Environmental, Social and Governance (ESG) concerns are at the forefront of investing as never before. An extraordinary confluence of factors and developments has helped catapult sustainable investing from a niche into the main stream.
- Financial analysis has broadened to increasingly include ESG metrics not merely for their own sakes, but as indicators of the long-term opportunities and risk management capabilities of a firm.
- Based on research and experience, the realization has grown that ESG-compatibility need not mean lower returns. Rather, a focus on ESG skews a portfolio towards quality and can mitigate risk.
- The impact of their actions and life choices on society and the natural environment is a growing concern for a new generation. As millennials mature as investors, ESG will become an even more dominant aspect of investing.
- Increased transparency through adherence to international reporting standards and common frameworks such as the UN's Sustainable Development Goals means that ESG investing is becoming more feasible, consistent and reliable.
As the investment demand grows, the supply of ESG solutions has been struggling to catch up. The UBS approach promises a comprehensive approach to sustainable investing (SI) across asset classes and risk profiles, with a broad palette of dedicated solutions.
Please continue here to see how we integrate SI principles into our proven investment processes.