UBS has unveiled its Climate Aware framework to help harness private capital to close the climate finance gap. The UBS Climate Aware framework allows investors to position their portfolios for a climate-smart future with currently available data. It contains three key elements:
- Portfolio mitigation: Lowering investment exposure to carbon risks
- Portfolio adaptation: Increasing investment exposure to climate-related innovation and solutions
- Portfolio transition: Aligning portfolios to the chosen climate glidepath
The Climate Aware framework is based on a UBS investment strategy developed in conjunction with a large UK pension fund and launched in 2017.