UBS Asset Management (UBS AM) has rolled out a new suite of strategies based on its Climate Aware framework, which will help clients in aligning their investment goals with their environmental objectives and mitigating climate-related risks in their portfolios.
UBS developed its Climate Aware framework as part of its Climate Aware passive equity strategy launched in 2017. The broader suite of investment strategies now includes active and passive, equity and fixed income which are the building blocks of most portfolios. This represents the first time UBS AM has launched a suite of products across asset classes.
The framework is based on portfolio mitigation by lowering investment exposure to carbon risks; portfolio adaptation through increasing investment exposure to climate-related innovation and solutions; and portfolio transition aligning to a chosen climate glidepath, the company said in a statement.
UBS AM president Suni Harford notes: “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.”
Sustainable finance is a firm-wide priority for UBS which manages approximately US$500 billion in core sustainable assets across all its business divisions.