UBS is first to make sustainable investments the preferred path for clients of its $2.6 trillion wealth management business

UBS Group, which manages $2.6 trillion in assets for some of the world’s wealthiest people, will now advise private clients to opt for sustainable investments over more traditional options when appropriate, the first major financial institution to do so.

While traditional investments will remain most suitable in some circumstances, UBS UBS, -1.47% believes a 100% sustainable portfolio can deliver similar or potentially higher returns compared to traditional investment portfolios and offer strong diversification for clients investing globally, the company said Thursday. Year to date, major sustainable indices have performed better...