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ESG (Environmental, Social and Governance) is a term which outlines the key non-financial considerations investors can integrate into their investment process.

  • Environmental – climate change, resource use, waste management, pollution
  • Social – working conditions, employee relations, community involvement
  • Governance – remuneration levels, board diversity, corporate structure, tax strategy

The incorporation of these factors is argued to be of key importance both for highlighting opportunities and for avoiding unnecessary risk. Therefore, ESG is an integral part of a Responsible Investment strategy and a tool for potentially enhancing long-term value.

The incorporation of these factors is argued to be of key importance both for highlighting opportunities and for avoiding unnecessary risk. Therefore, ESG is an integral part of a Responsible Investment strategy and a tool for potentially enhancing long-term value.

Responsible investment is evolving from an investment niche to an established, mainstream approach. It has seen substantial growth in recent years, due to increasing interest from both institutional and individual investors. Globally, total assets committed to sustainable and responsible investment strategies have grown significantly faster than the market (+25% between 2014 and 2016) and now represent 26% of professionally managed assets.

UBP Responsible Investment
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