Authors
Rodrigo Dupleich Adam Glen-Bott Urs Raebsamen

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While many asset owners started their ESG journey by simply reducing the CO2 footprint of portfolios, given these dispositions it makes sense to think about moving beyond considering only a company’s carbon emissions data.

Rules-based strategies can provide flexible, customizable sustainable portfolio solutions that can help meet the range of climate and sustainability solutions that investors are increasingly seeking.

A multi-faceted approach that incorporates broader ESG data can allow investment managers to identify companies which may potentially be better positioned to take advantage of the long-term transition to a low carbon global economy.

There are three emerging investment strategies that we see investors showing increasing interest in lately:

  • Combining sustainable managed strategies with risk premia strategies
  • Climate strategies considering social and governance issues, in the context of “just and fair” transitions or the UN Sustainable Development Goals
  • Net-zero strategies, which seek to align portfolios to the goals of the Paris Agreement

At UBS Asset Management educating our clients and other investors about key trends in sustainable investing is important to us. We hope this paper gives you some insight into the ins and outs of rules-based and net-zero aligned investing.

 

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