UBS has launched a new World Bank-backed debt product aimed at ethical investors.
The Swiss bank has partnered with corporate governance research company Sustainalytics to introduce the global sustainability signatories index, which is composed of 100 companies that have signed up to the United Nations (UN) global compact, a corporate sustainability initiative.
Signatories of the compact have to comply with its 10 principles on human rights, labour, the environment and anti-corruption.
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Energy and tobacco companies, companies involved in controversies and companies with a severe impact on environment and society are excluded from consideration.
The members of the index are then selected for inclusion based on an assessment of their policies on key sustainability issues.
The World Bank has issued a sustainable development note linked to the index which is being underwritten by UBS.
When it matures in seven years’ time, the World Bank will pay noteholders their principal plus any positive return on the index.
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Head of investor solutions at UBS Investment Bank, Michael Nelskyla, said: "We are privileged to work with the World Bank and the UN systems to offer new innovations to support the sustainable development goals.
“This effort reflects our commitment to be the leading provider of products that help align our client's financial objectives with their priorities to support sustainability.”