UBS Asset Management
Climate Impact & Sustainability Data (2007, 2023)
Reporting Period: 2007
Environmental Metrics
ESG Focus Areas
- Climate Change
- Energy Efficiency
- Renewable Energy
Climate Goals & Targets
Environmental Challenges
- Increasing greenhouse gas concentrations due to human activities (deforestation, burning fossil fuels, agricultural practices)
- Projected increase in energy consumption due to population and economic growth
- Potential for severe climate change events with temperature increases exceeding 3°C
Mitigation Strategies
- Improved energy efficiency
- Shift to renewable fuels
- Halting deforestation and planting trees
- Policies to regulate emissions
Supply Chain Management
Climate-Related Risks & Opportunities
Physical Risks
- Rising sea levels
- Melting glaciers
- Thinning ice and snow cover
- Changes in precipitation patterns
- Extreme weather events
Transition Risks
- Policy and regulatory changes
- Market shifts towards renewable energy
Opportunities
- Renewable energy
- Energy efficiency
Reporting Period: 2023
Environmental Metrics
ESG Focus Areas
- Climate Change
- Deforestation
- Biodiversity
- Board Diversity
- Human Capital
- Human Rights
- Nutrition
Environmental Achievements
- Expanded five-year Climate Engagement Program to cover seven sectors and increase focus from 45 to 75 companies
- Launched Natural Capital Engagement Program and joined Nature Action 100 collaborative initiative
- Convened investee companies from across the shipping industry for value chain engagement on decarbonization
- Made 35 net zero aligned portfolio offerings available to clients
Social Achievements
- Progressed social engagement program covering human capital, human rights and nutrition themes
- Positive progress on 64% of corporate engagements against preset objectives at 320 companies (including setting and disclosing GHG emissions reduction and gender diversity targets; board refreshment, increased diversity and independence; strengthened and aligned executive pay to long-term performance; enhanced sustainability policies and disclosures; increased transparency of communications around corporate action)
Governance Achievements
- Co-filed resolutions at two shareholder meetings on board diversity and deforestation
- Improved process for setting and tracking engagement objectives to enable better measurement and reporting of engagement outcomes
- Strengthened engagement process by evolving research and oversight process for companies where a breach of global norms or controversy occurs impacting ESG profile
Climate Goals & Targets
Environmental Challenges
- Market volatility
- Rising geopolitical tensions
- Increased disclosure requirements (CSRD and EUDR)
- Challenges of decarbonizing the shipping industry
Mitigation Strategies
- Continued to advance active ownership
- Improved engagement process
- Expanded research and engagement on biodiversity and nature
- Facilitated value chain engagement in the shipping industry
- Evolved climate engagement program to include new data sources and research on technological innovation
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: CSRD, EUDR, IFRS ISSB standards