Sustainable investing

The future in view

The world is changing rapidly and so are investors’ priorities.1

It’s becoming increasingly important to consider environmental, social and governance (ESG) factors with any investment. Why? Because companies that follow sustainability practices may see benefits to their businesses, making them potentially good investments—for your portfolio and for our future.2

We believe sustainability matters for all investors

In 2020, UBS made sustainable investments its preferred solution for wealth management clients wishing to invest globally.3 Whether you are primarily focused on financial returns or seeking to drive sustainable outcomes, ESG considerations can highlight risks and present new investment opportunities.2

As the world‘s leading sustainable investment manager, we‘re not new to sustainable investing.4 Having taken our first steps decades ago, we reached close to a trillion dollars in core sustainable investment assets at the end of 2020.5

Sustainability is central to our purpose, so it’s only natural that we’re putting sustainable investing where it belongs: at the heart of what we do.

Consider what matters when you invest

With any investment, it is important to understand the factors that can impact returns. Sustainable investing expands that set of considerations beyond financials to include ESG issues that can affect companies, cities and industries—and your returns.


Environmental

Includes water and waste management; ways of improving energy efficiency; and solutions to mitigate and adapt to climate change.


Social

Considers methods of ensuring better housing, education and health care; access to personal financing; and managing supply chains effectively.


Governance

Looks at issues of board diversity; and corporate transparency.

Will she always be this happy?

Live a good life on a healthy planet?

Can sustainable investing protect her future?

Education

Learn about sustainable investing

While sustainable investing is not new, it‘s still “new-to-me” for many investors

Growing acknowledgment of the interaction between social and environmental topics and corporate financial performance has strengthened the case for incorporating sustainability considerations into investment portfolios.

What is sustainable investing?

Sustainable investing is not an investment product, or an asset class. It’s an investment philosophy.

Investors increasingly show interest both in better understanding the positive and negative impacts of their investments on society and the environment, and in incorporating these considerations into how they construct and manage their portfolios.

3 ways you can incorporate sustainable investments in your portfolio

Exclude individual companies or entire industries if their areas of activity conflict with your values.

Integrate ESG factors into traditional investment process to align with sustainability objectives while seeking to improve risk and return expectations.

Invest with the intent to generate measurable environmental and social impact alongside a financial return.

Myth vs. reality

Myth

You give up returns with sustainable investments

Reality

Sustainable investing offers the potential for positive social impact, in addition to competitive financial performance.2 So it’s little surprise the global sustainable investment market is growing. 

 

Myth

You can’t measure the impact of a sustainable investment

Reality

Measured impact is a requirement of impact investing at UBS, so you can actually see the difference you’re making. Companies are increasingly reporting environmental, social and governance information related to their businesses.10 

Myth

Sustainable investing is only about protecting the environment

Reality

Sustainable investing incorporates social and governance considerations, in addition to environmental ones. Social and governance issues include health and safety, privacy and data security, labor management and business ethics.

Solutions

How UBS can help you with a range of choices

What we offer

 

  • Sustainable and thematic exchange traded funds, mutual funds and separately managed accounts5
  • Tailored private investment opportunities
  • Differentiated intellectual capital and investment framework driven by a dedicated research team

Approach sustainable investing your way

We can work with you so you will understand sustainable investing and related opportunities. Part of it is about finding the right starting point for you, based on your conviction and appetite to engage in sustainable investing.

One of the following approaches might be such a starting point for you. Whatever way, we are here to explore what works best for you:

Add it on

You might be interested to focus on a set of particular topics or themes, which you may add to your currently existing portfolio.

Run it in parallel

You may want to bring in SI by adding an SI portfolio next to your existing one. It will allow you to see how they both perform.

Switch completely

Should you want to dedicate more of your portfolio to sustainable investments, we can support you.

What do we include in our sustainable investing asset allocation?7

Fixed Income

Equities

Insights

Take a closer look at sustainable investing—and discover the difference it could make for your portfolio—and the world

Key findings

59%

of investors are more interested in sustainable investing as a result of COVID-198

69%

of women are highly interested in sustainable investing as a result of COVID-198

76%

of younger investors are highly interested in sustainable investing as a result of COVID-198

Research

Sustainable investing in action

Explore key topics and themes in sustainable investing9

People

People

Companies leading on the People topic retain, develop and promote well-being among their employees, encourage diversity and protect human rights throughout their operations.

Aligned SDGs:

Climate change

Climate change

Companies leading on the Climate change topic manage their carbon footprint and energy use effectively.

Aligned SDGs:

Pollution & waste

Pollution & Waste

Companies leading on the Pollution and waste topic have good environment management policies and systems; reduce packaging, recycle materials, manage hazardous waste, and limit toxic emissions.

Aligned SDGs:

Water

Water

Companies leading on the Water topic manage their water consumption efficiently and transparently.

Aligned SDGs:

Products & services

Products & services

Companies leading on the Products and services topic have sourced raw materials responsibly with strong social and environmental supplier standards and policies to promote safe and sustainable products.

Aligned SDGs:

Ethics & goverance

Ethics & governance

Companies leading on the Ethics and governance topic are fair and transparent on issues such as executive pay, board independence, tax and anti-corruption.

Aligned SDGs: