UBS, Allianz, Aviva and Pimco join UN to rev up sustainable development investments

Pedro Gonçalves
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UBS, Allianz, Aviva and Pimco join UN to rev up sustainable development investments

Several fund management groups have joined asset owners and business leaders from around the world to sign up to a new United Nations-backed corporate alliance on sustainability.

The CEO Alliance on Global Investors for Sustainable Development (GISD) comprises of 30 chief executives from across the globe and is aimed at harnessing the insights of private sector leaders on ways to unblock impediments and implement solutions for scaling long-term investment into sustainable development, in line with the SDGs.

Thirty financial groups such as Allianz, Aviva, Pimco, Citi, Nuveen, Santander and UBS commit to provide "decisive leadership" in directing resources to achieving the UN's Sustainable Development Goals.

We see a strong business rationale for catering to the growing importance of, and demand for, sustainability"

"We face widening inequality, increased devastation from conflicts and disasters and a rapidly warming Earth. These leaders have seized our sense of urgency, recognizing that our pace must be at a run, not a crawl", António Guterres told business leaders. 

"They are committing to cooperate across borders, across financial sectors and even with their competitors, because it is both ethical and good business sense to invest in sustainable development for all people on a healthy planet." 

UBS Group CEO, Sergio P. Ermotti said, "I'm very pleased about this invitation which is a testament to our efforts to create long-term positive value for clients, employees, investors, and society. We see a strong business rationale for catering to the growing importance of, and demand for, sustainability."

By the end of 2021, UBS has committed to raise $5bn of SDG-related impact investments, which aim to create a measurable positive social or environmental impact as well as a compelling return for clients.

The Swiss bank launched the first 100% sustainable multi-asset portfolio for private clients, which includes SDG-related impact investments in equities and bonds. The portfolio recently surpassed $7bn in invested assets. 

"Trillions of dollars are needed to bridge the funding gap between where we are now, and where we need to be to achieve the SDGs," said Emmanuel Roman, chief executive officer of Pimco.

"We are extremely proud to be a member of the UN Secretary-General's GISD Alliance and look forward to working with other members to help bridge that gap."

A few of the actionable solutions the alliance is expected to advance, include encouraging innovation in financial instruments, revisiting existing and new business models aligned with the 2030 Agenda, and addressing industry obstacles to long-term investment in sustainable development. 

 

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