Swiss bank UBS announced a new, innovative offering of notes to support beneficial environmental, social and governance, or ESG, investment goals.
Issued by the World Bank’s International Bank for Reconstruction and Development, the notes are linked to the Global Sustainability Signatories Index of 100 companies that have signed onto the UN Global Compact accord, which aims to include sustainability into the corporate arena worldwide. Ratings agency Sustainalytics measures the companies ESG compliance.
“This effort reflects our commitment to be the leading provider ofproducts that help align our client’s financial objectives with their priorities to support sustainability,” said Michael Nelskyla, head of investor solutions at UBS, in a press release. “We thank the clients committing capital to this initiative and hope it will encourage others to embrace innovative sustainable instruments in the future.”
The partnership is the latest in UBS’ effort to offer “compelling, sustainable alternatives to traditional high-grade fixed income products” the bank’s press release said.
A percentage of UBS revenues from the notes will fund UBS Optimus Foundation support for projects designed to improve the lives of women, children, and adolescents.
“Together, we will continue to focus on new ways to put capital to work to address the immense development challenges we must tackle to achieve the sustainable development goals,” said World Bank Vice President and Treasurer Arunma Oteh.