A new wave of investors and private banking clients are increasingly demanding sustainable investments for their portfolios, according to a UBS wealth management executive.
It's "a much bigger topic with
It "might not be the most attractive investment theme currently," he said. "But the requests we get and the intentions we actually see particularly from newer investors are definitely drifting into a more sustainable part."
Even in Europe, the label has encountered headwinds. After intense pressure from Germany and France, landmark corporate sustainability regulations affecting reporting and due diligence are being wound back. And stricter fund naming rules have led asset managers to drop the ESG label from many of the products they offer.
Still, the underlying themes continue to draw investor interest. Renewable-energy projects attracted a record $386 billion in investment in the first half 2025, up 10% from the same period a year ago, according to BloombergNEF.
"I do believe there will be a revival at one point where we start to see stewardship, ESG become a bigger investment topic," Zuercher said.
Zuercher said another key trend for the ongoing wealth transfer is the shift toward private markets from public investments. The next generation of clients "want to have as many return drivers as possible," he said.
Joining an exodus of U.S., Japanese and U.K. banks from the world's biggest climate group for the industry, UBS withdrew from the Net-Zero Banking Alliance in August. It has also extended its time-frame to reach net-zero in its own operations by 10 years to 2035, citing the Credit Suisse acquisition and regulatory guidance.
UBS increased its sustainable investment assets to $296 billion last year, up about 5% from the previous year.