UBS Launches Climate Aware Strategies Suite

    Stockholm (NordSIP) – UBS Asset Management (UBS AM) unveiled a new Climate Aware suite of strategies based on the asset manager’’s Climate Aware framework. The framework was developed as a part of UBS’s Climate Aware passive equity strategy launched in 2017.

    With the new suite of investment strategies, UBS hopes to be able to help more clients align their investment and environmental goals, consistent with the commitment the Swiss asset manager made at the 2020 WEF Annual General Meeting.

    “The degree to which investors are embracing ESG as a fundamental investment driver, particularly around the issue of climate risk, is stark. As demand continues to grow and sustainable assets amass more capital, we will see the investment landscapes transform even further. This is a trend which we believe is here to stay and investors in today’s markets must understand the effect that climate is having on their portfolio” said Suni Harford, President of UBS Asset Management.

    The framework is based on portfolio mitigation by lowering investment exposure to carbon risks. The approach also focuses on portfolio adaptation by increasing investment exposure to climate-related innovation and solutions. Finally, the approach also aligns investments with a chosen climate path to ensure that the portfolio is fit to navigate the transition.

    “Our Climate Aware approach sits at the heart of our sustainable investment proposition and is underpinned by our active stewardship programme,” Barry Gill, Head of Investments, UBS Asset Management, explained. “This sends a clear message to the companies in which we invest, and allows us the opportunity to engage with these companies to help them move toward a lower-carbon future. Further, by using a consistent methodology and growing the pool of assets invested using this approach, we can drive further positive change on behalf of our clients.”

    This Climate Aware suite of investment strategies includes active and passive, equity and fixed income which are the building blocks of most portfolios and represents the first time UBS AM has launched a cross-asset class suite of products.

    “There is strong investor appetite to direct capital towards a lower-carbon future and contribute to a climate-smart world,” Michael Baldinger, Head of Sustainable and Impact Investing, UBS Asset Management, added. “Not only does our climate aware approach mitigate the risk of climate change, it also offers investors the potential to invest in those products and solutions best positioned to solve the challenges of a warming world.”

    Image by Nico Grütter from Pixabay

    Filipe Albuquerque
    Filipe Albuquerque
    Filipe is an economist with 8 years of experience in macroeconomic and financial analysis for the Economist Intelligence Unit, the UN World Institute for Development Economic Research, the Stockholm School of Economics and the School of Oriental and African Studies. Filipe holds a MSc in European Political Economy from the LSE and a MSc in Economics from the University of London, where he currently is a PhD candidate.

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