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UBS Asset Management

PRI reporting framework 2019

Export Public Responses

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Pre-Investment (Selection)

INF 05. Incorporating ESG issues when selecting investments

05.1. Indicate if your organisation typically incorporates ESG issues when selecting infrastructure investments.

05.2. Describe your organisation's approach to incorporating ESG issues in infrastructure investment selection.

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.


INF 06. ESG advice and research when selecting investments (Private)


INF 07. Examples of ESG issues in investment selection process

07.1. Indicate which E, S and/or G issues are typically considered by your organisation in the investment selection process and list up to three typical examples per issue.

ESG issues

List up to three typical examples of environmental issues

          Energy efficiency
        
          Disposal of waste
        
          Water efficiency
        

List up to three typical examples of social issues

          Health and safety
        
          Human Capital Management
        
          Corporate conduct
        

List up to three typical examples of governance issues

          Protection / exercise of shareholders' rights
        
          Engagement and co-operation with stakeholders
        
          Timely / accurate disclosure
        

07.2. Additional information. [Optional]

The list of Environmental and Social issues considered largely depends on the nature of the investment and the sector in which it is based. For example, an investment in electricity generation plants requires detailed review of emissions, emission standards and efficiency of plant design. Investment in a waste process business will require detailed review of waste handling procedures, end destination of processed waste, efficiency of waste processing facilities and natural environment impacts of disposal of treated/sorted wastes.


INF 08. Types of ESG information considered in investment selection (Private)


INF 09. ESG issues impact in selection process (Private)


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