UBS Launches Climate Aware ETF Enabling Investors to Align Investments with Decarbonization Goals
Leading financial services company UBS announced today the launch of the UBS Climate Aware Global Developed Equity CTB UCITS ETF, aiming to enable investors to reduce their portfolio carbon footprints through exposure to companies with best in class climate scores.
Barry Gill, Head of Investments, UBS Asset Management, said:
“Investors are growing more aware of the effects climate is having on their portfolios. By providing innovative products, such as the Climate Aware ETF, we can enable clients to align their investments with their de-carbonization goals. Our Climate Aware approach is underpinned by our active stewardship program. With a consistent methodology, and growing the pool of assets invested using this framework, we can drive further positive change on behalf of our clients.”
The new ETF tracks the Solactive UBS Climate Aware Global Developed Equity CTB Index. The index assigns companies with a climate score which considers factors including a company’s carbon emissions, its renewable energy generation capacity, or its share of revenues resulting from coal mining or generation of energy from coal. The system also considers a company’s glide path probability, adding weight to companies deemed more likely to achieve emissions targets, and physical risk elements facing the company.
By exceeding climate-transition benchmark (CTB) requirements, the ETF offers exposure to a 1.8°C degree portfolio, according to index engineering company Solactive.
Timo Pfeiffer, Chief Markets Officer at Solactive, said:
“Climate-aware investing is one of investors’ most significant criteria when choosing their investments, and, through political and public initiatives, its importance will grow steadily. With UBS’s new Climate Aware ETF, investors obtain an effective tool to meet their climate and decarbonization goals. With its 1.8°C degrees target, the ETF operates under the 2°C degree threshold, making it not only future-proof but also a viable investment opportunity contributing to a greener future. We are very happy to be chosen as UBS’s index provider for this ETF.”