The Infrastructure investment team takes into account ESG factors throughout the lifecycle of an investment, including during:
(1) initial review of investment opportunities;
(2) due diligence of investment opportunities and acquisition of assets; and
(3) ownership via active management of investments.
When a new investment opportunity is presented, the Infrastructure investment team conducts an initial screen of the opportunity, which includes a review of relevant ESG factors. This review uses information provided by the seller as well as information from public sources on the industry and the company, when available.
During due diligence of an investment opportunity, ESG factors are investigated in detail by the team. This analysis includes investigation of matters raised by internal team members and external advisors (technical, legal and other advisers). This review is typically based on greater access to company information and operational records of the business (access to a comprehensive data room containing detailed information on the business). The investment decision process then considers if the investment complies with our investment guidelines on ESG matters. To the extent the investment meets all guidelines, we then assess any additional considerations, including reputational concerns (if any) for fund investors or UBS as a consequence of the investment. After acquisition, our team monitors ESG factors of underlying portfolio investments on a continuous basis. An ESG update (and any issues) is reported monthly for each investment in our asset management committee agenda and discussed on a call.