Sustainable Assets Surge at UBS

UBS maintains momentum in sustainable investments, registering strong asset growth across its asset and wealth management divisions as a result of both market performance and new client demand.

In 2020, UBS’s global wealth arm saw assets in sustainable portfolios (those defined as 100 percent invested with the consideration of environmental, social and governance (ESG) factors) exceed $18 billion, $7 billion from inflows alongside even better performance than traditional equivalents, according to a statement.

The asset management arm also posted strong growth with sustainability-focused assets doubling to $97 billion and ‘Climate Aware’ strategies reaching $15 billion.

The bank has also successfully met its commitment to raise $5 billion for impact investments related to United Nations Sustainable Development Goals (SDG), beating the five-year timeline (2017-2021) in the second half of last year.

Sustainability is no longer just a talking point, but also a catalyst for action said group CEO Ralph Hamers. Investors and companies should seek to get ahead of this transformation if they wish to navigate 21st-century risks and opportunities effectively.

The bank highlighted Asia as a region of focus for sustainability as a theme not only within investment portfolios but across other areas.

From our conversations with investors and business owners across Asia, we know that many more are looking to integrate ESG-related aspects in their investment portfolios, business plans and philanthropic ventures, said Desmond Kuek, divisional vice chairman and chair of the bank’s APAC sustainable finance network.

The statement accompanied a white paper for the World Economic Forum’s Davos Agenda Meetings.

It listed ten sustainable finance trends the bank identified including investor engagement, impact investing, electric transport, net-zero emissions, innovations in big oil, diversity, plant-based meat, climate stress testing, sustainable data and greater data transparency.