Following the entry into force of the Sustainable Finance Disclosure Regulation (SFDR) on 10 March 2021, we classified over a third of our EU-domiciled funds as Article 8 (“promoting environmental or social characteristics”) or Article 9 (“having sustainable investment as an objective”). In addition, we also put into place a framework to ensure that bespoke discretionary responsible investment mandates are compliant with SFDR Article 8 and added ESG ratings and information to private client portfolio statements.
Also in line with the SFDR requirements, UBP has introduced additional pre-contractual disclosures for its discretionary portfolio management and advisory mandates. We have also adapted our funds’ pre-contractual disclosures to describe how sustainability risks are taken into account and managed. In addition, our sustainability considerations have been integrated into our remuneration policy.
Lastly, our EU-based UBP entities decided to consider and manage the adverse impacts of their investments on the environment and on society, including the 18 principal adverse impacts (PAIs) defined by the regulation, as well as other potential adverse impacts that may be assessed as material.
Focus on sustainability risks
Climate-related issues, such as natural disasters and energy transition risks, represent important potential challenges to the risk management of our investments. To manage the increasing impact of sustainability threats on our investments and respond to the latest industry best practices, timely and comprehensive reporting on sustainability risks is key. UBP has therefore developed a sustainability risk management framework over the past few years, which was implemented in early 2022.
Thanks to the sustainability risk management framework, metrics – including CO₂ intensity, climate metrics, and ESG scores – were implemented for all of UBP’s activities (Treasury & Trading, Asset Management and Wealth Management), ensuring comprehensive risk report coverage. Those reports are reviewed on a monthly basis by the Risk Committee.
Responsible procurement policy
As a buyer of a wide range of products and services, UBP can influence the business practices of its suppliers. In order to ensure their ethical standards match our own, we have developed a Supplier Code of Conduct based on UBP’s core values, applicable regulations and the UN Global Compact’s principles.