Transition

UBS Global Emerging Markets Equity Climate Transition Fund

Supporting the transition to a low carbon economy, while also considering social aspects in emerging markets

The transition to a more sustainable, low carbon global economy is likely to have real-world effects on emerging market countries. Investors that have EM exposure are increasingly looking to mitigate investment risks related to climate change and the transition, while seeking solutions that align to the UN Sustainable Development Goals.

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Global temperature is already above pre-industrial levels and is likely to surpass the critical 1.5 °C tipping point by 2035.

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Dependence on natural resources has increased by 65% from 2010 to 2019 as a result of unsustainable consumption and production patterns.

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Annual clean energy investment in emerging markets must increase to over USD 1 trillion by 2030 to meet net-zero emissions targets by 2050.

Evolving our approach to meet client needs
"Clients and members expect us to support the low-carbon economy and in an innovative, cost-efficient way. But that’s something we couldn’t previously do with our Emerging Markets exposure. Now, UBS Asset Management’s strong sustainable investing and indexing capabilities have enabled us to create another innovative product which we hope will help meet our members’ needs.”

Joanna Sharples, CIO, Aon DC Solutions
Facilitating the transition to a low carbon economy
“We are proud to once again collaborate with Aon to provide pension plans with the ability to mitigate climate-related investment risks in emerging markets, while also considering social aspects. The transition to a low-carbon economy is vital to reduce the risk of climate change, and this Fund brings together our proprietary Climate Aware framework and global stewardship program to collaborate with companies to work towards a lower carbon future, linking climate action with inclusive growth.”

Ian Ashment, Head of Portfolio Engineering and Trading, UBS AM

Introducing our UBS Global Emerging Markets Equity Climate Transition Fund

What differentiates our strategy

Annual decarbonization is built into the objectives to ensure that it decarbonizes in line with the IPCC's 1.5^°C scenarios – and targets net zero carbon exposure by 2050.

The strategy uses a rules-based ‘climate aware’ investment approach to mitigate social and environmental effects with five UN Sustainable Development Goals.