UBS Asset Management
UBS Asset Management is a global investment manager based in Switzerland operating in over 50 countries worldwide across Europe, the United States, Canada, Asia-Pacific, the Middle East and Africa, and Latin America and the Caribbean. It joined the Net Zero Asset Managers Initiative on 11 December 2020 and its initial target disclosure was published on 1 November 2021.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
20% of total AUM (USD $235 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Baseline(s):
Each strategy will have a different baseline metric performance relative to their benchmark.
Target(s):
Portfolio decarbonisation reference target
By 2030, weighted average carbon intensity of funds to be 50% below the carbon intensity of the respective 2019 benchmark
GHG scopes included:
Scope 1 & 2 emissions. Each strategy will have different data coverage and we have taken this into account in setting our target. We are exploring how to make best use of Scope 3 metrics given the current range of data availability and quality.
Methodology:
Net Zero Investment Framework
Scenario(s):
P2 emission pathway of the IPCC special report on global warming of 1.5°C.
Additional information
Proportion of AUM committed:
UBS AM has a little over 50% of our AUM in scope for the target (i.e. that we are able to apply a net zero alignment methodology).
• This includes:
• Active equities
• Active fixed income
• Index equities
• A proportion of our Real Estate assets.
We currently estimate that approximately 35% of these assets are capable of net zero alignment (i.e. USD235 billion) by 2030. Our target includes UBS AM investment products as well as discretionary mandates and separately managed accounts where we see these can be moved into net zero alignment.
UBS AM has identified a set of strategies that we consider suitable for net zero alignment, dependent on broader decarbonisation in the economy and in dialogue with our clients. The broad-based nature of the benchmarks associated with these strategies are consistent with referencing the global reduction requirement to set our target.
Of the in-scope assets that cannot be managed in line by 2030:
• UBS AM has a substantial indexing business; bringing market capitalization weighted assets into net zero alignment requires clients to agree to track alternate, low-carbon benchmarks.
Not in scope
• The remaining assets that are not in scope for net zero alignment include our multi-asset funds, hedge funds, money markets and sovereign and municipals issuers. These are areas where there is currently no methodology for net zeroaligned investing.
Actions being taken
• We continue to work on developing methodologies, including participating in industry working groups and other forms of collaboration, to address assets where there is currently no methodology for net zero
• We are also working collaboratively with our clients to ensure that they have access to best practices, robust approaches, standardized methodologies, and improved data.
Policy on coal and other fossil fuel investments:
Yes. UBS AM has a policy which covers thermal coal and oil sands exclusions. Our Exclusion Policy is published here: https://www.ubs.com/global/en/asset-management/investment-capabilities/ sustainability.html
It contains requirements to exclude thermal coal mining and oil sands above 20% revenue across all of our active equity and fixed income funds. And coal-fired power generation above 20% revenue for our SI-focused and impact funds.
Further information:
The UBS Net Zero statement and commitments can be found here.