Sustainability Report

2024
Thinking and acting with the long term in mind
Table of contents Page

Introduction 1
The importance of sustainability and culture to UBS 1
About this report 3
Our integration journey – key measures taken in 2024 6
General information 7
Our business model 7
Our stakeholder engagement 9
Assessment of the significance of environmental, social and governance (ESG) topics to UBS 12
Governance 16
Our sustainability governance 16
Business conduct and corporate culture 21
Strategy 26
Our sustainability and impact strategy 26
Our key aspirations and progress 27
Environment 29
Our climate transition plan 29
Supporting our clients’ low-carbon transition 32
Reducing our own environmental impact 44
Managing the environmental impact of our supply chain 51
Supporting our climate approach: key enabling actions 54
Supporting our approach to climate – climate-related materiality assessment 56
Social 62
People and culture make the difference 62
Driving social impact 67
Respecting human rights 70
Cyber and information security 71
Supporting opportunities 72
Global Wealth Management 77
Personal & Corporate Banking 79
Asset Management 81
Investment Bank 83
Group Treasury activities 85
Managing sustainability and climate risks 86
Sustainability and climate risk management framework 86
Risk identification and measurement 88
Monitoring and risk appetite setting 93
Risk management and control 95
Risk reporting and disclosure 97
Our investment management approach to sustainability and climate risks 98
Appendix 101
Appendix 1 – Governance 101
Appendix 2 – Social 105
Appendix 3 – Other supplemental information 108
Introduction
The importance of sustainability and culture to UBS
In 2024, we made further progress in advancing our sustainability and culture agenda. We have done so both based on
our commitment to further evolving UBS’s culture as well as our continued ambition to be a leader in sustainability.
Our sustainability and impact strategy is based on three strategic pillars: (i) Protect: manage our business in alignment
with our sustainable, long-term strategy and evolving standards; (ii) Grow: embed an innovative sustainability and impact
offering across all our business divisions; (iii) Attract: be the bank of choice for clients and employees.
We support our clients in the transition to a low-carbon world and consider climate change risks and opportunities across
our bank for the benefit of our clients, shareholders and all our stakeholders. In 2024, following a review of our own
operations target for scope 1 and 2, we decided to set a revised target to reduce scope 1 and 2 emissions to net zero by
2035, which reflects both the integrated organization and latest regulatory guidance. We made progress on these key
components of our climate action plan, reducing our net greenhouse gas scope 1 and 2 emissions and energy
consumption. For scope 3, we remain committed to our lending sector decarbonization targets to address our financed
emissions in specified sectors and have progressed on these.
We further advanced on our multi-year sustainability and climate risk Initiative toward the goal of fully integrating
qualitative and quantitative sustainability and climate risk considerations into the firm’s traditional risk management and
stress-testing frameworks.
In our first fully consolidated environmental, social and governance (ESG) ratings following the acquisition of Credit
Suisse, MSCI reaffirmed our AA ESG rating and we increased our S&P Global Corporate Sustainability Assessment score.

Trends
In 2024, sustainability-focused public investment fund markets recorded a new high of USD 3.2trn. While the level of
inflows decreased compared to previous years, investors continued to allocate to sustainability-focused funds and ETFs.
Investments into alternative asset classes, including hedge funds, real estate and infrastructure, continued throughout
2024. The share of sustainable investing private-market fundraising in total reached an all-time high.
There has been a sharp rise as well as divergence in sustainability-related regulation over the past few years. Regulators,
particularly in Europe, have begun to emphasize labeling regimes, introducing new local criteria for sustainable
investment solutions.
In an evolving macroeconomic and complex regulatory landscape, we help our clients achieve their sustainability and
impact objectives. The transition to a lower-carbon economy, including the associated risks and opportunities, continues
to be the main focus for many clients. This is driven both by their own ambitions and by regulatory requirements.
Additionally, there is a diversification of sustainable investing into private markets.

People and communities

We are dedicated to being a world-class employer for talented individuals across all our markets and a place where people
can unlock their full potential. Our global presence in 51 countries and jurisdictions, combined with the expertise of more
than 110,000 employees worldwide, helps us to create better outcomes for our clients, communities and colleagues.
Our employees execute our business strategy and deliver on our client promise. We therefore aim to attract, develop and
retain employees who have the capabilities, potential and mindset to help us achieve those aims. Meritocracy continues
to be at the forefront of any decision we make.
Corporate citizenship principles are embedded into our employment practices, for example, in the benefits we offer and
in our fair pay practices.
In December 2024, we celebrated 25 years of the UBS Optimus Foundation. During this time, Optimus has grown from
a small grant-making organization to an influential network of foundations in nine locations working at a global and
local level to drive transformative change for marginalized communities. In 2024, we surpassed our goal set in 2021 of
mobilizing USD 1bn in philanthropic capital by end of 2025, by reaching a total of USD 1.1bn.
In 2024, we successfully engaged 32% of our global workforce in volunteering activities, many in skills-based programs.
We recognize the importance of continuing this effort for those we support, empowering our participating employees
and fostering communities that also benefit our business.

Sustainability Report 2024 | Introduction 1

Our commitment
We support our clients in understanding the impact of climate change in their business models, their supply chains and
their investments, including risks and opportunities. That is why we contribute to the development of methodologies and
data that enhance transparency. However, our climate-related ambitions and targets depend on the overall progress made
by all sectors and countries, and factors that are beyond our direct control require clear guidance from governments
through thoughtful regulations and policies.
Clients remain at the heart of what we do. We therefore remain steadfast in our commitment to be their bank of choice
and support them with offerings that meet their evolving needs.

Colm Kelleher Sergio P. Ermotti

Chairman of the Board of Directors Group Chief Executive Officer

UBS was among the companies that first signed the UN Global Compact in 2000 and is also a member of the UN Global
Compact Network Switzerland, meaning we are committed to its principles on human rights, labor standards, the
environment and anti-corruption. As reflected in detail in this report, we have a comprehensive set of goals and activities
in place pertaining to the principles of the UN Global Compact.

Sustainability Report 2024 | Introduction 2

About this report
Overview
The reporting period for this UBS Group Sustainability Report is 1 January to 31 December 2024, which is aligned with
the financial reporting period of UBS Group AG. All 2024 data included in the report is therefore for this period. Historical
data (for 2022 and prior) pertains to pre-acquisition UBS, unless otherwise stated. Data showing progress against our
decarbonization sectorial targets pertains to 31 December 2023 (due to the unavailability of relevant 2024 data, as
explained in the respective section of this report).
Unless otherwise noted, the information included in this report is presented at the consolidated level for UBS Group AG.
› Refer to “Note 28 Interests in subsidiaries and other entities” in the “Consolidated financial statements” section of the UBS Group
Annual Report 2024, available under “Annual reporting” at ubs.com/investors, for supplementary information regarding certain
significant subsidiaries

This report has been prepared with reference to the Global Reporting Initiative (GRI) and in accordance with our Basis of
preparation. It also comprises the non-financial disclosures required for UBS Group AG and its subsidiaries, including UBS
AG, under the Swiss Code of Obligations Art. 964b, including the Swiss Ordinance on Climate Disclosures. A table at the
end of this report (Appendix 3) provides the references to such non-financial information.
› Refer to the GRI Content index, available at ubs.com/sustainability-reporting, for more information on the metrics with references
to GRI standards
› Refer to the Basis of preparation document, available at ubs.com/sustainability-reporting, for more information on the metrics
definitions, approaches and scope
› Refer to the “Supplement to Managing sustainability and climate risks” section of the Supplement to this report, available at
ubs.com/sustainability-reporting, for information on the implementation of the environmental risk regulations in Singapore and
the Hong Kong SAR by UBS, and disclosures in connection with the legal entity reporting requirements of the ESG Sourcebook in
the Business Standards section of the UK Financial Conduct Authority Handbook, and for information pertaining to UBS Group
AG’s approach to the “Swiss Ordinance on Due Diligence and Transparency in relation to Minerals and Metals from Conflict-
Affected Areas and Child Labor”
› Refer to “Key terms and definitions” in the “Appendix 3 - Other supplemental information” section of this report for terms and
abbreviations used in this report

Credit Suisse integration – explanations and related assumptions

On 12 June 2023, UBS Group AG acquired Credit Suisse Group AG, succeeding by operation of Swiss law to all assets
and liabilities of Credit Suisse Group AG, and became the direct or indirect shareholder of all the former direct and
indirect subsidiaries of Credit Suisse Group AG. UBS Group AG is a holding company and conducts substantially all its
operations through UBS AG, and subsidiaries thereof. UBS aims to substantially complete the integration of Credit Suisse
into UBS by the end of 2026.

The legal structure of the UBS Group

The chart below gives an overview of our principal legal entities and our legal entity structure.
UBS Group AG
100%

UBS AG (sub-) consolidated Other

participations6
UBS AG
100% 98% UBS Business
Solutions AG
UBS UBS Asset UBS Americas Other non-US Credit Suisse 100%
UBS Europe SE
Switzerland AG Management AG Holding LLC subsidiaries¹ International²

100% Credit Suisse

Services AG
Credit Suisse
UBS Americas Inc.
Holdings (USA), Inc.

100% 100%

UBS Business UBS Financial Other US Credit Suisse

UBS Bank USA UBS Securities LLC3
Solutions US LLC Services Inc. subsidiaries4 (USA) LLC5

1 Other non-US subsidiaries are held either directly or indirectly by UBS AG. 2 Of which 98% held by UBS AG and 2% held by UBS Group AG. 3 Of which 99% directly held by UBS Americas Inc. and 1% held
by UBS Americas Holding LLC. 4 Other US subsidiaries are typically held either directly or indirectly by UBS Americas Inc. 5 Other US subsidiaries are held directly by Credit Suisse (USA) LLC. 6 And other small
former Credit Suisse Group entities now directly held by UBS Group AG.

› Refer to the “Risk factors” and “Regulatory and legal developments” sections and the “Integration of Credit Suisse” section of the
UBS Group AG Annual Report 2024, available under “Annual reporting” at ubs.com/investors, for more information

Sustainability Report 2024 | Introduction 3

Assurance and agreed-upon procedures
UBS’s sustainability metrics, as disclosed in the UBS Group AG Sustainability Report 2024, have been assured by Ernst &
Young Ltd, Basel (EY). EY’s procedures covered 29 metrics subject to reasonable assurance in key areas such as climate
and 230 metrics subject to limited assurance. A list of these metrics and level of assurance can be found in the assurance
report.
In 2024, we also engaged EY to perform agreed-upon procedures (AuP) on our lending sector decarbonization targets
to assist us in determining whether these have been set in line with reference scenarios mentioned and informed by
certain requirements taken from pertinent global standards and initiatives.
› Refer to “Appendix 3 – Other supplemental information” in the “Appendix” section of this report for the assurance report
› Refer to the Lending sector decarbonization targets AuP report, available at ubs.com/sustainability-reporting, for more
information on agreed-upon procedures on our lending sector decarbonization targets

Explanation of dependencies
Certain activities of UBS that pertain to the implementation of its sustainability and impact strategy are directly impacted
by factors that UBS cannot influence directly or can only influence in part. These include pertinent governmental actions
(e.g. when it comes to the achievement of the Paris Agreement and thus the achievement of our firm’s climate-related
ambitions); the quality and availability of (standardized) data (e.g. in such areas as emissions); the development and
enhancement of required methodologies and methodological tools (e.g. on climate risk); the ongoing evolution of
relevant definitions (e.g. sustainable finance); and the furthering of transparency (e.g. pertaining to company disclosures
of data). Areas where these dependencies are of particular relevance (including, in particular, regarding the examples
noted above) are explained in the relevant sections of this report.
17 March 2025
UBS Group AG

Contacts
Information to stakeholders about the content of this report is provided by the stakeholder management team, part of
UBS Group Sustainability and Impact.
cr@ubs.com

Sustainability Report 2024 | Introduction 4

Terms used in this report, unless the context requires otherwise

”UBS,” ”UBS Group,” “UBS Group AG consolidated,” “Group,” “the UBS Group AG and its consolidated subsidiaries
Group,” “we,” “us” and “our”

“UBS sub-group” All UBS Group entities, excluding Credit Suisse AG and its consolidated
subsidiaries, Credit Suisse Services AG, and other small former Credit Suisse
Group entities now directly held by UBS Group AG

“UBS AG,” “UBS AG consolidated“ UBS AG and its consolidated subsidiaries

“Pre-acquisition UBS” UBS before the acquisition of the Credit Suisse Group

“Credit Suisse AG” Credit Suisse AG and its consolidated subsidiaries before the merger with UBS
AG

“Credit Suisse Group” and “Credit Suisse Group AG consolidated” Credit Suisse Group AG and its consolidated subsidiaries, before the
acquisition by UBS

“Credit Suisse” Credit Suisse AG and its consolidated subsidiaries before the merger with UBS
AG, Credit Suisse Services AG, and other small former Credit Suisse Group
entities now directly held by UBS Group AG

“UBS Group AG” and “UBS Group AG standalone” UBS Group AG on a standalone basis

“Credit Suisse Group AG” Credit Suisse Group AG on a standalone basis

“UBS AG standalone” UBS AG on a standalone basis

“Credit Suisse AG standalone” Credit Suisse AG on a standalone basis

“UBS Switzerland AG” UBS Switzerland AG on a standalone basis

“UBS Europe SE consolidated” UBS Europe SE and its consolidated subsidiaries

“1m” One million, i.e. 1,000,000

“1bn” One billion, i.e. 1,000,000,000

“1trn” One trillion, i.e. 1,000,000,000,000

In this report, unless the context requires otherwise, references to any gender shall apply to all genders.

Sustainability Report 2024 | Introduction 5

Our integration journey – key measures taken in 2024
In 2024, our focus continued to be on the integration of Credit Suisse, with our progress described in the shareholder
letter in the UBS Group AG Annual Report. We have also continued the integration process across our sustainability and
culture activities, with key measures set out in the table below.
Governance We advanced with the integration of governance bodies and policies
We near-completed the integration of Credit Suisse sustainability activities into the operational processes and structure of the UBS
Group by decommissioning further Credit Suisse governance bodies and policies. In 2025, we aim to fully integrate the remaining
Credit Suisse sustainability-relevant governance bodies, policies and procedures into the overall UBS Group sustainability governance in
accordance with the overall UBS Group integration efforts and timeline.

Strategy We apply our sustainability and impact strategy Group-wide

We applied within the overarching sustainability and impact strategy of the UBS Group a limited number of sustainability-related
policies, processes and activities that continued at Credit Suisse in 2024.

Environment We progressed on our Group-wide climate ambition

We developed and introduced the Group-wide Company Transition Assessment Scorecard (CTAS), which assesses how advanced a
company is on its transition path toward decarbonization.
We worked on defining a more strategic and scalable toolset for calculating, monitoring and reporting the integrated firm’s climate-
related metrics covering the financing of corporate loans and facilitated emissions. Guided by our technology and ESG (environmental,
social and governance) data strategy, we developed a fully cloud-based toolset that will be fully operational in 2025.
We concluded our first integrated ISO14001 environmental management surveillance audit for our in-house environmental program
and set a new scope 1 and 2 target reflecting the integrated organization and latest guidance.

Social We are building a unified culture

We leveraged a dedicated forum chaired by the Head Group Human Resources and Corporate Services and composed of senior
management representatives and selected external advisors to steer culture integration across our firm.
We consolidated the former Credit Suisse Foundations with the UBS Optimus Foundation, with the alignment of their philanthropic
foundation program portfolios underway.
We rolled out our Group-wide Responsible Supply Chain Management framework and our Global Procurement and Vendor
Management Policy and Guidance to Credit Suisse.

Supporting We leverage the power of the integrated firm for the benefit of clients
opportunities We continued to align our sustainability-related governance structures and policies and brought together our processes and teams to
enhance collaboration and leverage our combined strengths.
We applied UBS sustainable investing policies to the Credit Suisse products when onboarded to the UBS shelf. This process is being
carried out in waves and will continue until at least the end of 2025. We continued with having in operational use the legacy Credit
Suisse Sustainable Investment Framework (the SIF) for Credit Suisse Wealth Management and Credit Suisse Asset Management clients
still being serviced through the Credit Suisse systems.

Managing We integrated the firm’s sustainability and climate risk appetite

sustainability We further enhanced our transition and physical risk methodologies and updated the sustainable finance and carbon and
and climate environmental market guidelines, to address emerging sustainability and climate risks.
risks

› Refer to the “Integration of Credit Suisse” section of the UBS Group Annual Report 2024, available under “Annual reporting” at
ubs.com/investors, for more information

Sustainability Report 2024 | Introduction 6

General information
Our business model
UBS – who we are
UBS is the largest truly global wealth manager and the leading bank in Switzerland. These key pillars of our strategy are
enhanced by focused and competitive investment bank and asset management capabilities. Staying close to our clients,
whether they are individuals, institutions or businesses, and providing financial advice and solutions to help them to
achieve their goals is of the upmost importance to us. We have a capital-generative and well-diversified business model
with strong competitive positions in our target markets. Our business model, our strong and risk-aware culture and our
superior client service, as well as our respected brand with over 160 years of history and our capital prudence, have made
it possible to consistently and sustainably both grow profits and deliver a high return on equity over the long term. The
acquisition of the Credit Suisse Group has further accelerated our growth strategy by providing our client franchises with
additional scale, complementary capabilities and talent in line with our ambition to position UBS for sustainable, high-
quality returns and long-term growth.

We are focused on driving sustainable long-term growth while maintaining risk and cost discipline
Our objective is to generate value for our shareholders and clients by driving sustainable long-term structural growth and
attractive capital returns. To accomplish this, we are building on our scale, content and solutions, while remaining
disciplined on capital, risk and costs. Maintaining a balance sheet for all seasons remains the foundation of our success.
This gives us the capacity to invest strategically and will enable us to deliver against our financial targets and ambitions,
which are outlined in the “Targets, capital guidance and ambitions” section of this report.
Our growth plans are rooted in an attractive business mix that is also a source of our competitive strength. Our asset-
gathering businesses are characterized by being structurally attractive from a capital consumption perspective and
generate more than half of our revenues1, while representing around 40% of our risk-weighted assets (RWA)1. Roughly
another third of our RWA1 are in Personal & Corporate Banking in Switzerland, our home market and an attractive, stable
and well-diversified economy, with low historic credit losses. Furthermore, we operate a capital-light Investment Bank,
which is limited to 25% of Group RWA.1
Moreover, our aim is to maximize our impact and that of our clients to create long-term sustainable value. We also have
a responsibility toward the communities we serve and our employees. We have outlined selected environmental, social
and governance (ESG) aspirations, which we expect to support our financial targets and ambitions.

We have a global, diversified business model

Our invested assets of more than USD 6trn are regionally diversified across the globe. We give our clients access to a
broad, relevant and customizable range of solutions, which, together with our thought leadership and capabilities,
position us well to become their partner of choice. Our strategic ambitions reflect the long-term outlook on demographic
and social trends affecting wealth distribution, product demand and client experience.
Half of our wealth management clients’ invested assets are in the Americas, where we are among the top players in the
world’s largest wealth pool, with solid wealth generation prospects. The Investment Bank has invested in growing its
Global Banking, Global Markets and Research capabilities in the region, and it is focused on cross-regional and cross-
divisional collaboration to drive growth.
In Asia Pacific, which is the fastest-growing wealth market, we are by far the largest wealth manager,2 and we are building
on that scale to drive growth. We are further developing our businesses in the region to deliver our leading capabilities,
leveraging our expanded and diversified footprint, strengths in cross-divisional collaboration and global connectivity.
In EMEA we are focused on improving profitability and driving focused growth by optimizing our domestic footprint and
providing a comprehensive offering for entrepreneurs.
Finally, in Switzerland we have a highly integrated business and aim to reinforce our position as the leading bank. We are
driving our digital transformation, enhancing the client experience and improving efficiency, while focusing on capturing
selected growth opportunities. We are also delivering on our commitments to our home market, as we continue to
provide around CHF 350bn of credit to Swiss companies and the economy.

Sustainability Report 2024 | General information 7

We collaborate as one UBS to deliver integrated coverage for clients
We strive to serve our clients as one firm, with collaboration across our business divisions being a cornerstone of our
strategy and a key differentiator, as we deliver the best of UBS. For example, our asset-gathering franchises work in
synergy to offer clients a comprehensive product suite paired with exclusive, premium personalized services. The
Investment Bank complements these by delivering insights, execution capabilities and risk management expertise to both
our wealth and Swiss corporate clients. We regularly enhance this integrated approach to support our growth, as
demonstrated by recent initiatives, such as the establishing of the division-agnostic Unified Global Alternatives and the
creation of Global Wealth Management Solutions.

Supporting sustainability
We help our clients achieve their sustainability and impact objectives while navigating the evolving macroeconomic and
complex regulatory landscape. To help us realize this ambition, our sustainability and impact strategy is based on three
strategic pillars: (i) Protect – manage our business in alignment with our sustainable, long-term Group strategy and
evolving standards; (ii) Grow – embed an innovative sustainability and impact offering across all our business divisions;
and (iii) Attract – be the bank of choice for clients and employees. We support our clients in the transition to a low-
carbon world and consider climate change risks and opportunities across our bank for the benefit of our clients,
shareholders and all our stakeholders.

We are investing in our technology to drive business outcomes

We have a proven technology strategy in place to focus on delivery and experience for our clients and employees, while
we are preparing for the future. We are constantly modernizing our technology to support an already strong foundation;
we have a robust infrastructure, 70% of which is in the public and private Cloud, that maintained over 99.999%
availability over the last year and maintains high security standards.
This foundation facilitates our integration and enables us to embrace and implement innovation, such as generative
artificial intelligence (AI), to bring technology products and solutions to the next level.
We are evolving into an AI-driven institution, using generative AI to drive growth, improve client service, and increase
productivity. In the fourth quarter of 2024, we announced the deployment of 50,000 Microsoft Copilot licenses, the
largest in the global financial services industry at the time. This initiative is already showing increased usage of generative
AI tools, with 1.75 million prompts across all tools in 2024, and it is expected to substantially expand in 2025. We will
continue delivering AI initiatives across our businesses, including re-inventing how we do software engineering.
We invest in partnerships with leading academic institutions worldwide and other key players to develop ideas, drive
outcomes across the firm and foster pioneering AI research.
We are committed to driving innovation and excellence, ensuring that our technology advancements meet the
expectations of our clients, employees, and stakeholders.
Our efforts are supported by our governance and controls that are designed to safeguard the interests of our clients,
employees and other stakeholders.
› Refer to the UBS Group Annual Report 2024, available under “Annual reporting” at ubs.com/investors, for more information

1 Excluding Non-core and Legacy.

2 Asian Private Banker, 23 January 2024.

Sustainability Report 2024 | General information 8

Our stakeholder engagement
We engage with UBS’s stakeholders, such as clients, employees, investors, policymakers, legislators and regulators, along
with representatives of the business community, society and non-governmental organizations (NGOs), on a regular basis
and on a wide range of topics. This engagement helps us to better understand stakeholder expectations and concerns
and to manage pertinent issues and challenges. In recent years, the exchange of views and ideas with stakeholders on
sustainability-related issues has grown in importance. Such interactions are undertaken through various dedicated
channels.

Employees
Our employees want to be heard and to be involved in shaping their daily experience. As such, we offer opportunities
throughout the year for employees to connect with management and provide feedback on topics such as strategic
alignment, employee engagement, well-being, our work environment and line manager effectiveness. As an example,
initiatives such as our regular Ask the CEO event, give employees the chance to learn about (and ask questions about)
topics such as strategy.
Our multi-faceted employee listening strategy is adaptable, captures feedback in a timely way and drives meaningful
improvements to the employee experience. We conduct employee life cycle surveys, short “pulse” surveys to understand
what is top of employees’ minds and in-depth analyses, such as virtual focus group sessions. In 2024, those conversations
allowed participants from every business division and function to share their perspectives and insights on the integration
and provided employee sentiment data points to track progress. Group-wide surveys measure cultural indicators, such as
line manager effectiveness and employee experience.

Clients
Our clients’ needs and their preferred communication channels continually evolve. Our objective is to engage with clients
in the ways most convenient for them. We use a variety of channels, in particular digital channels and regular client
relationship and service meetings, as well as various corporate roadshows and dedicated events, with a mix of hybrid and
in-person events.
Global Wealth Management interacted with its clients through a broad range of forums and channels in 2024, from
personalized private briefings with subject matter experts to segment-specific virtual and in-person events and large-scale
initiatives. Through marketing and media campaigns, events, advertising, publications and digital-only solutions, we
helped drive greater awareness of UBS among prospective clients and reinforced trust-based relationships between
advisors and clients. We proactively engaged with clients to reassure them about the acquisition of the Credit Suisse
Group and highlighted the benefits of the combined organization for them. This was done through individual meetings
and calls and by opening up certain flagship events and conferences to clients of the combined firm. Our global footprint
means that we were well positioned to take advantage of the opportunities in every region. We have continued to deliver
capabilities to clients, for example through digitally enabled e-banking and sales tools, while also setting up new units,
such as Global Wealth Management Solutions, Unified Global Banking and Unified Global Alternatives, adding even
greater connectivity across all our businesses. We have also continued to roll out artificial intelligence (AI) to positively
impact our business and serve our clients better. We expect generative AI will continue to help us generate more
personalized advice and solutions more quickly and in a sustainable and responsible way, ensuring a more efficient
experience for our clients around the globe.
Personal & Corporate Banking holds regular client events (leveraging a number of formats, such as webcasts and in-
person, virtual or hybrid events), covering a wide range of topics. In 2024, we further enhanced our digital engagement
strategies to reach more clients and strengthen relationships with existing ones. We utilize various channels, including
social media, online displays, search engines and helplines, as well as our branch network.
In Asset Management, we continue to host our global program of client events and engagement activities. These include
our annual The Red Thread market outlook roadshow, which we host in key locations across the world, as well as our
flagship UBS Reserve Management Seminar, which marked its 30th year of operation in 2024. The event brings together
institutional investors to debate relevant topics and share best practices, and the accompanying survey provides one of
the most authoritative depictions of central banks’ investment views. Alongside this, our teams continued the high level
of interaction with clients globally, supported by digital tools and our publication of macro and thematic insights. We
also hosted a broad range of hybrid events, including our investment series, to help our clients better understand market
challenges and opportunities, and we continued to engage with clients through our social media and online channels.

Sustainability Report 2024 | General information 9

The Investment Bank hosted more than 240 conferences and educational seminars globally in 2024, providing clients
with access to corporations, experts, research and capital introductions. The events covered a diverse range of topics,
including macroeconomic, geopolitical and sector- and region-specific themes, in addition to regulatory, product and
market trends. More than 50,000 clients took part in such events over the year. We leverage our intellectual capital and
relationships and use our execution capabilities, differentiated research content, bespoke solutions, client franchise model
and global platform to expand coverage across a broad set of clients. UBS Live Desk, built within the UBS Neo platform,
provides clients with a stream of fast-paced commentary from UBS traders. The UBS Analytical Research Community
(UBS-ARC) is a proprietary, interconnected research network of industry leaders, subject matter specialists, executives,
academics and analysts in the Americas region.
Client feedback and surveys
We engage with our clients on a regular basis and on a wide range of topics. This engagement helps us to better
understand clients’ expectations and concerns, including those pertaining to sustainability, and to manage pertinent
issues and challenges. Feedback received from clients relevant to our policies is considered in the regular reviews of
policies and incorporated where applicable. Our client insight and feedback teams are responsible for gathering and
processing all demands and issues raised through our central channel, available online.

Investors
We have regular interactions with institutional investors, financial analysts and other market participants, such as credit-
rating agencies, including on sustainability topics. These interactions take place through the UBS Investor Relations team,
with subject matter experts engaged as required, and help us to learn about investors’ concerns and address them as
effectively as possible. The annual general meeting is also an open forum for shareholders to voice their concerns or
inquiries that may then feed into our approach on material topics.

Governments and regulators

Financial market stability is largely dependent on the overall economic, regulatory and political environment and the
conduct of firms within the sector. We actively participate in political and regulatory discussions to share our expertise on
proposed regulatory and supervisory changes. Our lobbying priorities and engagements – both direct and indirect through
our trade associations – are a reflection of our strategy and priorities. In Switzerland, they must be aligned with the
general political engagement approach defined by the Political Board Swiss Chapter. In the US, our lobbying priorities are
presented to and approved by the Region Americas’ top management group at the beginning of each year.
Regarding the stability of the financial system, UBS advocates for an internationally aligned regulatory framework,
including capital and liquidity rules, anti-money laundering and digital regulation. Moreover, in the wake of the Credit
Suisse rescue, we advocate for targeted and balanced amendments to the too-big-to-fail (TBTF) framework to address
the lessons learned from the recent crisis. We also actively engage in discussions relating to corporate responsibility and
sustainability. Sustainability and sustainable finance continue to remain key focus topics in our interactions with our
financial regulators and supervisors. These are subject to ongoing oversight and control by the second and third lines of
defense.
In recognition of the vital function of Switzerland’s political parties, UBS provided a total of CHF 1.2m1 to political parties
in both 2023 and 2024 as a contribution toward their operational costs. These financial contributions are direct and
calculated based on the number of parliamentary seats the respective party holds at the federal and cantonal level. Swiss
parties are eligible to apply for a financial contribution if they commit to free competition, the market economy and the
Swiss financial center. They should also have a national focus and either form a parliamentary group in the federal
parliament or be represented in at least one cantonal government.

1 Beyond the above there were no additional contributions, including in-kind.

Sustainability Report 2024 | General information 10

Society
We regularly interact with various stakeholders across broader society. This supports our efforts to consider views and
insights from a range of backgrounds and further enhances the experience UBS provides both inside and outside the
firm. This includes UBS’s ambition to maximize its impact in local communities in which it operates by providing financial
and human support through strategic grant making and employee volunteering. Our partnerships in academia further
contribute to our efforts to engage with thought leaders in universities and other academic institutions.
We also engage with NGOs and appreciate their input and insight, as they help us consider our approach to, and
understanding of, societal issues and concerns. NGOs have long established themselves as critical watchdogs of
companies, both scrutinizing and challenging how we address a broad range of environmental, social and human rights
concerns. In 2024, discussions with NGOs remained particularly focused on climate change, including the transition to a
low-carbon economy. Other topics discussed included sustainable finance, human rights and nature.
Meanwhile, our media teams maintain direct and long-term relationships with media representatives across all our
business regions and provide them with timely information on a wide range of global, regional and local topics. We also
actively engage in dialogue with analysts at ESG rating and research agencies, which helps us to evaluate our sustainability
performance and activities and provides a useful means for benchmarking. In 2024, we provided detailed information
about our sustainability performance to a range of agencies, either in response to questionnaires or via calls (with ESG
analysts) and our Sustainability Report regularly serves as a key source of information for these agencies.

Sustainability Report 2024 | General information 11

Assessment of the significance of environmental,
social and governance (ESG) topics to UBS
Assessing the significance of ESG topics helps us to ensure that our sustainability disclosures reflect our stakeholders’
expectations and concerns. It also informs our discussions as we evolve our approach to sustainability. Our approach is
grounded in recognizing the importance of engaging with subject matter experts and listening to key stakeholders to
inform and evolve our sustainability strategy.
Note: For 2024, we have used the results from the 2023 Global Reporting Initiative (GRI)-based assessment outlined
below, as no material changes to the assessment were identified. This assessment supports our interactions with our
stakeholders, including regulators, that would want to understand the relevance of ESG topics to our disclosures.

Methodology
Definitions
Our assessment methodology was focused on impact reporting for a multi-stakeholder audience. To assess our impact,
we leveraged the GRI Universal Standards 2021 revised definitions, customizing these for the following:
– The “impact” is the effect the organization has or could have on the economy, the environment and people, including
on their human rights, which in turn can indicate its contribution (negative or positive) to sustainable development.
Note: impacts can be actual or potential, negative or positive, short-term or long-term, intended or unintended, and
reversible or irreversible.
– The “topics” represent the organization’s most significant impacts on the economy, the environment and people,
including impacts on their human rights.
The degree of significance (“very high,” “high” or “medium”) was qualitatively assessed with the help of internal subject
matter experts. Their inputs considered the scale and scope of actual or potential impact (on the economy, the
environment or society), the likelihood and irremediability.
Process
Our process consolidated both past significant topics that remain relevant and newly identified topics. In 2023, we
refreshed our assessment, starting with a review of our organizational context (i.e. activities, business relationships,
sustainability context, stakeholders), before completing the three main process steps outlined below.
Step 1: Desk research Step 2: Stakeholder consultation Step 3: Final review

– We developed an initial list of topics and – We consulted internal subject matter experts, – We had the outcome of the assessment and
subtopics based on internal and external including those interacting with stakeholders final list of topics verified by senior
sources. directly, to add, refine and prioritize our self- management and reviewed for external
– Integrated impact of integration of Credit assessed list of significant topics. assurance purposes.
Suisse.

Organizational context
Before identifying our actual or potential impacts, we considered the sustainability context across our activities and
business relationships, including:
– our strategy;
– our sustainable finance products and services, business relationships and stakeholders; and
– new products or services (for the climate materiality assessment only, pertaining to risks and opportunities).
In this context, we identified which stakeholders and experts should inform the determination of our significant topics.
Internal subject matter experts were consulted via group discussions.

Sustainability Report 2024 | General information 12

Governance
Reviewed by the UBS Group Board of Directors’ Corporate Culture and Responsibility Committee (the CCRC), the
assessment process was managed by a group of employees who deal with stakeholder expectations and concerns in their
respective roles. Their regular engagement with clients, employees, investors, suppliers, regulators and governments,
communities, and civil society ensured that the views of these stakeholders were adequately considered. The assessment
team applied the following three principles to arrive at the outcome of the assessment:
– Completeness: the team reviews the long and short lists and their aggregation into a prioritized list.
– Accuracy: the team challenges the approach, provides access to relevant resources and helps to overcome hurdles
throughout the process.
– Relevance: the team reviews all decisions in terms of relevance for the stakeholders they represent.

Execution
Desk research – identifying impact
We conducted initial desk research to identify general areas where negative or positive impacts are mostly likely to be
present relative to our own activities, business relationships and stakeholders. During this scoping exercise, we
considered, in particular, the internal and external stakeholder sources listed below.
Internal sources External sources

– UBS climate risk materiality assessment – G7 Communiqué

– UBS climate-related opportunities materiality assessment – G20 Communiqué
– UBS’s 2022 GRI-based materiality topics list – WEF Global Risk Report
– ECOFACT’s Top 5 Trending Topics
– FINMA Risk Monitor
– Peers’ material topics disclosed
– ECB’s climate-related risks to financial stability May 2022
– PRI’s Strategic Plan 2021–2024

Stakeholder consultation
During the assessment process, we considered feedback from clients, investors, NGOs, media, policymakers and
employees via polls and open discussions. We also regularly gather feedback on emerging issues and the quality of our
reporting and impact from various sources, including other experts at our firm, stakeholder inquiries, questionnaires and
rating firms.

Outcome
The topics considered as significant for UBS fall into three impact categories: the economy, the environment and society.

Sustainability Report 2024 | General information 13

Significant ESG topics1, 2
Significant topics Related subtopics Description
and impact
category

– sustainable and impact investing As a global financial services firm, UBS has a role to play in mobilizing
– sustainable financing capital to support the transition to a more sustainable world and
Sustainable finance – blended finance prevent a negative impact. Our impact arises as a result of our business
– financial inclusion relationships and the financial services we provide, for example, in the
– transition finance way we partner with our clients to help them mobilize their capital
– natural capital and nature finance toward a more sustainable world and help protect our clients’ assets
– engagement and stewardship from the impacts of climate change and loss of biodiversity.
– ESG research

Regulatory – client protection: data confidentiality; Our firm operates in a highly regulated industry and compliance with
compliance transparency (clear terms and conditions of legal and regulatory requirements is a prerequisite for our license to
products); fair pricing schemes; easy-to- operate. Our impact arises as a result of how we comply with and
understand products and services navigate the ever-evolving regulatory and legal landscape to protect
– combating financial crime: anti-corruption and and serve the interests of all our stakeholders or mitigate negative
anti-money laundering; crime and manipulation impacts on them.
detection processes
– conduct: compliance with laws, rules, tax
authorities and regulations; integrity of the
financial system; our Code of Conduct and Ethics;
forward-looking engagement with risk topics and
risk prevention
– data confidentiality
– financial stability and resilience: going concern
leverage ratio (phase-in, %); CET1 capital ratio;
managing risk-weighted assets within an
increasingly stringent risk framework; clear
strategy
– legal and litigation risk
– responsible marketing

Climate and nature – our approach to environmental matters We understand that we have a responsibility to identify, manage or
– environment-related investments, financing and mitigate potential adverse impacts on the environment. Our impact
research arises from our own environmental footprint, which we aim to reduce
– sustainability and climate risk management with a focus on energy, water, paper, waste and travel.
– energy and resource efficiency, reduction of
emissions and resource consumption (energy,
paper, water)
– standards in product development, investments
and financing and for supply chain management
decisions

Client experience – delivering excellence Responding to clients’ expectations and delivering exceptional service
– best services and practices are essential for our long-term future performance. We aim to
– understanding clients and their needs differentiate our impact through our promise to deliver a client
experience that is personalized, relevant, on time and seamless.

Technology – technology as a differentiator We are making technology a differentiator for our clients and
– front-to-back digitization to deliver a seamless employees. It is our responsibility to balance the increasing demand for
client experience digitalization and our commitment to improve energy efficiency. We
– cyber risks, data security and protection also need to protect our clients and operations against the threat of
– digital culture and workspaces cyberattacks that could lead to negative impacts, such as financial and
– integrated digital product and service offering reputational damage.
– data management (incl. ESG data management
and governance)

Corporate – internal policies and guidelines To deliver the best for our clients and stakeholders, we hold ourselves
governance – governance structure to the highest standards and a well-defined strategy and business
– strategy model. Our impact arises in the way we sustain long-term business
– risk management success and contribute to sustainable growth. We make an impact on a
– board succession planning truly global scale by working with other thought leaders.
– transparency

Employees – corporate culture We cannot succeed without our employees. That is why we drive our
– hiring, developing and retaining talent culture and foster our employees’ continuous career development. An
– workforce inclusion, employment conditions and effective people management strategy helps us attract, develop and
opportunities retain talented individuals and ensures we take responsibility as an
– flexible work arrangements employer worldwide. Our impact arises in the way we offer a place
– employee support, including benefits, where people can unlock their full potential, and in the way we
occupational health and well-being support employee health and well-being.
– employee listening and engagement
– performance management process, along with
fair pay
– employee representation

Sustainability Report 2024 | General information 14

 Social impact and – client philanthropic investments We aspire to support a more inclusive society by building the impact
human rights – corporate community engagement, partnerships economy, by working with a wide range of stakeholders to help clients
and volunteering that wish to maximize their impact on the environment, health,
– deploying resources (including philanthropic education and child protection, while optimizing the contribution of
capital) to support and build an impact economy our firm to our local communities through employee volunteering and
– sustainability and climate risk management corporate philanthropy. To manage our supply chain’s impact, we
(including human rights) include ESG standards within our sourcing and procurement activities.
– standards in product development, investments
and financing and for supply chain management
decisions

Operational – cost and process efficiency Ensuring efficient and effective operations is fundamental to our ability
efficiency and – focus on core competencies to remain competitive, to invest for the future and to be resilient in the
effectiveness – flexibility to adapt to the changing regulatory and face of revenue volatility. Impact occurs within our business, which in
public policy environment turn affects how we serve our clients and support our employees.
– outsourcing / nearshoring / offshoring,
automation
– location strategy – product and execution
excellence
– business disruption and vulnerability; disruption of
the value chain

Economy Environment Society

1 This table is arranged in order of most to least significant impact, as the outcome of our internal assessments and pre-set threshold to determine which topics are significant.
2 Certain activities of UBS that pertain to the implementation of its sustainability and impact strategy are directly impacted by factors that UBS cannot influence directly or can only influence in part. These include
pertinent governmental actions (e.g. when it comes to the achievement of the Paris Agreement); the quality and availability of (standardized) data (e.g. in such areas as emissions); the development and enhancement
of required methodologies and methodological tools (e.g. on climate risk); the ongoing evolution of relevant definitions (e.g. sustainable finance); and the furthering of transparency (e.g. pertaining to company
disclosures of data).

Sustainability Report 2024 | General information 15

Governance
Our sustainability governance
The role of our supervisory bodies – the Board of Directors of UBS Group
The Board of Directors of the UBS Group (the BoD) has ultimate responsibility for the success of the Group and for
delivering sustainable shareholder value within a framework of prudent and effective controls. The BoD decides on the
Group’s strategy and the necessary financial and human resources, on the recommendation of the Group Chief Executive
Officer (the Group CEO), and also sets the Group’s values and standards to ensure its obligations to shareholders and
other stakeholders are met. The BoD oversees the overall direction, supervision and control of the Group and its
management. It also supervises compliance with applicable laws, rules and regulations. The Chairman of the BoD,
together with the Group CEO, takes responsibility for UBS’s reputation and is closely involved in, and responsible for,
ensuring effective communication with shareholders and stakeholders, including government officials, regulators and
public organizations.
As of 31 December 2024, the UBS Group BoD consisted of 12 non-executive members and the Group Executive Board
(the GEB) consisted of 15 executive members (2023: 12 and 16 respectively). All non-executive members are also elected
as members of the UBS AG BoD. Except for the President of UBS Switzerland AG, all GEB members are executive members
of UBS AG.
As of 31 December 2024, the UBS AG BoD consisted of 12 non-executive members and the Executive Board consisted
of 14 executive members. The number of members is unchanged from 2023.
26.7% (2023: 37.5%) of members of the UBS Group GEB and 41.7% (2023: 33.3%) of members of the BoD were
women, while for UBS AG women made up 21.4% of members of the Executive Board and 41.7% of members of the
BoD.
› Refer to the “Corporate Governance” section of the UBS Group Annual Report 2024, available under “Annual reporting” at
ubs.com/investors, for more information
The BoD’s role on ESG topics
Five committees support the BoD in fulfilling its duty through the respective responsibilities and authority given to them.
All BoD committees have specific responsibilities pertaining to ESG (environmental, social and governance) matters. For
example, the Risk Committee supervises the integration of ESG in risk management, the Governance and Nominating
Committee supports the BoD in establishing best practices in corporate governance, the Compensation Committee is
responsible for financial and non-financial compensation topics, and the Audit Committee has oversight of the control
framework underpinning ESG metrics.
› Refer to the “Supplement to Governance” section of the Supplement to the UBS Group Sustainability Report 2024, available at
ubs.com/sustainability-reporting, for more information
The BoD’s Corporate Culture and Responsibility Committee (the CCRC) is the supervisory body primarily responsible for
corporate culture and sustainability. It is chaired by the Chairman of the UBS Group, with four BoD members as committee
members. Permanent guests include the Group CEO, the Group Chief Risk Officer (the GCRO), the GEB Lead for
Sustainability and Impact (S&I), the Chief Sustainability Officer (the CSO) and the Group General Counsel. The CCRC
oversees our Group-wide sustainability and impact strategy and key activities across environmental and social topics.
These include climate, nature and human rights. Annually, it considers and approves the firm’s sustainability and impact
objectives. As part of this process, it also considers the impact and financial materiality of climate- and sustainability-
related risks and opportunities on UBS.
The CCRC’s function is forward-looking in that it monitors and reviews societal trends and transformational developments
and assesses their potential relevance for the Group. In undertaking this assessment, it reviews stakeholder concerns and
expectations pertaining to the societal performance of UBS and the development of its corporate culture. UBS has various
mechanisms (including complaint and feedback procedures) in place to ensure that such concerns and expectations are
received, managed and, where necessary, brought to the attention of the GEB and the BoD. The CCRC is also responsible
for conducting the annual review process for the Code of Conduct and Ethics (the Code) and for proposing amendments
to the BoD. This process includes a prior review of the Code by the GEB and is led by the Group CEO.

The role of our supervisory and administrative bodies

The GEB develops the Group strategy and is responsible for managing our assets and liabilities in line with that strategy
and our regulatory commitments, and in the interests of our stakeholders. As determined by the BoD’s Risk Committee,
the GEB manages the risk profile of the Group as a whole and has overall responsibility for establishing and implementing
risk management and control. For the management of risks, UBS maintains a risk governance framework. This framework
also governs ESG risks.

Sustainability Report 2024 | Governance 16

Audited Risk governance

Board of Directors
Risk Audit Corporate Culture and Governance and Compensation
Committee Committee Responsibility Committee Nominating Committee Committee

Group Internal Audit (third line of defense)

Group Executive Board (acting as risk council)

Group CEO

First line of Second line of defense (Group functions¹ – control functions)

defense
(business and Group Risk Group Group Group Group Human
Control Compliance, Finance Legal Resources
Risk and asset and liability committees

Group functions
management) Regulatory and and Group
Governance Corporate
(GCRG) Services

Divisional, Group CRO Group Chief Group CFO Group Head Group
regional and legal Compliance and General Human
entity Presidents Governance Counsel Resources &
Officer Group Corporate
Group function Services
heads

Group Integration Central Risk Central GCRG Central Finance Central Legal Human
Office / Group functions functions functions functions Resources
Sustainability and functions
Impact / Group
Operations and Global Market
Technology Office² / Risk CRO /
Group Treasury³ Treasury CRO

1 Our Group functions are support and control functions that provide services for the business divisions and include the following major areas: Group Services (which
consists of the Group Operations and Technology Office (GOTO), Corporate Services, Compliance, Regulatory and Governance, Finance, Risk Control, Human
Resources, Communications & Branding, Legal, the Group Integration Office, Group Sustainability and Impact, and Chief Strategy Office) and Group Treasury.
2 Including the Cyber Information Security Office. 3 Group Treasury reports to the Group CFO. ▲

Our risk governance framework operates along three lines of defense. Our first line of defense, business management,
owns its risks and is accountable for maintaining effective processes and systems to manage them in compliance with
applicable laws, rules and regulations, as well as internal standards, including identifying control weaknesses and
inadequate processes.
Our second line of defense, control functions, is separate from the business. Control functions provide independent
oversight, challenge financial and non-financial risks arising from the firm’s business activities and establish independent
frameworks for risk assessment, measurement, aggregation, control and reporting, protecting against non-compliance
with applicable laws, rules and regulations.
Our third line of defense, Group Internal Audit (GIA), reports to the Chairman of the BoD and to the Audit Committee.
This function assesses the design and operating effectiveness and sustainability of processes to define risk appetite,
governance, risk management, internal controls, remediation activities and processes to comply with legal and regulatory
requirements and internal governance standards.
› Refer to the “Non-financial risk framework” section of the UBS Group Annual Report 2024, available under “Annual reporting” at
ubs.com/investors, for information about our approach to managing non-financial risks
Ensuring (availability of) appropriate skills and expertise
The BoD and the GEB are well diversified and composed of members with a broad spectrum of skills, educational
backgrounds, experience and expertise from a range of sectors that reflect the nature and scope of the firm’s business.
The Governance and Nominating Committee maintains a competencies and experience matrix to identify gaps in the
competencies and experiences considered most relevant to the BoD, taking into consideration the firm’s business
exposure, risk profile, strategy and geographic reach. In recent years, the composition of the BoD has been systematically
shaped in response to the identified requirements. We consider the continuous education of our BoD and GEB members
to be an important priority and support their participation in various training sessions. In addition to a comprehensive
induction program for new BoD members, continuous training and topical deep dives are part of the BoD and GEB
agenda.

Sustainability Report 2024 | Governance 17

Our sustainability governance
Our sustainability and corporate culture activities are grounded in our Principles and Behaviors and overseen at the highest
level of our organization. Our Code covers our commitment to acting with the long term in mind and creating value for
clients, employees, communities and investors. This includes our commitment to protecting the environment and fulfilling
our compliance obligations.
UBS Group AG sustainability governance

Board of Directors

Corporate Culture Governance

Compensation
Audit Committee and Responsibility and Nominating Risk Committee
Committee
Committee Committee

Group Executive Board

(GEB Lead for Sustainability and Impact)

GSI Business Development and Client Forum (GSI BDCF)

GSI Execution Forum (GSI EF)

Global Wealth Personal & Asset Investment Non-core &

Group functions
Management Corporate Banking Management Bank Legacy

Integration of Credit Suisse

In 2024, we advanced with integrating Credit Suisse sustainability activities. It is our aim to complete integration in
accordance with the overall UBS Group integration efforts and timeline.
› Refer to “Appendix 1 – Governance” section to this report for more information about active and retired sustainability
governance for Credit Suisse

Group Sustainability and Impact (GSI)

GSI develops the Group’s sustainability and impact (S&I) strategy and oversees the strategy’s implementation by the
business divisions and Group functions responsible for execution. GSI operates as a Group function under the leadership
of the GEB Lead for S&I. Each of the senior managers listed below reports directly to the GEB Lead for S&I. Specifically,
the senior manager roles directly reporting to the GEB Lead for S&I are the Chief Sustainability Officer, the Head of Social
Impact and Philanthropy and the GSI Chief Operating Officer. Senior managers may hold more than one role and, where
required, may have additional responsibilities and reporting lines in the Group’s legal entities.
GEB Lead for Sustainability and Impact
The GEB Lead for S&I has overall responsibility for the management and control of the GSI function. In particular, the
GEB Lead for S&I is responsible for the oversight of matters, such as maintaining an appropriate and adequate functional
organization designed to ensure compliance with applicable laws and regulations. Additionally, where necessary, the
GEB Lead for S&I represents UBS in interactions with regulatory authorities on Group-wide sustainability- and impact-
related topics in close coordination with the Group CEO, other GEB members and Governmental and Regulatory Affairs.
In relation to disclosures, the annual UBS sustainability reporting and disclosure process is managed by the GEB Lead
jointly with Group Finance.
› Refer to the “Supplement to Governance“ section of the Supplement to the UBS Group Sustainability Report 2024, available at
ubs.com/sustainability-reporting, for an explanation and depiction of the sustainability governance at the UBS Group, including
the main bodies involved in this governance

Chief Sustainability Officer

The Chief Sustainability Officer (CSO), jointly with the Head of Social Impact and Philanthropy (SIP), supports the GEB
Lead for S&I in setting the Group-wide S&I strategy, in alignment with the business divisions and Group functions. The
CSO and team develop and maintain frameworks and methodologies to drive Group-wide consistency. In addition, the
CSO team monitors new GSI regulatory consultations and owns and drives Group advocacy efforts, in partnership with
the GSI Chief Operating Officer (GSI COO) and GSI-aligned Group functions. The CSO maintains and annually reviews
our S&I commitments, memberships or contracts at Group, divisional, functional or regional level for completeness and
alignment with the Group-wide S&I strategy.

Sustainability Report 2024 | Governance 18

Head of Social Impact and Philanthropy
The Head of SIP and team oversee the UBS charitable entities, including Optimus Foundation entities and donor-advised
fund entities. Their remit includes overseeing the strategy, corporate structure and governance, financial matters and
relevant risks and controls. The SIP team reviews inherent reputational risks relating to social impact grants and escalates
high reputational risks to the GEB Lead for S&I, in line with the UBS Reputational Risk Management Policy. They also
manage the SIP client and employee offering through the delivery of philanthropic insights, advice and execution services
to existing and prospective clients.
GSI Chief Operating Officer
The GSI Chief Operating Officer (GSI COO) and team manage the end-to-end processes and the service delivery, operating
and control environment of GSI, together with business divisions and Group functions, ensuring timely escalation of
relevant matters impacting GSI and effective oversight of operational performance. Furthermore, they support the GEB
Lead for S&I in developing Group-wide S&I objectives, in alignment with business divisions and Group functions, to
implement the Group-wide S&I strategy and monitor the progress against these objectives. In addition, the team manages
the annual UBS sustainability reporting process, jointly with Group Finance.
Oversight of objective-setting and monitoring processes
UBS runs an annual objective-setting process for objectives related to sustainability and impact matters, which includes
environmental (including climate-related) and social topics. As delegated to the GEB Lead for S&I by the Group Chief
Executive Officer (the Group CEO), the GEB Lead for S&I is responsible for setting the Group-wide S&I strategy and
developing Group-wide S&I objectives in alignment with business divisions and Group functions. The annual strategy
review and objective-setting process is done to identify priorities and strategic focus areas across the Group. Progress
made in implementing Group-wide S&I objectives is reported as part of UBS’s annual sustainability disclosure.
Swiss law requires Swiss companies to achieve net-zero greenhouse emissions in their own operations by 2050. This
requirement is integrated into the firm's methodologies and approaches. Adherence to these requirements is primarily
driven by three GEB members: the GEB Lead for S&I, along with risk teams led by the Group Chief Risk Officer, and
compliance teams under the Chief Compliance and Governance Officer, and is considered in the annual GEB performance
assessments. UBS considers the performance assessments in determining the performance award decisions. However,
there is no direct link between senior management compensation and specific climate goals. In line with Swiss law, and
as set out in this report, UBS has announced a climate plan to achieve net zero by 2035 across its own operations (scope
1 and 2), well ahead of the 2050 deadline.
› Refer to the “Supplement to Governance” section of the Supplement to the UBS Group Sustainability Report 2024, available at
ubs.com/sustainability-reporting, for additional information about our sustainability governance
In 2024, to further support our evolved S&I strategy, we revised our GSI governance structure and internal forums, which
now comprise the GSI Business Development & Client Forum (the GSI BDCF) and the GSI Execution Forum (the GSI EF).
GSI Business Development & Client Forum
The GSI BDCF is established under the authority of the GEB Lead for S&I. The forum is focused on client, product and
impact approaches in relation to the overall UBS S&I implementation activities, together with the business divisions. The
GSI BDCF is the most senior administrative body overseeing the Group-wide S&I activities.
GSI Execution Forum
The GSI Execution Forum reports to the GSI BDCF and is established under the authority of the GSI COO to help discharge
their role and responsibilities. The forum is responsible for the oversight of the front-to-back operating environment and
for the implementation of the Group-wide S&I strategy through Group-wide strategic objectives and outcomes.

Other senior management roles with Group-wide sustainability responsibilities

Chief Risk Officer Sustainability
Our management of sustainability and climate risk is steered at the GEB level. Reporting to the Group CEO, the Group
Chief Risk Officer is responsible for developing and implementing control principles and an appropriate independent
control framework for sustainability and climate risk within UBS, together with integrating it into the firm’s overall risk
management and risk appetite frameworks. The Chief Risk Officer Sustainability supports the GEB by providing leadership
on sustainability risk in collaboration with business divisions and Group functions.
GSI Chief Financial Officer
The GSI Chief Financial Officer (the GSI CFO) is the primary lead on sustainability topics for the Group Chief Financial
Officer (the GCFO), working closely with the Group Controller and the GEB Lead for S&I. The GSI CFO oversees the
external sustainability disclosures and associated requirements in partnership with Group Legal, Group Compliance,
Regulatory and Governance, Group Risk and GSI. The GSI CFO additionally ensures that UBS operates an effective control
environment, underpinning our sustainability disclosures and reporting processes.

Sustainability Report 2024 | Governance 19

Head of Group Compliance, Regulatory & Governance (GCRG) Sustainability
The Head of GCRG Sustainability is responsible for the integration of ESG requirements into the UBS non-financial risk
framework and non-financial risk appetite objectives in line with firm-wide standards as part of the broader GCRG
mandate. GCRG is responsible for developing the Group’s risk management and control framework for non-financial
risks (compliance risk, operational risk control and financial crime prevention). The GCRG function provides ongoing
monitoring of the adequacy of our control environment for these risks and drives the review and, where necessary, the
required adaptations to our internal frameworks to ensure that our independent control and oversight capabilities evolve
in line with emerging regulations and changes across business activities.
Head of Sustainable Finance Legal
The Head of Sustainable Finance Legal is responsible for the ongoing delivery of legal advice to the CSO, business divisions
and Group functions in relation to sustainability matters. The Sustainable Finance Legal (SFL) team acts as a center of
excellence fully dedicated to sustainability-related legal risks and opportunities. This includes, but is not limited to, the
interpretation of and provision of support for the implementation of sustainability-related laws and regulations in the EU,
the UK, Switzerland and Asia Pacific, and regional and global international standards applicable, in particular, to
sustainable products, services and activities. In addition, SFL monitors the regulatory developments in the space of
greenwashing along with sustainability-related disputes (including regulatory enforcement actions), human rights and
environmental due diligence regimes across the globe.

Key sustainability topics

Climate program
The climate program coordinates the implementation and execution of our ambition to support our clients in the
transition to a low-carbon world and embed considerations of climate change risks and opportunities in our firm for the
benefit of our stakeholders. It does so in line with UBS’s fiduciary responsibilities and includes members from the business
divisions and Group functions. As part of the program, our in-house environmental management is steered by Group
Real Estate and Supply Chain (GRESC).
› Refer to the “Assurance and certification” section of the Supplement to the UBS Group Sustainability Report 2024, available at
ubs.com/sustainability-reporting, for information about our application of the environmental management standard ISO 14001

Other key sustainability topics

Human rights
As our Human Rights Statement articulates, the governance outlined above also applies to our commitment to respecting
internationally recognized human rights across UBS globally.
› Refer to our Human Rights Statement, available at ubs.com/sustainability-reporting, for more information

Sustainability Report 2024 | Governance 20

Business conduct and corporate culture
In our Code of Conduct and Ethics (the Code), the Board of Directors (the BoD) and the Group Executive Board (the GEB)
set out the principles and practices that define our ethical standards and the way we do business, which apply to all
aspects of our business. The Corporate Culture and Responsibility Committee (the CCRC) of the BoD is also responsible
for conducting the annual review process for the Code and for proposing amendments to the BoD. This review process
includes a prior review of the Code by the GEB and is led by the Group CEO. In undertaking this assessment, it reviews
stakeholder concerns and expectations pertaining to the societal performance of UBS and to the development of UBS’s
corporate culture.
› Refer to the Code of Conduct and Ethics of UBS, available at ubs.com/code, for more information

Principles for identifying, preventing, escalating and managing conduct risks are established in the Group-wide Conduct
Risk Management Framework. These principles are aligned to the Code and the Group-wide escalation framework and
include:
– our strategy and business model, along with our incentives and rewards, which are designed to actively manage
conduct risk. Above all, our culture and our Principles and Behaviors are the strongest mitigant to our exposure to
conduct risk;
– a review of relevant management information, which is critical to giving a view of the risk landscape and where risks
may be crystallizing;
– policy, appetite and governance, which are key components of our conduct risk framework and contribute to its
sustainability.
Identifying actual or potential conduct risks is the responsibility of every UBS employee, who must take appropriate steps
to identify and escalate any actual or potential conduct risks they may see in their day-to-day-activities and have a duty
to lead by example, role model UBS’s Behaviors and support our risk culture of “see something, say something.”
Ongoing monitoring ensures the firm’s activities and those of employees are monitored to detect issues with a potential
impact on clients and markets and to detect individual cases of employee misconduct.
We are committed to incentivizing the right behavior by establishing reward principles and internal control frameworks
to support adherence to internal and external standards, laws, rules and regulations.
Violations, whether it is of our Code, UBS policies or external laws, rules or regulations, may result in a disciplinary action,
up to and including dismissal. Furthermore, employees’ conduct is taken into account in year-end performance and
reward decisions.
We have a global mandatory training module, Conduct and Culture, that educates all UBS employees on adherence to
the three keys to success, understanding the Code, identifying conduct risk and how it can arise from within any part of
the organization, and culture and ethics.
Additionally, all employees must affirm annually that they have read and will adhere to the Code and other key policies,
supporting a culture where ethical and responsible behavior is part of our everyday operations. By following and affirming
the Code, we foster a culture where responsible behavior is ingrained in a way that protects our clients, our people and
our reputation and ensures stability and sustainable performance. This safeguards our ability to create lasting value for
our shareholders, clients and societies.
Significant matters requiring immediate senior management awareness and action are managed in accordance with our
Group-wide escalation framework, which lays out: (i) minimum requirements for escalations; (ii) applicable escalation
paths for distinct governance dimensions; and (iii) the interplay between governance dimensions. The framework is
complemented by relevant divisional / functional / legal entity / local annexes detailing specific escalation requirements,
which outline taxonomies, thresholds, processes and protocols. The framework does not replace day-to-day information
exchange, decision-making mechanisms or regular reporting. As such, the escalation framework does not replace existing
governance, line management, any of the existing monitoring / reporting requirements or regular risk assessments that
may result in the need to report and follow up.
The firm has a global Whistleblowing Protection for Employees Policy and framework, with established internal
whistleblower reporting channels, including hotlines and an online platform, where the whistleblower can remain
anonymous if preferred.
All employees are required to complete mandatory Speak Up training every two years, with new joiners required to
complete it upon onboarding. This training aligns with the Whistleblowing Protection for Employees Policy, raising
awareness of available reporting channels. Throughout the year, there are activities such as communication from the GEB,
newsletters, whistleblowing campaigns and regular employee surveys, aimed at encouraging employees to speak up and
raise awareness with regard to the various whistleblower reporting channels that can be used to raise concerns.

Sustainability Report 2024 | Governance 21

For staff receiving whistleblowing reports, there are procedures and guidance on handling such reports to ensure each
whistleblowing concern is taken seriously and investigated. Whistleblowing reports made through the dedicated
whistleblowing channels (hotlines and online platform) are received and appropriately triaged by the relevant Regional
Head of Investigations and their delegates (selected investigators in their team), who are trained on how to handle such
whistleblowing reports.
There are controls and processes in place to check for potential retaliation against known whistleblowers. For example,
if a whistleblower is potentially at risk of redundancy, this individual is flagged to the Investigations Operating Group to
assess whether the redundancy decision is made independently of the whistleblowing.
Our framework and Group Investigations Policy define clear roles and responsibilities, including reporting requirements,
for ensuring accurate and complete quarterly reporting to the BoD and the GEB, as well as to regulators.
Our Group Investigations function is responsible for delivering and overseeing all investigations, including incidents of
corruption and bribery. These must be conducted and governed in a way that ensures the investigations are independent,
objective and reliable as defined in our Group Investigations Policy, which governs the conduct of all investigations,
including whistleblowing investigations. Roles and responsibilities in the overall Group Investigations framework are
defined at two levels: (i) cross-functional governance bodies that have responsibilities across the investigations portfolio;
and (ii) prescribed roles and responsibilities over certain individual investigations.
Policy effectiveness is assessed through our non-financial risk framework. All policies are accompanied by controls that
are designed to prevent non-financial risks from materializing, ensuring UBS operates within its risk appetite. These
controls are regularly evaluated for both design and operational effectiveness. Should the firm operate beyond its risk
appetite or if a non-financial risk event occurs, corrective actions are taken to return to within the defined appetite. This
may involve remediating deficient controls, adjusting risk tolerance, modifying the firm’s risk profile or accepting the risk.
Independent assurance processes are in place to promptly identify and address heightened non-financial risks.
Non-financial risks are regularly reported to the GEB and the BoD. The BoD oversees UBS’s risk management and culture,
approving the risk management and control framework of the Group. The GEB, acting as the risk council, holds overall
responsibility for establishing and supervising the implementation of risk management and control principles, and for
managing the Group’s risk profile as determined by the BoD and the Risk Committee. Monthly reports summarize relevant
changes to the firm’s risk profile and the Annual Non-Financial Risk Report highlights the identified key risk themes and
activities undertaken to manage related exposures.

Sustainability Report 2024 | Governance 22

Combating financial crime
The GEB oversees our efforts to combat money laundering, corruption and terrorist financing. Our first line of defense
owns the anti-money-laundering (AML) and terrorist-financing risk front to back for its respective clients and their
activities and has the primary responsibility for managing that risk. Dedicated staff in our second line of defense support
the organization in developing, maintaining and implementing Group financial crime programs, including control and
oversight. Our third line of defense is the reinforcement component led by Group Internal Audit and independently
evaluates the financial crime control frameworks.
UBS complies with applicable laws and regulations and is committed to meeting industry standards regarding the effective
prevention of money laundering and financing of terrorism. We take comprehensive measures to prevent and detect
non-compliance with laws and regulations and do not tolerate or facilitate criminal activity or breaches of the letter or
spirit of applicable laws, regulations, rules and policies designed to prevent such activities.
We do not engage in business activities that present unacceptably high levels of money laundering, fraud, sanctions or
corruption risk. Additionally, we do not engage in activities that pose risks that cannot be effectively managed by the
existing control environment. Although it is not possible to eliminate such residual risk entirely, we have appropriate
policies, procedures, controls and processes in place to manage the relevant risks.
We assess the money laundering, fraud, sanctions and bribery and corruption risks associated with all of our business
operations annually against our control framework and take action, where appropriate, to further mitigate these risks.

Public-private partnerships
We are a founding member of the Wolfsberg Group, an association of global banks that aims to develop standards for
the financial services sector to prevent financial crimes, such as money laundering, fraud, corruption and terrorist
financing, and to develop industry standards for know-your-client (KYC) due diligence and ongoing transaction
monitoring.
The Wolfsberg Group brings together banks from around the world at its annual forum and regional outreach meetings
focused on financial crime topics. It also delivers an annual academy to support the development of junior Financial Crime
Prevention (FCP) officers and works on guidance papers in related key areas of financial crime. UBS is actively involved
with this group.
We are a member of various public-private partnerships operating globally that have been set up to foster closer working
relationships between financial institutions and law enforcement, most notably the Joint Money Laundering Intelligence
Taskforce operations group in the UK, which has worked on a number of human trafficking and modern slavery cases.

Prevention and detection of corruption and bribery

Our Group Policy Against Bribery & Corruption (ABC Policy) is consistent with the principles of the United Nations
Convention against Corruption. Our policy sets out a zero-tolerance approach to bribery and corruption; UBS is
committed to detecting and preventing bribery and corruption and requires employees and associated persons to do
business in a fair and transparent manner, in compliance with the principles of the policy.
Every employee is responsible for the following:
– compliance with the UBS Group’s zero-tolerance approach to bribery and corruption and the requirements set forth
in the policy and related procedures;
– taking reasonable steps to detect and prevent bribery;
– maintaining accurate books and records to fairly reflect employees’ expenditure;
– reporting cases of concern or doubt to Financial Crime Prevention Anti-Bribery and Corruption (FCP ABC) or based on
the Group’s Whistleblowing Protection for Employees Policy.
Delegated by the Global Head Financial Crime Prevention to Anti-Bribery and Corruption (ABC) Taxonomy Owner, the
Global ABC Head, supported by the specialized teams, is responsible for establishing and maintaining an ABC framework
and incorporating the principles of the policy as minimum global standards. To this end, we have controls in place and
hold ourselves accountable for detecting, stopping and reporting bribery and corruption matters; we do not tolerate any
form of corruption or bribery, including facilitating payments, nor do we offer or accept improper gifts or payments.
The ABC framework comprises: policy, procedures, training and communications, risk assessments, controls across all key
risks areas, investigations and incident management, and monitoring and assurance (including independent audit). The
framework aligns with globally recognized standards and laws, rules and regulations designed to prevent and mitigate
bribery and corruption risks across all jurisdictions in which we operate (e.g. UK and US legal and regulatory requirements
for ABC frameworks, including the UK Bribery Act and the US Foreign Corrupt Practices Act). There is a global team of
dedicated anti-bribery and corruption officers responsible for setting and maintaining the framework standards. The
board and senior management set out the ABC policies and risk appetite, and all employees are accountable for
compliance. The ABC framework includes controls across all key risk areas: employees, third parties (vendors and
intermediaries), charitable and political donations and sponsorships, hiring, gifts and business entertainment, deals,
mergers and acquisitions, and client-related ABC risk. There is regular control testing to ensure that the program and
controls are appropriately designed, operationally effective and adhered to in line with policy requirements.

Sustainability Report 2024 | Governance 23

Where corruption or bribery incidents arise, these are identified through controls monitoring, self-declaration or reporting
(e.g. through the whistleblowing mechanism) or through ongoing due diligence or risk assessments. Each incident is
assessed for severity and impact, with senior management involved for the more serious incidents. Incidents that are
breaches of the Group’s policies, including the ABC Policy, are dealt with in line with the Employee Incidents Policy and
framework and may result in disciplinary action, including dismissal, in serious cases.
The ABC risk appetite of the UBS Group (including business division appetite and significant Group entity appetite) is
defined within the Anti-Bribery and Corruption Risk Appetite Statement (RAS), which is governed by the Non-Financial
Risk Framework Policy and aims to define the risk appetite of the firm in relation to bribery and corruption risks. The ABC
RAS is subject to annual approval and review by the Board of Directors (the BoD).
Inherent risks for bribery and corruption within the organization are not dissimilar to those faced by other multinationals;
specifically, third-party risk, employee insider threat risk and client risk. The organization has a robust framework in place
to monitor and mitigate the risk of bribery or corruption arising through such inherent risk sources across all levels of the
organization. Specifically, the framework includes controls coverage of functions where such inherent risk is more likely
to arise, such as those functions and teams that actively engage with clients and third parties and those involved in
employee hiring (i.e. business first-line teams and third-party and employee management functions). Additionally, the
framework and policy are applicable to all employees, including executive- and board-level management.
The Group Investigations team, including investigators and the investigations committee, are independent, with a
separate reporting line to the ABC framework and team management. This allows for fair and independent investigation
of both internal or external concerns relating to bribery or corruption.
The effectiveness of the ABC framework, including incident management reporting, is subject to frequent and regular
updates at both first- and second-line management forums, including up to the BoD. The reporting includes provision of
qualitative and quantitative risk indicators, covering both inherent and control risk. When a threshold is exceeded, this
may indicate an increased risk of bribery and corruption. Assessment of these risk indicators on a regular basis prompts
the identification of excess(es) of the thresholds under the program’s risk appetite assessments, which will trigger a review
of whether (further) action is deemed necessary at a divisional / entity and / or Group level to avoid undue risk, thereby
focusing on staying within the overall ABC risk appetite.
The ABC Policy is translated into multiple languages and is accessible to all employees through our internal policy
repository and relevant intranet ABC site. There is mandatory training for all employees on the policy requirements (see
details below for further information on training provision under the ABC framework). Furthermore, an annual
declaration and commitment to this policy is required from all UBS staff, including a statement of compliance with regard
to any past or current bribery- or corruption-related incidents.
In 2024, all employees of UBS, including its senior management and governance bodies, received adequate training on
financial crime prevention matters, which covers AML / KYC, sanctions, fraud and anti-corruption. All staff are required
to complete the Global Financial Crime Prevention refresher module on an annual basis. The frequency for each training
course is specified by the course owner (onetime, annual, bi-annual).
ABC training is mandatory for all UBS Group employees, including the GEB and the BoD, and is rolled out on an annual
basis. All new joiners are required to complete a more substantial training course within 30 days of joining, then all
employees are required to complete an annual refresher training course within 60 days of rollout (with a test score of
80% required to pass). The training covers the full ABC Policy and framework, including topics on risk identification,
assessment and escalation of bribery and corruption.
Additional targeted training is delivered online or in person to selected functions on specific financial crime risks
associated with the business lines or activities they are involved in, as needed.
Web-based training modules are regularly updated to address compliance issues, including financial crime standards, and
to incorporate learning from both internal and external events and geopolitical developments.
Onboarding and ongoing monitoring
UBS performs risk-based initial due diligence on all customers, which is designed to establish their identity and ownership,
the nature of their business activities, and the source(s) of their wealth and funds. This includes formal processes for
mitigating the risk of impersonation fraud in circumstances where we are not doing business on a face-to-face basis.
Where the client represents a potentially elevated risk according to the Group AML & KYC Policy, enhanced due diligence
is performed.
We do not establish or maintain relationships with parties when the KYC information cannot be sufficiently established
or where we have reason to believe the party has or intends to use UBS products or services for illicit activities. We do
not open accounts for relationships that do not meet our standards or that pose unacceptable financial crime or
reputational risks for the firm.
After a client onboarding is completed, ongoing due diligence and name screening are performed during the life cycle
of the client relationship. Clients are subjected to regular risk rating and client activities and transactions are subject to
AML transaction monitoring. In addition, ongoing periodic KYC reviews are conducted with varying frequency, driven by
the client risk rating.

Sustainability Report 2024 | Governance 24

Our Group AML & KYC Policy sets out the process and criteria relating to the identification, senior management sign-off,
periodic review and ongoing monitoring of clients deemed to be Politically Exposed Persons (PEPs), along with other
customers who have links with jurisdictions or industries that pose elevated levels of financial crime risk.
We apply KYC rules and use advanced technology to help identify suspicious transaction patterns and compliance risk
issues. We continue to invest in our detection capabilities and core systems as part of our FCP program. Red flags must
be referred to FCP if any UBS staff become aware of potentially suspicious activities during the client life cycle and this
may result in investigation, suspicious activity report filing and / or client exit, as appropriate. When a UBS employee is
suspected of or identified as acting or failing to act in accordance with applicable laws or regulations or in violation of
UBS policy, we escalate this to Group Investigations for further assessment under the Group Investigations Policy. Our
Group Investigations Policy defines clear roles and responsibilities, including reporting requirements, for ensuring accurate
and complete quarterly reporting to the BoD and the GEB, as well as to regulators.
We adhere to the global Financial Action Task Force standards and local laws and regulations with regard to record-
keeping.
Our entire financial crime framework is subject to regular controls testing, in both the first and second lines of defense,
which includes a cycle of regular peer review testing executed by a designated team within the Group’s FCP function.
Additionally, our Group Internal Audit team performs a rigorous cycle of independent audit reviews covering the financial
crime framework globally and cross-divisionally and we are subject to ongoing supervision by regulatory authorities in all
the markets in which we operate.
Conduct and culture
The Code sets out the principles and commitments that define our ethical standards and the way we do business. The
Code commits all UBS employees to do whatever we can to combat money laundering, fraud, corruption and terrorist
financing.
Additionally, the Code requires that UBS employees do not help or advise our clients, or any other party, to evade taxes
or misreport taxable income and gains. It also states that we should not contract with third parties who provide services
for UBS or on our behalf, where those services help others improperly evade taxes.
› Refer to the Code of Conduct and Ethics of UBS, available at ubs.com/code, for more information

Sustainability Report 2024 | Governance 25

Strategy
Our sustainability and impact strategy
We are guided by our ambition to be a leader in sustainability. This is reflected in our vision to be the bank for the next
generation. To help us realize that vision, our sustainability and impact strategy is based on three overarching strategic
pillars: Protect, Grow and Attract, representing a natural evolution in our strategic approach.
Sustainability and impact vision: the bank for the next generation

Protect Grow Attract

Manage our business in alignment with our Embed an innovative sustainability and impact Be the bank of choice for clients and employees.
sustainable, long-term Group strategy and offering across all our business divisions.
evolving standards.

Protect
As part of our continued commitment to protect our clients’ assets and those of our firm, we are focused on managing
our business by aligning to the sustainable long-term Group strategy and evolving standards. We maintain a strong
control and risk framework, as well as a robust sustainability data strategy, to support our risk management processes,
regulatory requirements and product offerings.
› Refer to the “Environment” section of this report for more information about our decarbonization approach and efforts
› Refer to the “Managing sustainability and climate risk” section of this report for more information about our sustainability and
climate risk management approach

Grow
We continue to expand our sustainability and impact offerings across all business divisions to meet our clients’ evolving
needs. For example, we identify and offer innovative sustainable financing and investment solutions, with the aim to
support our clients through the world’s transition to a low-carbon economy. To facilitate this, we established a dedicated
Group Sustainability and Impact (GSI) Business Development & Client Forum (the GSI BDCF) under the authority of the
Group Executive Board (the GEB) Lead for Sustainability and Impact, focused on client, product and impact approaches.
› Refer to the “Governance” section of this report for more information about the GSI BDCF
› Refer to the “Supporting Opportunities” section of this report for more information about our innovative sustainability and
impact offering

Attract
We aspire to be the bank of choice for clients and employees alike, maintaining top quartile sustainability ratings and
positioning UBS as the go-to employer through our engagement and education programs. In 2024, our MSCI AA rating
was reaffirmed1 and we increased our S&P Global Corporate Sustainability Assessment (CSA) score to 72,2 compared
with 69 in 2023.
› Refer to the “Social” section of this report for more information about UBS’s employees and its philanthropic activities

1 Source: MSCI ESG Ratings & Climate Search Tool, UBS Group AG ESG Rating 2024.
2 Source: S&P Global, UBS Group AG 2024 CSA Score as of March 2025, out of a maximum of 100.

Sustainability Report 2024 | Strategy 26

Our key aspirations and progress
We work with a long-term focus on providing appropriate returns to our stakeholders in a responsible manner.
We are committed to providing transparent aspirations, goals and targets and reporting on the progress made against
them. This table provides an overview, with more detailed information provided throughout this report.

Ambitions Topics Our aspirations, goals or targets Progress in 2024

1. Protect Climate Lending sector decarbonization targets have been established to Calculated progress against pathways for lending sector
address our financed emissions by aligning specified sectors to decarbonization targets.2
decarbonization pathways.1 Changes in emissions intensity associated with UBS in-scope lending
Reduce emissions intensity associated with UBS in-scope lending (end of 2023 vs 2021 baseline):
by 2030 from 2021 levels for: – Swiss residential real estate reduced 11%;
– Swiss residential real estate by 45%; – Swiss commercial real estate reduced 9%;
– Swiss commercial real estate by 48%; – power generation reduced 33%;
– power generation by 60%; – iron and steel reduced 20%; and
– iron and steel by 27%; and – cement reduced 3%.
– cement by 24%. Changes in absolute financed emissions associated with UBS in-scope
Reduce absolute financed emissions associated with UBS in-scope lending (end of 2023 vs 2021 baseline):
lending by 2030 from 2021 levels for: – fossil fuels reduced 80%.
– fossil fuels by 70%.
Reduce our scope 1 and 2 emissions to net zero by 2035 (90% Scope 1 and net scope 2 emissions reduced 35% vs 2023 baseline.
reduction of scope 1 and net scope 2 emissions by 2035 vs 2023
baseline, neutralizing the remaining 10% with high-quality carbon
removals).

Reduce our absolute energy consumption by 35% by 2030 vs Absolute energy consumption reduced 10% vs 2023 baseline.
2023 baseline.

Achieve 100% renewable electricity aligned to RE100 in markets Achieved 99.8% renewable electricity aligned to RE100.
where feasible by 2026.

Environment Paper: Use 100% recycled and Forest Stewardship Council (FSC) Reached 49.9% share of recycled and FSC paper in our operations in
paper for our operations by 2025. 2024.

Waste: Achieve 60% recycling ratio for our office waste by 2025. Achieved 52.9% recycling ratio in 2024.

Water: Reduce water consumption by 5% by 2025 vs 2019 Water consumption reduced 8% vs 2019 baseline.
baseline.
2. Grow Market Embed an innovative sustainability and impact offering across all Increased sustainable investing invested assets to USD 296bn (2023:
opportunities our business divisions. USD 282bn).3
Facilitated 96 green, social, sustainability or sustainability-linked
(GSSS) bond transactions globally against our target of 100 (2023:
102).4

The total on-balance sheet drawn exposure of sustainable loans

granted to corporate and institutional clients booked on the UBS
Switzerland AG platform amounted to USD 2.0bn as of end 2024
(excluding mortgages).5

Supporting our clients to achieve their sustainable investing goals: As of end 2024, 23.4% of Asset Management’s fund offering
20% of Asset Management’s fund offering globally will be consisted of sustainable-investing products.6
sustainable-investing products, providing choice for clients.

Sustainability Report 2024 | Strategy 27

 Ambitions Topics Our aspirations, goals or targets Progress 2024

Social Raise USD 1bn in donations to our client philanthropy foundations Achieved a UBS Optimus Foundation donation volume of USD 366m
impact and and funds (cumulative for 2021−2025). in 2024 (2023: USD 328m), totaling USD 1.1bn since 2021, thus
philanthropy surpassing our goal (all figures include UBS matching contributions).7

Reach 26.5 million beneficiaries by 2025 (cumulative for 2021– Reached 7.4 million beneficiaries in 2024 (2023: 7 million)8 and
2025). 25.9 million beneficiaries across our social impact activities since
2021.9
3. Attract Bank of Maintain top quartile position in key ESG ratings by the end of Achieved top quartile position vs direct peers as defined in UBS
choice 2026. compensation report in:
– MSCI: AA rating, “Leader” in industry group;
– S&P Global Corporate Sustainability Assessment: Score of 72.
Constituent of the Dow Jones Sustainability Indices (DJSI);
– CDP: A– rating. Included in the leadership band.
Cautionary note: We have developed methodologies that we use to set our climate-related targets and identify climate-related risks and that underly the metrics that are disclosed in this report. Standard-setting
organizations and regulators continue to provide new or revised guidance and standards, as well as new or enhanced regulatory requirements for climate disclosures. Our disclosed metrics are based upon data
available to us, including estimates and approximations where actual or specific data is not available. We intend to update our disclosures to comply with new guidance and regulatory requirements as they become
applicable to UBS. Such updates may result in revisions to our disclosed metrics, our methodologies and related disclosures, which may be substantial, as well as changes to the metrics we disclose.

1 Our climate transition plan does not cover all our business activities. We may add ambitions for additional scope 3 activities over time and on a best-efforts basis based on the availability of appropriate measurement
frameworks and data, and the materiality of the relevant activity to UBS. We will continue to publicly disclose our progress on an annual basis and, while we continue to take steps to align our in-scope business
activities with the ambitions set out above, it is important to note that progress toward our targets may not be linear. We regularly review our targets and update our disclosures in line with new or enhanced regulatory
developments, evolving best practices for the financial sector and climate science. Such reviews may lead us to revise previously agreed voluntary commitments, metrics and methodologies. Metrics are based on gross
lending exposure consisting of total on-balance sheet loans and advances to customers and off-balance sheet guarantees and irrevocable loan commitments. Refer to the “Basis of preparation” section of the
Supplement to the UBS Group Sustainability Report 2024, available at ubs.com/sustainability-reporting for more information about exclusions and parts of the value chain within sectors covered by metrics and targets.
2 Refer to the “Environment” section of this report for further information. The inherent one-year time lag between the as-of date of our lending exposure and the as-of date of emissions can be explained by two
factors: corporations disclose their emissions in annual reporting only a few months after the end of a financial year, and specialized third-party data providers take between 12 and 18 months to collect disclosed data
and make it available to data users. Consequently, the baselines for our decarbonization targets are calculated based on year-end 2021 lending exposure and 2020 emissions data. Our 2023 emissions actuals are
based on year-end 2023 lending exposure and 2022 emissions data. For asset financing (i.e. real estate) there is no time lag, and exposure and emissions actuals refer to the same year. 3 The figures do not include
invested assets classified under the Credit Suisse sustainable investment framework but include invested assets of Credit Suisse portfolios, which have been migrated onto UBS platforms and vetted against UBS’s
sustainable investing policies or merged with existing UBS sustainable investing portfolios. This process is being carried out in waves and will continue until at least the end of 2025. The 2023 figure has been restated.
For more information, see the “Supporting Opportunities” section of this report. 4 These metrics include transactions meeting the UBS Sustainable Finance Guideline, as described in the ”Sustainability and climate
risk policy framework“ section of the Supplement to this report, available at ubs.com/sustainability-reporting. 5 Loans booked on the Credit Suisse platform are not in scope of this metric. As Credit Suisse loans
migrate to the UBS infrastructure, a due diligence against the UBS Sustainable Product Guidelines framework will be performed. 6 Measured over a three-year rolling period. The scope includes UBS Asset Management
sponsored and managed traditional and alternative funds. Mandates, White Label, UBS Asset Management single investor and feeder funds are excluded. As of 2024, products managed by Credit Suisse Asset
Management that are categorized in accordance with the legacy Credit Suisse sustainable investing framework are within the scope of the total number of funds but not the total number of UBS Asset Management
sustainable investing funds. They will only be included once migrated onto UBS Asset Management product shelves, i.e. once corresponding data has been onboarded to UBS systems, they are fully meeting the
requirements of UBS’s Group Sustainable Investing Policy, and are classified as a UBS sustainable investing product. This process is being carried out in waves and will continue at least until the end of 2025. 7
Figures provided for the UBS Optimus Foundation are based on unaudited management accounts and information available as of January 2025. Audited financial statements for UBS Optimus Foundation entities are
produced and available per local market regulatory guideline. 8 Figures prior to 2024 exclude beneficiaries reached through Credit Suisse-led programs. 9 Some of the beneficiaries reached were due to activities
funded through mandatory contributions required in India and South Africa due to respective corporate social responsibility laws. The cumulative reported figure does not represent unique beneficiaries. Where the
same individual was enrolled in a program in the previous year, they are still counted in the following year as they are considered to have received different levels of support over the period.

Sustainability Report 2024 | Strategy 28

Environment
Our climate transition plan
We have drawn up a climate transition plan, including our overarching climate approach, along with specified key policies
and principles, targets and actions. This transition plan has been approved by the Corporate Culture and Responsibility
Committee (the CCRC) of the Board of Directors and is included in our annual objective-setting process for sustainability
and impact matters.
› Refer to the “Governance” section of this report for more information about our sustainability and climate governance and our
objective-setting process, and to “Key policies and principles” in the “Appendix 1 – Governance” section of this report for more
information about our sustainability- and climate-related key policies and principles

Our climate approach

Our climate approach is guided by our climate ambition and its underlying key objectives.
Our climate ambition
We will support our clients in the transition to a low-carbon world and embed considerations of climate change risks and
opportunities into our firm for the benefit of our stakeholders, now and in the future.
Our key objectives
Supporting our clients’ low-carbon transition
– Mobilizing capital toward an orderly transition to a low-carbon economy.
– Aligning our in-scope lending activities to the objectives of the Paris Agreement.
– Supporting the transition of our financing and investing clients to low-carbon and climate-resilient business models.
– Embedding climate considerations into our financing, investment and capital markets offering.
Reducing our climate impact
– Minimizing our own operational footprint and utilizing resources in an efficient and sustainable way.
– Measuring and managing our travel footprint, including reducing air-travel-related emissions.
– Interacting with our suppliers on emissions reductions and managing our supply chain responsibly.
Managing the risks of climate change to our business
– Identifying, measuring, monitoring, managing and reporting sustainability and climate risks.
– Applying our sustainability and climate risk policy framework.
– Further integrating sustainability and climate risk regulatory requirements into financial risk management and stress-
test frameworks.
– Ensuring that the sustainability and climate risk policy framework is integrated into our Group- and organization-wide
activities.
Our climate approach is aligned to our sustainability and impact strategy, which is based on three overarching strategic
pillars: protect, grow and attract. In relation to our climate approach, our strategic ambition manifests as:
– Protect our business by managing climate risks and supporting our clients’ low-carbon transition to protect their
assets.
– Grow our business by embedding an innovative UBS climate transition offering across all business divisions.
– Attract and be the bank of choice for clients and employees by being recognized as a leader in climate, and leading
by example in our own operations.
› Refer to the “Strategy” section of this report for more information about the sustainability and impact strategy

Sustainability Report 2024 | Environment 29

Our climate-related targets
By 2050, the global economy aims to transition to net zero. For example, across our own operations (scopes 1 and 2),
UBS plans to achieve net zero by 2035, well ahead of 2050.
We have defined the following targets:
Scopes 1 and 2: Reducing our scope 1 and 2 emissions to net zero by 2035.1
Scope 3: Addressing our financed emissions by aligning specified sectors to decarbonization pathways.2
In 2024, we have updated our climate targets to consider the following:
– alignment with upcoming regulatory requirements and market standards;
– a review of the combined organization, reflecting the current state of planning within the firm; and
– ongoing macro-developments in public policy and climate science projections across the sectors in which we operate.
Our climate-related targets have been set based on the methodologies, data and assumptions currently in use. Following
a review of our own operations target for scopes 1 and 2 (as disclosed in the UBS Group Sustainability Report 2023) for
the integrated organization, we have set a new 1.5°C-aligned scope 1 and 2 net-zero target to be achieved by 2035.
The target reflects our enlarged corporate real estate portfolio following the acquisition of the Credit Suisse Group and
considers the latest definition of a “net-zero target” in the Corporate Sustainability Reporting Directive (CSRD).3
We remain committed to our lending sector decarbonization targets to address our financed emissions in specified
sectors. All these targets are 1.5°C-aligned except for targets for Swiss residential real estate and Swiss commercial real
estate, which are aligned to a below-2°C scenario.4 In 2024, we also engaged EY to perform agreed upon procedures
on our lending sector decarbonization targets to assist us in determining whether these have been set in line with
reference scenarios mentioned and informed by certain requirements taken from pertinent global standards and
initiatives.
Our Asset Management business division is committed to supporting our clients in achieving their climate-related
investment goals. In the UBS Group Sustainability Report 2023, we referred to the target set by Asset Management
aiming, by 2030, to align 20% of UBS AG Asset Management’s total assets under management (AuM) with net zero.
Given the integration taking place within Asset Management, we are reviewing the legacy target set prior to the
acquisition of the Credit Suisse Group, taking into account all AuM of the combined businesses. Therefore, we have
withdrawn the target. We remain committed to supporting the Paris Agreement climate goals in line with global efforts.
We recorded USD 64.4bn of total assets as having a net-zero ambition at the end of 2024, compared with USD 35.5bn
at the end of 2023.
We regularly review our targets and update our disclosures in line with new or enhanced regulatory developments,
evolving best practices for the financial sector and climate science. Such reviews may lead us to revise previously agreed
voluntary commitments, metrics and methodologies.
Our climate transition plan does not cover all our business activities. We may add ambitions for additional scope 3
activities over time and on a best-efforts basis based on the availability of appropriate measurement frameworks and
data, and the materiality of the relevant activity to UBS. We will continue to publicly disclose our progress on an annual
basis and, while we continue to take steps to align our in-scope business activities with the ambitions set out above, it is
important to note that progress toward our targets may not be linear.
Our priority is to support our clients in the transition to a low-carbon world, including their transition-financing needs. In
the area of client investments, our ability to meet our ambitions depends on our obligations to our clients, including
fiduciary duties as an investment manager and on the terms of the mandates agreed with clients. We continue to embed
sustainability and climate considerations into our operating model, leading to regular adjustment of evaluation and
decision-making frameworks, governance structures, control and monitoring processes and underlying systems.
Our climate-related ambitions and targets have a critical dependency on the overall progress made by all sectors and
countries. Collaboration across the private and public sectors is required. The decarbonization of the global economy,
emissions reductions by clients and the realization of our own targets and ambitions all depend on various factors outside
our direct influence. Clear guidance from governments through thoughtful regulations, policies and incentives, the
development and scaling of key technologies and broader changes in the behavior of society are needed.

1 Refer to the “Reducing our own environmental impact” section of this report for details about our scope 1 and 2 net-zero target.
2 Refer to the ”Supporting our financing clients’ low-carbon transition” section of this report for details about our lending sector decarbonization targets.
3 Definition of a net-zero target by the CSRD: Setting a net-zero target at the level of an undertaking aligned with meeting societal climate goals means: (i) achieving a scale of value chain emissions reductions consistent
with the abatement required to reach global net zero in 1.5°C pathways; and (ii) neutralizing the impact of any residual emissions (after approximately 90–95% of GHG emission reduction with the possibility of justified
sectoral variations in line with a recognized sectoral pathway) by permanently removing an equivalent volume of CO2.
4 For Swiss real estate mortgage lending (commercial and residential real estate), our targets are using the percentage decarbonization rate implied by the Energy Perspectives 2050+ ZERO Basis scenario (below-2°C
scenario) as a minimum rate to be followed. This scenario is a representative, country-specific pathway, reflective of the government’s climate strategy. It also informs Switzerland’s decarbonization ambitions for real
estate as set out in the Swiss Climate and Innovation Act.

Sustainability Report 2024 | Environment 30

Our climate roadmap
Our climate roadmap – what we are aiming for

2006 Launched our first climate strategy, focused on our own emissions

2012 Expanded our climate strategy, to also include risk management, investments, financing and research

2017 Started applying TCFD recommendations to our climate disclosures

2020 /21 Commenced assessing and disclosing climate exposures in our in-scope investing and financing activities

2024 Advisory vote on the UBS Group AG Sustainability Report 2023 including our actions on climate passed by
shareholders at the Annual General Meeting (93.37%)

by 2030 Addressing our own emissions

– Reduce our scope 1 and net scope 2 emissions by 57% compared with our 2023 baseline
– Source 100% renewable electricity from qualifying generation by 2026 in line with RE100 technical
guidance, in markets where credible renewable electricity generation and tracking systems exist
– Reduce our absolute energy consumption by 35% compared with our 2023 baseline

Addressing the emissions of our in-scope lending activities

– Reduce emissions intensity associated with UBS in-scope lending from 2021 levels for:¹
– Swiss residential real estate by 45%
– Swiss commercial real estate by 48%
– power generation by 60%
– iron and steel by 27%
– cement by 24%
– Reduce absolute financed emissions associated with UBS in-scope lending from 2021 levels for:¹
– fossil fuels by 70%
– Continue disclosing in-scope ship finance portfolio according to Poseidon Principles (PP) trajectories
with the aim to align therewith²

by 2035 Addressing our own emissions

– Reduce our scope 1 and 2 emissions to net zero

by 2050 Supporting the global economy’s aim to transition to net zero

1 While we continue to take steps to align our in-scope business activities to our targets, it is important to note that progress toward our targets may not be
linear and that the realization of our own targets and ambitions is dependent on various factors that are outside our direct influence. We regularly review our
targets and update our disclosures in line with new or enhanced regulatory developments, evolving best practices for the financial sector and climate science.
Refer to the “Climate-related methodologies – decarbonization approach for our financing activities“ section of the Supplement to the UBS Group Sustainability
Report 2024, available at ubs.com/sustainability-reporting, for more information about parts of the value chain within sectors covered by metrics and targets.
Metrics are based on gross exposure, which includes total loans and advances to customers, guarantees and irrevocable loan commitments. Refer to the “Basis of
Preparation” section of the Supplement to the UBS Group Sustainability Report 2024, available at ubs.com/sustainability-reporting, for more information about
the exclusions from the scope of the analysis. 2 As part of our ship finance strategy, ships within the scope of the Poseidon Principles (PP) are assessed based
on criteria that aim at aligning the portfolio to the Poseidon Principles decarbonization trajectories. The PP are a framework for assessing and disclosing, on an
annual basis, the climate alignment of in-scope ship finance portfolios to the ambition of the International Maritime Organization (the IMO), including its 2023
Revised GHG Strategy for GHG emissions from international shipping to decrease to net zero by or around 2050 with interim targets in 2030 and 2040 on a
well-to-wake (WTW) basis (compared with 2008 levels).

Sustainability Report 2024 | Environment 31

Supporting our clients’ low-carbon transition
It is our priority to support our clients in the transition to a low-carbon world. To support this aim, we have defined a set
of targets and actions related to our financing and investing activities, which are outlined below.

Supporting our financing clients’ low-carbon transition

Our lending sector decarbonization targets
Lending sector decarbonization targets for 2030 have been established for Swiss real estate mortgages (residential and
commercial real estate) and for financing of in-scope activities in the fossil fuels (oil, gas and coal), power generation,
iron and steel and cement corporate sectors.
Our approach to target-setting is based on industry guidance and our calculation methodology is based on global
standards such as the GHG Protocol Corporate Accounting and Reporting Standard and the Partnership for Carbon
Accounting Financials (the PCAF).
Our 2030 targets were approved and are continued to be overseen by the CCRC, and are managed by the business
divisions in collaboration with Group Sustainability and Impact (GSI) and the Group functions under the leadership of the
Group Executive Board (GEB) Lead for Sustainability and Impact.
› Refer to the “Climate-related methodologies – decarbonization approach for our financing activities” section of the Supplement
to the UBS Group Sustainability Report 2024, available at ubs.com/sustainability-reporting, for more information about our
target-setting methodology and full financed emissions disclosures
› Refer to the “Basis of preparation” section of the Supplement to the UBS Group Sustainability Report 2024, available at
ubs.com/sustainability-reporting, for more information about our climate-related lending metrics

Sustainability Report 2024 | Environment 32

Overview of lending sector decarbonization targets and progress

Swiss residential real estate¹ Swiss commercial real estate¹ Fossil fuels³
kg CO2e / m² ERA² kg CO2e / m2 ERA² million metric tons CO2e

−45% (vs. 44% implied by scenario) −48% (vs. 48% implied by scenario) −70% (vs. 34% implied by scenario)
40 38.7 40 70 64.7
31.3
34.4
28.5
21.1 16.2

19.4
12.9
0 0.3 0 0.5 0 0
2021 2030 2050 2021 2030 2050 2021 2030 2050
UBS actuals (2021– 2023) UBS actuals (2021– 2023) UBS actuals (2021– 2023)
UBS target UBS target UBS target
2050 convergence point 2050 convergence point 2050 convergence point
Implied EP2050+ ZERO Basis – Implied EP2050+ ZERO Basis – Indicative trend line to 2030 target
residential buildings residential buildings & services
Indicative trend line to 2030 target Indicative trend line to 2030 target

Power generation4 Iron and steel4 Cement4

kg CO2e / MWh metric t CO2 / metric t steel metric t CO2 / metric t cementitious

−60% (vs. 60% implied by scenario) −27% (vs. 27% implied by scenario) −24% (vs. 24% implied by scenario)
490 2 0.70 0.64
1.75
0.62
339
1.41 1.28 0.48

227
136 0.12
0 −4 0 0 0.02
2021 2030 2050 2021 2030 2050 2021 2030 2050
UBS actuals (2021– 2023) UBS actuals (2021– 2023) UBS actuals (2021– 2023)
UBS target UBS target UBS target
2050 convergence point 2050 convergence point 2050 convergence point
IEA NZE 2050 IEA NZE 2050 (adjusted) IEA NZE 2050 (adjusted)
Indicative trend line to 2030 target Indicative trend line to 2030 target Indicative trend line to 2030 target

1 Residential real estate includes owner-occupied properties and properties rented out on a non-commercial scale. Commercial real estate includes rented-out
properties in multi-family homes, any other income-producing real estate, and own-use commercial real estate. For Swiss real estate lending (residential and
commercial), our 2030 targets are using the percentage decarbonization rate implied by the Energy Perspectives 2050+ (EP2050+) ZERO Basis scenario (below 2°C
scenario) as a minimum reference rate. This scenario is a representative, country-specific pathway, reflective of the government’s climate strategy. It also informs
Switzerland’s decarbonization ambitions for real estate as set out in the Swiss Climate and Innovation Act. 2 ERA: Energy Reference Area. 3 For fossil fuels (oil,
gas and coal), we defined an absolute emissions reduction target and applied the Absolute Contraction Approach, which means the use of contraction of absolute
emissions to get to net zero. We selected the scenario IEA NZE by 2050 (IEA’s World Energy Outlook of October 2023 update) as a reference to base our 2030
target. This scenario is one of the most recent and widely accepted models that achieves a temperature increase of 1.5°C by the end of the century (1.5°C-aligned
scenario). Our 2030 target is more ambitious than the reduction implied by this scenario. 4 For corporate sectors with intensity-based targets (power generation,
iron and steel and cement) we have used the Sectoral Decarbonization Approach (SDA). The SDA assumes global convergence of key sectors’ emissions intensities
by 2050 and we set our 2030 targets to be in line with this assumption. We use the percentage decarbonization rate implied by the scenario IEA NZE by 2050 (IEA’s
World Energy Outlook of October 2023 update) as a reference to base our 2030 target.

Decarbonization levers and key actions underpinning our lending sector decarbonization targets
To underpin our lending sector decarbonization targets, we assessed the impact of two decarbonization levers. Through
lever 1, we assess the effects of our clients’ disclosed decarbonization commitments on our future expected portfolio
intensities. Lever 2 focuses on managing our portfolio to achieve the remaining required intensity reductions.
In addition, we identified key actions relevant to both levers, outlining how we support our clients in realizing their
decarbonization commitments and how we manage our portfolio toward achieving our targets: i) providing products
and services; ii) engaging with clients; and iii) monitoring progress against targets through our decarbonization control
framework.
Lever 1: Clients’ disclosed decarbonization commitments
To understand the current decarbonization ambitions of our clients, we conducted a review of our clients’ currently
disclosed decarbonization commitments and transition plans. On this basis, we assessed the future potential aggregated
reduction of our portfolio intensities for the power generation, iron and steel and cement sectors, assuming that our
clients realize their decarbonization commitments and transition plans. Through actions 1 and 2 outlined below, we aim
to support our clients in realizing their decarbonization commitments.

Sustainability Report 2024 | Environment 33

We recognize that our clients’ realization of their emission reductions has dependencies on various factors and that
financial institutions have limited direct influence over clients’ transition abilities or the speed at which the transition
happens. We constantly track our clients’ progress toward their disclosed commitments and assess the influence of them
meeting their commitments on our own trajectories.
Lever 2: Portfolio management
To work toward the remaining required reduction of our portfolio intensities to realize our lending sector decarbonization
targets, we aim to manage our portfolio. This can be done at the business selection stage, which is in line with our
sustainability risk process. It may trigger enhanced due diligence for transactions in carbon-intensive sectors that have
higher climate-related impacts and risks, as well as trigger the pre-deal assessment review of deals against our set
decarbonization thresholds. It can also be done through the exit from or maturity of our Non-core and Legacy loans,
which contribute to the adjustment of our lending exposure and associated carbon intensity. Through actions 1 and 2
outlined below, we aim to support our clients’ climate transition, while action 3 allows us to track our performance and
manage progress toward our targets.
Although we continue to take steps to align our in-scope business activities with our decarbonization targets, it is
important to note that progress toward our targets may not be linear. Our priority is to support our clients in the transition
to a low-carbon world, and their transition-financing needs. Collaboration across the private and public sectors is
required. The decarbonization of the global economy, emission reductions by clients and the realization of our own
targets and ambitions all depend on various factors outside our direct influence. Clear guidance by governments through
thoughtful regulations, policies and incentives, the development and scaling of key technologies and broader changes in
the behavior of our society are needed.
› Refer to "Non-core and Legacy" in the "Our businesses" section of the UBS Group Annual Report 2024, available under "Annual
reporting" at ubs.com/investors, for more information

Action 1: Providing products and services

We offer sustainable and sustainability-linked financial advice and solutions (advisory, lending, basic banking and
transition financing solutions) to support our clients’ climate transition. These solutions can be on-balance sheet (e.g.
green or sustainable loans and mortgages) or off-balance sheet (e.g. access to debt and equity capital markets). They can
also include transaction structuring.
For example, in Personal & Corporate Banking, we offer sustainability-linked loans (SLLs) to incentivize the borrowers to
achieve their sustainability performance targets. Our SLL offering is open to eligible corporate clients from all sectors that
wish to reflect their sustainability ambitions in their funding strategy and to benefit from meeting agreed sustainability
performance targets. The SLLs have specific sustainability-related key performance indicators that are agreed with each
client.
We continue to develop and refine our sustainable finance solutions and approaches on an ongoing basis.
› Refer to the “Supporting Opportunities” section of this report for more information about our sustainable finance product and
service offering, and specifically to the “Personal & Corporate Banking” section for more information about our corporate client
business

Action 2: Engaging with clients

In 2024, to support our review of our clients’ disclosed decarbonization commitments and transition plans (lever 1), we
developed the Company Transition Assessment Scorecard (CTAS). The CTAS was designed to support a range of purposes
in the future, including the support of our clients’ climate transition through engagement. By understanding our clients
better, we aim to work alongside them to assist with their climate transition efforts. This can include encouraging the
disclosure of current emissions, setting future decarbonization targets in line with Paris Agreement-aligned pathways and
developing credible transition plans.
› Refer to the “Supporting our climate approach: key enabling actions” section of this report for more information about the CTAS

Action 3: Monitoring progress against targets through our decarbonization control framework
We implemented a decarbonization control framework to track our performance and manage progress toward our
lending sector decarbonization targets. This framework has been approved at GEB level and has been integrated into our
sustainability and climate risk policy framework.
For in-scope sectors, the performance and associated changes in the lending portfolio are discussed during quarterly
performance reviews with business division representatives (Global Wealth Management, Personal & Corporate Banking
and the Investment Bank) and our sustainability and climate risk unit. This includes an analysis of trends and significant
changes in exposures, emissions or criteria that are deemed to influence the target metrics. Possible measures to be taken
by the business divisions are also discussed.
For in-scope corporate sectors for which decarbonization targets have been set, we have established a pre-deal
assessment process to review the impact of relevant transactions that are within the scope of our lending sector
decarbonization targets. For each in-scope sector, risk tolerance thresholds have been defined at business division and
Group levels. An internal tool enables the business divisions to evaluate the potential impact of a new transaction on the
portfolio. An escalation process has been put in place should a transaction exceed these thresholds. Transactions are then
also reviewed by the business division representatives and can be further escalated up to GEB level if required. The risk
tolerance thresholds are defined annually and the utilization of the agreed thresholds is monitored on a quarterly basis.
Relevant staff in the business divisions have been trained on these requirements.

Sustainability Report 2024 | Environment 34

Performance against targets and outlook
For the in-scope lending sectors for which decarbonization targets have been set, the following sections describe, for
each sector:
– the scope of the target and relevance for our business divisions;
– the progress against the sector target and the indicative trend line, including the main drivers for the reduction or
increase of absolute emissions / emissions intensity;
– the impact of the decarbonization levers and a description of key actions taken, where relevant (note that not all levers
apply to all target sectors); and
– a description of the key dependencies.
Our lending sector decarbonization targets have a critical dependency on the overall progress made by all sectors and
countries.
Swiss residential real estate
The scope of the decarbonization pathway for residential real estate lending is limited to our financing activity in
Switzerland across Personal & Corporate Banking and Global Wealth Management.
The required 45% reduction to realize our 2030 target is slightly more ambitious than the decarbonization rate implied
by the Swiss government’s Energy Perspectives 2050+ ZERO Basis (EP 2050+) scenario for residential buildings, which is
44%. For the target scope, this scenario is a representative, country-specific pathway, reflective of the government’s
climate strategy. The EP 2050+ also informs Switzerland’s decarbonization ambitions for real estate as set out in the Swiss
Climate and Innovation Act.
As at the end of 2023, our estimated emissions intensity for the portfolio had decreased by 11% against the 2021
baseline, with an emissions intensity of 34.4 kg CO2e / m² ERA (Energy Reference Area). The reduction was primarily
driven by an increased share of financed properties with non-fossil-fuel heating. Our estimated emission intensity is 1%
below the 2023 level of our indicative trend line to 2030 (34.8 kg CO2e / m² ERA).
To further decarbonize our real estate portfolio in alignment with the Swiss government’s decarbonization ambitions, we
remain dependent on technical advances and concerted policy action, for example, by incentivizing improved building
efficiency and the use of non-fossil-fuel heating systems. We will continue to work with the government and our industry
peers to align on the required actions.
We remain committed to doing our part and supporting our clients in reducing the emissions intensity of their properties.
This includes raising the awareness of our existing and prospective clients regarding the climate impact of real estate and
helping our existing clients decarbonize their properties through renovations. For example, we provide access to an online
renovation journey and calculator for owner-occupied real estate, enabling our clients to work out expected renovation
costs and timelines, the CO2e emissions footprint and the energy consumption levels before and after renovation. For
renovations or acquisitions of energy-efficient properties, we offer preferential financial conditions to clients through our
UBS Mortgage Green, UBS Mortgage Energy and UBS Mortgage Renovation products. In 2024, our partner Norm
Technologies launched an offering for our new and existing mortgage clients to carry out a tailored, digital energy analysis
for them to gain an improved understanding of the climate impact of their properties.
Swiss commercial real estate
The scope of the decarbonization pathway for commercial real estate lending is limited to our financing activity in
Switzerland across Personal & Corporate Banking and Global Wealth Management.
The required 48% reduction required to realize our 2030 target is in line with the decarbonization rate implied by the
Swiss government’s EP 2050+ scenario for residential buildings and services, which is also 48%.
As at the end of 2023, our estimated emissions intensity for the portfolio had decreased by 9% against the 2021 baseline,
with an emission intensity of 28.5 kg CO2e / m² ERA. The reduction was primarily driven by an increase in the share of
financed properties with a good-quality building envelope that reduces heat loss. Our estimated emissions intensity is
2% above the 2023 level of our indicative trend line to 2030 (28.0 kg CO2e / m² ERA).
To further decarbonize our real estate portfolio in alignment with the Swiss government’s decarbonization ambitions, we
remain dependent on technical advances and concerted policy action, for example, by incentivizing improved building
efficiency and the use of non-fossil-fuel heating systems. We will continue to work with the government and our industry
peers to align on the required actions.
We remain committed to doing our part and supporting our clients in reducing the emissions intensity of their properties.
This includes helping our existing clients to decarbonize through renovations and providing the respective financing. In
2024, we launched the UBS Loan Green, which is designed for clients planning new low-energy constructions or energy-
efficient renovations, or purchasing energy-efficient properties. The product provides tailored financing and
comprehensive expert advice and accepts various building certifications.
Furthermore, in 2024, we teamed up with Wincasa, a leading Swiss property services provider, to launch a new advisory
solution, UBS Renovation Services, for investment property owners planning energy upgrades. The service offers tailored
analysis of the renovation potential, a detailed feasibility study and coordination of construction planning and
management through a network of specialized real estate companies.

Sustainability Report 2024 | Environment 35

Fossil fuels (oil, gas and coal)
Our fossil fuel portfolio is concentrated in a small number of corporate clients in the Investment Bank and Personal &
Corporate Banking with limited exposure from Global Wealth Management.
As at the end of 2023, our estimated total financed emissions for the fossil fuels portfolio have decreased by 80% against
the 2021 baseline, accounting to 12.9 million metric tons of CO2e. From 2021 to 2022, there was a 29% reduction,
primarily driven by an overall reduction of the financed portfolio and a significant decrease in exposure to coal. In 2023
our portfolio had a number of loans that were classified as non-core, and as of 31 December 2023, these loans were no
longer held in line with the strategy of the Group, primarily driving the remaining reduction. Our estimated financed
emissions are 76% below the 2023 level of our indicative trend line to 2030 (54.6 million metric tons of CO2e).
With the remaining concentrated portfolio, we would not expect the same level of emission reductions over the next few
years. Achieving our target requires collaboration across the private and public sectors due to the reliance on fossil fuels
for energy security and because it is the most affordable source of energy in many countries.
Power generation
Our power generation portfolio mainly consists of corporate clients in the Investment Bank, Personal & Corporate Banking
and Global Wealth Management.
As at the end of 2023, our estimated emissions intensity for the portfolio had decreased by 33% against the 2021
baseline, with an emissions intensity of 227 kg CO2e / MWh. The reduction was primarily driven by a decrease in exposure
to clients with relatively high carbon intensity, including loans that were classified as non-core. In Personal & Corporate
Banking, our clients in the power generation sector, who have a significant share of renewable energy production in
Switzerland, further contributed to our emissions intensity being below the International Energy Agency (the IEA)
benchmark. Our estimated emission intensity is 23% below the 2023 level of our indicative trend line to 2030 (294 kg
CO2e / MWh).
We expect a further decrease in intensity based on our assessment of our clients’ disclosed decarbonization commitments,
assuming that our clients realize those decarbonization commitments.
We aim to manage our portfolio by engaging with our clients to support them in adapting their energy mix and increase
our own exposure to sources of energy with lower emissions. We expect the reduction of loans that were classified as
non-core to further contribute to a decrease in the portfolio intensity.
Reaching our target requires collaboration across the private and public sectors. The sector remains dependent on the
right policies, incentives and frameworks to be in place. Recent data indicates that investment of around USD 2trn per
annum is going toward clean energy, which represents two thirds of the global energy investment. This increase is mainly
driven by emissions reduction targets and the need to guarantee energy security.1
Iron and steel
Our iron and steel portfolio is concentrated in a small number of clients in the Investment Bank and Personal & Corporate
Banking with limited exposure from Global Wealth Management.
As at the end of 2023, our estimated emissions intensity for the portfolio had decreased by 20% against the 2021
baseline, with an emissions intensity of 1.41 metric tons of CO2 / metric ton of steel. The reduction was primarily driven
by existing clients reducing their carbon intensities, a decrease in loans that were classified as non-core, and an increased
share of exposure to secondary steel production clients with lower intensities. Our estimated emissions intensity is 14%
below the 2023 level of our indicative trend line to 2030 (1.64 CO2 / metric ton of steel).
We expect a further decrease in intensity based on our assessment of our clients’ disclosed decarbonization commitments,
assuming that our clients realize those decarbonization commitments.
We will continue to finance our clients’ transition to support shifting production to reduce the sector’s reliance on coal
while increasing scrap production and the use of direct reduction and electric arc furnaces.
Reaching our target requires collaboration across the private and public sectors. The sector remains dependent on the
commercialization and scaling up of low-carbon steelmaking technologies, which requires research and development,
and robust policy and market incentives.
Cement
Our cement portfolio consists of corporate clients in Personal & Corporate Banking and the Investment Bank.
As at the end of 2023, our estimated emissions intensity for the portfolio had decreased by 3% against the 2021 baseline,
with an emissions intensity of 0.62 metric tons of CO2 / metric ton of cementitious. The reduction was primarily driven
by a decrease in intensity by our existing clients. Our estimated emissions intensity is 2% above the 2023 level of our
indicative trend line to 2030 (0.60 metric tons of CO2 / metric ton of cementitious).

1 https://www.iea.org/reports/world-energy-investment-2024/

Sustainability Report 2024 | Environment 36

 We believe our main clients in the cement industry are best in class in terms of ESG (environmental, social and governance)
disclosures and externally verified emissions reduction targets, some of which include interim 2030 targets. We will
continue to finance our clients’ transition, potentially increasing our exposure with appropriate sustainability-linked
product offerings or project ring-fencing, and advising on various transactions, such as the acquisition of assets, disposal
of certain business lines, equity raises and share buybacks.
Reaching our target requires collaboration across the private and public sectors. The sector remains dependent on the
right policies and incentive frameworks being in place. Specifically in the cement sector, production emissions intensity
has remained flat in recent years, highlighting the need for technological disruption.
UBS AG 2024 Poseidon Principles disclosure (shipping)
The Poseidon Principles are a framework for assessing and disclosing, on an annual basis, the climate alignment of in-
scope ship finance portfolios (individual vessels weighted by their loan exposure with the reporting financial institution)
to the ambition of the International Maritime Organization (the IMO), including its 2023 Revised GHG Strategy for GHG
emissions from international shipping to decrease to net zero by or around 2050 with interim targets in 2030 and 2040
on a well-to-wake (WTW) basis (compared with 2008 levels).1
This is the fourth year of disclosure under the Poseidon Principles and the first-time reporting in the name of UBS AG.
The result is based on the Credit Suisse AG ship finance portfolio as at the end of 2023 and, therefore, precedes the
completion of the legal merger of the two firms. The reported alignment deltas are reflective of the IMO’s revised GHG
reduction ambition, with the underlying methodology adopted by the Poseidon Principles in 2023, as further updated in
the reporting year.2

Poseidon Principles disclosure (UBS AG – Credit Suisse AG portfolio)

For the year ended
31.12.23 31.12.22
Shipping (delta alignment to “IMO 2023 minimum trajectory”) 9.1% 11.5%
Shipping (delta alignment to “IMO 2023 striving for trajectory”) 14.4% 15.7%

Shipping – Portfolio Climate Alignment Score (UBS AG – Credit Suisse AG portfolio)

2023 IMO GHG Strategy

(”IMO Revised GHG Strategy”)
1
Normalized emissions intensity

9.1% 14.4%

0
2018 2023 2030 2040 2050

2023 IMO GHG Strategy – Striving 2023 IMO GHG Strategy – Minimum
Performance against the trajectories
1 The IMO Revised GHG Strategy sets out the following absolute reduction levels of ambition: (i) to reduce total annual GHG emissions by at least 20%, striving for 30%, by 2030 (compared with 2008); (ii) to reduce
total annual GHG emissions by at least 70%, striving for 80%, by 2040 (compared with 2008); (iii) GHG emissions to peak as soon as possible and to reach net-zero GHG emissions by or around 2050 (the Poseidon
Principles trajectories are based on a net zero by 2050 consideration); and (iv) carbon intensity to decrease in order to reduce CO2 emissions per transport unit by at least 40% by 2030 (compared with 2008). The
Revised GHG Strategy considers well-to-wake CO2e emissions, i.e. it includes upstream emissions, as well as accounts for the impact of methane (CH4) and nitrous oxide (N2O). The updated IMO trajectories are not
1.5°C-aligned.
2 The Poseidon Principles Annual Disclosure Reports are published under https://www.poseidonprinciples.org/finance/resources. For the 2024 reporting cycle (based on 2023 data), the Poseidon Principles Technical
Guidance v.5.1 was used.

Sustainability Report 2024 | Environment 37

In 2024, we experienced a strong reporting level and responsiveness from our clients, with further improvements in data
quality. This is a testament to the established Poseidon Principles and regulatory frameworks, such as the IMO Data
Collection System (DCS) and IMO Carbon Intensity Index (CII) rating systems.
The results continue to be materially driven by, and may fluctuate each reporting year due to, the continuous
implementation and tightening of regulations, a broader adoption of technical improvement measures and the limited
direct influence over operational aspects by ship owners and reporting financial institutions. In the long term, we expect
that technology-related aspects of decarbonization, such as the adoption and availability of new low-emission
technologies and related fuel supply, could further drive the portfolio alignment performance.
The Poseidon Principles continue to be a relevant factor in our ship finance client and transaction due diligence. Related
processes and tools have been further refined and embedded in our organization.
By understanding our clients’ decarbonization strategies better, we continue to work alongside them to support their
climate transition efforts. The improvement of data availability and transparency and our continuous participation in
decarbonization initiatives, including the Poseidon Principles, support our client discussions and portfolio optimization.
Our approach to measuring facilitated emissions from our capital markets business
Our role in capital market transactions helps our clients to access capital for their businesses. We facilitate capital-raising
by clients, and we believe it is important to monitor the related emissions from these transactions. The Investment Bank
offers clients access to the primary and secondary public capital markets and private capital transactions.
Facilitated emissions differ from financed emissions in two respects: firstly, they are off-balance sheet (representing
services rather than financing) and, secondly, our role is completed within a short time frame rather than a long-term
loan-related exposure. As a result, and in line with industry guidance, we distinguish between on-balance sheet
“financed” and off-balance sheet “facilitated” emissions.
By disclosing our facilitated emissions for selected carbon-intensive sectors for public capital markets transactions, we
aim to provide transparency regarding the emissions we facilitate as a result of our capital market activities. Our facilitated
emissions are calculated following the PCAF’s Global GHG Accounting and Reporting Standard – Part B Facilitated
Emissions (first version, December 2023) for facilitated emissions, including public equity capital markets and public debt
capital markets, where we held a lead bookrunner or lead manager / co-manager role in the transaction. Facilitated
emissions are not shown for the 2024 reporting year, due to the inherent time lag in the availability of emissions data.
It is important to note that these facilitated emissions are dependent on the capital markets activity during the year and
our market share is expected to fluctuate in our year-on-year reporting.
We continue to review and assess emerging industry guidance and target-setting methodologies for facilitated emissions.
We review and assess Global Banking transactions and employ a robust business selection process for mandates that are
accepted. This means that, in our capital markets activities for carbon-intensive sectors, we consider the potential climate
and sustainability impacts of the transaction and related material risks and opportunities, in line with our sustainability
and climate risk policy framework.

Facilitated emissions for selected carbon-intensive sectors (UBS Group)

For the year ended
31.12.23 31.12.22
Facilitated Facilitated
emissions, Facilitated Facilitated emissions, Facilitated Facilitated
scopes 1 emissions, intensity scopes 1 emissions, intensity
and 2 scope 3 PCAF (million and 2 scope 3 PCAF (million
Facilitated (million (million score, PCAF metric t Facilitated (million (million score, PCAF metric t
amount metric t metric t scopes 1 score, CO2e / USD amount metric t metric t scopes 1 score, CO2e / USD
(USD bn) CO2e) CO2e) and 22 scope 32 bn) (USD bn) CO2e) CO2e) and 22 scope 32 bn)
Selected carbon-intensive
sectors1 6.5 1.3 1.8 1.6 1.7 0.46 12.0 2.0 2.3 1.6 2.3 0.354
Selected carbon-intensive
sectors as % of total 5.3% 5.7%
Other sectors 117.7 197.7
Total facilitated amount3 124.2 209.7
1 Selected carbon-intensive sectors are the following: fossil fuels (coal, oil and gas), power generation, iron and steel, aluminum, cement, automotive and air transportation. Agriculture and real estate are excluded
due to the limited data availability. Refer to the sector approach in the “Climate-related methodologies – decarbonization approach for our financing activities“ section of the Supplement to the UBS Group Sustainability
Report 2024, available at ubs.com/sustainability-reporting, for more information about the parts of the value chain within scope. 2 The PCAF data quality score has been combined for the key sectors and weighted
by the facilitated amount. 3 Includes all sectors. 4 Facilitated intensity is reported to two decimal places and may therefore differ from the values presented in the UBS Group Sustainability Report 2023.

› Refer to the “Supporting Opportunities” section of this report for more information about the Investment Bank’s capital market
activities
› Refer to the “Basis of preparation” section of the Supplement to the UBS Group Sustainability Report 2024, available at
ubs.com/sustainability-reporting, for more information about our methodology to calculate facilitated emissions

Sustainability Report 2024 | Environment 38

Supporting our clients’ neutralization of residual emissions
Our climate transition plan prioritizes emission reductions in line with science-based climate targets and credible
trajectories to achieve these targets. In addition, we anticipate that the deployment of carbon removal solutions will be
needed to supplement the emission reduction strategies of some of our clients and counterbalance hard-to-abate
emissions. We aim to support our clients in the deployment of solutions to neutralize residual emissions in line with
science-based decarbonization pathways. As best practice guidance, regulation, methodologies and technologies
develop, our approach to decarbonization, including neutralization, will continue to evolve.
High-integrity participation in carbon markets plays a role that is supplemental to sectoral and economy-wide
decarbonization. We have made a strategic investment in Carbonplace, a consortium-led venture to build an
infrastructure layer to scale the global voluntary carbon market. Through its embedded network of banks, registries and
data providers, Carbonplace enables our clients and other market participants to buy, sell, hold and retire voluntary
carbon credits on a transparent, secure and scalable settlement platform. Furthermore, the Investment Bank completed
a first-of-a-kind carbon finance transaction that aims to provide returns to investors from the sale of credits generated by
carbon dioxide removal projects, enabling our clients to directly invest in the development of high-quality technological
carbon removals. We support transparent investment in carbon markets that are aligned with the current publicly
available consensus on high integrity standards and robust governance (including the Voluntary Carbon Markets Integrity
Initiative Claims Code of Practice, the Integrity Council for the Voluntary Carbon Market Core Carbon Principles and the
Oxford Principles for Net-Zero-Aligned Carbon Offsetting).

Supporting our investing clients’ low-carbon transition

We are committed to supporting our investing clients in the transition to a low-carbon world in line with our obligations
to our clients, including fiduciary duties as an investment manager and on the terms of the mandates agreed with clients.
We offer a distinct approach to client investments, which focuses on solutions and engagement activities that empower
clients to achieve their transition goals. We have identified six key strategic actions to support our investing clients in
Asset Management and Global Wealth Management. It is important to note that not all these strategic actions are
relevant to both business divisions, or to all regions within a division, and our progress, where applicable, may not be
linear or simultaneous.
– Develop our platform of available climate-related strategies, products and solutions to facilitate our investing clients’
transition to a low-carbon world.
– Engage investee companies to encourage them to adopt credible climate transition plans and manage climate-related
risks and opportunities (applicable to Asset Management only).
– Collaborate with third-party fund managers to understand their climate transition plans and approach to consider
climate-related risks and opportunities (applicable to Global Wealth Management only), where the legal framework
allows.
– Support clients’ progress on their climate objectives through education sessions and thought leadership, along with
portfolio construction and transparency, aiming to assist clients who seek awareness of mitigating climate risks and
identifying transition opportunities in their investments.
– Provide employees with the training, tools and information necessary to support our clients to navigate the transition
to a low-carbon world in accordance with their climate objectives.
– Engage with policymakers on key topics such as regulations and policy development.
Details by business division on each strategic action are provided in the respective sections below.
› Refer to the “Supporting our climate approach: key enabling actions” section in this report for more information about our Group
initiatives

Asset Management
Asset Management is committed to supporting our clients in achieving their climate-related investment goals. In the UBS
Group Sustainability Report 2023, we referred to the target set by Asset Management aiming, by 2030, to align 20% of
UBS AG Asset Management’s total assets under management (AuM) with net zero. Given the integration taking place
within Asset Management, we are reviewing the legacy target set prior to the acquisition of the Credit Suisse Group,
taking into account all of the AuM of the combined businesses. We have therefore withdrawn the target. We remain
committed to supporting the Paris Agreement climate goals in line with global efforts. At the end of 2024, we recorded
USD 64.4bn of total assets as having a net-zero ambition, compared with USD 35.5bn at the end of 2023.
Aligned to our overall approach for supporting our investing clients, Asset Management has adopted key policies,
guidelines and frameworks, along with actions to manage our climate-related impacts and realize opportunities. These
policies and actions are outlined below.
Our climate-related policies, guidelines and frameworks
Specific policies, guidelines and frameworks are in place and aim to manage climate-related impacts and the realization
of opportunities within Asset Management.
The climate risk integration guidelines describe the approach toward integrating the physical and transition risks of
climate change into the assessment of public market issuers and investment portfolios. The guidelines identify companies
with elevated climate risks and set steps for assessment of the specific risks and mitigation actions, which are incorporated
into investment decision-making. The scope of the framework covers listed equity and corporate bonds. The most senior
level accountable for the implementation of the guidelines is the head of the Sustainable Investing team.

Sustainability Report 2024 | Environment 39

The net-zero alignment framework has been established to guide the internal classification and development of products
and solutions meeting clients’ needs for net-zero investing. The framework describes a range of methodologies for
determining the net-zero ambition of investment products and covers investments in public equities and corporate bonds,
sovereign bonds, direct real estate, direct infrastructure, carbon markets and private debt. In 2024, the framework was
reviewed and updated to reflect further developments of industry guidance. The most senior level accountable for the
implementation of the guidelines is the head of the Sustainable Investing team.
› Refer to “Key policies and principles” in the “Appendix 1 – Governance” section of this report for details about the Group-wide
policies, guidelines and frameworks

Climate-related investing metrics

The table below provides metrics related to the investments of our Asset Management division. Investment-associated
emissions are provided based on the recommendations of the Task Force on Climate-related Financial Disclosures (the
TCFD) and are derived from the GHG emissions (scopes 1 and 2) attributed to the issuers and the positions within the
investment portfolios we manage. The metrics are calculated for portfolios where emissions data is available and primarily
covers our equity, fixed income and multi-asset portfolios, accounting for 48% of the total invested assets of Asset
Management.
The design of the table has been changed from the one used for the UBS Group Sustainability Report 2023 with a view
to simplifying the presentation of the metrics. It now includes three commonly used metrics for investment-associated
emissions for Asset Management. Furthermore, it provides carbon intensity metrics for equity and fixed income asset
classes.
Absolute carbon emissions increased year on year primarily due to inclusion of Credit Suisse portfolios and greater
coverage for fixed income portfolios. Carbon intensity for Asset Management decreased as a result of an overall fall in
carbon intensity across the equities asset class driven by increased equity market valuations, partially offset by a rise in
the carbon intensity of fixed income.

Climate-related investing metrics – portfolio emissions (Asset Management)

For the year ended
31.12.24 31.12.23
Asset Management Investment-associated carbon emissions:
Carbon emissions (absolute in million metric tons of CO2e)1,2 54.8 41.3
Carbon intensity (in metric tons of CO2e per USD m invested)1 56.5 62
Carbon intensity (in metric tons of CO2e per USD m of revenue)1 101.2 103.6
Equities Asset Class
Carbon intensity (in metric tons of CO2e per USD m invested)1 38.5 45.6
Carbon intensity (in metric tons of CO2e per USD m revenue)1 90.4 101.5
Fixed income Asset Class
Carbon intensity (in metric tons of CO2e per USD m invested)1 108.3 84.2
Carbon intensity (in metric tons of CO2e per USD m revenue)1 130.9 122.5
1 Based on data for scope 1 and 2 GHG emission of investee companies from a third-party data provider and positions held in investment portfolios. Note the scope of the portfolio emissions metrics reported for
2024 is Asset Management, and includes Credit Suisse portfolios which have migrated onto UBS platforms by the end of the year. This process is carried out in waves and will continue until the end of 2025 at a
minimum. The scope of the metrics reported for 2023 is UBS AG Asset Management only and excludes Credit Suisse portfolios. 2 2023 absolute carbon emissions have been restated from 46.3 to 41.3 million metric
tons of CO2e.

Our key climate-related actions

Asset Management aims to manage its climate-related impacts and realize opportunities through the actions described
below. These actions are only partially and indirectly connected to the investment-associated emissions we report for
Asset Management and for the selected asset classes.
Action 1: Develop our platform of available climate-related strategies, products and solutions
Asset Management integrates considerations of climate change risks across a range of the products and solutions that it
offers. From the viewpoint that climate change represents a financial risk across a broad range of investments, it assesses
the potential scale of risks arising from transition and the risks associated with the effects of climate change on operating
assets and supply chains. In 2024, Asset Management added further specific climate-related risk indicators into its
proprietary ESG risk dashboard, generating a risk signal across several risk dimensions, including transition and physical
risks. This makes it easier to identify investments where the risks are higher, assess how these risks are being managed
and provide a forward-looking view that informs portfolio manager investment decisions.
Across our private markets business, there is a climate risk management process to identify, assess and potentially mitigate
climate risks to improve the adaptation and / or resiliency of our portfolios to climate-change-related hazardous events
and the transition to a net-zero world. This approach is embedded throughout the investment life cycle for underlying
assets of portfolios, where relevant and possible. Assessment of transition risk using the IEA net-zero roadmap is applied
to direct infrastructure investments. Standardized due diligence questionnaires are used in our multi-manager investment
businesses (real estate, private equity and infrastructure) to understand climate risks at fund and asset levels, where
possible. In addition, our Multi-Managers Real Estate business independently assesses physical risk and transition risk
using the S&P Trucost and CRREM decarbonization pathways, respectively.
In addition, Asset Management offers specific products that address different aspects of climate change. Examples include
strategies that invest in climate solutions, the energy transition, infrastructure debt and green real estate, and in indexed
strategies.

Sustainability Report 2024 | Environment 40

In 2024, we expanded the number of portfolios that we offer with a net-zero alignment ambition in the equities and
direct real estate asset classes.
The table below shows progress related to total assets with a net-zero ambition.
The increase in the value of assets with net-zero ambition was driven by an increase in the number of net-zero ambition
portfolios and market performance. The classification of additional net-zero ambition portfolios resulted from newly
launched portfolios, changes to existing portfolios and a refinement to the Asset Management’s net-zero alignment
framework to align with current industry standards and best market practice.

Climate-related investing metrics: Opportunities – net-zero investing (Asset Management)

For the year ended
31.12.24 31.12.23
Assets with net-zero ambition (USD bn)1 64.4 35.5
Number of net-zero ambition portfolios1 49 35
Net-zero ambition assets share of total assets under management (%)2 3.6 2.9
1 Credit Suisse portfolios are in the process of being assessed in the context of the Asset Management's net-zero alignment framework to identify portfolios with a net-zero ambition and are therefore not reflected in
the reported metrics. 2 For 2024, the total assets under management represent Asset Management including Credit Suisse. For 2023, the total assets under management represent UBS AG Asset Management
excluding Credit Suisse.
› Refer to the “Supporting Opportunities” section of this report for more information about examples of climate and / or transition
products

Action 2: Engage investee companies

Asset Management has had a dedicated climate engagement program focused on investee companies in place for over
six years. This program is based on selecting companies that make a significant contribution to portfolio emissions across
listed equity and corporate fixed income investment portfolios. This engagement is based on a set of expectations
published on our website from which company specific engagement objectives are developed, supplemented with an
evidenced-based research framework, along with sector-specific standards addressing governance, corporate transition
plans and exposure to sector-specific decarbonization levers across business operations and the value chain.
In its private markets business, Asset Management’s active ownership on climate change is integrated into the
management of its funds and is implemented by all operational functions throughout the ownership cycle of an
underlying project. This spans from development or acquisition to the ongoing asset management, renovation and
maintenance, through to sale.
Action 3: Support clients’ progress on their climate objectives
Asset Management recognizes that its approach to climate change investment is determined by clients’ choices.
Therefore, we aim to play a role in helping our clients to achieve their climate objectives, working collaboratively with
them on climate risk management by providing information about best practices and approaches for portfolios with a
net-zero ambition. This includes supporting climate-oriented portfolio construction through internal transition readiness
assessment methodologies, transparency on climate-relevant data metrics and thought leadership.
In 2024, Asset Management supported clients in a variety of ways reflecting the specific needs of the clients involved.
We created thought pieces and guidance for clients on climate change aspects of investing. We supported a client in
meeting the need for decarbonizing the sovereign part of a portfolio. We also assisted a retail bank with developing a
net-zero multi-asset offering for its client, along with methodology and building blocks for a fund-of-funds solution. A
further example is our development of a net-zero ambition corporate bond fund for Swiss institutional clients. As a result,
we have increased the shelf of products that we offer to clients with a climate-related perspective.
During the year, Asset Management published a Climate Aware report showing decarbonization path visualizations. It
also published a series of insights on approaches to COP29, physical risks, battery power and natural capital, as well as
an engagement for impact report, an IPE special report and a climate report that provided an overview of its commitment
and actions to the energy transition.
Action 4: Provide employees with training, tools and information
Asset Management provides relevant training, tools and information to its employees to support clients in the transition
to a low-carbon world. With the aim of enabling the alignment of the activities of Asset Management’s employees to
the division’s sustainable investing goals, Asset Management delivered an ESG talk series and updated Group
foundational sustainable investing training aimed at an Asset Management audience. It enhanced role-specific
sustainable investing know-how by running the first Berkeley UBS external certification program. It also conducted
regulatory learning sessions educating investment professionals on sustainable investing regulatory and greenwashing
risks.
› Refer to the “Supporting our climate approach: key enabling actions” section of this report for more information about our
Group-wide training and culture activities

Sustainability Report 2024 | Environment 41

Action 5: Engage with policymakers
Asset Management undertakes engagement with the industry and government with the aim of providing input to policy
and regulation in the development of well-functioning markets.
With respect to climate change, Asset Management engages with key stakeholders such as national and international
policymakers through industry forums, including the European Fund and Asset Management Association Stewardship,
Market Integrity and ESG Investment Standing. In Switzerland, Asset Management is a member of Swiss Sustainable
Finance and the Asset Management Association Switzerland Working Groups on Sustainable Finance, including a focus
on developing the Swiss Climate Scores methodologies and the Swiss Stewardship Code.
› Refer to the “Supporting our climate approach: key enabling actions” section of this report for more information about the
Group’s initiatives on industry, governments and public sector engagement

Global Wealth Management

Global Wealth Management is a distributor of investment solutions, including those that focus on climate. We recognize
that some investors may have decarbonization ambitions or an interest in investing in the transition to a low-carbon
world, therefore we aim to provide a range of solutions for private investors and family offices to address their own
decarbonization targets where possible. We may seek to do this through allocations to climate-related solutions in our
discretionary mandates where relevant and available, and by curating climate investment options for advisory portfolios.
The focus on providing a range of credible solutions is complemented by building investor awareness, driving solutions
innovation across asset classes and strategies, and providing investors with the tools to understand their portfolios in a
climate context. However, the available solutions, approaches and climate-related data and information will differ by
region.
Our key climate-related actions
Action 1: Develop our platform of available climate-related strategies, products and solutions
Global Wealth Management aims to support climate change mitigation by providing options for private investors and
family offices to address their own decarbonization objectives where possible. In 2024, Global Wealth Management
continued to increase the number of investment solutions across asset classes and strategies to support clients’
decarbonization objectives.
› Refer to the “Supporting opportunities” section of this report for more information about our products and solutions

Action 2: Support clients’ progress on their climate objectives

We aim to support our clients in making progress on their climate objectives through education, investment research,
and portfolio construction and transparency. Our investment specialists provide investment insights to clients and advisors
on various climate-related and transition-investing topics, given the importance of climate change for capital markets and
business models. This includes incorporating climate considerations into portfolios, setting portfolio decarbonization
targets and building exposure to carbon markets.
In 2024, we continued to provide coverage of climate-related and broader sustainable investing topics in publications for
private clients. Our Chief Investment Office identified three key sustainability themes for the year that encompass different
areas of the transition to the low-carbon world: the industrial transition, sustainable infrastructure, and water and
agriculture. Throughout the year, we provided a private investor perspective on investment opportunities tied to the
transition. Our analysts covered a broad range of topics, including, but not limited to, longer-term investment themes
(e.g. energy efficiency, the energy transition(s), smart mobility, the circular economy, and the blue economy), investments
in renewable energy infrastructure, decarbonization of high-climate-impact sectors (e.g. cement, steel and shipping),
climate risks and opportunities tied to artificial intelligence, implications for the transition from global election outcomes.
We activated this content internally and externally through a variety of channels, including video content, social media
campaigns and podcasts in collaboration with industry partners, as well as through our website.
We also continue to see a greater focus on climate transparency in select regions. Since the introduction of the Swiss
Climate Scores in 2023, we have continued to inform advisors on this content and made reports published by Asset
Management and third-party managers available through our platform. We also incorporated key environmental statistics
into the after-sales materials for relevant investment modules we offer to our clients.
Action 3: Collaborate with third-party fund managers
We work closely with third-party fund managers on developing new sustainability and climate solutions, where relevant
and as legal frameworks allow for it. We aim to identify relevant and compelling investment opportunities and credible
tools and to support the launch of new solutions where such are possible and relevant for client portfolios. For example,
in 2024, we co-designed and launched an energy transition infrastructure fund for clients interested in investing in
transition-related real assets. We also host regular “innovation sessions” with managers on our platform to discuss market
trends, development ideas and new strategies. These sessions include a focus on sustainability and transition.
We continue to believe that the transition to a low-carbon world requires an “all-of-the-above” approach, where
investments in clean energy infrastructure and green technologies are complemented by effective and credible
shareholder and bondholder engagement with heavy polluters on decarbonization. As such, we dedicate a portion of
our discretionary portfolios to impactful engagement strategies, including those that invest in companies with the
objective of engaging on decarbonization, and regularly collaborate with these managers on their impact measurement
and reporting capabilities.

Sustainability Report 2024 | Environment 42

Action 4: Provide employees with training, tools and information
In growing our employees’ capabilities around climate and the transition, we aim to provide them with the training, tools
and information necessary to support our clients in navigating the transition to a low-carbon world. In Global Wealth
Management, we continued the rollout of an education curriculum covering sustainability and sustainable investing topics
in certain regions. This curriculum offered to advisors covered climate-relevant topics and considerations for investing
around the transition.
› Refer to the “Supporting our climate approach: key enabling actions” section of this report for more information about our
Group-wide training and culture activities

Sustainability Report 2024 | Environment 43

Reducing our own environmental impact
Reporting to the Head Group Human Resources and Corporate Services, Group Real Estate and Supply Chain (GRESC)
has overall responsibility for managing environmental and climate-related impacts arising from our own operations and
supply chain. GRESC partners with Group Operations and Technology Office (GOTO), who manages technology-related
environmental impacts, from hardware and data centers. GRESC ensures that implementation, monitoring and
improvement efforts comply with local legislation and adhere to the international environmental management standard
ISO 14001 globally and the international energy management standard ISO 50001 in the EMEA region. GOTO drives the
optimization of our technology within our data centers and the cloud, ensuring optimal efficiency measures across our
energy-intensive assets while encouraging development practices that consider efficiency and reduce our overall
environmental impact. To mitigate our climate-related impacts, we have defined a scope 1 and 2 emissions reduction
target and actions to guide our transition toward net zero.

Our scope 1 and 2 net-zero target

We have replaced our original 2025 scope 1 and 2 target as disclosed in the UBS Group Sustainability Report 2023 with
a new scope 1 and 2 net-zero target to be achieved by 2035 that is in line with net-zero guidelines. The new target
reflects our enlarged corporate real estate portfolio following the acquisition of the Credit Suisse Group and considers
the latest definition of a “net-zero target” in the Commission Delegated Regulation (EU) 2023/2772 (CSRD).1 We aim to,
at a minimum, reduce our emissions by 90% against our 2023 baseline of 46,278 metric tons of CO2e before neutralizing
any residual emissions through the purchase of carbon removal credits.
Decarbonization pathway modeling

50

40
−57%
000s tons CO2 e

30
−90%

20

10

Max 10%

2023 2025 2030 2035 2040 2045 2050

SBTi 1.5 pathway UBS Net zero 2035 pathway Carbon dioxide removal credits 2024 Actuals
Note: UBS Net zero pathway will be updated annually based on latest forecast information.

This target covers our scope 1 and market-based scope 2 emissions across all our global own operations. As part of the pathway
toward 2035, we also defined a 2030 interim target to reduce our scope 1 and net scope 2 emissions by 57% against our
2023 baseline. This interim target does not include the use of any carbon removal credits.
› Refer to the “Reducing our environmental footprint – additional information” section of the Supplement to the UBS Group
Sustainability Report 2024, available at ubs.com/sustainability-reporting, for details about our scope 1 and 2 emissions

1 Definition of a net-zero target by the CSRD: Setting a net-zero target at the level of an undertaking aligned with meeting societal climate goals means: (i) achieving a scale of value chain emission reductions consistent
with the abatement required to reach global net zero in 1.5°C pathways; and (ii) neutralizing the impact of any residual emissions (after approximately 90–95% of GHG emission reduction with the possibility of justified
sectoral variations in line with a recognized sectoral pathway) by permanently removing an equivalent volume of CO2.

Sustainability Report 2024 | Environment 44

When developing the new scope 1 and 2 target, we reviewed sectoral net-zero pathways (e.g. real estate) but concluded
that there was no sectoral pathway that reflected the structure of our operations. We have followed the latest guidance
from the SBTi and use its Absolute Contraction Approach1, limiting global warming to 1.5°C. Demonstrating our
commitment to climate action, we have set a more ambitious target, aiming to achieve net zero by 2035, well ahead of
2050 – the deadline under the SBTi Absolute Contraction Approach.
For our own operations and the scope of our scope 1 and net scope 2 emission reduction targets, business growth and
technological advancement may lead to changes in workforce numbers, impacting real estate- and service-related needs.
The continued advancement of low-emission technologies for space heating and countries’ net-zero targets will positively
impact the target achievability. We recognize that the impact of such developments is difficult to quantify and therefore
needs to be closely monitored. Projections of real estate demand changes will be factored into the annual model review
to ensure early course correction if required. Another development that will impact target achievement is the availability
of renewable electricity in line with RE100 requirements as global demand increases with production not necessarily
following at the same pace.
In 2024, our scope 1 and net scope 2 emissions reduced by 35% against our baseline. This reduction was mainly driven
by the consolidation of our real estate footprint and our increased coverage of renewable electricity.
Accompanying our scope 1 and 2 net-zero target, we also aim to reduce by 2030 our absolute energy consumption by
35% compared with our 2023 baseline. The ambition level of this energy reduction target was set through forecasting
the expected energy usage reductions resulting from the implementation of the decarbonization levers and actions
described below. In 2024, we achieved a 10% reduction in energy use compared with our baseline, driven by the
consolidation and energy optimization of our real estate and data centers. Our energy reduction target also contributes
to mitigating the risk of not being able to secure full coverage of renewable electricity.
Energy consumption and related greenhouse gas emissions UBS Group

1,000 180
899 866

GHG emissions in kilotons CO2e

755
679
Energy in GWh

60 62
46
30
0 0
2021 2022 2023 2024

Total energy consumption

Energy-related GHG emissions (net)

We have also set a target of sourcing 100% renewable electricity from qualifying generation by 2026 in line with RE100
technical guidance, in markets where credible renewable electricity generation and tracking systems exist. This will cover
our corporate real estate portfolio, including data centers. In 2024, 99.8% of the electricity we used across our global
real estate portfolio was from renewable sources, with 30% of bundled electricity and 70% of unbundled electricity
coming from such sources. Out of our total gross scope 2 emissions, 91% is covered by contractual instruments.
We have set 2023 as our baseline year for our scope 1 and 2 net-zero target and our energy reduction target. The
updated baseline reflects material changes for the combined firm and an adjusted scope of our renewable-source
electricity commitment to address markets with limited procurement availability of electricity from renewable sources in
line with RE100. All three targets are led and managed by GRESC in collaboration with GOTO. We have actively engaged
relevant stakeholders in the development of these targets by collecting strategic assessments from topic experts, regional
representatives and real estate managers.
We aim, at a minimum, to review our targets every five years and, from 2030 onward, to update the base year and target
values after every five-year period to ensure consistency with the most recent climate science and best practices. It is
important to note that progress toward our targets may not be linear, with year-on-year volatility expected due to the
nature of operational requirements and business development.

1 As per the SBTi Corporate Net-Zero Standard Criteria v1.2, March 2024.

Sustainability Report 2024 | Environment 45

As part of our global emission accounting to model our 2035 reduction target, we have also assessed the prevalence of
locked-in emissions within the scope of our target. We own and control some buildings with significant on-site fossil fuel
use (such as those heated with natural gas or oil) and are aiming to either replace such systems or move out of the real
estate, wherever possible. For some locations, we are also dependent on municipal action to develop or decarbonize
district heating systems, as electrification with the current infrastructure or location is not a viable alternative.

Decarbonization levers and key actions underpinning our own operations targets
To achieve our targets related to our own operations as outlined above and to manage our climate-related impacts in our
own operations, we have identified key decarbonization levers and actions required in our real estate operations and
service portfolio. The decarbonization levers are aggregated types of mitigation actions. Therefore, actions are structured
by decarbonization lever.
Lever 1: Phase out fossil fuels and switch to greener alternatives (scope 1)
We have established a four-part action plan to phase out fossil fuels and implement greener alternatives in order to
significantly reduce our associated scope 1 emissions. By deploying a series of targeted actions, we can transition to more
sustainable practices and energy sources, ensuring a cleaner and more resilient future for our own operations.
Action 1: Phase out fossil-fuel-powered own vehicles
Across all regions, we plan to phase out our fossil-fuel-powered own vehicles by 2035. In markets where this is not
feasible, we will pursue the best available industry options, such as hybrid vehicles, while continuing to seek greener
alternatives. This will help us ensure compliance with emission standards and optimized operational efficiency while
minimizing our carbon footprint.
Action 2: Switch to more sustainable fuel alternatives and battery replacements
In 2024, we developed high-level plans, which extend through 2035, to reduce and replace fossil fuels in critical
engineering power systems. We will seek to replace those fuels with more sustainable alternatives, such as biofuels,
hydrogenated vegetable oils and battery replacements.
We initiated a cross-regional market analysis of fuel alternatives in 2024, to be completed by 2025, to ensure appropriate
replacements can be procured accordingly to meet our 2035 scope 1 and 2 net-zero target. The outcome of this market
analysis will inform our further detailed planning.
Action 3: Eliminate usage of heating oils and natural gas
We aim to eliminate oil- and natural-gas-based heating systems within our own operations by 2035, in line with industry
decarbonization efforts. We plan to achieve this by identifying and targeting real estate assets for electrification and
switching to district heating to maximize the operational and cost efficiency of each asset’s life cycle.
Action 4: Transition to low-GWP refrigerants
We have initiated the replacement of refrigerants with alternatives with lower global warming potential factors. We plan
to complete this action across all regions by 2035.
Lever 2: Reduce our operational emissions (scope 2)
In parallel with reducing our scope 1 emissions, we are also focusing on reducing our operational emissions through
strategic enhancements to our corporate real estate portfolio. By implementing three key actions, we plan to create more
energy-efficient workspaces and real estate.
Action 1: Consolidate and optimize our corporate real estate portfolio
In collaboration with the individual business divisions, we will prioritize the selective exits from, and downsizing of,
underutilized spaces in our real estate globally through 2035 and beyond. We also plan to optimize our corporate real
estate portfolio’s energy usage either via retrofitting (Action 2) or, in some cases, by relocating to more sustainable
buildings. During 2024, we achieved a 52% reduction of our scope 2 market-based emissions across the consolidated
portfolio against our 2023 baseline.
We are reducing energy consumption in our own data centers as a result of migrating to third-party co-location data
centers and cloud providers where the power usage effectiveness ratio is substantially more efficient.
Action 2: Upgrade and retrofit our corporate real estate portfolio
To effectively address our real estate energy footprint, we intend to upgrade and retrofit our real estate portfolio and fit
out in line with internationally recognized building standards, such as Leadership in Energy and Environmental Design
(LEED) by the USGBC. We expect to improve and extend the existing energy management system within the EMEA
region, with greater implementation of ISO 50001 to drive energy efficiency within our own operations.
In 2024, we achieved multiple green building certifications across our offices globally as part of our transition toward
more sustainable real estate. In Switzerland, we are renovating the Paradeplatz 6 building in Zurich, with the aim of
achieving LEED Platinum certification for the building by 2027. In Monaco, the refurbishment of our Villa Belgica building
achieved the Building Research Establishment Environmental Assessment Method (BREEAM) Excellent rating. In West
Kowloon, Hong Kong, our newest flagship office is on track to be completed by 2027. We are aiming for it to be the
most sustainable office built for our Asia Pacific operations.

Sustainability Report 2024 | Environment 46

 UBS locations LEED Platinum LEED Gold LEED Silver LEED certified

Switzerland 1 1

EMEA 5 2

Americas 5 23 5 4

Asia Pacific 11 9

Action 3: Support the decarbonization of district heating and cooling systems

Although we recognize that we do not exert any direct operational control over external district heating and cooling
systems, we plan to support their decarbonization in connection with our real estate consolidation strategy. To achieve
this objective, we intend to establish an engagement plan for stakeholder management activities within the next few
years, including fostering partnerships and exerting influence with stakeholders (e.g. local communities and utility
companies) to promote the decarbonization of district heating systems.
Lever 3: Transition to renewable electricity generation (scope 2)
The uptake of renewable electricity generation is critical for supporting the transition to a low-carbon electricity market.
Since 2020, we have been working on maximizing the use of renewable energy in our own operations globally. In
accordance with our commitments, we want to source 100% of the electricity we use from renewable-source-qualifying
generation by 2026 in line with RE100 technical guidance, in markets where it is feasible to do so.
We aim to leverage our position in the global electricity market to support the transition to a global low-carbon grid
through the key actions listed below.
Action 1: Identify and implement opportunities for direct power purchase agreements
We will regularly review our real estate ownership and lease arrangements to identify substantial, long-term opportunities
to source our electricity for these volumes directly from renewable electricity generators through power purchase
agreements. This will support the build-out of new electricity generation plants and strengthen the chain of custody
between the generation source and the end use of electricity, while decreasing the carbon content of the grid in the
longer term.
Action 2: Improve the transparency of the chain of custody for renewable energy certificates
We will work with our key electricity suppliers to improve the transparency of the chain of custody for renewable energy
certificates associated with the supply of electricity to our assets. We will ensure that existing products / electricity tariffs
meet RE100 technical criteria and we will identify opportunities to support new products / tariffs that improve our
compliance, driving a more competitive and RE100-aligned marketplace in the future.
Action 3: Build competitive renewable energy certificate supply solutions
In electricity markets where our volumes are not large enough to facilitate tariff negotiations, or where regulated markets
restrict the electricity tariff options available to us, we will continue to purchase additional renewable energy certificates
to meet our residual needs.
We will undertake competitive tendering for broker services and maintain those contracts through our corporate vendor
management practices to ensure the renewable energy certificates we purchase remain aligned to evolving technical
standards. We will also support renewable electricity generators where their products cannot be sold within local energy
products / tariffs.
Action 4: Actively contribute to consultations on renewable electricity tracking systems in markets where infrastructure
is not developed
In a few countries where we operate, the infrastructure to measure and track electricity volumes generated from
renewable sources is either underdeveloped or non-existent, compromising the availability of renewable energy
certificates in line with RE100 technical criteria. In these areas, we will be a strong advocate for the development of
tracking infrastructure, participating in consultations to help change the market, with a view to extending our coverage
of electricity from renewable sources into countries where renewable energy procurement is unfeasible.
Action 5: Assess and install on-site renewable generation of electricity at our owned assets
We regularly review our real estate ownership and lease arrangements to identify those assets where we expect to have
long-term operational control and available infrastructure (e.g. roof space) that could facilitate the installation of on-site
renewable generation of electricity. We will continue to make the necessary investments in on-site renewables where
physically and economically feasible, ensuring we minimize our dependency on grid offerings and reducing the risk of
unforeseen market developments that may compromise our ability to source renewable electricity tariffs or renewable
electricity certificates.

Sustainability Report 2024 | Environment 47

Carbon removals and credits
We plan to purchase technological carbon removal credits to neutralize residual emissions for our 2035 scope 1 and 2
net-zero target. We estimate that we will eventually retire around 5,000 metric tons annually based on our existing
contractual agreements for this purpose. In 2022, we signed two landmark partnerships with Climeworks and neustark
to provide us with carbon removal credits. Both companies are pioneers in innovative carbon removal technologies. We
were also among the five companies that joined the NextGen CDR Facility (NextGen) as founding buyers to scale up
carbon removal technologies and catalyze the market for high-quality carbon removal. These partnerships continued in
2024.
Furthermore, since 2007, we have been committed to purchasing biogenic carbon reduction and removal credits that
correspond to 100% of our air travel emissions for the Group. In 2024, we retired 75,211 credits from biogenic sinks for
our voluntary air travel commitment, with an average “A” rating from third-party carbon ratings agency BeZero Carbon
at the time of retirement.
We only purchase credits from technological and biogenic sinks that are assessed against the Integrity Council for the
Voluntary Carbon Market (ICVCM) Core Carbon Principles and verified against either the Gold Standard or Verra, among
other international standards. Our carbon credit purchases are strictly aligned to our internal Carbon and Environmental
Markets Guideline, which sets out minimum requirements for such market instruments.
We acknowledge that standards and methodologies for carbon credits are still evolving. We will continue to improve our
portfolio through market partnerships and industry engagement toward a standardized quality benchmark for the future.
› Refer to “Key policies and principles” in the “Appendix 1 – Governance” section of this report for more information about our
Carbon and Environmental Markets Guideline

Carbon credits canceled (UBS Group)

For the year ended
31.12.24
Carbon credits canceled in reporting year (tCO2e) 75,211

Internal carbon pricing

We continue to apply a forward-looking shadow price of USD 400 per metric ton, covering all our scope 1 and net scope
2 emissions, to incentivize the use of low-emission technologies in real estate projects. Through this shadow price, we
also aim to incentivize the replacement of fossil-fuel heating systems, real estate relocation and fuel transition in critical
engineering power systems. The price applied reflects the blended mix of permanent carbon removals that are required
to neutralize any residual emissions that cannot otherwise be abated as part of our existing long-term contracts to
purchase high-quality credits from technological sinks, as described in the section above.

GHG intensity per net revenue

Total revenues for the year end 2024, as disclosed in the UBS Group income statement, have been used as equivalent to
net revenues for the purpose of calculating the GHG intensity per net revenue.
The total GHG emissions (location- and market-based) exclude scope 3, category 15.

GHG intensity per net revenue (UBS Group)

For the year ended
31.12.24 31.12.23
Total GHG emissions (location-based) per net revenue (t CO2e / USD m) 24.61 37.38
Total GHG emissions (market-based) per net revenue (t CO2e / USD m) 22.13 34.31

Our environmental targets and performance in our own operations

Environmental performance and key focus areas
We also work toward minimizing our own operational footprint across key environmental focus areas and supporting
our employees, suppliers and clients to do the same. We have identified the following key environmental focus areas
beyond climate: waste, paper and water; travel; and biodiversity.
Waste, paper and water
In 2024, we reduced our landfill waste by 7.8% compared with 2023, resulting in a global decrease of approximately
148.7 metric tons. In 2021, we published a global target that reflected our aim to reach zero waste to landfill by 2025
in locations where we have influence. After conducting local market research and exploring pilots in each region for the
implementation of zero waste to landfill, we have concluded that it is not operationally feasible for us to reach this target.
It will therefore be retired. We continue to measure our waste-to-landfill tonnage and aim to explore options to set a
target that is more in line with market and operational reality. Our ISO 14001 environmental management program and
additional contract spot checks ensure that our waste management partners operate in accordance with contractual and
legislative obligations. Globally, our total waste volume decreased significantly in 2024 compared with 2023. We will
continue to raise employee awareness to further increase the portion of recycled waste.

Sustainability Report 2024 | Environment 48

Waste and related waste streams UBS Group

10,000
8,640 8,381 8,484
6,996
Waste in tons

62%
57%
52%
53%

0
2021¹ 2022¹ 2023 2024
% waste recycling
Total waste recycled
Total waste non-recycled
1 2021 and 2022 pro-forma include former Credit Suisse data.

Paper consumption per full-time employee decreased by 22.4% in 2024 compared with 2023, reflecting the impact of
increasing digitalization across the firm, awareness campaigns aimed at our employees, some restrictions on internal
printing and our ongoing efforts to reduce the number of printers in our offices. While the total paper consumption
decreased significantly, the share of sustainable paper in the remaining volume decreased compared with 2023. Of the
total amount of paper used (printing paper and paper products), 49.9% was either sourced as recycled or was certified
by the Forest Stewardship Council or an equivalent body. These measures help reduce the environmental impacts
associated with paper production and manufacturing processes, such as deforestation and energy usage. We will
continue to work with our vendors to increase the share of evidenced sustainable paper and paper products in the course
of the coming year.
To enhance water efficiency in our facilities, we have expanded our office environmental programs. For example, we
monitor water use and optimize flushing times and overflow management. Our water usage increased by only 1.7% in
2024 compared with 2023, despite the higher levels of staff working in our offices.
Travel
In 2024, we saw an increase in business travel. Our travel volumes (358m Pkm) for the combined organization following
the integration of Credit Suisse are substantially below the UBS-only pre-pandemic levels of 2019 (459m Pkm). We remain
committed to putting sustainability at the heart of our business travel program. Reflecting this commitment, we have
focused our efforts on three key areas:
– strengthening our reporting with the enhanced carbon intensity metrics, thereby providing comprehensive insights
into travel-related emissions, both before and after trips, to measure and manage our travel footprint;
– updating our travel policy to encourage employees to opt for eco-friendly transportation options whenever possible,
and strengthening our partnerships with hotels that have embraced sustainable practices, marking them prominently
with green flags at the point of sale to help our staff make informed and conscious choices; and
– continuing to purchase high-quality carbon offsets that correspond to 100% of our air travel emissions for the Group.
Biodiversity
We have taken steps to increase biodiversity across our offices and raise awareness among our staff. For example, we
have installed green roofs at selected office locations, combined with employee volunteering activities, such as Clean-Up
Day and a program to highlight the critical role that bees play in our natural ecosystem, which all served to shine a
spotlight on the critical role of biodiversity.
Our reporting on environmental targets and indicators in our own operations
The information about our environmental targets and indicators is included in our yearly GHG emissions report, which is
prepared in accordance with the ISO 14064 1:2018 standard. This report is subject to yearly external verification in
accordance with the ISAE 3410 standard and considering the ISO 14064 3:2019 standard.
We have successfully passed the ISO 14001 audits every year since implementation, including 2024. In the EU and the
UK, our activities (excluding legacy Credit Suisse locations) are certified according to the ISO 50001:2018 energy
management system standard. These sets of extensive audit standards ensure the appropriate policies and processes are
in place, both for the management of environmental and energy topics within our own operations and for affirming their
daily implementation.

Sustainability Report 2024 | Environment 49

Environmental targets and performance in own operations1
Actuals Progress
(for the year ended) Targets (2024 vs baseline)
GRI2 31.12.24 31.12.23 31.12.22 2025 2030 2035 Baseline % change Status7
Scope 1 and net scope 2 greenhouse gas emissions in t CO2e 305-1,
30,274 46,278 61,627 (57%) (90%) 46,2783 (35%) green
(reduction target in %) 305-2
Energy consumption in GWh (reduction target in %) 302-1-e 679 755 866 (35%) 7553 (10%) green
Share of renewable electricity 302-1 99.8% 95.6% 91.1% 100% 100% 76.6%4 30% green
Paper consumption in kg per FTE (reduction target in %)5 301-1-a 21.5 27.7 26.9 (50%) 54.94 (61%) green
Share of sustainable paper (recycled and FSC) 301-1-a-ii 49.9% 71.5% 52.7% 100% 63.2%4 (21%) amber
Waste in kg per FTE (reduction target in %)5 306-3 62.7 69.8 66.3 (10%) 133.54 (53%) green
Zero Waste to Landfill6 306-5-c-iii 24.8% 22.2% 30.5% 0% 31.6%4 (22%) amber
Waste recycling ratio 306-4 52.9% 57.4% 52.2% 60% 50.2%4 5% amber
Water consumption in m m³ (reduction target in %) 303-5 1.23 1.21 1.04 (5%) 1.334 (8%) green
Legend: CO2e = CO2 equivalents; FTE = full-time employee; GWh = giga watt hour; km = kilometer; kg = kilogram; m m³ = million cubic meter; t = metric ton

1 Refer to the “Environment” section of the Supplement to the UBS Group Sustainability Report 2024, available at ubs.com/sustainability-reporting, for detailed information about our environmental indicators.
Reporting period 1 January - 31 December. 2 Reference to GRI Sustainability Reporting Standards (see also www.globalreporting.org). 3 Baseline year 2023 4 Baseline year 2019 5 FTEs are calculated on an
average basis including contractors 6 In locations where UBS has influence and where alternatives are available. This is the last time we are reporting against this target as it is being retired. See details in section
'Waste, paper and water' 7 Green: on track; Amber: improvements required

Environmental performance and targets

Paper from
Energy reduction1 sustainable sources
−10% −35% 50% 100%

Waste (per FTE)

reduction2 Water reduction2
−53% −10% −8% −5%

2024 2025 targets 2030 targets

1 Reduction target relates to 2023 baseline. 2 Reduction target relates to 2019 baseline.

Sustainable Technology Guild

The Sustainable Technology Guild continues to raise awareness of sustainable software development among our
technology teams that will have a positive environmental impact through the optimization of technology energy use. It
is actively developing measurement solutions for the applications hosted in our data centers and those in the public cloud.
The primary focus of the Guild continues to be minimizing the energy consumption of our technology estate and the
introduction of green software engineering practices.

Sustainability Report 2024 | Environment 50

Managing the environmental impact of our supply
chain
Our key climate-related actions
Increased transparency and reporting of climate information by vendors
We are tracking the scope 1 and 2 emissions reporting of our GHG key vendors. Vendors that collectively account for
more than 50% of our calculated scope 3, category 1, 2, 4 and 9 emissions are classified as “GHG key vendors.” On this
basis, we identified 95 GHG key vendors.1
Overview of climate-related disclosures of our GHG key vendors (UBS Group)
20222 2023 2024

GHG key vendors that disclosed 49% (41 / 83) 65% (62 / 95) 78% (74 / 95)
emissions and declared in CDP a
stated net-zero target1

1 Shows GHG key vendors that disclosed emissions and declared in CDP a stated net-zero target versus GHG key vendors that did not disclose emissions and / or did not declare in CDP a stated net-zero target.
We do not independently verify our vendors’ goals or progress toward them. 2 2022 numbers are based on 83 GHG key vendors identified at that time and did not include Credit Suisse vendors. We have since
revised and updated the list of GHG key vendors from 83 to 95 in 2023 to include Credit Suisse vendors. Numbers have, therefore, been tracked against 95 vendors from 2023 onward.

In 2024, 70% (341 out of 487) completed voluntarily climate disclosures on the non-profit, third-party platform run by
CDP. Though this is the same as the percentage achieved in 2023 (307 out of 440), the absolute number of vendors
completing their disclosures increased 11% from 307 in 2023 to 341 in 2024.
Raising awareness on environmental matters through the sustainable procurement guide
In 2024, we curated a sustainable procurement guide to support vendors. From environmental certification to waste
management and sustainability reporting, this guide provides insights on how our vendors can take significant steps
toward reducing their environmental footprint, promoting ethical and inclusive practices in their supply chain and
contributing to the well-being of ecosystems.
› Refer to our climate disclosure guideline for vendors and our sustainable procurement guide for vendors, available at
ubs.com/suppliers, for more information
Reduce supply-chain-related carbon emissions
We reduced our scope 3, category 1, 2, 4 and 9 emissions by 28% to 0.81 million metric tons of CO2e in 2024 from
1.13 million metric tons of CO2e in 2023. This reduction was achieved through a combination of: (i) spend reduction; (ii)
carbon reduction initiatives; (iii) closure of vendor facility offshore development centers (ODCs); (iv) updated emissions
factors (including updated multi-regional input / output emission factors per industry, updated and higher number of
supplier-specific emission factors used (where disclosed and verified) and, for cloud, activity-based emissions data used);
and (v) improved data quality and refinement of calculation methodology. Our focus is to reduce our emissions further
by identifying and implementing multi-year carbon reduction initiatives.
Supply-chain-related carbon emissions

1.13

0.81

−28%

2023 2024

Calculated scope 3, categories 1, 2, 4 and 9 emissions in million metric tons of CO2e

1 Unique vendors in line with UBS’s vendor inventory. In 2023, we have revised and updated the list of GHG key vendors from 83 to 95 to include Credit Suisse vendors.

Sustainability Report 2024 | Environment 51

Managing our supply chain responsibly
Through our Responsible Supply Chain Management (RSCM) policy, we include ESG standards in our sourcing and
procurement activities.
Identifying, assessing and monitoring high-impact vendors
In 2024, 100% of new vendors were screened for environmental and social risks. In 2023, the same screening process
was conducted for 100% of new vendors. In addition, we identify high-ESG-impact vendors when establishing new
contracts or renewals based on whether the vendors are providing goods and services that could either have a substantial
environmental and social impact or be sourced in markets with potentially high social or governance risks. Such high-
impact vendors are assessed against our RSCM policy. These vendors are required to provide disclosures about their
management practices along with corresponding evidence, which is evaluated by a specialist team. Actual and potential
negative impacts considered in the assessment of vendor practices include, but are not limited to, the following:
– adverse environmental impacts due to inefficient use of resources (e.g. water and energy), poor environmental
practices and emissions during the life cycle of a product;
– hazardous substances, emissions, pollutants and the limited recyclability of products that adversely affect people,
nature and the environment;
– modern slavery, forced labor or child labor;
– unfair employment practices, such as low wages, excessive overtime and the absence of occupational health and safety
measures;
– anti-corruption; and
– insufficient management of subcontractors and suppliers regarding sustainability aspects.
Should our assessment reveal any non-compliance with our policy, we define and agree, together with the vendor, on
vendor-specific improvement measures and we closely monitor the implementation progress of these remediation actions.
A lack of improvement may lead to the termination of the vendor relationship. Vendors are reassessed after 24 months
to ensure that, even in long-term contracts, our expectations regarding environmental and social aspects are being met
and continuously supervised. We also regularly screen active vendors as part of our sustainability and climate risk control
processes.
All high-impact vendors go through assessments against our RSCM policy. We also undertake assessments on some non-
high-impact vendors where we have significant ongoing relationships. In 2024, we carried out risk-based due diligence
assessments of 445 vendors of newly sourced contracts, renewals and ongoing contracts (versus 266 UBS vendors in
2023 and 15 Credit Suisse vendors). If a high-impact vendor does not provide appropriate evidence in line with our
expectations, that will result in corrective action needing to be taken by the supplier to implement a policy and / or
process for the non-compliant requirement within 12 to 18 months.
To drive positive change in our supply chain, we also require our vendors to improve their management practices in line
with our sustainability goals and industry best practices. Of the vendors assessed, 33% were considered in need of
improving their management practices (versus 42% in 2023). Specific remediation actions were agreed upon and
implementation progress is being closely monitored. We have increased our overall RSCM assessment coverage of vendors
by spend to 51% in 2024 from 20% in 2023. Contracts in high-risk countries include specific contractual requirements
relating to environmental management, human rights and labor rights. If we were to become aware of a case of modern
slavery or human trafficking occurring within our direct supply chain, we would address it through our governance
processes. Depending on the severity of the case, or if satisfactory remediation were not possible, the supplier relationship
could be terminated.
In 2024, none of our vendor relationships were terminated as a result of our assessments and no human rights issues
involving active, directly contracted vendors were identified or reported. In part, this was due to having carried out our
assessment process prior to signing contracts. We have also trained our supply chain function staff on human rights and
modern slavery.
Embedding supplier sustainability in our everyday activities
The goods and services we buy, and where and whom we buy them from, are all crucial elements of our sustainability
impact. We are committed to making a positive environmental and social impact, and we expect the same from our
suppliers. Our Global Procurement and Vendor Management Policy and Guidance considers the ESG impacts of products
and / or services when selecting a vendor. In 2024, this policy was extended to also cover Credit Suisse and is being
applied to Credit Suisse legacy vendors as well.
In 2024, we trained our vendor relationship managers on ESG to enable them to have impactful discussions on ESG
performance with their vendors. As an example, in 2024, we noted an improved year-on-year CDP rating for one of the
IT service providers that we have been engaged with over the last few years. The improvement in its ESG performance is
a significant milestone that underscores the positive influence of our partnership.
We expect our suppliers to uphold high standards of ethics, mitigate risks and honor global and local labor laws, human
rights and environmental responsibilities. Suppliers are required to follow our global supplier policies, which include a
policy on anti-bribery and corruption, sanctions, fraud and anti-facilitation of tax evasion.

Sustainability Report 2024 | Environment 52

Inclusive growth in the supply chain
In 2024, we continued our efforts globally to support inclusive growth by using diverse suppliers that are often
underrepresented in supplying the needs of major corporations. These are firms certified / recognized by a local / national
government authority or advocacy organization, including, but not limited to, those certified as women-owned; minority-
owned, including location-specific qualifications such as aboriginal-owned in Canada and indigenous-owned in Australia;
veteran-owned, including ownership by service-disabled veterans; persons-with-disabilities-owned; LGBTQ+-owned;
disadvantaged-owned, including historically underutilized businesses; and small business enterprises, as defined and
recognized by their respective national or state government criteria.
We identify and include diverse vendors as part of our “rule of one” guidance which aims to include at least one diverse
supplier in every competitive tender. The “rule of one” guidance does not give a diverse supplier an added advantage in
the competitive tender, but provides an opportunity for a diverse supplier to participate in the tendering event. The
success of the diverse supplier’s bid is based on their own competitive merits with respect to cost, quality and
sustainability, without further consideration of the diversity of the supplier. Globally, our diverse spend accounts for 9%
of third-party spend, up from 8.5% in 2023. The share of diverse spend has increased despite a significant reduction in
overall third-party spend from 2023 to 2024.
› Refer to ubs.com/suppliers, for more information about how we work with our suppliers, including our Responsible Supply Chain
Management policy, our Supplier Diversity focus and our Supplier Code of Conduct
› Refer to our “Global Supplier Policies,” available at ubs.com/global/en/our-firm/suppliers/contracting-standards.html, for more
information about our standard contractual terms with suppliers

Sustainability Report 2024 | Environment 53

Supporting our climate approach: key enabling
actions
Beyond the individual actions related to supporting our clients’ low-carbon transition and reducing the environmental
impact of our own operations and supply chain as described in the above sections, we have identified five key enabling
actions as listed below to support the implementation of our climate approach and “enable” the implementation of more
specific targets and actions.

Governance and accountabilities (1)

Our sustainability- and climate-related activities are overseen at the highest level of our organization, and we have a
clearly defined Group-wide sustainability governance in place, including a dedicated climate program.
› Refer to the “Governance” section of this report for more information about our sustainability governance

Industry, government and public sector engagement (2)

We actively participate in political discussions to share our expertise on proposed regulatory and supervisory changes and
engage in trade associations’ exchanges relating to sustainability and climate (e.g. via the International Institute of
Finance, the Association for Financial Markets in Europe and the Swiss Bankers Association). In Switzerland, where we
are headquartered, we participated in the consultation for a new Swiss Financial Market Supervisory Authority (FINMA)
circular on nature-related financial risks in 2024, where we expressed our support for an approach that is aligned with
the Basel Committee on Banking Supervision (BCBS) Principles for the effective management and supervision of climate-
related financial risks. Furthermore, we launched the Swiss Climate Scores, as we believe they are a key instrument for
further increasing transparency on the climate alignment of financial products. On a regional basis, we engage with policy
makers in the EU, the UK, the Americas and key Asia Pacific jurisdictions. In particular, we have participated in several
industry association efforts in the EU regarding consultations issued by prudential regulators (e.g. the European Banking
Authority draft guidelines for the identification and management of ESG risks under the Capital Requirements Directive).

Training and culture (3)

Educating our workforce on sustainability and sustainable finance is an important part of ensuring we meet our
sustainability and climate ambitions. In 2024, we continued to coordinate the delivery of sustainability training and
awareness activities across UBS through a dedicated sustainability education workstream, with the number of headcount
instances of specialized and awareness training totaling 430,405. For example, the Sustainability and climate risk unit
trained relevant staff on sustainability and climate risks along with emerging risks such as greenwashing.
Elsewhere, in 2024, we provided a variety of climate-related trainings on a Group-wide basis. These included:
– a series of information sessions following the publication of our UBS Sustainability Report 2023 to raise awareness and
understanding of our own progress in relation to our climate objectives; and
– climate-related training as part of our all-staff Global Learning Week initiative, including webinars focused on net-zero
fundamentals, nature, greenwashing and impact accounting.
We expect sustainability training and education to become an increasing focus for regulators in the coming years. We
keep abreast of this changing landscape through regular updates with our regulatory monitoring teams and continue
developing climate- and net-zero-specific training for employees and the Board of Directors.
› Refer to the “People and culture make the difference” section of this report for more information about training and culture

Data and analytics (4)

We implemented various data and analytics solutions to better service our clients and operations.
As part of the efforts to integrate Credit Suisse, we needed to develop a foundational toolset for calculating, monitoring
and reporting the combined firms’ climate-related metrics covering financing corporate loans and facilitated emissions.
In 2023, we successfully completed the related building activity and met all the quality assurance criteria set by our
internal control functions.
In 2024, we worked on defining a more strategic and scalable toolset. Guided by our technology and ESG data strategy,
we developed a fully Cloud-based toolset, which will be operational in 2025. The new toolset will enable us to enhance
and more frequently calculate, monitor and report our climate-related metrics. This will allow our business divisions to
make more informed decisions on their decarbonization pathways and transition financing activities, and facilitate
tracking of progress against our lending sector decarbonization targets.
The new toolset will also enable us to more effectively implement changes related to new climate-related standards,
methodologies and metrics.

Sustainability Report 2024 | Environment 54

Company Transition Assessment Scorecard (5)
In 2024, we introduced the Company Transition Assessment Scorecard (CTAS) to evaluate how advanced a company is
on its path to decarbonization. The CTAS was designed with multiple future purposes in mind, including managing
climate transition risks, supporting clients’ climate transition efforts through engagement and product development and
business planning.
The CTAS categorizes companies into one of eight climate transition readiness categories using a rules-based approach.
This approach is based on sector-agnostic criteria covering emissions disclosure, decarbonization commitments and
targets, decarbonization plans, and the actual carbon performance of the company.
Initially, and in response to regulatory requirements, the CTAS is used as an input for our Climate Risk Rating Models
(CRRM), in particular the transition risk rating model. This model assigns a climate transition risk rating at the counterparty
level, which is then used across various processes across: (i) risk identification and measurement; (ii) monitoring and risk
appetite setting; (iii) risk management and control; and (iv) risk reporting and disclosure. Although a company’s CTAS
score, when available, serves as an input into the CCRM and the credit selection process, it is not used as the sole criterion
for credit application decisions.
Companies are categorized by utilizing publicly available data from external third-party sources, which means it is limited
to public companies providing relevant disclosures. The CTAS will be annually reviewed and updated. The scope of the
CTAS may be broadened in the future by incorporating additional databases or making enhancements that enable the
inclusion of companies lacking public data.
Overview
Module Factor Unaware Aware Strategic 1 – Strategic 2 – Strategic 3 – Aligned to net Achieving net Climate
Committed to Aligning Aligned zero zero solution
aligning toward net targets and
zero plans

Emissions Disclosure of GHG ✓ ✓ ✓ ✓ ✓ ✓

disclosure emissions
Long-term net-zero ✓ ✓ ✓ ✓ ✓
commitment
Medium- / short-term ✓ ✓ ✓ ✓
net-zero targets
Commitments
and targets Net-zero commitment
recognized by third ✓ ✓ ✓
party
✓
Interim targets ✓ ✓ ✓
validated by third party
High-level plan ✓ ✓ ✓ ✓
Decarbonization
plan Credible plan ✓ ✓ ✓

Carbon performance in ✓ ✓
Carbon line with pathway
performance Carbon performance at ✓
(or close to) net zero
Note that the categories from “Unaware” to “Achieving net zero” reflect a company’s progress toward reducing its negative impact on the environment. On the other hand, the category “Climate solution” is an
overarching category that goes beyond this and includes companies enabling the transition through their business model by generating green revenues and aligning their capital expenditures accordingly.
› Refer to the “Managing sustainability and climate risks” section of this report for more information about how we manage
financial and non-financial climate transition risk

Sustainability Report 2024 | Environment 55

Supporting our approach to climate – climate-related
materiality assessment
Methodology for assessing climate opportunities
Supporting the global economy’s transition to net zero by 2050 will require vast amounts of investment. Banks can help
to effectively and efficiently allocate the capital necessary for the transition, which in turn creates opportunities for the
banking sector and its client base. Estimates of the overall opportunity vary, but the United Nations Framework
Convention on Climate Change (the UNFCCC) suggests the global transformation to a low-carbon economy is expected
to require investment of at least USD 4trn to USD 6trn per year.1
To assess the opportunities that are specifically relevant to UBS, we evaluate a range of potentially relevant climate-related
categories, encompassing commercial products and services, social finance, resource efficiency and energy consumption,
operational resilience and green funding. Our assessment has been performed annually since 2021.
Our current methodology follows a two-step approach: i) identifying relevant opportunities; and ii) assessing their relative
materiality for the Group over the short, medium, and longer terms. It is important to note that sustainability overall, and
climate specifically, are continuously evolving topics, for example in terms of applicable political and regulatory
frameworks, as well as client and market dynamics, which means our annual assessment always represents a point-in-
time analysis and needs to undergo continual challenging and review, so that it consistently provides an accurate
representation of our opportunity space on climate.
We have identified individual opportunities across four distinct areas of our business.

Commercial products and services

Identifying commercially relevant, climate-related business opportunities starts with the sustainable finance ambitions
annually set by our business divisions (Non-core and Legacy excepted). The link to our ambitions ensures that relevant
opportunities are systematically screened and selected. We identify business opportunities that can be realized through
our existing or new climate-related products and services.
Individual climate-related products and services are organized into six categories, broken down into 11 sub-categories. A
survey-based, qualitative materiality assessment2 is performed at the sub-category level by an internal panel of sustainable
finance experts. The expert panel assesses the expected relative materiality of the individual sub-categories, along with
the time horizon over which these are expected to start contributing to UBS’s business outcomes. Materiality here is
interpreted in terms of three equally weighted dimensions: i) revenue potential; ii) strategic relevance; and iii) impact on
the environment and stakeholders (“double materiality”). The scores are subsequently aggregated into UBS Group-level
values for each of the product categories.
The assessment is done in a qualitative manner based on expert judgment in order to take account of the inherent
difficulties involved in making more precise and / or quantified assessments of future commercial developments. This
applies particularly in an area such as climate, where regulatory and policy frameworks, and market conventions and
industry trends, are still subject to considerable change and evolution.
The following commercial categories of products and services were included in our assessment:
Climate-related investment products
These products include, for example, our net-zero-ambition, climate-aware, climate-transition, low-carbon and Paris-
Agreement-aligned portfolios, carbon-referencing structured products and dedicated climate-focused investment
modules. We also see opportunities within real estate and private market investment strategies related to climate
mitigation, such as batteries and cold storage or energy-efficient properties.
Carbon-related financial services and products
This includes helping clients in different business lines identify and assess opportunities related to carbon credits (in both
compliance and voluntary markets).
Climate-related financing products and solutions
These include green balance sheet lending to corporate and private clients, structuring and underwriting green bonds
for corporate and sovereign issuers, and supporting and financing innovative climate start-ups, along with green
infrastructure finance (e.g. renewable energy).
Advice on strategic climate opportunities
This includes corporate advisory work incorporating climate factors, for example in valuation and analysis, and, more
specifically, advising on transactions where climate considerations are clearly identifiable as part of the transaction
rationale from the point of view of either an acquirer or a target company.

1 Based on information from the UNFCCC, see https://unfccc.int/sites/default/files/resource/cma2022_L21_revised_adv.pdf.

2 To guide this assessment, we have used the definition for materiality as provided by the Global Reporting Initiative (the GRI).

Sustainability Report 2024 | Environment 56

Thematic research
This includes in-depth climate-related research and thought leadership work, looking across and delving into relevant
developments for the transition to a low-carbon economy, including at a sectoral level, and links to the financial industry,
financial markets and scientific research. In a highly dynamic field, climate-related research plays a key role in keeping
our clients and ourselves abreast of key trends.
Data analytics and metrics
These include data-driven analytical tools available in various business lines, which are being continually developed and
further refined to cover relevant sustainability- and climate-related aspects in greater depth and breadth. Examples of
their application include the portfolio management process, quantitative modeling, climate exposure analytics within
client reporting and data-powered strategic insights work. We also have a range of tools and calculators focusing on
aspects such as emissions, renovations or subsidies, which support our clients’ decision-making on their decarbonization
journey.
Platforms
These include innovative platform solutions enabling clients to gain access to climate-related products such as green
mortgages and, in future, voluntary carbon credits. Such platform solutions enable UBS to scale up and achieve an impact
going beyond some of our own operational limitations (e.g. our balance sheet, geographical reach or product range).

Social Impact
In addition to our commercial offering, our clients have access to solutions that help them to realize their philanthropy
goals, including climate-related ones. Through our Philanthropy Services teams within Social Impact, we provide grants
and social finance investments for climate-related projects within the environment and climate portfolio of the UBS
Optimus network of foundations. Its environmental and climate strategy focuses on two pillars, “Sustainable Land Use”
and “Coastal and Marine Ecosystems,” and helps clients to identify and select potential opportunities, with an emphasis
on supporting development and increasing financing for climate mitigation, resilience and biodiversity enhancement
using nature-based solutions. Our program directors for climate and environment assess and select these opportunities
in terms of their fit with the UBS Optimus network of foundations’ climate and environment strategy, the quality of the
organization’s team and track record, and the potential for scale, and also for their expected results in key impact areas,
including work on climate change mitigation, adaptation and enhancing biodiversity. They are then reviewed and
approved by a senior-level approval committee. Experts from our Philanthropy Services and the UBS Optimus network of
foundations teams provide a summary assessment of the materiality of this portfolio of projects, which is then included
in the overall assessment.
Our philanthropy opportunities are assessed for materiality and have scores assigned across the two dimensions of
mitigation and adaptation by experts from Social Impact. While we consider these opportunities relevant for our
assessment and for UBS as an organization, they do not carry direct revenue potential. Within the materiality score, we
rate the revenue potential as zero, distinguishing philanthropic opportunities from the commercially relevant
opportunities. By definition, philanthropy opportunities always have a lower score than commercial opportunities, from
a financial relevance perspective.

Own operations
We are committed to reducing our operational impact on the environment and have set clear reduction targets for our
use of resources, as well as formulating ambitious net-zero commitments. Experts from our Group Corporate Services
team, responsible for managing our operational footprint, have assessed the materiality of opportunities arising from
efforts in this area. These opportunities can be grouped into three distinct categories: resilience, energy consumption and
resource efficiency.

Climate-related funding
Through our Green Funding Framework and in partnership with relevant business lines, we continually assess new
opportunities for climate-related funding that could contribute to expanding our investor base or achieving favorable
funding costs. As part of this assessment, experts from Group Treasury review the materiality of opportunities for funding,
such as green or sustainability-linked bonds.
› Refer to the “Supporting opportunities” section of this report for more details about our sustainable and climate finance product
offering and achievements in 2024
› Refer to the “Social Impact” section of this report for more details about the activities of Social Impact
› Refer to the “Environment” section of this report for more details about our in-house environmental management
› Refer to our Green Funding annual investor report, available at ubs.com/greenbonds

Sustainability Report 2024 | Environment 57

 Materiality results for 2024 climate-related opportunities
The summarized results for UBS from the various expert assessments in 2024 and building on prior-year outcomes are
displayed in the infographic below, placing individual categories within low / medium / high materiality and short- /
medium- / long-term time-horizon segments. We define short-term as less than three years, medium-term as three to
10 years and long-term as beyond 10 years. Categories are displayed on a relative scale. Given our capital-light business
model, it is in line with our expectations that climate-related investment products are the highest-ranked immediate
commercial product opportunity. The highest relative degrees of materiality are also seen for data analytics and metrics
and thematic research as key enablers for a wider range of other business opportunities with clients. Resilience is seen as
the most important climate-related operational opportunity.
Time horizon
short-term medium-term long-term
high

Data analytics
and metrics
Climate-related
investment products
Thematic research

Platforms
Climate-related financing
Materiality

products and solutions Carbon-related financial

medium

services and products

Resilience

Advice on strategic
climate opportunities
Social Impact

Energy consumption

Climate-related funding
low

Resource efficiency

Commercial products Philanthropy services Resource efficiency, Climate-related

and services and Optimus Foundation energy consumption funding
and resilience

Sustainability Report 2024 | Environment 58

Assessing the materiality of climate-driven risks
Impacts from climate-driven risks arise through changing climate conditions (physical risk) and efforts to mitigate the
effects of a changing climate (transition risk). These climate risk drivers affect banks, the financial system and the broader
economy through both micro- and macroeconomic channels.
Annually, the sustainability and climate risk (SCR) unit coordinates a systematic risk materiality assessment of climate-
related risks in accordance with the ISO-14001 environmental management standard. The degree of materiality is
determined by assessing the financial product or service and the associated climate risks. Items rated as having an
increased potential risk are mapped to relevant risk controls. The assessment considers transmission channels, risk drivers,
additional amplifiers and / or mitigants and the full range of time horizons.

Risk-rating process
First, UBS evaluates the inherent risk posed to UBS at the product / service level utilizing an expert-based framework
(aligned with Basel Committee on Banking Supervision guidance) through the following key transmission channels:
(i) traditional risk category, across financial and non-financial risks (e.g. liquidity for financial, regulatory compliance, or
reputational for non-financial);
(ii) risk driver (e.g., climate policies, low-carbon technology for transition risk) and impact drivers (e.g. creditworthiness)
considering potential impact (e.g. probability of default); and
(iii) additional risk amplifiers (e.g. macroeconomic feedback loops) and / or risk mitigants (e.g. internal controls).
Inherent risk ratings are given on a qualitative scale ranging from low to high.
Then, overall proximity of UBS activities to potential negative impact on climate is evaluated alongside the risk-rating
process, resulting in an impact rating at the product / service level based on the same scale.
The most relevant time horizon for inherent risks and impacts is determined ranging across short-term (less than three
years), medium-term (three to ten years) and long-term (beyond ten years).
Initial ratings and time horizons are proposed by leveraging internal subject-matter expertise, scientific and regulatory
publications, market trends analyses, risk monitoring, transaction landscape and the relevant business and / or product
model. The qualitative expert-driven initial ratings are then reviewed and approved in partnership with relevant business
division representatives.
Finally, inherent risk ratings and impact ratings across products and services are aggregated to Group level. The climate-
driven risk ratings by risk driver and traditional risk category (shown on the Y-axis on the chart below) are plotted against
the time horizon (shown on the X-axis on the chart below).

Assessment outcome
In the graph below, we show the climate-driven risk ratings by risk driver (light gray) and traditional risk category (dark
gray). For traditional risks, we aggregate results into financial risk categories, including credit, market, treasury, and
liquidity risks, and non-financial risk categories, including business, continuity, compliance, and reputational risks.
Physical risk (D1) is assessed as potentially lower risk to UBS in comparison to transition risk (D2-market sentiment and
D3-policy). This is primarily due to UBS’s product footprint and greater uncertainty associated with the timing and impact
of climate-related transition risks.
Selected non-financial risks (Reputational-R2, R3.2-NFR Compliance) are rated as relatively higher risk to UBS, due to the
focus on regulatory compliance (banks being regulated on climate risk management) and liability, as well as a regulatory
focus on sustainable product labeling (truth-in-marketing regulations). Due to UBS’s established approach to
sustainability- and climate-driven business risks (R4), these are rated lower when compared to, for example, inherent
reputational risk exposure.
Climate-driven liquidity (R 1.3) and market and treasury risks (R 1.2) are assessed as having relatively lower potential to
affect UBS in the short term, in comparison to credit risk (R 1.1), which is assessed as having higher potential to affect
UBS in a comparable time horizon, due to the overall UBS portfolio characteristics. This is mainly driven by potential direct
or indirect transition costs, or exposure to chronic and acute physical risks in locations likely to be impacted by climate
change. Such effects could lead to a deterioration in creditworthiness, which in turn would have an impact on Expected
Credit Losses (ECLs).
› Refer to "Note 20 Expected credit loss measurement” in the “Consolidated financial statements” section of the UBS Group Annual
Report 2024, available under “Annual reporting” at ubs.com/investors, for supplementary information about the assessment of
impact of sustainability and climate risk on the weighted-average ECL

Sustainability Report 2024 | Environment 59

 Climate-driven risks by risk driver and risk type
2024 Inherent average climate risk and impact
highest risk

R2-Reputational
R3.2-NFR compliance
Risk to UBS

R1.1-Credit risk
D3-Policy
D2-Market sentiment
R3.1-NFR continuity

D4-Technology
R4-Business
D1-Physical

R1.3-Liquidity risk R1.2-Market and Treasury

lowest risk

short-term Time horizon long-term

Physical risk drivers
D1-Physical: Impacts from extreme weather events and incremental climate change may affect the value of physical assets
that UBS owns and finances. These impacts should be diligently addressed in accordance with UBS’s financial risk
assessment. We consider the risks to our own physical assets through our comprehensive business continuity planning
and physical climate risk identification process. Incremental changes in climate (e.g., rising temperatures and changes in
precipitation patterns) can exacerbate extreme events, making them more frequent and severe, which in turn affects
economic output and productivity. Such events could reduce the value of properties held as collateral. We see adverse
weather risks occurring more frequently in the short term. The relevance of physical risks equally derives from
geographical and sectoral disaggregation. Based on physical risk heatmaps, our exposure to climate-sensitive regions is
considered moderately low. Similar conclusions are reached based on the sectoral disaggregation of our businesses.
Transition risk drivers
D2-Market sentiment: Protecting our clients’ assets is a strategic pillar in our approach to climate. Amid the growing
demand for climate-focused products and services, we aim to actively respond to market changes driven by the low-
carbon transition and our clients’ interest in managing climate-related risks. We address this potential risk through our
sustainability- and climate-focused product and service offering.
D3-Policy and regulatory: As a global financial services firm active in wealth management, asset management, investment
banking and the provision of services to corporate and institutional clients, UBS may be affected directly and indirectly by
new carbon pricing regulation and energy transition policies. These measures can be designed to both constrain the
impacts of climate change and / or promote an adaptive response to climate change impacts. They could impact our own
operations, as well as the business operations of our corporate clients, given that such clients rely on the firm to finance
their activities across a range of sectors. We routinely assess the impact of current and emerging regulations, either
directly affecting our operations or indirectly affecting those sectors where we have clients.
D4-Technological change: Together with corporate clients that rely on UBS to finance their activities in a range of sectors,
UBS may be both directly and indirectly exposed to technological changes. UBS analyzes changes, such as the rise of
electric vehicle and battery technologies in the automotive sector, or energy storage technology advancement impacts
on the power utility sectors, through scenario analysis approaches.
Climate-driven risks
R1.1-Credit risk: We assess the potential impact of climate-driven risks on UBS through counterparties’ ability to repay
their debt and our ability to fully recover the value of the loan in the event of a default, due to collateral devaluation.

Sustainability Report 2024 | Environment 60

R1.2-Market & Treasury risks: We assess the potential impact of climate-driven risks on the value of our financial assets,
by altering or revealing new information about potential future economic conditions or the value of real or financial
assets, resulting in downward price shocks and an increase in market volatility.
R1.3-Liquidity risk: We assess the potential impact of climate-driven risks on liquidity adequacy, buffers and funding
conditions directly or indirectly through our ability to raise funds and liquidate assets and / or our customers’ demand for
liquidity.
R2-Reputational: We assess the potential impact of climate-driven risks caused by unfavorable perception, or a lessening
of our reputation, from the point of view of clients, industries, shareholders, regulators, employees or the general public,
which may lead to potential financial losses and / or loss of market share. Reputational risk is considered across all business
activities, transactions, and decisions and includes sustainability-related reputational risks, such as, for example,
greenwashing risk.
R3.1-NFR Continuity: Our business continuity is associated with climate-sensitive investments and businesses. We
understand the UBS sustainability impact, and risks and opportunities that affect our value and the operational
environment. We plan and create strategic direction, develop tangible and measurable targets, and link these to
operations development.
R3.2-NFR Compliance: Climate-driven operational risk may increase with regulatory compliance and liability. The aim is
to improve the firm’s risk profile through a more effective and efficient compliance function focused on the most
important risks. We identify, manage, and mitigate these risks to avoid material impact on UBS.
R4-Business: We assess the potential non-financial impact on UBS from inadequate or failed internal processes, people
and systems and / or externally due to physical climate events or stakeholder legal action. UBS mitigates the above risks
with global operations and interregional capabilities to provide business.
› Refer to the “Managing sustainability and climate risks” section of this report for more details about climate-related risks

Sustainability Report 2024 | Environment 61

Social
People and culture make the difference
Driving sustainable performance
We are dedicated to being a world-class employer for talented individuals across all our markets and a place where people
can unlock their full potential. Our global presence in 51 (2023: 52) countries and jurisdictions, combined with the
expertise of 110,323 employees worldwide, helps to position us to create better outcomes for our clients, communities
and colleagues.
Our employees execute our business strategy and deliver on our client promise. We therefore aim to attract, develop and
retain employees who have the capabilities, potential and mindset to help us achieve those aims. Corporate citizenship
principles are embedded into our employment practices, for example in the benefits we offer and in our fair pay practices.
As a founding member of the World Economic Forum’s Good Work Framework, we partner with like-minded companies
to develop and implement metrics that support high-quality work worldwide.
› Refer to the “Driving social impact” section of this report for more information about our community impact and employee
volunteering activities

Our workforce in a nutshell¹,²

Male Female 18% 61% 22%

59% 110,323 41%
employees
age < 30 age 30 – 50 age > 50

32% 23% 24% 20%

51 159 166 9
Switzerland Americas Asia Pacific EMEA countries and nationalities languages years of service,
jurisdictions spoken on average

1 Calculated as of 31 December 2024 on a headcount basis of 110,323 internal employees only (108,648 FTE). The number of external staff as of 31 December
2024 was approximately 20,335 (workforce count). 2 Gender data is self-reported in HR systems and does not include those who have chosen not to disclose
as a male or female employee.

› Refer to the Supplement to this report, available at ubs.com/sustainability-reporting, for more information about our workforce

The three keys and our corporate culture

Our culture is grounded in our three keys to success: our Pillars, Principles and Behaviors. These keys support our business
decisions and our approach to people management. Bringing together two global, systemically important banks and
building a unified culture across our combined organization continued to be top priorities in 2024, overseen by a
dedicated culture integration forum. In addition, the Corporate Culture and Responsibility Committee of the Board of
Directors (the BoD) monitors and reviews the activities related to the development of the Group’s corporate culture.
› Refer to ubs.com/global/en/our-firm/our-culture.html for more information about our three keys to success
› Refer to the “Governance” section of this report for more information about key governance bodies pertaining to ESG matters

Sustainability Report 2024 | Social 62

We support culture-building through a number of Group-wide, divisional and regional initiatives. Examples of that include
our Group Franchise Awards program, which recognizes employees for cross-divisional collaboration and for suggesting
innovation or simplification ideas. Our global peer-to-peer appreciation program, called Kudos, acknowledges colleagues’
exemplary behavior, promoting excellence, fostering belonging, and increasing engagement and employee satisfaction.
Launched in 2024, a global initiative called Crafting our Future uses interactive in-person sessions to ensure leaders at all
levels are aligned with our strategic priorities and our culture.
Hiring, developing and retaining talent
In 2024, we hired a total of 8,525 (2023: 11,435) external candidates across the Group and developed 2,168
(2023: 3,720) graduates and other trainees, apprentices and interns in various programs. The difference in year-on-year
external hiring numbers was largely due to prioritizing internal mobility in our talent sourcing processes along with
proactive internal recruiting efforts. We are one of the largest providers of multi-year apprenticeships in Switzerland. We
also sponsor a multi-year apprenticeship program in the UK and summer internship and work-study programs in the US,
EMEA, Asia Pacific and Switzerland.
› Refer to the Supplement to the UBS Group Sustainability Report 2024 and to ubs.com/global/en/careers/awards.html for
employer ratings and recognitions

We are committed to offering hybrid working options wherever possible. In 2024, most employees were eligible to work
partially from home, depending on their role, regulatory restrictions and location, along with divisional or functional
requirements. Such arrangements, along with options such as flexible locations or hours, part-time working, job sharing
and partial retirement, support employee engagement and retention and help us attract a wider range of candidates.
Our talent management approach includes structured talent and succession reviews to help us identify future leaders,
ensure business continuity and proactively manage employee development. In this respect, cross-divisional and
international mobility for early-career talent, mid-career professionals and senior leaders is a central element. Our Group-
wide talent offering is supplemented by programs in the business divisions, functions and regions. These programs cater
to a broad audience ranging from senior leaders to emerging junior talent. We also offer targeted development for new
and experienced line managers. Regular leadership events align business heads with our strategy and further our
corporate and cultural integration. Our Win As One Team initiative, for example, empowers leaders to cultivate high-
performing teams that embody our core values and uphold the highest standards of behavior.
Our Career Navigator platform supports internal mobility with a suite of self-service tools and resources to explore career
paths, search for jobs and short-term rotation opportunities, and connect with mentors. Furthermore, line managers are
expected to support both individual development and internal mobility. In 2024, 52.6% (2023: 38.8%) of all roles were
filled by internal candidates.
Internal training is delivered via our UBS University platform. The offering includes client advisor certification and
regulatory, business and line manager training alongside modules on culture, sustainable finance, artificial intelligence,
data literacy, well-being and other topics. Launched in 2024 in collaboration with a leading US university, our new
sustainability investment program gives professionals across the firm the knowledge and tools they need to make
sustainable investment decisions that may lead to higher risk-adjusted returns. In addition to internal training, we
partnered with a leading external provider in 2024 to offer thousands of additional learning opportunities to all staff.
All employees are required to meet initial and ongoing training and competency requirements appropriate to the activities
they undertake on the firm’s behalf. Furthermore, we may require employees to complete mandatory or business-required
training, in line with our mandatory learning policy.
We invested approximately USD 0.1bn in training in 2024, with permanent employees completing more than 3.0m
learning activities (including mandatory training on compliance, business and other topics). This equated to an average
of 24.8 (2023: 15.3) training hours per employee.
Performance management
Our performance management approach (MyImpact) reflects our strategy and supports our high-performance culture.
Annually, employees set objectives that foster accountability, translating business objectives into outcome-focused
individual objectives and further aligning the organization to what matters most. All employees also receive a specific risk
objective that reflects how we manage risk and supports a strong and proactive risk culture. We consider both
performance- and behavior-related objectives because we value what an employee accomplishes and how our behaviors
– accountability with integrity, collaboration and innovation – are demonstrated.
An embedded feedback app enables employees to give and receive feedback in real time throughout the year, supporting
continuous improvement and course correction where needed. In 2024, more than 371,000 (2023: 296,330) instances
of feedback were given across the combined organization. Annual performance reviews evaluate employees against their
objective outcomes, feedback and behavior, and 100% (2023: 100%) of eligible employees received a performance
review for the year.

Sustainability Report 2024 | Social 63

Employee engagement
Our employees want to be heard and to be involved in shaping their daily experience. As such, we offer opportunities
throughout the year for employees to connect with management and provide feedback on topics such as strategic
alignment, employee engagement, well-being, our work environment and line manager effectiveness. As an example,
initiatives such as our regular “Ask the CEO” event give employees the chance to learn about (and ask questions about)
topics such as strategy and direction.
Our multi-faceted employee listening strategy is adaptable and captures feedback in a timely way. We conduct employee
lifecycle surveys, short “pulse” surveys to understand what is on top of employees’ minds and in-depth analyses, such as
virtual focus group sessions. In 2024, those conversations allowed participants from every business division and function to
share their perspectives and insights on the integration and provided employee sentiment data points to track progress.
Group-wide surveys measure cultural indicators, such as line manager effectiveness and employee engagement. Our 2024
Group-wide survey, which had a 77% employee response rate, assessed indicators such as line manager effectiveness,
engagement, culture and pride. An engagement score of 83% in that same survey confirmed that our employees
recommend us as an employer. All of these scores were above the financial services benchmark.1 We continue to strive to
be an employer of choice in the financial sector.
Employee representation
In addition to seeking out employee feedback, we maintain an open dialogue with our formal employee representation
groups. Our Human Rights Statement and our Code of Conduct and Ethics (the Code) outline our responsibility to respect
the rights of our workers. The UBS European Employee Forum and the European Works Council, Credit Suisse Group AG
include representatives from all European Union Member States where the UBS Group has a presence. They consider
topics related to our performance and operations. Local works councils consider benefits, workplace conditions and
reorganizations, among other topics. Collectively, these groups represent 52.0% (2023: 51.5%) of our global workforce.
Where applicable, our operations are subject to collective bargaining agreements. Benefits are aligned with local markets
and often go beyond legal requirements or market practice.
Fair and equitable pay
Fair and consistent pay practices are designed to ensure that employees are appropriately rewarded for their contribution.
We pay for performance, and we take pay equity seriously. We have embedded clear commitments in our compensation
policies and practices and apply the same fair pay standards across all locations. We annually review our approach and
policies, in line with established equal pay methodologies, to support our continuous improvement.
As part of our commitment to equal pay, we regularly conduct internal reviews on pay equity, and our statistical analyses
show a differential between male and female employees in similar roles across our core financial hubs of less than 1%.
If we find any gaps not explained by business or by appropriate employee factors such as role, responsibility, experience,
performance or location, we look at the root causes and address them.
We also aim to ensure that all employees are paid at least a living wage. We regularly assess employees’ salaries against
local living wages, using benchmarks defined by the Fair Wage Network. Our analysis in 2024 showed that employees’
salaries were at or above the respective benchmarks.
› Refer to the UBS Compensation Report 2024, available at ubs.com/annualreporting, and to ubs.com/sustainability-reporting for
our 2024 UK Gender & Ethnicity Pay Gap Report

Employee support
We are committed to being a responsible employer and to caring for our employees. That is one reason we offer flexible
working arrangements and promote employee health and well-being. Social, physical, mental and financial well-being
elements are woven into our HR policies and practices. For example, our support for employee well-being includes a
range of programs, benefits and workplace resources, along with a specialized eLearning curriculum to help employees
better manage their health, foster well-being and strengthen their resilience. A dedicated well-being portal consolidates
our global offering and promotes regional networks, initiatives and resources.
In 2024, employees across the firm participated in virtual fitness challenges, mental health initiatives, volunteering
activities and financial education events, and everyone had access to a specialized mindfulness app. We also progressed
with our #WorkingWithCancer commitment through a mentorship program, informational sessions and coffee corners.
Benefits and assistance
All our employees have access to competitive benefits, such as healthcare, well-being and retirement benefits, insurance
(such as life and disability insurance) and flexible leave policies, where applicable. All employees are also covered by
policies to protect against employment injury or disability. Parental leave, including adoption leave, is available to all
employees, as indicated in local HR policies, and all locations offer family-related leave. Benefits are set in the context of
local market practice and are regularly reviewed for competitiveness.

1 Benchmarks provided by Ipsos Karian and Box as of the third quarter of 2024.

Sustainability Report 2024 | Social 64

Employee assistance programs and internal teams help employees and their family members manage personal or work-
related issues that may affect their well-being. The absentee rate of the UBS Group excluding Credit Suisse in 2024 was
2.1% (2023: 1.9%) globally and Credit Suisse’s absentee rate was 2.4% (2023: 2.3%) of total scheduled days in
Switzerland1, according to the number of illness or accident absences recorded in the respective self-service HR tools.
Should business or organizational circumstances arise that lead to employee redundancy, we offer redeployment and
outplacement services with a focus on redeployment within UBS. We believe these measures help skilled employees
affected by restructuring to favorably position them in the labor market. Employees considering retirement also have
access to various resources to help prepare them for this transition.
› Refer to the “Health and safety statement”, available at ubs.com/sustainability-reporting, for more information about UBS’s
health and safety statement
› Refer to ubs.com/employees, for more information about benefits and assistance

Equal opportunities and whistleblowing

We provide equal employment and advancement opportunities for all individuals. We are an equal opportunity employer,
and our policies do not tolerate harassment of any kind. We have measures in place to prevent discrimination, bullying,
victimization, harassment (including sexual harassment) and retaliation, along with an anti-harassment representative
who independently reviews relevant training, policies and protocols.
Employees are encouraged to raise concerns openly and to report potential violations of the Code. Group-wide, staff have
multiple ways, including a telephone hotline and an online whistleblowing form that offers confidential and, if preferred,
anonymous ways, to raise concerns about any potential breaches of laws, regulations, rules or other legal requirements,
policies, professional standards, sexual misconduct or harassment, or any violation of the Code. We do not tolerate any
form of retaliation against any employee who reports a concern that they reasonably believe is a breach or violation.

Workforce inclusion
We are committed to being a diverse and inclusive workplace based on meritocracy, and aim to build a culture of belonging
where all employees are recognized and valued, and where everyone can be successful and thrive. At UBS, we aim to hire and
retain the best people for the right roles, to deliver for our clients, our businesses, our shareholders and the communities we
serve. In order to achieve this, we have a diverse workforce with a variety of skills, experiences and backgrounds that reflects
the diversity of our clients to serve them at our best. It is also critically important to us that we respect an environment where
all our employees are treated fairly and able to reach their potential. In every location in which we operate, we continue to act
in accordance with the current law and regulations and will monitor any changes to ensure we remain consistent.
› Refer to the “Supporting opportunities” section of this report for more information about our clients
› Refer to the “Driving social impact” section of this report for more information about the topic of community and society
› Refer to the “Managing our supply chain responsibly” section of this report for more information about our suppliers

Our workforce inclusion strategy is built on four pillars: transparency, hiring, developing and belonging. We leverage
these four pillars to help support our entire workforce across a variety of personal characteristics including, but not limited
to, gender, culture, race, ethnicity, sexual orientation and identity, disability, family, veteran status, and generations, to
create an inclusive culture for everyone.
Transparency
Transparency is the foundation framework through which we enable leaders to deliver the strategy, and everyone is held
responsible. We leverage various communication channels and line manager objectives to drive awareness,
benchmarking, thought leadership and feedback to inform the strategy, and data monitoring with respective
characteristics, including management dashboards and toolkits, to support our entire workforce.
In 2024, 26.7% (2023: 37.5%) of members of the GEB 41.7% (2023: 33.3%) of members of the BoD, and 33.8%
(2023: 30.3%) of senior managers who reported directly to a member of the GEB were female employees.
Our workforce inclusion strategy is reinforced by our public commitments to support all employees, including, but not
limited to, the UN Women’s Empowerment Principles, the Valuable 500 and the Race at Work Charter (UK). Of particular
note is our commitment to the Valuable 500, a global business collective of CEOs and their companies focused on
advancing disability inclusion that we have partnered with since 2021. Disability-focused initiatives in 2024 included
making improvements to our recruitment processes for candidates, sponsoring disability-focused employee networks,
enhancing training and awareness efforts for all employees, and continuing to increase physical and digital accessibility
for employees and clients alike.
› Refer to the Supplement to this report, available at ubs.com/sustainability-reporting, for more information about our workforce

1 Credit Suisse data reflects only Swiss absences.

Sustainability Report 2024 | Social 65

Hire
We aim to hire the best people for the right roles with meritocracy at the forefront of any decision we make, to deliver
for our clients, our businesses, our shareholders and the communities we serve. We offer a wide range of programs to
attract a diverse talent slate. Our junior talent programs, such as our apprenticeship programs in Switzerland and the UK
and our global internship program, prepare young talent for successful careers with us. Our UBS Career Comeback
program supports candidates on career breaks who want to re-enter the corporate world.
› Refer to the Supplement to this report, available at ubs.com/sustainability-reporting, for more information about our workforce

Develop
We provide employees the visibility and opportunities to enable successful and thriving careers. Mentorship and
sponsorship, embedded in (and supplemental to) talent development programs help ensure employees have a range of
development opportunities. Through a mix of online and in-person training, self-directed learning and coaching, we
further support our employees’ career journeys and aspirations. For example, in 2024, our Growth Alignment Experience
for Associate Director- and Director-level employees in the US doubled in size to 100 participants, who had applied to be
part of the program. Over a six-month period, participants worked with external coaching professionals to enhance their
strategic planning skills, expand their networks and build connections. Employees in the UK and Switzerland at the
Authorized Officer, Associate Director and Director levels were offered programs including Not in Your Image, a nine-
month career development program for building skills and leadership readiness.
In the US, we work with the Executive Leadership Council’s Institute for Leadership Development and Research, along
with organizations like the Hispanic Association on Corporate Responsibility, to support leadership-development-focused
opportunities across our workforce, facilitating individual growth that in turn builds our talent pipeline.
Belong
A sense of belonging helps drive engagement and is important for overall well-being. Inclusive leadership and fair and
transparent policies and practices provide organizational support for belonging, and vital to these efforts are our various
employee network chapters across the firm that connect employees on a variety of employee-led topics. Our networks,
which are open to all employees, also supplement members’ awareness, development and support through mentoring,
reverse mentoring and allyship programs.
› Refer to ubs.com/inclusion, for additional information about inclusion topics and status
› Refer to ubs.com/employees or ubs.com/careers, for more topics of interest to employees and potential
applicants

Sustainability Report 2024 | Social 66

Driving social impact
We aim to support the transition to an economy that considers the well-being of people and planet. Through the UBS
Optimus network of foundations (the UBS Optimus Foundation), which is an independent network, and in partnership
with philanthropists, employees, implementation organizations and institutional partners, we want to find innovative
ways to drive systemic and catalytic impact for marginalized communities at scale, both globally and locally, especially for
children and young people. In 2021, we set a goal of mobilizing USD 1bn in philanthropic capital (which was reached in
2024) and reaching more than 26.5 million people by the end of 2025 (cumulative total since 2021).
We know working together is key to achieving this impact and systemic change. That is why, in addition to providing
insights, advice and execution services to clients and prospective clients, we have increased our efforts in the areas of
blended finance, collaborative philanthropy and impact transparency.1 In blended finance, we have facilitated
opportunities and partnerships in innovative financing structures leveraging public and private capital. In collaborative
philanthropy, we have brought together clients and partners on joint initiatives addressing global issues, such as improving
the quality of primary school education in Ghana and Colombia. Additionally, our new impact rating tool, introduced in
2024, simplifies assessment of impact across projects, sectors and solutions, aligning with established methodologies,
such as the Impact Management Project’s dimensions of impact.
Our clients and partners are invited to be part of our impact ecosystem by supporting various initiatives and approaches.

Blended finance
The UBS Optimus Foundation partners with clients, governments, development finance institutions and our business
divisions to promote and launch blended finance initiatives that use catalytic capital from public and philanthropic sources
to increase private-sector investment in sustainable development.

UBS Collectives
Our three UBS Collectives bring philanthropists together to co-fund programs, share knowledge and join a unique
learning journey. This includes insight trips, where the philanthropists work and exchange knowledge with experts and
experience the impact on the ground.
The UBS Collectives were launched in 2020 and focus on issues central to our strategy: innovative financing of education
and health outcomes (the UBS Accelerate Collective), catalyzing the blue-carbon market (the UBS Climate Collective), and
promoting and implementing family-based care (the UBS Transform Collective). The first cohorts concluded their journey
at the end of 2024, contributing their time and expertise to support 23 UBS partners across eight countries.
› Refer to the UBS Optimus Foundation Annual Review 2023, available at ubs.com/optimus-foundation/annual-review, for more
information

UBS Global Visionaries

Through our UBS Global Visionaries program, we aim to accelerate the impact of social entrepreneurs by: (i) creating
opportunities for the entrepreneurs to connect with our clients, prospective clients and employees; (ii) increasing the
entrepreneurs’ abilities through learning and coaching programs; and (iii) raising awareness of the entrepreneurs’
endeavors by leveraging our brand and platforms. Since the program started in 2016, we have onboarded and supported
90 entrepreneurs to accelerate their impact.

Helping our clients structure their philanthropy: donor-advised funds

Donor-advised funds offer clients an alternative charitable-giving vehicle to set up their own foundations, offering greater
choice and personalization, and are managed in line with their usual investment approach. UBS offers these services in
Switzerland, Singapore, the UK and, since 2023, the Hong Kong SAR. In 2024, USD 329m in donations was received into
these UBS charitable entities (2023: USD 318m).2,3

The UBS Optimus Foundation

In 2024, the UBS Optimus Foundation raised USD 366m in donations (2023: USD 328m), including UBS matching
contributions, and committed USD 310m (2023: USD 306m) in grants from the foundations.2,4
In 2024, the UBS Optimus Foundation celebrated its 25th anniversary by launching four initiatives5 that build on our
achieved impact and strategic partnerships. These initiatives will be supported by a USD 25m gift from UBS that will be
used to provide matching contributions of up to 100%6 and seed capital to launch them.
In addition to mobilizing our clients’ resources to advance the missions of our portfolio of partners, we also seek to ensure
both the firm and employees are engaged in our Social Impact strategy. We do this mainly through charitable
contributions and employee volunteering.

Sustainability Report 2024 | Social 67

Charitable contributions
We have provided direct cash contributions through our affiliated foundations in Switzerland, through partnerships in
the communities where we operate and through contributions to the UBS Optimus Foundation. The combined value of
these contributions in 2024 was USD 74m.

Employee volunteering
We have global targets for employee engagement through volunteering, which are built from the bottom up and on a
best-efforts basis. In 2024, we successfully engaged 32% of our global workforce in volunteering (2023: 38%), and 39%
of the 230,258 volunteer hours were skills based (2023: 45% of 199,633 volunteer hours).7,8

1 Currently, our impact transparency focus is on ensuring that all grants and investments supported by the UBS Optimus Foundation undergo consistent and transparent diligence, approval, management and reporting
processes, in line with industry standards.
2 Figures provided for the UBS Optimus Foundation and donor-advised funds are based on unaudited management accounts and information available as of January 2025. Audited financial statements for the UBS
Optimus Foundation and donor-advised foundation entities are produced and available per local market regulatory guideline.
3 2023 figures exclude Credit Suisse.
4 The UBS Optimus Foundation receives donations from all of the business divisions, with the majority coming from Global Wealth Management.
5 Blue economy, innovative financing in tertiary education, scaling primary education and reaching the last mile for quality health care.
6 100% up to USD 10,000 and 25% thereafter.
7 2023 figures exclude Credit Suisse-led volunteering programs.
8 Reported employee volunteering hours include volunteering activities completed both during and outside of working hours. In the case of hours committed outside of working hours, in line with Business for Societal
Impact (B4SI) guidelines, these are only counted where volunteering can be attributed to UBS support or encouragement for the employee to commit their time.

Sustainability Report 2024 | Social 68

Charitable contributions
UBS’s overall charitable contributions are measured using the Business for Societal Impact (B4SI) framework and are
broken down as follows.1

Cash
This category includes direct cash contributions from the firm, including through partnerships in the communities that
we operate in, support given through its affiliated foundations in Switzerland and contributions to the UBS Optimus
network of foundations.2

Employee time
This is the cost to UBS of the time that employees spend on community programs during working hours. It is calculated
by multiplying the number of volunteer hours during working hours by the average hourly salary.

In-kind
These are contributions of products, equipment, services and other non-cash items from UBS to communities, primarily
the cost of making our premises available to our partner charities for events.

1 From 2024, all charitable contributions reporting has been integrated, reflecting contributions made across the UBS Group. The 2023 and 2022 comparative figures reflect contributions made across UBS AG pre-
integration of Credit Suisse. 2 All direct cash contributions are recognized on a cash rather than accrual basis. Separately, we recognize contributions made by the UBS Optimus network of foundations on an accrual
basis, reflecting committed grants made in the reporting period. The cash contribution does not include contributions totaling USD 5.8m in 2024 that are required by law (in India and South Africa). This is consistent
with B4SI methodology. Lower cash contributions in 2023 compared with 2022 were due to the decision to exclude business-related contributions, since these are donations made outside of our strategic social impact
strategy and do not support the longer-term impact we are striving to achieve with our strategic grantee and volunteering partners.

Contributions by type (UBS Group AG consolidated)1

USD m 2024 2023 2022
Cash contributions2 73.90 62.58 76.15
Time contributions 23.13 16.64 15.53
In-kind contributions 0.01 0.08 0.06
Total 97.05 79.30 91.74
1 From 2024, all charitable contributions reporting has been integrated, reflecting contributions made across the UBS Group. The 2023 and 2022 comparative figures reflect contributions made across UBS AG pre-
integration of Credit Suisse. 2 All direct cash contributions are recognized on a cash rather than accrual basis. Separately, we recognize contributions made by the UBS Optimus network of foundations on an accrual
basis, reflecting committed grants made in the reporting period. The cash contribution does not include contributions totaling USD 5.8m in 2024 that are required by law (in India and South Africa). This is consistent
with B4SI methodology. Lower cash contributions in 2023 compared with 2022 were due to the decision to exclude business-related contributions, since these are donations made outside of our strategic social impact
strategy and do not support the longer-term impact we are striving to achieve with our strategic grantee and volunteering partners.

Sustainability Report 2024 | Social 69

Respecting human rights
UBS is committed to respecting and promoting human rights, as set out in the UN Guiding Principles on Business and
Human Rights. When assessing the firm’s potential human rights impacts, we focus on three key stakeholder groups
(employees, clients and vendors), as well as society at large.
› Refer to the “General information” section of this report for more information about our interactions with stakeholders, including
civil society groups

Employees: UBS is committed to respecting human rights standards through its human resources policies and practices,
and to meeting the obligations that a responsible company is required to comply with. These are reviewed on a regular
basis in an effort to make sure we continue to respect human and labor rights.
› Refer to the “People and culture make the difference” section above and to “Key policies and practices” in the appendix to this
report for more information about UBS’s human resources policies and practices

Clients: UBS aims to provide its clients with innovative investment solutions on themes related to human rights, such as
health, education, gender and / or equality. In addition, we take human rights risks into account in solutions that address
a broader range of sustainability issues. We identify and manage actual and potential adverse impacts on human rights
to which our clients’ assets and our own assets are exposed, most notably through our sustainability and climate risk
policy framework (including human rights). Our clients also have access to solutions that help them to realize their
philanthropy goals, including those related to human rights.
› Refer to the “Strategy” section of this report for more details about our sustainability and impact strategy, key aspirations and
progress
› Refer to the Supplement to this report, available at ubs.com/sustainability-reporting, for more information about the
“Sustainability and climate risk policy framework”, including SCR assessments undertaken in 2024 (including human rights-
related)
› Refer to the “Driving social impact” section of this report for more details about our approach to philanthropy services

Vendors: UBS is committed to reducing the negative societal impacts of the goods and services it purchases. That is why,
when we are establishing new contracts or renewals, we identify high-impact vendors based on whether they provide
goods and services that either have a substantial social impact or are sourced in markets with potentially high social risks.
Vendors that do not meet the minimum applicable standard, because they are associated with actual and potential human
rights risks, have to agree to and comply with a remediation plan before signing a contract with us.
› Refer to the “Responsible Supply Chain Standard“ and the “UBS Supplier Code of Conduct” for more details about our responsible
supply chain management and assessments, available at ubs.com/sustainability-reporting, for more information

UBS’s human-rights-related commitments and actions are set out in the UBS Human Rights Statement. The statement
shows the structures (governance and policies) and mechanisms (procedures and processes) UBS has in place to support
its commitments. UBS also publishes a Modern Slavery and Human Trafficking Statement pursuant to the UK 2015
Modern Slavery Act and to the Australian 2018 Modern Slavery Act.
› Refer to the UBS Human Rights Statement and the UBS Modern Slavery and Human Trafficking Statement, available at
ubs.com/sustainability-reporting, for more information
› Refer to the Supplement to this report, available at ubs.com/sustainability-reporting, for more information about “UBS Group’s
approach to the Swiss Ordinance on Due Diligence and Transparency in relation to Minerals and Metals from Conflict-Affected
Areas and Child Labor”

Sustainability Report 2024 | Social 70

Cyber and information security
At UBS, the security of our clients’ assets and data is one of our top priorities. As cyber threats to systems and data
increase in volume and sophistication, we continually focus resources and investments on critical cyber and information
security capabilities, with specialist teams working to safeguard our clients’ assets and data.
Our principles and policies guide how we develop and deploy technological solutions. The cyber and information security
(CIS) program is designed to identify, prevent, detect and respond to CIS events, with the goal of maintaining the integrity
and availability of our technology infrastructure. Appropriate technical and organizational measures are implemented to
ensure that data remains confidential and protected against accidental, unauthorized or unlawful destruction, and loss,
alteration, disclosure or access.
Additionally, UBS has a Group-wide incident response process designed to detect, investigate, and respond to information
security threats and incidents that have a potential impact on UBS systems and data. This process enables any UBS person
to report incidents and data breaches, and it also includes processes such as notifying impacted clients about relevant
incidents, in line with all applicable laws and regulations.
In 2024, we have enhanced the CIS awareness and education program for all UBS employees and external workforce,
including an increase in staff testing, refreshed mandatory training, including for highly privileged users, and a firm-wide
Cyber Awareness Month campaign.
› Refer to the “Cyber and information security” section of UBS Group Annual Report 2024, available under “Annual reporting” at
ubs.com/investors, for more information

Helping clients stay cybersafe

UBS invests in critical cyber and information security capabilities to protect clients' assets and data and provides
cybersafety tips through its website and mobile applications.
› Refer to Cyber Security at UBS for more information, available at ubs.com/global/en/our-firm/cybersafe.html, and to
Cybersecurity, information security and data privacy at UBS, available at ubs.com/global/en/sustainability-impact/sustainability-
reporting.html

Sustainability Report 2024 | Social 71

Supporting opportunities
Our sustainable finance ambitions
Finance has an important role to play as companies and individuals consider how best to approach the transition to a
more sustainable, lower-carbon world. Banks and investment managers can support this transition by allocating capital
effectively and efficiently and helping to mobilize the vast amounts of investment and financing required. In addition, we
are committed to supporting our clients’ sustainability ambitions, whether their focus is on reducing the carbon emissions
footprint of their businesses or portfolios or on encouraging a fairer and more prosperous society.
We provide a broad range of sustainability and impact products and services across our core business areas, targeting
four key objectives in serving our clients:
– The power of choice: we want to give our investing clients the choices they need to meet their specific sustainability
objectives.
– An orderly transition: we aim to support our clients through the world’s transition to a low-carbon economy, for
instance, by offering innovative sustainable financing and investment solutions.
– Managing risks and identifying opportunities: we offer research and thematic insights, as well as data and analytics
services. Combined with targeted advice, these are designed to help clients better understand and mitigate risks and
identify new opportunities.
– Making sustainable finance an everyday topic: we want to make sustainability topics tangible throughout our
interactions with clients. To help us do that, we provide support in the form of tools, platforms and education.

Assessing sustainable finance opportunities

The regulatory environment continues to evolve, and so do the associated business and investment opportunities for our
clients, as well as for us. As part of the UBS Group sustainability and impact annual strategic review and objective setting
process, our business opportunities are assessed on a Group and divisional level and also through a topical lens (e.g. in
thematic priority areas, such as climate, nature or impact).
Furthermore, since 2021 we have performed a dedicated climate opportunities materiality assessment on an annual basis,
looking at financial and impact materiality related to our firm-wide climate-related product and services offering. In order
to ensure that climate aspects are reflected in our forward-looking business strategy, business divisions formulate specific
commercial objectives for climate during the objective-setting process.
› Refer to “Supporting our approach to climate – climate-related materiality assessment” in the “Environment” section of this
report for a description and results of the climate opportunities materiality assessment

Our approach to sustainable finance

It is important to set out how we define sustainable finance, as no uniformly accepted definition currently exists in the
financial industry. In accordance with our ambitions, our sustainable finance product offering is organized across three
key areas:
– Investing: sustainable investing solutions for private and institutional investors;
– Financing: sustainable financing solutions for real estate and corporate purposes; and
– Research, advisory, data, platforms and client interactions: solutions guiding our clients on their sustainability
objectives, such as sustainability-related analytics, scoring, reporting, tools and client support through our interactions
with them.
Sustainable investing
Our approach to sustainable investing is defined in our Group Sustainable Investing Policy. For us, sustainable investing
includes any product or service with an underlying investment strategy that, in addition to targeting market-rate financial
returns, aims to explicitly:
i) align with one or more specific sustainability-related objectives; or
ii) contribute to achieving one or more specific sustainability-related objectives,
while also considering corporate governance factors (e.g. sound management structures, remuneration of staff and tax
compliance) and potential adverse impacts on broader sustainability, where relevant.
Our sustainable investing approaches are “Sustainability focus” and “Impact investing”. These categories, as they stand,
are part of our global sustainable investing framework, which is not tailored to or defined by any specific local regulatory
requirements or definitions. Specifically, the “Sustainability focus” approach refers only to our framework definition, and
not to existing regulations.

Sustainability Report 2024 | Supporting opportunities 72

The way that we define sustainable investing is being reviewed to ensure that it appropriately considers evolving market
practice, client expectations and relevant regulatory guidance. For an investment product or service to be considered part
of our sustainable investing offering, the explicit alignment with or contribution to one or more sustainability-related
objectives must be demonstrated within the underlying investment strategy. Strategies focused only on the integration
of sustainability risks and / or exclusions and / or active ownership, without a contribution to sustainability-related
objectives, would not qualify as sustainable investing for us.
Our investing approaches can be summarized as follows:
Traditional investing Sustainable investing

Sustainability focus Impact investing

– Targets market-rate investment returns – Targets market-rate investment returns – Targets market-rate investment returns
– No explicit sustainability objectives – Has explicit sustainable intentions or – Has explicit intentions to generate
– Manages sustainability and all risks related to objectives that drive the strategy measurable, verifiable, positive sustainability
investment performance – Underlying investments may contribute to outcomes
– May use sustainability-related tools, but these do positive sustainability outcomes through – Impact attributable to investor action and /
not drive the strategy products, services and / or proceeds or contribution

› Refer to the Supplement to this report, available at ubs.com/sustainability-reporting, for more information about ESG integration
and exclusion

The legacy Credit Suisse sustainable investment framework1 (the SIF) continues to be in operational use for portfolios
that have not been fully onboarded to the UBS product shelf. This framework will be phased out over time and in line
with integration progress, without any bearing on our established sustainable investing approach and governance. We
no longer report Group-level invested assets information associated with the SIF, as the migration is ongoing.
Sustainable financing
Our sustainable financing instruments are governed by our Sustainable Finance Guideline, which is part of the
sustainability and climate risk policy framework. The guideline defines criteria for labeled financing instruments (e.g. for
marketing or promotion purposes).
The main financing instruments we offer to our clients include green, sustainable, sustainability-linked and social bonds.
All are subject to specific criteria, aligned to commonly used industry and market standards (e.g. those issued by the
International Capital Market Association (ICMA), the Loan Market Association (LMA), the Loan Syndication & Trading
Association (LSTA), the Asia Pacific Loan Market Association (APLMA)) and regulatory requirements such as the EU Green
Bond Standard (EuGB).
› Refer to “Key terms and definitions” in the “Appendix 3 - Other supplemental information” section of this report and to the
“Sustainability and climate risk policy framework“ section of the Supplement to the UBS Group Sustainability Report 2024,
available at ubs.com/sustainability-reporting, for our definitions of sustainable bonds and loans

Meeting diverse needs

We serve a broad range of clients across our four main business divisions. The table below provides an illustrative overview
of sustainable finance products and services offered to clients by each of those divisions. While a good illustration of the
breadth of products and services available to clients across UBS’s business activities, it is not an exhaustive representation
of our sustainable finance and investing offering, which varies by jurisdiction, booking center and client domicile, and is
also subject to client eligibility and preference considerations. Not all products and services are available to all clients and
/ or in all regions.

1 The SIF was established in 2020 and is utilized to classify investment solutions in an effort to seek consistency and set minimum standards across different asset classes, locations and regulatory regimes.
Classification can also help match clients’ interests with relevant investment solutions. The SIF classification does not supersede any regulatory commitment, nor does it determine or indicate whether an investment
solution will be labeled as “sustainable” (or any other such term) under any given regulatory regime.
The SIF focuses on:
Exclusion: positions assessed not to be significantly involved in controversial business fields or incidents;
Integration: positions assessed to be integrating ESG into their strategy;
Thematic: positions assessed to be in alignment with specific United Nations Sustainable Development Goals (the SDGs); and
Impact: positions assessed to be explicitly and intentionally contributing toward specific SDGs.

Sustainability Report 2024 | Supporting opportunities 73

A sustainable finance offering for all our clients
Investing Financing Research, advisory, data analytics,
platforms and other services

Global Wealth Management – Sustainable discretionary mandates – Real-estate-related – Sustainable investing research and
– Sustainable modules for traditional financing2 thought leadership
discretionary mandates – Sustainability reporting
– Sustainable investing solutions for – Philanthropy solutions
advisory mandates – Renovation journey, tools,
– Sustainable separately managed partnerships and ecosystems2
accounts (SMA)1
– Sustainable public market investment
funds (actively managed and
indexed)
– Sustainable private market funds
(including infrastructure and real
estate)
– Sustainable hedge funds
– Sustainable structured products
– Direct investments in sustainable
equities and bonds

Personal & Corporate – Sustainable discretionary mandates – Real-estate-related financing – Sustainable deposits solution
– Sustainable modules for traditional – Green, social, sustainability – Carbon footprint sizing
discretionary mandates and sustainability-linked – Renovation journey, tools,
– Sustainable public market investment bonds partnerships and ecosystems
funds (actively / passively managed) – Sustainability-linked loans – Sustainability reporting and analysis
– Sustainable private market funds – Sustainability research and thought
(including infrastructure and real leadership
estate)
– Philanthropy solutions

Investment Bank – Thematic sustainability-related – Green, social, sustainability – ESG advisory

products (e.g. carbon, climate) and sustainability-linked – ESG research
bonds
– Green, social, sustainability
and sustainability-linked
loans

Asset Management – Sustainable separately managed – Sustainability thought leadership

accounts (SMA)1 – Sustainability analytics and reporting
– UBS sustainable public market funds for clients (standardized and
(actively managed and indexed) customized)
– UBS sustainable private market funds
(including infrastructure and real
estate)
– UBS sustainable hedge funds
– Sustainable mandate solutions
(actively managed and indexed)

Disclaimer: Sustainable offering varies by jurisdiction, booking center and client domicile and is subject to client eligibility and preferences. Not all products and services are available to all clients.
1 Clients booked in the US. 2 Clients booked in Switzerland.

› Refer to the “Basis of preparation” section of the Supplement to the UBS Group Sustainability Report 2024, available at
ubs.com/sustainability-reporting, for details on products that are included in sustainable product metrics

Developments in 2024
– Our total sustainable investing invested assets reached USD 296bn, representing an increase of 5% year on year.1
– The sustainable investing portion of our total invested assets was 4.9% (2023: 6.3%).2
– In the Investment Bank, we facilitated 96 green, social, sustainability or sustainability-linked (GSSS) bond transactions
globally (2023: 102).3
– We are the second-largest manager of open-ended funds and exchange-traded funds (ETFs) by sustainable investing
invested assets, using Morningstar’s classification.

1 Figures do not include invested assets classified under the Credit Suisse SIF but include invested assets of Credit Suisse portfolios, which have been migrated onto UBS platforms and vetted against UBS’s sustainable
investing policies or merged with existing UBS sustainable investing portfolios. This process is being carried out in waves and will continue until at least the end of 2025.
2 In line with the progressing integration, for 2024 we report the share of sustainable investing assets as a percentage of UBS Group total invested assets. For 2023, we report the sustainable investing proportion of
UBS AG total invested assets, excluding any invested assets booked by and for Credit Suisse AG.
3 These metrics include transactions meeting the UBS Sustainable Finance Guideline, as described in the ”Sustainability and climate risk policy framework“ section of the Supplement to this report, available at
ubs.com/sustainability-reporting.

Sustainability Report 2024 | Supporting opportunities 74

Sustainable investing
Sustainability-oriented public market funds recorded a new high of USD 3.2trn1 as of the end of December 2024,
supported by strong market performance in the third quarter. Europe remains by far the largest market, with an 84%
market share. European investors also continued to allocate the most into sustainability-oriented funds and ETFs,
although the volume of inflows decelerated compared to previous years. Higher interest rates continued to drive
allocations into global fixed income and money market investments in 2024, supporting demand for sustainable investing
fixed income funds, which attracted the majority of sustainable investing inflows last year.2
While sustainability-oriented funds and ETFs continued to attract net inflows in 2024, they were outpaced by inflows into
traditional products for the first time since 2021. In our view, this was largely driven by the relatively small number of
available sustainable fixed income products as compared to equity products specifically for private and retail investors.
Ongoing developments in terms of sustainable investment product regulations and classifications led to continued fund
renaming and reclassifications in the industry, further blurring the line between sustainability-oriented and traditional
investment products offered in the market and allocated by investors. Furthermore, in recent years, some jurisdictions
have developed rules restricting the consideration of sustainability factors in investment and business decisions. Under
these anti-ESG rules, companies that are perceived as boycotting or discriminating against certain industries may be
restricted from doing business with certain governmental entities. Sustainability-oriented investments are and will
continue to be adversely affected by these existing and upcoming rules.
In addition to public market funds, sustainable investments into alternative asset classes, including hedge funds, real
estate or infrastructure, continued with strong momentum throughout the year. According to Preqin,3 the share of
sustainable investing products in private market fundraising reached an all-time high of 21% in 2024, through the end
of April.
Sustainability remains a key consideration for our clients. According to the 2024 UBS Billionaire Ambitions Report,4
representing opinions from billionaires with a combined wealth of USD 14trn, the percentage of respondents investing
for impact has more than doubled over the past 10 years, rising from 13% to 28%.
In addition to investing considerations, our clients are increasingly incorporating sustainability aspects from an operating
business perspective. Investors and companies are acutely aware that sustainability in general and topics such as climate
and nature have real-world impacts on their financial performance (e.g. the availability of natural resources such as water,
physical climate risks or supply chain resilience) and are actively looking to address these topics. According to the 2024
UBS Global Family Office report,5 more than half (57%) of family offices with an operating business are either already
taking sustainability considerations into account or planning to do so in the future. Echoing this, almost half (49%) of
respondents say that finding the right approach to addressing the net-zero transition and reducing emissions will be of
key importance to their operating businesses over the next one to three years.
Over the course of 2024, our sustainable investing invested assets rose to USD 296bn as of 31 December 2024, compared
with USD 282bn at the end of 2023, representing a year-on-year increase of 5%. The positive growth benefited from
market performance and Credit Suisse integration-related impacts, partially offset by foreign exchange effects and net
new money outflows. Sustainable investing invested assets accounted for 4.9% of UBS Group total invested assets at
year-end 2024.
The table below provides additional detail on sustainable investing invested assets for UBS.

Sustainable investments1
For the year ended % change from
USD bn, except where indicated 31.12.24 31.12.23 31.12.22 31.12.23
UBS Group invested assets 6,086.8 5,714.1 3,980.9 7
Sustainable investing invested assets2,3,4,5
Sustainability focus 276.1 259.8 234.0 6
Impact investing 20.3 21.8 19.2 (7)
Sustainable investing invested assets 296.4 281.6 253.2 5
Sustainable investing proportion of UBS Group invested assets (%)6 4.9 6.3 6.4
1 The table above details UBS Group’s sustainable investing invested assets and the evolution thereof. This table does not contain invested assets classified under the Credit Suisse SIF. UBS sustainable investing
invested assets contain invested assets of Credit Suisse portfolios which have been migrated onto UBS platforms and vetted against UBS’s sustainable investing policies or merged with existing UBS SI portfolios. This
process is being carried out in waves and will continue until at least the end of 2025. The Credit Suisse integration-related impact to sustainable investing invested assets in 2024 was approximately USD 9bn, of
which USD 8.2bn in Asset Management and USD 0.7bn in Global Wealth Management. 2 For additional detail on UBS's sustainable investment definition and categories, see section “Our approach to sustainable
finance” above. 3 Certain products have been reclassified during 2024 for reasons including, but not limited to, an evolving regulatory environment, periodic monitoring of the product shelf, and developing internal
classification standards. The impact of these reclassifications on sustainable investing invested assets was immaterial in 2024. 4 Invested assets reported as sustainable investing include limited amounts of instruments
not classified as sustainable investments. This includes cash and cash-like instruments that each fund and portfolio holds for liquidity management purposes, as well as client-directed investments included in sustainable
investing mandates managed by UBS Asset Management. 5 2024 figures exclude USD 13.2bn of invested assets relating to Global Wealth Management’s US business that are undergoing additional validation
procedures to ensure alignment with internal UBS frameworks and standards. Prior periods have been restated to exclude USD 10.6bn and USD 12.9bn as of 31 December 2023 and 31 December 2022, respectively.
6 In line with the progressing integration, for 2024 we report the share of sustainable investing assets as a percentage of UBS Group total invested assets. For 2023, we report the sustainable investing proportion of
UBS AG total invested assets, excluding any invested assets booked by and for Credit Suisse AG.

1 Morningstar. Figures as published by Morningstar using their Sustainable Investing framework and definitions.
2 Morningstar, Global Sustainable Fund Flows: Q3 2024 in Review.
3 Preqin, ESG in Alternatives 2024.
4 UBS, Billionaire Ambitions report 2024.
5 UBS, Global Family Office report 2024.

Sustainability Report 2024 | Supporting opportunities 75

Sustainable financing
In sustainable financing markets, global thematic sustainable bond markets (comprising green, social, sustainable and
sustainability-linked bonds, jointly referred to as labeled bonds) saw issuance volumes increase by 16%1 year on year,
nearly reaching the record level achieved in 2021, which at the time strongly benefited from COVID-related supply factors.
Sovereign, Supranational and Agency (SSA) issuers remain the largest source of labeled bond issuance, accounting for
38% of supply in 2024. Green bond issuance continues to dominate with a 12% year-on-year increase, accounting for
58% of total labeled bonds priced in 2024.
The number of bond transactions facilitated by UBS Investment Bank in 2024 remained strong at 96 (2023: 102).2

Labelled transactions facilitated by UBS1

For the year ended % change from
USD bn, except where indicated 31.12.24 31.12.23 31.12.22 31.12.23
Total labelled transactions
Number of green, social, sustainability, and sustainability-linked (GSSS) bond deals 96 102 77 (6)
Total deal value of green, social, sustainability, and sustainability-linked (GSSS) bond deals 56.0 53.7 47.6 4
UBS-apportioned deal value of above 12.4 12.8 9.8 (3)
of which climate-related transactions
Number of green, sustainability and sustainability-linked bond deals 85 93 69 (9)
Total deal value of green, sustainability and sustainability-linked bond deals 48.1 49.3 42.4 (2)
UBS-apportioned deal value of above 11.2 11.6 8.8 (3)
1 These metrics include transactions meeting the UBS Sustainable Finance Guideline, as described in the ”Sustainability and climate risk policy framework“ section of the Supplement to this report, available at
ubs.com/sustainability-reporting. For 2023 figures, UBS performed an assessment for Credit Suisse green, social, sustainability and sustainability-linked bonds and in the UBS Sustainability Report 2023 included those
deemed to be aligned to UBS sustainable bond guidelines.

1 Bloomberg (all values in this paragraph).

2 These metrics include transactions meeting the UBS Sustainable Finance Guideline, as described in the ”Sustainability and climate risk policy framework“ section of the Supplement to this report, available at
ubs.com/sustainability-reporting.

Sustainability Report 2024 | Supporting opportunities 76

Global Wealth Management
Building on our unrivaled global scale and footprint in wealth management, with invested assets exceeding USD 4.1trn,
we aim to help private clients and family offices achieve their sustainability objectives in line with their targeted financial
performance. We do this via an end-to-end research-driven investment value chain. The starting point is dedicated
sustainability-focused investment research, including strategic asset allocation, thematic and asset-class views, which then
translates into high-conviction instrument selection and advice.
This approach aims to provide insights for clients about sustainability risks and opportunities and how to consider them
within a portfolio context. These research views inform our sustainable and impact investing solutions, which include
multi-asset investment portfolios and a suite of advisory options across equities, bonds and alternative investments.

Integration of Credit Suisse

The acquisition of the Credit Suisse Group offers Global Wealth Management several opportunities to enhance our
existing sustainable investing offering with potentially complementary capabilities and resources. These opportunities
include tools designed to enhance transparency and reporting on the sustainability characteristics of investments and
portfolios, and bringing selected Credit Suisse sustainable and impact investing solutions onto the merged platform.
These solutions will be subject to existing Global Wealth Management sustainable investing frameworks, diligence and
instrument selection approaches. Deviations in these approaches were identified in 2023, with findings integrated into
the migration throughout 2024 and going into 2025. We will phase out dual governance during the migration of
solutions, clients and assets, with the aim of aligning under the existing Global Wealth Management sustainable investing
governance.

2024 highlights
– Our clients’ impact investing assets reached USD 10.5bn (2023: USD 11.2bn).1
– Our clients’ discretionary assets aligned to a sustainable investing strategic asset allocation reached USD 20.6bn (2023:
USD 21.8bn).2
Delivering actionable investment insights
The Global Wealth Management Chief Investment Office (CIO) identifies actionable sustainability-related investment
opportunities, including strategies across real assets (renewables infrastructure), shareholder engagement, carbon
markets, sustainable bonds and thematic areas such as the blue economy, the energy transition(s) and artificial
intelligence (AI). We publish a regular series of sustainable investment views, including a monthly Sustainable Investing
Perspectives series and longer-term-focused quarterly Sustainable InSights and Sustainable Investing in Charts
publications.
Furthermore, we extensively addressed implications for sustainable investing stemming from the elections that took place
in 2024, including in the EU and the US, and from international debates, including UN Climate Week 2024, COP29 and
COP16. We also enhanced the methodology underpinning the CIO Sustainability Scores for issuers, which now covers
approximately 13,000 issuers, informs our investment process within specific strategies and enables issuer-, fund-, and
portfolio-level transparency to be delivered to clients by addressing controversies and their materiality across industries.
The underlying sustainable investing research views are integrated into the CIO House View and are accompanied, where
relevant, by media such as videos or podcasts to facilitate client reach and accessibility.
Building sustainable portfolios
Our flagship cross-asset sustainable investing portfolio – based on our CIO bespoke sustainable investing strategic asset
allocation (SI SAA) – continued to deliver competitive financial performance. This was supported by allocations to high-
quality bonds across the multilateral development bank and thematic sustainable fixed income strategies, and by ESG
leader equities. We also introduced a dedicated tactical allocation to investments linked to AI as part of our thesis that
AI is a key enabler for sustainable solutions.
Changes in our clients’ sustainable investing invested assets reflect private investors’ broad concerns about capital market
performance outside of the US technology sector and the slower-than-expected interest rate cuts, which are yet to
positively impact small- and medium-sized companies. The latter represent a meaningful share of sustainable portfolios.
In addition, the change in our clients’ impact investing assets reflect the return of capital to investors in our earlier private
market impact investing solutions, which have now started to mature.

1 Figures do not include invested assets classified under the Credit Suisse SIF but include invested assets of Credit Suisse portfolios that have been migrated onto UBS platforms and vetted against UBS’s sustainable
investing policies or merged with existing UBS sustainable investing portfolios. This process is being carried out in waves and will continue until at least the end of 2025. The impact on the 2024 changes is negligible.
Figures include limited amounts of instruments not classified as sustainable investment, including cash and cash-like instruments that each portfolio holds for liquidity management purposes.
2 Figures include some Credit Suisse discretionary mandates that are managed according to the sustainable investing SAA and are included in the UBS Global Product Catalogue (GPC) while still being booked in the
Credit Suisse systems. The amount attributed to these products in 2024 was USD 1.7bn. 2024 figures exclude USD 0.6bn of invested assets relating to Global Wealth Management’s US business that are undergoing
additional validation procedures to ensure alignment with internal UBS frameworks and standards. Year-end 2023 values have been restated to exclude USD 0.7bn. Figures include limited amounts of instruments not
classified as sustainable investment, including cash and cash-like instruments that each portfolio holds for liquidity management purposes, as well as client-directed investments included in sustainable investing
mandates.

Sustainability Report 2024 | Supporting opportunities 77

Providing investment solutions for climate, nature and social challenges
In 2024, Global Wealth Management continued to increase the number of investment solutions across asset classes and
strategies to support clients’ decarbonization objectives. Included among the new climate solutions we launched were a
multi-thematic climate-change-focused equity module and the Macquarie Energy Transition Infrastructure Fund, a clean
energy infrastructure solution. We also continued our credit research coverage of individual green bonds, expanding the
available universe for clients who prefer direct investments to fund solutions. These complement our existing solutions
offering and investment tools that allow for building customized and bespoke allocations. Examples include using water
consumption and pollution and waste data to address nature-related risks and opportunities in single stock and bond
portfolios.
We continue to explore ways to develop nature-related products and solutions in our wealth and asset management
businesses. In 2024, we launched the UBS Rockefeller Ocean Engagement Fund in a collaborative approach with
Rockefeller Asset Management. It seeks to provide financial returns and positive impact by engaging with companies that
address ocean health issues. This complements our existing strategies that focus on nature drivers, such as the UBS Future
of Earth fund.
Within social investments, we continued to raise capital for the UBS Gender Equality ETF, which builds on our partnership
with index provider Solactive and expert data provider Equileap. In addition, in 2024 our clients in the Americas had the
opportunity to invest in early-stage education technologies and affordable housing, alongside other impact investing
solutions. This complements our advancement in social investing, where we previously raised USD 1bn of client assets
toward oncology research. In 2024, we saw some of these innovative therapies advance in their stages of regulatory
approval, leading to potentially broader applications in the future.
Educating our clients and their advisors
An important part of the advice we provide is supporting our clients, prospective clients and advisors with timely research
and education on sustainable investing.
Given the rapidly evolving environment around sustainability and investments, it is crucial for advisors to stay up to date
on industry trends, regulatory developments and investment ideas. During 2024, we continued to engage with advisors,
for example through the regular Let’s Talk SI events for Global Wealth Management product and client-facing staff. We
have accelerated training programs for our client-facing staff. For example, approximately 400 of our Asia Pacific Global
Wealth Management employees have benefited from certified training from the University of Zurich. We supplement this
with Lunch and Learn events to discuss topical interests, to ensure sustainable investing remains relevant even after the
training.
Our educational work with investors has also continued to evolve. We conduct dedicated Next Generation and Emerging
Successors client sessions on sustainable and impact investing. Sustainable investing is also integrated into many of our
core flagship client events, with a focus on actionable investment ideas. It is also featured in our Global Family Office
Forums and Philanthropy Roundtable events. In addition, in Asia Pacific, we introduced a new format of CIO-driven
investor engagements, in collaboration where relevant with our Chief Sustainability Office and Investment Bank, covering
specific themes such as carbon removals or impact investing portfolio construction. In the US, we hosted an event on
“Standing Up for the Planet: Conversation with women focused on solutions to climate change” in addition to dedicated
discussions on “Seeking alpha: Integrating a Gender-lens in Climate Investing” (during New York Climate Week) and
roundtables on affordable housing.
› Refer to ubs.com/global/en/wealth-management/sustainable-investing for more information about Global Wealth Management’s
sustainable investing insights
› Refer to the UBS Group Annual Report 2024, available under “Annual reporting” at ubs.com/investors for more information about
the overall business and financial profile of Global Wealth Management as important context for the product and financial
information provided here
› Refer to the “Supporting opportunities” section of this report for more information about the proportion of sustainable
investment assets as part of our total invested assets

Sustainability Report 2024 | Supporting opportunities 78

Personal & Corporate Banking
In our home market, we aim to be the most progressive financial institution when it comes to providing sustainable and
sustainability-linked financial advice and solutions. We are well-positioned to capture transition finance opportunities and
contribute to the decarbonization ambitions of our clients.

Integration of Credit Suisse

We formally completed the merger of UBS Switzerland AG and Credit Suisse (Schweiz) AG on 1 July 2024, marking an
important milestone. The merger of the Swiss legal entities facilitated the ongoing migration of clients and operations
from Credit Suisse platforms to UBS platforms, following business and client- and product-specific requirements. The
transfer of Swiss-booked Credit Suisse banking relationships and products to UBS systems is planned for 2025 and 2026.
We are monitoring the integration of sustainability-related activities and products of former Credit Suisse (Schweiz) AG,
ensuring compliance with the UBS Sustainable Finance Guideline.

2024 highlights
– The sustainable investing products share of clients’ investment assets (excluding cash deposits and savings) in Personal
Banking stood at 43.4% (2023: 46.5%).1
– The total on-balance sheet drawn exposure of sustainable loans granted to corporate and institutional clients booked
on the UBS Switzerland AG platform amounted to USD 2.0bn as of the end of 2024 (excluding mortgages).2
Private clients
Assisting our clients in meeting their sustainability ambitions remained a focus in 2024. Our clients continued to allocate
to sustainable investment solutions during the year, facilitated by access to relevant product offerings such as a
sustainable savings account, sustainable investment funds and sustainable pension solutions via our mobile banking app,
UBS key4. In addition, clients who use UBS key4 banking can also track the CO2 footprint of their account transactions.
Corporate and institutional clients
We support companies on three levels. Firstly, we integrate sustainability into strategic client dialogues, taking a holistic
view of a client’s business operations. This includes identifying key business drivers and obstacles, assessing relevant
regulations and understanding the expectations of customers, employees, investors and civil society.
Secondly, we provide practical solutions tailored specifically to a company’s needs. Smaller businesses that have not yet
addressed sustainability can benefit from simple and cost-effective tools, such as the online platform esg2go or energy
management consulting from EnAW (Energie-Agentur der Wirtschaft – Energy Agency of the Economy). More advanced
companies, which already have anchored sustainability in their corporate strategy and publish a sustainability report, can
leverage sustainable financing options.
Thirdly, we promote partnerships that extend beyond traditional banking, such as in the area of cyber security. Our UBS
Marketplace platform offers access to a variety of services that, among others, support companies on their journey toward
greater sustainability. Additionally, through sector-specific regional client roundtables, we aim to provide a platform where
challenges and opportunities related to sustainability can be discussed among clients and best practices shared in a
targeted manner and facilitated by us.
Introducing sustainability-linked loans for commodity trade finance and corporate clients
Following the successful launch of sustainability-linked loans for multinational corporations in 2023, in 2024 we launched
sustainability-linked loans (bilateral and syndicated loans) for commodity trade finance and corporate clients (small and
medium-sized enterprises). We closed several such transactions. For example, we became the banking partner of choice
for Retripa, a leading Swiss company specializing in waste disposal and recycling, and we were appointed as the bank
partner of choice by neustark, the ETH Zurich university spin-off and start-up specializing in the petrification of
atmospheric CO₂ in recycled concrete.
Continuing to support investing needs of institutional clients
Swiss pension funds and insurance companies are aiming to increase their sustainable investments. To support this goal,
we are offering tailored sustainable investment solutions made available by Asset Management. In addition, we provide
these clients with innovative reports that offer extensive transparency about their portfolio with regard to sustainability
aspects.

1 Products booked on Credit Suisse platforms are not included as they have not been migrated onto UBS platforms and vetted against UBS sustainable investing policies or merged with existing UBS sustainable investing
portfolios.
2 Loans booked on the Credit Suisse platform are not within the scope of this metric. As Credit Suisse loans migrate to the UBS infrastructure, due diligence against the UBS sustainable product guidelines framework
will be performed.

Sustainability Report 2024 | Supporting opportunities 79

Swiss real estate
We further developed our Swiss real estate offering to support clients who are renovating and refurbishing their
properties in a climate-transition-friendly manner. Examples are listed below, including the launch of new products and
the creation of new partnerships.
UBS Loan Green
With the rollout of this new product, we aim to support sustainability in investment and commercial properties. It is
designed for clients who are planning new low-energy constructions or energy-efficient renovations or purchasing
energy-efficient properties. The product provides tailored financing and expert advice and accepts various building
certifications. In addition, we support our clients with a contribution to the cost of securing a building certification, up
to a maximum amount of CHF 4,000 per client.
The power of partnerships
In 2024, we started to offer a new Switzerland-wide advisory solution, UBS Renovation Service, with Wincasa, a leading
Swiss property service provider, to incentivize more sustainable renovation of buildings in the country. The solution
supports owners of investment properties throughout an entire renovation project, offering tailored advice, construction
coordination and financing services from a single source with the focus on safeguarding the property’s long-term value.
Moreover, through our new partnership with Norm Technologies AG, a provider of innovative digital solutions, we offer
homeowners a digital and easy-to-use energy analysis and a concrete roadmap for sustainable renovation. In just a few
steps, clients can order a tailor-made digital energy certificate by uploading the relevant basic data about their property.
› Refer to the UBS Group Annual Report 2024, available under “Annual reporting” at ubs.com/investors for more information about
the overall business and financial profile of Personal & Corporate Banking as important context for the product and financial
information provided here
› Refer to the “Supporting opportunities” section of this report for more information about the proportion of sustainable
investment assets as part of our total invested assets

Sustainability Report 2024 | Supporting opportunities 80

Asset Management
With over 20 years1 of sustainable investing expertise, we continue to offer a range of strategies and customized solutions
that aim to deliver sustainable outcomes alongside financial returns. Our sustainable investing capabilities cover active
and passive styles of investing and span asset classes. There is rarely a one-size-fits-all solution for clients, which is why
we incorporate a variety of approaches. These include active ownership, impact- and transition-focused strategies. We
integrate data science into our sustainable investing processes to drive innovation and create more efficient alpha
opportunities.

Integration of Credit Suisse

Significant progress was made in 2024 as part of the integration of Asset Management (Credit Suisse). We continue to
align our governance structures and policies and are bringing together our processes and teams to enhance collaboration
and leverage our combined strengths. We have successfully onboarded the initial migration waves of Credit Suisse
products onto the UBS shelf.
In 2025, we will continue progressing in our integration and with the onboarding of Credit Suisse products into the UBS
portfolio. Our focus remains on client portfolios in terms of the delivery of sustainability and investment outcomes,
creating opportunities and expanding client offerings where possible thanks to our combined organization.

2024 highlights
– Supporting our clients to achieve their sustainable investing goals: 20% of Asset Management’s fund offering2 globally
will be sustainable investing products, providing choice for clients. At the end 2024, 23.4% of Asset Management’s
fund offering consisted of sustainable investing products.
– At the end of 2024, Asset Management managed sustainable investing invested assets of USD 220.4bn (2023:
USD 203.4bn).3
– At the end of 2024, Asset Management had 49 (2023: 35) net-zero ambition portfolios available for clients with a
combined invested assets value of USD 64.4bn (2023: USD 35.5bn).4
– Asset Management actively engaged with 321 companies on sustainability-related topics. Of the total of 473 meetings
undertaken on sustainability-related topics, 300 included dialogue regarding environmental and social issues (2023:
373 companies, 536 total meetings and 304 meetings on environmental and social issues)
– Asset Management’s corporate engagements with investee companies on sustainability-related topics achieved 66.7%
positive progress against preset objectives (2023: 56.5%).

Our sustainable investing offering

Asset Management has a broad sustainable investing product shelf that includes traditional and alternative funds, ETFs
and mandates with broad sustainability and climate orientations. Examples of such products include strategies that invest
in climate solutions, the energy transition, infrastructure debt, green real estate and more. To meet our client preferences
and demand we constantly review our suite of sustainability and climate-related portfolios.
Notable climate-related offering developments in 2024
We expanded our offering in the net-zero fixed income space to cover both corporate and sovereign issuers. We
partnered with Bloomberg to create The Bloomberg Global Treasury Net Zero Progress Index, a net-zero sovereign
progress index. This methodology served as the benchmark index to convert two of our existing funds to net-zero-aligned
strategies: the UBS (CH) Investment Fund – Bonds Global ex CHF Government Net Zero Ambition Index, and the UBS
(CH) Investment Fund – Bonds Global Corporate Climate Aware Hedged NSL.
We added two low-carbon ETFs to support the preferences of clients that wish to reduce carbon emissions in their ETF
investments: the UBS (Irl) ETF plc – MSCI Canada ESG Universal Low Carbon Select UCITS ETF, and the UBS (Irl) ETF plc –
S&P 500 Climate Transition ESG UCITS ETF. These strategies target investee companies reducing carbon emission
intensities alongside exclusions in fossil fuel extraction and thermal coal power.

1 UBS Asset Management (Americas) Inc. started its first sustainability strategy in 1997.
2 Measured over a three-year rolling period. The scope includes traditional and alternative funds sponsored and managed by Asset Management. Mandates, white label, Asset Management single investor and feeder
funds are excluded. As of 2024, products managed by Credit Suisse Asset Management that are categorized in accordance with the legacy Credit Suisse SIF are within the scope of the total number of funds but not the
total number of UBS Asset Management sustainable investing funds. They will only be included once migrated onto UBS Asset Management product shelves, i.e. once corresponding data has been onboarded to UBS
systems, they are fully meeting the requirements of UBS’s Group Sustainable Investing Policy, and are classified as a UBS sustainable investing product. This process is being carried out in waves and will continue at
least until the end of 2025.
3 Figures do not include invested assets classified under the Credit Suisse SIF but include invested assets of Credit Suisse portfolios that have been migrated onto UBS platforms and vetted against UBS’s sustainable
investing policies or merged with existing UBS sustainable investing portfolios. This process is being carried out in waves and will continue at least until the end of 2025. The Credit Suisse integration-related impact to
sustainable investing invested assets in 2024 was USD 8.2bn. Invested assets reported as sustainable investing include limited amounts of instruments not classified as sustainable investments. This includes cash and
cash-like instruments that each fund and portfolio holds for liquidity management purposes, as well as client-directed investments included in sustainable investing mandates.
4 Credit Suisse portfolios are in the process of being assessed in the context of the Asset Management's Net Zero Alignment Framework to identify portfolios with a net-zero ambition and are therefore not reflected in
the reported metrics.

Sustainability Report 2024 | Supporting opportunities 81

Other offering developments in 2024
We expanded our range of sustainability-related options across our ETFs strategies in fixed income and equities. New
launches included the UBS (Irl) ETF plc – EUR Ultra-Short Bond ESG UCITS ETF, the UBS (CH) Investment Fund – Equities
Switzerland Small & Mid Cap ESG Passive II, and the UBS (Irl) ETF plc – MSCI Emerging Markets ex China Socially
Responsible UCITS ETF. These strategies require investee companies to exceed minimum ESG rating thresholds and
minimize or exclude exposure to companies involved in activities that include tobacco production, controversial weapons
and severe ESG controversies.
Active ownership
In 2024, we continued our programs of engagement with investee companies, focusing on outcomes that benefit
companies, their shareholders and wider society. During the year, we expanded our approach to escalation actions where
engagements are making insufficient progress including two instances where we participated in the co-filing of
shareholder resolutions. Some highlights from the perspective of our specific environmental and social engagements are
included below.
Climate
In the sixth year of our climate engagement program, we expanded the scope from six carbon intensive sectors to include
financial institutions. Beyond decarbonization and transition planning, we are also engaging with companies on their
plans to build resilience and adapt to chronic physical risks and extreme weather events.
Social
We engage with investee companies on social topics in three focus areas: human capital, human rights and health. In
our human rights engagements, we focus on worker safety in vulnerable regions, responsible wage levels, working
conditions under extreme heat and flooding, and just transition for workers exposed to climate change transition. In
these areas we also worked through the Investor Alliance on Human Rights and FAIRR. In our human capital
engagements, we broadened our focus to include both gender diversity and other diversity issues with a view to
enhancing the innovation capability of companies. We also engaged on human capital development for AI and human
resources challenges. In our health engagements, we observed good progress on company disclosure, and we focused
on the strategic direction of healthier products, in part by working through the Access to Nutrition investor network.
› Refer to the “Environment” section of this report for more information about the climate program

Impact measurement
Asset Management has formed a collaboration with the Sustainable Development Investments Asset Owner Platform
(SDI AOP) to develop impact measurement metrics that may be used for listed equity and fixed income portfolios. In
2024, Asset Management contributed proprietary models to the initiative in order to accelerate the development of
datasets that can inform investment decisions and help set a market standard for outcomes reporting.
› Refer to the UBS Group Annual Report 2024, available under “Annual reporting” at ubs.com/investors, for more information
about the overall business and financial profile of Asset Management as important context for the product and financial
information provided here
› Refer to the “Supporting opportunities” section of this report for more information about the proportion of sustainable
investment assets as part of our total invested assets

Sustainability Report 2024 | Supporting opportunities 82

Investment Bank
The Investment Bank offers clients global advice and access to the world’s primary, secondary and private capital markets.
In 2024, we continued to hone our capabilities through initiatives across Global Markets, ESG Research, Global Banking
and data-led offerings.

2024 highlights
– We facilitated 96 GSSS bond transactions globally (2023: 102).1
– The Investment Bank retained first place in GSSS bond issuance in Brazil.2
– We successfully completed two pilot transactions on the Carbonplace platform.

Global Research
In 2024, ESG Research delivered thematic reports on topics including: nuclear energy; the EU, US and Asia Pacific
sustainability-related regulatory landscape; views on the ESG and sustainable investing landscape; advanced recycling;
biomass; and desalination. More generally, through our research we addressed ways in which ESG factors connect to
individual markets, sectors and companies in our coverage. ESG research is supported by UBS Evidence Lab, which
provides data-driven insights into ESG-relevant questions, and by UBS HOLT, which provides a clear, objective framework
for comparing and valuing over 20,000 companies worldwide.

Global Markets
Within Global Markets, our capabilities include developing products and solutions that aim to support our clients in
accessing carbon credits (i.e. emission allowance, reduction and / or removal) and thematic exposure to sustainability
sectors. In 2024, we successfully completed two pilot transactions on the Carbonplace platform, a carbon credit
transaction network we co-founded in 2022 as part of a consortium of nine banks. We will continue to drive adoption
of the platform and advance our carbon portfolio trading offering to clients.
We have also focused on establishing the groundwork for green structured issuance, blended finance, emission
allowances and project-based carbon removals financing offerings. Building out this product suite is an important step in
offering clients ESG-aligned investment solutions alongside the more traditional product set, particularly as it enables us
to demonstrate our origination capabilities.
In this area, we can differentiate ourselves meaningfully from competitors through our collaboration with the UBS
Optimus Foundation and our Chief Sustainability Office, with many leading non-governmental organizations and project
developers across the climate and nature sectors. It is critical that we realize our ambitions by concentrating on the
opportunities our clients will find compelling. That will require us to continue increasing the level of engagement with
clients and to drive more product innovation in 2025.
› Refer to the “Driving social impact” section of this report for more information about UBS Optimus Foundation

1 These metrics include transactions meeting the UBS Sustainable Finance Guideline, as described in the ”Sustainability and climate risk policy framework“ section of the Supplement to this report, available at
ubs.com/sustainability-reporting.
2 Bloomberg.

Sustainability Report 2024 | Supporting opportunities 83

Global Banking
Our Global Banking teams, leveraging the expertise of the Corporate Shareholder Advisory group (“CSA”), supported
our clients globally by assessing their sustainability profile from the point of view of investors and other stakeholders and
linking these profiles to investor demand and valuation.
2024 deal highlights
– Financial advisor to a US-based manufacturing company in connection with a spin-off of its power, renewables and
electrification subsidiary. Global Banking helped the company navigate the ESG market and regulatory trends in the
EU, assessed the subsidiary’s positioning with ESG funds by developing an equity story featuring sustainability to target
investor demand, and identified strategic merger and acquisition and growth activities.
– Global coordinator for the USD 2.7bn follow-on green equity offering of a Brazilian water and sanitation company on
the Sao Paulo Stock Exchange (B3). The company is the first outside Europe to be granted a “green equity”
designation, defined in Brazil by the B3 exchange, with 100% of its revenues and 96% of its capex defined as green
by S&P Cicero.
Leveraged and debt capital markets
The Investment Bank arranged USD 56.0bn1 GSSS financing through 96 bond deals during 2024 (2023: USD 53.7bn and
102 deals). We continued to solidify our market-leading position in the Swiss franc-denominated market, with the
Investment Bank’s market share at 31%.2 Next to Switzerland, our transaction activity in the GSSS bond market continued
to be particularly strong in Australia and Brazil. In Australia, we led nine SSA Australian dollar-denominated transactions
in 2024.
Among these key transactions, we structured and executed the Australian government’s inaugural AUD 7bn green
treasury bond, the first to be launched from its green bond program as part of its wider sustainable finance strategy.
Green treasury bonds are designed to enable investors to back public-sector projects that drive Australia’s net-zero
transformation forward, support environmental objectives and help finance high-quality sovereign projects with targeted
environmental outcomes. They also boost the scale and credibility of the domestic green finance market while attracting
green capital to the country.
In July 2024, our joint venture in Brazil, UBS BB Investment Bank, acted as global coordinator and sustainability advisor
to a Brazilian cosmetics and personal care company on its BRL 1.3bn sustainability-linked debenture. This was the largest
debt instrument ever linked to the Amazon. Its specific key performance indicator focused on the level of inputs
sustainably sourced from the Amazon.
› Refer to the UBS Group Annual Report 2024, available under “Annual reporting” at ubs.com/investors for more information about
the overall business and financial profile of the Investment Bank as important context for the product and financial information
provided here

1 Total face value of GSSS financing.

2 Bloomberg.

Sustainability Report 2024 | Supporting opportunities 84

Group Treasury activities
In 2024, Group Treasury continued to invest its high-quality liquid assets portfolios (HQLA) under a dedicated ESG
investment framework. This framework guides the integration of ESG considerations into the investment process
alongside more traditional economic and risk dimensions. The framework supports investments in green, social and
sustainability labeled bonds.
At the end of 2024, Group Treasury held USD 7.9bn of green, social and sustainability labeled bonds in its HQLA
portfolios, compared with the USD 8bn it held in 2023.

Green Funding Framework

Our Group-wide Green Funding Framework sets out how we intend to connect our sustainability objectives with access
to financial markets through a variety of funding products.
› Refer to ubs.com/greenbonds for more details about the UBS Green Funding Framework, external reviews and annual reporting
(including impact and allocation reporting)

Sustainability Report 2024 | Supporting opportunities 85

Managing sustainability and
climate risks
Introduction
Managing sustainability and climate risks is a key component of our corporate responsibility. We define sustainability and
climate risk as the risk that we negatively impact on, or are impacted by, climate change, natural capital, human rights
and other environmental and social matters. Sustainability and climate risks may manifest as credit, market, liquidity,
business or non-financial risks for UBS, resulting in potential adverse financial, liability or reputational impacts.
Group Risk Control (GRC) is responsible for our firm-wide sustainability and climate risk framework and the management
of exposure to sustainability and climate (financial) risks on an ongoing basis as a second line of defense. Group
Compliance, Regulatory & Governance (GCRG) monitors the adequacy of our control environment for non-financial risks
(NFR), applying independent control and oversight. We manage sustainability and climate risk within a dedicated risk
management framework. In 2024, the UBS Group (including Credit Suisse) was managed under the same framework.
Our sustainability and climate risk framework continues to evolve through our multi-year initiative focused on meeting
regulatory requirements and enhancing core processes, such as reporting and disclosures.
› Refer to the “Sustainability and climate risk policy framework” section of the Supplement to the UBS Group Sustainability Report
2024, available at ubs.com/sustainability-reporting, for more information

Sustainability and climate risk management

framework
Our firm-wide sustainability and climate risk management framework and related policies, standards and guidelines form
the basis of our management practices and control principles. They enable us to identify and manage potential adverse
impacts on the climate, the environment and human rights, as well as related risks affecting us and our clients, while
supporting the transition to a low-carbon economy.
Overseen by senior management, the framework applies to the balance sheet, our own operations and our supply chain.
It consists of four different phases: (i) risk identification and measurement; (ii) monitoring and risk appetite setting; (iii) risk
management and control; and (iv) risk reporting and disclosure.
› Refer to “Our investment management approach to sustainability and climate risks” in this section for a description of our
sustainability and climate risk investment approach
› Refer to the “Sustainability and climate risk policy framework” section of the Supplement to the UBS Group Sustainability Report
2024, available at ubs.com/sustainability-reporting, for more information

Sustainability Report 2024 | Managing sustainability and climate risks 86

Sustainability and climate risk management framework

1 Risk identification
and measurement 2 Monitoring and
risk appetite setting
Sustainability and climate risks are identified and their Sustainability and climate risk exposures, emerging risks
materiality is measured and regulations are monitored and metrics reported
internally to facilitate risk appetite setting
– Annual sustainability and climate risk materiality assessment
– Climate risk heatmaps and climate risk counterparty-level – Monitoring of sustainability and climate risks
rating model (including regulatory monitoring)
– Scenario-based climate analysis and stress-testing – Sustainability and climate risk metrics
exercises, including the development of a – Qualitative and quantitative sustainability and
stress-testing framework climate risk appetite

4 Risk reporting
and disclosure 3 Risk management
and control
Key sustainability and climate risk considerations are Management and control processes ensure that material
included in internal reporting and external disclosures sustainability and climate risks are identified, measured,
monitored and escalated in a timely manner
– Sustainability and climate risk content included in the UBS
Group, divisional, regional and legal entity risk reports – Integrate sustainability and climate risk considerations
– External disclosures of sustainability and climate risk in into decision-making processes and related policies
annual and sustainability reports – Develop in-house capacity to enhance risk management,
including specialized training and further research and
development of tools
– Centralize and execute ESG data strategy

Related toolkit

The Group Chief Risk Officer is responsible for the development of the sustainability and climate risk framework and risk
appetite, along with its integration into existing Group frameworks. The Chief Risk Officer for Sustainability supports the
Group Executive Board by providing leadership on sustainability in collaboration with business divisions and Group
functions and is supported by the sustainability and climate risk unit. In addition, the Risk Committee and the Corporate
Culture and Responsibility Committee of the Board of Directors jointly monitor the progress of our efforts to address
sustainability and climate risk.
› Refer to the “Supplement to Governance” section of the Supplement to the UBS Group Sustainability Report 2024, available at
ubs.com/sustainability-reporting, for further details on the sustainability governance at UBS
Our multi-year sustainability and climate risk initiative (the SCR Initiative), launched in 2020 by the sustainability and
climate risk unit, continues to build capacity through expertise, collaboration, technology and data. This initiative was
created to integrate sustainability and climate risk considerations into our traditional financial and non-financial risk
management frameworks, which address these traditional risks across our business divisions and legal entities, in an ever-
changing regulatory environment.
In 2024, the SCR Initiative further advanced its efforts toward the goal of fully integrating qualitative and quantitative
sustainability and climate risk considerations into the firm’s traditional risk management and stress-testing frameworks.
Developments in 2024 included introducing climate-driven risk analytics into the credit decision-making process for
selected portfolios, introducing climate-driven quantitative risk appetite where mandated, developing climate risk-
adjusted stress models and scenario analysis capabilities, expanding climate risk monitoring internally, and further refining
processes, governance and methodologies to drive forward more comprehensive sustainability and climate risk reporting
and disclosures. Furthermore, to monitor and control the utilization of the divisional contributions toward the 2030
corporate lending sector decarbonization targets, a decarbonization control framework has been established with defined
thresholds per sector and business division and at a Group level. These thresholds are defined annually and the utilization
against the agreed thresholds is monitored on a quarterly basis.
Sustainability and climate risk management activities conducted in 2024 are described below, across the four phases of
the sustainability and climate risk framework.
› Refer to the “Supplement to Governance” and “Supplement to Managing risks“ sections of the Supplement to the UBS Group
Sustainability Report 2024, available at ubs.com/sustainability-reporting, for more details about our sustainability and climate risk
policy framework

Sustainability Report 2024 | Managing sustainability and climate risks 87

Risk identification and measurement
We assess the materiality of our sustainability- and climate-driven risks and impacts on an annual basis. This is
underpinned by an assessment of how key risk drivers may impact us through financial and non-financial risks (e.g. credit
losses or reputational incidences resulting in lost revenues) and by assessing the proximity of our activities to the potential
negative impact on the environment (including climate) and human rights.
We aim to identify sustainability and climate risks at divisional and cross-divisional levels, both through the sustainability
and climate risk materiality assessment mentioned above and, increasingly, by integrating them into the firm-wide
traditional risk identification and measurement processes.
› Refer to the “Environment” section of this report for details about our climate-related materiality assessment and the underlying
methodology

Our risk identification methodologies collectively define our focus areas and key risk drivers. The results of these efforts
contribute to our sustainability and climate risk management strategy by:
– identifying concentrations of climate-sensitive exposure that may make us vulnerable to financial and non-financial
risks, facilitating resource prioritization to enhance risk quantification and subsequent management actions; and
– supporting the implementation of a client-centric business strategy, in which we support clients with their sustainability
transition and identify clients who can benefit from sustainability-focused UBS products and services.
The outputs of the above process supports senior management in taking informed decisions about sustainability- and
climate-related risks and provides stakeholders with key information through our external disclosures.

Transition risk
Climate-driven transition risks, which arise from the efforts to mitigate the effects of climate change, may contribute to
a structural change across economies and consequently affect banks and the stability of the broader financial sector.
These risks extend to the value of investments and may also affect the value of collateral (e.g. real estate).
In 2024, UBS developed a transition risk rating model (TR RM), aligned with the transition risk heatmap (TR H) and
designed to provide a company-level rating of transition risk, where input data is available The TR RM mainly relies on
two inputs: (i) the output of the transition risk heatmap (TR H) and (ii) the Company Transition Assessment Scorecard
(CTAS), an internal UBS tool that systematically categorizes listed companies based on publicly available data from external
third-party data sources into climate transition readiness categories. Whenever CTAS does not provide an assessment for
a company, the model falls back to an existing transition risk heatmap (TR H).
The climate transition risk profile chart shows that, at the end of 2024, the exposure of the UBS Group to climate-sensitive
sectors and related business activities has decreased due to accelerated winddown of Non-core and Legacy corporate
exposures. Climate-driven transition-risk sensitive exposure accounted for 17.1% of the total gross lending exposure,
down from 19.2% in 2023. Key sectors contributing to sensitive exposure continues to be same as 2023 (i.e. real estate,
industrials and transportation). Compared to last year, our sensitive exposure to Services and Technology sector has
increased, in line with a methodology change where certain business activities that were previously rated non-sensitive
are now rated sensitive due to increased reliance on artificial intelligence (AI) and data center operations requiring higher
use of power.
› Refer to the “Supplement to Managing sustainability and climate risks” and the “Basis of preparation” sections of the Supplement
to the UBS Group Sustainability Report 2024, available at ubs.com/sustainability-reporting, for details on methodologies

Sustainability Report 2024 | Managing sustainability and climate risks 88

Sustainability Report 2024 | Managing sustainability and climate risks

Climate-driven transition risk profile chart for UBS Group AG1,2,3,4,5,6

In USD billion Transportation
Agriculture 0.04 Fossil fuels
0.01 0.10 High
Real estate
Industrials 0.18 Industrials 3.70 Real estate 0.18 Transportation 0.04
3.70 3.46 Chemicals 0.13 Development and management of 0.04 Land-based shipping high-carbon (trucks)
0.24 Cement or concrete manufacture real estate
0.05 Real estate financing Agriculture 0.01
Utilities 1.72 0.01 Livestock – beef extensive grazing
1.70 Power production: regulated and Fossil fuels 0.10
5.75 (0.82%) Utilities
1.72
high-carbon fuels
0.03 Waste water treatment
0.07 Refining and marketing
0.03 Shale gas
High

Moderately high
15.07 (2.15%) Real estate 41.06
33.79 Real estate financing
0.98 Land-based shipping high-carbon (trucks)
0.45 Airlines – commercial
Fossil fuels 1.15
Not classified6 0.82 Wholesale and trading: crude oil and
7.26 Development and management of 0.09 Automobile manufacture (high-carbon fuels) natural gas
Services and Utilities real estate 0.21 Conventional oil (on- / off-shore)
technology 0.47 Metals and mining 3.65 0.13 Gas processing (including LNG)
57.23 (8.15%) 0.06 Fossil fuels
1.15
Industrials 14.31 2.83 Mining conglomerates (including trading)
Low Sovereigns Agriculture 6.62 Machinery and related parts manufacturing 0.60 Production of other mined metals Utilities 0.47
0.02 3.55 3.64 Pharmaceuticals and raw materials 0.35 Power production: regulated and
Real estate 2.01 Consumer durables manufacturing 0.21 Production of steel and iron high-carbon fuels
Metals and mining 1.67 Plastics and petrochemicals manufacture
41.06 0.12 Waste water treatment
3.65 0.34 Chemicals Agriculture 3.55
0.03 Electronics manufacture 3.55 Food and beverage production Services and technology 0.06
Transportation
6.34 0.06 Media, information technology

701.80 USD bn 70.60 (10.06%) Transportation 6.34

2.23 Airlines – cargo Sovereigns 0.02
Total exposure7 Moderately 1.57 Sea-based shipping (high-carbon fuels) 0.02 Sovereigns
high 1.02 Transportation parts and equipment supply

Industrials
14.31 Moderate
Services and technology 9.25 Fossil fuels 6.66 Metals and mining 0.72
9.25 Media, information technology 5.88 Wholesale and trading: refined 0.44 Metal ore mining not elsewhere classified
Sovereigns petroleum products 0.22 Metal iron ores
Financial services 0.33 Utilities Industrials 9.09 0.35 Downstream oil and gas distribution
509.25 (72.56%) 0.03 0.72 4.44 Electronics manufacture 0.32 Integrated oil and gas
0.04 Production of other mined metals
and raw materials
Moderately low Metals and mining
0.72 1.87 Other consumer goods manufacturing 0.10 Transportation and storage (gas) 0.02 Production of steel and iron
Services and Agriculture 1.29 Aerospace and defence activities 0.02 Wholesale and trading: crude oil and
technology 3.36 1.21 Clothing manufacture natural gas Utilities 0.72
9.25 0.14 Plastics and petrochemicals manufacture 0.53 Waste disposal and recycling
Real estate 0.11 Machinery and related parts manufacturing Real estate 6.09 0.12 Wholesale and trading: electricity
6.09 0.02 Consumer durables manufacturing 3.44 Construction – non-infrastructure and power
2.44 Real estate financing 0.08 Grid operation and transmission

43.91 (6.26%) Transportation 7.67

5.93 Sea-based shipping (high-carbon fuels)
0.18 Development and management of
real estate Sovereigns 0.33
Moderate 1.06 Passenger ships 0.03 Construction of buildings and 0.26 Government agencies
0.30 Land-based shipping high-carbon (trucks) related activities 0.07 Sovereigns
Fossil fuels 0.16 Airlines – cargo
6.66 0.14 Automobile manufacture Agriculture 3.36 Financial services 0.03
(high-carbon fuels) 2.67 Food and beverage wholesale / retail 0.02 Asset managers and asset owners
0.08 Transportation parts and equipment supply 0.31 Crops – high emissions intensity 0.01 Banks
Industrials 0.28 Food and beverage production
9.09 0.07 Other agricultural services
Transportation 0.02 Livestock – other
7.67

1 Gross lending exposure consists of total on-balance sheet loans and advances to customers and off-balance sheet guarantees and irrevocable loan commitments (within the scope of expected credit loss) and is based on consolidated IFRS numbers (inclusive of purchase price allocation adjustments recorded in the UBS Group as a result of
the acquisition of Credit Suisse in compliance with IFRS 3, Business Combinations). 2 UBS continues to collaborate to resolve methodological and data challenges, and seeks to integrate both impacts to and dependency on a changing natural and climatic environment in how it evaluates risks and opportunities. 3 Climate risks are scored
between 0 and 1, based on sustainability and climate risk transmission channels. Risk ratings represent a range of scores across five rating categories: low, moderately low, moderate, moderately high and high. The climate-sensitive exposure metrics are determined based upon the top three of the five rated categories i.e. moderate to high.
4 Methodologies for assessing climate-related risks are emerging and may change over time. As the methodologies, tools and data availability improve, we will further develop our risk identification and measurement approaches. The Lombard lending rating is assigned based on the average riskiness of collateral. 5 Over the last year, the UBS
Group continued its efforts to integrate Credit Suisse systems and data. As a result, the metric calculation process benefits from data enhancement even when the methodology remains the same year-on-year. At the same time, integration work is ongoing and expected to bring in further data alignment in future which may require restatement
of reported metrics. 6 As the transition and physical risk rating models and physical risk heatmap model are embedded further into the risk management framework, we may identify new use cases that could trigger validation of the model for identified use cases and associated enhancements. 7 Not classified represents the portion of UBS’s
89

business activities where methodologies and data are not yet able to provide a rating.
Physical risk
Climate-driven physical risks arise from acute hazards, which are increasing in severity and frequency, and chronic climate
risks arise from an incrementally changing climate. Climate-driven physical risks may contribute to a structural change
across economies and consequently affect banks and the stability of the broader financial sector. These risks extend to
the value of investments and may also affect the value of collateral (e.g. real estate).
In 2024, UBS developed a physical risk rating model (PR RM), aligned with the physical risk heatmap model (PR HM). The
PR RM is designed to provide a company-level indication of physical risk while both models are designed to provide the
UBS Group exposure to climate-driven physical risks. The PR RM and PR HM measure how four acute physical risk hazards
(wildfires, heatwave, floods and tropical cyclones) may drive physical risk of the companies.
The climate physical risk profile chart shows that, at the end of 2024, the exposure of the UBS Group to climate-sensitive
sectors and related business activities has decreased due to accelerated winddown of Non-core and Legacy corporate
exposures. Climate-driven physical-risk sensitive exposure accounted for 9.8% of the total gross lending exposure, down
from 11.7% in 2023. Geographically, the majority of the sensitive exposure is from the Americas region, followed by
Switzerland and other geographical locations. Most of the year-on-year reduction in sensitive exposure is due to Non-
core and Legacy exposure winddown in the Americas region. At Group level, most of the climate-sensitive physical risk
exposure is located within countries that have a relatively high adaptive capacity to manage physical risk hazards resulting
in a moderately low risk profile at regional level.
› Refer to the “Supplement to Managing sustainability and climate risks” and the “Basis of preparation” sections of the Supplement
to the UBS Group Sustainability Report 2024, available at ubs.com/sustainability-reporting, for details on methodologies

Sustainability Report 2024 | Managing sustainability and climate risks 90

 Climate-driven physical risk profile chart for UBS Group AG1,2,3,4,5,6,7
Sustainability Report 2024 | Managing sustainability and climate risks

In USD billion
9.68 (1.38%)
15.07 (2.15%) Moderately high
Not classified
59.25 (8.44%)
Moderate

Switzerland, rated

701.80 USD bn
moderately low, holds 53%
of total lending exposure.
Total exposure8

280.67 (39.99%)
Moderately low

337.13 (48.04%)
Low

Switzerland9 Americas EMEA

2.05 18.45 Moderately low weighted average 0.72 32.49 Moderately low weighted average 1.27 6.55 Moderately low weighted average
Not classified Sensitive physical risk rating Not classified Sensitive physical risk rating Not classified Sensitive physical risk rating

Key contributing sectors Exposure Key contributing sectors Exposure Key contributing sectors Exposure
to sensitive exposure to sensitive exposure to sensitive exposure
Services and technology 7.51 Services and technology 9.71 Transportation 3.91
Transportation 4.54 Financial services 9.68 Agriculture 0.95
374.84 USD bn Industrials 1.99 133.96 USD bn Industrials 5.84 87.64 USD bn Services and technology 0.74
Total exposure Total exposure Total exposure
Others 4.42 Others 7.26 Others 0.95

354.34 100.76 79.82

Non-sensitive Non-sensitive Non-sensitive

Asia Pacific Others10

0.28 2.50 Moderately low weighted average 10.75 8.95 Moderately low weighted average
Not classified Sensitive physical risk rating Not classified Sensitive physical risk rating

Key contributing sectors Exposure Key contributing sectors Exposure

to sensitive exposure to sensitive exposure
Financial services 0.79 Financial services 8.36
35.31 USD bn Real estate financing 0.34 70.04 USD bn Services and technology 0.58
Total exposure Metals and mining 0.33 Total exposure Others 0.01
Others 1.05

32.52 50.35
Non-sensitive Non-sensitive

1 Gross lending exposure consists of total on-balance sheet loans and advances to customers and off-balance sheet guarantees and irrevocable loan commitments (within the scope of expected credit loss) and is based on consolidated IFRS numbers (inclusive of purchase price allocation adjustments recorded in the UBS Group as a result of
the acquisition of Credit Suisse in compliance with IFRS 3, Business Combinations). 2 UBS continues to collaborate to resolve methodological and data challenges and seeks to integrate both impacts to and dependency on a changing natural and climatic environment, in how it evaluates risks and opportunities. 3 Climate risks are scored
between 0 and 1, based on sustainability and climate risk transmission channels. Risk ratings represent a range of scores across five rating categories: low, moderately low, moderate, moderately high and high. The climate-sensitive exposure metrics are determined based upon the top three of the five rated categories i.e. moderate to high.
4 Methodologies for assessing climate-related risks are emerging and may change over time. As the methodologies, tools and data availability improve, we will further develop our risk identification and measurement approaches. The Lombard lending rating is assigned based on the average riskiness of collateral. 5 The world map is colour-
coded to reflect the exposure-weighted average physical risk rating of a given region. Countries are grouped into regions according to the UBS Country and Region Data Standard. 6 Over the last year, the UBS Group continued its efforts to integrate Credit Suisse systems and data. As a result, the metric calculation process benefits from data
enhancement even when the methodology remains the same year-on-year. At the same time, integration work is ongoing and expected to bring in further data alignment in future which may require restatement of reported metrics. 7 As the transition and physical risk rating models and physical risk heatmap model are embedded further into
the risk management framework, we may identify new use cases that could trigger validation of the model for identified use cases and associated enhancements. 8 Not classified represents the portion of UBS’s business activities where methodologies and data are not yet able to provide a rating. 9 The Switzerland region includes a trivial
91

exposure (<1%) booked in Liechtenstein. 10 “Others” region includes exposure to countries not available, global funds and multilateral institutions.
Climate scenario analysis
We use scenario-based approaches to assess our exposure to physical and transition risks stemming from climate change.
We have introduced several in-house assessments facilitated by industry collaborations to tailor approaches for addressing
methodological and data challenges. We have utilized dedicated risk models incorporating systematic and idiosyncratic
effects to carry out stress testing exercises covering short-, medium- and long-term horizons.
The work performed includes regulatory scenario analysis and stress test exercises such as the Bank of England’s (BoE)
2021 Climate Biennial Exploratory Scenario (CBES), the 2022 Climate Risk Stress Test (CST) of the European Central Bank
(the ECB), which assesses banks’ preparedness for dealing with financial and economic shocks stemming from climate
risk; and the 2024 Swiss Financial Market Supervisory Authority (FINMA) / Swiss National Bank (SNB) climate scenario
analysis exercise. These exercises enabled the identification of financial risks from climate change and made it possible
for UBS to assess management actions in response to different scenario results and perform counterparty-level analysis.
While these exercises showed mild losses and low exposure to climate risk for the entities within scope, given the limited
impact to the macroeconomic financial environment, the analysis allowed UBS to enhance its climate risk scenario analysis
and stress testing, further developing our capabilities for assessing risks and vulnerabilities from climate change.
In 2024, we also advanced our capabilities surrounding internal climate risk scenario analysis and stress testing for the
UBS Group. We refined and expanded our internal climate risk scenarios with a focus on both transition and physical risk
projections across a 30-year time frame. In addition, we developed additional climate risk methodologies to enhance and
broaden portfolio coverage.
Over the last few years, we have also leveraged industry-wide initiatives, such as the Paris Agreement Capital Transition
Assessment (PACTA) exercise launched by the Swiss Federal Office for the Environment (FOEN) in 2020, 2022 and 2024.
Through this exercise, we assessed the climate alignment of our listed investments (including equities and bonds),
mortgages and direct real estate portfolios. The assessment enabled us to compare our results with the aggregated
performance of all participating banks’ portfolios, showing the progress made over time and the efforts still needed.

Sustainability Report 2024 | Managing sustainability and climate risks 92

Monitoring and risk appetite setting
Our sustainability and climate risk policy framework defines the qualitative and quantitative risk appetite for sustainability
and climate risk and is subject to periodic updates and enhancements.
As part of the sustainability and climate risk monitoring process, we have developed methodologies and metrics to assess
our continued exposure to carbon-related assets and climate-related risk-sensitive sectors. When developing our metrics,
we consider the inputs and guidance provided by standard-setting organizations, as well as new or enhanced regulatory
requirements for climate disclosures. In 2024, we continued working on methodologies covering climate-driven transition
and physical risks.
The table below includes climate-related risk metrics for the UBS Group AG, UBS AG on a standalone basis and UBS
Switzerland AG and UBS Europe SE, both on a standalone basis. The trend analysis of exposure is available starting 2023
as UBS Group exposures were reported on a consolidated basis post Credit Suisse integration.
The proportion of the UBS Group’s total gross lending exposure accounted for by carbon-related assets decreased to
10.9% in 2024 compared to 12.1% in 2023. The UBS Group metrics were reported on a consolidated basis including
Credit Suisse exposures starting 2023.
Following the mergers of UBS AG and Credit Suisse AG in May 2024 and of UBS Switzerland AG and Credit Suisse
(Schweiz) AG in July 2024, the total gross lending exposures of UBS AG standalone and UBS Switzerland AG have
increased due to the inclusion of legacy Credit Suisse exposure. Consequently, the climate-driven transition risk, physical-
risk-sensitive exposure and carbon-related assets have increased on an absolute basis, as expected.

Risk management – Climate-related metrics

For the year ended % change from
31.12.24 31.12.23 31.12.23
Climate-related metrics (USD bn)1, 2, 3, 4
Carbon-related assets: UBS Group AG consolidated1, 2, 3, 4, 5, 6 76.5 93.9 (18.5)
Carbon-related assets proportion of total gross lending exposure, UBS Group AG consolidated (%)1, 2, 3, 4, 5, 6 10.9 12.1
Carbon-related assets: UBS AG (standalone)1, 2, 3, 4, 5, 6 30.3 9.2 228.3
Carbon-related assets: UBS Switzerland AG (standalone)1, 2, 3, 4, 5, 6 46.6 27.4 69.8
Carbon-related assets: UBS Europe SE (standalone)1, 2, 3, 4, 5, 6 0.0 0.0 0.0
Total exposure to climate-sensitive sectors, transition risk, UBS Group AG consolidated1, 2, 3, 4, 6, 7, 8 120.3 149.0 (19.3)
Climate-sensitive sectors, transition risk, proportion of total gross lending exposure, UBS Group AG consolidated (%)1, 2, 3, 4, 6, 7, 8 17.1 19.2
Total exposure to climate-sensitive sectors, transition risk, UBS AG (standalone)1, 2, 3, 4, 6, 7, 8 36.6 12.8 186.4
Total exposure to climate-sensitive sectors, transition risk, UBS Switzerland AG (standalone)1, 2, 3, 4, 6, 7, 8 83.0 49.8 66.6
Total exposure to climate-sensitive sectors, transition risk, UBS Europe SE (standalone)1, 2, 3, 4, 6, 7, 8 0.0 0.0 0.0
Exposure to climate-sensitive sectors, transition risk, Traded products, UBS Group AG consolidated1, 2, 3, 4, 7, 8, 9 2.1
Exposure to climate-sensitive sectors, transition risk, Issuer risk, UBS Group AG consolidated1, 2, 3, 4, 7, 8, 10 6.8
Total exposure to climate-sensitive sectors, physical risk, UBS Group AG consolidated1, 2, 3, 4, 6,7,8 68.9 90.7 (24.0)
Climate-sensitive sectors, physical risk, proportion of total gross lending exposure, UBS Group AG consolidated (%)1, 2, 3, 4, 6, 7, 8 9.8 11.7
Total exposure to climate-sensitive sectors, physical risk, UBS AG (standalone)1, 2, 3, 4, 6, 7, 8 65.7 52.5 25.2
Total exposure to climate-sensitive sectors, physical risk, UBS Switzerland AG (standalone)1, 2, 3, 4, 6, 7, 8 22.6 15.1 50.0
Total exposure to climate-sensitive sectors, physical risk, UBS Europe SE (standalone)1, 2, 3, 4, 6, 7, 8 0.0 0.0 0.0
Exposure to climate-sensitive sectors, physical risk, Traded products, UBS Group AG consolidated1, 2, 3, 4, 7, 8, 9 3.3
Exposure to climate-sensitive sectors, physical risk, Issuer risk, UBS Group AG consolidated1, 2, 3, 4, 7, 8, 10 12.6
1 Methodologies for assessing climate-related risks are emerging and may change over time. As the methodologies, tools and data availability improve, we will further develop our risk identification and measurement
approaches. Lombard lending rating is assigned based on the average riskiness of collateral. 2 Metrics for 2023 are recalculated and restated based on the 2024 methodology for comparison purpose. Percentage
change is calculated based on the full underlying exposure, which may result in small deviations when calculated using reported figures that are rounded to one decimal. 3 Over the last year, the UBS Group continued
its effort to integrate Credit Suisse systems and data. As a result, the metric calculation process benefits from data enhancement even when the methodology remains the same year on year. At the same time,
integration work is ongoing and expected to bring in further data alignment in future, which may require restatement of reported metrics. 4 UBS continues to collaborate to resolve methodological and industry data
challenges, and seeks to integrate both impacts to and dependencies on a changing natural and climatic environment, into how UBS evaluates its risks and opportunities. 5 As defined by the Task Force on Climate-
related Financial Disclosures (the TCFD), in its expanded definition published in 2021, UBS defines carbon-related assets through industry-identifying attributes of the firm’s banking book. UBS further includes the four
non-financial sectors addressed by the TCFD, including, but not limited to, fossil fuel extraction, carbon-based power generation, transportation (air, sea, rail, and auto manufacture), metals production and mining,
manufacturing industries, real estate development, chemicals, petrochemicals, and pharmaceuticals, building and construction materials and activities, forestry, agriculture, fishing, food and beverage production,
including trading companies that may trade any of the above (e.g. oil trading or agricultural commodity trading companies). This metric is agnostic of risk rating, and therefore may include exposures of companies
that may be already transitioning or adapting their business models to climate risks, unlike UBS climate-sensitive sectors methodology, which takes a risk-based approach to defining material exposure to climate
impacts. 6 Gross lending exposure consists of total on balance sheet loans and advances to customers and off-balance sheet guarantees and irrevocable loan commitments (within the scope of expected credit loss)
and is based on consolidated IFRS numbers (inclusive of purchase price allocation adjustments recorded in UBS Group as a result of the acquisition of Credit Suisse in compliance with IFRS 3, Business Combinations).
7 Climate-related risks are scored between 0 and 1, based on sustainability and climate risk transmission channels. Risk ratings represent a range of scores across five rating categories: low, moderately low, moderate,
moderately high, and high. The climate-sensitive exposure metrics are determined based upon the top three of the five rated categories, i.e. moderate to high. 8 As the transition and physical risk rating models and
physical risk heatmap model are embedded further into the risk management framework, we may identify new use cases that could trigger validation of the model for identified use cases and associated enhancements.
As a consequence, restatement of reported metrics may be required. 9 For traded products, the metric is calculated using over-the-counter (OTC) derivatives, exchange-traded derivatives (ETDs) and securities
financing transactions (SFTs), consisting of securities borrowing and lending, and repurchase and reverse repurchase agreements. 10 For issuer risk, the metric is calculated upon HQLA assets, debt securities, bonds,
liquidity buffer securities. After the parent bank merger, the issuer risk in legacy Credit Suisse entities is less than 4% of overall UBS Group and considered non-material and excluded from reported metrics.

The table below presents a view of our risk profile and changes year on year (YoY), within sectors and across climate
risks. It first shows our total exposure to each sector (and whether that has increased or decreased compared to 2023),
followed by an exposure-weighted risk rating. The table also shows the YoY weighted average transition risk trend
followed by sensitive exposure for each of climate transition risk and physical risk. Overall, the UBS Group continues to
have an average rating of moderate for transition risk and moderately low for physical risk.

Sustainability Report 2024 | Managing sustainability and climate risks 93

Risk exposures by sector for UBS Group1,2,3,4,5, 6, 7
Transition risk Physical risk

2024 2024 climate- 2024 climate-

exposure YoY exposure Weighted average YoY weighted sensitive exposure Weighted average YoY weighted sensitive exposure
Sector / Subsector (USD bn) trend8 risk rating 20249 average risk trend8 (USD bn)5 risk rating 20249 average risk trend8 (USD bn)5
Agriculture
Agriculture, fishing and forestry 0.93 ↓ Moderate → 0.42 Moderately low → 0.54
Food and beverage 6.51 ↓ Moderately high → 6.51 Moderate → 3.93
Financial services
Financial services 82.75 ↓ Moderately low → 0.03 Moderately low → 18.85
Fossil fuels
Downstream refining, distribution 0.54 ↓ Moderately high ↓ 0.54 Moderately low ↑ 0.26
Integrated oil and gas 0.32 → Moderate ↓ 0.32 Moderately low → 0.00
Midstream transport, storage 0.10 ↓ Moderate → 0.10 Moderate ↑ 0.10
Trading fossil fuels 6.72 → Moderately high → 6.72 Moderately low → 0.73
Upstream extraction 0.24 ↓ High → 0.24 Moderately low ↓ 0.02
Industrials
Cement or concrete manufacture 0.24 ↓ High → 0.24 Moderately low → 0.03
Chemicals manufacture 3.80 ↓ High → 3.80 Moderately low ↓ 1.27
Electronics manufacture 5.29 ↓ Moderate ↓ 4.48 Moderately low ↓ 1.47
Goods and apparel manufacture 5.13 ↓ Moderately high → 5.11 Moderately low → 2.94
Machinery manufacturing 8.04 ↓ Moderately high → 8.02 Moderately low → 1.21
Pharmaceuticals manufacture 3.64 ↓ Moderately high → 3.64 Moderately low ↓ 1.06
Plastics and petrochemicals manufacture 1.81 ↓ Moderately high → 1.81 Moderately low ↓ 0.69
Metals and mining
Mining conglomerates (incl. trading) 2.83 ↓ Moderately high → 2.83 Moderately low → 0.07
Mining and quarrying 1.10 ↓ Moderate ↑ 0.66 Moderately low → 0.59
Production of metals 0.87 ↓ Moderately high → 0.87 Moderate → 0.39
Private clients
Lombard 151.50 ↓ Moderately low → 0.00 Moderately low → 0.00
Real estate
Development and management 11.64 ↑ Moderately high → 11.04 Moderately low ↓ 0.68
Real estate financing10 83.34 ↓ Moderate → 36.28 Moderately low → 2.48
Private clients with mortgages10 250.59 ↓ Moderately low → 0.00 Low → 0.00
Services and technology
Services and technology 35.93 ↓ Moderately low → 9.31 Moderately low → 18.85
Sovereigns
Sovereigns 2.91 ↓ Moderate ↓ 0.34 Moderately low → 0.04
Transportation
Air transport 2.98 ↓ Moderately high → 2.84 Moderate → 2.50
Automotive 1.20 ↓ Moderate ↓ 0.23 Moderate → 1.08
Rail freight 0.90 ↑ Low → 0.00 Moderate → 0.77
Road freight 1.32 ↑ Moderately high → 1.32 Moderately low ↓ 0.64
Transit 0.49 ↓ Moderately low → 0.00 Moderately low ↓ 0.33
Transportation parts and equipment supply 1.10 ↓ Moderately high → 1.10 Moderate → 0.64
Water transport 8.55 → Moderately high → 8.55 Moderately low → 5.21
Utilities
Power generation 2.76 ↓ High ↑ 2.24 Moderately low ↓ 1.42
Waste treatment 0.68 ↓ Moderately high → 0.68 Moderately low ↑ 0.19
Not classified11 15.07 ↓ Not classified → 0.00 Not classified → 0.00
Grand Total 701.80 ↓ Moderate → 120.25 Moderately low → 68.94
1 Methodologies for assessing climate-related risks are emerging and may change over time. As the methodologies, tools, and data availability improve, we will further develop our risk identification and measurement
approaches. Lombard lending rating is assigned based on the average riskiness of loans. 2 Metrics for 2023 are recalculated and restated based on the 2024 methodology for comparison purpose. 3 Gross lending
exposure consists of total on balance sheet loans and advances to customers and off-balance sheet guarantees and irrevocable loan commitments (within the scope of expected credit loss) and is based on consolidated
IFRS numbers (inclusive of purchase price allocation adjustments recorded in UBS Group as a result of the acquisition of Credit Suisse in compliance with IFRS 3, Business Combinations). 4 UBS continues to
collaborate to resolve methodological and industry data challenges, and seeks to integrate both impacts to and dependencies on a changing natural and climatic environment, into how UBS evaluates its risks and
opportunities. 5 Climate-related risks are scored between 0 and 1, based on sustainability and climate risk transmission channels. Risk ratings represent a range of scores across five rating categories: low, moderately
low, moderate, moderately high, and high. The climate-sensitive exposure metrics are determined based upon the top three of the five rated categories i.e. moderate to high. 6 Over the last year, UBS Group
continued its effort to integrate Credit Suisse systems and data. As a result, metric calculation process benefits from data enhancement even when methodology remains same year-on-year. At the same time,
integration work is ongoing and expected to bring in further data alignment in future which may require restatement of reported metrics. 7 As transition and physical risk rating models and physical risk heatmap
model are embedded further into the risk management framework, we may identify new use cases that could trigger validation of model for identified use cases and associated enhancements. As a consequence,
restatement of reported metrics may be required. 8 A material change in the risk profile (discrete risk score, weighted average per sub-sector) is considered as >5% shift up, or down year on year. Similarly, for
absolute exposure. 9 Displayed ratings represent exposure-weighted averages for a given sector scope. 10 The real estate segments have been aligned with the expected credit loss segments UBS applies under
IFRS. Real estate financing includes rental or income-producing real estate financing to private and corporate clients secured by real estate. Private clients with mortgages include lending to private clients secured by
owner-occupied real estate and personal account overdrafts of those clients. 11 Not classified represents the portion of UBS’s business activities where methodologies and data are not yet able to provide a rating.

Sustainability Report 2024 | Managing sustainability and climate risks 94

Risk management and control
In 2024, we continued to develop solutions to integrate sustainability and climate risks into traditional risk categories,
such as our credit, market, liquidity, non-financial and reputational risk frameworks. We progressively enhanced our four-
stage approach (defined above in the sustainability and climate risk management framework) by leveraging research on
how sustainability and climate risk drivers may be transmitted to our clients (and their assets) and ultimately to the firm
in the form of financial and non-financial risks. Our approach supports the ongoing management of sustainability and
climate risks as they manifest across traditional risk categories and has been built in line with principles outlined by the
Basel Committee on Banking Supervision (the BCBS) and the Task Force on Climate-related Financial Disclosures (the
TCFD, now organized under the ISSB). As Swiss financial regulator FINMA has mandated financial institutions to
implement nature-related financial risks in their due diligence processes by 2028 (FINMA Circular 2026/1 on nature-
related financial risk), UBS is building its capabilities to embed the management of these risks in its due diligence
processes.
Our progress is summarized in the following table.
Managing sustainability and climate risks within traditional risk categories

Traditional risk Sustainability and climate risk Key developments

category transmission channels.

Credit risk Our potential credit losses driven by In 2024, we further embedded climate-related risks into our credit risk management framework. By collaborating
risks from a changing physical climate, across business divisions and between both the first and second lines of defense, we developed innovative
the transition to a low-carbon solutions tailored to the risk profiles and material drivers of risk within our businesses:
economy. Investment Bank: The current credit-granting process has been amended to identify and measure the potential for
Climate-related risk drivers can impact credit losses driven by climate-related risks for corporate lending and leveraged finance. At the transaction level,
household, corporate or sovereign this is achieved by integrating tools such as sector-level climate-related risk heatmaps and company-level due
income and / or wealth. Physical and diligence scorecards into the credit approval analysis and decision-making process. In addition, where mandated,
transition risk drivers increase our concentration triggers have been set up and are monitored and reported on a quarterly basis for all relevant
potential losses as soon as they have a counterparties. Furthermore, at the divisional level, progress has been made to enhance and automate reporting of
negative effect on a borrower’s ability the full Investment Bank lending portfolio, on a quarterly basis.
to repay and / or fully recover the value Global Wealth Management: The current credit-granting process identifies and assess potential credit losses driven
of a loan in the event of default. by climate-related risks for Lombard lending in Switzerland and international locations by integrating climate-
related due diligence questions and leveraging the climate risk heatmaps in the credit assessment at a transaction
level. The approach encompasses Lombard loans to operating companies and those backed by concentrated equity
posted as collateral and we aim to further enhance the scope across regions and products in future. Furthermore,
progress was made to enhance and automate reporting of the combined Global Wealth Management Lombard
lending portfolio, on a quarterly basis.
Personal & Corporate Banking: The current credit-granting process identifies and assesses potential credit losses
driven by climate-related risks by integrating climate-related due diligence questions and leveraging the climate
risk heatmaps in the credit assessment at a transaction level. This approach was rolled out in 2023 to the P&C
Multinationals business and expanded in 2024 to include a wider coverage of the corporate client portfolio as well
as the commodity trade finance business. Furthermore, at the divisional level progress was made to enhance and
automate reporting of the combined Personal and Corporate lending portfolio, on a quarterly basis.

Market risk Potential financial impacts on the firm In 2024, we assessed the risk from planned portfolios, in line with our multi-year sustainability and climate risk
(traded and from price shifts and / or market initiative, and established solutions for integrating climate-related risks into our market risk management
not traded) volatility. A changing physical framework. Progress on integrating climate-related risks into our market risk management was incrementally
environment (including climate driven by enhancing analytical capacity, applying the climate risk rating model in our market-risk monitoring
change) may affect the value of systems and developing stress testing capabilities. We have adapted our in-house long-term scenarios to the
companies reliant on the natural specifics of short-term market risk analytical requirements.
environment and / or how the market Enhancing analytical capacity: Leveraging existing sector-level heatmap methodologies and our in-house scenario
perceives such companies. The development capacity, we sought to perform a loss-driven materiality assessment. By linking the risk ratings with
transition to a low-carbon economy adverse-scenario-driven shocks, we were able to further examine the correlations between risk factors and
through climate policies, low-carbon understand the short-term loss potentials for climate. In 2024, we were able to introduce a climate risk rating
technologies, demand shifts and / or model for the first time.
market perception may also impact the Automation: Market risks systems facilitate for daily monitoring, reporting and control. By integrating these with
value of our positions and / or lead to our centralized climate sector-level heatmap together with climate risk rating model, we are able to understand
a breakdown in correlations between and react to drivers of climate impacts on our portfolios through regular assessments and monitoring.
risk factors (e.g. prompting a change Quantitative risk appetite: For selected legal entities, climate risk concentration triggers were introduced in 2023
in market liquidity and / or challenging based on the sector-level climate risk heatmaps. The solution facilitates daily monitoring of positions that are
assumptions in our model). considered inherently sensitive to climate risks, including an automated breach escalation process along with the
market risk escalation path for concentration limits, providing an opportunity for remediation actions. The triggers
cover credit delta and equity delta aggregated in accordance with the “sensitivity,” as defined through our
heatmapping methodology.

Sustainability Report 2024 | Managing sustainability and climate risks 95

Managing sustainability and climate risks within traditional risk categories

Liquidity risk The potential impact on liquidity In 2024, we further integrated climate risk into our liquidity framework for planned portfolios, in line with the
adequacy is driven by risks from a multi-year sustainability and climate risk initiative. Climate risk stress testing and climate risk reporting were
changing physical climate, the introduced for the first time in 2024, leveraging the heatmap and climate risk rating model. The identification of
transition to a low-carbon economy., material climate-related risks and the integration of those potential risks into the internal liquidity risk
Climate events have been proven to management framework will be an iterative process as we continuously improve the methodology, along with
affect funding conditions, and improving the availability and quality of required data in the industry and enhanced analytics and insights over
therefore liquidity buffers across time.
broader banks. Climate-related risks
are considered an additional driver of
liquidity risk. As such, they may impact
our liquidity adequacy, directly or
indirectly, through our ability to raise
funds, liquidate assets and / or our
customers’ demand for liquidity. This
could result in net cash outflows or
depletion of our liquidity buffer.

Non-financial This is the non-financial impact on UBS Alignment with the BCBS Principles for the effective management and supervision of climate-related (non-
risk (compliance, operational risk and financial) risks has been key in 2024 and is subject to on-going monitoring as of 2025.
financial crime) from inadequate or We have completed work to embed ESG (environmental, social and governance)-related risks, including climate
failed internal processes, people and considerations as a standalone risk indicator to the Group non-financial risk identification model governance used
systems and / or externally due to as the basis for scenario coverage and non-financial risk regulatory / economic capital determination.
physical climate events or stakeholder We will continue to evolve the framework in alignment with our commercial strategy and industry expectations,
legal action. with work ongoing to assess the results of ESG risk integration more broadly into non-financial risk taxonomy risk
appetite statements.

Reputational This is the risk of an unfavorable We continue to assess the design of our reputational risk framework as generally robust in terms of roles and
risk perception, or a lessening of our responsibilities, escalation requirements, and review and approval authorities for sustainability-related risks.
reputation, from the point of view of Relevant sustainability-related standards have been set, including for the appropriate consideration of high
clients, industries, shareholders, inherent reputational risks, by leveraging existing firm-wide risk identification and review and approval processes.
regulators, employees or the general Our 2030 lending sector decarbonization targets for specified sectors at Group level come with agreed
public, which may lead to potential contributions by the individual business divisions (BDs) for the corporate lending sectors.
financial losses and / or loss of market To monitor and control the utilization of the BDs’ contributions toward the 2030 corporate lending sector
share. decarbonization targets, a decarbonization control framework was operationalized in 2024, with defined
Reputational risk is considered across thresholds per sector and business division and at Group level. These thresholds are defined annually and the
all business activities, transactions and utilization against the agreed thresholds is monitored on a quarterly basis.
decisions and includes sustainability- Additionally, a material transaction, as defined in the credit approval process, within in-scope business activities is
related reputational risks, such as subject to the pre-deal assessment process. The first line of defense is responsible for identifying and referring an
greenwashing risk. in-scope transaction to the second line of defense sustainability function for a detailed assessment. Based on the
calculated utilization level, a transaction is subject to the defined approval path.

We manage and escalate material climate-related risks, in accordance with our standard financial and non-financial risk
processes and defining key responsibilities and tools, both at the Group level and across our business divisions. To facilitate
the implementation of consistent risk management practices across the Group, we have conducted climate-risk-related
training for employees across the business divisions and Group functions.

Sustainability Report 2024 | Managing sustainability and climate risks 96

Risk reporting and disclosure
Sustainability and climate risk considerations are an integral part of topics included in our quarterly risk reporting cycle.
Information exchanged during this process includes the number of transactions referred to the sustainability and climate
risk unit with outcomes and underlying reasons, and an associated breakdown by category. The report includes
information on exposure to climate-sensitive sector activities (our climate-related risk heatmaps and climate risk rating
models), leveraging a fully automated process. The heatmaps and climate rating models are also included in quarterly
internal risk reports for key legal entities and business divisions.
For external climate-related risk reporting, we have prepared our annual disclosures across the key areas recommended
by the Task Force on Climate-related Financial Disclosure.
The automated reporting capabilities for climate-related risk were enhanced to include combined (legacy- UBS and legacy-
Credit Suisse) Group-wide climate risk views for internal and external reporting. In addition, the outputs of the CRRM
have been implemented to generate year-end 2024 metrics for further granularity. Internal and external climate-related
risk metrics will continue to evolve in the coming years, as a part of our sustainability and climate risks roadmap, to meet
regulatory expectations and ensure leading practices in this area.
› Refer to the “Sustainability and climate risk policy framework” section of the Supplement to the UBS Group Sustainability Report
2024, available at ubs.com/sustainability-reporting, for more information

Sustainability Report 2024 | Managing sustainability and climate risks 97

Our investment management approach to
sustainability and climate risks
Assessing climate-related financial risks in client portfolios
As a global financial institution, we help our clients navigate the challenges of the transition to a low-carbon economy.
We address this by establishing climate risk monitoring and management systems across our Asset Management and
Global Wealth Management business divisions, offering innovative products and services in investment and financing,
and providing transparent reporting and disclosures.
We strive to integrate climate-related financial risk considerations into our decision-making and processes pertaining to
services, strategies or products offered or employed by third parties, including delegates. In doing so, we demonstrate
our commitment to implementing the recommendations of the Task Force on Climate-related Financial Disclosures (the
TCFD). We perform climate risk assessments on discretionary portfolios managed in Singapore and in-scoped collective
investment schemes managed in Hong Kong, respectively, in line with the Monetary Authority of Singapore (MAS)
Guidelines on Environmental Risk Management for Asset Managers and the Securities and Futures Commission of Hong
Kong (SFC) Climate Risk regulations. We also disclose portfolio risk across climate scenarios in the UK, in line with TCFD
recommendations.
› Refer to the “Specific climate risk disclosure for client investment assets in Singapore and Hong Kong” section and to the “UK
climate and sustainability disclosures” section of the Supplement to the UBS Group Sustainability Report 2024, available at
ubs.com/sustainability-reporting, for more information
We work across our industry and with our clients, ensuring they have access to best practice, robust science-based
approaches, standardized methodologies and quality data for measuring and mitigating climate risks.
In the following sections, we outline the UBS approach to quantifying climate risk in clients’ assets as well as how climate
risk information is applied to Asset Management and Global Wealth Management.

Quantifying climate risk: data and metrics

In order to evaluate climate risks at issuer level, we utilize physical and transition climate risk data from various data
providers.
Physical climate risk arises from the impact of weather events and long-term or widespread environmental changes.
Higher levels of physical risks imply higher probability of an issuer or direct assets being impaired in value. Our physical
risk assessment considers the potential impact of extreme climate events on an issuer’s assets or our direct assets, with
each physical risk score representing a sensitivity-adjusted, weighted average of risk scores linked to all associated assets
across different climate hazards, such as heat / cold waves, water stress, flooding, sea level rises, hurricanes, wildfires and
drought.
Transition risk arises from the process of adjusting to an environmentally sustainable economy, including changes in public
policies, disruptive technological developments and shifts in consumer and investor preferences. One of the ways we
assess transition risk is by using a “carbon earnings at risk” approach, which analyzes the unpriced carbon cost to a
company as a percentage of its earnings before interest, taxes, depreciation and amortization (EBITDA). We see carbon
earnings at risk as one of the more directly quantifiable and comparable metrics across industries globally, which is more
suitable for reflecting the reach and complexity of our investments.
For both physical and transition risks, the projections are typically built upon publicly reported company data, restricting
coverage to corporate issuers, which form the bulk of our public markets portfolios. Consequently, exposures to
sovereigns or structured products, for example, are not covered at this point.
Climate risk data remains an evolving area, and best practice standards or norms are still being developed. This results in
acknowledged limitations in data coverage and quality, such as issuer type and the use of proxy or estimation techniques.
Financial models also typically project up to three years into the future, with significant deterioration in visibility beyond
one year. As such, long-term projections used to generate data, even for 2030, may have limited accuracy.
We work closely with our data providers to continuously enhance the scope and quality of data available to us. Climate
risk data continued to improve over 2024, including, for example, improved financial integration and market-adjusted
carbon price assumptions. As our data providers continue to improve on their data methodology and coverage, in line
with industry best practice, these changes may be reflected in climate risk analytics on the client portfolios we manage.

Sustainability Report 2024 | Managing sustainability and climate risks 98

Application in Asset Management
Asset Management’s ESG (environmental, social and governance) integration approach identifies climate-related risks
and opportunities that can be applied in managing existing investment strategies and constructing new portfolios.
Portfolio construction criteria are applied based on the intended objectives of the given strategy. Portfolios are classified
based on their sustainability characteristics, including sustainability-related key performance indicators and minimum
sustainability safeguards. Exclusion criteria address elevated sustainability risks and the scope of portfolios to which such
exclusions are applied is described in the Asset Management exclusion policy. The investment policies in fund
documentation describe the extent to which a strategy targets particular risk or opportunity outcomes. Asset
Management discloses various climate-related metrics in line with the TCFD’s Supplemental Guidance for Asset
Managers. We publish aggregated figures for total emissions, carbon footprint and weighted average carbon intensity in
the “Environment” section of this report. Asset Management includes disclosure of portfolio-level metrics for sustainable
investment portfolios in its fund factsheets and in client reporting.
In Asset Management, our overall strategy for managing climate risks is to integrate risk data and insights into our
investment management processes. In our public markets investments, this begins with assessing ESG issues based on
our ESG material issues framework. This identifies the most relevant issues by sector, making the connection with key
value drivers that may impact the investment thesis across sectors. Our ESG material issues framework reflects a sector-
based view of exposures to physical and transition climate risks. Our climate risk assessment also uses issuer-level physical
risk data for a range of climate hazards, and transition risk data assessing exposure to changes in carbon pricing. This
assists with identifying issuers with higher levels of risk, which are then subjected to qualitative assessment, including the
location and business segments at risk, and mitigation, including board oversight, company risk assessment, mitigation
and adaptation actions, and engagement with suppliers, customers and local stakeholders. This climate risk assessment
is an additional consideration in the overall assessment of the sustainability performance of the issuer, which informs
investment decisions.
In our Global Real Assets business, we consider key transition risks using our proprietary, in-house ESG dashboard, which
assesses the environmental performance of directly controlled real estate assets against pathways and targets. Assessment
of transition risk using the International Energy Agency framework is applied for some of our direct infrastructure
investments. On the physical risk side, for our direct investments in both real estate and infrastructure, we use a third-
party location risk intelligence tool to analyze asset-level physical risk. We also use third-party data to inform our
assessment of physical risk in our indirect real estate investments. These tools identify each asset’s potential physical risks
under a variety of climate change scenarios and timelines.
Active ownership
The transition of investment portfolios will require real-economy emission reductions. We see our active ownership
strategy as a powerful tool in influencing corporate and other stakeholder behavior to achieve real-economy outcomes.
Asset Management has had a dedicated climate engagement program in place for more than five years, addressing
climate-related risks in companies, with measurable progress tracked. It covers high-emitting companies in our listed
equity and corporate bond universe, taking into account a range of sectors and geographies. This includes companies
from the oil and gas, electricity and other utilities, metals and mining, construction materials, and chemicals sectors. The
program is focused on driving ambitious and credible transition strategies across portfolio holdings. It covers climate
governance, targets, transition plans and relevant business model objectives. Since the start of our engagement program,
we have increased the range of our expectations to include more ambitious emissions reduction target setting, quantified
disclosures on decarbonization actions, capital deployment in line with a net-zero pathway, and reporting of progress
toward stated commitments.
In our Global Real Assets business we typically hold a majority in our direct real assets, and thus it is possible to positively
influence outcomes through active ownership; this includes collaboration with tenants, third-party companies,
employees, communities and other stakeholders (via, for example, green lease clauses, tenant satisfaction surveys and
tenant reach-outs) to drive and achieve emission reductions and other climate risk mitigations. Where we do not have
control, we actively engage with owners and stakeholders to address climate-related risks and monitor progress
accordingly. This engagement includes physical risk exposure and mitigation, transition plans, disclosures and net-zero
alignment.

Application in Global Wealth Management

Our overall investment decision-making process is largely driven from the top. Although corporate-level data sourced
from S&P Global has been chosen for Global Wealth Management portfolios, given its credibility, complexity and
coverage, this bottom-up dataset cannot be directly integrated into Global Wealth Management’s investment processes
without the use of significant aggregation and proxies. Considering the above, at this point in time climate risk analyses
are not used to inform investment decisions at either the asset allocation or the instrument selection levels within Global
Wealth Management, due to investment scope, limitations of data availabilities, modeling uncertainties and
implementation hurdles. We actively monitor industry best practice and data developments to ensure we are prepared to
further integrate climate risks into core investment processes, should these bottlenecks be resolved. In the meantime, we
continue to review implied climate risk in our portfolios and continue to make progress on capacity building and making
climate risk assessment findings available across the investment value chain.

Sustainability Report 2024 | Managing sustainability and climate risks 99

Industry engagement
Most of our discretionary portfolios consist of investment funds from third-party fund managers, including UBS Asset
Management, which runs independent processes. Generally, Global Wealth Management acts as an asset allocator and
manager of these portfolios, but it does not control portfolio construction and management within the underlying fund
investment solutions. Therefore, in addition to developing a climate risk assessment management framework for
portfolios based on underlying investment holdings, we aim to understand the climate risk management practices
established by the managers of the underlying funds.
To that end, we regularly ask investment fund partners of approved investment funds for information about their
approach to climate risk issues, including the extent to which climate risk management processes have been developed
and implemented within their businesses, with relevance to frameworks such as TCFD and the MAS Guidelines on
Environmental Risk Management for Asset Managers, where required by relevant regulators. We are committed to
continuing regular communication with our fund partners about the development of climate risk management processes,
as relevant to their strategies.

Sustainability Report 2024 | Managing sustainability and climate risks 100

Appendix
Appendix 1 – Governance
Sustainability governance at Credit Suisse
Sustainability governance at Credit Suisse
Active sustainability governance bodies (as of 31 December 2024)
Governance body Lead Meeting frequency Purpose and responsibilities

Sustainability Co-chaired by Chief Ad hoc (approx. Sustainability Classification Committee (SCC) transformed into a forum
Classification Forum (SCF) Sustainability Office monthly) (SCF) in July 2024 to align with UBS Group Governance Standards
(formerly Sustainability (CSO), GWM CIO IM, Governing body of the Credit Suisse Sustainable Investment
Classification Committee) AM SI Framework, oversees the investment product sustainability
classification
Amended governance with escalation path into UBS since January
2024

Retired sustainability governance bodies in 2024

Governance body Lead Meeting frequency Purpose and responsibilities

ESG Disclosure and Co-chaired by CFO Ad-hoc as required Retired in September 2024, and responsibilities integrated into UBS
Reporting Committee and CSO 1H24 meetings: 2 governance, controls and procedure
(retired in September Provided oversight to ensure that appropriate levels of control and
2024) governance were in place for Credit Suisse’s ESG disclosures
Amended governance with escalation path into UBS since March
2024

Green Finance Committee Chaired by CSO Ad-hoc as required Retired in June 2024, as the underlying framework was
(retired in June 2024) 1H24 meetings: 1 decommissioned with Credit Suisse Green Liabilities having been
absorbed by the UBS Green Funding Framework
Acted as the governing body of the Green Finance Framework and
oversaw the issuance of green finance products and green asset pool,
and the reporting related to green issuances
Amended governance with escalation path into UBS since December
2023

Sustainability Report 2024 | Appendix 1 | Governance 101

Key policies and principles
Sustainable finance
Name of policy Description

Group Sustainable Defines the minimum standards to address transparency around sustainability-related investment product and / or service classification and corporate
Investing Policy and financial disclosure. Applicable to all UBS employees globally involved in the processes of manufacturing, distributing, labeling, marketing or
promoting investment products or services that are positioned as sustainable investing, which are sold or provided to clients. The policy provides a
basis for ensuring that environmental, social and governance (ESG) or sustainability-related statements, declarations, actions or communications made
by UBS can be substantiated and consistently communicated so as to protect UBS and / or its clients.
The owner of this policy is Group Sustainability and Impact (GSI).

Sustainable Finance These guidelines set Group-wide minimum requirements when labelling, marketing and distributing sustainable financing, green equity, carbon and
Guideline environmental market instruments.
The owner of these guidelines is Group Risk Control (GRC).
Carbon and
Environmental Markets
Guideline

Regulatory compliance
Data privacy and data ethics
Name of policy Description

Group Data Protection Describes the minimum global standards for processing personal data in accordance with data privacy laws and regulations. This policy applies to
Policy all staff involved in personal data (i.e. all information relating to an identified or identifiable natural person) processing activities globally. This
includes information relating to UBS clients, prospects, UBS employees and candidates.
The owner of this policy is Group Compliance, Regulatory & Governance (GCRG).

Group Data Ethics Policy Sets out UBS’s data ethics principles and requirements, in line with the Code of Conduct and Ethics of UBS. This policy, which applies to all UBS
staff globally involved in data processing through artificial intelligence and / or data analytics involving client-identifying data and / or personal
data, provides the framework to identify, manage and control data usage by UBS in an ethical and responsible manner.
The owner of this policy is GCRG.

Client and product suitability

Name of policy Description

Group Suitability Sets out the principles that UBS applies in assessing the suitability of financial products and services and transactions sold to or entered into with
Principles clients in order to achieve regulatory compliance and consistency of approach across business divisions in making such suitability assessments. This
Group-wide policy also sets out the principles that UBS applies in assessing the suitability of financial products and services to always be regulatory
compliant and act in the best interests of our clients. The principles underpin the divisional suitability- and product-related policies.
The owner of these principles is GCRG.

Access to products and services

Name of policy Description

Guideline on Client Ensures that, in order to deliver excellent client experience for all types of clients, staff understand how to identify and respond to client vulnerability.
Vulnerability This is because a client’s abilities or decision-making may be impaired compared to their usual situation or compared to other clients. This guideline,
which applies to all roles in Global Wealth Management (GWM) and Personal & Corporate Banking (P&C), helps to ensure that clients with a
vulnerability are treated appropriately and fairly.
The owner of this guideline is GCRG.

Web Accessibility Ensures that electronic documents and information available on the web can be accessed and used by people with disabilities and that all web
Guideline content managed by Communications and Branding, Marketing Platforms (C&B, MP), such as websites and web applications, are free of barriers that
limit access for people who are blind, have low vision, are deaf or hard of hearing, have mobility disabilities or experience other types of disabilities.
The owner of this guideline is Group Human Resources and Corporate Services (GHRCS).

Digital Accessibility Offers standards for all UBS digital platforms and provides guidance on the scope, requirements and the accessibility evaluation operating model to
Guidelines follow. These include UBS Digital Accessibility Technical Standard; UBS Digital Accessibility Handbook; WMPC Digital Accessibility Guide.

Global Inclusive Describes the design principles and standards that should be applied to all premises Group-wide to deliver physical accessibility. This relates to UBS’s
Accessibility Standard commitment to removing physical barriers across locations and improving accessibility for everyone, frequently going beyond compliance and
exceeding the local disability laws and standards that are already in place.
The owner of this standard is GHRCS.

Sustainability Report 2024 | Appendix 1 | Governance 102

Responsible marketing practices
Name of policy Description

Group Marketing Prescribes, based on the UBS Brand Policy, the overall approach to producing and using marketing communications, clarifies roles and responsibilities,
Communications outlines processes and controls that must be adhered to and offers supportive tools. These guidelines are intended to ensure effective and efficient
Governance cooperation among the various stakeholders.
The owner of this document is GHRCS.

GWM and P&C Policy on Helps to ensure that any reputational, legal, regulatory or liability risks arising from the use of marketing material are appropriately and consistently
Marketing Materials addressed by GWM and P&C, and all employees producing or using marketing material for distribution to the UBS Group entity’s clients, or prospects
or any third party. That means, among other things, enabling UBS to comply with its obligations to provide existing and potential clients with
information that is fair, balanced, clear and not misleading and to have adequate controls in place that ensure consistent adherence to the respective
standards.
The owner of this policy is GCRG.

AM Marketing Establishes common principles on the identification of marketing communications and ensures that marketing communications created and used by all
Communications Policy AM employees globally are clear, fair, balanced and not misleading.
The owner of this policy is GCRG.

IB Marketing Materials Provides information for all producers and approvers of IB marketing materials on their content, including minimum standards, country-specific
Global Policy content and issues that need to be escalated to IB C&ORC and / or Group General Counsel (GGC).
The owner of this policy is GCRG.

Market Conduct Policy Sets out our minimum expected standards for market conduct, providing guidance on prohibited conduct and conduct requiring escalation. Addresses
greenwashing or ESG risks by setting minimum standards for all communications by the IB and Non-core and Legacy (NCL). When making an ESG or
sustainability claim about an investment product, fund or company’s financial instruments or the company and its products and services, there should
be relevant, sourced and credible evidence to back the claim up. Additionally, when referencing a third-party product (e.g. ESG index, externally
issued green bond), it must be ensured that the ESG or sustainable characteristics of such a product can be clearly set out, including how an investor
can obtain more information about the index or asset.
The owner of this policy is GCRG.

Climate and nature

Name of policy Description

Group Sustainability and Provides an overview of the sustainability and impact strategy and governance at UBS, including the description of our sustainability and impact
Impact Strategy & strategy and related key activities, our aspirations and goals and progress toward them, relevant governance bodies and key roles in the
Governance Document organization, along with key topics and working groups related to sustainability and impact. A key topic within this document is our approach to
climate. It outlines our ambition to support clients through the world’s transition to a low-carbon economy and embed considerations of climate
change risks and opportunities across the bank for the benefit of our stakeholders. The framework is subject to regular audits by Group Internal
Audit.
The owner of this policy is GSI.

Sustainability and Sustainability and climate risk (SCR) is defined as the risk that UBS negatively impacts, or is impacted by, climate change, natural capital, human
Climate Risk Policy rights and other environmental and social matters. Group Risk Control (GRC) is responsible for our firm-wide SCR policy framework and the
Framework management of exposure to sustainability and climate (financial) risks on an ongoing basis as a second line of defense, while GCRG monitors the
adequacy of our control environment for non-financial risks, applying independent control and oversight.
The owner of this policy framework is GRC.

Responsible Supply Is based on identifying, assessing and monitoring vendor practices in the areas of human and labor rights, the environment, nature, health and safety
Chain Management and anti-corruption. Central to our RSCM framework is the RSCM Policy, to which our direct vendors are bound by contract and which sets out UBS’s
(RSCM) Framework expectations toward vendors and their subcontractors regarding legal compliance, environmental protection, avoidance of child and forced labor,
non-discrimination, diversity, equity and inclusion, remuneration, hours of work, freedom of association, humane treatment, health and safety, anti-
corruption measures, and whistleblowing protection for employees. In 2024, this framework was rolled out to also cover Credit Suisse.
The owner of this framework is GHRCS.

Client experience
Name of policy Description

Clients Complaints Outlines the principles and minimum standards for handling client complaints in GWM and P&C by all staff in these divisions who either receive or
Handling (GWM and P&C) are involved in the handling of complaints received from clients or prospects. Client complaints serve as an early warning indicator for problems
with a service or product offered and, when professionally applied, can improve client retention and make the relationship stronger.
The owner of this policy is Global Wealth Management.

AM Complaints Sets out principles for the handling of client and / or investor complaints that Asset Management (AM) expects its employees to adhere to. Client
Management and / or investor complaints are an important source of information on AM’s products and services. The policy, which applies to all AM employees,
articulates the requirements to identify, record, investigate and respond promptly to complaints and outlines standard principles for recording,
processing and reporting AM complaints.
The owner of this policy is GCRG.

IB & Non-core and Legacy Sets out principles for managing Investment Bank (IB) client complaints so they can be captured consistently and are therefore reportable to
(NCL) Policy on Client management and to regulators, if applicable. It applies to all UBS IB and IB-aligned employees, including NCL employees, consultants and
Complaints temporary employees interacting with clients and prospective clients on UBS products or services.
The owner of this policy is GCRG.

Sustainability Report 2024 | Appendix 1 | Governance 103

Cyber und Information Security
Name of policy Description

Cyber and Information Defines the Cyber & Information Security (CIS) mandate across the firm. CIS is a firm-wide business risk management responsibility. Failure to secure
Security Policy UBS’s information and services against the risk posed by CIS threats could severely impact clients, constitute a breach of laws and regulations and
negatively affect the reputation, brand and financial stability of the firm. The CIS principles established in this policy, which applies to all UBS
persons accessing or owning UBS information and IT assets, set the firm-wide minimum baseline requirements necessary for meeting key
operational, legal and regulatory requirements. Additional requirements may be established by business divisions and Group functions as necessary
for achieving the goal of CIS.
The owner of this policy is Group Operations and Technology Office (GOTO).

GenAI Cyber and Documents the firm-wide Generative AI (GenAI) Security Framework, including control requirements to mitigate cyber and information security (CIS)
Information Security risks associated with the adoption of GenAI solutions. It provides detailed implementation guidance and covers GenAI applications operated in-
(CIS) Guideline house or within third-party solutions.
The owner of this policy is GOTO.

Employees
Name of policy Description, scope, accountability, pertinent third-party standards or initiatives

Employee Assistance Provides confidential individual support to permanent UBS employees (and where applicable to household and / or family members) with any
Program (EAP) personal or work-related issues that may affect their well-being.
The owner of this policy is GHRCS.

Employee Handbooks Provides information on the policies, practices, procedures and benefits applicable to a specific location or country. Where applicable, employee
handbooks (along with a contract / offer letter and, if applicable, personnel regulations) are the principal sources of information on the terms and
conditions of employment and applicable HR programs, policies and procedures. Subject to local legal requirements, failure to comply with any of
the requirements of the relevant employee handbook may result in disciplinary action, up to and including dismissal.
The owner of the handbooks is GHRCS.

Employee Incidents Sets out the principles for assessing breaches of UBS policies in a consistent manner. All UBS persons as defined by the policy are expected to
Policy comply. All UBS policies are in scope, unless defined by the respective Chief Operating Officer as out of scope and approved by the GCRG
Employee Incidents team. The scope of UBS policies will be applied to the Credit Suisse policies that have not yet been integrated.
The owner of this policy is GCRG.

Employment of Staff Applicable to all UBS employees, this policy establishes minimum hiring and employment standards and provides fair, consistent and transparent
within UBS Policy treatment of employees, while taking account of local legal and market practice requirements and shareholder interests. Where applicable, the
policy is supplemented by Employee Handbooks providing local information and clarification. Breaches may be dealt with in line with
the Employee Incidents Policy and could result in disciplinary action, including dismissal, in serious cases.
The owner of this policy is GHRCS.

Global Block Leave Applicable to all UBS employees and UBS external staff as required by their role or legislative requirements, this policy ensures that all employees
Policy are aware of their block leave requirements to mitigate fraud risk and to meet local legislative requirements.
The owner of this policy is GHRCS.

Global Staff Vetting Defines the global minimum standards for background checks to be undertaken during onboarding for all members of staff and provides
Policy requirements for periodic re-vetting of existing staff. These global mandatory standards guarantee a globally consistent vetting approach for UBS
staff. Non-compliance may have a negative impact on legal, regulatory, financial or reputational risks. The policy outlines who (UBS third-party
vetting vendors, suppliers) is accountable for conducting the checks. HR and other functions are engaged, as needed, to ensure any adverse
findings or policy changes are within UBS’s risk appetite.

Group Investigations Sets out the framework for the conduct and governance of all internal investigations of actual, alleged or suspected breaches of law, regulation or
Policy policy involving UBS and / or its employees.
The owner of this policy is GCRG.

Group Physical Security Defines the physical security governance structures, principles and high-level measures that ensure UBS people, information, infrastructure,
Policy valuable assets and business operations are effectively protected from physical security threats that may otherwise cause loss, damage or harm.
Failure to effectively mitigate the risks posed by security threats could impact clients and staff, constitute a breach of laws or regulations and
negatively affect the firm’s reputation, brand or financials. Breaches of policy may be dealt with in line with the Employee Incidents Policy and
could result in disciplinary action, including dismissal.
The owner of this policy is GCRG.

Group Policy on Conflict Sets out the principles, minimum requirements and roles and responsibilities that all UBS staff must adhere to in identifying, preventing, escalating
of Interest and managing conflicts of interest (CoI). This policy covers all UBS persons internal and external staff and any other individuals who provide
services for UBS.
The owner of this framework is GCRG.

Health and Safety Details UBS’s commitment to a working environment that protects the health, safety and well-being of all employees, contractors, clients and
Statement visitors on UBS premises.
The owner of this statement is GHRCS.

Mandatory Learning Covers topics important for all staff and for the firm, and all staff must complete the modules assigned to them by the due date.
Policy Non-completion or failure to complete in a timely manner is systematically tracked and subject to an escalation and disciplinary process.
The owner of this policy is GHRCS.

Total Reward Principles Underpins UBS’s approach to compensation and defines UBS’s compensation framework. These principles apply to all employees globally (with
variations in certain locations due to local legal requirements, regulations and practices) and are periodically reviewed and approved by the
Compensation Committee. The principles are fully aligned with our strategy and our three keys to success. In the short to medium term, they also
enable UBS to drive the economic and cultural integration of Credit Suisse and the long-term value creation of the combined firm.
The owner of these principles is GHRCS.

Whistleblowing Establishes dedicated whistleblowing channels for UBS employees to raise concerns in a safe, confidential and, if preferred, anonymous way
Protection for without fear of retaliation. It applies to the UBS employees, all business divisions and Group functions, all regions and all UBS entities, including
Employees their branches and representative offices.
The owner of this policy is GCRG.

Sustainability Report 2024 | Appendix 1 | Governance 104

Appendix 2 – Social
Regulatory compliance
How we ensure suitability
Clients expect to be provided with products and services that are suitable for them. This is particularly the case in the
business divisions, where we serve personal clients as opposed to institutions. In nearly all the countries where we do
business, this expectation has been turned into a legal or regulatory requirement for banks acting as financial advisors.
Most jurisdictions also require systematic assessment and documentation of the suitability of products (including third-
party products) and services, including compliance with applicable eligibility criteria, investment preferences (e.g.
sustainability criteria) and sales restrictions. These standards are reflected in local policies and procedures and in the
respective local control framework. The European Union’s Markets in Financial Instruments Directive and the Swiss
Financial Services Act are examples of how we reflect and implement specific standards required by regulators as part of
a local control framework. Other locations apply similar standards as required by the relevant local regulators.
To meet both client expectations and regulatory requirements, we have established comprehensive rules for assessing the
suitability of products and services and these are further supported by regular training across the firm. These rules are
designed to align the assets in a client’s portfolio with their defined risk profile, and the client is advised in line with their
needs (i.e. client suitability). In addition, the rules require product documentation to contain appropriate and easily
understandable information on the product’s features, target audience and the scenarios in which the product can be
used, along with a balanced representation of the associated opportunities and risks (i.e. product suitability). We also
recognize the importance of fair and transparent marketing of our products and services and have internal policies
supporting their responsible sale and marketing.
Suitability framework
In our Global Wealth Management and Personal & Corporate Banking business divisions, a comprehensive suitability
policy framework is in place and is reviewed on a yearly basis. This sets out the structured advisory process governing the
way we advise and implement agreed solutions and also documents the steps taken during this process. In addition to
other purposes, it includes requirements for monitoring and controlling activities that aim to capture tail risks.
Our Investment Bank and Asset Management business divisions take their guidance from UBS’s suitability principles and
have implemented processes and policies to ensure appropriate oversight of suitability requirements where applicable.
In our framework, we distinguish between client and product suitability. Client suitability refers to the alignment between
the investor profile of the client and the products and services that are recommended or made available to the client (or
already held in the client’s portfolio), including risk information and disclosure. Product suitability refers to a consistent
set of standards applied by a product management unit to define which specific investors a product may be suitable for.
Client suitability
Global Wealth Management and Personal & Corporate Banking have established a structured advisory process with four
distinct steps: understand, propose, agree and implement, and review. This process is supported by a number of tools
and forms that are available to client advisors. In the first step (understand), these forms and tools support the initial
identification of a client’s investor profile, including but not limited to investment objectives, risk tolerance and risk ability.
In the further steps, they help client advisors match a client’s investment strategy with appropriate investment proposals
(propose) and agree with the client on the implementation, such as providing mandatory documentation and signing the
necessary agreements (agree and implement). Furthermore, the established tools and platforms also support the fourth
step (review). The Investment Bank and Asset Management have established cross-functional governance committees to
ensure oversight for client suitability where specific criteria or triggers are met.
Product suitability
Advisory platforms and tools divide products according to their risk characteristics and, in doing so, help clients and client
advisors to properly assess the impact of investment products and services on a client’s portfolio. Additional processes
are in place to make product documentation available to both client advisors and clients. Finally, specific legal
documentation is required for certain products with specific risks (e.g. hedge funds).
Divisional approach to suitability
Primary ownership of suitability risk and the responsibility for addressing it rests with the business. The suitability policies
applicable to Global Wealth Management, Personal & Corporate Banking, the Investment Bank and Asset Management
make this clear. Accordingly, we have pursued a divisional approach to ensure compliance with rapidly changing
regulatory regimes, while also addressing particular suitability obligations and remediation of identified gaps relating to
the business divisions.
Monitoring and controls
Monitoring and controls for suitability follow a three-tiered approach. The first-level controls are conducted by the
business risk management team under its origination control framework, a set of controls designed to prevent and detect
operational risks that arise within the front unit and to ensure that residual risk corresponds to risk appetite.

Sustainability Report 2024 | Appendix 2 | Social 105

The second-level controls are performed by Compliance & Operational Risk Control as global minimum control standards,
which are part of the overall operational risk framework. These controls focus on both a check-the-checker approach
and thematic deep-dive reviews. The third-level controls are exercised by Group Internal Audit as part of its annual audit
plan.
After-sales communications
The UBS client experience also includes after-sales communication. Again, this communication is supported by a number
of tools and platforms, including ready-to-use reporting and presentation material.
Responsible marketing practices
At UBS, responsible marketing means our marketing materials, and materials from third parties that we are merely
distributing, must be fair, clear, balanced and not misleading. Our policies and guidelines, across all business divisions,
ensure that marketing materials provided to our clients and prospects adhere to both regulatory requirements and UBS
standards on marketing communications. Our aim is to have a globally consistent divisional framework for preparing,
reviewing and approving, and retaining marketing materials to address and mitigate reputational, legal, regulatory and
liability risks.

Accessibility of our products and services

At UBS, we are committed to ensuring that all clients, including those with vulnerabilities, have fair and appropriate
access to our products and services. To deliver an excellent client experience for all types of clients, staff are trained to
know how to identify and respond to client vulnerability. Client-facing employees generally have more client interaction
and therefore are more likely to identify potential vulnerabilities.1 Our approach to accessibility encompasses both digital
and physical aspects, and we continually work to identify and remove barriers, ensuring that our services and products
meet the needs of our clients, including those with disabilities.
› Refer to ubs.com/global/en/legal/accessibility.html for more information on Accessibility and feedback options
› Refer to ubs.com/global/en/our-firm/our-culture/diversity-and-inclusion/disability-inclusion.html for more information on our
inclusion initiatives

Digital accessibility
The UBS internal digital accessibility guidelines are based on the Web Content Accessibility Guidelines (WCAG), which
help us ensure that all people, including individuals with disabilities, can fully and independently use our digital platforms
and website. The WCAG are developed by a working group of stakeholders, including experts, regulators, academics,
and businesspeople worldwide, who capture vulnerable clients’ interests and needs by proxy.
› Refer to WCAG for more information, available at w3.org/TR/WCAG22

In 2024, we led an engineering Hackathon featuring digital accessibility as a key category where over 300 engineers
globally developed cutting edge solutions that promote accessibility and inclusivity. The winning project is underway to
be implemented and will support visually impaired users by turning images and graphs into spoken text.
Physical accessibility
We are committed to removing physical barriers across our locations, frequently exceeding local disability laws and
standards. Our Global Inclusive Accessibility Standard outlines design principles to ensure that our premises are accessible
to everyone. This commitment is part of our broader strategy to enhance accessibility and inclusivity in all aspects of our
operations.
Financial literacy
We view this topic as mainly relevant in Switzerland, the only country where we offer comprehensive financial products
and services to retail and small and medium-sized enterprises (SME) clients. Many of our services that contribute to
enhancing financial literacy are therefore limited to our Swiss clients. Examples for young people and students include:
financial check-ups, saving tips and a budget calculator.
Moreover, with the Women’s Wealth Academy1 as well as the Female Impact Program for female entrepreneurs, UBS
helps women acquire or consolidate extensive financial know-how. Furthermore, the UBS Entrepreneur Hub and the
download center for SMEs include a broad range of publications, documents and resources, such as succession planning
checklists and basic knowledge of business administration topics, such as accounting, payrolling and payment solutions.2

Responsible use of AI
The pace of innovation and emerging technology adoption continues to accelerate in our industry. Artificial intelligence
(AI) in particular is creating an opportunity to significantly enhance employee efficiency and reshape how we do business.
Financial institutions are finding ways to accelerate the adoption of AI in a risk and regulatory compliant manner, and
with ethical and sustainability considerations in place.

1 https://www.ubs.com/ch/en/wealth-management/womens-wealth/mission.html
2 https://www.ubs.com/ch/en/services/digital-banking/marketplace.html

Sustainability Report 2024 | Appendix 2 | Social 106

Managing potential risks to clients
The potential risks arising from the use of AI have been categorized under various non-financial risk taxonomies, including
model risk, privacy, data ethics and records management, cyber and information security, data management, third-party
management, and inter-entity outsourcing. These risks are addressed in the risk frameworks of the respective control
functions, as well as Group Legal, and are reviewed regularly to ensure completeness, accuracy and that the risks are up
to date.
In 2024 we have enhanced our AI governance framework and published the Group AI Strategy. The newly established
AI Operating Committee and Group AI Forum support the use of AI in a responsible and sustainable manner and also,
we have guidelines in place with details on how to identify uses of AI that are prohibited or considered high risk and
thus, subject to more stringent controls.
Alongside this, we have launched a training on the responsible use of generative AI for all employees to ensure employees
understand this technology, including how to identify and mitigate risks to UBS and / or its clients associated with AI use.
› Refer to “Emerging Technologies” in the “Our environment” section of UBS Group Annual Report 2024, available under “Annual
reporting” at ubs.com/investors, for more information

Data privacy
Handling data
Our data protection policy framework covers the standards we commit to when processing personal data. This includes
a requirement that data is processed only for specific and explicit purposes and is adequate, relevant and not excessive
(data minimization). Other key principles include ensuring that data subjects are informed of how their personal data is
processed and that it is not processed for longer than necessary for the given processing purposes. UBS has implemented
processes to respond to data subjects exercising their rights, while adhering to applicable legal requirements.
We communicate our client personal data processing activities and seek clients’ consent as required by applicable local
privacy law. In these communications, we are clear what this consent means and which use-cases do not require consent,
for example due to certain legal obligations. We provide reasonable options for clients to be able to revoke this consent
as required.
Key privacy-related information is contained in client privacy notices published on ubs.com and translated into the official
languages of the specific country it applies to.
› Refer to the document “Cybersecurity, information security and data privacy at UBS” for more information, available at
ubs.com/sustainability-reporting, for more information

Sustainability Report 2024 | Appendix 2 | Social 107

Appendix 3 – Other supplemental information
Information on non-financial disclosures
Risk evaluation
Pursuant to the requirements of the Swiss Code of Obligations Art. 964b, this section includes an evaluation of the risks
that have a high probability of potential negative impacts upon the “aspects” covered by said laws.
Developments in sustainability, climate, environmental and social standards and regulations may affect our business and
impact our ability to fully realize our goals. We are subject to separate, and sometimes conflicting, ESG (environmental,
social and governance) regulations and regulator expectations in the various jurisdictions in which UBS AG operates. For
example, in certain jurisdictions, we are required to set diversity targets or other ESG-related goals that are considered
illegal or contrary to regulatory expectations in other jurisdictions. In addition, with respect to decarbonization mandates,
there is substantial uncertainty as to the scope of actions that may be required of us, governments and others to achieve
the goals we have set, and many of our goals and objectives are only achievable with a combination of government and
private action. National and international standards and expectations, industry and scientific practices, regulatory
taxonomies, and disclosure obligations addressing these matters are relatively immature and are rapidly evolving. In
addition, there are significant limitations in the data available to measure our climate and other goals. Although we have
defined and disclosed our goals based on the standards existing at the time of disclosure, there can be no assurance
(i) that the various ESG regulatory and disclosure regimes under which we operate will not come into conflict with one
another; (ii) that the current standards will not be interpreted differently than our understanding or change in a manner
that substantially increases the cost or effort for us to achieve such goals; or (iii) that additional data or methods, whether
voluntary or required by regulation, may substantially change our calculation of our goals and ambitions. It is possible
that such goals may prove to be considerably more difficult or even impossible to achieve. The evolving standards may
also require us to substantially change the stated goals and ambitions. If we are not able to achieve the goals we have
set, or can only do so at significant expense to our business, we may fail to meet regulatory expectations, incur damage
to our reputation or be exposed to an increased risk of litigation or other adverse action.
While ESG regulatory regimes and international standards are being developed, including to require consideration of ESG
risks in investment decisions, some jurisdictions, notably in the US, have developed rules restricting the consideration of
ESG factors in investment and business decisions. Under these anti-ESG rules, companies that are perceived as boycotting
or discriminating against certain industries may be restricted from doing business with certain governmental entities. Our
businesses may be adversely affected if we are considered as discriminating against companies based on ESG
considerations, or if further anti-ESG rules are developed or broadened.
A major focus of US and other countries’ governmental policies relating to financial institutions in recent years has been
on fighting money laundering and terrorist financing. We are required to maintain effective policies, procedures and
controls to detect, prevent and report money laundering and terrorist financing, and to verify the identity of our clients
under the laws of many of the countries in which we operate. We are also subject to laws and regulations related to
corrupt and illegal payments to government officials by others, such as the US Foreign Corrupt Practices Act and the UK
Bribery Act. We have implemented policies, procedures and internal controls that are designed to comply with such laws
and regulations. Notwithstanding this, regulators have found deficiencies in the design and operation of anti-money-
laundering programs in our US operations. We have undertaken a significant program to address these regulatory findings
with the objective of fully meeting regulatory expectations for our programs. Failure to maintain and implement adequate
programs to combat money laundering, terrorist financing or corruption, or any failure of our programs in these areas,
could have serious consequences both from legal enforcement action and from damage to our reputation. Frequent
changes in sanctions imposed and increasingly complex sanctions imposed on countries, entities and individuals, as
exemplified by the breadth and scope of the sanctions imposed in relation to the war in Ukraine, increase our cost of
monitoring and complying with sanctions requirements and increase the risk that we will not identify in a timely manner
client activity that is subject to a sanction.
The financial services industry is characterized by intense competition, continuous innovation, restrictive, detailed and
sometimes fragmented regulation and ongoing consolidation. We face competition at the level of local markets and
individual business lines and from global financial institutions that are comparable to us in their size and breadth, as well
as competition from new technology-based market entrants, which may not be subject to the same level of regulation.
Barriers to entry in individual markets and pricing levels are being eroded by new technology. We expect these trends to
continue and competition to increase. Our competitive strength and market position could be eroded if we are unable
to identify market trends and developments, do not respond to such trends and developments by devising and
implementing adequate business strategies, do not adequately develop or update our technology, including our digital
channels and tools, or are unable to attract or retain the qualified people needed.
The amount and structure of our employee compensation is affected not only by our business results but also by
competitive factors and regulatory considerations.

Sustainability Report 2024 | Appendix 3 | Other supplemental information 108

In response to the demands of various stakeholders, including regulatory authorities and shareholders, and in order to
better align the interests of our staff with other stakeholders, we have increased average deferral periods for stock
awards, expanded forfeiture provisions and, to a more limited extent, introduced clawback provisions for certain awards
linked to business performance. We have also introduced individual caps on the proportion of fixed to variable pay for
the members of the Group Executive Board (the GEB), as well as certain other employees. UBS will also be required to
maintain and enforce provisions requiring UBS to recover from GEB members and certain other executives a portion of
performance-based incentive compensation in the event that the UBS Group or another entity with securities listed on a
US national securities exchange, is required to restate its financial statements as a result of a material error.
› Refer to the “Risk factors” and “Risk management and control” sections of our UBS Group Annual Report 2024, available under
“Annual reporting” at ubs.com/investors, for more information

Resilience of our UBS’s strategy regarding its capacity to address material impacts and risks
Identification of material risks
UBS has a structured risk identification process in place designed to support the firm’s ongoing risk management and
control efforts and aligned with global regulatory expectations. The process of identifying the material risks to which our
businesses at UBS are exposed is a key component of risk management. A comprehensive risk identification and
assessment process contributes to an enhanced understanding of the top vulnerabilities impacting the organization under
various conditions, enabling management to better capture, measure, monitor and control risk exposure, as appropriate.
As part of the risk identification process, risks identified as material are then considered within the risk coverage
assessment and the development of stress scenarios, ultimately being used in the assessment of adequacy of post-stress
capital levels and capital actions as part of the Group internal capital adequacy assessment. Climate and environment
considerations are assessed for their viability as root causes of potential risks throughout the process.
Resilience of our strategy and business model in relation to climate change
UBS employs different tools, assessments and processes to identify and manage climate-related risks and opportunities
and understand the impact of climate change on our business. Relevant outcomes are considered when annually
reviewing and setting our sustainability and impact strategy and objectives, which are subsequently integrated into our
standard financial planning process with a three-year strategic plan.
By continuously assessing climate-related risks and opportunities through various assessments and scenario-based
approaches and by embedding this information into our business strategy and financial planning, we continuously
enhance our resilience against climate change.
› Refer to the “Managing sustainability and climate risks” section in this report for more information

Integrating climate-related impacts in our financial planning

UBS operates a multi-year financial planning process. This process reflects our business position, corporate strategy and
prospective economic environment. Sustainability is a core component of that strategy and planning process.
At divisional level, the underlying drivers of our sustainability investments are also considered. These include our own
corporate commitments, regulatory and other external requirements, and client-servicing opportunities. The changing
global outlook regarding sustainability, and climate change in particular, is reflected in the process, with the risks
associated with climate change being reflected in our capital requirement planning calculations.
Formal guidance on capital-framework calculations is subject to ongoing market and regulatory discussion, and we will
continue to reflect this in our planning processes.
Business continuity management
UBS has a business continuity, resilience and crisis management (BCR) framework in place to minimize the financial,
regulatory, reputational and market impact of unplanned disruptive events, including those that are climate-related. We
conduct regular BCM reviews, which include assessments of potential loss of premises, compromised buildings and data
centers, loss of staff, loss of technology, loss of third parties and the need for risk mitigation. Department recovery plans
are in place for loss of premises and loss of staff incidents due to disruptive events, such as severe weather situations.
The plans are not specifically climate-related, but rather agnostic to the cause of disruption. Crisis management
committees are trained accordingly to react on any materializing threat. A country risk profiling process is in place to
identify any location-specific material risks and plans exist for mitigating acute weather conditions. In the case of material
climate-related exposures, this would be captured accordingly. We have conducted stress tests and climate-related
scenario analyses to assess the potential impacts of climate-related physical and transition risks on selected portfolios.
Through our comprehensive business continuity planning and physical climate risk identification process, we consider the
risk to our own physical assets. UBS is committed to ensuring continuity of service for our clients and the broader financial
markets.
The activities described in the above paragraph are governed by the BCR framework, which ensures that the firm’s
residual operational risk remains within risk appetite. The Group BCR framework enables divisions and functions to
analyze their services to understand the associated continuity and resilience risks and develop effective recovery strategies
and solutions.

Sustainability Report 2024 | Appendix 3 | Other supplemental information 109

The Group’s main hubs span APAC (mainly Singapore / Hong Kong / Tokyo), EMEA (mainly London / Zurich / Frankfurt /
Madrid) and the US (mainly New York City). Each of these areas is assessed for climate-related threats and may present
climate change risks in the form of extreme weather conditions and the potential for natural disasters (earthquakes,
hurricanes, typhoons, tidal anomalies, rising temperatures, etc.) and increased threat of disease outbreaks. Note that the
legacy Credit Suisse Group Non-Financial Risks Scenarios team that performed global climate scenario stress testing has
been integrated into Group Risk Control; BCR impacts are also considered in this context. Where vulnerabilities have been
identified, additional assessments are carried out and appropriate planning is put in place to mitigate the risk of impact.
Key first line of defense controls take the form of key procedural controls that monitor the overall conformance of
divisions and functions to the BCR program and process controls designed to identify more specific threats.

Non-financial disclosures pursuant to the Swiss Code of Obligations Art. 964b.

This report comprises the “non-financial” disclosures required for UBS Group AG, and its subsidiaries, under the Swiss
Code of Obligations Art. 964b. These disclosures can be found in the sections and the pages indicated below. The material
topics listed in the index are limited to the matters addressed by the Swiss Code of Obligations Art. 964b. For material
matters, we assess the effectiveness of our management approaches through a number of measures as described, in
particular, in the “Business conduct and corporate culture” and “Key policies and principles” sections of this report, and
“Approach to grievances” in the supplementary document to this report.
› Refer to the “Supplement to Managing sustainability and climate risks” section of the Supplement to the UBS Group
Sustainability Report 2024, available at ubs.com/sustainability-reporting, for more information about “Information on UBS Group
AG pursuant to the Swiss Ordinance on Due Diligence and Transparency in relation to Minerals and Metals from Conflict-Affected
Areas and Child Labor”

Section in Sustainability Report 2024 (SR 2024) Page(s)

About this report (including About this report SR 2024 / 6–8

framework)

Description of the business model1 Our sustainability and impact strategy SR 2024 / 29
Our business model SR 2024 / 10–11

Material risks Risk evaluation SR 2024 / 111-112

Non-financial aspects Section in Sustainability Report 2024 (SR 2024) Page(s)

Broad thematic issues affecting all The importance of sustainability and culture to UBS SR 2024 / 4–5
non-financial aspects
Governance SR 2024 / 19–23

Key policies and principles SR 2024 / 105–107

Supporting opportunities SR 2024 / 75–88

Our key aspirations and progress SR 2024 / 30–31

Environmental and human rights Our sustainability and impact strategy SR 2024 / 29
matters
Our stakeholder engagement SR 2024 / 12–14

Managing our supply chain responsibly SR 2024 / 54–56

Environment SR 2024 / 32–64

Driving social impact SR 2024 / 70–72

Respecting human rights SR 2024 / 73

Reducing our own environmental impact SR 2024 / 47–53

Social and employee matters Our sustainability and impact strategy SR 2024 / 29

People and culture make the difference SR 2024 / 65–69

Anti-corruption and bribery matters Combating financial crime SR 2024 / 26

Prevention and detection of corruption and bribery SR 2024 / 26–28

1 Further information on our business model can be found in the UBS Group Annual Report 2024 section “Our strategy, business model and environment,”available at ubs.com/investors.

Sustainability Report 2024 | Appendix 3 | Other supplemental information 110

 Ernst & Young Ltd Phone +41 58 286 86 86
Aeschengraben 27 www.ey.com/ch
P.O. Box
CH-4002 Basel

To the Management of Basel, 14 March 2025

UBS Group AG, Zurich

Independent assurance report on selected sustainability metrics for the

year ended 31 December 2024
We have been engaged to perform assurance procedures to provide limited and reasonable assurance on selected
sustainability metrics (including GHG emissions) included in UBS Group AG and its consolidated subsidiaries’ (the
Group’s or UBS’s) Sustainability Report 2024, including the Supplement of UBS Group AG for the year ended 31
December 2024 (the Report). Specifically, we were engaged to provide:

 limited assurance on metrics identified in Appendix A, the Group’s GRI (Global Reporting Initiative) metrics identified
in Appendix B; and
 reasonable assurance on metrics identified in Appendix C

We did not perform assurance procedures on other information included in the Report, other than as described in the
preceding paragraph, and accordingly, we do not express an opinion or conclusion on this information.

Applicable criteria
The Group defined as applicable criteria (the Applicable Criteria):
 GRI Standards (a summary of the standards is presented on the GRI homepage); and
 the Group’s definitions and methods as defined in the ‘Basis of Preparation’ document (within the Supplement of the
UBS Group Sustainability Report 2024). The ‘Basis of Preparation’ has been used as the applicable criteria for
metrics identified in Appendices A and C.

Inherent limitations
The accuracy and completeness of selected metrics (including GHG emissions) are subject to inherent limitations given
their nature and methods for determining, calculating and estimating such data. In addition, the quantification of the
non-financial matters metrics is subject to inherent uncertainty because of incomplete scientific knowledge used to
determine factors related to the emissions factors and the values needed to combine e.g. emissions of different gases.
Our assurance report should therefore be read in connection with the Group’s ‘Basis of Preparation’ document in the
Report, its definitions and procedures on non-financial matters reporting therein.

Responsibility of the Management

The Management is responsible for the selection of the Applicable Criteria and for preparation and presentation, in all
material respects, of the disclosed metrics (including GHG emissions) in accordance with the Applicable Criteria. This
responsibility includes the design, implementation, and maintenance of internal controls relevant to the preparation of
the metrics that it is free from material misstatement, whether due to fraud or error.

Independence and quality control

We have complied with the independence and other ethical requirements of the International Code of Ethics for
Professional Accountants (including International Independence Standards) of the International Ethics Standards Board
for Accountants (IESBA Code), which is founded on fundamental principles of integrity, objectivity, professional
competence and due care, confidentiality and professional behavior.

Sustainability Report 2024 | Appendix 3 | Other supplemental information 111

 Our firm applies International Standard on Quality Management 1, which requires the firm to design, implement and
operate a system of quality management including policies or procedures regarding compliance with ethical
requirements, professional standards and applicable legal and regulatory requirements.

Our responsibility
Limited assurance
Our responsibility is to express a conclusion on the selected metrics (including GHG emissions) based on the evidence
we have obtained.

Reasonable assurance
Our responsibility is to express an opinion on the presentation of the selected metrics, based on the evidence we have
obtained.

We conducted our limited and reasonable assurance engagements in accordance with the International Standard on
Assurance Engagements (ISAE) 3000 Assurance Engagements Other than Audits or Reviews of Historical Financial
Information. This standard requires that we plan and perform these engagements to obtain limited and reasonable
assurance about whether the metrics (including GHG emissions) are free from material misstatement, whether due to
fraud or error.

Summary of work performed

Limited assurance
Procedures performed in a limited assurance engagement vary in nature and timing from, and are less in scope than,
for a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance
engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance
engagement been performed. Our procedures were designed to obtain a limited level of assurance on which to base our
conclusion and do not provide all the evidence that would be required to provide a reasonable level of assurance.

Reasonable assurance
A reasonable assurance engagement in accordance with ISAE 3000 involves performing procedures to obtain evidence
about the metrics in scope of reasonable assurance. The procedures selected depend on the practitioner’s judgment,
including the assessment of the risks of material misstatement, whether due to fraud or error, in the metrics in the
scope of reasonable assurance. In making those risk assessments, we considered internal control relevant to the
Group’s preparation of the metrics in scope of reasonable assurance.

Although we considered management’s internal controls when determining the nature and extent of our procedures,
our assurance engagement was not designed to provide assurance on internal controls. Our procedures did not include
testing controls or performing procedures relating to checking aggregation or calculation of data within IT systems.

Procedures performed
Our limited and reasonable assurance procedures included, amongst others, the following work:
 Evaluating the appropriateness of the Applicable Criteria used, their consistent application and related
disclosures in the Report.
 Conducting interviews with key personal to understand the process for collecting, collating, and reporting the
metrics during the reporting period, including obtaining an understanding of internal control relevant to the
engagements, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal
control.
 Undertaking analytical review procedures to support the reasonableness of the data and to identify areas of the
metrics and information with a higher risk of misleading or unbalanced information or material misstatements
and obtaining an understanding of any explanations provided for significant variances.

Sustainability Report 2024 | Appendix 3 | Other supplemental information 112

  Evaluating the appropriateness of metrics within the Report and the consistency of the metrics and information
presented across the Report.
In addition, our procedures over the metrics in scope of reasonable assurance included, but were not limited to:
 Performing process walkthroughs to obtain an understanding of Management’s reporting processes, including
Management’s internal control framework and guidelines.
 Selecting key items and representative samples based on statistical sampling methodology and agreeing to
source information to test the accuracy and completeness of the data, including the correct filtering and
mapping of data based on the underlying Applicable Criteria.

Our procedures did not include testing the accuracy of the externally published input data provided by third parties.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our limited assurance
conclusion.

We believe that the evidence we have obtained is sufficient and appropriate to provide a reasonable basis for our
opinion.

Conclusion – limited assurance

Based on the procedures performed and the evidence obtained, nothing has come to our attention that causes us to
believe that the selected metrics in scope of limited assurance (including GHG emissions) in the Report of the Group
have not been prepared, in all material respects, in accordance with the Applicable Criteria.

Opinion – reasonable assurance

In our opinion, the selected metrics in scope of reasonable assurance in the Report of the Group have been prepared, in
all material respects, in accordance with the Applicable Criteria.

Restricted use
This report is intended solely for the information and use of UBS to inform Management about the result of the
assurance engagements. Consequently, it may not be suitable for any other purpose than the aforementioned.

Ernst & Young Ltd

Maurice McCormick Eveline Hunziker

Partner Executive in charge

Sustainability Report 2024 | Appendix 3 | Other supplemental information 113

 Appendix A
Subject Matter covered by our limited assurance engagement (custom metrics)

Section Metric Reporting Boundary

Table “Climate- Assets with net-zero ambition (USD billion) UBS Group AG
related investing
metrics:
Opportunities – net Number of net-zero ambition portfolios UBS Group AG
zero investing
(Asset Net-zero ambition assets share of total assets under management (%) UBS Group AG
Management)”

Asset Management Investment-associated carbon emissions: carbon emissions (absolute in million metric UBS Group AG
tons of CO2e)
Asset Management Investment-associated carbon emissions: carbon intensity (metric tons of CO 2e per USD UBS Group AG
Table “Climate- million invested)
related investing Asset Management Investment-associated carbon emissions: carbon intensity (metric tons of CO 2e per USD UBS Group AG
metrics – portfolio million of revenue)
emissions (Asset
Equity Asset Class carbon intensity (metric tons of CO2e per USD million invested) UBS Group AG
Management)”
Equity Asset Class carbon intensity (metric tons of CO2e per USD million revenue) UBS Group AG
Fixed income Asset Class carbon intensity (metric tons of CO2e per USD million invested) UBS Group AG
Fixed income Asset Class carbon intensity (metric tons of CO2e per USD million revenue) UBS Group AG
Swiss residential real estate physical intensity (kg CO2e/m2 ERA) (reported as of 31.12.2023) UBS Group AG

Swiss residential real estate (% reduction vs. 2021) (reported as of 31.12.2023) UBS Group AG

2
Swiss commercial real estate physical intensity (kg CO2e/m ERA) (reported as of 31.12.2023) UBS Group AG

Swiss commercial real estate (% reduction vs. 2021) (reported as of 31.12.2023) UBS Group AG

Fossil fuels (coal, oil and gas) – scopes 1, 2 and 3 physical intensity (million metric tons CO2e) UBS Group AG

Table “Overview of Fossil fuels - % change vs baseline (reported as of 31.12.2023) UBS Group AG
our 2030 lending
sector
decarbonization Power generation - scope 1 physical intensity (kg CO2e/MWh) (reported as of 31.12.2023) UBS Group AG
targets and progress
(UBS Group)” Power generation - % change vs baseline (reported as of 31.12.2023) UBS Group AG

Iron and steel - scopes 1 and 2 physical intensity (metric tons CO2/metric ton steel) (reported as of UBS Group AG
31.12.2023)

Iron and steel - % change vs baseline (reported as of 31.12.2023) UBS Group AG

Cement - scopes 1 and 2 physical intensity (metric tons CO 2/metric ton cementitious) (reported as of UBS Group AG
31.12.2023)

Cement - % change vs baseline (reported as of 31.12.2023) UBS Group AG

Table “Poseidon Shipping (delta alignment to ”IMO 2023 minimum trajectory”) (%) (reported as of 31.12.2023) UBS AG
Principles disclosure
(UBS AG – Credit
Suisse AG Shipping (delta alignment to “IMO 2023 striving trajectory” (%) (reported as of 31.12.2023) UBS AG
portfolio)”

Swiss residential real estate financed emissions, scopes 1 and 2 (million tons CO2e) (reported as of UBS Group AG
31.12.2023)

Swiss residential real estate PCAF score for financed emissions, scopes 1 and 2 (reported as of 31.12.2023) UBS Group AG

Swiss residential real estate economic intensity (million tons CO2e/USD billion) (reported as of 31.12.2023) UBS Group AG

Table “Financed Swiss commercial real estate financed emissions, scopes 1 and 2 (million tons CO2e) (reported as of UBS Group AG
emissions covered 31.12.2023)
by lending sector
decarbonization Swiss commercial real estate PCAF score for financed emissions, scopes 1 and 2 (reported as of UBS Group AG
targets (UBS 31.12.2023)
Group)”
Swiss commercial real estate economic intensity (million tons CO2e/USD billion) (reported as of 31.12.2023) UBS Group AG

Fossil fuels (coal, oil and gas) - financed emissions, scopes 1 and 2 (million metric tons CO2e) (reported as of UBS Group AG
31.12.2023)

Fossil fuels (coal, oil and gas) - financed emissions, scope 3 (million metric tons CO2e) (reported as of UBS Group AG
31.12.2023)

Sustainability Report 2024 | Appendix 3 | Other supplemental information 114

 Fossil fuels (coal, oil and gas) PCAF score for financed emissions, scopes 1 and 2 (reported as of UBS Group AG
31.12.2023)

Fossil fuels (coal, oil and gas) PCAF score for financed emissions, scope 3 (reported as of 31.12.2023) UBS Group AG

Fossil fuels (coal, oil and gas) economic intensity (million tons CO2e/USD billion) (reported as of 31.12.2023) UBS Group AG

Power generation financed emissions, scopes 1 and 2 (million tons CO2e) (reported as of 31.12.2023) UBS Group AG

Power generation PCAF score for financed emissions, scopes 1 and 2 (reported as of 31.12.2023) UBS Group AG

Power generation economic intensity (million tons CO2e/USD billion) (reported as of 31.12.2023) UBS Group AG

Iron and steel financed emissions, scopes 1 and 2 (million tons CO2e) (reported as of 31.12.2023) UBS Group AG

Iron and steel PCAF score for financed emissions, scopes 1 and 2 (reported as of 31.12.2023) UBS Group AG

Iron and steel economic intensity (million tons CO2e/USD billion) (reported as of 31.12.2023) UBS Group AG

Cement financed emissions, scopes 1 and 2 (million tons CO2e) (reported as of 31.12.2023) UBS Group AG

Cement PCAF score for financed emissions, scopes 1 and 2 (reported as of 31.12.2023) UBS Group AG

Cement economic intensity (million tons CO2e/USD billion) (reported as of 31.12.2023) UBS Group AG

Other non-financial corporates and real estate mortgages - financed emissions, scopes 1 and 2 (million tons UBS Group AG
CO2e) (reported as of 31.12.2023)

Other non-financial corporates and real estate mortgages - financed emissions, scope 3 (million tons CO2e) UBS Group AG
(reported as of 31.12.2023)

Other non-financial corporates and real estate mortgages - scopes 1 and 2 PCAF score (reported as of UBS Group AG
31.12.2023)

Other non-financial corporates and real estate mortgages - scope 3 PCAF score (reported as of 31.12.2023) UBS Group AG

Other non-financial corporates and real estate mortgages - economic intensity (million tons CO2e/USD billion) UBS Group AG
(reported as of 31.12.2023)

Estimated total non-financial corporates and real estate mortgages – financed emissions, scopes 1 and 2 UBS Group AG
(million tons CO2e) (reported as of 31.12.2023)

Estimated total non-financial corporates and real estate mortgages – financed emissions, scope 3 (million UBS Group AG
tons CO2e) (reported as of 31.12.2023)

Total facilitated amount (USD billion) (reported as of 31.12.2023) UBS Group AG

Facilitated amount – selected carbon-intensive sectors (USD billion) (reported as of 31.12.2023) UBS Group AG

Selected carbon-intensive sectors - scopes 1 and 2 facilitated emissions (million metric tons CO2e) (reported UBS Group AG
as of 31.12.2023)
Table “Facilitated
emissions for Selected carbon-intensive sectors - scope 3 facilitated emissions (million metric tons CO2e) (reported as of UBS Group AG
selected carbon- 31.12.2023)
intensive sectors
(UBS Group)” Selected carbon-intensive sectors - scopes 1 and 2 facilitated emissions PCAF score (reported as of UBS Group AG
31.12.2023)

Selected carbon-intensive sectors - scope 3 facilitated emissions PCAF score (reported as of 31.12.2023) UBS Group AG

Selected carbon-intensive sectors – facilitated intensity (million metric tons CO2e/USD billion) (reported as of UBS Group AG
31.12.2023)

Exposure to climate-sensitive sectors, transition risk: Traded products, UBS Group AG (consolidated) (USD UBS Group AG
billion)
Exposure to climate-sensitive sectors, transition risk: Issuer risk, UBS Group AG (consolidated) (USD billion) UBS Group AG
Exposure to climate-sensitive sectors, physical risk: Traded products, UBS Group AG (consolidated) (USD UBS Group AG
billion)
Exposure to climate-sensitive sectors, physical risk: Issuer risk, UBS Group AG (consolidated) (USD billion) UBS Group AG
Table “Risk
management – Exposure to climate-sensitive sectors, transition risk: Traded products, UBS AG (standalone) (USD billion) UBS AG
Climate-related Exposure to climate-sensitive sectors, transition risk: Traded products, UBS Switzerland AG (standalone) UBS Switzerland AG
metrics” (USD billion)
Exposure to climate-sensitive sectors, transition risk: Traded products, UBS Europe SE (standalone) (USD UBS Europe SE
billion)
Exposure to climate-sensitive sectors, transition risk: Issuer risk, UBS AG (standalone) (USD billion) UBS AG
Exposure to climate-sensitive sectors, transition risk: Issuer risk, UBS Switzerland AG (standalone) (USD UBS Switzerland AG
billion)
Exposure to climate-sensitive sectors, transition risk: Issuer risk, UBS Europe SE (standalone) (USD billion) UBS Europe SE

Sustainability Report 2024 | Appendix 3 | Other supplemental information 115

 Exposure to climate-sensitive sectors, physical risk: Traded products, UBS AG (standalone) (USD billion) UBS AG
Exposure to climate-sensitive sectors, physical risk: Traded products, UBS Switzerland AG (standalone) UBS Switzerland AG
(USD billion)
Exposure to climate-sensitive sectors, physical risk: Traded products, UBS Europe SE (standalone) (USD UBS Europe SE
billion)
Exposure to climate-sensitive sectors, physical risk: Issuer risk, UBS AG (standalone) (USD billion) UBS AG
Exposure to climate-sensitive sectors, physical risk: Issuer risk, UBS Switzerland AG (standalone) (USD UBS Switzerland AG
billion)
Exposure to climate-sensitive sectors, physical risk: Issuer risk, UBS Europe SE (standalone) (USD billion) UBS Europe SE
Graph “Climate- Climate-driven transition risk profile chart for the UBS Group AG (sector/segment breakdown in USD billion) UBS Group AG
driven transition risk
profile chart for UBS
Group AG”

Graph “Climate- Climate-driven physical risk profile chart for the UBS Group AG (sector/segment breakdown in USD billion) UBS Group AG
driven physical risk
profile chart for UBS
Group AG”

Table “Risk Risk exposures by sector for UBS Group - sector/subsector breakdown (USD billion) UBS Group AG
exposures by sector
for UBS Group”

Table “Sustainability Number of cases referred for assessment: UBS Group AG (consolidated) UBS Group AG
and climate risk
assessments” Number of cases referred for assessment: UBS Europe SE UBS Europe SE

Percentage of contractual instruments, scope 2 GHG emissions UBS Group AG

Text “Our scope 1 Percentage of contractual instruments used for sale and purchase of energy bundled with attributes about UBS Group AG
and 2 net-zero energy generation in relation to scope 2 GHG emissions
target”
Percentage of contractual instruments used for sale and purchase of unbundled energy attribute claims in UBS Group AG
relation to scope 2 GHG emissions

Table “Carbon Carbon credits canceled in reporting year (tons CO2e) UBS Group AG
credits canceled
(UBS Group)”
Text “Fair and Statistical pay gap (%) UBS Group AG
equitable pay”
Text “Increased Number of vendors voluntarily disclosing their environmental performance through CDP’s Supply Chain UBS Group AG
transparency and Program
reporting of climate % of the vendors voluntarily disclosing that actually submitted disclosures in CDP UBS Group AG
information by
vendors” Number of vendors that submitted disclosures in CDP UBS Group AG
Table “Overview of Number of GHG key vendors UBS Group AG
climate-related
disclosures of our
GHG key vendors % of GHG key vendors that have disclosed their emissions and declared in CDP a stated net-zero target UBS Group AG
(UBS Group)”
Text “Inclusive Diverse vendors spend (%) UBS Group AG
growth in the supply
chain”
Employee listening survey results - response rate (%) UBS Group AG
Text “Employee
engagement”
Employee listening survey results - engagement rate (%) UBS Group AG

Text “Hiring, Total cost of training (USD billion) UBS Group AG

developing and
retaining talent”
Text “Performance Number of employee feedback UBS Group AG
management”

Text “Benefits and Absentees rate (UBS excluding Credit Suisse) (%) UBS Group AG
assistance”
Absentees rate (Credit Suisse) (%) UBS Group AG
Global Wealth Management clients' impact investing assets (USD billion) UBS Group AG
Global Wealth Managements clients’ discretionary assets aligned to a sustainable investing strategic asset UBS Group AG
allocation (USD billion)
Text “Global Wealth
Management – 2024 Discretionary Credit Suisse mandates that are managed according to the sustainable investing SAA and are UBS Group AG
highlights” included in the UBS Global Product Catalogue while still being booked in the Credit Suisse systems (USD
billion)
Global Wealth Management US SI SAA Aligned invested assets excluded in 2024 figures that are undergoing UBS Group AG
additional validation procedures (USD billion)
Sustainable investing products share of clients’ investment assets (excluding cash deposits and savings) in UBS Group AG
Text “Personal &
Personal Banking (%)
Corporate Banking –
2024 highlights” Drawn exposure of sustainable loans granted to corporate and institutional clients booked on the UBS UBS Switzerland AG
Switzerland AG platform (USD billion)

Sustainability Report 2024 | Appendix 3 | Other supplemental information 116

 Asset Management’s fund offering consisting of sustainable investing products (%) UBS Group AG
Number of companies engaged on sustainability-related topics UBS Group AG
Text “Asset
Management – 2024 % of companies engaged on sustainability topics with progress UBS Group AG
highlights”
Number of engagement meetings on sustainability-related topics UBS Group AG
Number of sustainability-related topics engagement meetings conducted regarding environmental and social UBS Group AG
issues
Text “Group Green, social and sustainability bonds held by Group Treasury (USD billion) UBS Group AG
Treasury activities”
Text “ESG ESG integration & exclusion invested assets (USD billion) UBS Group AG
integration and ESG integration invested assets (USD billion) UBS Group AG
exclusion”
ESG exclusion invested assets (USD billion) UBS Group AG

Sustainability Report 2024 | Appendix 3 | Other supplemental information 117

 Appendix B
Subject Matter covered by our limited assurance engagement (GRI metrics)

Section Metric Reporting Boundary

Table “GHG Total GHG emissions (location-based) per net revenue (ton CO2e/USD million) UBS AG
intensity per
net revenue Total GHG emissions (market-based) per net revenue (ton CO2e/USD million) UBS AG
(UBS Group)”
Total direct and intermediate energy consumption (GWh) UBS Group AG

Total direct energy consumption (GWh) UBS Group AG

Natural gas (% of total direct energy consumption) UBS Group AG

Heating oil (% of total direct energy consumption) UBS Group AG

Fuels (petrol, diesel, gas, biomass) (% of total direct energy consumption) UBS Group AG

Renewable energy (solar power, etc.) (% of total direct energy consumption) UBS Group AG

Total intermediate energy purchased (GWh) UBS Group AG

Electricity (GWh) UBS Group AG

Electricity from gas-fired power stations (%) UBS Group AG

Electricity from oil-fired power stations (%) UBS Group AG

Electricity from coal-fired power stations (%) UBS Group AG

Electricity from nuclear power stations (%) UBS Group AG

Electricity from hydroelectric power stations (%) UBS Group AG

Electricity from other renewable sources (%) UBS Group AG

Heat (e.g., district heating) (GWh) UBS Group AG

Table Share of electricity from renewable sources (%) UBS Group AG

“Overview of
our
Total business travel (Pkm) UBS Group AG
environmental
indicators
(UBS Group)” Rail travel (% of total business travel Pkm) UBS Group AG

Road travel (% of total business travel Pkm) UBS Group AG

Air travel (% of total business travel Pkm) UBS Group AG

Number of flights (segments) UBS Group AG

Total paper consumption (metric ton) UBS Group AG

Paper - post-consumer recycled (% of total paper consumption in metric ton) UBS Group AG

Paper - new fibers FSC (% of total paper consumption in metric ton) UBS Group AG

Paper - new fibers ECF/TCF (% of total paper consumption in metric ton) UBS Group AG

Paper - new fibers chlorine bleached (% of total paper consumption in metric ton) UBS Group AG

Total waste (metric ton) UBS Group AG

Valuable material separated and recycled (% of total waste in metric ton) UBS Group AG

Waste incinerated (% of total waste in metric ton) UBS Group AG

Waste landfilled (% of total waste in metric ton) UBS Group AG

3
Total water consumption (million m ) UBS Group AG

Direct greenhouse gas (GHG) emissions (scope 1) (metric ton) UBS Group AG

Gross location-based energy indirect GHG emissions (scope 2) (metric ton) UBS Group AG

Sustainability Report 2024 | Appendix 3 | Other supplemental information 118

 GHG reductions from renewable electricity (metric ton) UBS Group AG

Market-based energy indirect GHG emissions (scope 2) (metric ton) UBS Group AG

Gross other indirect GHG emissions (gross scope 3) (metric ton) UBS Group AG

Total gross GHG emissions (metric ton) UBS Group AG

Total net GHG emissions (GHG Footprint) (metric ton) UBS Group AG

Direct and intermediate energy (kWh per FTE) UBS Group AG

Table
“Environmental Business travel (passenger kilometer per FTE) UBS Group AG
indicators per Paper consumption (kg per FTE) UBS Group AG
full-time
employee Waste (kg per FTE) UBS Group AG
(UBS Group)” Water consumption (m3 per FTE) UBS Group AG
Greenhouse gas (GHG) footprint (metric ton CO2e per FTE) UBS Group AG
Table Scope 3 category 1 purchased goods and services (t CO 2e) UBS Group AG
“Overview of
GHG Scope 3 category 3 fuel- and energy-related activities (not included in scope 1 or Scope 2) (t CO2e) UBS Group AG
emissions
across our Scope 3 category 5 waste generated in operations (t CO 2e) UBS Group AG
scope 3
subcategories Scope 3 category 6 business travel (t CO2e) UBS Group AG
(UBS Group)”
Scope 3 category 7 employee commuting (t CO2e) UBS Group AG

Table “Our key Share of recycled and FSC paper in own operations (%) UBS Group AG
aspirations and
progress” Waste recycling ratio (%) UBS Group AG

Text “The role Number of non-executive members (Group Executive Board) UBS Group AG & UBS AG
of our
supervisory Number of executive members (Group Executive Board) UBS Group AG & UBS AG
bodies – the
Board of Number of non-executive members (Board of Directors) UBS Group AG & UBS AG
Directors of
UBS Group” Number of executive members (Board of Directors) UBS Group AG & UBS AG

Text “The role Percentage of female Group Executive Board members UBS Group AG
of our
supervisory
bodies – the
Board of
Directors of Percentage of female Board of Directors members UBS Group AG
UBS Group” &
text
“Transparency”

Text Support for Swiss political system - donations given to political parties in Switzerland (CHF million) UBS Group AG
“Governments
and regulators”

Text Direct cash contributions from the firm, incl. community impact, UBS's affiliated foundations in Switzerland and UBS Group AG
“Charitable contributions to Optimus foundation (USD million)
contributions”
Table Charitable contributions by type (USD million) UBS Group AG
“Contributions
by type (UBS
Group AG
Consolidated”

Text Employee forum representation (%) UBS Group AG

“Employee
representation”

Text Percentage of women reporting directly to a member of the GEB UBS Group AG
“Transparency”

Text Number of RSCM assessment on UBS vendors UBS Group AG

“Identifying,
New vendors screened for ESG (%) UBS Group AG
assessing and
monitoring RSCM overall assessment coverage (%) UBS Group AG
high-impact
RSCM assessments of vendors requiring improvement (%) UBS Group AG
vendors”
Text “Reduce Supply-chain vendor scope 3 emissions (category 1, 2, 4 and 9) current year UBS Group AG
supply-chain-
related carbon Supply-chain vendor scope 3 emissions (category 1, 2, 4 and 9) reduction current year compared with baseline UBS Group AG
emissions”
Table “External External hires by age group (number) UBS Group AG
hires by age
group” External hires by age group (%) UBS Group AG

Table “External External hires by region (number) UBS Group AG

hires by
region” External hires by region (%) UBS Group AG

Sustainability Report 2024 | Appendix 3 | Other supplemental information 119

 Table “External External hires by gender (number) UBS Group AG
hires by
gender” External hires by gender (%) UBS Group AG

Table “External External hires by ethnicity - UK only (number) UBS Group AG

hires by
ethnicity – UK External hires by ethnicity - UK only (%) UBS Group AG
only”
Table “External External hires by ethnicity - US only (number) UBS Group AG
hires by
ethnicity – US External hires by ethnicity - US only (%) UBS Group AG
only”
Table Voluntary and involuntary turnover with overall turnover (%) UBS Group AG
“Voluntary and
involuntary
employee
turnover”
Table Turnover by age group with overall turnover (%) UBS Group AG
“Employee
turnover by
age group”
Table Turnover by region and gender with overall turnover (%) UBS Group AG
“Employee
turnover by
region and
gender”
Table Turnover by gender - Director and above only (%) UBS Group AG
“Employee
turnover by
gender –
Director and
above only”
Table Turnover by ethnicity - UK only (%) UBS Group AG
“Employee
turnover by
ethnicity – UK
only”
Table Turnover by ethnicity - US only (%) UBS Group AG
“Employee
turnover by
ethnicity – US
only”

Text “Hiring, Number of external hires UBS Group AG

developing and Number of graduates, trainees, apprentices and intern hires UBS Group AG
retaining
talent” Number of learning activities UBS Group AG
Internal mobility rate (%) UBS Group AG
Graph “Our Total employees by headcount UBS Group AG
workforce in a
Total number of externals UBS Group AG
nutshell”
Employees: gender (%) UBS Group AG
Employees by age group UBS Group AG
Employees: by region UBS Group AG
Employees: by count of nationalities UBS Group AG
Employees: by count of languages spoken UBS Group AG
Employees: by years of service, on average UBS Group AG
Graph “Our Total employees by full time equivalents UBS Group AG
workforce in a
nutshell” & text
“Workforce by
the numbers”
Graph “Our Employees: count of countries and jurisdictions UBS Group AG
workforce in a
nutshell” & text
“Driving
sustainable
performance”
Text Number of employees with performance review UBS Group AG
“Performance
management”
Table Employees by ethnicity – UK only (number) UBS Group AG
“Employees by
ethnicity – UK Employees by ethnicity – UK only (%) UBS Group AG
only”

Sustainability Report 2024 | Appendix 3 | Other supplemental information 120

 Table Employee category "Director and above" by ethnicity - UK only (%) UBS Group AG
“Employee
category
"Director and
above" by
ethnicity - UK
only”
Table Employees by ethnicity – US only (number) UBS Group AG
“Employees by
ethnicity – US Employees by ethnicity – US only (%) UBS Group AG
only”
Table Employee category "Director and above" by ethnicity - US only (%) UBS Group AG
“Employee
category
"Director and
above" by
ethnicity - US
only”

Table “Our key Philanthropy raise USD 1 billion (2021-2025) (USD billion) Optimus Foundation
aspirations and
progress” &
text “Driving Number of people reached through social impact (cumulative since 2021) Optimus Foundation & UBS
social impact” Group AG
Text “Helping Donor Advised Fund (DAF) donation amount (USD million) Optimus Foundation
our clients
structure their
philanthropy:
donor-advised
funds”
Table “Our key Optimus Foundation donation amount (USD million) Optimus Foundation
aspirations and
progress” &
text “The UBS
Optimus
Foundation”
Text “The UBS Optimus Foundation committed grant amount (USD million) Optimus Foundation
Optimus
Foundation”
Text Percentage of employees engaged in volunteering UBS Group AG
“Employee
Number of volunteer hours UBS Group AG
volunteering”
Number of volunteer hours % hours that are skills-based UBS Group AG
Text “Training Number of awareness and specialized training UBS Group AG
and culture (3)”
Table “UBS Personnel in specialized units/functions (full time equivalent) UBS Group AG
Sustainability
and Impact Participation in awareness raising training (headcount instances) UBS Group AG
management
indicators” Participation in specialized training (headcount instances) UBS Group AG

Sustainability Report 2024 | Appendix 3 | Other supplemental information 121

 Appendix C
Subject Matter covered by our reasonable assurance engagement (custom metrics)

Section Metric Reporting Boundary

Carbon-related assets: UBS Group AG (consolidated) (USD billion) UBS Group AG

Carbon-related assets proportion of total gross lending exposure, UBS Group AG (consolidated) gross (%) UBS Group AG
Carbon-related assets: UBS AG (standalone) (USD billion) UBS AG
Carbon-related assets: UBS Switzerland AG (standalone) (USD billion) UBS Switzerland AG
Carbon-related assets: UBS Europe SE (standalone) (USD billion) UBS Europe SE
Total exposure to climate-sensitive sectors, transition risk: UBS Group AG (consolidated) (USD billion) UBS Group AG

Table “Risk Climate-sensitive sectors, transition risk, proportion of total gross lending exposure, UBS Group AG (consolidated) UBS Group AG
management – gross (%)
Climate-related Total exposure to climate-sensitive sectors, transition risk: UBS AG (standalone) (USD billion) UBS AG
metrics” Total exposure to climate-sensitive sectors, transition risk: UBS Switzerland AG (standalone) (USD billion) UBS Switzerland AG
Total exposure to climate-sensitive sectors, transition risk: UBS Europe SE (standalone) (USD billion) UBS Europe SE
Total exposure to climate-sensitive sectors, physical risk: UBS Group AG (consolidated) (USD billion) UBS Group AG
Climate-sensitive sectors, physical risk, proportion of total gross lending exposure, UBS Group AG (consolidated) gross UBS Group AG
(%)
Total exposure to climate-sensitive sectors, physical risk: UBS AG (standalone) (USD billion) UBS AG
Total exposure to climate-sensitive sectors, physical risk: UBS Switzerland AG (standalone) (USD billion) UBS Switzerland AG
Total exposure to climate-sensitive sectors, physical risk: UBS Europe SE (standalone) (USD billion) UBS Europe SE
Sustainability focus invested assets (USD billion) UBS Group AG
Impact investing invested assets (USD billion) UBS Group AG
Sustainable investing invested assets (USD billion) UBS Group AG
Table
“Sustainable Sustainable investing proportion of UBS Group invested assets (%) UBS Group AG
Investments”
Sustainable investing: Invested assets Credit Suisse integration-related impact (Asset Management) (USD billion) UBS Group AG
Sustainable investing: Invested assets Credit Suisse integration-related impact (Global Wealth Management) (USD UBS Group AG
billion)
Sustainable investing: Invested assets GWM-US undergoing additional validations procedures (USD billion) UBS Group AG
Text “Asset Sustainable investing invested assets (Asset Management) (USD billion) UBS Group AG
Management –
2024
highlights”
Number of green, social, sustainability, and sustainability-linked (GSSS) bond deals UBS Group AG

Table “Labelled Number of green, sustainability, and sustainability-linked (climate-related) bond deals UBS Group AG
transactions Total deal value of green, social, sustainability, and sustainability-linked (GSSS) bond deals (USD billion) UBS Group AG
facilitated by
UBS” Total deal value of green, sustainability, and sustainability-linked bond deals (climate-related) bond deals (USD billion) UBS Group AG
Apportioned deal value of green, social, sustainability, and sustainability-linked (GSSS) bond deals (USD billion) UBS Group AG
Apportioned deal value of green, sustainability, and sustainability-linked bond deals (climate-related) (USD billion) UBS Group AG

Sustainability Report 2024 | Appendix 3 | Other supplemental information 122

Key terms and definitions
Sustainability
Commonly defined as “meeting the needs of the present without compromising the ability of future generations to meet
their own needs“ (United Nations (UN) Brundtland Commission, 1987). In this way, we sometimes refer to sustainability
to imply a broader scope of resources that may be exhausted beyond those that impact climate change. Our ambition is
to conduct business and operations without negatively impacting the environment, society or the economy as a whole
and, through our sustainability disclosure, to be transparent about how we are pursuing this.
Sustainable Development Goals (the SDGs)
The 2030 Agenda for Sustainable Development, adopted by all UN member states in 2015, provides a shared blueprint
for peace and prosperity for people and the planet. At its heart are the 17 UN Sustainable Development Goals (available
at sdgs.un.org/goals), the SDGs, which are an urgent call for action by all countries – developed and developing – in a
global partnership. They recognize that ending poverty and other deprivations must go hand-in-hand with strategies that
improve health and education, reduce inequality and spur economic growth – all while tackling climate change and
working to preserve our oceans and forests.
ESG (Environmental, Social, Governance)
A framework to help stakeholders understand how an organization is managing risks and opportunities related to ESG
criteria or factors. It is often used in the context of investing, but – beyond the investment community – clients, suppliers
and employees are also increasingly interested in how sustainable an organization’s operations are.
Sustainable finance
Sustainability focus: strategies that have explicit sustainable intentions or objectives that drive the strategy. Underlying
investments may contribute to positive sustainability outcomes through products / services / use of proceeds.
Impact investing: investment strategies that have an explicit intention to generate measurable, verifiable and positive
sustainability outcomes. Impact generated is attributable to investor action and / or contribution.
Green, social and sustainability loans and bonds are instruments made available exclusively to finance or re-finance, in
whole or in part, new and / or existing eligible green and / or social projects that form part of a credible program from
the borrower / issuer to improve their environmental and / or social footprint.
Sustainability-linked loans and bonds are any types of instruments that incentivize the borrower’s / issuer’s achievement
of ambitious, predetermined Sustainable Performance Targets (SPTs) that are measured using predefined sustainability
KPIs.
Low-carbon economy
Refers to a type of decarbonized economy that is based on low energy consumption and low levels of greenhouse gas
(GHG) emissions:
Scope 1: accounts for GHG emissions by UBS.
Scope 2: accounts for indirect GHG emissions associated with the generation of imported / purchased electricity (grid
average emission factor), heat or steam.
Scope 3: accounts for GHG emissions resulting from activities from assets not owned or controlled by the reporting
organization, but that the organization indirectly impacts in its value chain.
Net zero: refers to cutting GHG emissions to as close to zero as possible, with any remaining emissions re-absorbed from
the atmosphere.
GHG key vendor: a top GHG scope 3 emitter relative to UBS’s overall scope 3 supply chain emissions and with which UBS
has a long-term ongoing relationship.
Sustainability disclosure
Task Force on Climate-related Financial Disclosures (TCFD): provider of climate-related financial disclosure
recommendations designed to help companies provide better information to support informed capital allocation.
Materiality assessment
The TCFD requires companies to conduct a double materiality assessment that looks at both the inside-out impact the
company has on the environment and the outside-in impact climate-related activities may have on the company
performance.

Sustainability Report 2024 | Appendix 3 | Other supplemental information 123

Abbreviations frequently used in our sustainability report
A
AMAS Asset Management Association Switzerland
AML anti-money laundering
AuM assets under management

B
BCBS Basel Committee on Banking Supervision
BD(s) Business division(s), organizational units of the UBS business: (i) Global Wealth Management, (ii) Personal & Corporate
Banking, (iii), Asset Management and (iv) the Investment Bank
B4SI Business Investment for Societal Impact
BoD Board of Directors
BoE Bank of England

C
CCRC Corporate Culture and Responsibility Committee
CDP formerly the Carbon Disclosure Project
CDR carbon dioxide removal

CFO Chief Financial Officer

CHF Swiss franc
CIC Corporate & Institutional Clients
CIO Chief Investment Office
C&ORC Compliance & Operational Risk Control
CSRD Corporate Sustainability Reporting Directive

D
DAF donor-advised fund
DJSI Dow Jones Sustainability Indices

E
EC European Commission
EMS environmental management system
ESG environmental, social and governance
EU European Union
EUR euro
ERA Energy Reference Area
ETF exchange-traded fund
EY Ernst & Young

F
FINMA Swiss Financial Market Supervisory Authority
FTE full-time employee
FX foreign exchange

G
GCFO Group Chief Financial Officer
GCRG Group Compliance, Regulatory & Governance
GEB Group Executive Board
GHRCS Group Human Resources and Corporate Services
GHG greenhouse gas
GIA Group Internal Audit
GICS Global Industry Classification Standard
GOTO Group Operations and Technology Office
GRC Group Risk Control
GRI Global Reporting Initiative
GSI Group Sustainability and Impact

H
HR human resources

Sustainability Report 2024 | Appendix 3 | Other supplemental information 124

I
ICMA International Capital Market Association
ICMM International Council on Mining and Metals
IFRS International Financial Reporting Standards
IPCC Intergovernmental Panel for Climate Change
ISO International Organization for Standardization

L
LEED Leadership in Energy and Environmental Design
LoD lines of defense
LTV loan-to-value

M
MAT Materiality Assessment Team
M&A mergers and acquisitions
MiFID II Markets in Financial Instruments Directive II

N
NFR non-financial risks
NFRD Non-Financial Reporting Directive
NGFS Network for Greening the Financial System
NYSE New York Stock Exchange
NZE Net-Zero Emissions by 2050 Scenario

O
OECD Organization for Economic Co-operation and Development
ORF operational risk framework
OTC over-the-counter

P
PACI Partnership Against Corruption Initiative
PACTA Paris Agreement Capital Transition Assessment
PCAF Partnership for Carbon Accounting Financials
P&L profit and loss
PRA UK Prudential Regulation Authority

R
RSCM responsible supply chain management
RSPO Roundtable on Sustainable Palm Oil
RW risk weight
RWA risk-weighted assets

S
SCR sustainability and climate risk
SCS Swiss Climate Score
SDA Sectoral Decarbonization Approach
SDC Swiss Agency for Development and Cooperation
SDG Sustainable Development Goal
SDS Sustainable Development Scenario
SEC US Securities and Exchange Commission
SFDR Sustainable Finance Disclosure Regulation
SI sustainable investment
SIF Credit Suisse sustainability investment framework
SIX SIX Swiss Exchange
SME small and medium-sized entities
SNB Swiss National Bank

T
TBTF too big to fail
TCFD Task Force on Climate-related Financial Disclosures

Sustainability Report 2024 | Appendix 3 | Other supplemental information 125

U
UN United Nations
UNEP FI United Nations Environment Programme Finance Initiative
UNGPs UN Guiding Principles on Business and Human Rights
USD US dollar

Note: This list of abbreviations is not deemed to be comprehensive of all the abbreviations used in this report.

Sustainability Report 2024 | Appendix 3 | Other supplemental information 126

Cautionary Statement
Cautionary Statement | This report may contain statements that constitute “forward-looking statements.” Refer to the Cautionary Statement Regarding
Forward-Looking Statements in the UBS Group Annual Report 2024, available at ubs.com/investors, for further details.

Notice to investors | This report and the information contained herein are provided solely for information purposes, and are not to be construed as
solicitation of an offer to buy or sell any securities or other financial instruments in Switzerland, the United States or any other jurisdiction. No investment
decision relating to securities of or relating to UBS Group AG, UBS AG or their affiliates should be made on the basis of this report. Refer to the UBS Group
Annual Report 2024, available at ubs.com/investors, for additional information.

Rounding | Numbers presented throughout this report may not add up precisely to the totals provided in the tables and text. Percentages and percent changes
are calculated on the basis of unrounded figures. Information about absolute changes between reporting periods, which is provided in text and which can be
derived from figures displayed in the tables, is calculated on a rounded basis.

Tables | Within tables, blank fields generally indicate that the field is not applicable or not meaningful, or that information is not available as of the relevant
date or for the relevant period. Zero values generally indicate that the respective figure is zero on an actual or rounded basis. Percentage changes are presented
as a mathematical calculation of the change between periods.

Sustainability Report 2024 | Appendix 3 | Other supplemental information 127

UBS Group AG
P.O. Box
CH-8098 Zurich

ubs.com