baldinger, Head of Sustainable and Impact Investing at UBS Asset Management, sheds light on the game-changing approach at UBS and the need for transparent, sustainable investing.