UBS Wealth Executive Says New Clients Will Drive ESG Revival

Core Insights - A new wave of investors, particularly from the second generation and female investors, is increasingly demanding sustainable investment solutions [2][3] - Despite recent challenges in the ESG sector, including political and regulatory pushback, there remains a strong underlying interest in sustainable themes, with renewable energy projects attracting a record $386 billion in the first half of 2025, a 10% increase year-over-year [3][5] - UBS has shifted its strategy by withdrawing from the Net-Zero Banking Alliance and extending its net-zero target to 2035, while also increasing its sustainable investment assets to $296 billion, reflecting a 5% growth from the previous year [6] Investment Trends - The demand for sustainable investments is particularly pronounced among newer investors, indicating a shift in investment preferences towards sustainability [3][5] - The ongoing wealth transfer is leading to a trend where clients are moving from public investments to private markets, seeking diverse return drivers [5] Regulatory Environment - The ESG label has faced significant challenges in both the US and Europe, with regulatory changes and political opposition impacting its adoption and implementation [4][6] - In Europe, landmark corporate sustainability regulations are being rolled back due to pressure from key countries, affecting the ESG landscape [4]