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UBS Asset Management

PRI reporting framework 2019

Export Public Responses

You are in Direct - Listed Equity Incorporation » ESG incorporation in actively managed listed equities » Implementation processes » (A) Implementation: Screening

(A) Implementation: Screening

LEI 04. Types of screening applied

04.1. Indicate and describe the type of screening you apply to your internally managed active listed equities.

Type of screening

Screened by


UBS Group has set standards in product development, investments, financing and supply chain management decisions, which include the stipulation of controversial activities and other areas of concern UBS will not engage in, or will only engage in under stringent criteria. As such, UBS AM will not invest in companies involved in the development, production or purchase of cluster munitions and anti-personnel mines determined to fall within the Swiss Federal Act on War Materials. Equally, we will not invest in any countries and/or regions that have been identified on the UBS Group Sanctioned List. In addition, on client request, we are able to (and do) apply client-specific exclusion lists to segregated mandates based on particular ESG themes such as tobacco, alcohol, gambling and/or adult entertainment. These exclusions are either based on particular sector classifications or based on the percentage of company revenues derived from particular activities.

Screened by


Strategies managed by UBS AM's Global Sustainable Equities Team are primarily positive screening strategies that seek to invest in companies with attractive valuation and a strong sustainability profile. By incorporating a broader mosaic of material ESG data (i.e. intangible data) into the fundamental security analysis, the team constructs a more complete picture of a company's ability to drive shareholder value. The Global Sustainable Equities Team's overall goal is to identify companies that they think are attractively valued and that also rank well on sustainability metrics as they believe these characteristics are the hallmarks of businesses that generate shareholder value.

Screened by


We implement a norms-based screening approach such that investments are screened based on whether or not they align with international standards and norms such as UN Global Compact. For this we work with a selected service provider to develop a list of companies that are seen as breaching one or more of the principles. Cases are assessed by our Sustainable and Impact Investing (SI) Research and Stewardship team and, where necessary, we initiate engagement to ensure that companies effectively close and remedy identified breaches and both communicate with stakeholders and ensure that they have addressed any management failures. Cases will be escalated for a discussion on exclusion in our SI focused strategies when we consider that the engagement objectives have not been met. 

04.2. Describe how you notify clients and/or beneficiaries when changes are made to your screening criteria.

We use an external advisor to identify companies involved in the production, sale or distribution of cluster munitions and anti-personnel mines. The firm's Sanctions Compliance Committee issues a list of affected companies based on information provided by the external advisor. The list is updated periodically. Changes are implemented by the responsible Portfolio Managers and Trading and communicated to clients.

LEI 05. Processes to ensure screening is based on robust analysis

05.1. Indicate which processes your organisation uses to ensure screening is based on robust analysis.

05.2. Indicate the proportion of your actively managed listed equity portfolio that is subject to comprehensive ESG research as part your ESG screening strategy.

05.3. Indicate how frequently third party ESG ratings are updated for screening purposes.

05.4. Indicate how frequently you review internal research that builds your ESG screens.

05.5. Additional information. [Optional]

We examine and assess financially material  ESG risk and opportunity through the following means:

1. Through our in-house ESG Research: Our Sustainable and Impact Investing team works closely with the Equity investment team to systematically integrate financially material ESG factors into fundamental research.

Our SI Analysts are responsible for:

  • Integration framework: Identification of financially material ESG factors to consider in bottom-up and top-down research. A materiality framework has been established which identifies the most financially material ESG topics per sector.
  • Top-down: Research on SI issues and trends
  • Bottom-up: Ongoing support for company analysis
  • Engagement: Proactively engaging with companies on material ESG issues

2. Though Data and Research:  We use the following external sustainability data and analysis resources to support our SI capabilities:

  • MSCI
  • Trucost
  • Thomson Reuters-Asset4
  • Sustainalytics
  • ISS
  • RepRisk

In addition to these sources, we further support our equity platform with insights from the UBS Proprietary ESG Model which includes fundamental sustainability data at the company and sector level. The data from this model is used alongside valuation data from our analysts to rank the investment universe on both fundamental, including sustainability attractiveness. The model follows the approach taken by the Sustainability Accounting Standards board in building its Materiality Map™. We believe that this model is unique and gives us a significant edge in the incorporation of fundamental, material sustainability data in the investment process.

LEI 06. Processes to ensure fund criteria are not breached (Private)