Our environmental, social and governance approach (ESG) Pursuing shared value with ESG investing

As a socially responsible investment firm we take a holistic approach towards investing. We believe that evaluating environmental, social and governance issues is not just a box-ticking exercise. In our view, the combination of traditional valuation discipline with sustainability analysis can enhance the possibilities for value added returns.


Our principles for responsible investment

Socially responsible investing (SRI) - also referred to as environmental, social and governance (ESG) - is an intrinsic part of USB Asset Management's investment approach. In our view, it is possible to create superior returns by focusing not just on traditional analysis of tangible financial data, but also by considering non-financial data, such as sustainability, brand reputation and supply chain management.

A socially responsible investment approach is embedded in our asset allocation processes across our traditional investment areas. In response to growing client demand we are also developing novel systems by which the total societal impact of a company's activities can be measured. In this way, socially responsible investors can measure not just their portfolio's financial gains, but also the wider effects of their investments on society.

Similarly, sustainability, or responsible property investment (RPI), is a key part of our real estate investment process. Although our clients' financial objectives are our primary focus, by considering long-term ESG aspects, RPI can also have significant positive effects on the environment.


Discover the range of broad thematic SRI funds and strategies offered by our Sustainable Equities team

In 2009, UBS Asset Management became an Investment Manager signatory to the Principles for Responsible Investment (PRI). This global investor initiative is designed to provide a framework for the better integration of ESG considerations into mainstream investment practice.

We recognize the growing importance of ESG investments on the dynamics of the asset management  industry. Increasingly, we see our clients and their consultants focusing on this important aspect of their investments and becoming truly responsible investors.

In July 2010, the Financial Reporting Council (FRC) published its UK Stewardship Code with the aim of enhancing 'the quality of engagement between institutional investors and companies to help improve long-term returns to shareholders and the efficient exercise of governance responsibilities'.

UBS Asset Management is strongly supportive of this new Code. We pride ourselves in putting clients at the heart of everything we do and it is clearly in their best interests for us to exercise our stewardship responsibilities.