Sustainable investing:

Expanding what’s possible for advisors and clients 

by Lynette Jefferson, Head of Sustainable & Inclusive Investing Solutions

The world is changing rapidly and so are investors’ priorities. 

Global awareness of sustainability has never been higher. Notably, 66% of investors surveyed globally believe sustainable investing (SI) is a highly important part of their portfolio strategy.1 Despite all of the uncertainty and volatility we’ve experienced, 54% of investors surveyed still see SI as attractive in the current market environment as of May 2022.2 In addition, UBS believes the longer term investment drivers and overall investment case remain intact and that SI can help clients advance their financial goals, while contributing to sustainability outcomes.

This presents an opportunity for Financial Advisors to connect with clients on what matters most to them and set themselves apart from the competition in the process. However, even though there is increasing client interest and demand for SI, not all Financial Advisors feel prepared to provide guidance in this area. 

From the recent Financial Advisor joiner survey, a majority of new UBS recruits have expressed a belief that they could contribute to a more sustainable world by choosing SI. Yet many Financial Advisors expressed that they felt ill-equipped to help clients with SI at their prior firms and stated SI as one of the main reasons they decided to join UBS.3 

The industry is evolving at such an incredibly rapid pace and you have to evolve with it.
Bill Carroll, Head of Sales & Development WM USA
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Our commitment to sustainability

Our commitment to sustainability starts with our purpose. At UBS, we reimagine the power of people and capital to create a better world for everyone: a fairer society, a more prosperous economy and a healthier environment.

Over the years, UBS has established itself as one of the recognized leaders for sustainability in the financial sector. In 2022, as part of the Euromoney Private Banking and Wealth Management Survey, our industry peers ranked UBS at the top of 192 global, regional and country categories, including #1 in ESG/SI. In 2021, we achieved USD 251 billion of sustainability focus and impact investments (78% increase YoY).4 In 2020, UBS made sustainable investments our preferred solution for wealth management clients wishing to invest globally.5

The Euromoney Awards for Excellence are based on information Q2 of the prior year to Q1 of the award year. UBS paid a license fee for use of the rating. The rating is based on quantitative factors and is not necessarily related to the quality of the investment advice.

When starting the SI conversation with clients, UBS Financial Advisors can highlight our firm’s long history in the space, letting clients know that for us sustainability isn’t just a trend, it’s at the heart of our business.  

Sustainability is high on our clients’ agendas and we want to help them on this journey.
Suni Harford, UBS Group Executive Board Lead for Sustainability & Impact
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What we do for our clients

At UBS, we believe sustainability is relevant to how clients manage their wealth. SI offers the potential to create better outcomes—for clients’ portfolios and our future. It allows clients to:

  • Focus on their sustainability objectives by investing in companies demonstrating leadership on ESG topics or helping finance the transition to a more sustainable world.
  • Make a lasting impact by seeking to generate measurable and verifiable positive environmental and social impact, alongside competitive financial returns.
  • Personalize their investment portfolios by building portfolios tailored to their sustainability preferences, such as climate change or diversity, equity and inclusion. 

Mobilizing even just 1% of global household wealth would help bridge the estimated USD 2.5 trillion of annual investments required to achieve the United Nations’ 17 Sustainable Development Goals, which have become a call to action, a way to raise awareness, measure progress, and engage public and private capital in sustainable development.6

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How we support our Financial Advisors

As a Financial Advisor at UBS, you have access to an array of resources, solutions and specialists across the SI value chain that you may leverage for your own education, or bring into specific client or prospect opportunities. 

  • Thought leadership: Our Chief Investment Office (CIO) produces industry-leading intellectual capital featuring the latest developments in the SI space. For instance, CIO publishes timely research on various sustainable longer-term investment themes, such as diversity and equality, clean air and carbon reduction, and the food revolution, which can power Financial Advisors’ conversations with clients on the topics that matter most to them. Furthermore, the CIO and the Wealth Management USA Asset Allocation Committee have also created a differentiated SI framework and dedicated set of SI Strategic Asset Allocations designed to provide investors with diversified exposure to strategies with explicit SI purposes, as well as estimated volatility-adjusted returns comparable to traditional portfolios. 

In 2021, as part of the PWM/The Banker Global Private Baking awards, our CIO was recognized as Best Private Banking Chief Investment Office for the first time in the category’s inaugural history. The PWM/The Banker Global Private Banking Awards are based on information from April to June of the award year. UBS paid a license fee for use of the rating. The rating is based on quantitative factors and is not necessarily related to the quality of the investment advice. 

  • Robust product offering: While our sustainability offering begins with research, it does not stop there. Financial Advisors have access to a robust open architecture SI product shelf, including exchange traded funds, mutual funds, separately managed accounts and private investment options for eligible clients. 
  • Teams of specialists: The product shelf is supported by the Sustainable & Inclusive Investing Solutions team, which can help transform CIO’s insights into actionable investment ideas and solutions. Furthermore, our Portfolio Advisory and Advisory Investment Groups are available to help Financial Advisors and clients build custom portfolios aligned to our SI standards, or transition from traditional to sustainable investments. 
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How SI can help support your business

At UBS, we not only provide Financial Advisors with resources and solutions to position sustainable investing, we also partner with you directly to deliver our differentiated approach and offering to clients—this can be an effective tool for your practice.

Learn how a team of Financial Advisors and diverse women specialists worked together to engage a USD 200 million client by aligning investment and sustainability goals

When a team of two Financial Advisors joined UBS after leaving a competitor firm, it didn’t take long for them to understand why UBS’s sustainability offering is a key differentiator.

Two of their long-time clients—sisters and stewards of the second generation of their family’s wealth—have a passion for sustainability, philanthropy, diversity, equity and inclusion.

Despite the clients’ strong connection to their prior firm, the Financial Advisors saw an opportunity to showcase the firm’s SI solutions and broad resources to transition the sisters’ business to UBS.

The Financial Advisors were able to bring together key partners across UBS, assembling a team of all-female, diverse subject matter experts from our CIO, Sustainable & Inclusive Investing Solutions and Portfolio Advisory Group. Together, they were able to highlight the firm’s approach and tailor investment solutions that aligned with the sisters’ values.

The clients ended up moving their entire portfolio from their prior firm to UBS, which resulted in approximately USD 200 million of fully managed assets.

To find out more about SI at UBS, check out our client-facing flagship brochure and capabilities brochure, or to apply for a Financial Advisor role, submit your contact information to be connected with a Field Leader. 

You might find these articles of interest.

1UBS Investor Sentiment Report 3Q 2021. About the survey: UBS surveyed 3,004 investors and 1,202 business owners with at least $1M in investable assets (for investors) or at least $1M in annual revenue and at least one employee other than themselves (for business owners), from September 28 – October 18, 2021. The global sample was split across 15 markets: Argentina, Brazil, Mainland China, France, Germany, Hong Kong, Italy, Japan, Mexico, Russia, Singapore, Switzerland, the UAE, the UK and the US. For the 2Q21 results, UBS surveyed 4,200 investors and business owners globally, from June 23 – July 12, 2021.

2UBS Investor Sentiment Report May 2022. About the survey: UBS surveyed 2,644 investors and 1,084 business owners with at least $1M in investable assets (for investors) or at least $1M in annual revenue and at least one employee other than themselves (for business owners), from March 30 – April 22, 2022. The global sample was split across 14 markets: Argentina, Brazil, Mainland China, France, Germany, Hong Kong, Italy, Japan, Mexico, Singapore, Switzerland, the UAE, the UK and the US. For the February results, UBS surveyed 4,200 investors and business owners globally, from January 4 – January 24, 2022. The global sample was split across 15 markets: Argentina, Brazil, Mainland China, France, Germany, Hong Kong, Italy, Japan, Mexico, Russia, Singapore, Switzerland, the UAE, the UK and the US.

3UBS GWM CSO “UBS New Joiners Competitor Research Analysis,” January 28, 2022.

4“2021 UBS Sustainability Report,” 11 March 2022, UBS AG and its consolidated subsidiaries.

5This will be considered in the context of what is in the client’s best interest, taking into account individual circumstances, goals, needs, interests and investment objectives.

6UBS GWM CIO “Future of Earth,” April 2021.

For more information on third party rating methodologies, please visit ubs.com/us/en/designation-disclosure.