Sustainability Report

2023
Thinking and acting with the long term in mind
 Table of contents Page

Introduction ....................................................................................................................................................................................3
The importance of sustainability and culture to UBS...................................................................................................................3
About this report .......................................................................................................................................................................5
Banking on sustainability ...........................................................................................................................................................8
Our integration journey – at a glance.........................................................................................................................................9
Our business model .................................................................................................................................................................11
Sustainability drives our ambitions ...........................................................................................................................................13
Strategy .........................................................................................................................................................................................14
Our sustainability and impact strategy......................................................................................................................................14
Our aspirations and progress ...................................................................................................................................................15
Governance ...................................................................................................................................................................................17
Our sustainability governance ..................................................................................................................................................17
Environment..................................................................................................................................................................................21
Contributing to a low-carbon economy ...................................................................................................................................21
Supporting our clients’ low-carbon transition...........................................................................................................................27
Reducing our environmental impact.........................................................................................................................................38
Monitoring the environmental impact of our supply chain .......................................................................................................42
Managing the risks of climate change to our business..............................................................................................................44
Social..............................................................................................................................................................................................45
People and culture make the difference ...................................................................................................................................45
Driving social impact................................................................................................................................................................54
Respecting human rights .........................................................................................................................................................57
Managing our supply chain responsibly....................................................................................................................................58
Supporting opportunities ............................................................................................................................................................61
Global Wealth Management....................................................................................................................................................66
Asset Management..................................................................................................................................................................68
Investment Bank ......................................................................................................................................................................71
Personal & Corporate Banking .................................................................................................................................................73
Managing sustainability and climate risks .................................................................................................................................75
Sustainability and climate risk management framework ...........................................................................................................76
Appendix .....................................................................................................................................................................................100
Appendix 1 – Governance......................................................................................................................................................100
Appendix 2 – Environment.....................................................................................................................................................104
Appendix 3 – Entity-specific disclosures for Credit Suisse AG..................................................................................................116
Appendix 4 – Other supplemental information.......................................................................................................................130

2
Introduction
The importance of sustainability and culture to UBS
The acquisition of the Credit Suisse Group made 2023 an exceptional year in our firm’s history. We completed the
first-ever combination of two global systemically important financial institutions (G-SIFIs) and have embarked on a
major program to integrate the two banks. Our sustainability frameworks are no exception. We have made
significant progress in aligning our frameworks for the combined firm and will continue with this alignment in 2024
and beyond. 2023 also saw significant developments in corporate disclosure requirements, particularly the
European Union’s Corporate Sustainability Reporting Directive (the CSRD), as well as in the availability of emissions
data and standards. In addition, market volatility and the conflicts in Ukraine and the Middle East presented new
challenges for sustainable investing.

Integration of Credit Suisse

We have made significant progress in integrating UBS and Credit Suisse’s sustainability policy frameworks and
processes:
– We have implemented a revised sustainability and climate risk policy framework and associated processes to
reflect the full suite of activities of the combined business and a consistent approach.
– We are minimizing our scope 1 and 2 greenhouse gas (GHG) emissions through energy efficiencies and by
switching to more sustainable energy sources, across the combined firm.
– We have developed updated scope 3 emissions targets reflecting the combined profile of the combined firm and
evolving regulatory and data standards. We have updated our previous emissions targets for real estate mortgage
lending, as well as the fossil fuels, power generation and cement sectors, reflecting both the combined portfolios
of the two firms and methodology changes. We have added targets for shipping, and iron and steel based on
the materiality of these sectors in our combined financing portfolio and have dropped sectors that are not
material.
– We have made progress towards the alignment of our sustainable investing products standards across the firm
and will benchmark Credit Suisse’s products against these standards. We expect to incorporate products that
meet our standards across our platforms in 2024.
– We have integrated our performance evaluation and compensation structures, including our fair pay practice.
We are also aligning social plans or severance payments at UBS and Credit Suisse in the respective country to
ensure that all employees are treated equally.
We still have significant milestones to deliver in 2024 and beyond. We firmly believe, however, that our activities
are already strengthening our creation of long-term value for our shareholders, clients and other stakeholders. As
we progress with the integration, we aim to leverage the most effective ideas and capabilities of both organizations
as we strive to build a highly dependable and trustworthy firm globally.
We strongly believe that institutions are defined by their culture and, with our “three keys to success”, we have an
established concept for advancing the culture across our combined organization. Our culture is decisive in achieving
our ambitions, and client centricity, accountability with integrity, collaboration, and risk management are all areas
where our combined strengths can make the biggest difference and as such, are a key priority.
We continued to make good progress on the execution of our Group-wide sustainability and impact strategy in
2023, as outlined in this Sustainability Report. While market volatility and rising geopolitical tensions over the course
of 2023 proved challenging, flows into sustainable funds and ETFs remained positive. Sustainable investing also
gained ground in alternative markets, including real estate and hedge funds. Against this backdrop, we saw
sustainable assets under management increase. Overall, our efforts across sustainability and culture have been
reflected in solid results in key environmental, social, governance (ESG) ratings.

Sustainability Report 2023 | Introduction 3

Trends
Policymakers and regulators increasingly require corporations to embed ESG considerations within their own
operations and value chains, and to disclose them. One example of this is the CSRD, which came into effect in
2023 and will require compliant reporting within annual financial reporting for the first wave of in-scope entities
for fiscal year 2024, with reporting in 2025. While we welcome this move toward greater transparency and
reliability of information, we continue to seek greater alignment across existing and emerging disclosure
requirements in order to enable greater comparability.
While climate continues to dominate the sustainable finance landscape, there has been a notable shift in emphasis.
After two years of formulating and refining net-zero commitments across industries, the ongoing progress in
methodologies, data and transition finance frameworks has allowed discussions to shift toward the quality and
ambition level of net-zero targets. Transition has become more widely recognized as a requisite path. As our clients
look to a shift in their business models to prepare for the future, the fast pace of technological innovation, along
with high inflation and input costs, are key considerations as they develop their transition strategies.
Emerging trends which have all gained momentum in 2023 include nature, impact transparency and blended
finance. The most advanced of these is nature where there has been a growing awareness of the impact of society
on the world’s biodiversity and natural capital. New frameworks are being rolled out to enhance transparency,
including the release of the recommendations of the Taskforce on Nature-related Financial Disclosures (the TNFD).
This will improve the availability of good, economy-wide nature and biodiversity data, contributing toward greater
transparency and providing an important tool for investors and companies alike.
Turning to impact, the increasing disclosure requirements and growing demand for transparency from clients are
encouraging the development of new measurement methodologies. In the last year, we have also seen
governments and development finance institutions launch blended finance initiatives, using capital from public or
philanthropic sources to increase private sector investment in sustainable development. In the past decade, such
initiatives have mobilized over USD 200 billion in capital toward sustainable development in developing countries
and we see significant opportunity for this to grow further.

Our commitment
By 2050, our ambition is to achieve net-zero greenhouse gas emissions across our scope 1 and 2, and specified scope
3 activities. We recognize there is more to do and aim to phase in additional scope 3 activities over time. It is, however,
important to note that the decarbonization of the global economy, emissions reductions by clients, and the realization
of our own targets and ambitions all depend on a variety of factors, some of which are beyond our direct influence.
The decarbonization of the global economy will require governments, regulators, all industries and consumers to
move in the same direction. Clear guidance by governments through thoughtful regulations, policies and incentives,
including mechanisms to factor in the price of carbon, as well as the development and scaling of key technologies
and broader changes in the behavior of our society, will be critical.
Our ambition to be a global leader in sustainability remains unchanged. We are committed to supporting our clients
in the transition to a low-carbon world, leading by example in our own operations, and sharing our lessons learned
along the way with the rest of the world. We hope you will join us on the journey.

Colm Kelleher Sergio P. Ermotti

Chairman of the Board of Directors Group Chief Executive Officer

UBS was among the 43 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 2023 | Introduction 4

About this report
Overview
The reporting period for this UBS Group Sustainability Report, which also covers Credit Suisse, is 1 January to 31
December 2023, which is aligned with the financial reporting period of UBS Group AG. All 2023 data included in
the report is therefore for this period. Historical data (for e.g., 2022 and 2021) pertains to Pre-acquisition UBS,
unless otherwise stated. For UBS’s own environmental footprint, the reporting period has changed from July to
June (as applied in the UBS Sustainability Report 2022) to January to December (for this report) to align with the
UBS financial reporting year. 2022 data is restated in the relevant tables. Data showing progress against our
decarbonization sectorial targets, including net-zero ones, pertains to 31 December 2022 (due to the unavailability
of relevant 2023 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, UBS AG and Credit Suisse AG.
› Refer to “Note 29 Interests in subsidiaries and other entities” in the UBS Group AG Annual Report 2023 for
supplementary information regarding certain significant subsidiaries

This report comprises the “non-financial” disclosures required for UBS Group AG, and its subsidiaries, including
UBS AG and Credit Suisse AG, under the Swiss Code of Obligations Art. 964b. It also comprises disclosures required
for UBS AG by the German law implementing EU directive 2014/95 (CSR-Richtlinie-Umsetzungsgesetz / CSR-RUG)
(nichtfinanzieller Konzernbericht) (the EU Non-Financial Reporting Directive). A table at the end of this report
(Appendix 4) provides the references to such non-financial information. This report also contains information on
UBS AG and UBS Europe SE pursuant to Art. 8 of the EU Taxonomy Regulation (Appendix 4).
UBS is in the process of implementing a combined and aligned sustainability-and-climate-risk dataset across UBS
Group and including Credit Suisse AG. For this reason, UBS will publish UBS Group and Credit Suisse AG
sustainability and climate risk metrics required pursuant to FINMA Circular 2016/1 "Disclosure – banks", Annex 5,
in a supplement to the UBS Group Annual Report and the UBS Group Sustainability Report in line with the
publication timeline for the semi-annual Pillar 3 disclosures in the third quarter of 2024. The current inventory of
quantitative sustainability and climate risk metrics, including exposure to carbon-related assets, climate-sensitive
sectors and nature-related risks for UBS AG, is disclosed in this report.
Additional information pertaining to the content of this report is provided in a supplementary document. All
climate- and nature-related information contained in this report and in the supplementary document is also made
available through a separate UBS Group Climate and Nature Report 2023. The latter report follows the structure
recommended by the Task Force on Climate-related Financial Disclosures (the TCFD)1 and also leverages the
framework of the Taskforce on Nature-related Financial Disclosures.
› 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 both UBS AG and Credit Suisse AG 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”

Our Sustainability Accounting Standards Board (SASB) index and our Principles for Responsible Banking (PRB)
reporting and self-assessment are available at ubs.com/sustainability-reporting.
› Refer to “Key terms and definitions” in the appendices to 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 of the former
direct and indirect subsidiaries of Credit Suisse Group AG. UBS Group AG is a holding company and conducts
substantially all of its operations through UBS AG and Credit Suisse AG, and subsidiaries thereof. UBS aims to
substantially complete the integration of Credit Suisse into UBS by the end of 2026. As part of the integration of
Credit Suisse, UBS plans to simplify the legal structure, including the merger of UBS AG and Credit Suisse AG
planned for 2024.

1 In June 2023, the International Sustainability Standards Board (the ISSB) finalized its first set of requirements for corporate disclosures regarding sustainability
matters: IFRS S1 and IFRS S2. The standards incorporate the recommendations of the Task Force on Climate-related Financial Disclosures (the TCFD).

Sustainability Report 2023 | Introduction 5

In compliance with applicable regulatory requirements, information on Credit Suisse AG has been included in the
UBS Group Sustainability Report 2023.
› Refer to “Appendix 3 – Entity-specific disclosures for Credit Suisse AG” in the appendices to this report for more
information about Credit Suisse AG disclosures.

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 Credit Suisse AG (sub-)consolidated Other

participations
UBS AG Credit Suisse AG
100% 100% 98% UBS Business
Solutions AG
UBS UBS Americas UBS Asset Other non-US Credit Suisse Credit Suisse Credit Suisse
UBS Europe SE
Switzerland AG Holding LLC Management AG subsidiaries¹ (Schweiz) AG Holdings (USA), Inc. International² Credit Suisse
Services AG5
100%
Other
subsidiaries
UBS Americas Inc.

100%

UBS Business UBS Financial Other US

UBS Bank USA UBS Securities LLC ³
Solutions US LLC Services Inc. subsidiaries 4

1 Other non-US subsidiaries are generally held either directly by UBS AG or indirectly through UBS Switzerland AG or UBS Asset Management AG. 2 Of which 98% held by Credit Suisse 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 generally held either directly by UBS Americas Inc. or indirectly through
UBS Financial Services Inc. 5 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 “Acquisition and integration
of Credit Suisse” section of the UBS Group AG Annual Report 2023 for more information

Assurance
This report has been reviewed by Ernst & Young Ltd (EY). The content has been prepared in accordance with the
Global Reporting Initiative (GRI) Standards. We use the GRI as the basis for this report and apply a careful process
weighing up the materiality and relevance of the information reported and the expectations of our stakeholders.
We also apply our firm’s information policy and disclosure principles. The GRI content index, supplementary
information, and EY’s assurance report can be downloaded from ubs.com/sustainability-report. Selected metrics in
this report have been subject to reasonable or limited assurance by EY. A list of these metrics and level of assurance
can be found in the assurance report.
› Refer to “Appendix 4 – Other supplemental information” in the appendices to this report for the assurance report
› Refer to the Supplement to this report available at ubs.com/sustainability-reporting, for more information on the
metrics definitions, approaches and scope (Basis of Reporting)

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 net-zero 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- and
nature-related risks); 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.
28 March 2024
UBS Group AG

Contacts
Our Sustainability Chief Financial Officer (the sCFO) and our Corporate Responsibility (CR) teams manage UBS’s
sustainability disclosures. Information to stakeholders about the content of this report is provided by the CR team,
part of the UBS Group Chief Sustainability Office (CSO).
[email protected]

Sustainability Report 2023 | Introduction 6

 Terms used in this report, unless the context requires otherwise Description

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

“UBS Group excluding the Credit Suisse AG sub-group” All UBS Group entities, excluding the Credit Suisse AG sub-group

"UBS Group excluding Credit Suisse” 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” and “UBS AG consolidated“, “UBS AG sub-group“ UBS AG and its consolidated subsidiaries

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

“Credit Suisse AG”, “Credit Suisse AG consolidated” and “Credit Credit Suisse AG and its consolidated subsidiaries
Suisse AG sub-group”

“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, its consolidated subsidiaries, 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” and “Credit Suisse Group AG standalone” 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

“UBS Americas Holding LCC” UBS Americas Holding LLC and its consolidated subsidiaries

“Pre-acquisition Global Wealth Management” The UBS Global Wealth Management business division before the acquisition
of the Credit Suisse Group (data, if any, from before the date of the
acquisition of the Credit Suisse Group)

“UBS AG Global Wealth Management” The Global Wealth Management business division of UBS AG and its
consolidated subsidiaries

“Wealth Management (Credit Suisse)” The Wealth Management business division of Credit Suisse AG and its
consolidated subsidiaries

“Pre-acquisition Personal & Corporate Banking” The Personal & Corporate Banking business division before the acquisition of
the Credit Suisse Group (data, if any, from before the date of the acquisition
of the Credit Suisse Group)

“UBS AG Personal & Corporate Banking” The Personal & Corporate Banking business division of UBS AG and its
consolidated subsidiaries

“Swiss Bank (Credit Suisse)” The Swiss Bank business division of Credit Suisse AG and its consolidated
subsidiaries

“Pre-acquisition Asset Management” The Asset Management business division before the acquisition of the Credit
Suisse Group (data, if any, from before the date of the acquisition of the
Credit Suisse Group)

“UBS AG Asset Management” The Asset Management business division of UBS AG and its consolidated
subsidiaries

“Asset Management (Credit Suisse)” The Asset Management business division of Credit Suisse and its consolidated
subsidiaries

“Pre-acquisition Investment Bank” The Investment Bank business division before the acquisition of the Credit
Suisse Group (data, if any, from before the date of the acquisition of the
Credit Suisse Group)

UBS AG Investment Bank The Investment Banking business division of UBS AG and its consolidated
subsidiaries

Investment Bank (Credit Suisse) The Investment Bank business division of Credit Suisse AG and its
consolidated subsidiaries

“Non-core and Legacy” The Non-core and Legacy Portfolio

Sustainability Report 2023 | Introduction 7

Banking on sustainability
Our commitment
We want to be the financial provider of choice for clients who wish to mobilize capital toward the achievement of
the 17 United Nations Sustainable Development Goals (the SDGs) and the orderly transition to a low-carbon
economy. We are supporting our clients in the transition to a low-carbon economy, leading by example in our own
operations, and sharing our lessons learned along the way with the rest of the world. By 2050, our ambition is to
achieve net-zero greenhouse gas (GHG) emissions across our scope 1 and 2, and specified scope 3 activities.

Continued ambition to be a global leader in sustainability

The acquisition of the Credit Suisse Group enlarged our exposure to sustainability matters, as reflected in the
increased qualitative and quantitative content we are disclosing in this Sustainability Report. Since the acquisition,
we have been working to progressively align governance, policies, methodologies and frameworks. We expect to
complete this work during 2024. Our ongoing alignment includes making UBS sustainable product standards the
benchmark, with Credit Suisse’s sustainable financing and investment products undergoing a detailed assessment
to ensure compliance with our standards, frameworks and expectations. Our revised sustainability and climate risk
policy framework and associated processes reflect the full suite of activities of the combined organization and
ensure a consistent approach.

Our priorities
Planet People Partnerships
Making climate a clear priority as we shift Addressing societal challenges through client Working with other thought leaders to achieve
toward a low-carbon economy and corporate philanthropy, as well as impact on a truly global scale.
employee engagement.

Our achievements in 2023

Serving clients’ sustainable finance needs Transitioning to a low-carbon economy
– USD 292.3 billion of sustainability focus and impact investments (UBS – Made progress toward our ambition of achieving net-zero GHG
AG) (10% increase) emissions by 2050 across our scope 1 and 2, and specified scope 3
– USD 11.2 billion clients' impact investing assets (UBS AG Global Wealth activities and undertook an extensive review of the decarbonization
Management) targets of the UBS Group, as part of the integration of Credit Suisse
– 1,611 ESG resolutions voted upon (UBS AG Asset Management) – Established decarbonization targets to address the emissions of our in-
– 46.5% sustainable investments share of assets under custody reached scope lending activities for specified sectors and made progress toward
(UBS AG Personal & Corporate Banking) them
– 102 green, social, sustainability or sustainability-linked bond deals – Analyzed the facilitated emissions from capital markets activities for
facilitated1 select carbon-intensive sectors
– Decreased carbon-related assets proportion of total customer lending
Among the leaders in key sustainability ratings exposure to 7.2% in 2023 from 7.5% in 2022 (UBS Group excluding
Credit Suisse)
– Dow Jones Sustainability Index member (S&P Global)
– Share of climate-sensitive sectors at 12.1% (transition risk) and 9.7%
– A– rating and included in Leadership band (CDP)
(physical risk) of our total customer lending exposure (UBS Group
– AA rating (MSCI ESG)
excluding Credit Suisse)
– Medium risk rating (Sustainalytics)
– Exposure to nature-sensitive sectors at 15.1% of our total customer
lending exposure (UBS Group excluding Credit Suisse)
Addressing societal challenges – 57.3% positive progress against climate corporate engagement
– USD 328 million in donations raised by the UBS Optimus network of objectives
foundations – 157 companies at which we voted upon climate-related resolutions
– 7 million beneficiaries reached across our social impact activities (UBS – Reduced net GHG footprint for scope 1 and 2 emissions by 21%
AG) – 65% of our GHG key vendors declared their emissions on CDP and also
set 2050-aligned net-zero goals

Shaping a high-performing organization

– 29.5% of all Director level staff and above are women
– 24.3% of UK / 25.1% of US staff at Director level and above are held by
employees from ethnic minorities
– EQUAL-SALARY Foundation certification for equal pay practices in
Switzerland, the US, the UK, the Hong Kong SAR and Singapore (UBS
Group excluding Credit Suisse)

1 Investment Bank figure is 102 of which UBS AG figure is 93 and Credit Suisse figure is 16. The metrics include transactions such as, but not limited to,
Investment Bank Global Banking bonds issued under the voluntary ICMA Green Bond Principles, Sustainability Bond Principles, and Sustainability-Linked Bond
Principles. The principles include a recommendation that the issuer appoints an external review provider to undertake an independent external review (e.g.,
second-party opinion). This is consistent with market practice. The metrics also include sustainability-themed bonds (e.g., Transition). Transactions are counted
only once, there is no double counting (e.g., if and where UBS AG and Credit Suisse were involved in the same transaction). UBS has performed an assessment
for Credit Suisse green, social, sustainability and sustainability-linked bonds reported in this report and deemed them to be aligned to UBS sustainable bond
guidelines.

Sustainability Report 2023 | Introduction 8

Our integration journey – at a glance
Following the acquisition of Credit Suisse Group AG by UBS Group AG on 12 June 2023, we implemented integration
measures across our sustainability and culture activities. We have set out key measures in the table below.

Strategy Sustainability and impact strategy applies Group-wide

– The sustainability and impact strategy of Pre-acquisition UBS applies to UBS Group, including Credit Suisse. While certain
sustainability-related policies, processes and activities continued at Credit Suisse AG, they are applied within the overarching strategy
of UBS Group.

Governance Senior level governance spans the entire Group

– The responsibility for sustainability of UBS Group AG’s Board of Directors (the BoD) spans the entire Group, including Credit Suisse
AG. The five committees that support the BoD each have specific ESG (environmental, social, governance)-related responsibilities, with
the Corporate Culture and Responsibility Committee (the CCRC) having primary responsibility for overseeing our Group-wide
sustainability and impact strategy.
– The Group CEO has delegated responsibility for setting the sustainability and impact strategy and developing Group-wide
sustainability and impact objectives, in agreement with fellow GEB members, to the Group Executive Board (GEB) Lead for
Sustainability and Impact. The GEB Lead for Sustainability and Impact manages the UBS Group Sustainability and Impact (GSI)
organization and, together with the Chief Sustainability Officer (the CSO), co-chairs the Group-wide Sustainability and Climate Task
Force (the SCTF).
– In 2023, alignment with the Group’s strategies, objectives and guidelines was ensured by UBS personnel being represented on the
governance bodies of Credit Suisse. The overarching governance of sustainability at Credit Suisse AG was integrated into UBS Group
and certain CS governance bodies were retired. In 2024, we aim to complete the integration of Credit Suisse sustainability governance
bodies into the UBS Group sustainability governance.

Environment Group-wide ambition to achieve net-zero greenhouse gas emissions across our scope 1 and 2, and specified scope 3
activities, by 2050
Financing:
– In 2023, we revised our decarbonization targets to reflect the combined lending portfolios and resulting exposures to carbon-intensive
sectors.
– In 2023, we calculated the emissions metrics shown for 31 December 2021 and 31 December 2022 on the basis of the joint loan
books of UBS AG and Credit Suisse AG on those dates, on a pro forma basis.
Investing:
– In 2023, we undertook an extensive review of our approaches to setting decarbonization targets, to reflect the activities of the
combined organization and evolving standards and methodologies.
– In 2023, UBS AG Asset Management made progress toward delivering its 2030 target of aiming to align 20% of UBS AG Asset
Management’s total assets under management (AuM) with net zero, using science-based portfolio alignment approaches. This Pre-
acquisition UBS aspiration will be reassessed in 2024.
Own operations:
– For 2023, we disclosed the environmental footprint of the joint operations of UBS Group, including Credit Suisse, unless otherwise
stated.
– We integrated the greenhouse gas (GHG) emissions calculations for the combined firm, with a new joint base year set to
2019.
– We integrated Credit Suisse energy consumption in UBS’s 15% reduction target by 2025.
– For UBS Group excluding Credit Suisse, we continued to apply an internal carbon price of USD 400 per metric ton for scope
1 and 2 emissions in our capital investment business cases in order to incentivize carbon reductions.
Supply chain:
– In 2023, we revised and updated the list of GHG key vendors (defined by us as those vendors that collectively account for more than
50% of our estimated vendor GHG emissions) from 83 to 95 to include Credit Suisse vendors.
– In 2024 and 2025, our requirements to reduce the environmental impact of vendors that provide services from offshore development
centers (ODCs), as currently applied to UBS ODC vendors, will be rolled out to Credit Suisse ODC vendors.
Social Building a unified culture
Workforce
– In 2023, we achieved the implementation of a combined and fully integrated performance management approach for all employees,
including Credit Suisse.
– In 2023, we fully integrated former Credit Suisse Group employees into our fair pay practices and continued to monitor and improve
our pay equity position in our leading countries.
– For 2023, we are reporting consolidated workforce figures, unless otherwise stated.
– In 2023, we continued with our DE&I aspirations (for the combined organization) and retired the Credit Suisse DE&I aspirations.
Responsible supply chain:
– In 2023, we established a combined spend and vendor inventory for UBS AG and Credit Suisse AG. In 2024, the UBS Responsible
Supply Chain Management framework will be rolled out to Credit Suisse AG (which, in 2023, continued to apply its Third-Party Risk
Management due diligence approach.

Sustainability Report 2023 | Introduction 9

Supporting Leveraging the power of the combined firm for the benefit of clients
opportunities – In 2023, we made UBS sustainable product standards the benchmark going forward, with Credit Suisse AG’s sustainable financing
and investment products undergoing a detailed assessment to ensure compliance with our standards, frameworks and expectations.
In 2024, we intend to fully incorporate Credit Suisse data into our sustainable finance and investing disclosures.
– For 2023, we reported sustainable investments (SI) for UBS AG. Credit Suisse AG sustainable investing products and associated
invested assets continued to be classified under the Credit Suisse AG Sustainable Investing Framework (SIF) and reported separately.
All Credit Suisse AG green, social, sustainability and sustainability-linked bonds reported were aligned to UBS guidelines.
– In 2023, the Investment Bank, operating under a single consolidated governance at end-of-year, has combined sustainability
expertise from Credit Suisse AG to strengthen UBS Group’s offering across Global Markets, Global Banking and Research. New
sustainable finance content, products and other services taken over from Credit Suisse AG follow UBS Group standards and approval
process. The Credit Suisse Sustainable Activities Framework, as well as its related external USD 300 billion sustainable finance
commitment, was retired.
– In 2023, Credit Suisse (Schweiz) AG continued to offer its sustainable products to its clients. The development of new products was
paused, in light of our review and vetting of the sustainable products of Credit Suisse (Schweiz) AG against the UBS sustainable
product frameworks.
– In 2024 and 2025, we will bring selected Credit Suisse sustainable and impact investing solutions onto the merged Global Wealth
Management platform. These solutions will be subject to existing UBS Global Wealth Management sustainable investing frameworks,
diligence, and instrument selection approaches. During the migration of solutions, clients, and assets, we will phase down dual
governance, with the aim of aligning under the existing UBS Global Wealth Management sustainable investing governance.
– In 2024, the UBS AG Asset Management SI product classification framework will be applied to the Credit Suisse AG Asset
Management products when onboarded to the UBS shelf. A joint governance forum is in place to support the alignment of policies,
methodologies and frameworks.
Managing Combined sustainability and climate risk appetite
risks – In 2023, we revised our sustainability and climate risk policy framework and associated processes across UBS Group to reflect the full
suite of activities of the combined business and ensure a consistent approach. We enhanced these by adding Credit Suisse standards
relevant to the combined bank, for shipping, project finance, and mining.
– In 2023, Credit Suisse AG’s sector-specific client energy transition framework (CETF) underpinned its climate risk management, until
its decommissioning at end of year. A Group-wide approach is being developed by the combined firm to assess clients’ energy
transition readiness.
– For 2023, we disclosed climate risk metrics for UBS AG, with Credit Suisse AG climate risk metrics to be published in 2024 when
aligned data is fully available. In 2024, we will also progressively align Credit Suisse AG’s approach to the assessment of climate risk
materiality and its risk reporting cycles and metrics with those of UBS AG, in parallel with the integration of underlying processes and
controls.

Sustainability Report 2023 | Introduction 10

Our business model
UBS – who we are
UBS is a leading and truly global wealth manager, enhanced by synergetic investment banking and asset
management capabilities, and the leading bank in Switzerland. We enable people, institutions and corporations to
achieve their goals by providing financial advice and solutions. We have a unique capital-generative and well-
diversified business model with a strong competitive position in our target markets and an attractive long-term
outlook on return on capital. Our business model, our strong culture, our respected brand with over 160 years of
history and our capital prudence have made it possible to both grow profits and deliver high return on equity.

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, as well as 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 will give us the capacity to invest strategically and will enable us to deliver against our financial
targets and commercial ambitions, which are outlined in the “Targets, capital guidance and ambitions” section of
the UBS Group Annual Report.
We benefit from an attractive business mix, with more than one-third of our risk-weighted assets (RWA) in our
global asset-gathering Global Wealth Management and Asset Management business divisions, which are
structurally attractive from the risk, growth and capital consumption perspectives and generate more than half of
our revenues. Roughly another third of our RWA are in Personal & Corporate Banking in Switzerland, an attractive,
stable and well-diversified economy with low historic credit losses. Furthermore, we operate a capital-efficient
Investment Bank business division, which is limited to less than 25% of Group RWA (excluding Non-core and
Legacy).
Moreover, we are aiming 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 should support our financial and commercial targets.

The acquisition of the Credit Suisse Group is accelerating our strategy

The acquisition of the Credit Suisse Group enhances our client franchises by increasing scale while adding
complementary capabilities and gaining talent. Our strategic focus remains on building out our leading global
investment platform. The acquisition of the Credit Suisse Group enables us to combine and optimize our resources
and to target investments that enable us to provide superior levels of client service. Our geographical growth
segments will remain the Americas and Asia Pacific, with Switzerland remaining our home market. The acquisition
of the Credit Suisse Group will further shift our business mix toward wealth management, asset management and
our Swiss business. The acquisition also strengthens our investment banking capabilities, without compromising
our model, as the Investment Bank will consume a limited share of the Group’s RWA.

We have a global, diversified business model

Our invested assets of more than USD 5trn are regionally diversified across the globe. We give our clients access to
a broader, more 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 are a reflection of the
outlook on long-term demographic and social trends affecting wealth distribution, product demand and client
experience.
Regionally, more than half of our wealth management clients’ invested assets are in the US, which is the largest
wealth pool globally, with solid wealth generation. Here we are a top player, and we are focused on improving
scale and profitability by deepening our relationships with core clients and by building out our digital-supported
capabilities and banking platform.
In Asia Pacific, which is the fastest-growing wealth market, we are by far the largest wealth manager1, and we are
building on that scale to drive growth. We are further developing our businesses in China and working to offer our
capabilities in a more cohesive way to our clients in Southeast Asia.

1 Asian Private Banker, 23 January 2024.

Sustainability Report 2023 | Introduction 11

In EMEA, we are focused on improving profitability and driving focused growth by optimizing our domestic
footprint and providing holistic coverage 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, improving the client experience and focusing on capturing selected
growth opportunities.

Our growth plans are underpinned by cross-divisional collaboration

We want to serve our clients as one firm. The collaboration between our business divisions is critical to the success
of our strategy and is a source of competitive advantage. This collaboration also provides further revenue growth
potential and enables us to better meet client needs in our core wealth and global family and institutional wealth
(GFIW) segments alike. Our Asset Management business division provides clients with a broad offering and exclusive
access to premium personalized services, while our investment banking capabilities support our growth plans across
the client franchise with unique insights, execution, and risk management. Close collaboration between our
businesses adds value for clients, including access to private markets, alternatives and ESG products, and we are
continuously striving to enhance our holistic client offering.

Clients are at the center of everything we do

Helping clients to achieve their financial and personal goals is the essence of what we do. We aim to differentiate
our service by delivering a client experience that is personalized, relevant, on-time and seamless. This is our promise
to clients.
With evolving client needs, we are adapting by making our wealth coverage more needs-based, digital and
effective. In wealth management, our focus remains on our core wealth and GFIW clients, while expanding our
coverage of entrepreneurs, women and the next generation of wealthy individuals. We are launching and scaling
digitally customizable services, enhancing personally advised wealth with digital support, and expanding our custom
offerings for GFIW to cater for the different needs of our clients.

We are investing in our technology as an enabler for client experience, simplicity and efficiency
The trusted and personal relationship with our clients across our businesses is evolving. Today, our clients expect us
to provide our services more seamlessly across the firm in a personalized, relevant and timely fashion, with
increasing demand for services that are digital first and available anytime and anywhere. This presents an
opportunity for us to fully embrace technology, through which we aim to differentiate the firm.
We continue to invest in technology, such as Artificial Intelligence, with the goals of improving efficiency and
effectiveness, driving and enhancing growth and better serving our clients. We believe the continued optimization
of our processes, our platforms, our organization and our capital resources will help us to achieve this.

Sustainability Report 2023 | Introduction 12

Sustainability drives our ambitions
We partner with our clients to help them mobilize their capital toward a more sustainable world. Our aim is to meet
clients’ demands for credible sustainable offerings. We want to be the financial provider of choice for clients that
wish to mobilize capital toward the achievement of the United Nations Sustainable Development Goals and the
orderly transition to a low-carbon economy, including in Switzerland, where, as the leading bank, we are helping
to finance this transition.

Our ESG policies and guidelines support the implementation of our sustainability and culture agenda
Our Code of Conduct and Ethics (the Code) sets out the principles and commitments that define our ethical
standards and the way we do business. It outlines UBS’s aspiration to create a fairer, more prosperous society,
champion a healthier environment and address inequalities. It also contains our commitment to fulfil compliance
obligations. We are committed to obeying the laws, rules and regulations of the areas where we live, work and do
business. The Code covers our dealings with clients, counterparties, shareholders, regulators, business partners and
colleagues. It is the basis for our policies, guidelines and procedures, including on environmental, social and
governance (ESG) matters.
› Refer to the “Key policies and principles ” section of the Supplement to the UBS Group Sustainability Report 2023,
available at ubs.com/sustainability-reporting for the summary of our related key policies and principles

Key regulatory and market developments impact our approach to sustainability

During 2023, the regulatory and policy agenda on sustainability and climate continued to evolve, as regulators and
supervisors increasingly required ESG considerations to be embedded across own operations and value chains.
Expanding reporting and disclosure requirements and risk management expectations, a growing focus on broader
sustainability issues including nature, and social impact are all contributing to increased pressure on firms.
Meanwhile, a regulatory focus on the prevention of greenwashing is fueling initiatives on taxonomies, product
labels, ESG data and ratings, and corporate sustainability due diligence.
A number of important developments relating to corporate sustainability disclosure and reporting standards took
place during 2023, including the swift adoption by companies globally of the recommendations of the Task Force
on Climate-related Financial Disclosures (the TCFD) in their annual reporting. Elsewhere, we saw finalization of the
Corporate Sustainability Reporting Directive (the CSRD) in the European Union, and issuance of the International
Sustainability Standards Board’s (the ISSB) inaugural standards. These efforts are expected to contribute to greater
harmonization of sustainability reporting standards globally, thereby helping to mitigate greenwashing concerns
and improve the quality of sustainability data.
Alongside a continued focus on climate matters in corporate disclosures and regulatory frameworks, there is an
increasing recognition of the degree to which the world’s biodiversity and natural capital are being damaged. This
is a growing concern, as many business sectors rely on natural resources to operate effectively and efficiently;
eroding those resources could have profound implications, both for the global economy and wider society. New
frameworks have been rolled out to enhance transparency in this area, notably by the Taskforce on Nature-related
Financial Disclosures (the TNFD) in September 2023. The publication of the TNFD guidelines and their adoption may
well lead regulators to ask businesses to take into consideration more effectively the impact of their activities on
nature. We expect that, over time, this will also drive further client interest in natural capital and biodiversity topics
and corresponding products and solutions.
Finally, after two years of formulating and refining net-zero commitments, 2023 saw a strong focus on
implementation. With ongoing progress in methodologies, data and transition finance frameworks, the emphasis
of industry discussions is shifting toward the quality and ambition level of net-zero targets. For many of our clients
meanwhile, developing the right transition strategies, given the fast pace of technological innovation, along with
high inflation and input costs, is a key consideration. Voluntary carbon markets will likely play an important part in
the world’s transition to low-carbon economies, but they continued to suffer from relatively depressed prices in
2023. Nonetheless, market and policy standards aiming to safeguard against known market weaknesses continued
to evolve.
› Refer to ubs.com/code for the full UBS Code of Conduct and Ethics
› Refer to “Our strategy, business model and environment” in the UBS Group Annual Report 2023

Sustainability Report 2023 | Introduction 13

Strategy
Our sustainability and impact strategy
What sustainability means to us
We all have a role to play in securing a more sustainable world, and the financial industry is no exception. At UBS,
we reimagine the power of people and capital to create a better world for everyone, striving toward a fairer society,
a more prosperous economy and a healthier environment. That is why we partner with our clients to help them
mobilize their capital toward a more sustainable world and it is why we have made sustainability a significant part
of our culture.

Group-wide application of sustainability and impact strategy

The sustainability and impact strategy of Pre-acquisition UBS now applies to UBS Group. Credit Suisse AG does not
maintain a separate sustainability strategy, but its activities are integrated within the strategy of UBS Group. While
certain sustainability-related policies, processes and activities continued at Credit Suisse AG, they are applied within
the overarching strategy of UBS Group which is focused on three key priorities to achieve it: Planet, People and
Partnerships.
› Refer to “UBS Sustainability objectives and achievements 2023 and objectives 2024 ” section in the Supplement to
the UBS Group Sustainability Report 2023, available at ubs.com/sustainability-reporting for more information
about our sustainability and impact key mid- and long-term aspirations.

Supporting our clients’ low-carbon transition

Helping our clients to navigate the orderly transition to a low-carbon economy and build climate-resilient business
models is a key objective of our approach to climate, as is the mobilization of private and institutional capital toward
this transition. Aligning our in-scope lending and investment portfolios to the objectives of the Paris Agreement is
an important part of this approach and so are the products and services we offer.

Planet first
We acknowledge that achieving the orderly transition to a low-carbon economy is highly ambitious. Nonetheless,
we are committed to doing our part, which is why the shift to a lower-carbon future is a priority for UBS and a key
focus of our sustainability strategy.
In order to protect our clients’ assets and those of our firm from the impacts of climate change and loss of
biodiversity, we are focused on managing the risks related to climate and natural capital. However, at the same
time, we recognize that the low-carbon transition also presents consequential opportunities.
› Refer to the “Environment” section of this report for more information about our approach to climate
› Refer to the UBS Group Climate and Nature Report 2023, available at ubs.com/sustainability-reporting which brings
together all climate- and nature-related information in this report

People matter
As a large, diverse and inclusive organization with a global presence, we want to use our influence to help people
advance. We do this through our interactions with each other, the communities in which we operate and our other
stakeholders. We also believe this approach can support the creation of a diverse, equitable and inclusive society
and help build a virtuous cycle of viable, long-term economic and social development.
› Refer to the “Social” section of this report for more information about UBS’s employees and its philanthropic
activities

Partnerships bring it together

The sustainability-related challenges our world faces cannot be solved by one organization alone. That is why we
partner with other thought leaders and standard setters to unite around common goals that can drive change on
a global scale.
› Refer to the Supplement to this report available at ubs.com/sustainability-reporting for more about our
partnerships and our stakeholder engagement

Sustainability Report 2023 | Strategy 14

Our 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 or targets and reporting on the progress made against them.
Following the acquisition of the Credit Suisse Group, our exposure increased accordingly, so we reviewed our
aspirations. Amendments that arose from this review process were considered by the Group Executive Board and
the UBS Group Board of Directors' Corporate Culture and Responsibility Committee. This table reflects the overall
outcomes of this process with more detailed information provided throughout this report.

Our priorities Our aspirations or targets Our progress in 2023

Planet, people, Sustainable investments.1 Increased invested assets in sustainable investments in UBS AG to
partnerships USD 292.3 billion (compared with USD 266 billion in 2022).
Planet Following the acquisition of the Credit Suisse Group, we Calculated progress against pathways for revised targets.4
refined the UBS Group lending sector decarbonization targets Changes in emissions intensity associated with UBS in-scope lending
to reflect the activities of the combined organization and (end of 2022 vs. 2021 baseline):
evolving standards and methodologies:2
– Swiss residential real estate reduced by 6%;
Reduce emissions intensity associated with UBS in-scope – Swiss commercial real estate increased by 2%;
lending by 2030 from 2021 levels for: – power generation reduced by 13%;
– Swiss residential real estate by 45%; – iron and steel reduced by 4%; and
– Swiss commercial real estate by 48%; – cement reduced by 1%.
– power generation by 60%;
– iron and steel by 27%; and Changes in absolute financed emissions associated with UBS in-scope
– cement by 24%. lending (end of 2022 vs. 2021 baseline) for:
– fossil fuels reduced by 29%.
Reduce absolute financed emissions associated with UBS in-
scope lending by 2030 from 2021 levels for: In-scope ship finance portfolio remains below the existing International
– fossil fuels by 70%. Maritime Organization (IMO 50) decarbonization trajectory.

Continue disclosing in-scope ship finance portfolios

according to the Poseidon Principles decarbonization
trajectories with the aim of aligning therewith.3

Aim, by 2030, to align 20% of UBS AG Asset Management’s Aligned 2.9% of UBS AG Asset Management’s total AuM with net zero.
total assets under management (AuM) with net zero. This
Pre-acquisition UBS aspiration will be reassessed in 2024.5

Minimize our scope 1 and 2 emissions through energy Reduced net GHG footprint for scope 1 and 2 emissions by 21% and
efficiencies and switching to more sustainable energy energy consumption by 8% (compared with 2022); continued replacing
sources. After which, procuring credible carbon removal fossil fuel heating systems and monitored delivery of contracted carbon
credits to neutralize any residual emissions down to zero by removal credits; achieved 96% renewable electricity coverage in line
2025.6 with RE100 despite challenging market conditions.

Offset historical emissions back to the year 2000 by sourcing Continued to follow up on credit delivery and retirement of sourced
carbon offsets (by year-end 2021) and by offsetting credit portfolio.
delivery and full retirement in registry (by year-end 2025).
The scope is UBS Group excluding Credit Suisse.

Engage with our greenhouse gas (GHG) key vendors, for We invited the vendors that accounted for 67% of our annual vendor
100% of them to declare their emissions and set net zero- spend to disclose their environmental performance through CDP’s
aligned goals by 2026, and reduce their scope 1 and 2 Supply Chain Program, with 70% of the invited vendors completing
emissions in line with net-zero trajectories by 2035.7 their disclosures in the CDP platform.
65% of GHG key vendors (defined as those vendors that collectively
account for more than 50% of our estimated vendor GHG emissions)
have declared their emissions on CDP and set net-zero-aligned goals.

People By 2025, 30% of worldwide roles at Director level and above Increased to 29.5% (2022: 27.8%) of worldwide roles at Director level
(aspirations) held by women. and above held by women.
By 2025, 26% of US roles at Director level and above held Increased to 25.1% (2022: 20.5%) of US roles at Director level and
by employees from ethnic minority backgrounds. above held by employees from ethnic minority backgrounds.
By 2025, 26% of UK roles at Director level and above held Increased to 24.3% (2022: 23.4%) of UK roles at Director level and
by employees from ethnic minority backgrounds. above held by employees from ethnic minority backgrounds.
By 2025, 4% of UK roles at Director level and above held by Stable at 2.1% (2022: 2.2%).
black employees.
By 2025, 25% of Americas financial advisor / client advisor Increased to 16.8% (2022: 16.6%).
roles held by women (UBS Group excluding Credit Suisse).
By 2025, 18.8% of US financial advisor / client advisor roles Decreased to 12.2% (2022: 12.4%).
held by employees from racial / ethnic minority backgrounds
(UBS Group excluding Credit Suisse).
Raise USD 1 billion in donations to our client philanthropy Achieved a UBS Optimus network of foundations donation volume of
foundations and funds and reach 26.5 million beneficiaries USD 328 million in 2023, totaling USD 763.9 million since 2021 (both
by 2025 (cumulative for 2021–2025). figures include UBS matching contributions).8

Sustainability Report 2023 | Strategy 15

 Our priorities Our aspirations or targets Our progress in 2023

Reached 7 million beneficiaries in 2023 and 18.5 million beneficiaries

across our social impact activities since 2021.
Partnerships Continue to position UBS as a leading facilitator of Delivered a variety of insights, including through interviews with subject-
discussion, debate and idea generation. matter experts, individual research reports and comprehensive white
papers, via the UBS Sustainability and Impact Institute, including key
publications The Rise of the Impact Economy and Rethink, rebuild,
reimagine.
Co-organized, with the Institute of International Finance, the second
Wolfsberg Forum for Sustainable Finance.
Drive standards, research and development, and product Co-led financial-sector-specific working group of the Taskforce on
development. Nature-related Financial Disclosures (the TNFD) and supported the
launch of the TNFD framework.
Co-chaired the UNEP FI Principles for Responsible Banking Nature
working group that developed initial guidance on nature target setting
for financial institutions.
1 As part of the integration of Credit Suisse, UBS has retired the Pre-acquisition UBS sustainable investing aspiration of USD 400 billion in SI invested assets. 2
While we continue to take steps to align our business activities to our targets, it is important to note that progress towards our targets may not be linear and
that the realization of our own targets and aspirations is dependent on various factors which are outside of our direct influence. We will continue to adjust our
approach in line with external developments and evolving best practices for the financial sector and climate science. Refer to the Supplement to the UBS Group
Sustainability Report 2023 for 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, fair value loans and guarantees as well as irrevocable loan commitments. Exclusions from the scope of analysis primarily
include financial services, credit card and other exposure to private individuals. 3 As part of our ship finance strategy, ships in scope of Poseidon Principles
(PP) are assessed on criteria which aim at aligning portfolios to the PP 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 (compared with 2008 levels). 4 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 up to nine months to collect disclosed data and make it available to data users. Consequently, the baselines for
our decarbonization targets are calculated on year-end 2021 lending exposure and 2020 emissions data. Our 2022 emissions actuals are based on year-end
2022 lending exposure and 2021 emissions data. For asset financing (e.g., real estate, shipping) there is no time lag, and exposure and emissions actuals refer
to the same year. 5 The 20% alignment goal amounted to USD 235 billion at the time of Pre-acquisition Asset Management’s commitment in 2021. By 2030,
the weighted average carbon intensity of funds is to be 50% below the carbon intensity of the respective 2019 benchmark. 6 Scope 2 emissions are market-
based emissions. The remaining scope 1 and 2 emissions may be in excess of the approximately 5–10% residuals required for net zero (per the definition of a
“net-zero target” by the ESRS E1 Climate Change per delegated act, adopted on 31 July 2023), which is our ambition for 2050. In 2024, we will be reviewing
our 2025 scope 1 and 2 target for achievability for the combined organization and alignment with latest guidance. 7 In 2024, we may review our targets for
GHG key vendors for the combined organization and alignment with latest guidance. Our GHG key vendors are those vendors that collectively account for
more than 50% of our estimated vendor GHG emissions. 8 Figures provided for the UBS Optimus network of foundations are based on unaudited management
accounts and information available as of January 2024. Audited financial statements for UBS Optimus network of foundations entities are produced and
available per local market regulatory guideline.

Cautionary note: We have developed methodologies that we use to set our climate-related targets and identify climate-related risks and which 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.

Sustainability Report 2023 | Strategy 16

Governance
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. These principles are laid down in our Code of Conduct and Ethics (the Code).
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)

Chief Risk Officer Sustainability Chief Chief Sustainability Head of Social Impact Credit Suisse
for Sustainability Financial Officer Officer and Philanthropy sustainability governance

Sustainability and Climate Task Force

Sustainability and Climate Implementation Group

Global Wealth Personal & Asset Investment Non-Core &

Group Functions
Management Corporate Banking Management Bank Legacy

› Refer to “Appendix 3 – Entity-specific disclosures for Credit Suisse AG” in the appendices to this report for more
details on how Credit Suisse sustainability governance was integrated into UBS Group

Board of Directors and Group Executive Board

The Board of Directors of UBS Group AG (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.
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 matters. For example, the Compensation
Committee is responsible for ESG-related compensation topics, the Risk Committee supervises the integration of
ESG in risk management, the Governance and Nominating Committee supports the Board in establishing best
practices in corporate governance and the Audit Committee has oversight of the control framework underpinning
ESG metrics.

Sustainability Report 2023 | Governance 17

The BoD’s Corporate Culture and Responsibility Committee (the CCRC) is the body primarily
responsible for corporate culture, responsibility, and sustainability.
The CCRC oversees our Group-wide sustainability and impact strategy and key activities across environmental and
social topics. This includes climate, nature, and human rights. Annually, it considers and approves our firm’s
sustainability (including climate) and impact objectives. As part of this process, it also considers the impact and
financial materiality of climate-related risks and opportunities on UBS’s business and strategy.
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 to 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
Group Executive Board (the GEB) and the BoD. The CCRC is also responsible for conducting the annual review
process for 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.
› Refer to ubs.com/code for the full UBS Code of Conduct and Ethics

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. The Group CEO has
delegated responsibility for setting the sustainability and impact strategy and developing Group-wide sustainability
and impact objectives, in agreement with fellow GEB members, to the GEB Lead for Sustainability and Impact.
Progress against the strategy and associated targets are reviewed at least once a year by the GEB and the CCRC.
The GEB Lead for Sustainability and Impact also manages the Group Sustainability and Impact (GSI) organization
and, together with the Chief Sustainability Officer (the CSO), co-chairs the Sustainability and Climate Task Force
(the SCTF). Both the GEB Lead for Sustainability and Impact and the CSO attend the CCRC meetings.
› Refer to the “Supplement to Governance“ section of the Supplement to the UBS Group Sustainability Report 2023,
available at ubs.com/sustainability-reporting, for an explanation and depiction of the sustainability governance at
UBS Group AG, including the main bodies involved in this governance

Integration of Credit Suisse

The BoD is responsible for sustainability across the Group, including Credit Suisse. Until its acquisition by UBS Group
in June 2023, Credit Suisse Group AG had an established sustainability governance system. It was exercised at its
Board of Directors, Executive Board, and senior management levels, thus integrating sustainability into line
processes and structures, as well as through boards and committees specifically focused on sustainability topics.
With the integration of Credit Suisse into UBS Group in 2023, this governance was adapted for Credit Suisse and
integrated into UBS Group, which included the successive retirement of certain CS governance bodies.
In 2023, alignment with the Group’s strategies, objectives and guidelines has been ensured through representation
of UBS personnel in the governance bodies of Credit Suisse. The governance of sustainability at Credit Suisse AG is
exercised through its established governance bodies, thus integrating sustainability into operational processes and
structures, as well as through those boards and committees specifically focused on sustainability topics. Certain
Credit Suisse sustainability governance bodies have already been retired in 2023 and it is our aim to achieve full
integration of the relevant bodies, together with their associated procedures and policies, into the overall UBS
Group sustainability governance during 2024.
› Refer to “Appendix 3 – Entity-specific disclosures for Credit Suisse AG” in the appendices to this report for an
explanation and depiction of the sustainability governance (including the main bodies involved) at Credit Suisse AG

Sustainability Report 2023 | Governance 18

Group Sustainability and Impact
GSI (Group Sustainability and Impact) comprises the Chief Sustainability Office and the Social Impact Office, headed
by the CSO and the Head of Social Impact respectively.
The CSO is responsible for driving implementation of the following: the Group-wide sustainability and impact
strategy, the approach to climate across all in-scope activities, and the ESG data strategy. In addition, the CSO has
responsibility for supporting the business divisions and Group Functions in the design of sustainability frameworks,
the implementation of sustainability regulations and the development of education and awareness programs in
relation to sustainability. Furthermore, the CSO also manages external relationships, industry advocacy and the
annual sustainability disclosure.
The Head of Social Impact is responsible for driving and implementing the Social Impact strategy, including
Community Impact, Philanthropy Services and UBS Global Visionaries. Reporting to the Head of Social Impact, the
regional Heads of Social Impact and Philanthropy are responsible for extending the reach and maximizing the
effectiveness of our social impact activities locally, nationally and globally. In addition, they have responsibility for
all our programs’ operations and risk management, client engagement, and employee volunteering.
Progress made in implementing Group-wide sustainability and impact objectives is reported as part of UBS’s annual
sustainability disclosure. This reporting is reviewed and assured externally according to the requirements of the
Sustainability Reporting Standards of the Global Reporting Initiative (the GRI Standards). UBS Group excluding
Credit Suisse is also certified under the ISO 14001 standard for its products, services and activities in all business
divisions and locations. To this degree, UBS seeks to continuously improve environmental and sustainability
performance, as well as pollution prevention, where possible, across UBS. The GSI governance and framework
document complements the Code, and together they govern UBS’s Environmental Management System, according
to ISO 14001.
› Refer to the “Supplement to Governance” section of the Supplement to the UBS Group Sustainability Report 2023,
available at ubs.com/sustainability-reporting, for additional information about our sustainability governance

Sustainability and climate risk

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 for Sustainability supports the
GEB by providing leadership on sustainability in collaboration with business divisions and Group Functions. Our
Sustainability and Climate Risk Policy Framework is applied Group-wide to relevant activities, including client and
supplier relationships.

Sustainability Chief Financial Officer

The Sustainability Chief Financial Officer (the sCFO) supports the new and expanding requirements that are being
driven by our global sustainability agenda. Reporting to the Group Chief Financial Officer (the GCFO) and the GEB
Lead for Sustainability and Impact, the sCFO also works closely with the Group Controller and the Chief Accounting
Officer’s team and is the primary lead on sustainability topics for the GCFO. The sCFO ensures that sustainability
considerations are embedded into our financial decision-making processes and supports the expanding external
sustainability disclosures arising from both new regulatory requirements and the voluntary commitments made by
our firm. In addition, the sCFO ensures the continued development of the financial control environment that
underpins our disclosures.

Sustainability and Climate Task Force

The SCTF is the cross-divisional and cross-functional authority for sustainability and climate governance, as well as
the Group’s sustainability and climate governance body. Its role includes agreeing on the actions required to achieve
UBS’s sustainability and impact strategy, monitoring progress against that strategy and providing assurances to the
GEB that UBS is managing sustainability and climate risks and opportunities in an appropriate manner.
The SCTF relies on the Sustainability and Climate Implementation Group to ensure cross-divisional, cross-functional
and cross-regional (if needed) alignment of sustainability and climate activities. It oversees the following cross-
divisional and cross-functional workstreams: Net Zero, Corporate Disclosures and Reporting, Regulatory and
Market, Financial Risk Management, Non-Financial Risk, Investment Product Regulations, Commercial
Opportunities, Data and Methodology, and Educate workstreams.

Sustainability Report 2023 | Governance 19

Key topics and working groups
Net-zero workstream
Our approach to climate 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. As part of this, it is our ambition to achieve net-zero greenhouse gas (GHG) emissions across our
scope 1 and 2, and specified scope 3 activities by 2050. The net-zero workstream coordinates the implementation
and execution of this ambition, in line with UBS’s fiduciary responsibilities. It is one of the workstreams reporting
into the SCTF and includes members from the business divisions and Group Functions.
Own operations: in-house environmental management
Our in-house environmental management is steered by Group Corporate Services (GCS). Reporting to the Group
Head Human Resources and Corporate Services, GCS is responsible for driving the reduction in the environmental
impact arising from our offices, technology and supply chain. GCS implements the sustainability and impact strategy
within UBS’s operations by ensuring compliance with local legislation, monitoring and measuring environmental
and energy performance, and making continuous improvements in accordance with ISO 14001, the international
environmental management standard, and ISO 50001 (EMEA region).
Nature
Our approach to nature and the environment is part of the group-wide sustainability and impact strategy overseen
by the CCRC. The GEB is responsible for driving our nature-related efforts, as part of the measures to achieve our
sustainability and impact strategy. The business divisions and Group Functions ensure that UBS’s nature-related
strategy and risk management frameworks are implemented. Through strategy management reports, GSI
periodically updates the GEB and CCRC on our approach to nature. On an annual basis, the CCRC receives
dedicated updates on nature and biodiversity, including the progress of the Taskforce on Nature-related Financial
Disclosures (the TNFD) and UBS’s own activities relating to the TNFD, as well as updates on the evolving frameworks
and regulations, and potential nature-related risks and opportunities facing the firm.
› Refer to the “Appendix 2 – Environment” in the appendices to this report for more information on our approach to
nature

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 ubs.com/sustainability-reporting for our Human Rights Statement

Financial crime prevention

The GEB oversees our efforts to combat money laundering, corruption and terrorist financing. A dedicated financial
crime team of anti-money laundering compliance experts leads these efforts.
› Refer to “Appendix 1 – Governance” in the appendices to this report for more information on financial crime
prevention

People and culture

Our GEB and CCRC oversee our approach to corporate culture overall, as well as to culture integration. The GEB
also oversees our approach to diversity, equity and inclusion (DE&I). Our global head of DE&I drives a Group-wide
strategy, complemented by divisional and regional initiatives.
› Refer to the “Social” section of this report for more information

Sustainability Report 2023 | Governance 20

Environment
Contributing to a low-carbon economy
Following the acquisition of the Credit Suisse Group, we have conducted an extensive review of the decarbonization
targets to reflect the activities of the combined organization and evolving standards and methodologies. Based on
this review, we have undertaken revisions to the decarbonization targets and also explicitly described in-scope
activities where we have detailed plans, supported by short- and medium-term targets.
By 2050, our ambition is to achieve net-zero greenhouse gas (GHG) emissions across our scope 1 and 2, and
specified scope 3 activities. Our current targets include:
Scope 1 and 2:
– minimizing our scope 1 and 2 emissions through energy efficiencies and by switching to more sustainable energy
sources; after which, procuring credible carbon removal credits to neutralize any residual emissions down to zero
by 20251;
Scope 3:
– engaging with our GHG key vendors, for 100% of them to declare their emissions and set net zero-aligned goals
by 2026, and reduce their scope 1 and 2 emissions in line with net-zero trajectories by 20352;
– addressing our financed emissions by aligning specified sectors to decarbonization pathways; and
– aiming, by 2030, to align 20% of UBS AG Asset Management’s total assets under management (AuM) with net
zero.3
We recognize that there is more to do, and we aim to phase in additional scope 3 activities over time. While we
continue to take steps to align our business activities with the ambition set out above, it is important to note that
progress towards our targets may not be linear. Our priority is to support the transition of clients to a low-carbon
economy, and their transition-financing needs. In the area of client investments, the scope of our investments that
are subject to net-zero targets and our ability to meet our ambitions depend on our fiduciary duties as an investment
manager and on the terms of the mandates agreed to with clients.
Reaching net zero will require collaboration across the private and public sectors. Decarbonization of the global
economy, emissions reductions by clients, and the realization of our own targets and ambitions all depend on
various factors outside of 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.
We actively participate in political discussions to share our expertise on proposed regulatory and supervisory changes
and engage in discussions relating to sustainability and climate (e.g., via the International Institute of Finance (the
IIF), the Association for Financial Markets in Europe (the AFME) and the Swiss Bankers Association (the SBA)). In
addition, our participation in sustainability- and climate-focused organizations and associations helps us to deliver
on our commitments whilst promoting the transition to a low-carbon economy.
We will continue to adjust our approach in line with external developments and evolving best practices for the
financial sector and climate science. This may also lead us to revisit previously agreed voluntary commitments.

1 Scope 2 emissions are market-based emissions. The remaining scope 1 and 2 emissions may be in excess of the approximately 5-10% residuals required for net
zero (per the definition of a “net-zero target” by the ESRS E1 Climate Change per delegated act, adopted on 31 July 2023), which is our ambition for 2050. In
2024, we will be reviewing our 2025 scope 1 and 2 target for achievability for the combined organization and alignment with latest guidance.
2 In 2024, we may review our targets for GHG key vendors for the combined organization and alignment with latest guidance. Our GHG key vendors are those
vendors that collectively account for more than 50% of our estimated vendor GHG emissions.
3 This Pre-acquisition UBS aspiration will be reassessed in 2024.

Sustainability Report 2023 | Environment 21

Own operations
In 2023, we reduced our scope 1 and market-based scope 2 emissions by 21% and, for UBS Group excluding Credit
Suisse, we continued to apply an internal carbon price of USD 400 per metric ton for scope 1 and 2 emissions in
our capital investment business cases to support the transition away from carbon-intense building systems. In
addition, we were able to achieve 96% renewable electricity in line with the stringent RE1004 guidelines.
› Refer to “Use of carbon offsets and carbon removal credits” in the “Environment” section of this report for more
information about our internal carbon price

With regards to our supply chain, we have continued a process of engagement with our vendors, asking them to
provide their climate disclosures and set net zero-aligned goals. The number of our vendors completing their climate
disclosures in CDP increased by 74% from 2022 to 2023. Meanwhile, 65% of our GHG key vendors (which we
define as those vendors that collectively account for more than 50% of our estimated vendor GHG emissions) have
declared their emissions in CDP and set net zero-aligned goals.

Financing activities
We evaluated the combined lending portfolios and resulting exposures to carbon-intensive sectors following the
acquisition of the Credit Suisse Group in June 2023 and have set revised decarbonization targets for the Group.
We have updated our previous emissions targets for real estate mortgage lending, as well as for the fossil fuels (oil,
gas and coal), power generation and cement sectors, reflecting both the combined portfolios of the two firms and
the methodology changes. We also identified iron and steel and shipping as additional target sectors. For the Credit
Suisse AG in-scope shipping portfolio, we continue to disclose the portfolio’s climate alignment to the Poseidon
Principles decarbonization index. In addition, we undertook further assessment of the overall emissions associated
with our lending and real estate mortgages and conducted a preliminary analysis of the facilitated emissions from
our capital markets activities for select carbon-intensive sectors.

Investing activities
UBS AG Asset Management made progress during 2023 toward delivering its 2030 target of aiming to align 20%
of UBS AG Asset Management’s total assets under management (AuM) with net zero, using science-based portfolio
alignment approaches. This included implementing revisions to fund documentation and investment management
agreements in certain portfolios to align with our net-zero-aligned framework. This Pre-acquisition UBS aspiration
will be reassessed in 2024.
Our Global Wealth Management business division is a large distributor and manager of investment solutions for
clients, including sustainable investing solutions and climate-focused investments. We supported private investors
and family offices seeking to decarbonize their overall holdings by offering related investment solutions across asset
classes and increasing climate awareness through dedicated client education sessions.

Supporting climate-focused frameworks

We are committed to helping our clients achieve their decarbonization goals and to supporting the work of
governments around the world in their transition to a low-carbon economy in alignment with the objectives of the
Paris Agreement. In our home country of Switzerland, we support the new Climate and Innovation Act, passed in
June 2023, through regulatory engagement, industry partnerships and collaboration.
› Refer to the “Environment” section of the Supplement to the UBS Group Sustainability Report 2023, available at
ubs.com/sustainability-reporting, for more information about our climate-related methodologies and targets
› Refer to the “Our transition plan” section in “Appendix 2 – Environment” in the appendices to this report for a
high-level overview of our activities to support our own transition and that of our clients

4 RE100 is an international guideline on renewable electricity procurement that outlines the approach for credible claims and frameworks, including specific
market boundaries and the standard of third-party verification amongst other requirements. RE100 is considered a revised interpretation of the GHG Protocol
Corporate Standard market-based scope 2 accounting standards.

Sustainability Report 2023 | Environment 22

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

Founding member of the Net Zero

Asset Managers (the NZAM) initiative 2020

Commitment to net zero by 2050 and founding

member of the Net-Zero Banking Alliance
(the NZBA) and the Glasgow Financial Alliance
2021
for Net Zero (GFANZ)

Advisory vote on the climate roadmap passed by

shareholders at the Annual General Meeting
2022

– Minimize our scope 1 and 2 emissions through

Addressing our own emissions by 2025 energy efficiencies and by switching to more
sustainable energy sources. After which, procure
credible carbon removal credits to neutralize any
residual emissions down to zero by 2025¹
– Reduce our own energy consumption by 15%
from 2019 levels
– Offset historical emissions from own
operations back to 2000²

Addressing the emissions of our in-scope – Reduce emissions intensity associated with UBS
lending and investing activities
by 2030 in-scope lending from 2021 levels for:³
– 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 to:³
– fossil fuels by 70%
– Continue disclosing in-scope ship finance
portfolios according to the Poseidon Principles
(PP) decarbonization trajectories with the aim of
aligning therewith4
– Align 20% of UBS AG Asset Management's total
AuM with net zero5
Addressing our supply chain by 2035
– Engage with our GHG key vendors, for 100%
of them to reduce their scope 1 and 2 emissions
in line with net-zero trajectories6
Net-zero GHG emissions across our scope
1 and 2, and specified scope 3 activities by 2050

1 Scope 2 emissions are market-based emissions. The remaining scope 1 and 2 emissions may be in excess of the approximately 5-10% residuals required for net zero (per
the definition of a “net-zero target” by the ESRS E1 Climate Change per delegated act, adopted on 31 July 2023), which is our ambition for 2050. In 2024, we will be
reviewing our 2025 scope 1 and 2 target for achievability for the combined organization and alignment with latest guidance. 2 Target applies to UBS Group excluding
Credit Suisse. 3 While we continue to take steps to align our business activities to our targets, it is important to note that progress towards our targets may not be
linear and that the realization of our own targets and ambitions is dependent on various factors which are outside of our direct influence. We will continue to adjust our
approach in line with external developments, as well as evolving best practices for the financial sector and climate science. Refer to the “Climate-related methodologies
– net-zero approach for our financing activities“ section of the Supplement to the UBS Group Sustainability Report 2023, 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, fair value loans and guarantees as well as irrevocable loan commitments. Exclusions from scope of analysis primarily comprise financial services
firms and other exposure to private individuals. 4 As part of our ship finance strategy, ships in scope of Poseidon Principles are assessed on criteria which aim at
aligning portfolios 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 (against 2008 levels). 5 This Pre-acquisition UBS aspiration will be
reassessed in 2024. In line with the Net Zero Asset Managers initiative, we acknowledge that the scope for asset managers to invest for net zero depends on the
mandates agreed with clients and clients’ and managers’ regulatory environments. Also in the expectation that governments will follow through on their own
commitments to ensure the objectives of the Paris Agreement are met, including increasing the ambition of their Nationally Determined Contributions, and in
the context of investing, our legal duties to clients and unless otherwise prohibited by applicable law. In some asset classes or for some investment strategies,
agreed net-zero methodologies do not yet exist. Where our ability to align our approach to investments with the goal of net zero emissions by 2050 is, today,
constrained, we commit to embark with determination and ambition on a journey, and to challenge and seek to overcome the constraints we face. 6 In 2024,
we may review our target for GHG key vendors for the combined organization and alignment with latest guidance. Our GHG key vendors are those vendors
that collectively account for more than 50% of our estimated vendor GHG emissions.

Sustainability Report 2023 | Environment 23

Our climate-related metrics
Evolving our climate-related metrics
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. We have developed methodologies that we use to
set our climate-related targets and identify climate-related risks and opportunities. These methodologies underlie the
metrics that are disclosed in this report and 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 possibly substantial revisions to
our disclosed metrics methodologies and related disclosures. They may also change the metrics we disclose.
Our climate-related targets have been set based on the methodologies, data and assumptions currently in use.
Changes to these methodologies, data and assumptions may affect our progress toward these targets and our net-
zero ambition, as well as their achievability. Our net-zero ambition and related targets for scope 3 emissions have
a critical dependency on the overall progress made by all sectors and countries toward net-zero carbon emissions.
Across many jurisdictions, substantial governmental action will be required to achieve that progress. If such
advances are not made, our targets and ambitions with respect to scope 3 emissions will not be achievable.
Climate-related risks and opportunities metrics 2023
Climate-related risks and opportunities metrics
% change
For the year ended
from
31.12.23 31.12.22 31.12.21 31.12.22
Risks (UBS Group excluding Credit Suisse)
Carbon-related assets (USD billion)1, 2, 3, 4, 5 34.2 33.6 36.0 1.7
Exposure to climate-sensitive sectors, transition risk (USD billion)1, 2, 4, 5, 6 58.1 52.5 52.4 10.6
Exposure to climate-sensitive sectors, physical risk (USD billion)1, 2, 4, 5, 6 46.2 38.0 36.7 21.4
Exposure to nature-related risks (USD billion)1, 4, 5, 6, 7 72.0 64.6 67.3 11.4
Opportunities (UBS Group)
Number of green, sustainability, and sustainability-linked bond deals8 93 69 98 34.8
Total deal value of green, sustainability, and sustainability-linked bond deals (USD billion)8 49.3 42.4 63.3 16.3
UBS-apportioned deal value of above (USD billion) 11.6 8.8 13.2 31.6
1 Methodologies for assessing climate- and nature-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 are calculated and restated based
on the 2023 methodology, across three years of reporting, 2021–2023. 3 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, as well as 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. 4 Total customer lending exposure consists of total loans and
advances to customers and guarantees, as well as irrevocable loan commitments (within the scope of expected credit loss) and is based on consolidated and standalone IFRS numbers.
The credit exposure includes portfolio adjustment bookings, which are either directly impacting the metrics, and have been reflected in the heatmaps, or are impact assessed and
immaterial to the metrics representation. 5 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. 6 Climate- and nature-related risks are scored between 0 and 1, based on sustainability
and climate risk transmission channels, as outlined in the Supplement to the UBS Group Sustainability Report 2023. Risk ratings represent a range of scores across five-rating categories:
low, moderately low, moderate, moderately high, and high. The climate- or nature-sensitive exposure metrics are determined based upon the top three of the five rated categories:
moderate to high. 7 Nature-related risk metric methodology has been further strategically enhanced, as part of an ongoing collaboration between UBS and UNEP-FI. 8 The metrics
include transactions such as, but not limited to, Investment Bank Global Banking bonds issued under the voluntary ICMA Green Bond Principles, Sustainability Bond Principles, and
Sustainability-Linked Bond Principles. The principles include a recommendation that the issuer appoints an external review provider to undertake an independent external review (e.g.,
second-party opinion). This is consistent with market practice. The metrics also include sustainability themed bonds (e.g., Transition). Transactions are counted only once, there is no
double counting (e.g., if and where UBS AG and Credit Suisse were involved in the same transaction). UBS performed an assessment for Credit Suisse green, social, sustainability and
sustainability-linked bonds reported in the 2023 Sustainability Report and deemed them to be aligned to UBS sustainable bond guidelines.
› Refer to the “Supporting our approach to climate – our climate-related materiality assessment” section of the
Supplement to the UBS Group Sustainability Report 2023, available at ubs.com/sustainability-reporting, for more
information about our approach to climate-related risks and opportunities
› Refer to the “Managing sustainability and climate risks” section of this report for more details on climate-related
risk metrics

Climate-related lending metrics 2023

Based on the guidelines by the World Resources Institute (the WRI) and the World Business Council for Sustainable
Development (the WBCSD) for reporting in the event of a material acquisition5, the emissions metrics shown for 31
December 2021 and 31 December 2022 are calculated on the basis of the joint loan books of UBS and Credit Suisse
on those dates, on a pro forma basis. As in previous Sustainability Reports, climate-related lending metrics are not
shown for the current reporting year, due to the inherent time-lag in the availability of emissions data.
Based on an assessment of qualitative and quantitative criteria such as alignment with industry guidance, availability
and quality of data and consistency across sectors in existing targets disclosed by Pre-acquisition UBS and Credit
Suisse Group, 2021 has been adopted as the baseline year for all sectors.
› Refer to the “Climate-related methodologies – decarbonization approach for our financing activities” section of the
Supplement to the UBS Group Sustainability Report 2023, available at ubs.com/sustainability-reporting, for more
information about our climate-related methodologies
5 GHG Protocol Corporate Value chain (Scope 3) Accounting and Reporting Standard

Sustainability Report 2023 | Environment 24

Climate-related lending metrics (UBS Group)
% change
For the year ended
from
31.12.22 31.12.21 31.12.21
Lending1 Baseline 2021
Swiss residential real estate (scopes 1 and 2 kg CO2e / m2 ERA)2 36.5 38.7 (6)
Swiss commercial real estate (scopes 1 and 2 kg CO2e / m2 ERA)2 32.1 31.3 2
Fossil fuels (oil, gas and coal; scopes 1, 2 and 3 million metric t CO2e) 45.9 64.7 (29)
Power generation (scope 1 kg CO2e / MWh) 297 339 (13)
Iron and steel (scopes 1 and 2 metric t CO2 / metric t of steel) 1.68 1.75 (4)
Cement (scopes 1 and 2 metric t CO2 / metric t of cementitious) 0.63 0.64 (1)
1 Based on gross exposure, which includes total loans and advances to customers, fair value loans and guarantees as well as irrevocable loan commitments. Refer to the “Basis of
Reporting” section of the Supplement to the UBS Group Sustainability Report 2023, available at ubs.com/sustainability-reporting for more information about our climate-related
methodologies. 2 ERA: Energy Reference Area.

Credit Suisse AG completed its Poseidon Principles disclosure for 2023, as disclosed in the following table.
Climate-related lending metrics – Poseidon Principles (Credit Suisse AG consolidated)
% change
For the year ended
from
31.12.22 31.12.21 31.12.21
Poseidon Principles disclosure
Shipping (delta alignment to Poseidon Principles “IMO 50” trajectory)1 -4.6% -1.3% n/a
Shipping (delta alignment to “IMO 2023 minimum trajectory”)2 11.5% n/a n/a
Shipping (delta alignment to “IMO 2023 striving for trajectory”)2 15.7% n/a n/a
1 Poseidon Principles “IMO 50” trajectory is not 1.5°C aligned. 2 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; 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
accounting for the impact of methane (CH4) and nitrous oxide (N2O). The updated IMO trajectories are not 1.5°C aligned.

Climate-related investing metrics 2023

Metrics relating to net-zero investments, portfolio emissions, and voting apply to UBS AG Asset Management only.
Climate-related investing metrics (UBS AG)
For the year ended
31.12.23 31.12.22 31.12.21
Opportunities – net-zero investing
Number of net-zero ambition portfolios 35
Net-zero ambition assets share of total assets under management (%) 2.9
Portfolio emissions
UBS AG Asset Management investment-associated emissions (absolute; in t CO2e)1 46,266,089
UBS AG Asset Management investment-associated carbon intensity (in t CO2e per USD million invested)1 62.0
Weighted average carbon intensity – by asset class1, 2
Weighted average carbon intensity – active equity assets (t CO2e per USD million of revenue) 105.6 130.4 109.8
% AuM weighted average carbon intensity below benchmark (active equity)3 81.3 75.7 62.4
Weighted average carbon intensity – active fixed income assets (t CO2e per USD million of revenue) 114.9 145.3 198
% AuM weighted average carbon intensity below benchmark (active fixed income)3 65.0 63.5 76.3
Weighted average carbon intensity – indexed equity assets (t CO2e per USD million of revenue) 100.7 128.3 128.9
Weighted average carbon intensity – indexed fixed income assets (t CO2e per USD million of revenue) 127.9 139.8 169.8
Weighted average carbon intensity – direct real estate (kg CO2e per square meter)4, 5 26.89 31.5
Carbon footprint - by asset class1, 2
Carbon footprint – active equity assets (t CO2e per USD million invested) 44.1
% AuM weighted average carbon intensity below benchmark (active equity) 79.1
Carbon footprint – active fixed income assets (t CO2e per USD million invested) 45.5
% AuM weighted average carbon intensity below benchmark (active fixed income) 20.6
Carbon footprint – indexed equity assets (t CO2e per USD million invested) 45.9
Carbon footprint – indexed fixed income assets (t CO2e per USD million invested) 108.3
Stewardship – voting6
Number of climate-related resolutions voted upon 157 160.0 89.0
Proportion of supported climate-related resolutions (%) 69.4 71.2 78.6
1 Based on data for scope 1 and 2 GHG emissions of investee companies from a third-party data provider. 2 Carbon intensity and carbon footprint of an asset class are the aggregates
of the individual portfolios weighted by portfolio size. Portfolios and benchmarks measures are the aggregates of individual issuers weighted by share of portfolio or benchmark. Data
coverage thresholds are applied in determining which portfolios are included. 3 The disclosure for % AuM weighted average carbon intensity below benchmark (active equity) and
(active fixed income) have been updated for 31.12.21 to be reflected in percentages of 62.4% and 76.3% instead of the decimals previously presented. 4 Data is collected from direct
real estate assets for discretionary funds and mandates that participate in the Global Real Estate Sustainability Benchmark. The numbers used represent either reported data grossed up
to 100% (where area coverage, ownership days or occupancy is less than 100% and greater or equal to 50%) or an estimate based on proxy where area coverage, ownership days or
occupancy is less than 50%. The data includes Scopes 1,2 and if available scope 3 GHG emissions with one-year time lag. 5 Due to the lag in the availability of emissions data, our
disclosure is reported on a one year lag (please refer to the Basis of Reporting section of the Supplement to the UBS Group Sustainability Report 2023, available at ubs.com/sustainability-
reporting for further details). In the 2022 Sustainability Report, the number calculated in 2022 was incorrectly reported as 2022 and t CO2e, when the underlying data was related to
2021 and kg CO2e. The 31.12.21 comparative number has now been updated reflecting methodology changes and increased data availability since the previous reporting period. 6
Data for 2021 excludes proposals related to Japanese companies that included changes to companies’ articles of association. Data includes proposals by both management and
shareholders and reflects common market definition of climate-related proposals.

Sustainability Report 2023 | Environment 25

Climate-related own operations metrics 2023
Climate-related own operations metrics (UBS Group)
% change
For the year ended
from
31.12.23 31.12.22 31.12.21 31.12.22
Own operations
Net GHG footprint (1,000 metric tons CO2e)1 169 169 133 (0)
Change from baseline 2019 (%) (53) (53) (63) 0
Share of renewable electricity (%) 96 91 92 5
1 Net GHG footprint equals gross GHG emissions minus GHG reductions from renewable electricity (gross GHG emissions include: direct GHG emissions by UBS Group; indirect GHG
emissions associated with the generation of imported / purchased electricity (grid average emission factor), heat or steam; and other indirect; GHG emissions associated with business
travel, paper and water consumption, energy related activities and waste disposal). Refer to the “Environment” section of the Supplement to the UBS Group Sustainability Report 2023,
available at ubs.com/sustainability-reporting, for a breakdown of our GHG emissions (scopes 1, 2 and 3).

Our approach to nature

We recognize the challenges of transitioning toward a society that can meet human needs while respecting the
limits of our planet’s natural resources. These challenges are reflected in stark numbers: for example, the World
Economic Forum estimates that approximately USD 58 trillion of economic value depends on the natural world in
some way, yet, according to a recent United Nations Environment Programme report, annual financial flows to
nature-based solutions need to more than double by 2025 (from USD 200 billion to USD 436 billion) and nearly
triple to USD 542 billion by 2030 to reach climate, biodiversity and land degradation targets6. However, challenges
can represent opportunities. That is why we look forward to the setting of global policy objectives and goals through
the Convention on Biological Diversity and welcome the milestone set of policy goals adopted by governments in
the shape of the Kunming–Montreal Global Biodiversity Framework. This is a key enabler for setting critical direction
for economy-wide transitions aimed at safeguarding global biodiversity. We firmly believe that public policy and
frameworks have, and will continue, to play a critical role in steering and incentivizing markets to support the
transition toward a sustainable economy.
Our approach to understanding impacts and dependencies related to natural capital and biodiversity, and managing
the resulting risks and opportunities across our activities, reflects our commitment to mobilize capital toward
achieving the SDGs. Nonetheless, we are aware that natural capital is inherently more challenging to define in
financial terms due to a lack of easily available data and standardized methodologies. Therefore, we strive to play
an active role in creating new global standards that can help clients, companies and the financial sector manage
nature-related risks and develop opportunities, while also addressing potential adverse impacts and generating
positive impacts. That is why we were honored to be part of the efforts of the Taskforce on Nature-related Financial
Disclosures (the TNFD), including leading its financial sector working group, and contributing to the development
of the recommendations it released in September 2023.
Building on our first integrated UBS Group Climate and Nature Report for 2022, we developed our activities and
disclosures for 2023 by leveraging the recommendations set by the TNFD. We will continue to develop our
disclosures on nature dependencies, impacts, risks and opportunities over the next few years, aligned with the TNFD
recommendations and regulatory requirements.
During the course of 2023, we also contributed to the debate and improvement of knowledge and innovation in
this area through our thought leadership activities and capacity building exercises. For instance, we ran a Nature
Academy to train key staff about nature-related issues, frameworks, standards, risks and opportunities.
› Refer to the “Managing sustainability and climate risks” section of this report and the “Our approach to nature”
section in “Appendix 2 – Environment” in the appendices to this report for more information about our
management of nature-related risks and opportunities
› Refer to our UBS Group Climate and Nature Report 2023, available at ubs.com/sustainability-reporting

6 Source : UN Environment Programme, State of Finance for Nature 2023

Sustainability Report 2023 | Environment 26

Supporting our clients’ low-carbon transition
Helping our clients to navigate the orderly transition to a low-carbon economy and build climate-resilient business
models is a key objective of our approach to climate, as is the mobilization of private and institutional capital toward
this transition. Aligning our in-scope lending and investment portfolios to the objectives of the Paris Agreement is
an important part of this approach and so are the products and services we offer. Specifically, these include:

Offering sustainable finance products and services

By offering innovative sustainable financing, investment and capital markets solutions, we strive to provide clients
with the choices they need to meet their specific sustainability objectives while supporting their transition to a low
carbon economy. We are developing innovative advisory, lending, basic banking and transition financing solutions,
as well as offering our clients access to various sustainable investment (SI) solutions. By combining targeted advice
with our research, thematic insights, and data and analytics services, we aim to help clients better understand and
mitigate risks and identify new opportunities. Further, we provide support in the form of tools, platforms and
education.
› Refer to the “Supporting opportunities” section of this report for more information about our sustainable finance
product and service offering and an overview of key developments in 2023

Engaging with our investees and clients

Through collaboration and engagement with industry, investees and our clients, we help clients access best
practices, robust science-based approaches, standardized methodologies and quality data that help them to better
measure and mitigate climate risks and act on climate-related opportunities. Our aim is to better understand where
we should focus our engagement efforts to best support our investees and clients, which is why, as a first step, it
is important that we assess where investees and corporate clients are on their low-carbon journey. To do this, we
are developing a framework that considers existing categorization frameworks used by UBS AG and Credit Suisse
AG, such as the Credit Suisse Client Energy Transition Framework (CETF).
› Refer to “Our transition strategy levers” and “Supporting our investing clients’ low-carbon transition” section for
more information about our engagement with our clients and to the “Asset Management” section of this report for
more information about our active ownership approach and climate engagement program with our investees
› Refer to “Appendix 3 – Entity-specific disclosures for Credit Suisse AG” in the appendices to this report for a
description of Credit Suisse’s CETF

Developing thought leadership

Our aim is to further inform and facilitate our engagement activities by acting as a thought leader in sustainability,
providing our clients with deep insights and research content from across our business areas and central initiatives.
Our main Group sustainability thought leadership initiative, the UBS Sustainability and Impact Institute, develops
insights into the long-term developments needed to support the transition to a low-carbon, sustainable economy.
Our Global Wealth Management Chief Investment Office and our Investment Bank Research offer actionable
insights on sustainable investments and finance. Meanwhile, our Investment Bank, Global Wealth Management,
Asset Management and Personal & Corporate Banking business divisions each delivered a variety of conferences,
webinars, reports, papers and other events during 2023 to discuss some of the most important developments and
themes around sustainability with our clients.
› Refer to the “Expanding insights” section of the Supplement to the UBS Group Sustainability Report, available at
ubs.com/sustainability-reporting, for more information about our thought leadership activities

Sustainability Report 2023 | Environment 27

Supporting our financing clients’ low-carbon transition
Our lending sector decarbonization targets
As set out in the UBS Group Sustainability Report 2022, Pre-acquisition UBS set targets to address in-scope lending
emissions for the residential and commercial real estate, fossil fuels (oil, gas and coal), power generation and cement
sectors, while the Credit Suisse Group had (as set out in the Credit Suisse Group Sustainability Report 2022) set
targets for the oil, gas and coal, power generation, commercial real estate, iron and steel, aluminum and automotive
sectors. For the shipping sector, the Credit Suisse Group disclosed the portfolio’s climate alignment to the Poseidon
Principles decarbonization index.
During 2023, following the acquisition of the Credit Suisse Group, we refined the UBS Group lending sector
decarbonization targets based on the integration of the Credit Suisse Group portfolios and in alignment with our
net zero ambition. We prioritized sectors that have the highest carbon impact, as per the guidelines of the Net-
Zero Banking Alliance (NZBA), and also applied additional considerations. These include the materiality of sectors
in terms of financial exposure and the availability of data and applicable methodologies to estimate baselines and
develop pathways toward net zero. We performed additional analysis to establish transparency around the
contribution of each sector in our portfolio to the total.
Decarbonization targets have been established for Swiss real estate mortgages (commercial and residential real
estate) and for financing of in-scope activities in the fossil fuels (oil, gas and coal), power generation, iron and steel
and cement sectors. For the Credit Suisse AG in-scope shipping portfolio, we continue to disclose the portfolio’s
climate alignment to the Poseidon Principles decarbonization index. As the automotive and aluminum sectors
previously reported by the Credit Suisse Group did not meet the exposure or emissions materiality thresholds as
calculated based on estimated 2023 exposure for the combined portfolios, they have been deprioritized for target
setting at this time.
We will continue to assess the materiality of the deprioritized sectors annually and aim to develop additional targets
for the remaining material carbon-intensive sectors in line with our commitment to the NZBA and as data and
methodologies become available.

Sustainability Report 2023 | Environment 28

Overview of lending sector decarbonization targets and progress¹

Swiss residential real estate² Swiss commercial real estate² Fossil fuels
kg CO2e / m2 ERA³ kg CO2e / m2 ERA³ million metric t CO2e

–45% –48% –70%

40 38.7 40 70 64.7
31.3
36.5 32.1
21.1
16.2 45.9

19.4
0 0.3 0 0.5 0 0
2021 2030 2050 2021 2030 2050 2021 2030 2050

UBS actuals UBS target UBS actuals UBS target UBS actuals UBS target
2050 convergence point 2050 convergence point 2050 convergence point
Implied Energy Perspectives 2050+ Implied Energy Perspectives 2050+ ZERO Indicative trend line to 2030 target
ZERO Basis – residential buildings Basis – residential buildings & services
Indicative trend line to 2030 target Indicative trend line to 2030 target

Power generation Iron and steel Cement

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

–60% –27% –24%

490 2 0.70
1.75 0.64 0.63
339
1.28 0.48
1.68
297

136
0 –4 0 0.12 0 0.02
2021 2030 2050 2021 2030 2050 2021 2030 2050

UBS actuals UBS target UBS actuals UBS target UBS actuals 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

Shipping4
alignment delta %
2018 IMO GHG Strategy 2023 IMO GHG Strategy
(”IMO Initial GHG Strategy”) (”IMO Revised GHG Strategy”)
60 50% tank-to-wake CO2 reduction 100 Net-zero well-to-wake CO2e
trajectory by 2050 reduction trajectories by 2050
+15.7% (2022 IMO "Striving for"
Alignment delta %

Alignment delta %

–2.4% (2020 IMO DCS) alignment score)

–1.3% (2021 IMO DCS) +11.5% (2022 IMO "Minimum"
–4.6% (2022 IMO DCS) alignment score)

–60 –100
2016 2050 2010 2050

Portfolio climate alignment score 2022 vs Striving for 2022 vs Minimum

Index trajectory Poseidon Principles Striving Minimum

1 For corporate sectors (fossil fuels, 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 have used
externally published independent net-zero scenarios as reference for the 2050 convergence points used to define the 2030 targets. 2 Swiss commercial
real estate and Swiss residential real estate portfolio decarbonization rates are in line with the Implied Energy Perspectives 2050+ ZERO Basis benchmarks.
The high observed emissions intensities are mainly due to conservative assumptions (e.g., oil heating assumed if actual heating type not available) and high
emissions factors per unit of energy used. The portfolio increase for Swiss commercial real estate was primarily driven by a change of the portfolio mix of
properties financed by Credit Suisse Group, with an increased weight of properties with higher emissions characteristics. 3 ERA: Energy Reference Area
4 Shipping graphs display our portfolio’s alignment to the Poseidon Principles decarbonization trajectories.

› Refer to the “Supplement to Environment” section of the Supplement to the UBS Group Sustainability Report 2023,
available at ubs.com/sustainability-reporting, for more information about our targets
› Refer to the “Basis of Reporting” section of the Supplement to the UBS Group Sustainability Report 2023, available
at ubs.com/sustainability-reporting for more information about our climate-related lending metrics

Sustainability Report 2023 | Environment 29

Our approach to target-setting is based on the guidance from global standards and initiatives such as the NZBA,
the Partnership for Carbon Accounting Financials (PCAF), the Paris Agreement Capital Transition Assessment
(PACTA) and the Science-Based Targets Initiative (the SBTi). UBS acknowledges that Credit Suisse had a commitment
to SBTi to have its 2030 targets externally validated. To develop the combined 2030 targets, we have utilized SBTi
guidance where possible and we continue to assess the options for target validation and assurance.
We strive to measure and monitor progress toward our targets and their alignment with our climate commitments
and emerging standards. It is important to note that progress towards our targets may not be linear, and year-on-
year volatility is expected due to changes in the portfolios’ composition over time. We plan to disclose our progress
publicly on an annual basis. In line with NZBA guidelines for climate target-setting, we intend, as a minimum, to
review our targets every five years to ensure consistency with the most recent climate science and best practices.
How we aim to underpin our targets with transition strategies
To underpin our targets and guide our transition strategies and actions, we followed a two-step process:
– assessing the overall emissions associated with UBS’s in-scope lending portfolio, including Swiss real estate
mortgages and estimated emissions reductions by 2030 (by business division and sector), considering client’s
historical emissions trends as well as public decarbonization commitments; and
– considering anticipated changes in the size and composition of our in-scope lending portfolios arising from
lending structures and business strategy.
Alongside these estimated emissions reductions, we defined three key transition strategy levers where we believe
we can have an impact and facilitate additional emissions reductions to reach our targets.
Our transition strategy levers
Illustrative glidepath to net zero

Status quo

Estimated existing emissions

reductions

Engage
A
2030 target Engaging with clients
GHG emissions

(absolute / intensity)
Grow
B Providing sustainable
finance solutions

Prioritize
C Providing capital to lower
carbon intensity activities

Illustrative Carbon removals

2021 2030 2040 Net zero

by 2050

A. Engage: engaging with our clients

Building on the review of our clients’ public decarbonization commitments, we further assess where they currently
stand on their journey toward a low-carbon and climate-resilient business model. By establishing a view on our
clients’ current decarbonization ambitions and activities, we aim to work alongside them to support their transition
efforts. This can include encouraging the disclosure of current emissions, the setting of future decarbonization
targets in line with Paris-aligned pathways and the development of credible transition plans.
Through our ESG Advisory Group, we are also providing the necessary lens to help our clients assess ESG
(environmental, social, governance) topics throughout the corporate lifecycle and critically analyze a corporation’s
ESG profile from a business and investor perspective.
› Refer to the “Investment Bank” section of this report for more information about our ESG Advisory Group

Sustainability Report 2023 | Environment 30

B. Grow: offering sustainable finance solutions
We complement our engagement efforts with sustainable and sustainability-linked financial advice and solutions
(advisory, lending, basic banking and transition financing solutions) to help our clients transition to a more
sustainable future. These solutions can be on-balance sheet (e.g., green or sustainable loans and mortgages) or off-
balance sheet (such as access to debt and equity capital markets). They can also include transaction structuring.
For example, in the corporate client business, we focus on supporting our clients by advising them as part of the
strategic dialogue and partnering with them in the implementation of new solutions. We offer sustainable-linked
loans (SLL) to incentivize the borrower’s achievement of ambitious, predetermined sustainability performance
targets. Our SLL offering is open to qualifying corporates from all sectors wishing to reflect their sustainability
ambitions in their funding strategy and benefit from meeting agreed sustainability performance targets.
› 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

We continue to develop and refine our sustainable finance solutions and approaches on an ongoing basis to support
our clients in orienting their business efforts toward the objectives of the Paris Agreement.
C. Prioritize: providing capital for lower-carbon-intensity activities
As previously highlighted, our aim is to direct capital toward lower-carbon activities, or to clients with credible net-
zero targets and plans to transition to low-carbon and climate-resilient business models. This is in line with our
sustainability risk process which may trigger enhanced due diligence for clients in those carbon-intensive sectors
that have higher climate-related impacts and risks. At the same time, as the global economy shifts toward lower-
carbon activities, we see opportunities to provide financing and advisory services to clients that are well positioned
to benefit from this transition.
Evolving our transition strategy
Managing and monitoring our financing activities remains an ongoing focus. We continue to build on and refine
our transition strategy and further tailor it to our business divisions. Our aim is to make our approach to climate
“business as usual” and to orient our new and existing business efforts toward net zero by 2050. We strive to
routinely consider the climate impact resulting from our financing activities, take an active approach to growing
our low-carbon business and address our financed emissions by engaging with clients and supporting their
transition. We strive to further strengthen our operating model and increase our efforts in the fields of transition
and green finance. We also expect new technologies to emerge, along with policies and actions from governments,
that will support the transition to a low-carbon economy. We regard such developments as dependencies for us to
contribute toward meeting the objectives of the Paris Agreement.
As we work toward our targets and further develop our transition strategies, we aim to consider a just transition
to a low-carbon economy, one that is as fair and inclusive as possible. In this regard, we contributed to the market’s
understanding of the concept as part of the Principles for Responsible Banking (the PRB) Just Transition working
group.
Carbon reduction and removal
In accordance with the NZBA guidelines, offsetting can play a role that is supplemental to sectoral and economy-
wide decarbonization. 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 VCMI (Voluntary
Carbon Markets Integrity Initiative) Claims Code of Practice, the ICVCM (Integrity Council for the Voluntary Carbon
Market) Core Carbon Principles and the Oxford Principles for Net-Zero-Aligned Carbon Offsetting). Any
decarbonization strategies, including offsetting, that UBS applies to its own in-house operations or advises other
organizations on must meet these standards.
Our transition plan prioritizes emissions 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 counterbalance hard-to-abate emissions and supplement the reduction strategies of some of our
clients. For example, certain industrial processes cannot yet achieve absolute zero emissions as technologically or
financially viable emissions-elimination alternatives do not exist. Those industries, however, still provide products
and services that are important to society and are likely to remain relevant in the future. In these cases, carbon
removals are critical to balance residual emissions. As best practice guidance, regulation, methodologies and
technologies develop, our approach to decarbonization, including offsets, will continue to evolve.

Sustainability Report 2023 | Environment 31

Sustainable lending operating model
To operationalize our approach to climate, it is important to embed sustainability and climate considerations into
our lending operating model, leading to regular adjustment of evaluation and decision-making frameworks,
governance structures, control and monitoring processes, and underlying systems.
For example, following the acquisition of the Credit Suisse Group, UBS reassessed the emissions and targets for
sectors with a high-carbon impact for the combined organization. To operationalize our target approach, we are
reviewing whether our planning and governance processes, risk appetite, sector strategies, and so on are still
appropriate. In parallel, we are assessing required enhancements to our loan origination, credit granting,
monitoring and reporting processes.
Building blocks of the sustainable lending operating model

Loan Monitoring,
Planning and Emissions incl.
origination and reporting and
governance target setting
credit granting data

– Group oversight – Greenhouse gas – Value proposition – Reporting

– Risk appetite emissions – Credit decision – UBS data
– Policies (financed / intensity) – Engagement management
– Sector strategy – Target metric and – Refinancing – External vendors
– Financial management reference pathway – Systems and
(strategic plan) processes

Our approach to measuring facilitated emissions from our capital markets business
Investment Bank
The Investment Bank offers our clients access to the world’s primary, secondary and private capital markets, through
an array of sustainability- and climate-focused services, products, research and events. Our role in capital market
transactions helps our clients access capital for their businesses. We facilitate clients’ capital raising and, therefore,
think it is important to monitor the related emissions which we are involved in.
Facilitated emissions differ from financed emissions in two aspects: Firstly, they are off-balance sheet (representing
services rather than financing) and secondly, our role is completed within a short timeframe 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 select carbon-intensive sectors1, we aim to provide transparency on the
emissions we facilitate as a result of our capital market activities. We are currently assessing methodologies for
calculating facilitated emissions for the remaining NZBA carbon-intensive sectors2. We calculated UBS’s facilitated
emissions in line with PCAF’s draft accounting and reporting standard for facilitated emissions, including public
equity capital markets and public debt capital markets, where UBS, including Credit Suisse, held a lead bookrunner
or lead manager / co-manager role on the transaction. Facilitated emissions are not shown for the current reporting
year due to the inherent time-lag in the availability of emissions data. We have conducted an initial assessment of
our approach against the final PCAF Standard released in December 2023 and identified select areas to be further
explored in 2024.
It is important to note that reporting facilitated emissions from transactions that took place in the reporting year
will introduce volatility in our numbers as it will be related to the volume of capital markets activity in the year and
our market share. Global capital markets activity was strong post-Covid in 2020 and 2021 but slower in 2022 and
2023. When market activity rebounds, we would expect our facilitated emissions to see a similar increase.

1 Disclosed for those sectors where data and methodology are available: fossil fuels (coal, oil and gas), power generation, iron and steel, aluminum, cement,
automotive and air transportation.
2 The NZBA identifies nine priority sectors: agriculture, aluminum, cement, coal, commercial and residential real estate, iron and steel, oil and gas, power
generation and transport.

Sustainability Report 2023 | Environment 32

UBS reviews and assesses every Global Banking transaction and employs a robust business selection process. 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.
We continue to review and assess emerging industry guidance and target-setting methodologies for facilitated
emissions.
31.12.22 31.12.21
Facilitated Facilitated Facilitated Facilitated
Facilitated
emissions, intensity emissions, intensity
Facilitated emissions, PCAF Facilitated PCAF
scopes 1 PCAF (million scopes 1 Facilitated PCAF (million
amount scope 3 score, amount score,
and 2 score, metric t and 2 emissions, score, metric t
(USD (million scopes 1 (USD scopes 1
(million scope 32 CO2e / (million scope 3 scope 32 CO2e /
billion) metric t and 22 billion) and 22
metric t USD metric t USD
CO2e)
CO2e) billion) CO2e) billion)
Facilitated
emissions
Select carbon-
12.0 2.0 2.3 1.6 2.3 0.4 23.0 5.1 16.3 1.6 2.8 0.9
intensive sectors1
Select carbon-
intensive sectors 5.7% 5.9%
as % of total
Other sectors 197.7 368.2
Total facilitated
209.7 391.3
amount3
1 Select carbon-intensive sectors comprise: fossil fuels (coal, oil and gas), power generation, iron and steel, aluminum, cement, automotive and air transportation. 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 2023,
available at ubs.com/sustainability-reporting, for more information about the parts of the value chain in-scope within sectors. 2 PCAF data quality score has been combined for the
key sectors and weighted by the facilitated amount. 3 Includes all sectors.
› Refer to the “Investment Bank” section of this report for more information about our capital market activities
› Refer to the “Basis of Reporting” section of the Supplement to the UBS Group Sustainability Report 2023, available
at ubs.com/sustainability-reporting, for more information about our methodology to calculate facilitated emissions

Sustainability Report 2023 | Environment 33

Supporting our investing clients’ low-carbon transition
Asset Management
UBS AG Asset Management became a founding member of the Net Zero Asset Managers (NZAM) initiative in 2020,
committing to support its ambition of net-zero GHG emissions by 2050. Membership of the NZAM initiative entails
a range of expectations at an organizational level and for in-scope assets under management (AuM). Through this
commitment, our aim is to further support our clients in reaching their sustainable investment and decarbonization
objectives.
In order to provide choice to our clients and to effectively monitor our progress toward our target, we use a clearly
defined framework to assess whether a product has a net-zero ambition. This framework is based on the NZAM
initiative’s guidance on assets committed to be managed in line with attaining net-zero emissions by 2050 or earlier,
as well as guidance from other industry bodies. From this we have derived the following guiding principles when
defining an investment portfolio as having a net-zero ambition:
– The portfolio has a defined decarbonization target, a commitment to increasing portfolio coverage of SBTi-
verified targets and/or invests in climate solutions that enable net-zero global GHG emissions by 2050.
– The portfolio makes a contribution to the transition to a low-carbon economy where relevant companies,
partners, managers, borrowers, tenants and vendors that are not currently meeting or aligned with net zero are
the subject of direct or collective engagement and stewardship actions.
– Offsets may be used to enable or support long-term carbon removal where there are no technologically and/or
financially viable alternatives to eliminate emissions.
– Monitoring and annual disclosure of progress toward portfolio-level targets.
› Refer to the “Supplement to Environment” section of the Supplement to the UBS Group Sustainability Report 2023,
available at ubs.com/sustainability-reporting, for UBS AG Asset Management’s science-based methodologies

2030 target for the proportion of assets to be managed in line with net zero
Our Asset Management business division set a target aiming, by 2030, to align 20% of UBS AG Asset
Management’s total assets under management (AuM) with net zero.1 Net zero portfolio alignment currently focuses
on areas of its business where methodologies exist and there is credible data to support tracking and reporting of
our progress, namely active equities, active fixed income, indexed equities and some of our real estate investment
activities. We believe, however, that only a proportion of these assets can be feasibly managed in ways that align
with net zero by 2030, consistent with their respective intended investment objectives, the needs of our clients,
and market evolution. There is also a portion of assets for which there is no currently agreed or accepted
methodology for net-zero alignment. These include asset classes such as multi-asset funds, hedge funds, private
markets, money markets, sovereign bonds, and municipal issuers. Portfolio alignment will be pursued once
acceptable data and methodology solutions are identified.
During 2023, we implemented revisions to fund documentation and investment management agreements in
certain products to align with our net-zero-aligned framework. UBS AG Asset Management currently has 35
available products being managed in line with net zero, representing 2.9% of our total AuM.
Our plans for making further progress toward our target include investing in the necessary data and infrastructure
to support the management and monitoring of portfolios, continuing to assess net-zero alignment at the issuer
level, and our active ownership efforts toward the transition to a low-carbon economy.
We draw on a wide variety of data sources to inform our assessment of climate-related risk and opportunities and
recognize that approaches to achieving net-zero are likely to develop over time as both data availability and quality
continue to improve. Consequently, we also expect our portfolio alignment approach to evolve as the transition to
a low-carbon economy progresses and as further data and methodologies become available. For example, we
enhanced our assessment by adding temperature alignment and climate solutions approaches, as well as exploring
how to best incorporate scope 3 metrics into our data model.

1 This Pre-acquisition UBS aspiration will be reassessed in 2024.

Sustainability Report 2023 | Environment 34

Helping clients understand net zero
We understand that our approach to net-zero investing is determined by our clients’ choices. We believe that we
have an important role to play in working collaboratively with our clients on climate risk education, providing
information about best practices in climate risk management, climate-related opportunities and approaches for net-
zero-aligned portfolios.
To help our clients and other investors understand the journey to net zero, as well as the range of options for
allocating capital that we offer, we launched a digital campaign during 2023 that provides educational materials
and thought leadership content. We are using various media avenues available to us to increase awareness,
including a redesigned web experience, videos and podcasts, Adobe campaigns, and our social media platform.
Our investment experts delivered individualized education to clients and prospects on specific components of
sustainable investing. Some of our investment approaches include rules-based net-zero strategies, climate-related
indexing and factor-based investing.
Net-zero active ownership by UBS AG Asset Management
We recognize that the transition of investment portfolios requires real-economy emission reductions and we see
our active ownership strategy as a powerful tool in influencing corporate behavior to achieve real-economy
outcomes. We have had a dedicated climate engagement program in place for five years to address climate-related
risks with measurable progress tracked. In 2023, we applied a sector-specific approach and engaged with
companies from the following sectors: oil and gas, electricity and other utilities, diversified mining, steel, chemicals,
and construction material. We set our engagement objectives and expectations based on company target-setting,
decarbonization measures, capital deployment and progress toward stated commitments. We also widened our
engagement coverage to include the highest-emitting companies across our investment universe, expanding the
range of sectors and geographies we cover.
We have also linked our climate engagement with our voting actions. In this respect, we clarified our climate and
net-zero expectations of companies in our policy framework. In 2022, we outlined our criteria for management
say-on-climate proposals. In 2023, we have further evaluated such proposals against the following six key factors:
climate governance, net-zero ambition and targets, quality of decarbonization strategy, net-zero performance
alignment, lobbying and policy engagement, and use of offsets.
› Refer to the “Supporting opportunities” section of this report for more information about our active ownership
approach and climate engagement program

Collaborative engagement by UBS AG Asset Management

UBS AG Asset Management is a co-lead and collaborative investor in Climate Action 100+, engaging with
companies on the initiative’s focus list that are key to driving the global net-zero emissions transition. In 2023, we
joined, and have been participating in the Institutional Investors Group on Climate Change (IIGCC)’s Net Zero
Engagement Initiative (NZEI), which was set up to build on and extend the reach of investor engagement beyond
the Climate Action 100+ focus list. This includes a broader spectrum of companies that are driving demand for
fossil fuels due to their business activities. In 2023, we were signatories to a CDP campaign encouraging more than
2,000 companies to adopt science-based climate targets, and co-signatories to two investor-led letters to
policymakers encouraging the acceleration of decarbonization goals at state-owned companies.

Sustainability Report 2023 | Environment 35

Annual disclosure by UBS AG Asset Management
UBS completed the annual CDP disclosure in July 2023, including pertinent information about UBS AG Asset
Management. Since this disclosure, UBS AG Asset Management has made additional progress against our 2030
target as disclosed above, expanding our available net-zero product shelf and further increasing those AuM that
are being managed in line with net-zero objectives.
We also participated in other industry and disclosure initiatives, and the development of regional best practice
climate-related guidance, such as the new Swiss Climate Scores (SCS). UBS was part of the working group
developing the SCS, an initiative conducted by the Swiss government in collaboration with industry and non-
governmental organizations. The SCS are based on international standards and aim to encourage investment
decisions that contribute to achieving the global climate goals. As the largest financial institution in Switzerland,
we are committed to this transparency milestone and were the first major bank to launch SCS reports for 136 funds
(as of 31 December 2023). In accordance with the recommendations put forward by the government, our initial
focus is on equities and fixed income funds domiciled in Switzerland. More funds and products will follow in 2024.
Available UBS SCS reports for funds can be viewed on the UBS Quotes data and information platform. For clients
interested in climate-related topics, advisors can use the SCS to demonstrate the climate compatibility of products,
based on the latest international information available.
› Refer to sif.admin.ch/swissclimatescores for more information about SCS
› Refer to UBS quotes for more information about UBS SCS reports for funds

Global Wealth Management

Global Wealth Management is a distributor of sustainable investing solutions, including climate investing. While we
recognize that not every investor might have net-zero ambitions or an affinity for investing in the transition to a
low-carbon economy, we aim to provide a range of options for private investors and family offices to address their
own decarbonization targets where possible. We do this through allocations to climate-related solutions in our
discretionary mandates where relevant, as well as by curating climate investment options for advisory portfolios.
The focus on providing a range of credible solutions is complemented by building investor awareness and driving
solutions innovation across asset classes and strategies. We also continue to build an understanding of how best
to integrate climate risk into portfolios.
Extending the range of investment options and allocating capital
In 2023, Global Wealth Management continued to increase the number of investment solutions across asset classes
and strategies to support clients’ decarbonization objectives. We launched a low-carbon single equity module and
a sustainability-focused fund of hedge funds solution, which includes allocation to climate-focused equity hedge
strategies, credit options for renewable infrastructure and a carbon markets strategy. We also extended our credit
research coverage of individual green bonds, expanding the available universe for clients who prefer direct
investments to fund solutions.
We work closely with our industry partners on developing new sustainable solutions, including those aiming to
address decarbonization. We aim to identify relevant and compelling investment opportunities and credible tools,
and to support the launch of new solutions where possible and relevant for client portfolios. We continue to believe
that the transition to a low-carbon economy 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.
Helping clients understand net zero
Our investment specialists provide education and training to advisors, clients and prospects on various aspects of
sustainable investing and how to incorporate these strategies into portfolios. These training sessions include general
education and discussions around decarbonization and climate investing. We also work with clients that are
interested in setting their own portfolio decarbonization targets or are exploring how to build exposure to carbon
markets. In addition to individual client meetings, we host broader client events on specific topics including
decarbonization and climate investing. Our conversations emphasize that investing in the transition is relevant not
just to investors who want to drive positive environmental impact, but rather to all investors, given the importance
of climate change to business models and capital markets.

Sustainability Report 2023 | Environment 36

We also incorporated discussions of the investment relevance of climate and broader sustainability topics in
publications for private clients throughout 2023. We provided a private investor perspective on emerging
investment opportunities tied to the low-carbon transition, including both regulatory and voluntary carbon markets.
Our analysts continued to cover a broad range of longer-term investment themes with links to the low-carbon
transition, including within energy efficiency, energy transition, clean air and carbon reduction, smart mobility, the
circular economy, and the food revolution. Other topics covered include but were not limited to: climate-related
litigation and regulation, investing in (and the role of) oceans for climate resilience, and progress on key climate
objectives. We activated this content both internally and externally through a variety of channels, including video
content, social media campaigns, podcasts in collaboration with industry partners, and an active presence on our
webpage.
Engaging with the wider industry
As an asset allocator, Global Wealth Management is an active participant in industry forums to help raise awareness
of the needs of private investors and family offices when it comes to climate-related investing. This includes
feedback to regulators on climate-related transparency and disclosures, as well as working groups with industry
peers, such as within Swiss Sustainable Finance (SSF) and the Global Impact Investing Network (GIIN), and engaging
with fund management partners.
We continue to see a greater focus on, and demand for, transparency and disclosure around climate and
decarbonization, and we participate in dialogue with industry and regulators on these topics. Given the importance
of transparency to private investors on new and emerging investment solutions around the low-carbon transition,
we collaborated and provided inputs for the initial and ongoing development of the SCS. Since the introduction of
the SCS, we have informed advisors on the content and how to deliver the information to clients that are interested.
We also make the reports published by UBS AG Asset Management and third-party managers on our platform (if
available) available through our UBS Quotes platform – and we will continue efforts to make this information more
easily accessible in our digital environments. We also published our first Principal Adverse Impacts report to provide
transparency on offerings for investors at selected UBS legal entities within the scope of the Sustainable Finance
Disclosure Regulation (SFDR), including key metrics on the climate footprint of our investments.

2024 and beyond across our investing activities

Following the acquisition of the Credit Suisse Group, we have undertaken an extensive review of our approaches
to setting decarbonization targets, to reflect the activities of the combined organization and evolving standards and
methodologies. Based on this assessment, we will deliver a revised 2030 target in 2024, which will cover the
combined UBS and Credit Suisse Asset Management business. Consequently, the Credit Suisse Climate Action Plan
published in December 2022 will be withdrawn in its entirety in 2024. Additionally, we are enhancing an in-house
framework post Credit Suisse integration that delineates our key transition levers in investing.
› Refer to “Appendix 3 – Entity-specific disclosures for Credit Suisse AG” in the appendices to this report for progress
made towards Credit Suisse’s target on reduction of investment-associated emissions

Sustainability Report 2023 | Environment 37

Reducing our environmental impact
A key element of our commitment to contribute toward a lower-carbon future is minimizing our own operational
footprint and supporting our employees, clients, suppliers and investors in the decarbonization of their activities.
That is why we aim to report accurately on our efforts to decrease GHG emissions. The environmental areas we
focus on in particular are energy, water, paper, waste and travel.
For 2023, we are disclosing the environmental footprint of the joint operations of UBS Group, including Credit
Suisse, unless otherwise stated. Due to the acquisition of the Credit Suisse Group, we have reviewed our combined
portfolio and building strategy which in turn has affected the timeline of our ongoing initiatives across the regions.
A further significant challenge in 2023 was the alignment of reporting methodologies for the Group’s quantified
impact on the environment. While both entities had previously reported in line with the GHG Protocol, there were
notable differences in the scopes, processes and tools.

Environmental focus areas

Energy reduction and sustainable buildings
We enhanced our efforts to reduce operational energy consumption and optimize our corporate real estate portfolio.
In 2023, we lowered energy consumption1 by 8% compared with 2022. Several initiatives contributed to this
reduction, for example, investing in more sustainable buildings and upgrading existing buildings by switching to
energy-saving LED lamps and modernizing heating systems and pumps.
We opted to disclose only renewable electricity in line with RE100 in this report as we are committed to achieving
100% sourcing according to this high standard across the combined group. Due to the increased real estate
portfolio globally, and limited supply in certain markets, we were able to procure 96% renewable electricity
according to RE100’s guidelines. Keeping with our high sustainability ambition, we will analyze a feasible timeline
for 100% RE100 compliance during 2024 and review our purchasing strategy to define acceptable quality criteria
on the way to full compliance.
In support of the RE100 ambition, we are increasing our onsite electricity production through photovoltaic systems.
In Switzerland, we expanded the existing photovoltaic installation at our Wolfsberg Conference Center and
increased our panel coverage on another building to generate an additional annual 122 MWh and 123 MWh,
respectively. We are in the process of increasing the number of power purchase agreements (PPAs) in Asia Pacific
and are in advanced discussions about virtual power purchase agreements (vPPA) in the Americas.
In 2023, we achieved certifications for multiple locations across our global operations, aligned with internationally
renowned green-building standards. Two of our offices in Shenzhen, China, attained the Leadership in Energy and
Environmental Design (LEED) Platinum certification in 2023, while our office in New Jersey received the WELL
Platinum certification. In Hong Kong SAR, all offices received accreditation from the Hong Kong Quality Assurance
Agency for Green Banking Practices in Office Operations, making us the first international bank in the city to reach
this milestone. Elsewhere in Asia Pacific, we designed and fully implemented a new internal benchmark to rate
potential real estate options based on their environmental impact and sustainability. This benchmark was built on
foundations from international standards, such as LEED and the Building Research Establishment Environmental
Assessment Method (BREEAM) and Green Mark.
Reducing waste, paper and water
In 2023, we reduced our landfill waste by 21% compared with 2022, resulting in a decrease of approximately 546
metric tons globally. Our efforts regarding waste center on reducing overall waste and improving recycling rates. We
implemented various solutions, including composting organic and commercially compostable materials to generate
energy and other by-products. Simultaneously, we upgraded our recycling facilities while concurrently optimizing the
recycling process for furniture and the use of paper hand towels. In our efforts to achieve our ambition of zero waste
to landfill, we rolled out a pilot program for one site in each region and also eliminated takeaway packaging at selected
locations. Despite these efforts, we have seen a waste increase per full-time equivalent of 16% compared with 2022.
During 2024 we will identify measures to help break this trend. In light of the integration of Credit Suisse, we will
review our efforts and targets for waste across our combined real estate portfolio. UBS Group works with third parties
to manage the waste generated by our organization. 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.
1 Includes all energy consumption reported for UBS Group

Sustainability Report 2023 | Environment 38

Paper consumption per full-time employee increased by 27% compared with 2022, despite the launch of several
awareness campaigns with our employees and our ongoing efforts to reduce the number of printers in our offices.
Of the total amount of paper used, 65% was either sourced as recycled or was certified by the Forest Stewardship
Council or equivalent labels. These measures help reduce the environmental impacts associated with paper
production and manufacturing processes, such as deforestation or energy usage.
Water conservation is a critical priority, its importance being amplified by severe droughts and global water scarcity.
To enhance water efficiency in our facilities we expanded our office’s environmental programs, for example, by
monitoring water use and optimizing flushing times and overflow management. Whilst implementing measures to
the contrary, we currently see an increase in water use by 17% compared to 2022. This is part of the rebound
effect from the pandemic years when water consumption dropped to a minimum.
Travel
In our ongoing commitment to advance sustainability in business travel, we 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. In addition, 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.
– Continuing to purchase high-quality carbon offsets that correspond with 100% of our air-travel emissions for
UBS Group excluding Credit Suisse.
Biodiversity
We have taken steps to protect biodiversity across our offices, mitigate the impact of our operations on nature and
raise awareness among our staff. For example, installing green roofs at selected office locations, combined with
employee volunteering activities, such as Clean-Up Day and a program to highlight the critical role of bees to our
natural ecosystem, served to shine a spotlight on the critical role of biodiversity.
› Refer to the “Appendix 2 – Environment” in the appendices to this report for more information on our approach to
nature

Impacts from our value chain

In addition to supplier engagement, we also worked to quantify and manage our relevant scope 3 emissions related
to our operations. While further work is required, we are already providing increased transparency on these efforts.
› Refer to “Monitoring the environmental impact of our supply chain” below and to the Supplement to the UBS
Group Sustainability Report 2023, available at ubs.com/sustainability-reporting, for more information

Our environmental management system

All UBS Group excluding Credit Suisse’s environmental activities, including the entire scope of products, services
and in-house operations, are subject to our environmental management system (EMS), which we run in accordance
with ISO 14001:2015. UBS Group excluding Credit Suisse and Credit Suisse separately successfully passed the ISO
14001 audits every year since implementation, including in 2023. In the EU and the UK, our activities (excluding
those of Credit Suisse) are certified according to the ISO 50001:2018 energy management system standard.
Information on our GHG emissions and underlying information (energy, water, paper, waste, recycling and travel)
is also included in our yearly GHG emissions report prepared in accordance with the ISO14064 1:2018 standard.
This report is subject to yearly external verification in accordance with the ISAE 3410 standard and also considering
the ISO 14064 3:2019 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 operations and for affirming their daily
implementation.

Sustainability Report 2023 | Environment 39

Use of carbon offsets and carbon removal credits
During the transition towards our decarbonization goals and as part of our beyond-value-chain mitigation we
continue to purchase high-quality carbon offsets at an equivalent volume to match our net scope 1 and 2 emissions
from our own operations, as well as our scope 3 air-travel emissions. These are verified against either the Gold
Standard, or Verra VCS plus the Climate, Community and Biodiversity Standard which certifies the additional
contribution to Sustainable Development Goals (the SDGs) beyond the carbon impact. In addition, our carbon offset
commitments undergo internal quality checks with our Sustainability and Climate Risk unit.
In 2023, for UBS Group excluding Credit Suisse, we continued to apply an internal carbon price of USD 400 per
metric ton for scope 1 and 2 emissions in our capital investment business cases in order to incentivize carbon
reductions - for example by replacing fossil-fuel heating systems. The cost reflects the blended mix of permanent
carbon removals required to neutralize any residual emissions that cannot be otherwise abated. We continued
working with our partners Climeworks, Neustark and NextGen to support their efforts to provide scalable and
effective solutions in the market and expect to start receiving the first carbon removal credit deliveries in 2025.

Environmental targets and performance in our operations (UBS Group)1

Target % change Progress /
GRI2 2023 2025 Baseline3 from baseline Achievement4 2022 2021
Total net greenhouse gas emissions (GHG footprint) in t CO2e5 305 168,688 n/a6 359,360 -53 green 169,144 133,243
Scope 1 and net scope 2 greenhouse gas emissions in t CO2e 305 48,522 0 145,911 -67 amber 61,627 59,889
Energy consumption in GWh 302 797 -15% 1,064 -25 green 866 899
Share of renewable electricity 302 95.6% 100% 76.6% 25 green 91.1% 92.3%
Paper consumption in kg per FTE7 301 34.1 -50% 54.9 -38 amber 26.9 35.9
Share of recycled and FSC paper 301 65.1% 100% 63% 3 amber 52.7% 61.2%
Waste in kg per FTE7 306 77.1 -10% 133.5 -42 green 66.3 69.3
Zero waste to landfill8 306 21.4% 0% 31.6% -32 amber 30.5% 22.2%
Waste recycling ratio 306 57.7% 60% 50% 15 amber 52.2% 61.5%
Water consumption in m m³ 303 1.22 -5% 1.33 -8 green 1.04 0.84
Legend: CO2e = CO2 equivalents; FTE = full-time employee; GWh = gigawatt hour; kWh = kilowatt hour; km = kilometer; kg = kilogram; m m³ = million cubic meters; t = metric ton
1 Detailed environmental indicators are available at www.ubs.com/environment. Reporting period 2023 (1 January 2023 - 31 December 2023). 2 Reference to GRI Sustainability
Reporting Standards (see also www.globalreporting.org). 3 Baseline year 2019. 4 Green: on track; Amber: improvements required. 5 GHG footprint equals gross GHG emissions
minus GHG reductions from renewable energy (gross GHG emissions include: direct GHG emissions by UBS Group; indirect GHG emissions associated with the generation of imported
/ purchased electricity (grid average emission factor), heat or steam and other indirect GHG emissions associated with business travel, paper consumption and waste disposal). 6
Net-zero target 2050. 7 Non-significant deviations due to summing and rounding may occur. 8 FTEs are calculated on monthly / quarterly average basis as applicable and include
FTEs which were employed through third parties on short-term contracts. 9 In locations where UBS Group has influence and where alternatives are available.

Environmental performance and 2025 targets

Paper from
Energy reduction1 sustainable sources
−25% −15% 65% 100%

Waste reduction1 Water reduction1

−42%2 −10%2 −8% −5%

2023 actuals 2025 targets

1 All reduction targets relate to 2019 baseline. 2 Per full-time employee.

Sustainability Report 2023 | Environment 40

Engaging in sustainable technology
The Group-wide Sustainable Technology Guild (the STG) aims to raise awareness of sustainable technology
initiatives among our technology teams and accelerate the execution of strategic plans that will have a positive
environmental impact through technology optimization. The STG also contributes by rethinking ways that we
develop and deploy applications, store data and manage our infrastructure. The STG remains primarily focused on
energy consumption by the UBS technology estate, in addition to e-waste and use of precious metals. The STG
achieved major milestones in 2023:
– 50% energy savings from UBS Workspace migration;
– 50% energy savings resulting from Azure Kubernetes Service (AKS) optimization in Group Finance; and
– Sustainable Fundamental training completed by over 1,000 staff UBS Certified Engineers.
The STG has focused on four distinct tracks, all of which are sponsored by our senior management:
– optimization of our on-premises technology estate to support more energy-efficient consumption, by ongoing
decommissioning of unused and power-intense technology components, as well as changes to hours of
operation;
– application development with sustainability in mind, achieved by providing transparency, using near real-time
metrics, to application owners about the environmental impact of their applications;
– execution of our Cloud First strategy and continuous adoption of our primary strategic Cloud partner, Microsoft;
– running internal campaigns to encourage employees in archive management of the applications and systems
that they are accountable for; and
– building sustainable technology knowledge through focused training.
Heading into 2024, the STG will also focus on:
– continuing to raise awareness through a refreshed and re-launched campaign to all UBS Group technology staff;
– taking a structured approach to identifying and implementing energy saving initiatives using public cloud to
target cost and energy savings, modelled on the FinOps approach, also known as ‘GreenOps’; and
– a renewed focus on Measurement & Tooling, based on lessons learned in this area.
Across all these initiatives, we continue to upgrade our technology infrastructure with newer and more efficient,
market-leading infrastructure and technology vendors, moving some technology platform workloads from on-
premises and private cloud servers to Microsoft Azure. In some specific use cases, this has yielded energy reductions
of up to 30%. This year, our technology sustainability partnership with Microsoft has continued to strengthen with
executive briefings and workshops conducted to discuss areas of collaboration and paths forward.
We are a Steering Member of the Green Software Foundation (GSF) and continue to partner closely with other
member organizations on a number of open-source projects that are exploring ways of reducing emissions from
large technology estates. In 2023, GSF attained the ISO accreditation of the Software Carbon Intensity Specification
(SCI) – a measure of software-related energy usage that was trialed on two applications at UBS.

Sustainability Report 2023 | Environment 41

Monitoring the environmental impact of our supply
chain
In line with our net-zero ambition, we are strengthening sustainable practices and engaging
with our suppliers on climate information disclosures to create transparency and
commitment to reducing GHG emissions within our supply chain.
In 2023, we invited 440 vendors, which accounted for 67% of our annual vendor spend, to disclose their
environmental performance through CDP’s Supply Chain Program. We implemented a structured communication
plan and conducted webinars to guide our vendors through the disclosure process and requirements to ensure they
understood the need for, and importance of, declaring their emissions and committing to their own 2050-aligned
net-zero goals.
70% of the invited vendors completed their climate disclosures via the CDP platform. The number of vendors
completing disclosures increased by 74% from 176 in 2022 to 307 in 2023.
Climate disclosures of our vendors

450 440

266
Vendor 307
33% spend
67%
+74%
176

0
Vendors invited to disclose emissions in CDP 2022 2023

Vendors completed disclosures in CDP

We have also established a baseline for supply chain vendor scope 3 emissions (categories 1 and 2 vendor-related)
of 1.13 million metric tons of CO2e for financial year 2023.
We identified GHG key vendors (defined by us as those vendors that collectively account for more than 50% of our
estimated vendor GHG emissions) in order to focus our efforts on the highest-impact vendors. In 2023, we revised
and updated the list of GHG key vendors from 83 to 95 to include Credit Suisse vendors. We are engaging with
our GHG key vendors, for 100% of them to declare their emissions and set net zero-aligned goals by 2026, and
reduce their scope 1 and 2 emissions in line with net-zero trajectories by 20351. We met with all our GHG key
vendors, shared formal guidance through our vendor climate information declaration guideline and developed
tailored engagement plans, based on the vendor’s maturity. In 2023, 65% of our GHG key vendors declared their
emissions on CDP and also set 2050-aligned net-zero goals.

1 In 2024, we may review our targets for GHG key vendors for the combined organization and alignment with latest guidance. Our GHG key vendors are those
vendors that collectively account for more than 50% of our estimated vendor GHG emissions.

Sustainability Report 2023 | Environment 42

GHG key vendors' climate disclosures

100
95

83

65% (62/95) 60%

49% (41/83)
30%

0
2022 2023

Target

GHG key vendors that disclosed emissions on CDP and set net-zero-aligned goals
GHG key vendors that did not disclose emissions on CDP and/or did not set net-zero-aligned goals

Initiating focused emissions-reduction initiatives, we partnered with vendors that provide services from offshore
development centers (ODCs) to foster responsible and sustainable practices in those facilities. Our approach is based
on proactive engagement with these vendors to reduce their environmental impact. To ensure transparency and
accountability, we have established contractual agreements with six of our ODC vendors to disclose their scope 1,
2 and 3 emissions and commit to achieving net zero by 2050. In addition, we have established three categories of
supplementary requirements for these ODC vendors: energy efficiency, waste management and paper
consumption. Our requirements include LEED Gold certification (or equivalent) for any new premises, a transition
to 100% renewable electricity by 2030, waste recycling goals and a commitment to use sustainable paper. These
will be rolled out to Credit Suisse ODC vendors in 2024 and 2025.
We also collaborated with one of our IT software development services providers to train up 76% of this vendor’s
software engineers who are engaged in providing services to us on GSF certification. The training serves as a catalyst
for software developers to learn environmentally-conscious coding practices, which in turn accelerates the reduction
of carbon emissions from software. By providing developers with specialized knowledge and skills in sustainable
software development, they are empowered to create code for UBS that is inherently energy-efficient and
environmentally responsible.
› Refer to our vendor climate information declaration guideline, available at ubs.com/suppliers
› Refer to the “Supplement to Environment” section of the Supplement to the UBS Group Sustainability Report 2023,
available at ubs.com/sustainability-reporting, for more information on methodologies applied

Sustainability Report 2023 | Environment 43

Managing the risks of climate change to our business
We define sustainability and climate risk as the risk that UBS negatively impacts, or is impacted by, climate change,
natural capital, human rights, and other environmental, social and governance (ESG) matters. Sustainability and
climate risks may manifest as credit, market, liquidity business and non-financial risks for UBS, resulting in potential
adverse financial, liability and reputational impacts. We manage sustainability and climate risk within a dedicated
risk management framework. In 2023 we worked to revise this framework and our processes across UBS, following
the acquisition of the Credit Suisse Group AG.
› Refer to the “Managing sustainability and climate risks” section of this report for further details

Sustainability Report 2023 | Environment 44

Social
People and culture make the difference
Driving sustainable performance
We are dedicated to being a world-class employer and a place where people can unlock their full potential. With
more than 115,000 employees working in 52 countries, our global presence, expertise and range of business
activities help us to make a positive difference for our clients, colleagues and communities.
Our employees execute our business strategy and deliver the products and services our clients need. This is why we
invest in our people, aiming to attract, develop and retain employees with the diverse skills, capabilities,
backgrounds and experiences that can enable us to achieve our goals.
Good corporate citizenship principles are embedded into our employment practices, for example in the benefits we
offer, our fair pay practices, and our commitment to increase our workforce diversity. 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 “Driving social impact” in this section for information about our community impact and employee
volunteering activities

As part of the integration of Credit Suisse, we examined our people management landscape. Our analysis showed
that nearly all of Credit Suisse’s workforce and demographic data is compatible with ours, allowing us to report
consolidated figures in this report, unless otherwise stated. We are particularly focused on the alignment of any
outlying people-related frameworks, policies, programs, processes and data.
Our workforce in a nutshell ¹

Men Women 18% 61% 21%

59%
115,038 41%
employees
67,938 47,100 age <30 age 30–50 age >50

32% 23% 24% 20%

52 166 171 8.5
Switzerland Americas Asia Pacific EMEA countries nationalities languages years of service,
spoken on average

1 Calculated as of 31 December 2023 on a head-count basis of 115,038 internal employees only (112,842 FTE). The number of external staff as of
31 December 2023 was 25,619 (workforce count).

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

Sustainability Report 2023 | Social 45

The three keys and our corporate culture
Our culture is the foundation of our identity, and it defines how we work together every day. It is based on our
three keys to success: our Pillars, Principles and Behaviors. These keys drive our business decisions and people
management processes. In the second half of 2023, familiarizing our new colleagues with our three keys to success
and building a unified culture across our combined organization were top priorities. To support this process, during
2023, we established a forum to focus on culture integration which is chaired by the Head Group Human Resources
and Group Corporates Services and composed of senior management representatives and select external advisors,
to oversee culture integration across our firm.
› Refer to the “Governance” section of this report for more information on key governance bodies pertaining to ESG
matters

Culture-building behavior is promoted through a number of Group-wide, divisional and regional initiatives. One
example is Three Keys on Air. In 2023, this Group-wide series highlighted key aspects of our culture, including
maximizing performance, psychological safety in high-performing teams, and improving risk management. In
addition, the Group Franchise Awards (GFA) program recognized employees for cross-divisional collaboration and
suggesting innovative or simplification ideas. In 2023, more than 1,800 ideas were submitted for consideration.
The global peer-to-peer appreciation program (called Kudos) makes it easy for employees to recognize and
appreciate their colleagues’ above-and-beyond behavior, serving to promote excellence and increase engagement
and employee satisfaction. In 2023, our employees gave nearly 439,000 Kudos recognitions. Credit Suisse
employees participated in Recognizing and Valuing Excellence (RAVE), a similar peer-to-peer recognition program.
The GFA program and Kudos will be rolled out to the entire organization starting in 2024.
› Refer to ubs.com/global/en/our-firm/our-culture.html for details about our three keys to success

Hiring, developing and retaining talent

How effectively we attract, develop and retain a talented workforce is reflected in our long-term success. In 2023,
we hired a total of 11,435 external candidates across the Group, and developed more than 3,720 graduates and
other trainees, apprentices and interns in programs around the world. The combined organization is a major
apprenticeship provider in Switzerland, and we actively promote multi-year apprenticeship programs in Switzerland
and the UK, along with summer internship programs and work-study programs in the US, EMEA, Asia Pacific and
Switzerland.
› Refer to the Supplement to the UBS Group Sustainability Report 2023 or to ubs.com/global/en/careers/awards.html
for employer ratings and recognitions

We are committed to hybrid-working options wherever possible. In 2023, most of our employees were eligible to
work partially from home, depending on their role, regulatory restrictions and location, as well as divisional or
functional requirements. Pre-acquisition UBS and Credit Suisse Group already had similar programs in place, and
these will be aligned over the course of the integration. For those with hybrid-working arrangements, regular in-
office days promote team building, collaboration and a sense of belonging, all of which are key to integrating our
businesses and shaping a unified identity and culture. Hybrid-working arrangements, along with options such as
flexible locations or hours, part-time working, job sharing and partial retirement help employees thrive throughout
their careers, while attracting a wider range of candidates and making us an even more adaptive and responsive
company.
Talent management
We take a systematic approach to talent management. Annual talent and succession reviews help ensure that we
have strong talent pipelines and succession plans. We aim to create a culture of cross-divisional and international
mobility for early-career talent, mid-career professionals and senior leaders. Group-wide talent programs are offered
across the organization, and supplemented by specific programs in the business divisions, functions and regions.
Programs range from those targeting senior leaders to junior talent, in addition to those open to women and
employees from diverse backgrounds. To support line managers, we offer targeted development for new line
managers and those who want to improve on various aspects. Regular leadership events align business heads with
our strategy and further our corporate and cultural integration.
Internal mobility is a key component of talent management, with line managers expected to support individual
development and job mobility. In 2023, we filled many of our roles with internal candidates1 – 38.8% of all hires,
40.5% of all female hires, 30.9% of UK ethnic minorities hires and 31.4% of US ethnic minority hires.

1Internal candidates refers only to UBS and Credit Suisse employees moving internally. Credit Suisse employees moving to UBS are not considered to be internal
mobility but rather external hires.

Sustainability Report 2023 | Social 46

Employees can explore career paths, search for jobs and short-term rotation opportunities, and connect with
mentors on our Career Navigator platform. In 2023, more than 44,000 employees of UBS Group excluding Credit
Suisse accessed our internal job board, 313 participated in a short-term rotation opportunity, and 1,056 participated
in mentoring relationships. Credit Suisse employees are expected to have full Career Navigator access during 2024.
We deliver internal training and development via our UBS University platform. Our offering includes client advisor
certification and regulatory, business, and line manager training, alongside modules on topics such as culture,
sustainable finance, data literacy, and well-being. In addition, our learning experience platform makes AI-powered
training recommendations based on an employee’s needs and interests. Credit Suisse employees transitioned to
the UBS University platform in January 2024. UBS Group excluding Credit Suisse invested approximately USD 92.7
million in training in 2023, with permanent (UBS Group) employees completing more than 2.3 million learning
activities (including mandatory training on compliance, business, and other topics). This was an average of 1.91
training days per employee.
Performance management
Our performance management approach reflects our strategy and supports our high-performance culture. The
Objective-setting process fosters accountability with objectives focused on outcomes to align the organization on
what matters most. To support appropriate management of risks and a strong and proactive risk culture, all
employees set a risk-related objective. Further, we consider both performance- and behavior-related objectives
because we value not only “what” an employee accomplishes but also “how” they accomplish it and demonstrate
our behaviors – accountability with integrity, collaboration, and innovation.
An embedded Feedback app allows employees to easily give and receive feedback in real time throughout the year,
supporting continuous improvement. We counted more than 296,330 instances of feedback across the combined
organization by the end of 2023, and 100% of eligible employees received a performance review for the year.
Self- and line manager reviews, along with additional management discussions to validate performance, help
support fair and transparent decision-making. Line managers play a key role in the quality of our approach and are
ultimately responsible for year-end performance decisions. Leaders at all levels are also expected to role-model our
House View on Leadership. Its principles are integrated into all of our core HR processes, including hiring,
performance management, training, succession planning, and promotions.
For 2023 year-end, we ran a combined fully integrated performance management approach for all employees,
including our Credit Suisse colleagues. Supporting a one-bank employee experience helps all employees understand
what matters most to drive a sustainable high-performance culture. The completion of our year-end approach is a
significant milestone for our organization and a success that accelerates our cultural integration journey.
Employee engagement
Our employees want to be heard and are involved in shaping their daily experience. As such, we provide
opportunities throughout the year for them to share their views and to connect with management on topics ranging
from strategy and engagement to the work environment.
In 2023, we conducted employee lifecycle surveys, in-depth analyses of specific business issues, and “pulse” surveys
to learn about employees’ views and concerns. One such pulse survey, conducted across the combined organization
in November 2023, showed high levels of psychological safety, respect, collaboration and empowerment. In
particular, 87% of respondents reported experiencing a professional and respectful work environment, and 83%
reported that their function collaborates well with different areas. Further, 77% of respondents felt empowered to
make decisions and 86% felt able to speak up and raise concerns2. All of these results are above the financial
services benchmark3.
Employee feedback in 2023 also included virtual focus-group sessions with more than 5,000 participants across the
combined organization. Those conversations, along with feedback received through our internal communications
channels and various events, allowed employees to share their perspective and insights on the integration, and
provided employee sentiment data points to track progress.

2 Resultshown is the sum of “strongly agree” and “agree” scale. Questions: 1) In my business division or function, we provide a professional and respectful work
environment, 2) Where I work, we collaborate well with different areas, 3) I'm empowered to make appropriate decisions in my job and 4) I am able to speak up
and raise concerns if I see things I consider to be wrong
3 Benchmarks provided by Ipsos Karian and Box as of Q3 2023

Sustainability Report 2023 | Social 47

In addition, a dedicated online integration hub, accessible to both UBS and Credit Suisse employees from the date
of the legal close, enabled us to communicate key strategic, organizational and operational decisions and
information, and to start building a unified identity and culture. Initiatives like our regular “Ask the CEO” event
gave employees the chance to learn about (and ask questions on) topics such as strategy and direction.
Employee representation
In addition to seeking out employee feedback, we maintain an open dialogue with our formal employee
representation groups. We have European works councils representing 17 countries and consider topics related to
our performance and operations. Local works councils (such as the UBS Employee Representation Committee and
the Credit Suisse Staff Council in Switzerland) discuss benefits, workplace conditions and redundancies, among
other topics. Collectively, these groups represent approximately 51.5% of our global workforce.
Where applicable, our operations are subject to collective bargaining agreements (CBA). 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 global compensation policies and practices. We regularly conduct internal reviews and independent external
audits on pay equity, and our statistical analyses show a differential between men and women in similar roles across
our major locations of less than 1%.
In 2020, we completed an equal pay analysis in Switzerland, as required by the Swiss Federal Act on Gender
Equality. The results confirmed that we are fully compliant with Swiss equal pay standards. Beginning in 2020, Pre-
acquisition UBS was certified (through 2023) by the EQUAL-SALARY Foundation4 for our HR practices, including
compensation, in Switzerland, the US, UK, the Hong Kong SAR and Singapore, covering more than two-thirds of
our global employee population.
All of our HR policies are global, and we apply the same standards across all locations. Furthermore, we review our
approach and policies annually to support our continuous improvement. In 2023, we fully integrated former Credit
Suisse Group employees into all of our fair pay practices and continued to monitor and improve our pay equity
position in our leading countries.
We also aim to ensure that all employees are paid at least a living wage5. We regularly assess employees’ salaries
against local living wages, using benchmarks defined by the Fair Wage Network. Our analysis in 2023 showed that
employees’ salaries were at or above the respective benchmarks.
› Refer to our UBS Compensation Report 2023 at ubs.com/annualreporting and to ubs.com/diversity for our 2023 UK
Gender & Ethnicity Pay Gap report

Environmental, social and governance (ESG) objectives in the compensation process

Our compensation determination process considers ESG objectives in objective-setting, performance award pool
funding, performance evaluation and individual compensation decisions. ESG-related objectives have been
embedded in our Pillars and Principles since they were established in 2011. In 2021, we introduced explicit
sustainability objectives in the non-financial category of the Group CEO and GEB performance scorecards. In 2023,
we further enhanced the GEB performance scorecard framework by establishing separate Environmental &
Sustainability and People & Governance categories. The objectives in these categories are linked to our sustainability
priorities, and their progress is measured via robust quantitative metrics and qualitative criteria. Sustainability
objectives are assessed for each GEB member on an individual basis, directly impacting their respective performance
assessments and compensation decisions.
The determination of the Group performance award pool funding also takes into account ESG factors. Aside from
financial performance, an assessment of progress is made against objectives linked to our focus areas of Planet
(including climate-related goals), People (including progress made against our diversity aspirations) and
Partnerships, alongside other key non-financial considerations.

4 For more information on the gender certification, refer to the EQUAL-SALARY Foundation website
5 Excluding our US financial advisor staff (as their compensation is primarily based on a formulaic approach).

Sustainability Report 2023 | Social 48

Therefore, ESG is taken into consideration when the Board of Directors’ Compensation Committee assesses
performance and compensation for GEB members. Additionally, the assessment impacts the overall performance
award pool for the Group. Going forward, we will continue to review and refine the role of ESG considerations in
our performance and compensation framework to ensure they remain aligned to our strategic priorities and the
sustainable growth of shareholder value.
› Refer to “GEB performance assessments” in the UBS Compensation Report 2023 for more information
› Refer to “Our focus on sustainability and climate,” “Employees,” and “Social impact” in our UBS Group Annual
Report 2023 available on ubs.com/annualreport for more information
› Refer to ubs.com/sustainability-reporting for more information about ESG-related topics

Employee support
We are committed to being a responsible employer, and that includes supporting our employees’ health and well-
being. Social, physical, mental and financial well-being elements are woven into our HR policies and practices, as
well as into employee-focused initiatives to increase awareness and educate employees on how to improve their
well-being. Supporting employee health and well-being remained a priority in 2023. Resources to support holistic
well-being included a range of programs, benefits and workplace resources, along with a bespoke eLearning
curriculum that aimed at helping our employees manage their health, foster well-being, strengthen their resilience,
and support the sustainability of the organization. For example, in the first part of 2023, UBS became a founding
partner of #WorkingWithCancer to improve our support for employees impacted by cancer.
During the second half of 2023, we focused on helping our employees across the combined organization adapt to
changes related to the integration of Credit Suisse. In this context, we expanded our offering to include guidelines
and instructor-led sessions on managing organizational change, uncertainty, and resilience. Credit Suisse employees
also had access to holistic personal health coaching support.
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. Benefits are set in the context of local
market practice and are regularly reviewed for competitiveness.
Employee assistance programs and internal teams help employees and their family members manage personal or
work-related issues that may affect their well-being. UBS Group excluding Credit Suisse’s absentee rate in 2023
was 1.9% globally and Credit Suisse’s absentee rate was 2.3% in Switzerland6 of total scheduled days, according
to the number of illness or accident absences recorded in the respective self-service HR tools.
In 2023, we announced that the social plans or severance payments at UBS and Credit Suisse in the respective
countries will be aligned to ensure that all employees are treated equally. The terms of the social plans or severance
payments are harmonized according to a “best of both” principle to support employees affected by redundancy7.
Should business or organizational circumstances arise that lead to employee redundancy, we offer redeployment
and outplacement services with a key focus on redeployment within UBS and we have significantly increased the
budget for education and training in all business divisions and regions. Those services are designed to help
employees find new internal roles or to transition out of UBS. We believe that these measures help skilled employees
who are affected by restructuring to position themselves favorably on the labor market within or outside the
financial services industry. Additionally, employees considering retirement have access to various resources to help
prepare them for this transition, including access to educational sessions and individual assistance.
› Refer to the Supplement to the UBS Group Sustainability Report 2023 for UBS’s health and safety statement
› Refer to ubs.com/employees for more information about benefits and assistance

Equal opportunities and whistleblowing

Building a high-performing and inclusive workplace includes providing equitable access to employment and
advancement opportunities. We are an equal opportunity employer, and our policies do not tolerate harassment
of any kind. We have measures in place to prevent bullying, victimization, harassment, and retaliation, as well as
anti-harassment representatives who independently review relevant training, policies and protocols.

6 Credit Suisse does not currently and has not in the past reported absenteeism globally, as Credit Suisse’s systems capture this data on a regional rather than
global level and definitions between regions differ, impacting the accuracy of a global number.
7 Due to local legal or consultation requirements, in five countries alignment remains in progress

Sustainability Report 2023 | Social 49

Our policies encourage employees to raise concerns openly and to report any potential violations of our Code of
Conduct and Ethics (the Code). Group-wide, staff have multiple ways (including confidential whistleblowing
hotlines and online applications that offer anonymity) to raise concerns about any suspected breach of laws,
regulations, rules or other legal requirements, policies, 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.

Diversity, equity and inclusion

At UBS, we aim to build a culture of belonging, where employees from all backgrounds and identities can feel
recognized and valued, and where everyone can unlock their full potential. To succeed, we need to enable UBS to
deliver the greatest possible impact for our stakeholders – both external (our clients, our communities and society,
and our suppliers) and internal (our employees). Our employee diversity, equity and inclusion (DE&I)8 strategy is
built on four pillars: how we hold ourselves accountable, how we hire, how we develop talent and how we build a
culture of belonging. We leverage all four pillars as we move toward achieving our ambitious gender and ethnic
diversity aspirations, disability integration and in creating an inclusive culture for all.
› 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 on the topic of community and
society
› Refer to the “Managing our supply chain responsibly” section of this report for more information about our
suppliers

Accountable
Our accountability framework embodies the oversight of the GEB and its commitment to achieving our aspirational
goals, along with empowering leaders to drive our DE&I strategy forward. We use data monitoring, fair pay
practices, management dashboards, and toolkits to support accountability. All GEB members and their leadership
teams are evaluated on their efforts toward achieving our aspirations. Furthermore, supporting business-led DE&I
councils and people forums ensures that accountability is a shared responsibility Group-wide. Externally, we partner
with initiatives such as the UK government’s Women in Finance Charter to support the progression of women into
senior roles and to publicly report on progress.
We also believe that transparency is key to achieving our aspirations. In 2020, we outlined specific intentions to
increase our female and ethnic minority representation, especially among management. Specifically, by 2025, we
aspire to have 30% of Director level9 and above roles globally held by women and 26% of Director level and above
roles in the US and the UK held by ethnic-minority talent, along with additional regional aspirations. Our DE&I
aspirations remain unchanged for the combined organization and the Credit Suisse DE&I aspirations have been
retired.

8 For all data in the DE&I section of this report, 2023 data reflects the combined firm unless otherwise stated. Prior-year data reflects UBS only, unless otherwise
stated.
9 We informed employees that as of 1 April 2024, the firm will adapt its organizational titles to the UBS structure. This change is primarily one of nomenclature;
role, responsibilities, employment terms and conditions are all unchanged. The title of managing director is unchanged. Credit Suisse directors will become
executive directors, and vice presidents will become directors. Assistant vice presidents/associates will become associate directors. Employees with a staff title will
ultimately be aligned to either employee or authorized officer, depending on their role, responsibilities, and experience and following a thorough review by
management, supported by HR.

Sustainability Report 2023 | Social 50

2025 aspirational goals

Director level and above

Women, global Ethnic minorities, UK

29.5% 30% 24.3% 26%

Racial/ethnic
Black, UK minorities, US
2.1% 4% 25.1% 26%

Financial advisors/client advisors¹

Racial/ethnic
Women, Americas minorities, US
16.8% 25% 12.2% 18.8%

2023 actuals 2025 aspirational goals

1 FA / CA population refers to UBS Group excluding Credit Suisse.

It is important to note that improving representation is rarely linear. Moreover, progress is based in part on drivers
like promotion rates, as well as on various business and market conditions, employees’ willingness to self-disclose
demographic information, and other factors. We therefore aim to ensure that every element of our people
management process is a positive influence. For instance, implementing processes and controls to mitigate
unconscious bias in the hiring process, talent reviews and promotions have helped to maintain a continuous line of
progress, with the number of diverse new hires, promotions and retentions slowly improving our overall
representation, particularly regarding female and ethnic minority employees.
For example, women now account for 40.9% of our workforce and 29.5% of our Director level and above
population, up from 27.8% in 2022 and 26.7% in 2021. Women also represent 30.5% of management positions,
and 22.6% of management positions in revenue-generating functions. In addition, 37.5% of members of the GEB
and 33.3% of members of the Board of Directors (BoD) are women, as are 30.3% of senior managers who report
directly to a member of the GEB.
Due to variations in legal requirements and historical progress, we take a country-specific approach to increasing
the representation of ethnic minorities, with a particular focus on making progress in the US and the UK, where
ethnicity data is more readily available. As at the end of 2023, ethnic minorities held 24.3% of Director level and
above roles in the UK, up from 23.4% in 2022 and 21.9% in 2021, and 2.1% of these roles were Black talent. As
at the end of 2023, ethnic minorities held 25.1% of Director level and above roles in the US, up from 20.5% in
2022 and 20.1% in 2021.

Sustainability Report 2023 | Social 51

Hire
Over the past five years, we have put strong foundational processes in place to optimize diverse hiring even in
uncertain markets and times of considerable attrition. We continue to focus on training recruiters and hiring
managers to help mitigate unconscious bias in the hiring process and hire the best-suited candidate for each role,
regardless of background. In 2023, our hiring ratios were strong for women at all levels (43.3% hired compared
with 40.9% headcount representation). Our ethnicity hiring ratios improved for US talent (46.9% hired compared
with 31.9% headcount representation), UK talent (40.4% hired compared with 29.2% headcount representation),
and for UK Black talent (16.4% hired compared with 3.6% headcount representation).
To support talent who have been out of the workforce, our UBS Career Comeback and the Credit Suisse Real
Returns programs were designed to support talent returning from a longer career break or career shift. Introduced
in 2016 and offered globally since 2019, UBS Career Comeback helped 19 participants (15 women and 4 men)
return to corporate jobs in 2023, and a total of 253 individuals since its inception. Since the launch of the Credit
Suisse Real Returns program in 2014, 363 of the 543 participants were hired into permanent roles after the
program. In 2023, the program helped 11 participants (10 women and 1 man). Going forward, the Credit Suisse
program will be retired.
Develop
Part of building an inclusive workplace is providing equitable access to advancement opportunities. To help ensure
employees at all career stages have equitable development opportunities, we sponsor key talent and leadership
development programs. As examples, in 2023, our new Growth Alignment Experience was launched for Associate
Director and Director level employees of UBS Group excluding Credit Suisse in the US identified through a self-
nomination process. Over a six-month period, 50 initial participants worked with external coaching professionals
to enhance their strategic planning skills, expand their networks and build connections. Selected ethnic-minority
employees in the UK at Associate Director and Director levels were invited to participate in Not in Your Image, a
nine-month development program to build skills and leadership readiness in which they were paired with a senior
sponsor for longer-term career development. In addition, in the US and the UK, we participate in the Executive
Leadership Council’s Institute for Leadership Development and Research, which offers leadership development and
action-based planning for Black professionals, to facilitate individual growth that in turn strengthens our talent
pipeline.
The strength and potential of our development programs and talent processes were reflected in female promotion
rates for 2023 at Director, Executive Director and Managing Director levels. For example, 35.6% of Director level
and above promotions were female (compared with 31.5% in 2022). Similarly, the US ethnic minority rate for
Director level and above promotions was 33.9% in 2023 (vs. 19.6% in 2022) and the UK ethnic minority rate for
Director level and above promotions was 28.7% in 2023 (vs. 24.8% in 2022).
Belong
A sense of belonging helps drive engagement and is important for overall well-being. We strive to create an
environment where every employee feels they have a place and are recognized and respected for who they are and
what they add to our workplace. Many of our policies, including fair pay and equal opportunities, along with highly
valued employee options such as hybrid working arrangements, support a workplace environment that fosters
belonging. In the same way, our 64 combined employee networks are vital to building a sense of belonging and
strengthening our inclusive culture. Whether the topic is gender, gender identity, sexual orientation, culture, ethnic
diversity, cultural background, disability, parenting, elder care, veteran status or life stage, employee volunteers in
every region host numerous events every year to promote understanding, engagement and belonging, and to
support our overall DE&I strategy. One of our networks’ key offerings is mentoring, including reverse mentoring.
For example, our race and ethnicity and gender networks use mentoring programs to help members level up
opportunities for career development. Allyship initiatives further extend engagement and reach, particularly for
gender, gender identity, and ethnicity efforts.
All employee networks were integrated by the end of 2023, enabling us to combine programming and resources
and to extend our networks’ impact to a much larger audience.

Sustainability Report 2023 | Social 52

Our commitment to the Valuable 500, a global business collective of 500 CEOs and their companies, who innovate
in support of disability inclusion, also continues to be a primary focus. We uphold this commitment by providing a
barrier-free application, recruiting and onboarding process for all candidates, providing inclusive disability
awareness training for HR professionals with a focus on working with people with disabilities. Providing toolkits for
line managers and all employees enables them to leverage disability etiquette, facilitate accessible meetings, and
more, and we support and promote our Ability employee networks, world-wide. In 2023, we also implemented
robust global accessibility standards that inform our Disability strategy, and our digital accessibility and IT specialists
began implementing the latest international Web Content Accessibility Guidelines (WCAG 2.2) to further enhance
and optimize our digital accessibility.
› Refer to ubs.com/diversity for additional information on diversity, equity and inclusion topics and progress against
our aspirational goals
› Refer to ubs.com/employees or ubs.com/careers for more topics of interest to employees and potential applicants
› Refer to the “Supporting our strategic goals – our engagement in partnerships” section of the Supplement to the
UBS Group Sustainability Report 2023, available at ubs.com/sustainability-reporting, for more information about
our external commitments pertaining to DE&I

Sustainability Report 2023 | Social 53

Driving social impact
Social Impact has continued to be a strong differentiator, with its activities underpinning our sustainability and
impact strategy. With the integration of Credit Suisse, we will continue to put clients and people first across the
combined organization, helping clients maximize their impact locally and globally.

Our vision is to contribute to and scale an impact economy, an economy that values the
well-being of all people and the planet. This means building partnerships that drive greater
impact transparency, more impact ventures and innovative ways of financing and paying for
impact.
Philanthropy services and collective impact
More than half of the world’s population is still not covered by essential health services.1 More than 648 million live
below the international poverty line, with up to 40 million living in modern slavery.2 Over 600 million young people
lack basic mathematics and literacy skills.3 Adding to these challenges, climate change and the degradation of
nature are furthering inequalities. Despite exponential growth, philanthropy alone is not enough to fill the funding
gap required.
We believe that by working collectively, philanthropists and public and private organizations have the potential to
create lasting change and maximize a positive impact for people and planet. We provide comprehensive advice,
insights and execution services, working with our clients and finding ways to tackle some of the world’s most
pressing social and environmental problems. We aim to mobilize USD 1 billion in philanthropic capital and positively
impact over 26.5 million people by 2025 (cumulated since 2021).
Collective impact
The power of philanthropic partnerships will be critical in achieving systemic scalable change. Led by our in-house
philanthropy team, we have three Collectives comprising philanthropists who bring together their efforts, skills and
resources during a two-year learning journey. By combining our expertise and investor capital, our aim is to fund
initiatives that address child protection, climate change, and health and education-related issues. Each Collective
provides investors with the opportunity to work alongside peers and expert practitioners to achieve systemic
change. An important part of the Collectives journey is for clients to experience the impact of those programs they
are funding.
Members of the UBS Collectives, namely, the Accelerate Collective, the Climate Collective and the Transform
Collective, concluded their two-year journey in 2023, with new cohorts for each Collective ready to launch in
January 2024.
The UBS Optimus network of foundations’ program team is key in supporting the impact of the UBS Collectives
and identifying the partners we work with across the three Collectives in order to ensure our clients are making an
effective and scalable 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. Their charitable
donations can be invested within the parameters they select (such as capital, growth or income), helping them
grow their fund to give grants at a later date. Administrative fees are borne by UBS. UBS offers these services in
Switzerland, Singapore and the UK, and in 2023 they were launched in the Hong Kong SAR, with USD 317.7 million
in donations in 2023.4

1 Based on information from the World Health Organization, see who.int/news/item/18-09-2023-billions-left-behind-on-the-path-to-universal-health-coverage

2 Based on information from the World Bank, see https://blogs.worldbank.org/developmenttalk/half-global-population-lives-less-us685-person-day# and
https://www.iom.int/news/more-40-million-modern-slavery-152-million-child-labour-around-world
3 Based on information from UNICEF, see https://www.unicef.org/education
4 Figures provided for UBS Optimus network of foundations and donor-advised funds are based on unaudited management accounts and information available
as of January 2024. Audited financial statements for Optimus and donor-advised foundation entities are produced and available per local market regulatory
guideline.

Sustainability Report 2023 | Social 54

UBS Global Visionaries
Through our UBS Global Visionaries program, we aim to (i) create opportunities for clients and prospective clients
to connect with leading social entrepreneurs; and (ii) help the best entrepreneurs focusing on social and
environmental issues to scale their positive change by expanding their network, building capacity and raising
awareness about their work. Since the program started in 2016, we have onboarded and supported 85
entrepreneurs to accelerate their impact.

UBS Optimus network of foundations

The UBS Optimus network of foundations also aims to contribute to an impact economy that meets the long-term
needs of children and preserves the natural environment, now and in the future. It connects clients with programs
that are making a measurable, long-term difference to the most serious and enduring social and environmental
problems. With a 24-year track record, it is focused on incubating impact ventures, scaling impact through
partnerships and achieving impact transparency. In 2023, the UBS Optimus network of foundations had a presence
in 9 global locations. It is now working on harmonizing the Credit Suisse program portfolio.
In 2023, it raised USD 328 million in donations, including UBS matching contributions, and committed USD 305.9
million in grants from the Foundation.4,5 Key activities of the UBS Optimus network of foundations in 2023 are set
out below.
Social and blended finance
The UBS Optimus network of foundations is actively developing larger-scale investment vehicles, in partnership with
other parts of the bank, by using a blended finance approach. In 2023, it secured major investor commitments for
a USD 100 million SDG Outcomes blended finance initiative with Bridges Outcomes Partnership, British International
Investment (the UK’s development finance institution) and the US International Development Finance Corporation.
These anchor investors participated alongside private investors, including Legatum, family offices (such as the Tsao
Family Office) and other high net worth individuals.
Partnerships
The UBS Optimus network of foundations works to build capabilities, capacity and partnerships to strengthen the
social finance ecosystem. In 2023, it selected eight organizations for the first cohort of the 100x Impact Accelerator,
a global impact accelerator based at the London School of Economics. Seven of the eight selected ventures operate
in emerging markets and six out of the eight have female founders or co-founders. Its objective is to work closely
with these entrepreneurs as they grow into social zebra organizations.6 Each organization received GBP 150,000 in
capital and participated in a 12-week program focusing on scale, impact measurement and fundraising strategies.
In 2023, the UBS Optimus network of foundations continued to develop its partnership with the State Secretariat
for Economic Affairs, the Swiss Development Cooperation Agency and the Credit Suisse Foundation. One objective
of the SDG Impact Finance Initiative is to raise CHF 100 million for innovative financial solutions which can mobilize
new capital around the SDGs, and work toward our target of unlocking CHF 1 billion in private finance by 2030,
thereby accelerating progress toward delivering the SDGs. In 2023, the four founding donors committed nearly a
third of the fundraising target and started disbursing grants to the seven winners of its first call for proposals,
tackling climate change, education access and quality, smallholder farming and SME support.
Impact transparency
The UBS Optimus network of foundations’ vision is for impact to be measured using the highest quality standards
and for that information to be publicly available for the benefit of all. In 2023, it developed and rolled out an owned
industry-aligned rating tool that aims to assess programs against three impact categories: breadth of impact; depth
and proof of impact; and likelihood of scaling and sustaining impact. This facilitates: the prioritization of programs
that contribute the most to the UBS Optimus network of foundations’ strategic impact objectives; the identification
of anticipated value added; the documentation of actions that can be taken to improve the program and impact
potential, and the consistent and transparent communication of complex information around its impact objectives.
In 2024, the UBS Optimus network of foundations will be assessing how the impact rating tool can bring
additionality to the social impact landscape globally.

4 Figures provided for UBS Optimus network of foundations and donor-advised funds are based on unaudited management accounts and information available
as of January 2024. Audited financial statements for Optimus and donor-advised foundation entities are produced and available per local market regulatory
guideline.
5 The UBS Optimus network of foundations receives donations from all Business Divisions, with the majority stemming from Global Wealth Management.
6 A Zebra represents a business model that strives for both profitability and positive societal impact, with a strong focus on sustainability, community involvement
and cooperation. This concept is presented as an alternative to the traditional Silicon Valley unicorn model that often prioritizes rapid growth and high returns
over other considerations.

Sustainability Report 2023 | Social 55

Emergency philanthropy
The UBS Optimus network of foundations and Social Impact raise funds and support partners providing emergency
relief in response to disaster situations, and sometimes launch dedicated appeals to support these efforts. Whenever
an appeal is launched by the UBS Optimus network of foundations, it will act swiftly and mobilize funding from
clients and employees to support immediate relief, as well as longer-term recovery and resilience.
Where budgets allow, it also aims to provide unrestricted support to emergency-relief-focused NGOs, so that it
contributes toward strengthening the humanitarian ecosystem; supports the development of monitoring,
evaluation and learning capacities and evidence-based decision-making by implementing partners; and supports
forgotten crises that receive little media attention.
In 2023, the UBS Optimus network of foundations raised and started to distribute more than USD 25.4 million for
the Turkey and Syria earthquake, the Hawaiian wildfires, flooding in Pakistan and Italy and people affected by the
humanitarian crisis in Israel and Gaza. It also continued to distribute USD 56 million raised for the Ukraine Relief
Fund launched in 2022. To date USD 43.3 million has been granted to our partners on the ground.

UBS’s charitable contributions

Direct cash contributions by UBS AG (including through partnerships in the communities that we operate in) and
our affiliated foundations in Switzerland, as well as contributions to the UBS Optimus network of foundations,
amounted to USD 62.6 million in 2023.7
› Refer to the “Supplement to Social” in the Supplement to this report available on ubs.com/sustainability-reporting
for an overview of our charitable contributions in 2023 and additional information

Communities
We aim to maximize our impact in the local communities that we are a part of because we recognize that our long-
term success depends on their health and prosperity. We regard our ongoing investment in these areas as central
to furthering the economic and social inclusion of those people that our activities support. We have a strategic
focus on education and the development of skills, as we believe these topics are where our resources can make the
most impact.
We endeavor to create business and community impact by identifying innovative and high-quality programs that
are aligned to our business, providing focused financial and human support, including employee volunteering
programs and client participation, where appropriate. These programs are delivered through local execution and
partnerships operating under a global framework with coordination across regions.
Employee volunteering
Our well-established employee volunteering model has been adapted to meet the needs of our new hybrid ways
of working, with both face-to-face and virtual opportunities to support our local communities. We have global
targets for employee engagement through volunteering, which are built bottom-up and on a best-efforts basis. In
2023, we successfully engaged 38% of our global workforce in volunteering, and 45% of the 199,633 volunteer
hours were skills-based.

7 Lower cash contributions compared to previous years are due to the decision to exclude business-related contributions since these are donations made outside
of UBS’s 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 2023 | Social 56

Respecting human rights
We are committed to respecting and promoting human rights, as set out in the UN Guiding Principles on Business
and Human Rights. As human rights standards are embedded in the Sustainable Development Goals (SDGs),
respecting human rights is a key consideration in our business practices. When assessing our potential human rights
impacts, we focus on three key stakeholder groups (employees, clients and vendors), as well as society at large.
› Refer to “Supporting our strategy through stakeholder engagement” section of the Supplement to the UBS Group
Sustainability Report 2023, available at ubs.com/sustainability-reporting, for more information about our
interactions with other stakeholders, including civil society groups

Employees: We are committed to respecting human rights standards through our 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 the Supplement to this report,
available at ubs.com/sustainability-reporting, for more information about UBS’s human resources policies and
practices

Clients: We aim to provide our 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
(including human rights) and climate risk policy framework.
› Refer to the “Supporting opportunities” section of this report for more details about our approach to sustainable
finance and investing and to the Supplement to this report, available at ubs.com/sustainability-reporting, for more
information about the sustainability and climate risk policy framework

Vendors: We are committed to reducing the negative societal impacts of the goods and services UBS purchases.
That is why, when we are establishing new contracts or renewals, we identify high-risk 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 “Managing our supply chain responsibly” section below for more details about our responsible supply-
chain management

Our human-rights-related commitments and actions are set out in our 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 our Human Rights Statement and our Modern Slavery and Human Trafficking Statement, available at
ubs.com/sustainability-reporting
› 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 2023 | Social 57

Managing our supply chain responsibly
We embed environmental, social and governance (ESG) standards into our sourcing and procurement activities. The
Responsible Supply Chain Management (RSCM) framework for UBS Group excluding Credit Suisse is based on
identifying, assessing and monitoring vendor practices in the areas of human and labor rights, the environment,
nature, health and safety, and anti-corruption. Central to our RSCM framework are our Responsible Supply Chain
Standards (RSCS), to which our direct vendors are bound by contract. The RSCS define our 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 2023, the Credit Suisse Third-Party Risk Management due diligence approach continued to manage
reputational risk from an ESG perspective for Credit Suisse AG. To ensure a consistent and high standard of
reputational risk coverage across the combined organization, the RSCM framework will be rolled out to Credit
Suisse in 2024.
› Refer to ubs.com/suppliers for the RSCS

Identifying, assessing and monitoring high-impact vendors

In 2023, 100% of new vendors were screened for environmental and social risk. In addition, for UBS Group
excluding Credit Suisse, we identify high-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 RSCS. These vendors are required to provide disclosures about their management practices
and corresponding evidence that is evaluated by a specialist team. Actual and potential negative impacts that are
considered in the impact assessment of purchased goods and services 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.
If our assessment reveals any non-compliance with our standards, we define and agree (together with the vendor)
specific improvement measures, and closely monitor the implementation progress of these remediation actions.
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, UBS’s 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.
High-impact vendors go through assessments against UBS’s RSCS. We also undertake assessments on some non-
high-impact vendors where we have significant ongoing relationships. In 2023, for UBS Group excluding Credit
Suisse, we carried out risk-based due diligence assessments on 266 vendors of newly sourced contracts, renewals
and ongoing contracts. 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 for
UBS Group excluding Credit Suisse, 42% were considered in need of improving their management practices.
Specific remediation actions were agreed upon and implementation progress is being closely monitored.
Additionally in 2023, for Credit Suisse, 15 vendors were assessed against Credit Suisse’s environmental and social
standards. No actual significant ESG risk was identified with any of the vendors that were assessed for both UBS
Group excluding Credit Suisse and Credit Suisse. We have an overall assessment coverage of 20% of vendors by
spend for UBS.

Sustainability Report 2023 | Social 58

Contracts in high-risk countries include specific contractual requirements relating to environmental management,
human rights, labor rights and anti-corruption. 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 is not possible, the supplier relationship may
ultimately be terminated.
In 2023, none of our vendor relationships were terminated as a result of our assessments and no human rights
issues with active vendors were identified or reported. In part, this was due to having carried out our assessment
process prior to the signing of contracts.

Embedding supplier sustainability in our everyday activities

The goods and services we buy, how we buy them, from where and from whom 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 procurement policy includes taking account of the lower ESG impact of
products/services when selecting a vendor. Within the policy, we have also included mandated minimum weighting
for ESG criteria in our tenders, as part of vendor evaluation and selection. This ensures that we award business to
vendors with strong ESG performance and incentivize vendors who want to work with us to show commitment
and improvement in these areas. This approach will be extended to Credit Suisse in 2024.
We care about our vendors’ ESG performance and want to work with vendors that have strong ESG credentials,
drive positive environmental and social impact, and are transparent about their climate disclosures. We leverage
ESG market data which gives us deeper insight into our vendors’ ESG performance and encourages them to
continuously improve their practices. In 2023, 90% of spend in deals >USD 1 million were signed with vendors
having an adequately high ESG performance.
› Refer to the “Climate-related methodologies” in the Supplement to the UBS Group Sustainability Report 2023,
available at ubs.com/sustainability-reporting, for more for details on the methodology applied

We have also been reviewing our purchasing catalogues to reduce the number of items and move to sustainable
products wherever possible. This year, we focused on driving responsible consumption and removed 444 items
(67%) from our office supplies catalogues. This approach will also be applied to Credit Suisse in 2024 and 2025.
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.
› Refer to our “Supplier Code of Conduct,” available at ubs.com/suppliers
› Refer to our “Global Supplier Policies,” available at ubs.com/global/en/our-firm/suppliers/contracting-standards
› Refer to the “Monitoring the environmental impact of our supply chain” section of this report on the reduction of
greenhouse gas emissions in our supply chain

Inclusive growth in the supply chain

In 2023, we extended our efforts globally to support inclusive growth in the use of diverse suppliers that are
certified/recognized by a local/national government authority or advocacy organization. These include, but are not
limited to, minority-owned (including aboriginal-owned and indigenous-owned), women-owned, veteran-owned,
disabled-owned, and LGBTQ-owned, as well as disadvantaged-owned and small businesses. We actively 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. Globally, our diverse spend accounts for 8.5% of third-party spend.
We are members of diverse supplier advocacy organizations which give us insights into diverse supplier markets
across the globe, as well as supporting supplier outreach efforts and opportunity matching.
› Refer to “Supplier Diversity” at ubs.com/global/en/our-firm/suppliers/supplier-diversity
› Refer to “Supporting our strategic goals – our engagement in partnerships” section of the Supplement to the UBS
Group Sustainability Report 2023, available at ubs.com/sustainability-reporting, for more information on our
sustainability- and impact-related memberships

Sustainability Report 2023 | Social 59

Leveraging partnerships to help suppliers build capability
Recognizing the role small and medium-sized enterprises (SMEs) play in fostering positive change across our supply
chain, we have partnered with Heart of the City, a UK charity dedicated to supporting SMEs on their journey toward
sustainability. Through a series of workshops, masterclasses and webinars, the charity empowers small and diverse
business owners in the UK to navigate their sustainability journeys effectively. Not only do these activities help drive
sustainability beyond our immediate supply chain, they also support the communities in which we operate.
We are also partnering with the United Nations Global Compact. This year, we invited Swiss SME suppliers to
participate in a series of six sessions organized by the UNGC Network Switzerland on sustainability topics, including
climate action, environmental stewardship, human and labor rights. These sessions offer our vendors opportunities
to exchange insights, acquire knowledge, and address challenges related to sustainability. Building their knowledge
and sustainability capabilities helps to support our sustainability goals through improved vendor compliance,
reduces risks from environmental or ethical issues and builds commitment toward shared sustainability objectives.

Sustainability Report 2023 | Social 60

Supporting opportunities
Total Sustainable Investments The SI proportion of UBS In the Investment Bank UBS Group retained our
(SI) of UBS AG reached USD AG total invested assets we facilitated

292
reached

102 1st
6.5%
rank position in
billion Swiss franc-denominated
representing an increase of green, social, sustainability, GSSS bond issuance in
10% year on year1 or sustainability-linked (GSSS) our home market of
bond transactions globally2 Switzerland, with a 50%
market share3

UBS Group is the

2nd
largest manager of open-ended funds and ETFs by SI invested assets using Morningstar’s classification4

1 UBS AG Sustainable Investing invested assets (IA). This figure does not contain any Credit Suisse products and associated IA classified under the Credit
Suisse Sustainable Investing Framework (SIF). Credit Suisse IA in accordance with the SIF are reported separately and are not directly comparable with
the UBS figures due to material differences in the underlying sustainable investment frameworks and definitions being applied. Refer to Appendix 3 –
Entity-specific disclosures for Credit Suisse AG for further details. 2 Investment Bank figure is 102 of which UBS AG figure is 93 and Credit Suisse
figure is 16. The metrics include transactions such as, but not limited to, Investment Bank Global Banking bonds issued under the voluntary ICMA
Green Bond Principles, Sustainability Bond Principles, and Sustainability-Linked Bond Principles. The principles include a recommendation that the issuer
appoints an external review provider to undertake an independent external review (e.g., second-party opinion). This is consistent with market practice.
The metrics also include sustainability-themed bonds (e.g., Transition). Transactions are counted only once, there is no double counting (e.g., if and
where UBS AG and Credit Suisse were involved in the same transaction). UBS performed an assessment for Credit Suisse green, social, sustainability and
sustainability-linked bonds reported in the 2023 Sustainability Report and deemed them to be aligned to UBS sustainable bond guidelines. 3 Bloomberg.
4 Morningstar. Rank represents invested assets stated under the branding names of UBS and Credit Suisse combined. UBS AG standalone ranks 3rd.

Sustainable finance metrics listed above and throughout this chapter are either for UBS Group, including Credit
Suisse entities, or UBS AG (referenced accordingly), depending on data availability and the degree to which
sustainable product frameworks could already be brought into alignment in 2023. For 2024 it is our intention to
fully incorporate Credit Suisse data into our disclosures.

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. At the same time, the regulatory environment continues to evolve, as
do the associated capital-raising and investment opportunities. Against this backdrop, we are committed to
supporting our clients’ sustainability ambitions, whether their focus is on reducing the carbon emissions footprint
of their business or portfolio, or encouraging a fairer and more prosperous society.
Through our sustainable finance product and service offerings, we target 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.

Sustainability Report 2023 | Supporting opportunities 61

Sustainable finance ambitions

In accordance with our ambitions, our sustainable

finance product offering is evolving across four areas:

Investing Financing Research and advisory Data, platforms and

Sustainable investing Sustainable financing Solutions guiding our client Interactions
solutions for private and solutions for real estate clients on their sustainability ESG analytics, scoring, reporting,
institutional investors and corporate purposes transition journey tools and client support through
our interactions

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 industry. We consider sustainable finance to include any financial product or service (including both investing
and financing solutions) that aims to explicitly align with and/or contribute to sustainability-related objectives, while
targeting market-rate risk-adjusted financial returns. Sustainability-related objectives may include, but are not
limited to, the Sustainable Development Goals identified in the United Nations’ 2030 Agenda for Sustainable
Development.
This approach to sustainable finance is also reflected in our UBS AG sustainable investing framework, which
specifically defines “sustainability focus” and “impact investing” strategies. Both categories reflect a defined and
explicit sustainability intention of the underlying investment strategy. This intentionality differentiates them from
traditional investment products, or those that consider sustainability-related aspects but do not actively and explicitly
pursue any specific sustainability objective, such as ESG integration or exclusions-only approaches. The way we
define sustainable investments is reviewed on a regular and ongoing basis in order to ensure that it appropriately
considers evolving market practice, client expectations and relevant regulatory guidance.
Investment approaches

UBS’s definition of sustainable investments

Traditional investing Sustainability focus Impact investing

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

› Refer to the Supplement to this report, available at ubs.com/sustainability-reporting, for more on ESG integration
and exclusion
› Refer to the ”Sustainability and climate risk policy framework“ or “Key terms and definitions” section of the
Supplement to the UBS Group Sustainability Report 2023, available at ubs.com/sustainability-reporting for our
definitions of sustainable bonds and loans

Sustainability Report 2023 | Supporting opportunities 62

Market developments in 2023
2023 was dominated by persistently high inflation and interest rates across many key jurisdictions, correspondingly
high energy prices and significant geopolitical volatility and uncertainty. These challenges also negatively
contributed to tensions associated with sustainability-related industries and political discussions. Notwithstanding
these challenges and tensions, sustainable finance business opportunities continued to broaden and deepen.
Interest in sustainable investing (SI) and financing solutions continued to be robust. This was bolstered by major
legislative initiatives, including the Inflation Reduction Act in the United States and the European Union’s Green
Deal Industrial Plan, as well as various ongoing regulatory initiatives.
At the same time, investors, corporations, and regulators have continued to pay close attention to greenwashing
risks. Sustainable product frameworks have evolved, and it is widely expected that standards will be subject to
further amendments, given that certain frameworks are still under review and subject to further development or in
the early stages of implementation (e.g., the EU Sustainable Finance Disclosure Regulation and the UK Sustainability
Disclosure Regulation).
Throughout the year investors took advantage of higher interest rates by moving to income-producing asset classes
and money market products, with the latter attracting over USD 1.1 trillion1 in net inflows. Increased investor
appetite for fixed income products was accompanied by corresponding outflows from equity funds.
Investor appetite for sustainability-oriented funds and ETFs continued. Once again, after 2022 and 2021, inflows
into sustainable investment funds in 2023 outpaced those into their non-SI counterparts, albeit at more modest
levels compared to the highs seen in 2021. Throughout the year, investors expanded their sustainable investment
allocations into alternative asset classes, including hedge funds, real estate or infrastructure.
This was also reflected in our clients continued interest in SI solutions. Over the course of 2023, UBS AG’s SI invested
assets rose to USD 292.3 billion as of 31 December 2023, compared with USD 266 billion at the end of 2022,
representing a year-on-year increase of 10%. A combination of factors contributed to this growth, including new
product launches, net new money inflows as well as market performance. SI invested assets accounted for 6.5%
of UBS’s total invested assets at year-end 2023.
We expect the acquisition of the Credit Suisse Group to provide UBS with additional sustainability-focused assets
and clients, a wider selection of products and services and even greater in-house expertise. However, there are
areas of variance between the two organizations’ reporting and product standards that we are actively working to
analyze and harmonize. UBS sustainable product standards will be the benchmark going forward, with Credit
Suisse’s sustainable financing and investment products undergoing a detailed assessment to ensure compliance
with our standards, frameworks and expectations.
The table below provides additional detail on SI invested assets for UBS AG. As stated before, this table and section
do not contain any values related to Credit Suisse sustainable investment products.
› Refer to the “Appendix 3 – Entity-specific disclosures for Credit Suisse AG” in the appendices to this report for more
information about the Credit Suisse Sustainable Investment Framework (SIF)

Sustainable Investments1
For the year ended % change from
USD billion, except where indicated 31.12.23 31.12.22 31.12.21 31.12.22
Total invested assets (UBS Group) 5,714.1 3,980.9 4,614.5 44
of which: total invested assets (UBS AG) 4,504.7 3,980.9 4,614.5 13
Sustainable investments (UBS AG)2
Sustainability focus3 270.4 246.9 222.7 10
Impact investing4 21.8 19.2 28.1 14
Total sustainable investments5,6,7 292.3 266.0 250.8 10
SI proportion of total invested assets (%)8 6.5 6.7 5.4
1 The table above details UBS AG Sustainable Investing Invested Assets (IA) and the evolution thereof. This table does not contain any Credit Suisse products and associated IA classified
under the Credit Suisse Sustainable Investing Framework (SIF). Credit Suisse IA in accordance with the SIF are reported separately as figures are not directly comparable with the UBS
figures due to material differences in the underlying sustainable investment frameworks and definitions being applied. Please see "Appendix 3 Entity-specific disclosures for Credit Suisse
AG" for further details. 2 We focus our sustainable investment reporting on those investment strategies exhibiting an explicit sustainability intention. 3 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.
4 Strategies that have explicit intentions of generating measurable, verifiable and positive sustainability outcomes. Impact generated is attributable to investor action and/or contributions.
5 Certain products have been reclassified during 2023 for reasons including, but not limited to, an evolving regulatory environment, periodic monitoring of the product shelf, and
developing internal classification standards. Impact of these movements on sustainable investment invested assets was a net reduction by USD 7 billion in UBS AG Global Wealth
Management Americas and a net reduction by USD 6 billion in UBS AG Asset Management. 6 In line with general market practice, IA reported for sustainable investments include
limited amounts of instruments not classified as sustainable investment, including cash and cash-like instruments that each fund and portfolio hold for liquidity management purposes,
as well as, subject to clear, limiting restrictions, client-directed investments included in sustainable investing mandates managed by UBS Asset Management. 7 The impact investing
and total sustainable investments (UBS AG) disclosures for 31.12.22 and 31.12.21 reporting periods have been restated to remove investments that were duplicated in the disclosed
values. As a result, the values disclosed for 31.12.22 and 31.12.21 for both categories have each decreased by USD 1.6 billion and USD 0.4 billion, respectively. 8 Total invested assets
(UBS AG) are used to calculate the SI proportion.

1 Morningstar

Sustainability Report 2023 | Supporting opportunities 63

Following a year of subdued debt market issuance activity in 2022, green, social, sustainability, and sustainability-
linked (GSSS) bond supply rebounded in 2023, rising 7% year-on-year (YoY).2 The growth was driven by bonds
with green (+15% YoY) and sustainability (+7% YoY) labels. We saw banks and corporate issuers favoring green
bonds, while sovereign, supranational and agency (SSAs) issuers primarily opted for the latter, given a broader mix
of green and social assets. Sustainability-linked issuance dropped 25% year-on-year driven by heightened market
scrutiny around the materiality and ambition of the key performance indicators (KPIs) used, compounded by SLB
issuers failing to reach their annual targets. Regionally, EMEA issuers accounted for 52% of 2023 FY global supply,
while APAC issuers were responsible for 29%. In line with the overall GSSS bond market dynamics, the number of
transactions facilitated by the Investment Bank in 2023 increased to 102.3

Looking ahead
Despite another relatively challenging and turbulent year for markets, we believe the strong market growth of
sustainable investing and financing products in recent years and a general increase in investor demand for
innovative sustainable finance solutions indicates clients’ ongoing desire to pursue sustainability-related objectives.
That, in turn, is encouraging a greater level of active investor ownership, with rising levels of corporate engagement
and system-wide advocacy.
The ongoing relevance of sustainability for institutional investors and senior management of the world’s largest
companies was once again evidenced by a 2023 Bloomberg Intelligence survey of C-suite executives and senior
institutional investor representatives4. All told, 85% of investors surveyed believe that incorporating ESG in their
investments leads to better returns, more resilient portfolios and enhanced fundamental analysis, while 84% of
surveyed executives said ESG helps them shape a more robust corporate strategy. These are strongly supportive
results which confirm our belief that incorporating sustainability-related considerations is ultimately good business
practice and will continue to inform business leaders’ forward thinking and planning.
Additionally, our own 2023 UBS AG Asset Management client survey showed 74% of clients expect to increase
their allocation to sustainable investments over the next five years. The survey results also show an encouraging
growth in satisfaction with the way in which we are increasing exposure to sustainable investments within the
various asset classes.
At the same time, high net worth individuals (HNWI) appear to have become more selective about how they grow
their sustainable investments, after having done so quite aggressively in 2022. A 2023 Global Wealth Manager
Investment Survey by Mercer5 noted that 34% of respondents said their clients want to grow their exposure to
sustainable investments, while another 34% wanted to keep it at the same level. This followed 80% of respondents
to the 2022 survey having reported rising client demand for sustainable investments.

Meeting diverse needs

There is no typical UBS client. Each one has varying needs, but all expect outstanding advice and service, a wide
range of product choices, and an excellent client experience.
Our clients span ultra high and high net worth individuals, families and family offices worldwide, affluent clients in
selected markets, and an array of corporate, institutional, private, small and medium-sized enterprises, as well as
retail clients in Switzerland.
We work hard to service our clients’ diverse sustainable financing, investing and/or advisory needs in the best way
possible, leveraging the knowledge of our specialist teams. An established rationale guides our interactions with
clients, and it starts by building an understanding of the relevance of sustainability for their business and/or
investment portfolio.
The following graphic provides an overview of sustainable finance products and services offered by UBS. Included
here for illustrative purposes, it is not an exhaustive representation of our sustainable finance and investing offering,
which 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.
2 Bloomberg, all market figures in this paragraph.
3 Investment Bank figure is 102 of which UBS (AG) figure is 93 and Credit Suisse figure is 16. The metrics include transactions such as, but not limited to,
Investment Bank Global Banking bonds issued under the voluntary ICMA Green Bond Principles, Sustainability Bond Principles, and Sustainability-Linked Bond
Principles. The principles include a recommendation that the issuer appoints an external review provider to undertake an independent external review (e.g.,
second-party opinion). This is consistent with market practice. The metrics also include sustainability themed bonds (e.g., Transition). Transactions are counted
only once, there is no double counting (e.g., if and where UBS AG and Credit Suisse were involved in the same transaction). UBS performed an assessment for
Credit Suisse green, social, sustainability and sustainability-linked bonds reported in the 2023 Sustainability Report and deemed them to be aligned to UBS
sustainable bond guidelines.
4 bloomberg.com/company/press/bioomberg-intelligence-survey-finds-investors-and-c-suite-embrace-esg-despite-concerns/
5 mercer.com/insights/investments/portfolio-strategies/wealth-management-investment-survey/

Sustainability Report 2023 | Supporting opportunities 64

A sustainable finance offering for all our clients

Research, Advisory, Data analytics,

Investing Financing
Platforms & other services

– Sustainable discretionary mandates – Real Estate related financing ² – Sustainability research and thought
– Sustainable modules for traditional leadership
Global Wealth Management

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
(incl. infrastructure and real estate)
– Sustainable hedge funds
– Sustainable structured products
– Direct investments in sustainable
equities and bonds

– Sustainable separately managed – Sustainability thought leadership

Asset Management

accounts (SMA) ¹ – Sustainability analytics and reporting for

– UBS Sustainable public market funds clients (standardized and customized)
(actively managed and indexed)
– UBS Sustainable private markets funds
(incl. infrastructure and real estate)
– UBS Sustainable hedge funds
– Sustainable mandate solutions (actively
managed and indexed)
Investment

– UBS Sustainable structured – Green, social, sustainability and – ESG Advisory

Bank

products and services sustainability-linked bonds – ESG Research

– Green, social, sustainability and – ESG Data
sustainability-linked loans – Carbon market (trading) solutions

– Sustainable discretionary mandates – Real Estate related financing – Sustainable deposits solution
Corporate Banking

– Sustainable modules for traditional – Green, social, sustainability and – Carbon footprint sizing
Personal &

discretionary mandates sustainability-linked bonds – Renovation Journey, tools,

– Sustainable public market investment – Sustainability-linked loans partnerships and ecosystems
funds (actively/passively managed) – Sustainability reporting and analysis
– Sustainable private market funds – Sustainability research
(incl. infrastructure and real estate) and thought leadership
– Philanthropy solutions

1 Clients booked in the US 2 Clients booked in Switzerland 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.

› Refer to the “Basis of Reporting” in the Supplement to this report, available at ubs.com/sustainability-reporting, for
details of which products are included in the calculations of sustainable product metrics.

Sustainability Report 2023 | Supporting opportunities 65

 Global Wealth Management
Building on our unrivalled global scale and footprint in wealth management, with USD 3.8
trillion in assets under management, 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
GWM
dedicated sustainability-focused investment research, including strategic asset allocation,
thematic and asset-class views. These then translate 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 Credit Suisse Group offers Global Wealth Management several discrete opportunities to enhance
our existing sustainable investing offering with potentially complementary capabilities and resources. These
opportunities include enhancement of transparency and reporting on the sustainability characteristics of
investments and portfolios; as well as the addition of more subject-matter experts who bring a focus on client
engagement and internal capacity building. We also look forward to bringing select Credit Suisse sustainable and
impact investing solutions onto the merged platform during 2024 and 2025. These solutions will be subject to
existing UBS AG Global Wealth Management sustainable investing frameworks, diligence, and instrument selection
approaches. Deviations in these approaches have already been identified, with findings integrated into the
migration planning. During the migration of solutions, clients, and assets, we will phase down dual governance,
with the aim of aligning under the existing UBS AG Global Wealth Management sustainable investing governance.

2023 highlights

Our UBS AG Global Wealth Our UBS AG Global Wealth Our UBS AG Global Wealth
Management clients’ impact Management clients’ discretionary Management clients could invest in

7
investing assets reached USD assets aligned to SI Strategic Asset
Allocation reached USD

11.2 billion1
22.5 billion2
private-market impact vehicles
aligned with the SDGs

1 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 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, subject to clear, limiting restrictions, client-directed investments
included in sustainable investing mandates.

Continued delivery of actionable investment insights

Global Wealth Management CIO continued to identify actionable sustainability-related investment opportunities,
including SI frameworks and strategies across carbon markets, selected areas of fixed income, such as securitized
debt, and thematic areas such as the circular economy. We publish a regular series of sustainable investment views,
including a monthly Sustainable Investing Perspectives series and a longer-term-focused quarterly Sustainable
InSights publication. They are complemented by the Sustainable Investing in Charts and SI Top Holdings reports,
both introduced during 2023.
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. A spectrum of topics
was covered during 2023, including impact investing, green-tech, opportunities arising from public capital programs,
carbon markets and the circular economy. In addition, we introduced a framework to help investors gain exposure to
securitized assets with a focus on sustainability, including mortgage-backed securities. We expect this area to provide
more opportunities for innovation as investors increase their focus on sub-asset classes within fixed income.

Sustainability Report 2023 | Supporting opportunities 66

We also continued to include sustainable investing insights in the CIO monthly Messages in Focus publication,
which provides private clients with tactical, actionable investment ideas. Additionally, the flagship CIO 2024 Year
Ahead publication outlined investment implications for sustainable investors in the year to come and discussed the
impact of decarbonization over the coming decade.
We further enhanced the methodology underpinning the CIO Sustainability Scores for issuers, which now covers
approximately 13,000 issuers and enables issuer-, fund-, and portfolio-level transparency to be delivered to clients.
Educating our clients and their advisors
Supporting our clients, prospects and advisors with timely research and education on sustainable investing is an
important part of the advice we provide. 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 2023, we delivered a range of voluntary learning opportunities at various client events, including the
APAC flagship sustainable finance conferences (which attracted more than 600 APAC clients), the Emerging
Successors Program, Own Your Worth Sustainability Summit, and the UBS x Unlocked Foundation Women’s
Summits. To complement these events, we also introduced additional sustainability-focused training opportunities
for advisors globally. These ranged from mandatory training modules to a series of virtual discussions with internal
and external subject-matter experts on topics like ESG politicization and investing in oceans.
› Refer to ubs.com/global/en/wealth-management/sustainable-investing for more information about our Global
Wealth Management’s sustainable investing insights
› Refer to the UBS Group Annual Report 2023 available on ubs.com/annualreport for more information on the overall
business and financial profile of UBS 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 on the proportion of
sustainable investment assets as part of UBS Group’s total invested assets

Sustainability Report 2023 | Supporting opportunities 67

AM1

Asset Management
Sustainable Investing (SI) has been an integral part of our Asset Management business for
over 20 years, grounded in the clear belief that, from our products and services to the way
we work and operate in society, sustainability means thinking and acting with the long
term in mind. The array of sustainable investment (SI) strategies we offer aims to drive
AM2
financial returns and sustainability outcomes.
Integration of Credit Suisse
In our combined organization, there is a continued focus on sustainability and innovation. We believe the
integration brings opportunities for an expanded client offering and a more influential “seat at the table” for
stewardship and engagement activities, given our increased asset base.
The existing UBS AG Asset Management SI product classification framework will remain in place and will be applied
to the Asset Management (Credit Suisse) products when onboarded to the UBS shelf, starting in 2024. Separate
governance structures remain in place as of end 2023, while, concurrently, progress has been made to align policies,
methodologies and frameworks. A joint governance forum has been put in place to support this alignment.

2023 highlights

At the end of 2023 UBS AG Asset At the end of 2023 UBS AG

Management managed Sustainable Asset management had
Focus and Impact Investing assets of USD

203 billion
35
net-zero ambition portfolios
available for our clients

Active Ownership

Asset Management corporate Asset Management actively Asset Management conducted

engagements on ESG topics achieved engaged with

56.5% 373 536

engagement meetings on ESG
positive progress against companies on ESG topics topics with investee companies
stated objectives

We are convinced that taking a focused, investment-led and outcomes-driven approach to active ownership brings
benefits to companies, their shareholders, and wider society. Effective engagement can help companies contribute
to value creation and protection at the company-specific and systemic levels, addressing both risks and
opportunities.
Climate
UBS AG Asset Management has been running a Climate Engagement Program for more than five years. In 2023,
we sharpened the program’s focus on engaging with companies to adopt targets and transition planning in line
with a net-zero pathway and increased the number of companies covered by the program. In addition to our direct
engagement, we continued to use collaborative initiatives to scale our impact, especially through our membership
of Climate Action 100+.

Sustainability Report 2023 | Supporting opportunities 68

We believe we can support industry leaders in accelerating the early adoption of transformative decarbonization
technologies. By way of example, in September 2023, we hosted an engagement event designed to accelerate
decarbonization in the shipping sector. Cargo owners, commodity shippers, marine engine manufacturers and low-
carbon fuel providers, as well as recognized experts, used the event to discuss key barriers to alternative fuels, such
as supply, technical complexities, and pricing. The event supported one of the main objectives of our Climate Action
fund. Launched in December 2022, the fund invests in attractively valued companies in emission-intensive industries
that need to decarbonize over time. We actively engage with these companies one-on-one, and across the value
chain, to monitor and support such efforts.
We also engage with companies to set climate targets in line with net-zero pathways, which we see as critical for
credible climate risk management and achieving the transition to a low-carbon economy. We were a signatory to
a campaign led by the Carbon Disclosure Project, encouraging over 2,000 companies to adopt science-based
climate targets. We were also co-signatories to two investor-led letters to policymakers, calling on them to
accelerate decarbonization goals at state-owned companies.
Linking our climate engagement with voting action is key to ensuring a continued clear alignment across our active
ownership approach. To support this, we have aligned our voting policy with our climate engagement efforts and
objectives in our policy framework and clarified our climate and net-zero expectations of companies. We have a
clearly defined set of criteria which we use to evaluate companies’ say-on-climate proposals.
We will further evaluate climate proposals against the following six key factors: climate governance, net-zero
ambition and targets, quality of decarbonization strategy, net-zero performance alignment, lobbying and policy
engagement, and use of offsets. We will also support shareholder proposals that seek information about issuers
adopting or adhering to relevant norms, standards, codes of conduct or universally recognized international
initiatives, including the recommendations of the TCFD.
We have a fiduciary duty and fundamental objective to act in the best financial interests of our clients to enhance
the long-term value of their investments. We exercise our voting rights in a manner which we believe is in the
companies’ long-term financial interests.
Nature
To support our increasing focus on natural capital, Asset Management became a founding member of the Nature
Action 100 collaborative engagement initiative and joined the Principles for Responsible Investment’s Advisory
Committee for its stewardship initiative on nature.
Social
In 2023, we progressed against the engagement objectives of our Social Engagement Program, which launched a
year earlier. Our three focus themes are human capital, human rights and health. To complement our direct
engagement efforts, we continued to collaborate with other investors to maximize our engagement impact.
We have seen target engagement companies enhance their labor practices, set time-bound quantitative targets to
enhance gender diversity, conduct human rights risk assessments, and initiate plans to reduce risks and raise their
focus on societal health. We also filed a shareholder resolution, urging a company to enhance gender diversity at
board level after several years of stewardship activities led to no signs of progress.
In addition, we took up the role of Chair of the global engagement workstream in the UK Chapter of the 30%
Club and we also co-chair the Investors in Nutrition and Health initiative of the Access to Nutrition Initiative. These
roles allow us to drive industry collaboration and enhance our effectiveness in reaching engagement outcomes.
Credit Suisse AG Asset Management collaborated with other asset managers to establish social and human capital
key performance indicators for funds with a social objective in the industry, to build financially and socially important
data such as human capital turnover at the levels of gender, ethnicity, and age group.

Sustainability Report 2023 | Supporting opportunities 69

Thought leadership research
Asset Management launched a special Sustainable Investing edition of its Panorama series during 2023. The
publication focused on the opportunities and risks of sustainable investing, enhancing the effectiveness of
stewardship by asset owners and asset managers, showing how to customize sustainability through active and
index investing, and the role that natural capital plays in sustainability investing approaches.
During 2023, we also published several thought leadership pieces, including articles focused on natural capital,
chemical pollution, embodied carbon, physical risk, impact investing and active ownership. They included:
– Chemical pollution and the need to transition to sustainable chemistry;
– No false starts: The race to reduce embodied carbon;
– China and net zero; A recipe for alpha?;
– Finding our voice: Active owners need to bring something to the table; and
– Green premium.
We also conducted extensive thematic research on emerging sustainability topics such as biodiversity, to facilitate
engagement activities and portfolio investment decision-making.

External awards recognition

UBS AG Asset Management won several sustainability-themed awards during 2023, underlining the strengths of
our approach. Highlights include:
– Top 5 Fastest Riser for ESG at the Broadridge Distribution Achievement Awards;
– Best ESG Fund House (Passive) and Best ESG Emerging Markets Equity Fund (Passive) at the ESG Clarity Awards;
– Best Equity ESG Investment Fund at the ESG Investment Leader Awards 2023 for the Global Equity Climate
Transition Fund; and
– Strong results in the 2023 GRESB Real Estate and Infrastructure Assessments, with all 20 discretionary strategies
achieving 4 or 5 stars and outperforming the GRESB average, 14 of them receiving 5 stars and four of the
strategies being ranked first in their peer group.1
› Refer to the UBS Group Annual Report 2023 available on ubs.com/annualreport for more information on the overall
business and financial profile of UBS AG 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 on the proportion of
sustainable investment assets as part of UBS Group’s total invested assets

1 GRESB is a third-party organization that provides ESG data to financial markets. GRESB collects, validates, scores, and independently benchmarks ESG data to
provide business intelligence, engagement tools, and regulatory reporting solutions for investors, asset managers, and the wider industry. UBS has been a member
of GRESB for over a decade. Award as of October 2023. UBS submitted 2022 data to GRESB for the 2023 Assessments.

Sustainability Report 2023 | Supporting opportunities 70

Investment Bank
Our Investment Bank offers clients global advice and access to the world’s primary, secondary and private capital
markets, through an extensive array of sustainability-focused services, products, research and events. The
Investment Bank has incorporated sustainability expertise from Credit Suisse to strengthen UBS Group’s offering
across Global Markets, Global Banking and Research. New sustainable finance content, products and other services
taken over from Credit Suisse follow UBS Group standards and approval process. As of the end-of-year 2023, the
Investment Bank has been operating under a single consolidated governance. In 2023, we honed our capabilities
through initiatives across Global Markets, ESG Research, Global Banking and data-led offerings.

2023 highlights

In the Investment Bank The Investment Bank Themes identified by UBS Evidence Lab, favored by
we facilitated retained the family offices for impact investing:

102
green, social, sustainability, or
1st rank position in
in Swiss Franc-denominated
– education,
– climate change,
– healthcare,
– agriculture,
– broad theme covering
alternative food
sustainability-linked (GSSS) bond sources, clean water
GSSS bond issuance in our – economic development
transactions globally1 and sanitation
home market of Switzerland, and poverty alleviation,
with a 50% market share2

1 Investment Bank figure is 102 of which UBS AG figure is 93 and Credit Suisse figure is 16. The metrics include transactions such as, but not limited to,
Investment Bank Global Banking bonds issued under the voluntary ICMA Green Bond Principles, Sustainability Bond Principles, and Sustainability-Linked
Bond Principles. The principles include a recommendation that the issuer appoints an external review provider to undertake an independent external review
(e.g., second-party opinion). This is consistent with market practice. The metrics also include sustainability-themed bonds (e.g., Transition). Transactions are
counted only once, there is no double counting (e.g., if and where UBS AG and Credit Suisse were involved in the same transaction). UBS performed an
assessment for Credit Suisse green, social, sustainability and sustainability-linked bonds reported in the 2023 Sustainability Report and deemed them to be
aligned to UBS sustainable bond guidelines. 2 Bloomberg.

Global Research
In 2023, ESG Research delivered thematic reports on topics including energy transition materials, EV charging, the
EU and global sustainability-related regulatory landscape, PFAS (per-and polyfluoroalkyl substances, also known as
“forever chemicals”), battery recycling in China, biodiversity, and alternative fuels. More generally, through our
research, we addressed ways in which ESG factors connect to individual markets, sectors and companies in our
coverage, for example in an expanded ESG Sector and Company Radar product.
ESG research is supported by the UBS Evidence Lab. It provides data-driven insights into ESG-relevant questions and
in 2023, it identified six themes favored by family offices for impact investing: education; climate change;
healthcare; economic development and poverty alleviation; agriculture; and a broad theme covering alternative
food sources, clean water, and sanitation.
Sustainable finance at conferences and other events
Throughout the global calendar, ESG and sustainability-related topics are frequently integrated into proprietary
investor conferences run by the Investment Bank, and into other industry events. These include targeted events
focusing on sustainable finance topics such as transition finance, regulatory developments, impact technology and
green equity.
We also incorporate sustainability topics into sector- or market-specific conferences including our Energy Transition
Conference, Global Real Estate CEO/CFO Forum and our Greater China Conference. In September 2023 we held
our annual Investment Bank-wide Sustainable Finance Conference, which addressed areas such as the development
of supportive regulation and products to support the ongoing journey to net zero and the development of transition
finance.

Sustainability Report 2023 | Supporting opportunities 71

Global Banking
ESG Advisory Group
Increasingly, consideration of ESG is seen as a central component of any corporate business strategy and a key tool
in achieving sustainability in business and corporate operating models. A recent Bloomberg Intelligence-run survey
of senior corporate executives confirmed this trend.1 As pressure from regulators and other key stakeholders, such
as customers, investors and employees, grows, so too does the need for transformation. The ESG Advisory Group
supports UBS’s clients in assessing ESG topics throughout the corporate lifecycle.
Our approach is underpinned by a profiling framework with carefully developed modules to critically analyze a
corporation’s ESG profile from a business and investor perspective. The framework lies at the heart of all Global
Banking transactions and addresses four core components (with examples of analytical modules in parentheses):
– what you do (stakeholder engagement framework);
– how you do it (ESG performance analysis, PAI2 as a product explaining investor needs to corporates);
– how you talk about it (corporate sustainability report diagnostics); and
– what others say about you (outside-in stakeholder analysis via artificial intelligence (AI) platform).
Leveraged and debt capital markets
The Investment Bank arranged USD 53.7 billion3 in green, social, sustainability and sustainability-linked (GSSS)
bonds through 102 bond deals during 20234. Our deal activity was particularly strong in EMEA and Australia while
also solidifying our market-leading position in the Swiss-franc-denominated market with the Investment Bank’s
market share at nearly 50%5. In addition, we have built a strong position in Brazil’s local labelled ESG debt market.

Deal highlights included the structuring and execution of the Western Australia Treasury Corporation’s (WATC)
inaugural AUD 1.9 billion green deal, and winning the structuring mandate for the Australian government. The
funds for WATC will support government projects targeting environmental outcomes, such as investments to
decarbonize the main electricity grid. This includes batteries and wind farms, EV charging infrastructures as well as
rebates and standalone power systems. Meanwhile, the establishment of the Australian government’s green bond
framework highlights its key priorities, by referencing its aim for upcoming green bonds to finance projects that
will help Australia achieve its ambition to be net zero by 2050.
In July 2023, we acted as a joint global coordinator, physical bookrunner and sustainability coordinator on a debut
EUR 270 million green senior secured notes issuance in support of the leveraged buy-out (LBO) of Amara Nzero by
a consortium led by Cinven. This was the first green bond to be issued in EMEA with LBO use of proceeds. In August
2023, we facilitated an innovative senior non-preferred sustainability-linked loan (SLL) note from Nordea. This
transaction represented the first banking SLL note issued across core currency markets globally.
› Refer to the UBS Group Annual Report 2023 available on ubs.com/annualreport for more information on the overall
business and financial profile of UBS Investment Bank as important context for the product and financial
information provided here

1 bloomberg.com/company/press/bioomberg-intelligence-survey-finds-investors-and-c-suite-embrace-esg-despite-concerns
2 Principal adverse impacts, as defined by the EU Sustainable Finance Disclosure Regulation
3 Notional value. Investment Bank figure is USD 53.7 billion of which UBS AG figure is USD 51.5 billion and Credit Suisse figure is USD 4.6 billion. The metrics
include transactions such as, but not limited to, Investment Bank Global Banking bonds issued under the voluntary ICMA Green Bond Principles, Sustainability
Bond Principles, and Sustainability-Linked Bond Principles. The principles include a recommendation that the issuer appoints an external review provider to
undertake an independent external review (e.g., second-party opinion). This is consistent with market practice. The metrics also include sustainability themed
bonds (e.g., Transition). Transactions are counted only once, there is no double counting (e.g., if and where UBS AG and Credit Suisse were involved in the same
transaction). UBS performed an assessment for Credit Suisse green, social, sustainability and sustainability-linked bonds reported in the 2023 Sustainability Report
and deemed them to be aligned to UBS sustainable bond guidelines.
4 Investment Bank figure is 102 of which UBS AG figure is 93 and Credit Suisse figure is 16.
5 Bloomberg

Sustainability Report 2023 | Supporting opportunities 72

Personal & Corporate Banking

In our home market of Switzerland, our aim is to be the most progressive financial
institution when it comes to offering sustainable and sustainability-linked financial advice
and products. As Switzerland sets course for a successful transition to a low-carbon future,
we are developing innovative advisory, lending, basic banking, and transition financing
solutions, while also offering our clients access to sustainable investment solutions.
Integration of Credit Suisse
UBS Switzerland AG and Credit Suisse (Schweiz) AG currently remain separate entities. However, the sustainable
products of Credit Suisse (Schweiz) AG have been reviewed and vetted against the UBS sustainable product
frameworks. Based on this, Credit Suisse (Schweiz) AG continues to offer its sustainable products to its clients but
paused developing new products in 2023.

2023 highlights
Private clients

41.5%
The SI share of UBS AG P&C
assets under custody in Personal
Banking reached

46.5%
of net new investment products
1 in UBS AG P&C Personal
Banking were sustainable2

1,2 Figures can include limited amounts of instruments not classified as sustainable investment, including cash and cash-like instruments that each
portfolio holds for liquidity management purposes.

Supporting our clients to meet their sustainability ambitions remained a focus in 2023. Our private clients continued
to allocate to sustainable investment solutions during the year, helped by easy access to the relevant product
offerings across both sustainable funds and sustainable pension solutions using our mobile banking app, UBS key4.
Forming sustainable partnerships and thought leadership
Partnerships continue to play a key role in our efforts. In 2023, UBS entered into a new partnership with the Ecole
Polytechnique Fédérale Lausanne (EPFL) to support innovation in sustainability and collaboration through joint
projects. In addition, we became the first bank to join the Swiss Green Fintech Network, actively supporting the
development of innovative and scalable technology solutions, and the development of Switzerland as a global
leader in green fintech. We continued publishing articles in order to deepen client dialogue and engagement. Jointly
with the business and group functions, we have participated in various sustainability-related seminars and events.
› Refer to ubs.com/sustainability-ch for information on sustainability at UBS in Switzerland
› Refer to the UBS Group Annual Report 2023 available on ubs.com/annualreport for more information on the overall
business and financial profile of Personal & Corporate Banking as important context for the product and financial
information provided here

Sustainability Report 2023 | Supporting opportunities 73

Group Treasury activities

In 2023, Group Treasury continued to invest its high-quality liquid assets portfolios under a dedicated ESG
Investment Framework as described in UBS’s net-zero ambition statement of 2021. This framework integrates ESG
considerations in the investment process alongside more traditional economic and risk dimensions. It supports
investments in ESG-labelled securities that have a direct link to sustainable projects, promotes investments in issuers
with positive ESG characteristics and flags potential risks.
At year-end 2023, Group Treasury held more than USD 8 billion of green, social and sustainability bonds in its high-
quality liquid assets (HQLA) portfolios, up 20% from the USD 6.7 billion it held in 2022. In comparison, global GSSS
bond issuance increased 7%1 in 2023.

Non-core and Legacy

In 2023, we created Non-core and Legacy, which includes positions and businesses not aligned with our strategy
and policies. Those consist of the assets and liabilities reported as part of the former Capital Release Unit (Credit
Suisse) and certain assets and liabilities of the former Investment Bank (Credit Suisse), Wealth Management (Credit
Suisse), Swiss Bank (Credit Suisse) and Asset Management (Credit Suisse) divisions, as well as of the former
Corporate Center (Credit Suisse). Non-core and Legacy also includes the remaining assets and liabilities of UBS’s
Non-core and Legacy Portfolio, previously reported in Group Functions (now renamed to Group Items), and smaller
amounts of assets and liabilities of UBS’s business divisions that we have assessed as not strategic in light of the
acquisition of the Credit Suisse Group. We are actively reducing the assets of Non-core and Legacy in order to
reduce operating costs and financial resource consumption, and to enable us to simplify infrastructure.
› Refer to the UBS Group Annual Report 2023 for more information about the Non-core and Legacy business division

Upon the legal close of the acquisition of the Credit Suisse Group, we have applied existing UBS prudent risk
management practices to material risks of Credit Suisse. Positions and businesses not aligned with the core strategy
and policies of UBS have been ring-fenced in the Non-core and Legacy business division, with the aim of ensuring
a timely and orderly wind-down.
› Refer to the “Managing sustainability and climate risks” section of this report for a description of sustainability-
and climate-related de-risking activities

1 Bloomberg

Sustainability Report 2023 | Supporting opportunities 74

Managing
Managing sustainability
sustainability and
and
climate
climate risks
risks
Introduction
Introduction
Managing sustainability and climate risk is a key component of our corporate responsibility. We define sustainability
Managing
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UBS risk is a key impacts,
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by, climate change,We define
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and climate risk as the risk that UBS negatively impacts, or is impacted by, climate
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as credit, other environmental,
liquidity, business socialorand governancerisks
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in potential adverserisks may manifest
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for non-financial risks (NFR),& applying
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independent controlmonitors the adequacy
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In 2023 we worked to revise this framework and our processes across UBS, following the acquisition of the Credit
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and non-financial risks, for example by enriching our risk management processes and reporting around nature- considerations into traditional financial
and non-financial
related risks. risks, for example by enriching our risk management processes and reporting around nature-
related risks.
At the same time our sustainability and climate risk framework continued to mature through our multi-year initiative
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and disclosures.
focused on addressing regulatory requirements and enhancing core processes,
This chapter presents our approach to managing sustainability, climate and nature-related risk, while highlighting such as reporting and disclosures.
This
thosechapter presents
areas where our approach
further work is ongoingto managing
to alignsustainability,
the Credit Suisse climate and nature-related
approach to the overallrisk,
Groupwhile highlighting
approach. The
those areas where further work is ongoing to align the Credit Suisse approach to
current inventory of quantitative sustainability and climate risk metrics, including exposure to carbon-related assets,the overall Group approach. The
current inventory of quantitative sustainability and climate risk metrics, including
climate-sensitive sectors and nature-related risks for UBS Group excluding Credit Suisse, is disclosed later in this exposure to carbon-related assets,
climate-sensitive
section. UBS is in the sectors andof
process nature-related
implementingrisks for UBS and
a combined Group excluding
aligned Credit Suisse,
sustainability- is disclosed
and climate-risk later in
dataset this
across
section. UBS is in the process of implementing a combined and aligned sustainability-
UBS Group and including Credit Suisse AG. For this reason, UBS will publish UBS Group and Credit Suisse AG and climate-risk dataset across
UBS Group and
sustainability andincluding
climate risk Credit
metrics Suisse AG. For
required this reason,
pursuant to FINMA UBSCircular
will publish
2016/1 UBS Group and
"Disclosure Credit Suisse
– banks", AnnexAG 5,
sustainability
in a supplement to the UBS Group Annual Report and the UBS Group Sustainability Report in line Annex
and climate risk metrics required pursuant to FINMA Circular 2016/1 "Disclosure – banks", with the 5,
in a supplement to the UBS Group Annual Report and the
publication timeline for the semi-annual Pillar 3 disclosures in the third quarter of 2024. UBS Group Sustainability Report in line with the
publication
› Refer totimeline for the semi-annual
the Supplement to this report,Pillar 3 disclosures
available in the third quarter of 2024.
at ubs.com/sustainability-reporting , for more information about
› Refer to Group
the UBS the Supplement to this
sustainability andreport, available
climate at ubs.com/sustainability-reporting
risk policy framework , for more information about
the UBS Group sustainability and climate risk policy framework

Sustainability Report 2023 | Managing sustainability and climate risks 75

Sustainability Report 2023 | Managing sustainability and climate risks 75
Sustainability
Sustainability and
and climate
climate risk
risk management
management
framework
framework
Our firm-wide sustainability and climate risk management framework and related policies,
Our firm-wide sustainability and climate risk management framework and related policies,
standards and guidelines underpin our management practices and control principles. They
standards and guidelines underpin our management practices and control principles. They
enable us to identify and manage potential adverse impacts on the climate, the environment
enable us to identify and manage potential adverse impacts on the climate, the environment
and human rights, as well as the associated risks affecting us and our clients, while supporting
and human rights, as well as the associated risks affecting us and our clients, while supporting
the transition to a low-carbon world.
the transition to a low-carbon world.
Overseen by senior management, the framework applies to the balance sheet, our own operations and our supply
Overseen by senior
chain. It consists of management, the framework
four different phases: applies to theand
(i) risk identification balance sheet, our(ii)
measurement; own operations
monitoring, and
and our
risk supply
appetite
chain. It consists of four different phases: (i) risk identification and measurement;
setting; (iii) risk management and control; and (iv) risk reporting and disclosure. (ii) monitoring, and risk appetite
setting;
› Refer(iii)torisk
“Ourmanagement and control; approach
investment management and (iv) risk reporting andand
to sustainability disclosure.
climate risks“ in this section for a description
›Refer
of ourto “Our investment
sustainability management
and climate approachapproach
risk investment to sustainability and climate risks“ in this section for a description
of our sustainability and climate risk investment approach
Sustainability and climate risk management framework

1 Identifi cation and

measurement
2 Monitoring and risk
appetite setting
Sustainability and climate risks are identified Sustainability and climate risk exposures,
and their materiality is measured emerging risks and regulations are monitored
and metrics reported internally to enable risk
– Annual sustainability and climate risk appetite setting
materiality assessment1
– Sustainability and climate risk heatmaps, – Monitoring of sustainability and climate
sector-level1 risks (including regulatory monitoring)
– Scenario-based climate and nature- – Sustainability and climate risk metrics1
related analysis and stress-testing – Qualitative sustainability and climate
exercises, including the development of a risk appetite1
stress-testing framework2 – Quantitative sustainability and climate
– Sustainability and climate risk scorecards, risk appetite1
company-level3

4 Risk reporting
and disclosure
3 Risk management
and control
Key sustainability and climate risks Management and control processes ensure
considerations are included in internal that material sustainability and climate risks
reporting and external disclosures are identified, measured, monitored and
escalated in a timely manner
– Sustainability and climate risk content
included in the UBS Group, divisional – Integrate sustainability and climate risk
and relevant regional and legal entity considerations into decision-making
risk reports1 processes and related policies1
– External disclosures of sustainability and – Build in-house capacity to enhance risk
climate risk in annual and sustainability management, including specialized
reports¹ training and further research and
development of tools1
– Centralize and execute ESG data
strategy1
Related toolkit

1 Implemented, further development underway. 2 Overview of scenario analysis and stress-testing exercises disclosed, further development underway.
3 Under development.

Sustainability Report 2023 | Managing sustainability and climate risks 76

Sustainability Report 2023 | Managing sustainability and climate risks 76
The Group Chief Risk Officer (GCRO) is responsible for the development of the sustainability and climate risk
The Group and
framework ChiefriskRisk Officeralong
appetite, (GCRO)
withisitsresponsible
integration for
intothe development
those of the Group. of The
the CRO
sustainability and climate
for Sustainability risk
supports
framework and risk appetite, along with its integration into those of the Group. The CRO for Sustainability
the GEB by providing leadership on sustainability in collaboration with business divisions and Group Functions and supports
the GEB by providing
is supported leadership on
by the Sustainability sustainability
and Climate Risk in unit
collaboration with
(SCR unit). business divisions
In addition, and Group
the BoD Risk Functions
Committee and
monitors
is
thesupported by UBS’s
progress of the Sustainability and Climate
efforts to address Risk unit
sustainability and(SCR unit).risk.
climate In addition, the BoD Risk Committee monitors
the› progress of UBS’s efforts to address sustainability and climate risk.
Refer to the “Supplement to Governance” section of the Supplement to the UBS Group Sustainability Report 2023,
› Refer to the
available “Supplement to Governance” section
at ubs.com/sustainability-reporting of the Supplement
, for further tosustainability
details on the the UBS Group Sustainability
governance Report 2023,
at UBS
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 Pre-acquisition
Our
UBS’smulti-year
SCR unit,Sustainability
continues to and buildClimate
capacityRisk Initiative
through (the SCR
expertise, Initiative), launched
collaboration, technologyin 2020 by Pre-acquisition
and data. This initiative
UBS’s SCR unit,
was created continuessustainability
to integrate to build capacity through
and climate riskexpertise, collaboration,
considerations into the technology and data.
firm’s traditional Thisand
financial initiative
non-
was
financial risk management frameworks, which address these traditional risks across the firm’s business divisionsnon-
created to integrate sustainability and climate risk considerations into the firm’s traditional financial and and
financial risk management
legal entities, frameworks,
against a continuously whichregulatory
evolving address these traditional risks across the firm’s business divisions and
context.
legal entities, against a continuously evolving regulatory context.
In 2023, the SCR Initiative further advanced efforts toward the goal of fully integrating qualitative and quantitative
In 2023, the SCR
sustainability andInitiative
climatefurther advanced efforts
risk considerations intotoward the goal
the firm’s of fully integrating
traditional qualitative
risk management and andstress-testing
quantitative
sustainability and climate risk considerations into the firm’s traditional risk management
frameworks. 2023 developments include introducing climate-driven risk analytics into the credit decision-making and stress-testing
frameworks. 2023 developments
process for select include introducing
portfolios, introducing climate-driven
climate-driven risk risk
quantitative analytics into for
appetite the credit
specificdecision-making
legal entities,
process for select portfolios, introducing climate-driven quantitative risk
expanding climate and nature-related risk monitoring internally, and further refining processes appetite for specific legal entities,
and governance and
expanding climate and nature-related risk monitoring internally,
methodologies to drive forward more comprehensive ESG reporting and disclosures.and further refining processes and governance and
methodologies to drive forward more comprehensive ESG reporting and disclosures.
Like that of UBS, Credit Suisse’s approach to the management of sustainability and climate risk consists of four
Like that(1)ofrisk
phases, UBS, Credit Suisse’s
identification, approach to(3)
(2) monitoring, the managementand
management, of (4)
sustainability
reporting. and climate risk consists of four
phases, (1)torisk
› Refer identification,
“Appendix (2) monitoring,
3 – Entity-specific (3) management,
disclosures andAG”
for Credit Suisse (4) reporting.
in the appendices to this report for a
› Refer to “Appendix
description of Credit3Suisse’s
– Entity-specific
approachdisclosures for Credit
to sustainability andSuisse AG”
climate riskinmanagement
the appendices to this report for a
description of Credit Suisse’s approach to sustainability and climate risk management
Sustainability and climate risk management activities conducted in 2023 are described below, across the four phases
Sustainability and climate
of the sustainability andrisk management
climate activities conducted
risk framework. in 2023laid
These activities are the
described below,for
foundation across
thethe four phases
creation of a
of the sustainability and climate risk framework. These activities laid the
sustainability and climate risk management framework for the combined organization. foundation for the creation of a
sustainability and climate risk management framework for the combined organization.
› Refer to the “Supplement to Governance” and “Supplement to Managing risks“ sections of the Supplement to the
› Refer to theSustainability
UBS Group “SupplementReport
to Governance” and “Supplement
2023, available to Managing risks“ sections
at ubs.com/sustainability-reporting of thedetails
, for more Supplement to the
about our
UBS Group Sustainability Report 2023, available
sustainability and climate risk policy framework at ubs.com/sustainability-reporting, for more details about our
sustainability and climate risk policy framework
Risk identification and measurement
Risk
On an identification
annual basis,and measurement
an assessment of the materiality of sustainability and climate-driven risks is carried out in
On an annual basis, an assessment
accordance with the ISO 14001 standard of the
formateriality of sustainability
environmental managementand climate-driven
systems. 1 In 2023,risks is carried
we further out in
advanced
accordance with
our materiality the ISO 14001
assessment standardtofor
methodology environmental
integrate management
documented systems.
transmission
1 In 2023,
channels we further
that may advanced
drive new forms
our materiality assessment methodology to integrate documented transmission channels that may
of sustainability and climate-driven financial and non-financial risks, leveraging internal and external expert drive new forms
of sustainability
guidance. and climate-driven financial and non-financial risks, leveraging internal and external expert
guidance.
We aim to identify sustainability and climate risks at divisional and cross-divisional levels, both through the
We aim to identify
sustainability sustainability
and climate risk-drivenand climateassessment
materiality risks at divisional
mentioned andabove
cross-divisional levels,by
and, increasingly, both throughthem
integrating the
sustainability and climate risk-driven materiality assessment mentioned above and, increasingly, by integrating
into the firm-wide traditional risk identification and measurement processes. This is also applied to significant Group them
into the under
entities firm-wide
UBStraditional
Group AG.risk identification and measurement processes. This is also applied to significant Group
entities under UBS Group to
› Refer to “Supplement AG.
Strategy” section of the Supplement to the UBS Group Sustainability Report 2023,
› Refer to “Supplement
available to Strategy” section of, the
at ubs.com/sustainability-reporting for Supplement
details abouttoour
theclimate-related
UBS Group Sustainability Report 2023,and the
materiality assessment
available at ubs.com/sustainability-reporting
underlying methodology , for details about our climate-related materiality assessment and the
underlying methodology
Our risk identification methodologies collectively define UBS’s materiality-driven approach, focus areas and key risk
Our riskThe
drivers. identification
outputs ofmethodologies
these efforts definecollectively define UBS’sand
our sustainability materiality-driven approach, focus
climate risk management areas
strategy by:and key risk
drivers. The outputs of these efforts define our sustainability and climate risk management strategy by:
– identifying concentrations of climate and nature-sensitive exposure that may make UBS vulnerable to financial
– identifying
and non-financialconcentrations of climate
risks, enabling theand nature-sensitive
prioritization exposuretowards
of resources that mayenhanced
make UBSriskvulnerable to financial
quantification and
and non-financial risks,
subsequent management actions; enabling the prioritization of resources towards enhanced risk quantification and
subsequent management actions;
– supporting delivery of a client-centric business strategy, where the firm supports clients with their sustainability
– supporting
transition, e.g.,delivery of a client-centric
by low-carbon business
transition strategy,
finance, where
identifying the firm
clients that supports clients
may benefit fromwith their sustainability
sustainability-focused
transition, e.g., by
UBS products and services. low-carbon transition finance, identifying clients that may benefit from sustainability-focused
UBS products and services.
This provides information to senior management to support more informed decision-making on sustainability and
This provides information
climate-driven risks, alongto with
seniorproviding
management to support more
decision-useful informed
information to decision-making on sustainability
stakeholders, through and
our external
climate-driven
disclosures. risks, along with providing decision-useful information to stakeholders, through our external
disclosures.
1 For the financial year 2023, the materiality assessment covered UBS Group excluding Credit Suisse.
1 For the financial year 2023, the materiality assessment covered UBS Group excluding Credit Suisse.
Sustainability Report 2023 | Managing sustainability and climate risks 77
Sustainability Report 2023 | Managing sustainability and climate risks 77
Transition risk
Transition
Climate-drivenrisk transition risks arise from global efforts to mitigate the effects of climate change. They cover the
Climate-driven
financial impacttransition risks arise
on our clients or onfrom globalthrough
UBS itself efforts the
to mitigate the effects
creditworthiness of of
UBSclimate change. They
counterparties or thecover
valuethe
of
financial impact on our clients or on UBS itself through the creditworthiness of UBS
collateral held by UBS. Financial impacts from climate-driven transition risks could materialize through several counterparties or the valuekey
of
collateral
risk factors:held by UBS. Financial impacts from climate-driven transition risks could materialize through several key
risk factors:
– climate policies: affecting operating expenses (e.g., carbon taxes), analyzed both directly and indirectly;
– climate policies: affecting operating expenses (e.g., carbon taxes), analyzed both directly and indirectly;
– low-carbon technologies and their potential for disruption: affecting capital expenditure requirements and/or
– low-carbon
market sharetechnologies
due to low-cost and competition;
their potential or for disruption: affecting capital expenditure requirements and/or
market share due to low-cost competition; or
– shifts in consumer or investor sentiment: affecting revenues (consumer demand shifts) or market perceived value.
– shifts in consumer or investor sentiment: affecting revenues (consumer demand shifts) or market perceived value.
To arrive at UBS Group excluding Credit Suisse exposure to climate-driven transition risks, we have analyzed
To arrive at
economic UBS within
sectors GroupUBS’s excluding Credit Suisse
classification taxonomy, exposure
with atoview
climate-driven transition risks,
to defining sub-sectors we have
(hereafter analyzed
referred to as
economic sectors within UBS’s classification taxonomy, with a view to defining sub-sectors
“segments”) that share similar characteristics in their vulnerability to the risk factors identified above. The approach(hereafter referred to as
“segments”) that share similar characteristics in their vulnerability to the risk factors identified
consists of grouping companies into these segments under an adverse risk scenario. This scenario is defined as an above. The approach
consists
immediate of grouping companies
and disorderly approachintotoward
these segments
meeting the under an adverse risk
well-below-2˚C Parisscenario.
goal over This
thescenario is defined as
zero-to-three-year an
time
immediate and disorderly
horizon (reflecting approach
the business towardhorizon).
planning meeting the Thewell-below-2˚C
outcome of this Paris goal over
process is athe zero-to-three-year
sector-level transitiontime
risk
horizon
heatmap, where risk ratings range from low to high, and ”climate-sensitive sectors” include the toptransition
(reflecting the business planning horizon). The outcome of this process is a sector-level risk
three ratings
heatmap, where risk ratings
(high, moderately high and moderate). range from low to high, and ”climate-sensitive sectors” include the top three ratings
(high, moderately high and moderate).
In 2023, methodology enhancements on the sector-level heatmap provided for the incorporation of the additional
In 2023, methodology
“disorderly” component enhancements
(in line with on thethe
NGFSsector-level
immediate heatmap provideddefinition
and disorderly for the incorporation of the additional
and UBS’s in-house scenario
“disorderly”
developments). component (in line with
Here, disorderly the NGFS
is defined as immediate and disorderly
a differentiation betweendefinition and UBS’s
industrialized in-house scenario
and emerging market
developments).
countries: in the short term, industrialized economies are rated relatively riskier than emerging economies market
Here, disorderly is defined as a differentiation between industrialized and emerging due to
countries: in the short
faster acceleration term, industrialized
in implementing programseconomies
to meetare rated relatively
national commitments riskiermade
than emerging
within theeconomies due to
Paris Agreement
faster acceleration in implementing programs to meet national commitments made
framework. These policies and programs are executed primarily through more stringent climate transition policies, within the Paris Agreement
framework. These policies
larger investments in advanced and programs
low-carbon are executed primarily
technologies, and thethrough
effects in more stringent
delivering climate and
affordable transition
more policies,
climate-
larger investments in advanced low-carbon technologies, and the
friendly products (analyzed through price elasticity in demand for these products). effects in delivering affordable and more climate-
friendly products (analyzed through price elasticity in demand for these products).
The transition risk heatmap below shows that, at year-end 2023, our exposure to climate-sensitive sectors and
The transition
related activitiesrisk heatmap
remains belowstable.
relatively showsClimate-driven
that, at year-end 2023, risk-sensitive
transition our exposureexposureto climate-sensitive
now represents sectors and
12.1%
related activities remains relatively stable. Climate-driven transition risk-sensitive
(up from 11.7% in 2022) of total customer lending exposure, mainly driven by an increase in exposure to exposure now represents 12.1%
(up from 11.7%
commercial in 2022)
real estate of total customer
in Switzerland. This risk lending
exposureexposure, mainly driven
can be associated by an
with the increase
passage in Climate
of the exposureand to
commercial
Innovation Act real in
estate in Switzerland.
Switzerland and the This risk exposure
expected can be associated
zero-to-three-year impact withonthe passage of the rules
energy-efficiency Climatein and
the
Innovation Act in Switzerland and the expected zero-to-three-year impact on energy-efficiency
commercial real estate sector. A slight reduction in exposure can be observed in the fossil fuels trading and mining rules in the
commercial
conglomerates realsectors.
estate sector. A slight reduction in exposure can be observed in the fossil fuels trading and mining
conglomerates sectors.
› Refer to the “Supplement to Managing sustainability and climate risks” and the “Basis of reporting” sections of the
› Refer to the “Supplement
Supplement to Managing
to the UBS Group sustainability
Sustainability and climate
Report 2023, risks”
available and the “Basis of reporting” sections
at ubs.com/sustainability-reporting of the
, for details
Supplement to
on methodologiesthe UBS Group Sustainability Report 2023, available at ubs.com/sustainability-reporting, for details
on methodologies

Sustainability Report 2023 | Managing sustainability and climate risks 78

Sustainability Report 2023 | Managing sustainability and climate risks 78
Climate risk heatmap (transition risk) for UBS Group excluding Credit Suisse1,2,3
In USD billion
Agriculture
0.01 High
Fossil fuels
Industrials 0.06
1.99 Industrials 1.99 Fossil fuels 0.06
1.64 Chemicals 0.04 Coal
0.35 Cement or concrete manufacture 0.02 Shale gas

Utilities 1.31 Agriculture 0.01

1.31 Power production: regulated and high-carbon fuels 0.01 Livestock – beef extensive grazing

3.37
3.88 (0.71%)
High
High
Moderately high
Real Estate 25.51 Transportation 3.06
23.12 Commercial real estate 1.66 Airlines – cargo
Utilities
57.44 (12.02%) 1.31
2.40 Development and management of real estate 0.64 Transportation parts and equipment supply
0.51 Land-based shipping high-carbon (trucks)
Low
Industrials 7.21 0.09 Sea-based shipping (high-carbon fuels)
3.02 (0.63%) 3.24 Machinery and related parts manufacturing 0.09 Automobile manufacture (high-carbon fuels)
Not classified Fossil fuels 2.12 Pharmaceuticals 0.07 Airlines – commercial
Utilities 1.37 0.97 Consumer durables manufacturing
0.22 Agriculture 0.82 Plastics and petrochemicals manufacture Fossil Fuels 1.37
2.21 0.06 Chemicals 0.81 Wholesale and trading: crude oil and natural gas
Metals and mining 0.32 Integrated oil and gas
2.61 Metals and Mining 2.61 0.16 Conventional oil (on-/offshore)
2.06 Mining conglomerates (including trading) 0.08 Gas processing (including LNG)
Real estate Transportation 0.28 Production of other mined metals and raw materials
25.51 3.06 0.28 Production of steel and iron Utilities 0.22

477.89 USD bn 4,5,6 74.85(8.83%)

42.21 Agriculture 2.21
0.16 Wastewater treatment
0.06 Power production: regulated and high-carbon fuels
Total exposure Moderately
Moderately 2.21 Food and beverage production
high
high

Industrials
7.21 Moderate
Fossil Fuels 4.07 Transportation 0.57
3.74 Wholesale and trading: refined petroleum products 0.55 Passenger ships
0.17 Transportation and storage (gas) 0.02 Automobile manufacture (high-carbon fuels)
0.16 Downstream oil and gas distribution
359.37 (75.20%) Metals and mining
0.16 Utilities 0.45
Moderately low Sovereigns Utilities Real Estate 3.64 0.33 Grid operation and transmission
0.09 0.45 1.91 Construction – non-infrastructure
Transportation 0.11 Waste disposal and recycling
0.57 1.63 Commercial real estate 0.01 Wholesale and trading: electricity and power
0.07 Development and management of real estate
0.03 Construction of buildings and related activities
Agriculture Metals and Mining 0.16
Fossil fuels 0.12 Metal ore mining not elsewhere classified
4.07 1.73 Industrials 1.77 0.03 Production of other mined metals and raw materials
12.48
27.93(2.61%) 0.98 Other consumer goods manufacturing
0.67 Clothing manufacture
0.01 Production of steel and iron

Moderate
Moderate 0.09 Plastics and petrochemicals manufacture Sovereigns 0.09
0.02 Machinery and related parts manufacturing 0.09 Sovereigns

Agriculture 1.73
Industrials
1.50 Food and beverage wholesale/retail
1.77
0.15 Crops – high emissions intensity
Real estate 0.07 Other agricultural services
3.64 0.01 Food and beverage production
0.01 Livestock – other

1 Total customer lending exposure consists of total loans and advances to customers and guarantees, as well as irrevocable loan commitments (within the scope of expected credit loss) and is based on consolidated and standalone IFRS numbers. Total and subtotal exposure calculation is subject to rounding to two decimal
places, hence potential deviation from actual. 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- and nature-related risks are scored
between 0 and 1, based on sustainability and climate risk transmission channels, as outlined in the Supplement to the UBS Group Sustainability Report 2023. Risk ratings represent a range of scores across five-rating categories: low, moderately low, moderate, moderately high, and high. The climate- or nature-sensitive
exposure metrics are determined based upon the top three of the five rated categories: moderate to high. 4 Methodologies for assessing climate- and nature-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. 5 The credit exposure includes portfolio adjustment bookings, which are either directly impacting the metrics, and have been reflected in the heatmaps, or are impact assessed and immaterial to the metrics representation.
6 Not classified represents the portion of UBS’s business activities where methodologies and data are not yet able to provide a rating, e.g. private Individuals.
79–80
The graph below shows that the majority of UBS Group excluding Credit Suisse exposure is rated moderately
low, and climate-sensitive exposure accounts for 12.1% of the total customer lending exposure, driven by
UBS's lending footprint in industrialized countries. The majority of exposure is concentrated in lower-risk sec-
tors, such as residential real estate and financial services.

Climate risk heatmap (transition risk) for UBS Group excluding Credit Suisse1,2,3
In USD billion

Transition risk, by sector and geographic classifier of market maturity6

Marker size indicates relative exposure magnitude
Colour indicates transition risk level

3.37 (0.71%)
High
Residential real estate
3.02 (0.63%) 42.21 (8.83%) Commercial real estate
Not classified Moderately high Financial services Agriculture
57.44 (12.02%) Fossil fuels Metals and mining
Private individuals

Industrialized
Low
12.48 (2.61%)
Moderate

Services and technology Industrials Utilities

Transportation Real estate (other)
Lombard Sovereigns
Transition risk

477.89 USD bn 4,5

Financial services
Residential real estate Industrials
Total exposure Commercial real estate
Fossil fuels
Agriculture

Emerging
Metals and mining Utilities
Sovereigns
Private individuals
Lombard Real estate (other)
Transportation
359.37 (75.20%) Services and technology
Moderately low

Low Sector transition risk7 High

Sector score

Lower risk Higher risk

1 Total customer lending exposure consists of total loans and advances to customers and guarantees, as well as irrevocable loan commitments (within the scope of expected credit loss) and is based on consolidated and standalone IFRS numbers. Total and subtotal exposure calculation is subject to rounding to two
decimal places, hence potential deviation from actual. 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- and nature-related
risks are scored between 0 and 1, based on sustainability and climate risk transmission channels, as outlined in the Supplement to the UBS Group Sustainability Report 2023. Risk ratings represent a range of scores across five-rating categories: low, moderately low, moderate, moderately high, and high. The climate- or
nature-sensitive exposure metrics are determined based upon the top three of the five rated categories: moderate to high. 4 Methodologies for assessing climate- and nature-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. 5 Not classified represents the portion of UBS’s business activities where methodologies and data are not yet able to provide a rating, e.g. private Individuals. 6 Market maturity is reflected
in the internal country classification to facilitate identification of diversification of policy stringency across developing and industrialised countries. 7 Displayed ratings represent exposure-weighted averages for a given sector scope.

81–82
Physical risk
Physical risk physical risks arise from acute hazards, which are increasing in severity and frequency, while chronic
Climate-driven
Climate-driven
climate risks arise physical
from risks arise from acute
an incrementally hazards,
changing whichThese
climate. are increasing
effects may in severity
includeand frequency,
increased while chronic
temperature and
climate
sea-level rise, and the gradual changes may affect productivity and property values and increase the severity and
risks arise from an incrementally changing climate. These effects may include increased temperature and
sea-level rise, and the
frequency of acute hazards. gradual changes may affect productivity and property values and increase the severity and
frequency of acute hazards.
Our physical risk heatmap methodology groups together corporate counterparties based on exposure to key
Our physical
physical risk heatmap
risk factors methodology
(risk segmentation), by groups togethersub-sectoral,
rating sectoral, corporate counterparties
and geographical based on exposure
vulnerabilities to key
to climate-
physical risk factors (risk segmentation), by rating sectoral, sub-sectoral, and
driven physical risks. These vulnerabilities were identified using a proprietary in-house UBS model. The model,geographical vulnerabilities to climate-
driven
developedphysical risks.isThese
in 2023, vulnerabilities
a significant advancewere on the identified
historicalusing a proprietary
physical in-house methodology
risk heatmapping UBS model. The whichmodel,
Pre-
developed
acquisition in UBS2023, is a significant
published in 2021 and advance2022.onBythe historicalover
leveraging physical risk heatmapping
1 billion data points, UBS methodology which Pre-
analyzed cross-sector
acquisition
informationUBS published data
on asset-level in 2021 and 2022.level),
(sub-company By leveraging
third-party over 1 billion
climate hazard dataratings
points, UBS analyzed
through geospatial cross-sector
datasets,
information on asset-level data (sub-company level), third-party climate
and academic insights into how hazards and production methods may be aggravated or complementary hazard ratings through geospatial datasets,
and academic insights into how hazards and production methods may
(transmission channels). The analyses are then quantitatively aggregated across assets, transmission channels be aggravated or complementary
(transmission
(including valuechannels).
chains) and Thehazards
analyses at aare then quantitatively
sub-sector/country aggregatedlevel
or sub-country across assets, transmission channels
of granularity.
(including value chains) and hazards at a sub-sector/country or sub-country level of granularity.
The refined heatmap methodology shows that UBS Group excluding Credit Suisse physical risk vulnerability remains,
The refined heatmap
on average, moderately methodology
low (below shows that UBS Group
the sensitivity thresholdexcluding Credit Suisse
of moderate). Givenphysical
UBS’s risk vulnerability
business profile,remains,
the key
on
drivers for our climate-sensitive lending (physical risk) are financial intermediation activities, and profile,
average, moderately low (below the sensitivity threshold of moderate). Given UBS’s business the key
collectively the
drivers
services, agriculture, and transportation sectors. In its current state, the model takes a conservative approach inthe
for our climate-sensitive lending (physical risk) are financial intermediation activities, and collectively its
services, agriculture,
key assumptions, and transportation
limiting full incorporation sectors. In its current and
of geographical state, the model
sectoral takes
sources ofavariability
conservative approach
(which in its
may either
key assumptions,
further amplify or limiting
mitigatefull incorporation
financial of geographical
vulnerability). and sectoral
We are committed sources ofthese
to addressing variability (which
and other may either
limitations by
further amplify or mitigate financial vulnerability). We are committed to addressing
continuously improving the modeling approach alongside the industry, as it continues to standardize the disclosure these and other limitations by
continuously improving the modeling approach alongside the industry, as it continues
of physical climate risk data, integrates regionalized scientific climate models, specializes in its impact on sectors to standardize the disclosure
of
andphysical
assets, climate risk data,with
and collaborates integrates
a view regionalized
to more informed scientific climate models, specializes in its impact on sectors
decision-making.
and assets, and collaborates with a view to more informed decision-making.
More specifically, in 2024 and beyond, UBS will seek to expand its use of vendor data through both diversification
More specifically, further
and refinement, in 2024address
and beyond, UBS will seek
the limitations to expand
presented dueitstouse keyofassumptions
vendor data through both diversification
in the model, and develop
and refinement, further address the limitations presented due to key
approaches to address data limitations in other types of assets (e.g., real estate). We will also explore assumptions in the model, and develop
the link
approaches to address data limitations in other types of assets (e.g., real
between a changing climate and nature-related financial risks, which may result in intensified compounding estate). We will also explore the link
between a changing climate and nature-related financial risks, which may
vulnerabilities. Notably, companies that depend on natural capital assets may be adversely affected by climate result in intensified compounding
vulnerabilities.
change, which Notably, companies
presents further risksthat
to the depend on natural
environment capital
and the assetsofmay
provision be adversely
ecosystem affected by climate
services.
change, which presents further risks to the environment and the provision of ecosystem services.
The physical risk heatmap below shows that UBS Group excluding Credit Suisse exposure to climate-sensitive sectors
The
was physical
at 9.7%risk (upheatmap
from 8.4%). belowThis shows that UBS
increase Groupby
is driven excluding
exposure Credit
to theSuisse exposure
services sector,to which
climate-sensitive sectors
includes financial
was at 9.7% (up from 8.4%). This increase is driven by exposure to the services
services activities in emerging markets. Most of the climate-sensitive physical risk exposure is located within sector, which includes financial
services
countriesactivities
that haveinhigh emerging
adaptive markets.
capacityMost of therisk
to physical climate-sensitive
hazards; whichphysical risk exposure
is an important aspect tois located
considerwithin
when
countries that have high adaptive
interpreting the 9.7% exposure to physical risk. capacity to physical risk hazards; which is an important aspect to consider when
interpreting the 9.7% exposure to physical risk.

Sustainability Report 2023 | Managing sustainability and climate risks 83

Sustainability Report 2023 | Managing sustainability and climate risks 83
Climate risk heatmap (physical risk) for UBS Group excluding Credit Suisse1,2,3
In USD billion

Physical risk, by sector and country adaptive capacity

Marker size indicates relative exposure magnitude
Colour indicates physical risk level

0.00 (0.00%) Low

High
3.02 (0.63%) 10.26 (2.15%)
Not classified Moderately high

224.25(46.92%) 35.92 (7.52%)

Moderate
Low

Country adaptive capacity6

Lombard
Private individuals

Physical risk
Financial services
477.89 USD bn 4,5

Commercial real estate

Climate-sensitivity threshold

Total exposure Sovereigns Industrials

Residential real estate Metals and mining
Services and technology
Fossil fuels
Real estate (other) Agriculture
Transportation

204.45 (42.78%) High

Utilities
Moderately low
Low Sector physical risk7 High

Sector score

Lower risk Higher risk

1 Total customer lending exposure consists of total loans and advances to customers and guarantees, as well as irrevocable loan commitments (within the scope of expected credit loss) and is based on consolidated and standalone IFRS numbers. Total and subtotal exposure calculation is subject to rounding to two
decimal places, hence potential deviation from actual. 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- and nature-related
risks are scored between 0 and 1, based on sustainability and climate risk transmission channels, as outlined in the Supplement to the UBS Group Sustainability Report 2023. Risk ratings represent a range of scores across five-rating categories: low, moderately low, moderate, moderately high, and high. The climate- or
nature-sensitive exposure metrics are determined based upon the top three of the five rated categories: moderate to high. 4 Methodologies for assessing climate- and nature-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. 5 Not classified represents the portion of UBS’s business activities where methodologies and data are not yet able to provide a rating, e.g. private Individuals. 6 Country adaptive capacity is
represented by a sector exposure weighted-average based on the sovereign's segment score for the country of risk. 7 Displayed ratings represent exposure-weighted averages for a given sector scope.

84–85
Nature-related risk
Nature-related
Nature-related risk risk refers to how humans and organizations depend on and impact the natural environment.
Nature-related
Natural resources riskarerefers to how
referred to ashumans
natural and organizations
capital depend on provides
which, in combination, and impact the the naturalservices
ecosystem environment.
which
Natural
benefit people and the planet. In the following we describe our understanding of how UBS’s business modelwhich
resources are referred to as natural capital which, in combination, provides the ecosystem services may
benefit people and the planet. In the following we describe our understanding
depend on or impact those services, resulting in financial and non-financial risk for UBS. of how UBS’s business model may
depend on or impact those services, resulting in financial and non-financial risk for UBS.
Biodiversity is presented as a function of various natural capital assets providing life on earth with a range of services
Biodiversity is presented
(ecosystem services), as a function
categorized and of various
rated natural
for their rolecapital
in the assets providing
development of life on earthtechnologies,
medicines, with a range andof services
more.
(ecosystem services), categorized and rated for their role in the development of
UBS‘s development of insights in biodiversity, among other nature-related risks, is discussed in the contextmedicines, technologies, and more.of
UBS‘s development of insights in biodiversity, among other nature-related risks,
improving data and methodology. Like the collaborative effort that UBS made on climate-related risks in earlier is discussed in the context of
improving
years, we havedata contributed
and methodology. to global Like the collaborative
efforts to raise awarenesseffort that
and UBS made knowledge
exchange on climate-related risks in earlier
on nature-related risk
years,
assessment methodologies. UBS has made these contributions through its role as a member of the Taskforcerisk
we have contributed to global efforts to raise awareness and exchange knowledge on nature-related on
assessment
Nature-related methodologies. UBS has made
Financial Disclosures these since
(the TNFD, contributions
2021) and through its role Nations
the United as a member of the Taskforce
Environment Programme on
Nature-related Financial Disclosures (the TNFD, since 2021)
Finance Initiative (the UNEP-FI) working group on nature-related risks (since 2018). and the United Nations Environment Programme
Finance Initiative (the UNEP-FI) working group on nature-related risks (since 2018).
As a key member of the UNEP-FI working group, UBS supported the development of a methodology to assess
As a key member
nature-related risksof theboth
from UNEP-FI working group,
the dependency UBS supported
and impact perspectivesthe (to
development
the natural of a methodology
environment). to assess
UBS took part
nature-related risks from both the dependency and impact perspectives (to the natural
in the collaborative work to develop the Exploring Natural Capital Opportunities, Risks and Exposure toolkit environment). UBS took part
in the collaborative work to develop the Exploring Natural Capital Opportunities,
(ENCORE), central to UBS’s initial nature-related risk analysis. The UNEP-FI coordinated this working group in Risks and Exposure toolkit
(ENCORE),
partnership central
with the to UBS’s
World initial nature-related
Conservation risk analysis.
Monitoring Centre The (the UNEP-FI
WCMC),coordinated this working
Global Canopy, the Swiss group in
State
partnership with the World Conservation Monitoring Centre (the WCMC),
Secretariat for Economic Affairs (SECO), and the Swiss Federal Office for the Environment (FOEN). Global Canopy, the Swiss State
Secretariat for Economic Affairs (SECO), and the Swiss Federal Office for the Environment (FOEN).
In 2022 we initially piloted a quantification approach for nature-related risks solely based on the dependency of
In
our2022 weon
clients initially pilotedenvironment,
the natural a quantification usingapproach
the ENCORE for nature-related
methodology.risks Thissolely
approachbased on theus
allowed dependency
to assess our of
our clients on the natural environment, using the ENCORE methodology. This approach
vulnerability to nature-sensitive economic activities by our clients, which may drive financial risks for UBS, such as allowed us to assess our
vulnerability to nature-sensitive
reduced creditworthiness of our economic activities
clients, or the value by our clients, debt,
of companies’ whichormay drive financial
of equity posted asrisks for UBS,
collateral such as
for lending
reduced creditworthiness of our clients, or the value of companies’ debt, or of equity
activities. In 2023 we expanded the definition of our “nature-sensitive metric” to now include both dependency posted as collateral for lending
activities.
on, In 2023
and impact on,we expanded
nature, the definition
its assets, of our “nature-sensitive
and the ecosystem services that naturemetric” to nowtoinclude
provides sustainboth
human dependency
activities.
on, and impact on, nature, its assets, and the ecosystem services that nature provides
Our methodology assigns ratings on the same scale and granularity as our climate-driven sector-level heatmaps. to sustain human activities.
As
Our methodology assigns ratings on the same scale and granularity as our climate-driven
in the case of the climate-driven heatmap assumptions, UBS takes a conservative approach in assigning the overall sector-level heatmaps. As
in the case of the climate-driven heatmap assumptions, UBS takes a conservative
nature-sensitive risk rating to each of the UBS industry codes. The key assumption here is driven by taking theapproach in assigning the overall
nature-sensitive
higher of the tworisk rating
values to eachthe
between ofENCORE-defined
the UBS industryimpact codes.and Thedependency
key assumption here is driven by taking the
ratings.
higher of the two values between the ENCORE-defined impact and dependency ratings.
› Refer to the “Supplement to Managing sustainability and climate risks” section of the Supplement to the UBS
› Refer to
Group the “Supplement
Sustainability to2023,
Report Managing sustainability
available and climate risks” section ,of
at ubs.com/sustainability-reporting forthe Supplement
further to theon
information UBS
our
Group Sustainability
methodology Report 2023, available at ubs.com/sustainability-reporting , for further information on our
methodology
Our enhanced nature-related risk heatmap below shows that at year-end 2023 UBS Group excluding Credit Suisse
Our enhanced
exposure nature-relatedsectors
to nature-sensitive risk heatmap below(up
is at 15.1% shows
fromthat at year-end
14.4% in 2022)2023
of ourUBS Group
total excluding
customer Credit
lending Suisse
exposure.
exposure
Sensitivitytois nature-sensitive
driven by sectorssectors is at 15.1%
that either have a(up from
high 14.4%
impact or ainhigh
2022) of our totalon
dependency customer lending
the natural exposure.
environment.
Sensitivity is driven by sectors that either have a high impact or a high dependency on the
These include metals and mining, utilities and agriculture. Our business activities are concentrated in Lombardnatural environment.
These
lendinginclude
and the metals and services
financial mining,sector
utilitieswhich
and agriculture.
are rated as Our business
relatively low.activities
A strongare concentrated
correlation can bein observed
Lombard
lending and the financial services sector which are rated as relatively low. A strong correlation
between climate risk sensitivity (both transition and physical) and nature-related risks, showing a heightened can be observed
between
correlationclimate riskinsensitivity
identified (both transition
climate-sensitive sectors. and physical) and nature-related risks, showing a heightened
correlation
› Refer to “Appendix 2 – Environment” insectors.
identified in climate-sensitive the appendices to this report for our approach to nature.
› Refer to “Appendix 2 – Environment” in the appendices to this report for our approach to nature. The nature risk
methodology has also been extended to cover Credit Suisse’s portfolio

Sustainability Report 2023 | Managing sustainability and climate risks 86

Sustainability Report 2023 | Managing sustainability and climate risks 86
Climate risk heatmap (nature risk) for UBS Group excluding Credit Suisse1,2,3,4
In USD billion

Nature-related risk, by sector and alignment to average of transition and physical risk
Marker size indicates relative exposure magnitude
Color indicates Nature-related risk level

4.62 (0.97%) High

High 4.21 (0.88%)
3.02 (0.63%) Moderately high
Not classified
63.14 (13.21%)
Moderate Utilities
Agriculture
6.10 (1.28%) Industrials
Transportation
Moderately low

Average climate risk

Metals and mining
Commerical real estate
Commercial
Sovereigns
Financial services
Nature risk Real estate (other)
Lombard
Fossil fuels
477.89 USD bn 5,6

Total exposure
Services and technology

Residential real estate

Private individuals
396.80 (83.03%) Low
Not classified
Low
Low Sector nature-related risk7 High

Sector score

Lower risk Higher risk

1 Total customer lending exposure consists of total loans and advances to customers and guarantees, as well as irrevocable loan commitments (within the scope of expected credit loss) and is based on consolidated and standalone IFRS numbers. Total and subtotal exposure calculation is subject to rounding to two
decimal places, hence potential deviation from actual. 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- and nature-related
risks are scored between 0 and 1, based on sustainability and climate risk transmission channels, as outlined in the Supplement to the UBS Group Sustainability Report 2023. Risk ratings represent a range of scores across five-rating categories: low, moderately low, moderate, moderately high, and high. The climate- or
nature-sensitive exposure metrics are determined based upon the top three of the five rated categories: moderate to high. 4 Nature-related risk metric methodology has been further strategically enhanced, as part of an ongoing collaboration between UBS and UNEP-FI. 5 Methodologies for assessing climate- and
nature-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. 6 Not classified represents the portion of
UBS’s business activities where methodologies and data are not yet able to provide a rating, e.g. private Individuals. 7 Displayed ratings represent exposure-weighted averages for a given sector scope.

87–88
Climate scenario analysis
Climate scenario analysisapproaches to assess our exposure to physical and transition risks stemming from climate
We use scenario-based
We use scenario-based
change. We have introduced approaches
a seriesto ofassess our exposure
assessments to physical
facilitated by industry andcollaborations
transition riskstostemming
harmonizefrom climate
approaches
change. We have introduced a series of assessments facilitated by industry collaborations
for addressing methodological and data gaps. We have performed top-down balance-sheet stress testing (across to harmonize approaches
for addressing methodological
Pre-acquisition UBS), as well as and data gaps.
targeted, bottom-upWe have performed
analysis of specific top-down balance-sheet
sector exposures stressshort-,
covering testing (across
medium-
Pre-acquisition UBS), as
and long-term time horizons. well as targeted, bottom-up analysis of specific sector exposures covering short-, medium-
and long-term time horizons.
The work performed includes regulatory scenario analysis and stress test exercises such as the Climate Risk Stress
The
Test work
(CST) performed includes
of the European regulatory
Central Bank scenario
(the ECB), analysis
which and stressbanks’
assesses test exercises such as
preparedness forthe Climate
dealing with Risk Stress
financial
Test (CST) of the European Central Bank (the ECB), which assesses banks’ preparedness
and economic shocks stemming from climate risk; and the Bank of England (BoE) 2021 Climate Biennial Exploratory for dealing with financial
and economic
Scenario shocks
(CBES). Thesestemming
exercisesfrom climate
enabled the risk; and the Bank
identification of England
of financial risks(BoE)
from2021 Climate
climate change Biennial Exploratory
and allowed Pre-
Scenario (CBES). These exercises enabled the identification of financial risks from
acquisition UBS to assess management actions in response to different scenario results, as well as perform climate change and allowed Pre-
acquisition UBS to assess management actions in response to different scenario
counterparty-level analysis. While these exercises showed mild losses and low exposure to climate risk for the results, as well as perform
counterparty-level
entities in scope, the analysis. While
analysis theseUBS
allowed exercises showed
to enhance mild losses
climate and lowanalysis
risk scenario exposureandtostress
climate risk for
testing, the
further
entities
developingin scope, the analysis
our capabilities allowed UBS
for assessing riskstoand enhance climatefrom
vulnerabilities risk climate
scenariochange.
analysis and stress testing, further
developing our capabilities for assessing risks and vulnerabilities from climate change.
In 2023, we further advanced our capabilities surrounding internal climate risk scenario analysis and stress testing
In
for2023, we further
UBS Group advanced
excluding Creditour capabilities
Suisse. surrounding
We enhanced internal our
and refined climate risk risk
climate scenario analysis
scenarios withand stresson
a focus testing
both
for UBS Group excluding Credit Suisse. We enhanced and refined our climate risk scenarios
transition and physical risk projections across 30 years. Further, we have been developing additional corresponding with a focus on both
transition and physical risk projections across 30 years. Further, we have been developing
climate risk models to amend the coverage of major risk types and have enhanced consistent modelling approaches additional corresponding
climate risk models
in the context toestate
of real amendenergy
the coverage of major
performance andrisk types and havephysical
location-specific enhanced consistent modelling approaches
risk.
in the context of real estate energy performance and location-specific physical risk.
Over the last years we also leveraged industry-wide initiatives, such as the Paris Agreement Capital Transition
Over the last(PACTA)
Assessment years we also leveraged
exercise launched by industry-wide initiatives,
the Swiss Federal Officesuch as the
for the Paris Agreement
Environment (FOEN) inCapital
2020 and Transition
2022.
Assessment (PACTA) exercise launched by the Swiss Federal Office for the Environment
Through this exercise, we assessed the climate alignment of our listed investments (including equities and bonds), (FOEN) in 2020 and 2022.
Through this exercise, we assessed the climate alignment of our listed investments
mortgages and direct real estate portfolios. The assessment allowed us to compare our results with the aggregated(including equities and bonds),
mortgages
performance andof direct real estate banks’
all participating portfolios. The assessment
portfolios, allowed us
showing progress to compare
made over time our results
and with
efforts stillthe aggregated
needed.
performance of all participating banks’ portfolios, showing progress made over time and efforts still needed.
The following chart shows the evolution of our scenario-based analysis and stress-testing over time.
The› following chart shows
Refer to “Appendix the evolution disclosures
3 – Entity-specific of our scenario-based
for Credit Suisseanalysis
AG” andin thestress-testing
appendices to over
thistime.
report for a
› Refer to “Appendix
description of Credit3Suisse’s
– Entity-specific
scenario disclosures
analysis for Credit Suisse AG” in the appendices to this report for a
description of Credit Suisse’s scenario analysis

Sustainability Report 2023 | Managing sustainability and climate risks 89

Sustainability Report 2023 | Managing sustainability and climate risks 89
Key highlights of UBS climate scenario analysis

Regulatory stress-testing exercises Since

– European Central Bank (ECB) climate risk 2021
stress test
– Bank of England Climate Biennial Exploratory
Scenario (CBES): financial risks from climate
change
– Swiss Financial Market Supervisory Authority
(FINMA) / Swiss National Bank (SNB) climate
risk assessment: focus on measurement of
climate-related transition risks Scenario analysis informed by industry
Since collaboration
2017
– 2 Degrees Investing Initiative (2DII); Paris
Agreement Capital Transition Assessment
(PACTA)
– Collaboration with the UNEP-FI TCFD
projects for banks
– Collaboration with the Natural Capital
Finance Alliance / UNEP-FI
In-house scenario analysis
Since
– A top-down stress test to assess the firm-wide
vulnerability to climate change
2014
– Bottom-up climate transition risk impacts on
oil, gas and electric utilities credit portfolio
– Bottom-up (asset level) physical acute climate
hazard potential impacts on mortgage
portfolios

Note: Climate risk analysis is a novel area of research, and, as the methodologies, tools, and data availability improve, we will further develop our risk identifica-
tion and measurement approaches. For further information please refer to the UBS Sustainability Report 2021 and 2022.

› Refer to the “Supplement to Managing sustainability and climate risks” section of the Supplement to the UBS
› Group Sustainability
Refer to Report
the “Supplement to2023, available
Managing at ubs.com/sustainability-reporting
sustainability and climate risks” section ,of
forthe
details about our
Supplement to climate
the UBS
scenario analysis at UBS and Credit Suisse
Group Sustainability Report 2023, available at ubs.com/sustainability-reporting, for details about our climate
scenario analysis
Monitoring and riskatappetite
UBS and Credit Suisse
setting
Our sustainability
Monitoring and and
riskclimate
appetiterisksetting
policy framework defines the qualitative risk appetite for sustainability and climate
risk and is subject to periodic updates
Our sustainability and climate risk policy and enhancements.
framework definesFollowing the acquisition
the qualitative of for
risk appetite thesustainability
Credit Suisseand
Group, the
climate
sustainability
risk and is subject to periodic updates and enhancements. Following the acquisition of the Credit Suisse Group, the
and climate risk appetites of UBS and Credit Suisse were revised to define combined standards for the
new combined
sustainability organization,
and climate risk aimed at supporting
appetites of UBS andmitigation andwere
Credit Suisse de-risking
revisedoftothe jointcombined
define risk profile.
standards for the
› Refer
new to theorganization,
combined “Supplement to Managing
aimed sustainability
at supporting and climate
mitigation risks” section
and de-risking of the
of the jointSupplement
risk profile.to the UBS
› Group Sustainability
Refer to Report
the “Supplement to2023, available
Managing at ubs.com/sustainability-reporting
sustainability and climate risks” section ,of
forthe
further details about
Supplement to the our
UBS
combined risk appetite
Group Sustainability Report 2023, available at ubs.com/sustainability-reporting, for further details about our
combined
As part of the risk appetite and climate risk monitoring process, we have developed methodologies and metrics to
sustainability
assess
As partour ongoing
of the exposureand
sustainability to climate
carbon-related assets and
risk monitoring climate-sensitive
process, sectors. In
we have developed developing our
methodologies andmetrics,
metricsweto
consider the inputs and guidance provided by standard-setting organizations as well as new or enhanced
assess our ongoing exposure to carbon-related assets and climate-sensitive sectors. In developing our metrics, we regulatory
requirements for climate
consider the inputs disclosures.
and guidance In 2023
provided we continued working
by standard-setting on methodologies
organizations as well as new covering climate-driven
or enhanced regulatory
transition, physical and nature-related risks. Examples of such enhancements include adding
requirements for climate disclosures. In 2023 we continued working on methodologies covering climate-driven issuer and traded
products
transition,inphysical
our riskand
monitoring and reporting
nature-related capabilities.
risks. Examples The table
of such below includes
enhancements includeclimate
addingrisk metrics
issuer andfor UBS
traded
Group excluding Credit Suisse and UBS AG on a standalone basis, as well as for UBS Switzerland
products in our risk monitoring and reporting capabilities. The table below includes climate risk metrics for UBS AG and UBS
Europe SE, both on
Group excluding a standalone
Credit Suisse andbasis.
UBSUBSAGwill
onpublish UBS Group
a standalone basis,and
as Credit
well asSuisse AG Switzerland
for UBS sustainabilityAG
andandclimate
UBS
risk metrics in a supplement to the UBS Group Annual Report and the UBS Group Sustainability
Europe SE, both on a standalone basis. UBS will publish UBS Group and Credit Suisse AG sustainability and climateReport in line with
the
risk publication
metrics in a timeline
supplementfor the semi-annual
to the UBS Group Pillar 3 disclosures
Annual Report andin the
thethird
UBS quarter of 2024.
Group Sustainability Report in line with
the publication timeline for the semi-annual Pillar 3 disclosures in the third quarter of 2024.

Sustainability Report 2023 | Managing sustainability and climate risks 90

Sustainability Report 2023 | Managing sustainability and climate risks 90
Carbon-related assets proportion of total customer lending exposure for UBS Group excluding Credit Suisse
Carbon-related
decreased to 7.2% assets proportion
in 2023 of total
from 7.5% in customer
2022. In 2023,lendingtheexposure
share of for UBS Group excluding
climate-sensitive sectors forCredit Suisse
UBS Group
decreased to 7.2% in 2023 from 7.5% in 2022. In 2023, the share of climate-sensitive
excluding Credit Suisse was 12.1% for transition risk and 9.7% for physical risk of our total customer lending sectors for UBS Group
excluding
exposure. Credit Suisse was 12.1% for transition risk and 9.7% for physical risk of our total customer lending
exposure.
The main driver for transition risk was an increase in exposure to commercial real estate in Switzerland. This risk
The main was
exposure driver for transition
associated risk passing
with the was an of increase in exposure
the Climate to commercial
and Innovation real estate inand
Act in Switzerland Switzerland.
the expectedThiszero-
risk
exposure was associated with the passing of the Climate and Innovation Act in Switzerland and
to-three-year impact on energy-efficiency rules in the commercial real estate sector. The key driver for physical risk the expected zero-
to-three-year
was exposureimpact
to the on energy-efficiency
services sector, which rules in thefinancial
includes commercial real estate
services sector.
activities The key driver
in emerging for Most
markets. physical
of risk
the
was exposure to the services sector, which includes financial services activities in emerging markets.
climate-sensitive physical risk exposure was located in countries that have high levels of capacity to adapt to physical Most of the
climate-sensitive
risk hazards. physical risk exposure was located in countries that have high levels of capacity to adapt to physical
risk hazards.
The year-end 2023 exposure to nature-sensitive sectors of the UBS Group was 15.1% of the total customer lending
The year-end
exposure. For2023 exposure torisk,
nature-related nature-sensitive
sensitivity was sectors of the
driven by UBS Group
sectors thatwas 15.1%
either haveof the totalimpact
a high customer
or lending
a high
exposure.
dependency on the natural environment. These include metals and mining, utilities, and agriculture. Ourorbusiness
For nature-related risk, sensitivity was driven by sectors that either have a high impact a high
dependency on the natural environment. These include metals and mining, utilities, and agriculture.
activities are concentrated in Lombard lending and the financial services sector, which are rated as having relatively Our business
activities are concentrated
low sensitivity to nature risk.in Lombard
A strong lending
correlationandcanthebe financial services
observed sector,
between whichrisk
climate aresensitivity
rated as having relatively
(both transition
low
and sensitivity to nature
physical) and risk. A strong
nature-related correlation
risks, with can be observed
a heightened correlationbetween climate risk sectors.
in climate-sensitive sensitivity (both transition
and physical) and nature-related risks, with a heightened correlation in climate-sensitive sectors.

Sustainability Report 2023 | Managing sustainability and climate risks 91

Sustainability Report 2023 | Managing sustainability and climate risks 91
Risk management – Climate- and nature-related metrics
%
For the year ended change
from
31.12.23 31.12.22 31.12.21 31.12.22
Climate- and nature-related metrics (USD billion)1, 2
Carbon-related assets UBS Group excluding Credit Suisse1, 2, 3, 4, 5 34.2 33.6 36.0 1.7
Carbon-related assets proportion of total customer lending exposure, gross (%)1, 2, 3, 4, 5 7.2 7.5 7.8
Carbon-related assets: UBS AG (standalone)1, 2, 3, 4, 5 8.5 8.6 9.9 (1.5)
Carbon-related assets: UBS Switzerland AG (standalone)1, 2, 3, 4, 5 26.6 24.6 25.6 8.0
Carbon-related assets: UBS Europe SE (standalone)1, 2, 3, 4, 5 0.0 0.0 0.0 (25.7)
Exposure to climate-sensitive sectors, transition risk UBS Group excluding Credit Suisse1, 2, 4, 5, 6 58.1 52.5 52.4 10.6
Climate-sensitive sectors, transition risk, proportion of total customer lending exposure, gross (%)1, 2, 4, 5, 6 12.1 11.7 11.4
Exposure to climate-sensitive sectors, transition risk: UBS AG (standalone)1, 2, 4, 5, 6 9.9 9.2 9.6 7.8
Exposure to climate-sensitive sectors, transition risk: UBS Switzerland AG (standalone)1, 2, 4, 5, 6 47.5 41.2 41.1 15.1
Exposure to climate-sensitive sectors, transition risk: UBS Europe SE (standalone)1, 2, 4, 5, 6 0.0 0.0 0.0 (0.1)
Exposure to climate-sensitive sectors, transition risk: Traded products, UBS Group excluding Credit Suisse1, 2, 4, 5, 6, 7 0.9
Exposure to climate-sensitive sectors, transition risk: Issuer risk, UBS Group excluding Credit Suisse1, 2, 4, 5, 6, 8 4.6
Exposure to climate-sensitive sectors, physical risk UBS Group excluding Credit Suisse1, 2, 4, 5, 6 46.2 38.0 36.7 21.4
Climate-sensitive sectors, physical risk, proportion of total customer lending exposure, gross (%)1, 2, 4, 5, 6 9.7 8.4 8.0
Exposure to climate-sensitive sectors, physical risk: UBS AG (standalone)1, 2, 4, 5, 6 52.7 44.8 42.1 17.7
Exposure to climate-sensitive sectors, physical risk: UBS Switzerland AG (standalone)1, 2, 4, 5, 6 15.7 14.8 16.0 5.8
Exposure to climate-sensitive sectors, physical risk: UBS Europe SE (standalone)1, 2, 4, 5, 6 0.0 0.0 0.0 122.3
Exposure to climate-sensitive sectors, physical risk: Traded products, UBS Group excluding Credit Suisse1, 2, 4, 5, 6, 7 7.2
Exposure to climate-sensitive sectors, physical risk: Issuer risk, UBS Group excluding Credit Suisse1, 2, 4, 5, 6, 8 15.7
Exposure to nature-related risks UBS Group excluding Credit Suisse1, 4, 5, 6, 9 72.0 64.6 67.3 11.4
Exposure to nature-related risks, proportion of total customer lending exposure, gross (%)1, 4, 5, 6, 9 15.1 14.4 14.7
Exposure to nature-related risks: UBS AG (standalone)1, 4, 5, 6, 9 14.4 12.0 12.7 20.1
Exposure to nature-related risks: UBS Switzerland AG (standalone)1, 4, 5, 6, 9 56.3 49.8 49.7 13.0
Exposure to nature-related risks: UBS Europe SE (standalone)1, 4, 5, 6, 9 0.1 0.0 0.0 205.1
Exposure to nature-related risks: Traded products, UBS Group excluding Credit Suisse1, 5, 7, 9 1.2
Exposure to nature-related risks: Issuer risk, UBS Group excluding Credit Suisse1, 5, 8, 9 3.5
1 Methodologies for assessing climate- and nature-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 are calculated and restated based
on the 2023 methodology, across three years of reporting, 2021–2023. 3 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, as well as 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. 4 Total customer lending exposure consists of total loans and advances to customers
and guarantees, as well as irrevocable loan commitments (within the scope of expected credit loss) and is based on consolidated and standalone IFRS numbers. The credit exposure
includes portfolio adjustment bookings, which are either directly impacting the metrics, and have been reflected in the heatmaps, or are impact assessed and immaterial to the metrics
representation. 5 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. 6 Climate- and nature-related risks are scored between 0 and 1, based on sustainability and climate risk transmission
channels, as outlined in the Supplement to the UBS Group Sustainability Report 2023. Risk ratings represent a range of scores across five-rating categories: low, moderately low,
moderate, moderately high, and high. The climate- or nature-sensitive exposure metrics are determined based upon the top three of the five rated categories: moderate to high. 7
Traded products are newly disclosed for FY 2023. Risk exposures consist of receivables from securities financial transactions, cash collateral receivables on derivative instruments and
financial assets measured at amortised cost. 8 Issuer Risk is newly disclosed for FY 2023. Risk exposures consist of HQLA assets, debt securities, bonds, liquidity buffer securities. 9
Nature-related risk metric methodology has been further strategically enhanced, as part of an ongoing collaboration between UBS and UNEP-FI.

The table below presents a view of UBS’s risk profile and changes year-on-year, within sectors and across climate-
and nature-related risks. It first shows UBS’s total exposure, and trend, to each sector, followed by an exposure-
weighted risk rating, the trend in the underlying quantitative score year-on-year, and finally shows the total absolute
exposure rated as moderate or higher within that sector. This is presented for all three risk types. Exposures may
appear under one or more of the risk types and therefore may not be added together; this is because the
methodologies are distinct in their approach and application.
Overall, UBS Group excluding Credit Suisse has a moderate or moderately low outlook across the three risk
categories at the end of 2023. We found that most year-on-year fluctuations were driven by an increase in lending
and changes in the risk profile relating to commercial real estate activities, especially in Switzerland. The changes
in the risk profile can be attributed to regulatory action in Switzerland regarding climate policies.
› Refer to our transition and physical risk heatmaps above

Sustainability Report 2023 | Managing sustainability and climate risks 92

Risk exposures by sector for UBS Group excluding Credit Suisse1, 2, 3, 4, 5
Risk exposures by sector for UBS Group excluding Credit
Transition risk Suisse1, 2, 3, 4, 5 Physical risk Nature-related risk8
Transition risk 2023 Physical risk 2023 Nature-related
2022- risk
8 2023
2022- nature-
2023
transition
2023 2022 physical
2023 2023
2022-
2022- 2023
2022- Weighted related
nature-
2023 Weighted risk
transition Weighted risk-
2022 risk
physical weighted
2023
2023
2022- average transition weighted
2023 average nature-
Weighted risk
related
Sector / Subsector exposure
2023 exposure Weighted average
climate
risk average physical
Weighted rating
risk- climate
risk related
average
weighted
(USD bn) 2023 risk rating 20237 weighted sensitive risk rating 20237 category sensitive averagerisk rating
nature- nature-
climate
risk
Sector / Subsector exposure trend6 average transition transition
exposure average
climate average physical rating climate 2023
related
7
risk rating
average sensitive
climate
(USD bn) risk rating 20237 risk trend6 exposure
sensitive risk rating 20237
6
category exposure
sensitive related
nature-
trend6 transition 20237 exposure
sensitive
(USD bn)5
exposure 6 (USD bn)5
exposure risk trend
related
6
risk trend6 (USD bn)5
exposure
(USD bn)5 (USD bn)5 risk trend6
Agriculture (USD bn)5
Agriculture
Agriculture, fishing and
forestry
0.30 ↑ Moderate → 0.23 Moderate → 0.08 High → 0.30
Agriculture, fishing and
0.30 ↑ Moderate → 0.23 Moderate → 0.08 High → 0.30
forestry
Food and beverage 3.72 ↑ Moderately high → 3.72 Moderate → 2.08 Moderate → 3.71
Food and beverage
Financial services 3.72 ↑ Moderately high → 3.72 Moderate → 2.08 Moderate → 3.71
Financial services
Financial services 60.72 ↑ Moderately low ↓ 0.00 Moderate → 17.47 Low → 0.06
Financial services
Fossil fuels 60.72 ↑ Moderately low ↓ 0.00 Moderate → 17.47 Low → 0.06
Fossil fuels refining,
Downstream
distribution refining,
0.25 ↓ Moderately high → 0.25 Moderate → 0.16 Moderately high → 0.24
Downstream
0.25 ↓ Moderately high → 0.25 Moderate → 0.16 Moderately high → 0.24
distributionoil and gas
Integrated 0.32 ↓ Moderately high → 0.32 Moderately low → 0.00 High → 0.32
Integrated
Midstream oil and gas
transport, 0.32 ↓ Moderately high → 0.32 Moderately low → 0.00 High → 0.32
storage
0.17 ↑ Moderate → 0.17 Moderate → 0.17 Moderately low → 0.00
Midstream transport,
0.17 ↑ Moderate → 0.17 Moderate → 0.17 Moderately low → 0.00
storage fossil fuels
Trading 4.55 ↓ Moderately high → 4.55 Moderate → 0.57 Moderate → 4.44
Trading fossil
Upstream fuels
extraction 4.55
0.21 ↓↑ Moderately
High high → 4.55
0.21 Moderate →
↓ 0.57
0.18 Moderate
High → 4.44
0.21
Upstream extraction
Industrials 0.21 ↑ High → 0.21 Moderate ↓ 0.18 High → 0.21
Industrials
Cement or concrete
manufacture
0.35 ↑ High → 0.35 Moderate → 0.13 High → 0.35
Cement or concrete
0.35 ↑ High → 0.35 Moderate → 0.13 High → 0.35
manufacture
Chemicals manufacture 1.71 ↑ High → 1.71 Moderate → 0.39 Moderately high ↓ 1.71
Chemicals
Electronics manufacture
manufacture 1.71
2.08 ↑ High low
Moderately → 1.71
0.00 Moderate → 0.39
0.53 Moderately
Moderatehigh ↓
→ 1.71
0.82
Electronics
Goods and manufacture
apparel 2.08 ↑ Moderately low → 0.00 Moderate → 0.53 Moderate → 0.82
manufacture
2.63 ↑ Moderately high → 2.63 Moderate → 1.58 Moderate → 2.55
Goods and apparel
2.63 ↑ Moderately high → 2.63 Moderate → 1.58 Moderate → 2.55
manufacture
Machinery manufacturing 3.73 ↑ Moderately high → 3.26 Moderate → 0.59 Moderately high → 3.72
Machinery manufacturing
Pharmaceuticals 3.73 ↑ Moderately high → 3.26 Moderate → 0.59 Moderately high → 3.72
manufacture
2.12 ↑ Moderately high → 2.12 Moderate → 0.89 Moderate → 2.10
Pharmaceuticals
Plastics and petrochemicals
manufacture
2.12 ↑ Moderately high → 2.12 Moderate → 0.89 Moderate → 2.10
manufacture
0.91 → Moderately high → 0.91 Moderate → 0.28 Moderate → 0.51
Plastics and petrochemicals
0.91 → Moderately high → 0.91 Moderate → 0.28 Moderate → 0.51
Metals and mining
manufacture
Metals and mining (incl.
Mining conglomerates
trading)
2.06 ↓ Moderately high → 2.06 Moderate → 0.05 Moderate → 2.06
Mining conglomerates (incl.
2.06 ↓ Moderately high → 2.06 Moderate → 0.05 Moderate → 2.06
trading)and quarrying
Mining 0.43 → Moderate → 0.12 Moderate → 0.37 High → 0.43
Mining andof
Production quarrying
metals 0.43
0.59 →
↑ Moderatehigh
Moderately → 0.12
0.59 Moderate → 0.37
0.39 High high
Moderately →
↓ 0.43
0.25
Production
Private of metals
lending 0.59 ↑ Moderately high → 0.59 Moderate → 0.39 Moderately high ↓ 0.25
Private
Lombard lending 122.76 ↓ Moderately low → 0.00 Moderately low → 0.00 Low → 0.00
Lombard
Private lending, credit cards, 122.76 ↓ Moderately low → 0.00 Moderately low → 0.00 Low → 0.00
others9 lending, credit cards,
2.90 ↓ Not classified → 0.00 Not classified → 0.00 Not classified → 0.00
Private
2.90 ↓ Not classified → 0.00 Not classified → 0.00 Not classified → 0.00
Real estate
others 9

Real estate and

Development
management and
4.58 ↓ Moderately high → 4.40 Moderately low → 0.42 Moderately high → 4.58
Development
4.58 ↓ Moderately high → 4.40 Moderately low → 0.42 Moderately high → 4.58
managementreal estate
Commercial 55.09 ↑ Moderate → 24.75 Moderately low → 2.87 Moderately low → 26.71
Commercialreal
Residential realestate
estate 55.09
176.70 ↑ Moderatelow
Moderately → 24.75
0.00 Moderately
Low low → 2.87
0.00 Moderately
Low low → 26.71
0.00
Residentialand
Services real estate 176.70 ↑ Moderately low → 0.00 Low → 0.00 Low → 0.00
technology
Services and
technology
Services and technology 19.10 ↑ Moderately low → 0.00 Moderate → 11.24 Moderate → 10.49
Services and technology
Sovereigns 19.10 ↑ Moderately low → 0.00 Moderate → 11.24 Moderate → 10.49
Sovereigns
Sovereigns 2.77 → Moderate → 0.09 Moderately low → 0.04 Low → 0.00
Sovereigns
Transportation 2.77 → Moderate → 0.09 Moderately low → 0.04 Low → 0.00
Transportation
Air transport 1.72 → Moderately high → 1.72 Moderate → 1.58 Moderately high → 1.72
Air transport
Automotive 1.72
0.41 →
↑ Moderately
Moderatehigh → 1.72
0.11 Moderate → 1.58
0.36 Moderately
Moderatehigh → 1.72
0.41
Automotive
Rail freight 0.41
0.50 ↑ Moderate
Low → 0.11
0.00 Moderate → 0.36
0.39 Moderate → 0.41
0.49
Rail freight
Road freight 0.50
0.51 ↑
→ Low high
Moderately → 0.00
0.51 Moderate → 0.39
0.43 Moderatehigh
Moderately → 0.49
0.51
Road
Transitfreight 0.51
0.59 → Moderately
Moderately high
low → 0.51
0.00 Moderate → 0.43
0.54 Moderately
Moderatehigh → 0.51
0.23
Transit
Transportation parts and 0.59 → Moderately low → 0.00 Moderate → 0.54 Moderate → 0.23
equipment supply
0.65 ↑ Moderately high → 0.65 Moderate ↓ 0.34 Moderate → 0.65
Transportation parts and
0.65 ↑ Moderately high → 0.65 Moderate ↓ 0.34 Moderate → 0.65
equipment supply
Water transport 0.64 ↑ Moderately high → 0.64 Moderate → 0.64 Moderately high → 0.64
Water transport
Utilities 0.64 ↑ Moderately high → 0.64 Moderate → 0.64 Moderately high → 0.64
Utilities
Power generation 1.73 → High → 1.71 Moderate ↓ 1.36 Moderately high → 1.73
Power generation
Waste treatment 1.73
0.27 →
↑ High high
Moderately →
↑ 1.71
0.27 Moderate ↓
→ 1.36
0.05 Moderately
Moderately high
low →
↓ 1.73
0.02
Waste
Not treatment9
classified 0.27
0.12 ↑ Moderately high
Not classified ↑
→ 0.27
0.00 Moderate
Not classified → 0.05
0.00 Moderately low
Not classified ↓
→ 0.02
0.00
Not classified9 0.12 ↑ Not classified → Not 0.00
classified
Moderately → 0.00 Not classified
Moderately → 0.00
Grand Total 477.89 ↑ Moderate → 58.05 → 46.18 → 71.97
low
Moderately low
Moderately
Grand Total 477.89 ↑ Moderate → 58.05 → 46.18 → 71.97
low
1 Methodologies for assessing climate- and nature-related risks are emerging and may change over time. As the methodologies, tools, and low
data availability improve, we will further
develop
1 our risk identification
Methodologies for assessingand measurement
climate- approaches.
and nature-related Lombard
risks lending and
are emerging rating is assigned
may based
change over on the
time. average
As the riskiness of loans.
methodologies, 2 Metrics
tools, and are calculated
data availability and we
improve, restated based
will further
on the 2023
develop methodology,
our risk across
identification and three years of reporting,
measurement approaches.2021–2023. 3 Total
Lombard lending customer
rating lending
is assigned exposure
based on theconsists
averageofriskiness
total loans and advances
of loans. to customers
2 Metrics and guarantees,
are calculated and restatedas well
based
as
on irrevocable loan commitments
the 2023 methodology, across (within the of
three years scope of expected
reporting, credit loss)
2021–2023. and customer
3 Total is based on consolidated
lending exposureand standalone
consists of totalIFRS Accounting
loans Standards
and advances numbers.
to customers andThe credit exposure
guarantees, as well
includes portfolio
as irrevocable loanadjustment
commitments bookings,
(withinwhich are either
the scope directly impacting
of expected credit loss)the metrics,
and is basedandonhave been reflected
consolidated in the heatmaps,
and standalone or are impact
IFRS Accounting assessednumbers.
Standards and immaterial to the
The credit metrics
exposure
representation. 4 UBS continues
includes portfolio adjustment to collaborate
bookings, which areto resolve
either methodological
directly impacting the andmetrics,
data challenges,
and have beenand seeks to integrate
reflected both impacts
in the heatmaps, or aretoimpact
and dependency
assessed andonimmaterial
a changing to natural and
the metrics
climatic environment,
representation. 4 UBSin how it evaluates
continues risks andto
to collaborate opportunities. 5 Climate-and
resolve methodological anddata
nature-related
challenges,risks
andare scored
seeks betweenboth
to integrate 0 andimpacts
1, based toonandsustainability
dependencyand on climate risk transmission
a changing natural and
channels, as outlined in
climatic environment, in how
the Supplement to the
it evaluates risks andUBS Group Sustainability
opportunities. Report
5 Climate- 2023. Risk ratings
and nature-related represent
risks are scored abetween
range of0 and
scores across on
1, based five-rating categories:
sustainability low, moderately
and climate low,
risk transmission
moderate,
channels, asmoderately
outlined in high,
the and high. Thetoclimate-
Supplement the UBSor Group
nature-sensitive exposure
Sustainability Reportmetrics
2023.are determined
Risk based upon
ratings represent the top
a range three of
of scores the five
across rated categories:
five-rating moderate
categories: to high. low,
low, moderately 6A
material
moderate, change in risk high,
moderately profileand
(discrete risk climate-
high. The score, weighted average perexposure
or nature-sensitive sub-sector) is considered
metrics as >5%based
are determined shift up,
uponorthe
down
topyear onofyear.
three Similarly,
the five rated for absolutemoderate
categories: Displayed
exposure.to 7high. 6A
ratings represent exposure-weighted averages for a given sector scope. 8 Nature-related risk metric methodology has been further strategically enhanced,
material change in 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. 7 Displayed as part of an ongoing
collaboration between UBS and UNEP-FI. 9 Not classified represents the portion of UBS's business activities where methodologies and data are not
ratings represent exposure-weighted averages for a given sector scope. 8 Nature-related risk metric methodology has been further strategically enhanced, as part of an ongoing yet able to provide a rating, e.g.
private Individuals.
collaboration between UBS and UNEP-FI. 9 Not classified represents the portion of UBS's business activities where methodologies and data are not yet able to provide a rating, e.g.
private Individuals.

Sustainability Report 2023 | Managing sustainability and climate risks 93

Sustainability Report 2023 | Managing sustainability and climate risks 93
Risk management and control
Risk management
In 2023, UBS continuedand control
to develop solutions to integrate sustainability and climate risks into traditional risk
In
categories, such as UBS’sto credit,
2023, UBS continued developmarket,
solutions to integrate
liquidity, sustainability
treasury, and otherand climate risks
non-financial riskinto traditional risk
frameworks. We
categories, such as UBS’s credit, market, liquidity, treasury, and other non-financial
progressively enhanced our four-stage approach (defined above in the sustainability and climate risk managementrisk frameworks. We
progressively enhanced our four-stage approach (defined above in the sustainability and climate
framework) by leveraging research on how sustainability and climate risk drivers may be transmitted to our clients risk management
framework) by leveraging
(and their assets) research
and ultimately on how
to UBS sustainability
in the and climate
form of financial risk drivers may
and non-financial risks.beOur
transmitted
approachto our clients
supports the
(and their assets) and ultimately to UBS in the form of financial and non-financial risks. Our approach
ongoing management of sustainability and climate risks as they manifest across traditional risk categories and has supports the
ongoing management of sustainability and climate risks as they manifest across traditional risk
been built in line with principles outlined by the Basel Committee on Banking Supervision (the BCBS) and the Task categories and has
been
Force built in line with principles
on Climate-related outlined
Financial by the
Disclosures Basel
(the Committee
TCFD, on Banking
now organized underSupervision
the ISSB). (the BCBS) and the Task
Force on Climate-related
› Refer to the “SupplementFinancial Disclosures
to Strategy” section(the
of TCFD, now organized
the Supplement to the under the ISSB).
UBS Group Sustainability Report 2023,
› Refer to the
available “Supplement to Strategy” section
at ubs.com/sustainability-reporting of the
, for our Supplement to the UBS Group
materiality methodology Sustainability Report 2023,
diagram
available at ubs.com/sustainability-reporting, for our materiality methodology diagram
Our progress is summarized in the following table.
Our progress
Managing is summarized
sustainability in risks
and climate the within
following table.
traditional risk categories
Managing sustainability and climate risks within traditional risk categories
Traditional risk Sustainability and climate risk Our progress in 2023 and looking ahead to 2024
category risk
Traditional transmission channels
Sustainability to UBS
and climate risk Our progress in 2023 and looking ahead to 2024
category transmission channels to UBS
Credit risk Potential credit losses to UBS driven by risks Over the course of 2023, we further embedded climate and nature risks into our
Credit risk from a changing
Potential physical
credit losses climate,
to UBS driven theby risks creditthe
Over riskcourse
management
of 2023,frameworks. By collaborating
we further embedded climate across business
and nature divisions
risks and
into our
transition to a low-carbon
from a changing economy
physical climate, theor between
credit riskboth the first and
management second lines
frameworks. By of defense, weacross
collaborating developed
businessinnovative
divisionssolutions
and
impacts and/or
transition dependencies
to a low-carbon on ouror
economy natural tailored toboth
between the the
risk first
profiles
andand material
second lines drivers of riskwe
of defense, within our businesses:
developed innovative solutions
environment
impacts and/or (e.g., biodiversity,onclean
dependencies water
our natural tailored to the risk
– Investment profiles
Bank: Theand material
current drivers of risk
credit-granting withinhas
process ourbeen
businesses:
amended to
and fresh air).(e.g., biodiversity, clean water
environment – Investment Bank: The
identify and measure thecurrent
potential for credit losses
credit-granting driven
process hasbybeen
climate and nature-
amended to
and freshand
Climate air).nature risk drivers can impact related risks
identify and for corporate
measure lending and
the potential leveraged
for credit lossesfinance,
driven including
by climatecounterparty
and nature-
household,
Climate andcorporate,
nature riskordrivers
sovereign income
can impact credit risk
related across
risks relevant portfolios.
for corporate lending and Atleveraged
the transaction
finance,level, this is achieved
including by
counterparty
and/or wealth.
household, Physicalor
corporate, and transition
sovereign risk
income integrating
credit tools relevant
risk across such as sector-level
portfolios. At climate and naturelevel,
the transaction heatmaps
this is and company-
achieved by
drivers increase
and/or potentialand
wealth. Physical losses to UBSrisk
transition as level due diligence
integrating tools such scorecards into theclimate
as sector-level credit and
approval
nature analysis
heatmapsand and
decision-making
company-
soon asincrease
drivers they have a negative
potential losseseffect on aas
to UBS process.
level dueIndiligence
addition,scorecards
at the portfolio
into the level, weapproval
credit have established
analysis andconcentration
decision-making
borrower’s
soon as theyability
have to repay and/or
a negative effectfully
on a triggers for
process. all relevant
In addition, at counterparties.
the portfolio level, Furthermore, efforts were
we have established made to enhance
concentration
recover the ability
borrower’s value ofto arepay
loan and/or
in the event
fully of and automate
triggers reportingcounterparties.
for all relevant of the full Investment Bank lending
Furthermore, portfolio,
efforts were madeon toaenhance
default. the value of a loan in the event of
recover quarterly
and automatebasis.reporting
Finally, further
of themonitoring
full Investmentand Bank
reporting of lending
lending portfolio,to specific
on a
default. sectors under
quarterly basis.the firm’sfurther
Finally, net-zero commitment
monitoring and were implemented
reporting of lendingastopart of the
specific
risk control
sectors under framework
the firm’ssupporting UBS’s decarbonization
net-zero commitment targets. as part of the
were implemented
Global
– risk Wealth
control Management:
framework supporting The current
UBS’s credit-granting
decarbonization process has been
targets.
– Global
amended Wealth Management:
to identify and measure Thethecurrent
potential for credit losses
credit-granting driven
process hasbybeen
climate
and nature-related
amended to identifyrisksandfor Lombard
measure thelending
potentialin Switzerland
for credit lossesand driven
international
by climate
locations.
and This is achieved
nature-related risks forbyLombard
integrating toolsinsuch
lending as sector-level
Switzerland climate and
and international
nature heatmaps
locations. and company-level
This is achieved by integrating duetools
diligence
such scorecards
as sector-levelinto climate
the credit
and
approval
nature analysis and decision-making
heatmaps company-level due process,
diligencewithscorecards
a focus oninto loans
theto operating
credit
companies
approval and those
analysis backed by concentrated
and decision-making process,equity
with aposted
focus on as loans to operating
collateral. Furthermore,
companies and those backed effortsbywere made to enhance
concentrated and automate
equity posted as reporting of
the full Global
collateral. Wealth Management
Furthermore, efforts were madeLombard lending portfolio,
to enhance and automate on a quarterly
reporting of
basis,
the fullincluding the integration
Global Wealth Management of heatmaps
Lombardusing lendingthe portfolio,
"jump-to-zero” analytical
on a quarterly
engine.
basis, including the integration of heatmaps using the "jump-to-zero” analytical
Personal & Corporate Banking: The current credit-granting process has been
– engine.
– Personal
amended & to Corporate
identify theBanking:
potential forThecredit losses
current driven by climate
credit-granting process and
hasnature-
been
related risks
amended to within
identifythe themultinationals portfolio
potential for credit losses(managed
driven by at climate
the parent/group
and nature-
level). This
related risksis within
achievedtheby integrating tools
multinationals such (managed
portfolio as climate at riskthe
heatmaps into credit
parent/group
due diligence
level). towards by
This is achieved supporting
integrating an tools
informed
suchsubsequent
as climate riskdecision-making
heatmaps into credit
process
due on financial
diligence towards risk. Furthermore,
supporting efforts were
an informed made todecision-making
subsequent enhance and
automate
process onreporting
financial of theFurthermore,
risk. full Personalefforts
& Corporate
were made Banking lending portfolio,
to enhance and on
a quarterlyreporting
automate basis. Finally,
of the further monitoring
full Personal and reporting
& Corporate Bankingof lending to specificon
portfolio,
asectors under
quarterly the Finally,
basis. firm’s net-zero commitment
further monitoring and were implemented
reporting of lending as part of the
to specific
risk control
sectors under framework
the firm’ssupporting UBS’s decarbonization
net-zero commitment targets. as part of the
were implemented
Looking aheadframework
risk control to 2024 and beyond,
supporting we have
UBS’s identified three
decarbonization key areas for further
targets.
Looking
development:ahead to 2024 and beyond, we have identified three key areas for further
development:
– UBS will begin planning an expansion of 2023 efforts, with the goal of rolling out
– the approaches
UBS to other an
will begin planning regions and portfolios,
expansion in line with the multi-year
of 2023 efforts, SCRout
goal of rolling
initiative. This includes
the approaches to othersolutions
regions like
andintegrating climate
portfolios, in andthe
line with nature-related risk
multi-year SCR
ratings as This
initiative. inputs into the
includes credit decision-making
solutions process,and
like integrating climate defining quantitative
nature-related risk risk
appetites
ratings as at various
inputs intolevels, and training
the credit business representatives
decision-making process, defining in quantitative
climate and risk
nature-related
appetites financial
at various riskand
levels, analysis.
training business representatives in climate and
– Enhance 2023 financial
nature-related methodologies with data granularity and automation: UBS is
risk analysis.
– building capacity
Enhance to be able to with
2023 methodologies furtherdatadifferentiate
granularityrisks
and at the company/issuer
automation: UBS is
level. Through
building thetonew
capacity “climate
be able risk rating
to further model”,risks
differentiate UBSat
willtheincorporate third-
company/issuer
party Through
level. data in antheautomated model,
new “climate risksorating
as to model”,
be able to further
UBS establish company-
will incorporate third-
level
partyperformance against inherent
data in an automated model, risks
so asdefined through
to be able the sector-level
to further heatmap.
establish company-
– Simplify
level various methodologies:
performance against inherent UBSrisks
willdefined
seek to through
simplify its
theapproach by heatmap.
sector-level aligning
– various risk-rating
Simplify methodologiesUBS
various methodologies: for will
transition
seek torisk assessments.
simplify its approach by aligning
various risk-rating methodologies for transition risk assessments.

Sustainability Report 2023 | Managing sustainability and climate risks 94

Sustainability Report 2023 | Managing sustainability and climate risks 94
 Market risk Potential financial impacts to UBS from price In 2023, we assessed the risk from planned portfolios, in line with our multi-year SCR
(traded risk
Market and shifts and/or
Potential market
financial volatility.
impacts A changing
to UBS from price Initiative,
In 2023, we andassessed
established solutions
the risk for integrating
from planned climate
portfolios, andwith
in line nature-related risksSCR
our multi-year into
not traded)
(traded and physical
shifts environment
and/or (including
market volatility. A climate
changing our market
Initiative, riskestablished
and management framework.
solutions Progress climate
for integrating on integrating climate and risks
and nature-related nature-
into
not traded) change) environment
physical may affect the value of climate
(including companies related
our risksrisk
market intomanagement
our market risk management
framework. was on
Progress incrementally
integrating driven enhancing
climatebyand nature-
reliant onmay
change) theaffect
natural
theenvironment and/or
value of companies analytical
related riskscapacity, automating
into our market UBS sector-level
risk management heatmaps in our
was incrementally driven by enhancing
market risk
how the
reliant onmarket perceives
the natural these companies.
environment and/or monitoring capacity,
analytical automating
systems, and establishing a quantitative
UBS risk appetite.
sector-level heatmaps in our market risk
The transition
how the marketto perceives
a low-carbon theseeconomy
companies. monitoring
Enhancing systems,
analyticaland establishing
capacity: a quantitative
Leveraging risk appetite.
existing sector-level heatmap
through
The climate
transition to policies,
a low-carbonlow-carbon
economy Enhancing
methodologiesanalytical
and ourcapacity:
in-house scenario
Leveragingdevelopment capacity, heatmap
existing sector-level we sought to
technologies,
through demand
climate shifts
policies, and/or market
low-carbon perform a loss-driven
methodologies materiality
and our in-house assessment. By linking the
scenario development risk ratings
capacity, with adverse-
we sought to
perception may
technologies, also impact
demand shifts the value
and/or of
market scenario-driven
perform shocks,
a loss-driven UBS was assessment.
materiality able to furtherBy examine therisk
linking the correlations between
ratings with risk
adverse-
UBS’s positions
perception may and/or lead to
also impact thea value
breakdown
of factors and understand
scenario-driven the short-term
shocks, UBS was able toloss potentials
further examinefor the
climate. For the between
correlations first time risk
in
in correlations
UBS’s positionsbetween
and/or leadrisk to
factors (e.g.,
a breakdown 2023, UBS
factors andwas also ablethe
understand to short-term
review nature
lossrisk sensitivities,
potentials following
for climate. Forthe
theintroduction
first time in
prompting
in a change
correlations betweenin market liquidity
risk factors (e.g., of a nature
2023, risk heatmap.
UBS was also able to review nature risk sensitivities, following the introduction
and/or challenging
prompting a changeassumptions in UBS’s
in market liquidity of a nature riskMarket
heatmap.
Automation: risks systems allow daily monitoring, reporting and control. By
model).challenging assumptions in UBS’s
and/or
Automation:
integrating these with risks
Market our centralized
systems allowclimate
dailysector-level
monitoring,heatmaps,
reporting we
andare able to
control. By
model).
understand these
integrating and react
withto drivers
our of climate
centralized impacts
climate on our heatmaps,
sector-level portfolios through the use
we are able to
of a quantitative
understand risk appetite
and react to driversforofrelevant
climate portfolios.
impacts on our portfolios through the use
of a quantitative
Quantitative risk
risk appetite For
appetite: for relevant portfolios.
the relevant portfolios, climate risk concentration
Quantitative risk appetite:
triggers were introduced in 2023 based
For the on theportfolios,
relevant sector-level climate
climate riskrisk heatmaps. The
concentration
solution were
triggers allowsintroduced
for daily monitoring of positions
in 2023 based that are considered
on the sector-level climate riskinherently
heatmaps. The
sensitive allows
solution to climate risks,monitoring
for daily including an
ofautomated breach
positions that escalation process
are considered along with
inherently
the market
sensitive to risk escalation
climate path for concentration
risks, including an automated limits,
breachproviding
escalationanprocess
opportunity
along for
with
remediation
the market riskactions. The triggers
escalation path forcover credit delta
concentration and equity
limits, delta
providing anaggregated
opportunityinfor
accordance with
remediation the “sensitivity,”
actions. as defined
The triggers cover credit through
delta andthe UBS delta
equity heatmapping
aggregated in
methodology.
accordance with the “sensitivity,” as defined through the UBS heatmapping
methodology.
Looking ahead to 2024 and beyond, UBS is building the capacity to be able to
Looking ahead to 2024
further differentiate and
risks at thebeyond,
company/issuer level. Through
UBS is building the new
the capacity to be“climate
able torisk
rating model”,
further UBS will
differentiate risksincorporate third-party data
at the company/issuer level.with an automated
Through model torisk
the new “climate be
able tomodel”,
rating further establish company-level
UBS will incorporate performance
third-party against
data with an inherent
automated risks defined
model to be
through
able the sector-level
to further heatmap. We have
establish company-level also started
performance to adapt
against UBS risks
inherent in-house long-
defined
term scenarios
through to the specifics
the sector-level heatmap.of short-term
We have alsomarket risk to
started analytical requirements.
adapt UBS in-house long-
Further
term adaptation
scenarios and
to the implementation
specifics of this
of short-term short-term
market perspective
risk analytical of UBS’s adverse
requirements.
climate scenario
Further adaptationis expected for 2024. of this short-term perspective of UBS’s adverse
and implementation
climate scenarioand
The capabilities is expected
processes forcurrently
2024. established and under development are also
being
The planned for
capabilities andexpansion
processestocurrently
the UBSestablished
global marketandrisk
underportfolios in 2024.
development are also
being planned for expansion to the UBS global market risk portfolios in 2024.
Liquidity risk The potential impact on liquidity adequacy is In 2023, UBS enhanced its analytical capability to assess the impact of climate shocks
Liquidity risk driven
The by risksimpact
potential from aon changing
liquidityphysical
adequacy is on2023,
In the liquidity position its
UBS enhanced of planned
analyticalportfolios,
capability intoline with
assess the the multi-year
impact SCR Initiative.
of climate shocks
climate,bythe
driven transition
risks to a low-carbon
from a changing physical For the
on the liquidity
first timeposition
in 2023,ofUBS was also
planned able toinreview
portfolios, nature
line with the risk sensitivities,
multi-year SCR Initiative.
economy,
climate, the ortransition
impacts and/or dependencies
to a low-carbon following
For the firstthe introduction
time of a was
in 2023, UBS nature
alsorisk heatmap.
able to review Asnature
part ofriskthesensitivities,
SCR Initiative, the
on our natural
economy, environment
or impacts and/or (e.g.,
dependencies 2023 climate
following the and environmental
introduction assessment
of a nature is being As
risk heatmap. developed
part of the further
SCR for global the
Initiative,
biodiversity,
on our natural clean water, fresh
environment air). Climate
(e.g., rolloutclimate
2023 in the coming years, 2024assessment
and environmental and 2025. In addition,
is being a dedicated
developed Treasury
further Risk
for global
events have been
biodiversity, clean proven to affect
water, fresh air).funding
Climate Controlinteam,
rollout focusing
the coming on sustainability
years, 2024 and 2025. and climate risks,a was
In addition, established
dedicated in Q3
Treasury Risk2023
conditions,
events haveand been therefore
proven to liquidity
affect buffers
funding to support
Control thisfocusing
team, work. Theonintegration of identified
sustainability and climate material climate-related
risks, was established risks
in Q3into2023
across broader
conditions, andbanks (BCBS).
therefore Climate-
liquidity buffers thesupport
to internalthis
liquidity
work.risk
Themanagement
integration offramework
identified will be anclimate-related
material iterative process as into
risks we
relatedbroader
across risks arebanks
considered
(BCBS). asClimate-
an additional continuously
the improverisk
internal liquidity themanagement
methodology, along withwill
framework improving the availability
be an iterative process as and we
driver ofrisks
related liquidity risk. As such,
are considered they
as an may
additional quality of required
continuously improvedata
theinmethodology,
the industry, and enhanced
along analyticsthe
with improving andavailability
insights over
and time.
impactofour
driver liquidity
liquidity adequacy
risk. As such,directly
they may or quality of required data in the industry, and enhanced analytics and insights over time.
indirectly
impact our through
liquidityour ability todirectly
adequacy raise funds,
or
liquidate assets
indirectly through and/or our customers’
our ability to raise funds,
demand for
liquidate liquidity.
assets and/orThisourcould result in net
customers’
cash outflows
demand or depletion
for liquidity. of our
This could liquidity
result in net
buffer.
cash outflows or depletion of our liquidity
buffer.
Non-financial Non-financial impact on UBS (compliance, In 2023, we continued to integrate climate considerations into the existing NFR
risk (NFR)
Non-financial operational risk
Non-financial and financial
impact crime) from
on UBS (compliance, management
In framework.
2023, we continued Specific climate
to integrate climaterisk driver scenarios
considerations intowere definedNFR
the existing for impact
risk (NFR) inadequate or
operational riskfailed internal processes,
and financial crime) from on the exposure
management to taxonomy
framework. NFR,climate
Specific documented in a scenarios
risk driver consolidated wereRoot Cause
defined forLibrary
impact
people and or
inadequate systems
failed and/or
internalexternally
processes, due to to assess
on the completeness
the exposure to taxonomy of NFR,
controls against known
documented transmissionRoot
in a consolidated channels.
CauseBy the
Library
physicaland
people climate events
systems or stakeholder
and/or externally duelegalto endassess
to of 2023, 14 out of 18 taxonomies
the completeness were assessed
of controls against known (with a targetchannels.
transmission to completeBy the
action climate events or stakeholder legal
physical across
end of residual
2023, 14 taxonomies by mid-2024).
out of 18 taxonomies wereWeassessed
also started
(withtoa develop
target toa complete
roadmap to
action integrate
across climate-related
residual taxonomies considerations
by mid-2024). into
Weoperational
also startedrisk to regulatory/economic
develop a roadmap to
capital determination
integrate climate-related for considerations
inclusion in theinto
GCRG NFR measurement
operational model governance
risk regulatory/economic
processdetermination
capital with selective for calibration
inclusionapplied
in the initially
GCRG NFR to Suitability
measurement and Product Lifecycle.
model governance
Given current
process strong capitalization,
with selective related
calibration applied ESG risks
initially were assessed
to Suitability as sufficiently
and Product and
Lifecycle.
inherently
Given captured
current strongincapitalization,
their respective standalone
related ESG riskscapital
wereexposures,
assessed as but GCRG willand
sufficiently
continue tocaptured
inherently build oninitstheir
modelling capabilities
respective standalone by enhancing and expanding
capital exposures, but GCRG the will
risk
identification
continue and on
to build materiality assessment
its modelling to beby
capabilities performed
enhancing quantitatively
and expanding across
the risk
relevant NFR categories
identification and account
and materiality for material
assessment climate-related
to be performed model dynamics.
quantitatively across
relevant NFR categories and account for material climate-related model dynamics.
Reputational Risk of an unfavorable perception, or a We assessed the design of the reputational risk framework to be generally robust in
risk
Reputational decline
Risk of anin UBS’s reputation,
unfavorable from the
perception, or point
a terms
We of rolesthe
assessed anddesign
responsibilities, escalationrisk
of the reputational requirements,
framework to andbereview androbust
generally approvalin
risk of view in
decline of UBS’s
clients,reputation,
industries,from
shareholders,
the point authorities
terms for and
of roles sustainability-related risks. Therequirements,
responsibilities, escalation reputational risk anddashboard
review and now
approval
regulators,
of employees
view of clients, or the shareholders,
industries, general public, captures theforkey
authorities risk indicators on arisks.
sustainability-related quarterly basis, including
The reputational riskmetrics
dashboardfor financial
now
which may employees
regulators, lead to potential
or thefinancial losses
general public, crime prevention,
captures the key risk sustainability
indicators onanda climate
quarterly risks, client
basis, complaints,
including new
metrics forbusiness
financialand
and/or may
which loss lead
of market share. financial losses
to potential reputational
crime risk cases.
prevention, sustainability and climate risks, client complaints, new business and
and/or loss of market
Risk is considered share.
across all business reputational risk cases.
activities,
Risk transactions,
is considered and
across all decisions.
business
activities, transactions, and decisions.
› Refer to the “Supplement to Managing sustainability and climate risks” section of the Supplement to the UBS
› Refer
Groupto the “Supplement
Sustainability to2023,
Report Managing sustainability
available and climate risks” section ,of
at ubs.com/sustainability-reporting forthe Supplement
more to the
information UBSour
about
Group Sustainability Report 2023, available at ubs.com/sustainability-reporting
vision for integrating sustainability and climate risks , for more information about our
vision for integrating sustainability and climate risks
Sustainability Report 2023 | Managing sustainability and climate risks 95
Sustainability Report 2023 | Managing sustainability and climate risks 95
We manage and escalate material climate risks in a timely manner, following our standard financial and non-
We manage
financial and escalate
risk processes andmaterial
defining climate risks in a timely
key responsibilities manner,
and tools both following
at the Group our level
standard financial
and across ourand non-
business
financial risk processes and defining key responsibilities and tools both at the Group level
divisions. To promote the adoption of consistent risk management practices across the Group, we have conductedand across our business
divisions. To promote
climate risk-related the adoption
training of consistent
for employees across risk management
the business practices
divisions acrossFunctions.
and Group the Group,Inwe have
2023, theconducted
SCR unit
climate
provided training and education sessions focused on sustainability and climate risks and emerging risksSCR
risk-related training for employees across the business divisions and Group Functions. In 2023, the suchunit
as
provided training and education sessions focused on sustainability and climate risks
greenwashing. These sessions were delivered to colleagues across the firm (44 training sessions delivered such
and emerging risks as
to over
greenwashing . These sessions were delivered to colleagues
25,000 colleagues across business divisions and Group Functions). across the firm (44 training sessions delivered to over
25,000 colleagues across business divisions and Group Functions).
At Credit Suisse, climate risk management has been underpinned by a sector-specific client energy transition
At Credit Suisse,
framework (CETF),climate
which risk
was management
leveraged until hasthebeen
end underpinned
of 2023, when by athesector-specific
framework was client energy transition
decommissioned. A
framework (CETF),
group-wide approachwhich was developed
is being leveraged byuntil
thethe end of firm
combined 2023, to when
assessthe framework
clients’ was decommissioned.
energy transition readiness, withA
group-wide approach is being developed
further developments expected throughout 2024. by the combined firm to assess clients’ energy transition readiness, with
further developments
› Refer to “Appendixexpected throughout
3 – Entity-specific 2024. for Credit Suisse AG” in the appendices to this report for a
disclosures
› Refer to “Appendix
description of Credit3Suisse’s
– Entity-specific
CETF disclosures for Credit Suisse AG” in the appendices to this report for a
description of Credit Suisse’s CETF
Risk reporting and disclosure
Risk reporting and disclosure
Sustainability and climate risk updates are an integral part of UBS Group’s quarterly risk reporting cycle. Information
Sustainability
shared duringand thisclimate
processriskincludes
updates theare an integralofpart
number of UBS Group’s
transactions quarterly
referred to theriskSCRreporting cycle.
unit, and anInformation
associated
shared during this process includes the number of transactions referred
breakdown by category. Assessment outcomes and the underlying reasons are also reported. The report to the SCR unit, and an associated
includes
breakdown by category. Assessment outcomes and the underlying reasons are also reported.
information on exposure to climate-sensitive sector activities (our climate transition risk heatmap), leveraging The report includes
a fully
information
automated process. The heatmaps are also included in quarterly internal risk reports for key legal entitiesa fully
on exposure to climate-sensitive sector activities (our climate transition risk heatmap), leveraging and
automated process. The heatmaps are also included in quarterly internal risk reports for key legal entities and
business divisions.
business divisions.
Internal risk reporting in our Asset Management business division is facilitated by a proprietary ESG dashboard,
Internal riskphysical
which uses reporting andin transition
our Assetclimate
Management
risk databusiness division
to generate is facilitated
alerts by arisk
across several proprietary ESG highlighting
dimensions, dashboard,
which uses physical and transition climate risk data to generate alerts across several
the highest risk issuers. This information is leveraged in ESG risk recommendations and investment decisions. risk dimensions, highlighting
the highest risk issuers. This information is leveraged in ESG risk recommendations and investment decisions.
For external climate-related risk reporting, we have prepared our annual disclosures across the key areas
For external climate-related
recommended by the TCFD. In risk reporting,
addition, we have
we have been prepared
leveragingour the annual
framework disclosures
providedacross
by thethe keyforareas
TNFD the
recommended by the TCFD. In addition, we have been leveraging the framework provided
disclosure of nature-related risk. Our external quantitative and qualitative disclosures are being progressively by the TNFD for the
disclosure
extended toofinclude
nature-related risk. Our
Credit Suisse’s external
portfolio, quantitative
in order to capture and
thequalitative
level of riskdisclosures are being
of the combined entityprogressively
and provide
extended to include Credit Suisse’s portfolio, in order to capture the level of risk of the
relevant information for decision-making. With an internal reporting cycle similar to that of UBS, the Credit combined entity and provide
Suisse
relevant information for decision-making. With an internal reporting cycle similar to that
Climate Risk team continued to issue its quarterly internal climate risk report in 2023. From 2024, Credit Suisse’s of UBS, the Credit Suisse
Climate Risk team continued to issue its quarterly internal climate risk report in 2023. From
reporting cycles and metrics will progressively align with those of UBS, in parallel with the integration of underlying 2024, Credit Suisse’s
reporting
processes cycles and metrics will progressively align with those of UBS, in parallel with the integration of underlying
and controls.
processes and controls.
› Refer to “Appendix 3 – Entity-specific disclosures for Credit Suisse AG” in the appendices to this report for a
› Refer to “Appendix
description of Credit3Suisse’s
– Entity-specific disclosures
risk reporting for Credit Suisse AG” in the appendices to this report for a
approach
description of Credit Suisse’s risk reporting approach
The development of internal and external climate risk disclosures will continue in the coming years in the context
The development
of our of and
sustainability internal and risk
climate external
road climate
map, inrisk disclosures
order will regulatory
to address continue inexpectations
the coming and
yearsprovide
in the context
leading
of our sustainability
practice in this space.and climate risk road map, in order to address regulatory expectations and provide leading
practice in this space.

Sustainability Report 2023 | Managing sustainability and climate risks 96

Sustainability Report 2023 | Managing sustainability and climate risks 96
Our investment management approach to sustainability and climate risks
Our investment management approach to sustainability and climate risks
UBS’s sustainability and climate risk framework has been applied across our existing business divisions and is being
UBS’s sustainability
progressively andto
extended climate
cover risk
the framework
former Credit hasSuisse
been applied
divisions.across our existing
The following business
sections divisions
discuss and is being
the approach to
progressively
sustainability and climate risks in the Asset Management and Global Wealth Management business divisions to
extended to cover the former Credit Suisse divisions. The following sections discuss the approach of
sustainability
UBS, and Asset and climate risks(Credit
Management in theSuisse)
Asset and
Management and Global (Credit
Wealth Management Wealth Suisse)
Management business divisions of
during 2023.
UBS, and Asset Management (Credit Suisse) and Wealth Management (Credit Suisse) during 2023.
Assessing climate-related financial risks in client portfolios
Assessing
As a globalclimate-related financial
financial institution, it isrisks
ourinresponsibility
client portfolios
to help clients navigate the challenges of the transition to a
As a global financial institution, it is our responsibility
low-carbon economy. We address this by establishing climate to help risk
clients navigateand
monitoring the management
challenges of systems
the transition
acrossto oura
low-carbon economy. We address this by establishing climate risk monitoring and management
asset management and wealth management businesses, offering innovative products and services in investment systems across our
asset management
and financing, and wealth
and providing management
transparent businesses,
reporting offering innovative products and services in investment
and disclosures.
and financing, and providing transparent reporting and disclosures.
We strive to integrate climate-related financial risk considerations into our decision-making and processes
We strive to
pertaining toservices,
integrate climate-related
strategies or products financial
offeredrisk considerations
or employed into
by third our decision-making
parties, including delegates. andIn processes
doing so,
pertaining to services,
we demonstrate strategies or to
our commitment products offered or
implementing theemployed by third parties,
recommendations of theincluding
TCFD. We delegates.
perform In doing risk
climate so,
we demonstrate our commitment to implementing the recommendations of the TCFD.
assessments on discretionary portfolios managed in Singapore (and booked in Singapore or in Hong Kong), in lineWe perform climate risk
assessments on discretionary
with the Monetary Authorityportfolios
of Singaporemanaged in Singapore
(MAS) Guidelines (and
onbooked in Singapore
Environmental Risk or in Hong Kong),
Management for inAsset
line
with the Monetary Authority of Singapore (MAS) Guidelines on Environmental Risk Management
Managers. We also disclose portfolio risk across climate scenarios in the UK, in line with TCFD recommendations. for Asset
Managers.
› Refer toWe thealso discloseDisclosures
UK Climate portfolio risk across
in the climate scenarios
“Environment” sectioninofthe
the UK, in line with
Supplement TCFD
to the UBSrecommendations.
Group
› Refer to the UK
Sustainability Climate
Report Disclosures
2023, availableinatthe “Environment” section of the Supplement to the UBS Group
ubs.com/sustainability-reporting
Sustainability Report 2023, available at ubs.com/sustainability-reporting
We work collaboratively across our industry and with our clients, ensuring they have access to best practice, robust
We work collaboratively
science-based approaches, across our industry
standardized and with ourand
methodologies clients, ensuring
quality data forthey have access
measuring to best practice,
and mitigating climaterobust
risks.
science-based approaches, standardized methodologies and quality data for measuring and mitigating climate risks.
In the following sections we outline our approach to quantifying climate risk in clients’ assets. We then outline how
In the following
climate sections iswe
risk information outlinetoour
applied ourapproach to quantifying
asset management andclimate
wealth risk in clients’ assets.
management Werespectively.
divisions, then outline how
climate risk information is applied to our asset management and wealth management divisions, respectively.
Quantifying climate risk: data and metrics
Quantifying climate risk:
In order to quantify and data and metrics
integrate climate risks into our investment processes, we utilize physical and transition
In order to quantify and integrate
climate risk data projections and models climate risksissuer
at the into level
our investment processes,including
from data providers, we utilize S&Pphysical
Trucost.andOurtransition
physical
climate risk data projections and models at the issuer level from data providers, including
risk assessment considers the potential impact of extreme climate events on an issuer’s or direct assets, with S&P Trucost. Our physical
each
risk assessment considers the potential impact of extreme climate events on an issuer’s or
physical risk score representing a sensitivity-adjusted, weighted average of risk scores linked to all associated assets direct assets, with each
physical risk score representing a sensitivity-adjusted, weighted average of risk scores linked
across different climate hazards, such as heat/cold wave, water stress, flooding, sea-level rise, hurricanes, wildfires to all associated assets
across different climate hazards, such as heat/cold wave, water stress, flooding, sea-level rise, hurricanes, wildfires
and drought.
and drought.
Transition risk arises from the process of adjustment to an environmentally sustainable economy, including changes
Transition risk arises
in public policies, from thetechnological
disruptive process of adjustment
developments to an and
environmentally sustainable
shifts in consumer economy,
and investor including changes
preferences. One of
in public policies, disruptive technological developments and shifts in consumer and
the ways we assess transition risk is using an “Earnings at risk” approach, which analyzes the unpriced carbon investor preferences. One of
cost
the ways we assess transition risk is using an “Earnings at risk” approach, which analyzes
to a company as % of its EBITDA (Earnings before interest, taxes, depreciation, and amortization). We see carbon the unpriced carbon cost
to a company
earnings at riskasas%oneof its
of EBITDA
the more (Earnings
directlybefore interest,
quantifiable and taxes, depreciation,
comparable metrics and amortization).
across We seeglobally,
industry sectors carbon
earnings at risksuited
which is more as oneto of the more
reflecting thedirectly quantifiable
reach and complexity andofcomparable metrics across industry sectors globally,
our investments.
which is more suited to reflecting the reach and complexity of our investments.
For both physical and transition risks, the projections are typically built on publicly reported company data,
For both physical
restricting coverageand transition issuers,
to corporate risks, the projections
which form the arebulk
typically
of ourbuilt on markets
public publicly portfolios.
reported company data,
Consequently,
restricting coverage to corporate issuers, which form the bulk of
exposures to sovereign or structured products, for example, are not covered at this point. our public markets portfolios. Consequently,
exposures to sovereign or structured products, for example, are not covered at this point.
Climate risk data remains an evolving area, and best-practice standards or norms have yet to be developed. This
Climate
results inrisk data remains limitations
acknowledged an evolvinginarea, data and best-practice
coverage standards
and quality, suchorasnorms
issuer have
type yetandtothebe use
developed.
of proxyThisor
results
estimation techniques. Financial models also typically project up to three years in advance, withofsignificant
in acknowledged limitations in data coverage and quality, such as issuer type and the use proxy or
estimation
deterioration techniques.
in visibility Financial
beyond one models
year.also typically
As such, project projections
long-term up to three usedyears in advance,
to generate datawith
evensignificant
for 2030
deterioration in visibility beyond
introduce higher levels of uncertainty. one year. As such, long-term projections used to generate data even for 2030
introduce higher levels of uncertainty.
We work closely with our data providers to continuously enhance the scope and quality of data available to us.
We workrisk
Climate closely
data with our data providers
has continued to improve to over
continuously enhance
the past year. We the
havescope
seen and quality coverage
expanding of data available
from ourtodata us.
Climate risk data has continued to improve over the past year. We have seen expanding
provider on sensitivity adjustments to physical risk scores, which are aimed at enhancing the quality of the estimates. coverage from our data
provider
As our dataon sensitivity
providersadjustments
continue totoimprovephysicalon risktheir
scores, which
data are aimed and
methodology at enhancing
coverage,the in quality
line withof the estimates.
industry best
As our data providers continue to improve on their data methodology
practice, these changes may be reflected in the climate risk analytics on our client portfolios. and coverage, in line with industry best
practice, these changes may be reflected in the climate risk analytics on our client portfolios.

Sustainability Report 2023 | Managing sustainability and climate risks 97

Sustainability Report 2023 | Managing sustainability and climate risks 97
Application in UBS AG Asset Management
Application
UBS AG Asset in UBS AG Asset Management
Management’s ESG (environmental, social and governance) integration approach identifies climate-
UBS
related risks and opportunitiesESG
AG Asset Management’s (environmental,
which can be applied social and governance)
in managing existing integration
investment approach
strategiesidentifies climate-
and constructing
related risks
new portfolios. and opportunities which can be applied in managing existing investment strategies and constructing
new portfolios.
The construction criteria for portfolios are applied based on the intended objectives of the strategy. Portfolios are
The construction
classified based on criteria
theirforsustainability
portfolios are applied basedincluding
characteristics, on the intended objectives
sustainability key of the strategy.indicators
performance Portfoliosand
are
classified based on their sustainability characteristics, including sustainability key performance
minimum sustainability safeguards. Exclusion criteria address elevated sustainability risks, and the scope of indicators and
minimum
portfolios tosustainability
which such safeguards.
exclusions are Exclusion
applied iscriteria
describedaddress elevated
in UBS AG Assetsustainability
Management’s risks,Exclusion
and thePolicy.
scopeThe of
portfolios to which such exclusions are applied is described in UBS AG Asset Management’s Exclusion
investment policies contained in fund documentation describe the extent to which a strategy targets particular risk Policy. The
investment
or opportunitypolicies contained
outcomes. UBSinAG fund documentation
Asset Managementdescribeincludesthe extent toofwhich
disclosure a strategymetrics
portfolio-level targetsfor
particular risk
sustainable
or opportunity outcomes. UBS AG Asset Management includes disclosure of portfolio-level metrics for
investment portfolios in fund factsheets and client reporting. It also discloses various climate-related metrics in line sustainable
investment portfolios
with the TCFD’s in fund factsheets
Supplemental Guidanceand client Managers.
for Asset reporting. It also discloses various climate-related metrics in line
with the TCFD’s Supplemental Guidance for Asset Managers.
› Refer to the “Environment” section of this report for aggregated asset class-level figures for weighted average
› Refer
carbontointensity
the “Environment”
and carbonsection of as
footprint this report
well for aggregated
as total emissions asset class-level figures for weighted average
carbon intensity and carbon footprint as well as total emissions
Asset Management’s Real Estate & Private Markets (REPM) business typically holds majority ownership in the direct
Asset Management’s
real assets in which itReal Estate
invests, & Private
making Marketsto(REPM)
it possible business
positively influencetypically holds majority
outcomes through ownership in the direct
active ownership. This
real
includes collaboration with tenants, 3rd party companies, employees, communities and other stakeholders (via,This
assets in which it invests, making it possible to positively influence outcomes through active ownership. for
includes
example,collaboration
green lease with tenants,
clauses, 3rd party
tenant companies,
satisfaction employees,
surveys, tenant communities
reach-outs) to and otherand
drive stakeholders (via, for
achieve emission
example,
reductionsgreen
and other leaseclimate
clauses,
risktenant satisfaction
mitigations. Where surveys,
we do not tenant reach-outs)
have control, to drive
we actively and achieve
engage with ownersemission
and
reductions and other climate risk mitigations. Where we do not have control, we actively
stakeholders to address climate-related risks and monitor progress accordingly. Engagement topics include physical engage with owners and
stakeholders to address climate-related risks and monitor progress
risk exposure and mitigation, transition plans, disclosures and net-zero alignment. accordingly. Engagement topics include physical
risk exposure and mitigation, transition plans, disclosures and net-zero alignment.
UBS AG Asset Management’s overall strategy for managing climate risks is to integrate risk data and insights into
UBS AG Asset Management’s
the investment management processes.overall strategy
In ourfor managing
public markets’ climate risks is to
investments, integrate
this risk an
starts with data and insights
assessment into
of ESG
the investment management processes. In our public markets’ investments, this starts
issues based on our ESG Material Issues framework. This identifies the most relevant issues per sector, making the with an assessment of ESG
issues basedtoonkey
connection ourvalue
ESG Material
drivers thatIssues
may framework.
impact theThis identifies thesis
investment the most relevant
across issues
sectors. Theper sector, making
framework reflectsthea
connection to key value drivers that may impact the
sector-based view of exposure to physical and transition climate risks. investment thesis across sectors. The framework reflects a
sector-based view of exposure to physical and transition climate risks.
In our REPM business, we consider key transition risks using our proprietary in-house ESG Dashboard. This assesses
In our REPM
directly business,
controlled real we consider
estate assets’key transition risks
environmental using our proprietary
performance against pathwaysin-house andESG Dashboard.
targets. On theThis assesses
physical risk
directly controlled real estate assets’ environmental performance against pathways and
side, for our direct investments in real estate, we use a third-party location risk intelligence tool to analyze asset- targets. On the physical risk
side, for our direct investments in real estate, we use a third-party location risk intelligence
level physical risk. We also use third-party data to inform our assessment of physical risk in our indirect real estate tool to analyze asset-
level physical These
investments. risk. We alsoidentify
tools use third-party
each asset’s datapotential
to informphysical
our assessment
risks under of physical
a varietyrisk in our indirect
of climate changereal estate
scenarios
investments.
and timelines. These tools identify each asset’s potential physical risks under a variety of climate change scenarios
and timelines.
Active ownership
Active ownership
The transition of investment portfolios will require real-economy emission reductions. We see our active ownership
The
strategy as a of
transition investment
powerful tool portfolios will require
in influencing real-economy
corporate and otheremission
stakeholderreductions.
behavior Weto seeachieve
our active ownership
real-economy
strategy
outcomes. as a powerful tool in influencing corporate and other stakeholder behavior to achieve real-economy
outcomes.
UBS AG Asset Management has had a dedicated climate engagement program in place for more than five years,
UBS AG Asset
addressing Management
climate-related hasinhad
risks a dedicated
companies climate engagement
and tracking program Itincovers
measurable progress. place high-emitting
for more thancompanies
five years,
addressing climate-related risks in companies and tracking measurable progress.
in our listed equity and corporate bond universe, taking into account a range of sectors and geographies. This It covers high-emitting companies
in our listed
includes equity and
companies fromcorporate
the oil and bond
gas, universe,
electricitytaking into utilities,
and other accountmetals a range and of mining,
sectors construction
and geographies. This
materials,
includes companies from the oil and gas, electricity and other utilities, metals and
chemicals, and automotive sectors. The program is focused on driving ambitious and credible transition strategies mining, construction materials,
chemicals, and automotive
across portfolio sectors. The
holdings, covering program
climate is focusedtargets,
governance, on driving ambitious
transition plans andandcredible transition
relevant businessstrategies
model
across portfolio holdings, covering climate governance, targets, transition plans
objectives. Since the start of our engagement program, we have increased the range of our expectations to include and relevant business model
objectives. Since the start of our engagement program, we have increased the range
more ambitious emissions-reduction target-setting, quantified disclosures on decarbonization measures, capital of our expectations to include
more ambitious
deployment in lineemissions-reduction
with a net-zero pathway target-setting, quantified
and reporting disclosures
of progress toward onstated
decarbonization
commitments. measures, capital
deployment
› Refer to intheline with a net-zero
“Supplement pathway
to Managing and reporting
sustainability andof progress
climate risks” toward
sectionstated
of thecommitments.
Supplement to the UBS
› Refer
Groupto the “Supplement
Sustainability to2023,
Report Managing sustainability
available and climate risks” section ,of
at ubs.com/sustainability-reporting forthe Supplement
more to the
information UBSour
about
Group Sustainability Report 2023, available at ubs.com/sustainability-reporting
environmental risk analysis for the Hong Kong SAR and Singapore , for more information about our
environmental risk analysis for the Hong Kong SAR and Singapore

Sustainability Report 2023 | Managing sustainability and climate risks 98

Sustainability Report 2023 | Managing sustainability and climate risks 98
Application in UBS AG Global Wealth Management
Application in UBS AG decision-making
Our overall investment Global Wealth Management
process is largely driven top-down. While corporate-level data sourced from
Our overall investment decision-making
S&P Trucost has been chosen for UBS AG process
Globalis largely
Wealthdriven top-down.
Management While corporate-level
portfolios, data sourced
given its credibility, from
complexity
S&P Trucost has been chosen for UBS AG Global Wealth Management portfolios,
and coverage, this bottom-up dataset cannot be directly integrated into UBS AG Global Wealth Management given its credibility, complexity
and coverage,
investment this bottom-up
processes without the dataset
use ofcannot be directly
significant integrated
aggregation into UBS AG Global Wealth Management
and proxies.
investment processes without the use of significant aggregation and proxies.
Considering the above, within UBS AG Global Wealth Management, climate risk analyses are not used to inform
Considering the above,
investment decisions, within
either UBSasset
at the AG Global Wealth
allocation Management,
or instrument climate
selection risk
levels atanalyses
this pointare
in not
time.used
Thistois inform
due to
investment decisions, either at the asset allocation or instrument selection levels at
investment scope, limitations of data availabilities, modeling uncertainties and implementation hurdles. this point in time. ThisHowever,
is due to
investment
we continuescope, limitations
to make progressofon data availabilities,
capacity buildingmodeling
and making uncertainties andassessment
climate risk implementation hurdles.
findings However,
available across
we
the continue
investment to value
makechain.
progress on capacity building and making climate risk assessment findings available across
the investment value chain.
Industry engagement
Industry
Most of ourengagement
discretionary portfolios comprise investment funds from third-party fund managers, including the Asset
Most of
Management our discretionary portfolios
business division. comprise
Generally, investment
Global Wealthfunds from third-party
Management acts as fund managers,
an asset including
allocator the Asset
and manager of
Management business division. Generally, Global Wealth Management acts as
these portfolios but does not control portfolio construction and management within the underlying fundan asset allocator and manager of
these portfolios but does not control portfolio construction and management
investment solutions. Consequently, as well as developing a climate risk assessment management framework forwithin the underlying fund
investment solutions.
overall portfolios basedConsequently,
on underlyingas well as developing
investment holdings, we a climate
also aimrisk
to assessment
understand themanagement
climate riskframework
management for
overall portfolios based on underlying investment
practices established by the managers of the underlying funds.holdings, we also aim to understand the climate risk management
practices established by the managers of the underlying funds.
To that end, we regularly ask our investment fund partners to provide information on their approach to climate risk
To thatThis
issues. end,includes
we regularly ask our
the extent toinvestment fund partners to providemanagement
which environmental-/climate-risk information on their approach
processes have been to climate
developed risk
issues. This includes the extent to which environmental-/climate-risk management processes
and implemented within their businesses with relevance to frameworks such as the TCFD and the MAS Guidelines have been developed
and implemented within
on Environmental their businesses
Risk Management with relevance
for Asset Managers,towhere frameworks
these aresuch as the by
required TCFD and the
relevant MAS Guidelines
regulators. We are
on Environmental Risk Management for Asset Managers, where these are required
committed to ongoing regular communications with our fund partners on the development of environmental-/ by relevant regulators. We are
committed to ongoing regular communications with
climate-risk management processes, as they apply to their strategies. our fund partners on the development of environmental-/
climate-risk
› Refer tomanagement
the Supplement processes, as they
to this report, apply to
available at their strategies.
available ubs.com/sustainability-reporting, for more
› Refer to the about
information Supplement to thisrisk
our climate report, available
assessment as at available
applied ubs.com/sustainability-reporting
to discretionary portfolios managed ,infor more
Singapore
information about our climate risk assessment as applied to discretionary portfolios managed in Singapore

Sustainability Report 2023 | Managing sustainability and climate risks 99

Sustainability Report 2023 | Managing sustainability and climate risks 99
Appendix
Appendix 1 – Governance
Combating financial crime

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. UBS takes comprehensive measures to prevent
and detect non-compliance with laws and regulations and does 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.
UBS does not engage in business activities that pose unacceptably high levels of money laundering, fraud, sanctions
or corruption risk. Additionally, UBS does 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, UBS has
appropriate policies, procedures, controls and processes in place to manage the relevant risks.
UBS annually assesses the money laundering, fraud, sanctions and bribery and corruption risks associated with all
of its business operations against its control framework and takes 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 financial
services sector standards for the prevention of financial crimes such as money laundering, fraud, corruption and
terrorist financing, as well as developing 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 out-reach
meetings focused on financial crime topics, and delivers an annual academy to support the development of junior
Financial Crime Prevention (FCP) officers. It also works on guidance papers in related key areas of financial crime.
UBS is actively involved with this group. For example, during 2022 we co-chaired the Wolfsberg working group to
update and re-issue its Anti-Bribery & Corruption Programme guidance.
Together with the other members of the Wolfsberg Group, we work with the Financial Action Task Force (the
FATF), an intergovernmental body that helps develop national and international policies on preventing money
laundering and terrorist financing through consultation with the private sector.
In November 2020, UBS joined the World Economic Forum’s Partnership Against Corruption Initiative (the PACI).
The PACI undertakes initiatives to address industry, country, regional, and global issues linked to anti-corruption
and compliance. We contributed to the PACI’s Gatekeepers in the Fight Against Illicit Financial Flows paper and
assessed its own framework as being compliant with these standards.
We are a member of a number of 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 Taskforce operations group in the UK, which has worked on a number of human trafficking and modern
slavery cases.

A risk-based approach to combating financial crime

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 anti-money-
laundering (AML) and KYC policy, enhanced due diligence is performed.

Sustainability Report 2023 | Appendix 1 | Governance 100

UBS does not establish or maintain relationships with parties when the KYC information cannot be sufficiently
established or where UBS has reason to believe the party has or intends to use UBS products or services for illicit
activities. UBS does not open accounts for relationships that do not meet our standards or that pose unacceptable
financial crime or reputational risk for the bank.
After a client onboarding is completed, ongoing due diligence and risk screening is performed during the lifecycle
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.
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), as well
as 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
lifecycle and this may result in investigation, suspicious activity report filing and/or client exit, as appropriate. We
adhere to the global FATF standards with respect 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 UBS Code of Conduct and Ethics (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.

We have systems in place and hold ourselves accountable for detecting, stopping and
reporting money laundering matters, including terrorist financing.
For example, we do not tolerate any form of corruption or bribery, including facilitating payments, nor do we offer
or accept improper gifts or payments.
Additionally, the Code requires that UBS employees do not help or advise its 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.
In 2023, 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. New joiners
must receive training within 30 days of joining UBS. All staff are required to complete the Global Financial Crime
Prevention Refresher module on an annual Basis which includes an assessment. The frequency for each training
course is specified by the course owner (one-time, annual, bi-annual). We regularly update web-based training
modules to address compliance issues, including financial crime standards, and to incorporate learning from both
internal and external events and geopolitical developments. In addition, employees in specific areas receive targeted
training on specific financial crime risks associated with the business lines or activities they are involved with as
needed. In 2023, Credit Suisse managed their own mandatory AML training, however, all Credit Suisse staff will
be required to complete our mandatory Computer Based Training beginning in 2024.
› Refer to the Code of Conduct and Ethics of UBS, available at ubs.com/code

Sustainability Report 2023 | Appendix 1 | Governance 101

Protecting data

Data is of enormous value to our firm. When treated as a corporate asset, it enables our business to run smoothly.
It can also help us to grow and prosper, by giving us the information we need to capture new business or react
quickly to new trends. As we continue to invest in our digital solutions, we are similarly committed to:
– developing a robust command and control framework to manage and protect our offering and the petabytes of
data that are inherently generated by it;
– being stewards of data on behalf of our clients and employees; and
– requesting our third parties adopt equivalent practices and meet our expectations.

It is our responsibility to protect data disclosed to us in an increasingly complex and evolving

environment. We have comprehensive measures (relevant controls, processes and policies)
in place for the protection of personal data.
We have also introduced organizational and technical security measures, underpinned by an operational risk and
control framework, to safeguard personal data in accordance with applicable laws and regulations. Access to data
is protected through control mechanisms following the need-to-know principle and ensuring revocation when no
longer required. Where applicable and required, de-identification solutions are used for some specific use cases of
sensitive client data.
Despite the complexities involved with the integration of Credit Suisse, we continue to focus on the delivery of our
services. This includes operating at the highest possible standards to protect our information assets against threats
while enabling the secure development and deployment of innovative digital solutions.
› Refer to ubs.com/global/en/our-firm/cybersafe/cyber-security for more information on how UBS safeguards
banking data, commercial information and financial assets

Governance
Our Board of Directors (the BoD) and the Group Executive Board (the GEB) recognize that cyber- and information-
security (CIS) capabilities are critical in protecting the firm and fostering an appropriate risk management culture.
The BoD Risk Committee and the GEB oversee the CIS program through regular reviews and reporting and are part
of the escalation chain for major and critical cyber incidents. Additionally, cyber-specific systems and processes are
subject to continual review and updates by our internal control teams. The BoD also oversees the firm’s activities
pertaining to Artificial Intelligence (AI).
The Group Data Management Office, part of the Group Operations and Technology Office, works with partners
across the firm to ensure robust governance over the collection, propagation and quality of the firm’s data.
Additionally, the Group Data Protection Office, part of Group Compliance, Regulatory & Governance, ensures that
the firm processes personal data and responds to data subject rights exercised by individuals (including clients and
employees) in line with applicable data privacy laws and regulations.

Policies and procedures (including training)

As a firm, UBS operates to the highest possible standard. Our principles and policies guide how we use data and
information, as well as how we develop and deploy technological solutions. We maintain policies and procedures
to ensure everyone at UBS is aware of threats and the importance of CIS. A CIS end user and line manager policy
is available internally to all UBS employees and consultants.
In recognition of the pace of digital change globally, our Code of Conduct and Ethics (the Code) includes a section
on the lawful and ethical use of data. The primary focus of this section is preparing employees for greater reliance
on big data, data models and artificial intelligence.
In 2023, we updated our UBS-internal Group Data Ethics Policy, which sets out the group-wide data ethics
requirements. While the principles set out in the policy apply to the processing or use of any client-identifying data
and/or personal data, specific data ethics requirements apply for the use of (i) AI including machine learning and/or
(ii) data analytics including both models and non-models (jointly referred to as Processing Activities). They must be
considered during the design, development and deployment of new products, processes, or services and must
consider both input and output data.

Sustainability Report 2023 | Appendix 1 | Governance 102

The requirements must be assessed, and Processing Activities approved as part of the central data ethics review
process prior to commencing the Processing Activities. Data ethics requirements encompass the following: human
agency and oversight; technical robustness and safety; data privacy; explainability; diversity, non-discrimination and
fairness; social and environmental wellbeing; accountability.
We run a comprehensive, Group-wide education and awareness program, including addressing risks related to CIS.
The program features mandatory computer-based training modules (recurring, and requiring exam completion),
newsletters, and global and targeted awareness campaigns to all staff who have access to UBS systems. Additional
educational campaigns, covering subjects such as phishing, malware infections, social engineering, tailgating, and
data classification and leakage, are deployed several times per year.
Additionally, we provide training specifically tailored for certain staff. Employees are also required to review policies
and affirm compliance in our web-based Affirmation Online portal on an annual basis. All UBS employees can easily
access UBS’s information security portal to learn about information security threats. Selected management
employees are sent regular updates regarding cybersecurity developments and trends.
We also maintain a set of requirements for our third parties that stipulate our expectations and ensure these are
formally acknowledged through a dedicated contractual annex.

Handling data
Our data protection policy framework covers the standards we commit to when processing personal data. This
includes that data is processed only for specific and explicit purposes and is adequate, relevant and not excessive
(data minimization). Other key principles include 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 data use and storage policies to clients and seek consent for data use as required by
local regulations. In these communications we are clear what this consent means, and which use cases do not
require consent, for example certain legal obligations. We provide reasonable options for clients to be able to
revoke this consent.

Dealing with incidents

Our Code sets out the principles and behaviors that define our ethical practices and the way we do business. Any
violation, whether it is of our Code, UBS policies or external laws, rules or regulations, may result in disciplinary
action, up to and including dismissal. This includes information security incidents. Also, employees are, as part of
their year-end performance rating, evaluated on their integrity. This includes doing the right thing, self-declaring
incidents and issues, adhering to policies, challenging the status quo and raising their hand when things are not
right, including potential security threats, and collaborating across teams, departments and divisions.
We aim to make the information security incident escalation process as simple as possible. For example, phishing
emails can easily be reported by means of a dedicated button integrated within Outlook and available on all
devices.
Our Group-wide incident-handling process enables any UBS person to report incidents and data breaches. Data-
breach-prevention processes, such as blocking of communication and proactive remediation of misplaced data in
unprotected areas, are in place. Additionally, we encourage employees to report any issues and incidents as per
the incident-handling process, or to their line managers, and to follow up to ensure the matter is addressed. Any
compliance incidents can also be escalated through the whistleblowing process.
We also extend these processes to cover adverse information security events that take place at third parties but
have relevance to UBS’s information.

Sustainability Report 2023 | Appendix 1 | Governance 103

Appendix 2 – Environment
Our transition plan

Our transition plan supports our current decarbonization targets and ambition to achieve net-zero greenhouse gas
(GHG) emissions across our scope 1 and 2, and specified scope 3, activities. The structure of our plan follows the
recommendations of the Glasgow Financial Alliance for Net Zero (GFANZ) outlined in the “Financial Institutions
Net-zero Transition Plans” guidelines. GFANZ published these guidelines, to which UBS contributed during their
development, at the 27th session of the Conference of the Parties of the United Nations Framework Convention on
Climate Change (the UNFCCC) (COP 27).
UBS’s contribution to the development of these guidelines forms part of the Group’s industry engagement in the
financial services sector to determine how best to support and finance clients’ transition to a low-carbon economy.
Contributing to such frameworks, in turn forms an important basis for developing our own approach to transition
finance.
We consider the GFANZ guidelines to be comprehensive and relevant for the financial sector but continue to
monitor other emerging standards that are compatible and have the potential to enhance our continued transition
plan development. Our transition plan touches on numerous aspects within this Sustainability Report, which are
referenced in the table below.
› Refer to gfanzero.com/our-work/financial-institution-net-zero-transition-plans for GFANZ’s recommendations on
transition plans

# Theme Principles and key activities engaged in by UBS References for more information

Foundation

1 Objectives – It is our ambition to support clients through the world’s transition to – Refer to the “Strategy” section, “Our aspirations
and a low-carbon economy and embed considerations of climate change and progress” sub-section of this report for a
priorities risks and opportunities across the bank for the benefit of our description of our targets and progress on
stakeholders, now and in the future. financing, investing and own operations.
– Helping our clients navigate the challenges of an orderly transition to – Refer to the “Environment” section, “Our climate
a low-carbon economy and build climate-resilient business models, as roadmap” sub-section of this report for an
well as mobilizing private and institutional capital toward this overview of what we are aiming for to support
transition, is at the core of this ambition and our approach to climate. the transition to a low-carbon economy.
– We have updated our sustainability strategy and approach to climate – Refer to the “Our approach to climate” sub-
to better support our own transition as well as the transition of our section of the Supplement to the UBS Group
clients, and we continue to refine and enhance our transition plan in Sustainability Report 2023 for more information
line with evolving client needs and industry guidance to ensure it about our approach and key objectives to
remains appropriate for our business activities and aligned to external support our climate-related ambitions.
market practice and standards. – Refer to the “Environment” section, “Supporting
– By 2050, our ambition is to achieve net-zero greenhouse gas (GHG) our clients’ low-carbon transition” sub-section of
emissions across our scope 1 and 2, and specified scope 3 activities. this report for an overview of how we support
– We aspire to address our financed emissions by aligning specified our clients’ transition.
sectors to decarbonization pathways. In line with this, we aim to – Refer to the “Environment” section, “Supporting
reduce the emission intensity of our loan book across sectors that our financing clients’ low-carbon transition” –
account for a sizable share of our credit portfolio and financed “Carbon reduction and removal” sub-section of
emissions and have set 2030 lending sector decarbonization targets this report for more details on our approach to
for the following sectors: Swiss residential real estate, Swiss carbon markets and carbon-removal solutions.
commercial real estate, fossil fuels (oil, gas and coal), power – Refer to the “Overview of climate-related targets
generation, iron and steel and cement (for shipping we currently and actions” section in “Appendix 2 –
disclose our Credit Suisse AG in-scope shipping portfolio climate Environment” in the appendices to this report for
alignment to the Poseidon Principles decarbonization index). an overview of our targets and actions that we
– We provide our financing and investing clients with the choices they strive to implement in the short-, medium- and
need to meet their sustainability and impact objectives, including long-term.
climate impact, where that is their priority and in line with our – Refer to the “Managing sustainability and climate
fiduciary duties. risks” section of this report and the “Supporting
– Our transition plan for financing activities prioritizes emissions our approach to climate – our climate-related
reductions in line with science-based climate targets and credible materiality assessment” sub-section of the
trajectories to achieve these targets. In addition, we anticipate that Supplement to the UBS Group Sustainability
the deployment of carbon-removal solutions will be needed to Report 2023 for an overview of our reviews of
counterbalance hard-to-abate emissions and supplement the risks, opportunities in the climate materiality
reduction strategies of some of our clients. As best practice guidance, assessment and impacts expected from
regulation, methodologies and technologies develop, our approach implementation.
to decarbonization, including offsets, will continue to evolve.
– As we work toward our targets and further develop our transition
strategies, we aim to consider a just transition to a low-carbon
economy, one that is as fair and inclusive as possible.
– We continue to integrate sustainability and climate risk considerations
into our firm’s various traditional financial and non-financial risk
management frameworks.

Sustainability Report 2023 | Appendix 2 | Environment 104

 Implementation strategy

2 Products – One of the four key objectives of our sustainable finance product and – Refer to the “Supporting opportunities” section
and services service offering is to support our clients in their transition to a low- of this report for more information about our
carbon economy, and we strive to provide them with the choices they sustainable finance ambitions, our approach to
need to meet their specific sustainability objectives. sustainable finance and our sustainable finance
– We are developing innovative advisory, lending, basic banking and products and services offerings.
transition financing solutions, and are offering our clients access to – Refer to the “Environment” section, “Supporting
various sustainable investment (SI) solutions. our clients’ low-carbon transition” sub-section of
– Our climate-related client offering provides investors with solutions this report for more information about how we
that contribute to a lower-carbon economy while satisfying various are embedding climate considerations into
risk and return objectives. products and services for financing and investing.
– Our Investment Bank offers our clients global advice and access to – Refer to “Supporting our approach to climate –
the world’s primary, secondary and private capital markets through our climate-related materiality assessment” sub-
an extensive array of sustainability- and climate-focused services, section of the Supplement to the UBS Group
products, research and events. Sustainability Report 2023 which speaks to how
– By offering research and thematic insights, as well as data and we think about future climate-related
analytics services - combined with targeted advice – we aim to help opportunities.
clients better understand and mitigate risks and identify new
opportunities. Further, we provide support in the form of tools,
platforms and education.
– We continue to develop and refine our solutions and approaches on
an ongoing basis and strive to support our clients to orient their
business efforts toward the objectives of the Paris Agreement. We
aim to do this by further strengthening our operating model and
increasing our efforts in the field of transition and green finance.

3 Activities – To deliver our transition plan and operationalize our approach to – Refer to the “Environment” section, “Supporting
and climate, it is important to embed sustainability and climate our financing clients’ transition to a low-carbon
decision- considerations into our operating model, leading to regular economy” – “Sustainable lending operating
making adjustments of evaluation and decision-making frameworks, model” sub-section of this report for more
governance structures, control and monitoring processes and information about how we operationalize our
underlying systems. approach to climate and the “Our lending sector
– For example, following the integration of Credit Suisse, UBS decarbonization targets” sub-section for more
reassessed the lending emissions and targets for sectors with a high- information about our emissions and targets for
carbon impact for the combined organization. To operationalize our specified sectors.
target approach, we are reviewing whether our planning and – Refer to the “Managing sustainability and climate
governance processes, risk appetite, sector strategies and so on are risks” section of this report for a description of
still appropriate. In parallel, we are assessing required enhancements our sustainability and climate policy risk
to our loan origination, credit granting, monitoring and reporting framework.
processes. – Refer to the “Supporting opportunities” section
– In addition, Group Risk Control manages our sustainability and of this report for an overview of our sustainable
climate risk program to further integrate sustainability and climate finance products and services offerings.
risk into our various traditional financial and non-financial risk
management frameworks and related processes. This ensures that
sustainability and climate risks are identified, measured, monitored,
managed, reported and escalated in a timely manner. Such
integration covers processes including client onboarding, transaction
due diligence, product development and investment decision
processes, own operations, supply chain management, and portfolio
reviews.
– We have a systematic approach in place aimed at better
understanding UBS’s future opportunities around climate. On an
annual basis, and in line with the TCFD’s recommendations, we are
assessing potentially relevant climate-related opportunities for UBS,
encompassing commercial products and services, social finance,
resource efficiency and energy consumption, operational resilience
and climate-related funding.

4 Policies and – Our sustainability and climate risk policy framework: – Refer to the “Sustainability and climate risk policy
conditions – applies Group-wide to relevant activities, including client and supplier framework” sub-section of the Supplement to
relationships; the UBS Group Sustainability Report 2023 for
– is integrated into management practices and control principles and more information about how we are setting our
overseen by senior management; and standards including “Controversial activities –
– supports the transition toward a low-carbon future. where UBS will not do business” and “Areas of
– Our sustainability and climate risk policy framework will continue to concern – where UBS will only do business under
evolve to address regulatory guidance and market practices. stringent criteria.”
– We conduct reviews of our voting, stewardship and exclusion policies – Refer to our Asset Management Sustainability
to reflect our latest approaches in UBS AG Asset Management. Exclusion policy for more information about AM’s
exclusion approaches where we exclude
individual companies or industries from a
portfolio, either because their activities do not
meet certain ESG criteria, and/or they do not
align with the client’s values and/or UBS’s.

Sustainability Report 2023 | Appendix 2 | Environment 105

 Engagement strategy

5 Clients and – Understanding the needs and expectations of our clients and – Refer to the “Environment” section, “Supporting
portfolio investors enables us to best serve their interests and to create value our clients’ low-carbon transition” – “Supporting
companies for them. Through engagement and collaboration, we help our our financing clients’ low-carbon transition” sub-
clients and portfolio companies access best practice, robust science- section of this report for more information about
based approaches, standardized methodologies and quality data that how we are engaging with our corporate clients
enable them to better measure and mitigate climate-related risks and and “Supporting our investing clients’ low-
act on climate-related opportunities. carbon transition” for more information about
– For our lending activities, we have assessed where our corporate how we are engaging with our investees.
clients currently stand on their journey toward a low-carbon economy – Refer to the “Supporting opportunities” section,
and climate-resilient business models. By establishing a view on their “Asset Management” sub-section of this report
current decarbonization ambitions and activities, we aim to work for more information about how we approach
alongside them to support their transition efforts. This can include active ownership and our climate engagement
the disclosure of current emissions, the setting of future program.
decarbonization targets in line with Paris-aligned pathways and the – Refer to the Asset Management Stewardship
development of credible transition plans. Website and our Global Stewardship Policy for
– We recognize that the transition of investment portfolios requires more information about our active approach to
real-economy emission reductions, and see our active ownership stewardship as a crucial part of any sustainable
strategy as a powerful tool in influencing corporate behavior to investing strategy across asset classes through
achieve real-economy outcomes. For example, our UBS AG Asset engagement, proxy voting and advocacy,
Management business has been running a dedicated climate enabling us to work with firms to influence
engagement program for more than five years to address climate- behaviors, drive changes and achieve better
related risks with measurable progress tracked. We have also aligned outcomes.
our voting policy with our climate engagement efforts and objectives.
UBS AG Asset Management is using evidence-based metrics to assess
transition plans and set engagement objectives with a focus on
engagement outcomes. In situations where an engagement has not
achieved set objectives, escalation steps are taken.

6 Industry – Partnerships within the financial services sector are a critical part of – Refer to the “Supporting our strategy through
our sustainability strategy and approach to climate, underpinning our stakeholder engagement” sub-section of the
efforts to progress toward our stated ambitions. Supplement to the UBS Group Sustainability
– We actively engage in regular discussions relating to corporate Report 2023 for more information about our
responsibility, sustainability and climate with peers, and more widely approach to engaging with our clients, investors,
through trade bodies and associations. Sharing experiences and peers, governments and regulators, political
assessments of corporate responsibility and sustainability issues helps parties, communities and further stakeholders.
us to compare and improve our strategy, approach and tools and – Refer to the “Helping to achieve our strategy by
processes. working with key climate- and nature-related
– Through proactive engagement we aim to: (i) as appropriate and in organizations”, “Supporting our strategic goals –
line with local rules and regulations, exchange transition expertise our engagement in partnerships” and “Our
and collectively work on finding solutions to common challenges; and contributions to the advancement of
(ii) represent the financial sector’s views cohesively to external sustainability and culture” sub-sections of the
stakeholders, such as clients and governments. Supplement to the UBS Group Sustainability
– At the end of 2023, we were engaged in a variety of sustainability- Report 2023 for an overview of our partnerships.
and climate-related memberships and commitments, either at Group
level or the level of the business divisions or Group Functions.
– For example, UBS is a founding member or current signatory of
groups such as the Task Force on Climate-related Financial
Disclosures (the TCFD), the Net-Zero Banking Alliance (the NZBA), the
Net Zero Asset Managers (the NZAM) initiative, the Glasgow Financial
Alliance for Net Zero (GFANZ) and the Partnership for Carbon
Accounting Financials (PCAF). Members of UBS senior management
contribute to many of the working groups within these bodies and
our Group CEO joined the GFANZ Principals Group in 2023.
– We have thorough processes in place for renewing existing
memberships and for vetting new ones.

Sustainability Report 2023 | Appendix 2 | Environment 106

 7 Government – We actively participate in political discussions to share our expertise
and public on proposed regulatory and supervisory changes (e.g. via the
sector International Institute of Finance (IIF), the Association for Financial
Markets in Europe (AFME) and the Swiss Bankers Association (SBA)).
Sustainability and sustainable finance continue to remain key focus
topics in our interactions with our financial regulators and
supervisors.
– We also engage in political initiatives and discussions relating to
corporate responsibility, sustainability and climate, in line with our
approach to climate and decarbonization planning. We supported the
Climate Protection and Innovation Act, proposed by the Swiss Federal
Council and accepted by the Swiss population in a 2023 referendum,
to enshrine the Swiss net zero commitment into law and establish
pathways for transition in key sectors of the Swiss economy.
– Regarding climate, our engagement aims to share expertise on an
orderly transition that is aligned with the Paris Agreement and we
welcome regulatory requirements that would harmonize reporting
standards to create transparency and comparability across companies.
Thus, UBS supported the work of the International Sustainability
Standards Board to establish a global baseline for sustainability and
climate reporting in 2023.
– UBS was also part of the working group that further developed the
Swiss Climate Scores in 2023 as a key instrument to further increase
transparency on the climate alignment of financial products. During
2023 we published the first set of Swiss Climate Scores for 136 of
our Swiss investment funds.
– On a regional basis, we engage with policy makers in the EU, UK,
Americas and key Asia Pacific jurisdictions.
– We maintain a regular dialogue with politicians globally and strive to
establish long-term relationships with political representatives.

Metrics and targets

8 Metrics and – It is our ambition to align our own operations and business activities – Refer to the “Strategy” section, “Our aspirations
targets with the objectives of the Paris Agreement. and progress” sub-section of this report for a
– To support this ambition, we have established a suite of metrics and description of our targets and progress for
targets across financing, investing and own operations to drive financing, investing and own operations.
execution of our transition plan and monitor progress of results. – Refer to the “Environment” section, “Our climate
– For example, we measure our financed emissions and emissions roadmap” sub-section of this report for an
intensity for most material carbon-intensive sectors, have established overview of what we are aiming for to support
2030 lending sector decarbonization targets and are continuously the transition to a low-carbon economy.
tracking our progress toward these targets. – Refer to the “Environment” section, “Supporting
– We also conducted a preliminary analysis of the facilitated emissions our clients’ low-carbon transition” sub-section of
from our capital markets activities for select carbon-intensive sectors. this report and “Environment” section of the
– To underpin our targets, we have defined various actions that we Supplement to the UBS Group Sustainability
strive to implement in the near-, medium- and long-term. Report 2023 for more information about
– UBS has a strategic multi-year and Group-wide ESG data and methodologies, metrics and targets for lending
technology strategy in place and we are leveraging best-in-class and investing and to the "Basis of Reporting”
solutions to further accelerate our strategic ESG ambitions. sub-section of the Supplement to the UBS Group
– Our Group ESG (data) architecture supports our business users’ ESG Sustainability Report 2023 for capital markets.
needs, and we continue to enhance data acquisition, analytics – Refer to the “Environment” section “Reducing
capabilities and systems to monitor climate-related metrics and our environmental impact” sub-section of this
enhance associated climate disclosures. report for a description of how we will manage
any residual scope 1 and 2 emissions that cannot
be mitigated through reducing at source.
– Refer to the “Environment” section, “Monitoring
the environmental impact of our supply chain”
sub-section of this report and the “Social”
section, “Managing our supply chain
responsibly” sub-section of this report for our
actions pertaining to our supply chain.

Sustainability Report 2023 | Appendix 2 | Environment 107

 Governance

9 Roles, – The UBS Group Sustainability and Impact (GSI) framework provides – Refer to the “Governance” section, “Our
responsibili- an overview of the governance and key Group-wide policies, sustainability governance” sub-section of this
ties and guidelines, and key topics applying to sustainability and impact at report for a description of how UBS governs its
remunerat- UBS, including climate. sustainability strategy and approach to climate.
ion – Our approach to climate and related activities is overseen at the – Refer to “Appendix 4 – Other supplemental
highest level of UBS Group. The Board of Directors’ Corporate information“ in the appendices to this report for
Culture and Responsibility Committee (CCRC) is the body primarily the independent assurance report by Ernst &
responsible for corporate culture, corporate responsibility and Young.
sustainability including climate. It oversees our firm-wide sustainability – Refer to the “Compensation for GEB members”
and impact strategy and activities and approves related objectives. section, “GEB performance assessments” sub-
– The responsibility for setting the firm-wide sustainability and impact section of the UBS Group Annual Report 2023
strategy and developing associated objectives, in agreement with for more information about the GEB
fellow GEB members, has been delegated to the GEB Lead for performance measurement process.
Sustainability and Impact by the Group Chief Executive Officer (the – Refer to the “Compensation philosophy and
Group CEO). Progress against strategy and the associated objectives governance” section, “Environmental, Social and
are reviewed at least once a year by the GEB and the CCRC. Governance considerations” sub-section of the
– The Group CEO and GEB performance scorecards include UBS Group Annual Report 2023 for more
sustainability objectives, comprising climate-related goals, and their information about how ESG is included in the
progress is measured via robust quantitative metrics and qualitative compensation process.
criteria. Sustainability objectives are individually assessed for each GEB
member, and consequently directly impact their performance
assessments and compensation decisions.
– Our management of sustainability and climate risk (SCR) is steered at
the GEB level. The Sustainability and Climate Task Force (the SCTF) is
the cross-divisional and cross-functional authority for sustainability
and climate governance, as well as the Group’s sustainability and
climate governance body.
– We have dedicated teams and individuals assigned to ensure an
effective delivery of our transition plan. The net-zero workstreams
within the Group Sustainability and Climate Initiative coordinate the
implementation of our net-zero ambitions, with a specific focus on
addressing emissions related to our financing activities and own
operations and in the context of clients’ investments focuses on
managing specified assets in line with net-zero.
– In 2023, Ernst & Young has provided independent assurance on
certain sustainability metrics and information.
– We are continuously improving the governance, execution and
control of the processes in place to support our decarbonization and
sustainability efforts.

10 Skills and – To support the development and implementation of our transition – Refer to the “Supporting our approach to
culture plan, we implemented the Group Sustainability and Climate Initiative climate: key enablers” sub-section of the
to ensure alignment therewith and embed the plan into our culture Supplement to the UBS Group Sustainability
and practices. Report 2023 for more information about training
– Our initiative is underpinned by current and future resource provided to employees.
requirements and specified roles and responsibilities, and we are – Refer to the “Managing sustainability and climate
providing support to individuals so that they have sufficient skills and risks” section, “Risk management and control”
knowledge to perform their roles. sub-section of this report for more information
– Helping our workforce understand why sustainability and sustainable about training provided to employees with
finance is a strategic priority, for both the Group and our regard to climate risk.
stakeholders, is an important part of ensuring we meet our – Refer to the “Sustainability-related training and
sustainability and climate ambitions. raising awareness” sub-section of the
– At the end of 2022, we made a Foundational Sustainability Training Supplement to the UBS Group Sustainability
Program available to all staff at UBS. This training complements the Report 2023 for more information about how we
specialist sustainability training delivered by the business divisions to engage in education and awareness raising for
targeted cohorts, such as client advisors and risk specialists. staff, clients and local communities, regarding
– In 2023, the number of headcount instances of specialized training corporate responsibility and sustainability topics
totaled 54,364 , while headcount instances of awareness training on and issues.
sustainability and climate totaled 177,585. For example, in 2023 the
SCR team provided training and education sessions focused on
sustainability and climate risks as well as emerging risks, such as
greenwashing risk. These sessions were delivered to relevant
colleagues.
– 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 strive to continue developing and
prioritizing the roll-out of climate- and net-zero-specific training for
employees and the Board of Directors.
Through regular, Group-wide Town Halls, hosted by the GEB Lead for
Sustainability and Impact, the Chief Sustainability Officer and the Head of
Social Impact, staff are provided with updates on our net zero strategy and
progress. In addition, our key ambitions and progress against those
ambitions are published on our external website, ubs.com.

Sustainability Report 2023 | Appendix 2 | Environment 108

Overview of climate-related targets and actions

As part of our transition plan, which outlines principles supporting our ambition to achieve net-zero greenhouse
gas (GHG) emissions across our scope 1, scope 2 and specified scope 3 activities, we have set targets in financing,
investing and own operations. To underpin these targets, we have defined various actions that we strive to
implement in the short-, medium- and long-term. In line with our continued transition plan development, we will
continue to define additional actions and refine current plans to further drive progress toward our targets.

Short term Medium term Long term

Area Planned actions, targets and ambitions

Overarching Transition plan: 2050
– Continue to refine and enhance our transition plan in line with evolving client needs and industry guidance – ambitions:
outlining how we aim to achieve net-zero GHG emissions across our scope 1 and 2, and specified scope 3, activities – Net-zero
while supporting our clients through their own transitions. GHG
emissions
across our
scope 1
and 2, and
specified
scope 3,
activities.
Financing Targets: By 2030: – Continue to reduce emissions
– Aim to develop additional targets – Reduce emissions intensity intensity / financed emissions for
for remaining material carbon- associated with UBS in-scope in-scope sectors and enhance
intensive sectors in line with NZBA lending from 2021 levels for Swiss approach in line with our
commitment and as data and residential real estate by 45%; transition plan and evolving
applicable methodologies become Swiss commercial real estate by market practice and standards.
available. 48%; power generation by 60%; – Supplement emissions reductions
Frameworks and tools: iron and steel by 27%; cement by with carbon removals to
24%.1 counterbalance hard-to-abate
– Incorporate criteria into pre-deal
– Reduce absolute financed residual emissions in-line with net-
assessments to understand climate
emissions associated with UBS in- zero guidelines.
impacts and identify associated
risks and opportunities. scope lending from 2021 levels for
– Develop transition framework to fossil fuels (oil, gas and coal) by
understand where corporate 70%.1
clients are on their lower-carbon – Continue disclosing in-scope ship
journey and inform appropriate finance portfolios according to
actions to support. Poseidon Principles trajectory with
Policies: the aim of aligning.2
– Continue to enhance and develop
standards aimed at supporting
mitigation and de-risking of the
Group’s risk profile, aligned to
climate objectives.
Engagement:
– Formalize approach to client
engagement to support their
transition efforts.
Framework and tools:
– Continue to embed sustainability and climate considerations into sustainable lending operating model.
Products and services:
– Continue to build our offering of sustainability-focused analysis, advisory and on-balance sheet (e.g., green or
sustainable loans and mortgages) or off-balance sheet (such as access to debt and equity capital markets) financing
solutions.
Investing Frameworks and tools: By 2030: – Continue to align our approach
– Conduct climate stress testing for – Aiming, by 2030, to align 20% of and aim to increase the scope of
current in-scope portfolios, UBS AG Asset Management’s total AuM that are subject to net-zero
– Measure and track in-scope assets under management (AuM) targets, as methodologies and
portfolio alignment. with net zero. This Pre-acquisition market practice and standards
UBS aspiration will be reassessed in evolve over time.3
2024.
Policies:
– Conduct annual review of voting and stewardship policies to continue to evolve our approach.
Engagement:
– Continue to engage with clients, investees and third-party fund managers.
Products and services:
– Continue to build our investment solutions for private and institutional investors to help them navigate climate-
related risks and opportunities.

Sustainability Report 2023 | Appendix 2 | Environment 109

 Operations Energy consumption and By 2025: By 2035: – Continue to drive
sustainable buildings: – Minimize our scope 1 – Engage with our GHG direct (scope 1) and
– Continue to reduce operational and 2 emissions key vendors, for indirect (scope 2)
energy consumption and through energy 100% of them to emissions reductions
optimize corporate real estate efficiencies and by declare their through energy
portfolio. switching to more emissions and set net- efficiencies and by
– Continue to invest in more sustainable energy zero-aligned goals by switching to more
sustainable buildings and sources. After which, 2026, and reduce sustainable energy
upgrading existing buildings. procure credible their scope 1 and 2 sources, thus reducing
– Continue to increase share of carbon removal credits emissions in line with our reliance on carbon
renewable energy. to neutralize any net-zero trajectories removal credits over
– Source 100% renewable residual emissions by 2035.5 time.
electricity according to RE100. down to zero by – Continue to monitor
Waste: 2025.4 key vendors and
– Reduce our own expand ambition to
– Continue to reduce overall
energy consumption reduce emissions in
waste and improve recycling
by 15% from 2019 line with net-zero
rates.
levels. trajectories to
Travel:
– Use 100% paper from additional vendors.
– Update travel policy and
sustainable sources.
continue to reduce air travel-
– Offset historical
related CO2 emissions.
emissions from scopes
1 and 2 (own
operations) back to
2000 (UBS AG
consolidated).
Frameworks and tools:
– All environmental activities for UBS Group, including the
entire scope of in-house operations are subject to our
environmental management system (EMS) run in
accordance with ISO 14001.
– Quantify and manage relevant scope 3 emissions from
categories 1 to 14 to inform appropriate actions.
Engage with key vendors:
– Capture climate information, monitor progress on
reductions and incorporate ESG criteria into vendor
selection.
Framework and tools:
– Continue to disclose the environmental impact from joint operations, with clear commitments to sustainability and
the reduction of environmental impact.
Travel:
– Strengthen reporting incl. comprehensive insights into travel-related emissions to measure and manage our travel
footprint, incentivize employees to opt for eco-friendly transportation.
Enablers Governance and accountabilities:
– Continue to ensure suitable governance processes and accountability for decarbonization targets.
Engagement and partnerships:
– Continue to engage with industry, governments, regulators, and other relevant external stakeholders on exchanging
transition expertise, developing standardized guidance and implementing policies that support an orderly transition;
participate in advocacy groups to drive necessary changes.
Training and culture:
– Continue to develop and prioritize roll-out of climate- and net-zero-specific training for employees and the Board of
Directors.
Climate data and analytics:
– Continue to enhance data acquisition, analytics capabilities and systems to monitor climate-related metrics and
enhance associated climate disclosures.
1 While we continue to take steps to align our business activities to our targets, it is important to note that progress towards our targets may not be linear and
that the realization of our own targets and ambitions is dependent on various factors which are outside of our direct influence. We will continue to adjust our
approach in line with external developments, as well as 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 2023, 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, fair value loans and guarantees as well as irrevocable loan commitments. Exclusions from scope
of analysis primarily comprise Financial Services and other exposure to private individuals. 2 As part of our ship finance strategy, ships in scope of Poseidon
Principles are assessed on criteria which aim at portfolio´s alignment to the Poseidon Principles decarbonization trajectories. The Poseidon Principles 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 (compared to 2008 levels). 3 In line with the Net Zero Asset Managers initiative, we acknowledge that the scope for asset managers to invest for net
zero depends on the mandates agreed with clients and clients’ and managers’ regulatory environments. Also, on the expectation that governments will follow
through on their own commitments to ensure the objectives of the Paris Agreement are met, including increasing the ambition of their Nationally Determined
Contributions, and in the context of investing, our legal duties to clients and unless otherwise prohibited by applicable law. In some asset classes or for some
investment strategies, agreed net-zero methodologies do not yet exist. Where our ability to align our approach to investments with the goal of net zero emissions
by 2050 is, today, constrained, we commit to embark with determination and ambition on a journey, and to challenge and seek to overcome the constraints
we face. 4 Scope 2 emissions are market-based emissions. The remaining scope 1 and 2 emissions may be in excess of the approximately 5–10% residuals
required for net zero (per the definition of a “net-zero target” by the ESRS E1 Climate Change per delegated act, adopted on 31 July 2023), which is our
ambition for 2050. In 2024, we will be reviewing our 2025 scope 1 and 2 target for achievability for the combined organization and for alignment with latest
guidance. 5 In 2024, we may review our target for GHG key vendors for the combined organization and for alignment with latest guidance. Our GHG key
vendors are those vendors that collectively account for more than 50% of our estimated vendor GHG emissions.

Sustainability Report 2023 | Appendix 2 | Environment 110

Our approach to nature

Why nature is important to us

Climate and nature are deeply intertwined. Just as in the financial world, where assets give rise to revenue flows,
the natural environment consists of stocks of assets (i.e., natural capital) that provide benefits to people and the
economy (i.e., ecosystem services). Biodiversity is an essential characteristic of nature, critical for maintaining the
quality, resilience and quantity of ecosystem assets and the provision of ecosystem services that businesses and
society rely upon. This has been documented through a range of research initiatives, including the Global
assessment report on biodiversity and ecosystem services from the Intergovernmental Science–Policy Platform on
Biodiversity and Ecosystem Services and the UK Government-sponsored The Economics of Biodiversity: The
Dasgupta Review.
We recognize the importance of understanding human dependencies and impacts on nature, to better understand
the transmission channels through which our clients and UBS may face risks and opportunities. We view nature,
alongside climate, as a risk driver that may manifest in transition and physical risks that both we and our clients need
to manage.
› Refer to the “Strategy” section of this report for more information about our sustainability strategy

Our governance
Our sustainability activities, including nature-related matters, are overseen at the highest level of the firm and
managed by the Group Sustainability and Impact organization. Our Chief Sustainability Office leads a cross-firm
Nature Working Group that meets monthly to consider nature-related activities, including regulatory and market
developments, and to coordinate activities across the firm.
› Refer to the “Governance” section of this report for more information about our sustainability governance,
including on nature

Our strategy
The Planet pillar of our overarching sustainability strategy encompasses our approach to nature, mirroring that for
climate, and is underpinned by three key objectives:
– supporting our clients’ low-carbon transition;
– reducing our climate impact;
– managing the risks of climate change to our business.
To address the needs of our clients, manage risks and contribute to positive impact, we have set standards for
financing, investments and supply chain management decisions, including explicit aspects related to nature. Within
our business divisions, we help our clients explore the opportunities related to natural capital and nature-positive
solutions. We believe our work on nature is just beginning and will rapidly develop in line with market needs,
regulations, data methodology developments and voluntary commitments.
Our strategy will further evolve as our understanding of the risks and opportunities connected to nature-related
impacts and dependencies deepens. As data and methodologies continue to improve, this will support the further
analysis of impacts and dependencies and the resulting risks and opportunities. We believe the release of the TNFD
recommendations and the European Sustainability Reporting Standards on nature will encourage further
developments in data and methodologies. We continue to engage with providers of nature-related data and
methodologies that may support our own work.
As part of this effort in 2023, UBS joined a bank-specific working group aimed at addressing risks and opportunities
in the agricultural sector. The working group is convened by the World Economic Forum’s Tropical Forest Alliance
(TFA) finance sector engagement team.
› Refer to the “Strategy” section of this report for more information about our sustainability strategy

Seeking nature-related opportunities

We already support our clients in identifying climate-related opportunities and look to provide similar support in
relation to nature, albeit that work is at an early stage.

Sustainability Report 2023 | Appendix 2 | Environment 111

As part of this effort, the UBS Sustainability and Impact Institute (the Institute) has published various thought-
leadership reports focusing on the topic of nature. These include From Ozone to Oxygen – Opportunities and Risks
in Natural Capital, published in 2022, which offered a detailed review of the importance of nature and made a
number of recommendations for key stakeholders to help address nature-related issues through financing, investing
and advising. More recently, in July 2023, the Institute published Taking root – Mainstreaming natural capital
accounting to meet global biodiversity goals. That report suggests that natural capital accounting (NCA) could be
integral to reversing biodiversity loss by 2030 if its development speeds up and presents a set of strategies that
investors and financers, NGOs, corporations and other stakeholders could pursue to help mainstream NCA. Also in
2023, the Credit Suisse Research Institute contributed to the dialogues on a global plastic treaty by publishing
Plastic pollution: Pathways to net zero. Highlighting the challenges of ever-increasing plastic waste, including for
biodiversity, this report discussed strategies for mitigation and adaptation, including waste management and the
possibility of a global plastics treaty.
Managing nature-related risks
Nature-related risks refer to how organizations and people depend on and impact natural capital, which is defined
as natural resources that combine to yield a flow of benefits to people.
› Refer to the “Managing sustainability and climate risks” section of this report for a description of our climate and
nature risk management

We have established criteria to assess nature-related risks through our firm’s standards. They address controversial
activities and areas of concern (including sensitive locations), recognizing that UBS is both directly and indirectly
exposed through our business activities. We limit business with clients or suppliers that may endanger animal species
and/or contribute to deforestation and its related impacts, such as forest degradation.
› Refer to the Supplement to this report, available at ubs.com/sustainability-reporting, for more information about
the sustainability and climate risk policy framework

Our sustainability and climate risk framework includes stipulation of controversial activities we will not knowingly
engage in, and areas of concern where we will only engage subject to stringent criteria.
Clients, transactions or suppliers potentially in breach of our standards, or otherwise subject to significant climate,
environmental and human rights controversies, are referred to our SCR unit, which approves or rejects the cases
after assessing their compliance with the firm’s risk appetite standards. Advanced data analytics on companies
associated with such risks is integrated into the web-based compliance tool used by our staff before they enter into
a client or supplier relationship, or a transaction. The systematic nature of this tool significantly enhances our ability
to identify potential risk. In 2023, the Stainability and Climate Risk unit performed 3,297 assessments, these
included 419 assessments focused on the agribusiness sector.
› Refer to the Supplement to this report, available at ubs.com/sustainability-reporting, for more information about
the sustainability and climate risk assessment table

Our investing clients and client assets

In our wealth management business, it has been our long-standing view that sustainable investing strategies look
beyond environmental, social and governance (ESG) integration. Thus, integrating material ESG information into
investment analysis and decisions is increasingly seen as a requirement for the investment management industry.
Exclusions, ESG integration and stewardship are a set of effective tools that can be incorporated not only in
sustainable but also in conventional investment strategies: they could also be paramount in addressing nature as
part of investments more broadly.
To facilitate a better use of these tools, our wealth management Chief Investment Office has identified six
sustainability topics that encompass the major challenges that both impact and are impacted by corporations and
governments, and can help inform investment decisions where relevant:
– pollution and waste
– climate change
– water
– people
– governance
– products and services

Sustainability Report 2023 | Appendix 2 | Environment 112

These topics are selected on the basis of industry best practices, relevance to company financial outcomes, data
availability and reliability, and client feedback on the issues they care most about. Five of the topics (pollution and
waste, climate change, water, people, and governance) focus on how well companies manage these issues within
their operations and, therefore, reflect a company’s operational footprint. This is where issues such as the
advancement of corporate policies and practices on biodiversity preservation and pollution reduction would be
captured and subsequently inform investment decisions where relevant. The sixth topic (products and services)
focuses on whether the company’s offering and its supply chain management address sustainability challenges
directly and it therefore captures a company’s delivery of solutions that directly mitigate environmental (and social)
challenges, for instance within climate change mitigation and adaptation, pollution management and addressing
water scarcity.
The six-topic framework is designed to offer a more simplified and targeted approach to sustainability challenges,
including those related to nature, and specifically to inform the decisions of private investors. They represent
universal sustainability challenges, although the priority of each topic may differ across industries. Additionally, the
companies that manage these topics well are not necessarily those with the least-adverse environmental or social
impact. In fact, sectors with the greatest exposure to sustainability risk factors often have a greater imperative
(regulatory or reputation-driven) to work to minimize their negative impact.
Global Wealth Management uses these topics to score companies, inform investment analysis, allocate discretionary
capital where relevant, and provide targeted advice to private and family office clients based on their stated
sustainability preferences. For example, when considering nature-related information, the portfolio managers, and
subsequently investors, would turn towards the topics of climate change, pollution and waste, water, and products
and services to identify potential nature-related risks or opportunities that were not apparent from their financial
analysis. Investors could also use the scores to assess the sustainability profile of their portfolios, to better
understand their exposure to potential sustainability risks and opportunities, as well as to evaluate whether their
investments are aligned with their personal values and interests. UBS also sources indicators of whether companies
are involved in a range of activities, including environmental ones, such as use of genetically modified organisms
or involvement in severe pollution actions, that some investors may wish to exclude.
How we approach natural capital risks in our investments
As an asset manager, we recognize that biodiversity loss and degradation is a source of material financial risk, and
managing this risk is integral to fulfilling our fiduciary duties toward our clients. We also recognize that investing
sustainably can promote actions that contribute to the preservation and restoration of natural capital of our planet.
Currently, we manage nature-related risks as part of our ESG integration processes. We use a proprietary ESG risk
dashboard that combines multiple data sources to identify companies with material ESG risks. Natural capital risks,
such as water and forest risks, are embedded in the methodologies of these underlying data sources, and our
investment teams utilize these ESG factors alongside traditional financial metrics and proprietary ESG sector
materiality maps to assess the risk-return profile in the investment process.
In 2023, we built on efforts started in 2022 to develop an investor thematic engagement program that works with
investee companies to encourage actions that ensure natural capital is accounted for and included in their financial
and economic decision-making. We developed this program by consulting with our clients, investment teams and
a wide array of external experts to shape our priorities and approach to natural capital. In addition to our proprietary
ESG sector materiality maps, we also conducted a heatmap assessment, mapping ENCORE data to our listed equity
and fixed income corporate investments to understand exposure to biodiversity risks at the industry level. This
process has led us to identify three specific areas that form the basis of our engagement program on natural capital
risks and opportunities: forests, water, and the climate-diversity nexus.
In 2023, we also joined Nature Action 100 and PRI’s Stewardship Initiative Spring to support the Asset Management
stewardship strategy. Nature Action 100 is a global investor engagement initiative focused on driving greater
corporate ambition and action to reverse nature and biodiversity loss. The initiative engages companies in key
sectors that are deemed to be systemically important in reversing nature and biodiversity loss by 2030. UBS is also
one of the members of the Advisory Committee.
Natural capital risks are considered across our real estate and private market investments. For example, our farmland
business is a founding member of Leading Harvest, an outcomes-based sustainability standard that addresses
economic, environmental, social, and governance matters through farm management. The Leading Harvest
Farmland Management Standard comprises 13 objectives, 33 performance measures and 71 indicators that are
core to farmland sustainability. Such nature-based objectives and performance measures include biodiversity
conservation through species protection, wildlife habitat conservation, avoided land conversion, and crop diversity.

Sustainability Report 2023 | Appendix 2 | Environment 113

Since 2020, the inaugural year of the standard, 100% of the farmland acres we manage have been enrolled and
as of 2023, 100% of the farmland acres we manage are certified. Conformance to the standard is assured through
independent, third-party certification.
During 2023, Asset Management (Credit Suisse) had thematic engagements with a specific focus on the three areas
of food systems, water and forest conservation. Going forward, the stewardship and engagement activities will be
progressively integrated.
› Refer to ubs.com/global/en/assetmanagement/capabilities/sustainable-investing/stewardship-engagement for our
approach to stewardship
› Refer to am.credit-suisse.com/ch/en/asset-management/insights/sustainable-investing/active-ownership.html for
Asset Management (Credit Suisse)’s approach to stewardship

Our vendors and operational impact

Our firm-wide Responsible Supply Chain Management (RSCM) framework is based on identifying, assessing, and
monitoring vendor practices on environmental and social topics. We have taken steps to protect biodiversity across
our offices, mitigate the impact of our operations and raise awareness among our staff. Initiatives include the
installation of green roofs featuring rooftop vegetable gardens and beehives at selected office locations, as well as
organizing tree planting activities across Europe. Additionally, we obtained recertification for one of our Zürich
offices from Natur & Wirtschaft, a Swiss foundation focused on promoting biodiversity conservation in settlement
areas. Our portfolio includes further certified areas, highlighting a focus on green spaces with native plants and
additional biodiversity features. We also organized annual events such as Clean-Up Day, during which UBS
volunteers join forces to clean up street litter in their respective cities, and World Bee Day, featuring webinars and
awareness campaigns highlighting the critical role of bees to our natural ecosystem.
Finally, in our corporate carbon offsetting activities, we make use of nature-based solutions, as well as technological
carbon capture and storage solutions. As standards in this area continue to evolve (e.g., the Core Carbon Principles
from the Integrity Council for Voluntary Carbon Markets), we will seek to apply them to our activities.
› Refer to the “Social” section of this report for a description of our Responsible Supply Chain Management

Mobilizing capital for nature

In order to support our investing clients, we continue to explore products and solutions that have a significant
nature-related sustainability focus or may even be able to generate more net nature-positive impacts. In Global
Wealth Management, for example, an investment solution that was launched in 2021 and aligns to our Future of
Earth publication promotes environmental objectives built around the themes of sustainable land use, sustainable
water use, the shift to clean energy and provision of health solutions that may help mitigate the impacts of
environmental degradation on human health.
We also have the opportunity to add certain environmental and nature-aligned products solutions to the GWM
offering as a result of the acquisition of the Credit Suisse Group. One example is an ocean engagement fund
strategy, focused on public company engagement to drive ocean health. We continue to explore ways to develop
further products and solutions in our wealth and asset management businesses.
We also continue to look for ways in which clients may be able to have more direct impact. This work is centered
in the UBS Optimus network of foundations and other philanthropic services that provide opportunities for high
net worth clients who may wish to undertake net-positive nature activities and are willing to do so in a way that
generates less-than-market returns.
The work of the UBS Optimus network of foundations on mangrove conservation and blue carbon continued in
2023, as the UBS Optimus network of foundations believes that mangrove restoration can not only be a form of
climate action through carbon sequestration but can also provide broader natural capital benefits through flood
protection, and even have social co-benefits by supporting ecotourism in critical areas.
Further exploring the power of philanthropy to deliver change at scale, the UBS Climate Collective, an impact
network for philanthropists and organizations, addresses the issue of climate mitigation and adaptation globally by
tackling problems locally and enabling replication and scale to other countries. The Collective supports and invests
in mangrove conservation and blue carbon projects in Southeast Asia, which is particularly vulnerable to climate
change, through a portfolio of nine impact-led organizations in Vietnam and Indonesia focused on building coastal
resilience to mitigate climate change and maximize social and biodiversity benefits. In 2023, the Collective
established 42 partnerships, including with local and national governments, as well as private sector, local and
international NGOs and funding partners, with the aim of generating systemic impact through collective action.

Sustainability Report 2023 | Appendix 2 | Environment 114

In 2023, the UBS Optimus network of foundations agreed to fund its nature-based solutions partner, Terratai, over
a three-year period. Terratai is creating and supporting businesses that are tackling the systemic food system
challenges contributing to nature and biodiversity loss in Asia.
This fits squarely with the UBS Optimus network of foundations’ ecosystem development approach to supporting
and fostering the incubation, growth and scaling of impactful enterprises and fills a gap we have identified for
investment opportunities in innovative nature-based solutions.
The UBS Optimus network of foundations has also been exploring the use of blended finance structures to mobilize
capital for nature. In 2022, it closed its first impact and blended deals in nature: one of them supporting marine
protected area governance, sustainable fisheries and ecotourism, with Blue Alliance in the Philippines. Blue Alliance
works across a network of nine Marine Protected Areas (MPAs) in the Philippines covering 5,200 hectares of coastal
and marine ecosystems.
For our financing clients, we include nature considerations alongside other topics as part of our ambition to be a
sustainable finance partner of choice. In 2023, Credit Suisse Group helped facilitate a foreign debt conversion by
the government of Ecuador replacing USD 1.62 billion of external debt with new debt of USD 652 million on better
terms. Associated with that, Ecuador agreed to provide an estimated USD 323 million for marine conservation in
the Galápagos Islands over the next 18.5 years by endowing an independent Galapagos Life Fund.
Finally, in 2023, Credit Suisse Group hosted the 10th annual Conservation Finance Conference in conjunction with
longstanding partners at Cornell University and The Nature Conservancy. The 2023 conference focused on nature
action catalyzed across the private and public sectors and explored how institutional investors and businesses are
stepping up to protect nature.

Our engagement and outlook

Participation in various industry collaborations is part of our effort to support our clients and further develop nature
markets. In addition to our work in the global TNFD network, we helped Swiss Sustainable Finance and the UN
Global Compact’s Swiss network to establish a Swiss TNFD national consultation group in 2022. In 2023, we gave
presentations on the TNFD several times to support capacity building in our home market. In the same year, we
also co-chaired the UNEP FI Principles for Responsible Banking Nature working group that developed initial guidance
on nature target setting for financial institutions. Also in 2023, we joined a World Economic Forum and Tropical
Forest Alliance industry working group and a local Brazil working group with Global Canopy to explore collaboration
on the critical issue of deforestation.
To support the development and growth of the conservation finance market, Credit Suisse Group was a co-founder
of the Coalition for Private Investment in Conservation (CPIC) in 2016. CPIC’s members included leading civil society
organizations, private and public-sector financial institutions, and academia, with the shared aim of working
together to deliver a material increase in private, return-seeking investment in conservation. We are continuing this
long-standing relationship going forward as UBS.
We also engage with policymakers and regulators regarding nature-related risk management. Through our
leadership of the Institute of International Finance Sustainable Finance Working Group, we engaged with the
Network for Greening the Financial System, the G20 Sustainable Finance Working Group and the International
Platform for Sustainable Finance (among others working on the topic).
In future years, we expect rapid improvements in data and methodologies, as well as the development of new
financing and investing approaches. In particular, we expect an increased focus on location- and company-specific
aspects of nature and a shift away from sector and country averages that form the basis for most of the portfolio-
level analytical approaches today. We are exploring the application of emerging analytical approaches, such as
biodiversity footprints and nature value-at-risk methodologies. We will continue to engage with regulators, industry
peers, collaborative platforms and individual service providers, and vendors to understand and support emerging
practices and offerings in the market.

Sustainability Report 2023 | Appendix 2 | Environment 115

Appendix
Appendix 33 –– Entity-specific
Entity-specific disclosures
disclosures for
for Credit
Credit
Suisse
Suisse AG
AG
During 2023, certain sustainability-related policies, processes and activities have continued at Credit Suisse,
During
following2023, certain sustainability-related
the acquisition of the Credit Suisse policies,
Group processes and activities
by UBS Group. have continued
This appendix at Credit
therefore sets Suisse,
out pertinent
following
informationtheand
acquisition
data whereof itthe
hasCredit Suisse
not been Group by
integrated in UBS Group. Thisand
the information appendix
data settherefore sets
out in the coreoutpart
pertinent
of this
information and data where it has not been integrated
report (and indicated, for example, via footnotes therein). in the information and data set out in the core part of this
report (and indicated, for example, via footnotes therein).
In strategic terms, following the acquisition, the sustainability (and impact) strategy of UBS Group has superseded
In strategic
that terms,
of Credit following
Suisse. Credit the acquisition,
Suisse AG doesthe notsustainability (and impact)
maintain a separate strategy of
sustainability UBS Group
strategy, hasactivities
but its superseded are
that of Credit Suisse. Credit Suisse AG
integrated within the strategy of UBS Group. does not maintain a separate sustainability strategy, but its activities are
integrated within the strategy of UBS Group.

Sustainability Report 2023 | Appendix 3 | Entity-specific disclosures for Credit Suisse AG 116
Sustainability Report 2023 | Appendix 3 | Entity-specific disclosures for Credit Suisse AG 116
Sustainability governance at Credit Suisse
Sustainability governance at Credit Suisse
Until its acquisition by UBS Group AG in June 2023, Credit Suisse Group AG had an established sustainability
Until its acquisition
governance system. Itbywas
UBSexercised
Group AGat itsinBoard
June of
2023, CreditExecutive
Directors, Suisse Group
Board,AG
andhad an management
senior established sustainability
levels, thus
governance
integrating sustainability into line processes and structures, as well as through boards and committees levels,
system. It was exercised at its Board of Directors, Executive Board, and senior management thus
specifically
integrating sustainability into line processes and structures, as well as through boards and committees
focused on sustainability topics. With the integration of Credit Suisse into UBS Group in the second half of 2023, specifically
focused on sustainability
this governance topics.for
was adapted With the integration
Credit Suisse and of Credit Suisse
integrated into into
UBS UBS Group
Group, in the
which secondthe
included halfsuccessive
of 2023,
this governance was adapted for Credit
retirement of certain CS governance bodies. Suisse and integrated into UBS Group, which included the successive
retirement of certain CS governance bodies.
Credit Suisse AG sustainability governance
Credit Suisse AG sustainability governance
Credit Suisse AG Sustainability governance

Credit Suisse AG Board of Directors¹

Governance, Nomina-
Sustainability Advisory Conduct and Financial
Audit Committee¹ Risk Committee¹ tions, and Compensa-
Committee Crime Committee
tion Committee¹

Credit Suisse AG Executive Board

Risk Management ESG Disclosure and Reporting Purpose, Values,

Conduct Board
Committee¹ Steering Committee¹ and Cultural Council

Management

Sustainability Leadership Committee¹

Climate Risk Strategy Steering Committee

Sustainability Operational Committee

Sustainability (Climate) Risk Executive Leadership Committee

Sustainability Framework Committees¹

Retired

1 Includes UBS GEB members or their delegates

The following tables illustrate the main corporate bodies that have been involved in maintaining robust sustainability
The following
governance attables
Creditillustrate the main corporate
Suisse. Alignment with UBSbodies
Group’sthatstrategies,
have beenobjectives,
involved inand
maintaining
guidelines robust sustainability
has been ensured
governance at Credit representation
through appropriate Suisse. Alignment withGroup
of UBS UBS Group’s
on thestrategies, objectives,
Credit Suisse Board of andDirectors,
guidelines has been
which ensured
includes UBS
through
Group and UBS GEB members. As set out in the Organization Regulations of UBS and its annexes, the UBS GEBUBS
appropriate representation of UBS Group on the Credit Suisse Board of Directors, which includes has
Group andmanagement
executive UBS GEB members. As set out
responsibility for in
thethe Organization
steering of UBSRegulations
Group andofitsUBS and itsConsequently,
business. annexes, the UBS for GEB has
matters
executive management responsibility for the steering of UBS Group and its business. Consequently,
affecting Credit Suisse, the primary counterparty / escalation path for Boards of Credit Suisse or committees is the for matters
affecting
UBS GEB.Credit Suisse, the primary counterparty / escalation path for Boards of Credit Suisse or committees is the
UBS GEB.
Active sustainability governance bodies (as of 31 December 2023)
Active sustainability
Governance governance
Lead bodies (as of 31Meeting
and other membership December 2023)
frequency Purpose and responsibilities related to sustainability-
body
Governance information
Lead and other membership Meeting frequency and climate-related
Purpose issues related to sustainability-
and responsibilities
body information and climate-related issues
Board of – Chairman of Credit Suisse AG – As often as its business – Responsible for the overall direction, supervision and
Directors
Board of (active) – Chairman
Meetings are normally
of Credit heldAG
Suisse with – requires,
As butitsatbusiness
often as least six – control of Credit
Responsible Suisse
for the anddirection,
overall its management taking
supervision andinto
Directors (active) the participation
– Meetings of theheld
are normally CEOwith
and ordinary meetings
requires, but at leastpersix account the
control of UBS Group’s
Credit strategy
Suisse and and interests.
its management taking into
ExB (with regular
the participation private
of the CEO and year
ordinary meetings per account the UBS Group’s strategy and interests.
sessions
the of theregular
ExB (with Board)private year
sessions of the Board)
Board Audit – Chair of the Audit Committee – As often as its business – Supports the BoD in fulfilling its oversight duties relating
Committee
Board Audit Meetings
– Chair areAudit
of the normally held with
Committee – requires,
As butitsatbusiness
often as least – to financial
Supports thereporting and internal
BoD in fulfilling controlsduties
its oversight over financial
relating
(active)
Committee the participation
– Meetings of theheld
are normally CEO,with
the four timesbut
requires, a year
at least reporting,
to financialthe effectiveness
reporting of the controls
and internal external over
and internal
financial
(active) CFO,participation
the the Head ofofIA,the CEO, the four times a year reporting, the effectiveness of the external and internal
CFO, the Head of IA,
Sustainability Report 2023 | Appendix 3 | Entity-specific disclosures for Credit Suisse AG 117
Sustainability Report 2023 | Appendix 3 | Entity-specific disclosures for Credit Suisse AG 117
 Governance Lead and other membership Meeting frequency Purpose and responsibilities related to sustainability-
body
Governance information
Lead and other membership Meeting frequency and climate-related
Purpose issues related to sustainability-
and responsibilities
body information and climate-related issues
representatives of the external – Regular joint meetings audit functions, and the effectiveness of whistleblowing
auditors and periodically,
representatives only
of the external – with thejoint
Regular Board Risk
meetings procedures and legal
audit functions, andeffectiveness
and the regulatory matters as relevant.
of whistleblowing
with the and
auditors participation of the
periodically, onlyHead Committee
with the Board Risk – Provided sign-off
procedures on the
and legal and2022 Creditmatters
regulatory Suisse Sustainability
as relevant.
of IA,the
with theparticipation
external auditors,
of theor
Head Committee – Report.
Provided sign-off on the 2022 Credit Suisse Sustainability
with
of IA,members of management,
the external auditors, or Report.
or a combination
with of any of the
members of management,
aforementioned
or a combination of any of the
aforementioned
Board Risk – Chair of the Risk Committee – As often as its business – Assists the BoD in fulfilling its risk management
Committee
Board Risk Meetings
– Chair areRisk
of the normally held with
Committee – requires,
As butitsatbusiness
often as least – responsibilities
Assists the BoDininthe areas its
fulfilling of risk
financial and non-financial
management
(active)
Committee the participation
– Meetings of theheld
are normally CEO,with
the four timesbut
requires, a year
at least risks (regulatory,
responsibilities in compliance,
the areas of financial
financial crime, conduct,
and non-financial
(active) CFO,participation
the the CRO, the of CCO, the CTO
the CEO, the – Regular
four joint
times meetings
a year governance and operational
risks (regulatory, compliance,risk), considering
financial the
crime, conduct,
and the
CFO, theHead
CRO,ofthe
IA CCO, the CTO – with thejoint
Regular Board Audit
meetings potential
governance effects of the afore-mentioned
and operational risks to
risk), considering theCredit
Representatives
and the Head ofof IAthe external Committee
with the Board Audit Suisse’s
potentialreputation.
effects of the afore-mentioned risks to Credit
auditors participate
Representatives (to external
of the the extent – Annual meetings with
Committee Suisse’s reputation.
necessary)
auditors in the RC(to
participate meetings
the extent – the Governance,
Annual meetings with
necessary) in the RC meetings Nominations,
the Governance, and
Compensationand
Nominations,
Committee
Compensation
Committee
Board – Chair of the Governance, – As often as its business – Formed by merging the former Credit Suisse Group AG
Governance,
Board – Nominations,
Chair and Compensation
of the Governance, – requires,
As butitsatbusiness
often as least – Board
FormedGovernance
by mergingand the Nominations
former CreditCommittee
Suisse Group andAG
the
Nominations,
Governance, Committee and Compensation
Nominations, four timesbut
requires, a year
at least Board Compensation
Governance andCommittee
Nominations Committee and the
and
Nominations, – Meetings are normally held with
Committee – Annual
four meetings
times a year with – Supports
Board the BoD in fulfilling
Compensation Committee its duties with respect to
Compensation
and – the participation
Meetings of theheld
are normally CEO,with
the – the Riskmeetings
Annual Committee with – overseeing
Supports the theBoDcorporate governance
in fulfilling its dutiesand
withcompensation
respect to
Committee
Compensation Global
the Head of People,
participation and senior
of the CEO, the the Risk Committee practices
overseeing ofthe
Credit Suisse,governance
corporate including the andorganization
compensation and
(active)
Committee representatives
Global Head of of the and senior
People, composition of theSuisse,
practices of Credit BoD and the selection
including and
the organization and
(active) Performance and
representatives ofReward
the nomination
compositionof ofnew BoD and
the BoD members, the appointment
the selection and of
function
Performance and Reward new ExB members,
nomination of new andBoD the determination
members, of
the appointment of
function compensation
new ExB members, for Credit
and theSuisse.
determination of
compensation for Credit Suisse.
Executive Board – Chaired by the Credit Suisse CEO – As often as its business – The Executive Board is appointed by the Board of
(active) Board
Executive – Chaired by the Credit Suisse CEO – requires,
As butitsatbusiness
often as least – Directors and acts
The Executive Boardin is
accordance
appointedwith theBoard
by the Group’s of
(active) monthly but at least
requires, strategies,
Directors and objectives and guidelines.
acts in accordance with the Group’s
monthly – Most seniorobjectives
strategies, management body of Credit Suisse AG and
and guidelines.
– is responsible
Most for the day-to-day
senior management body of operational
Credit Suisse AG and
management
is responsible under
for thethe leadership
day-to-day of the CEO.
operational
management under the leadership of the CEO.
Risk – Co-chaired by the Credit Suisse – As often as its business – Acts in accordance with the Group’s strategies,
Management
Risk – CEO, the CRO,
Co-chaired andCredit
by the the CCO
Suisse – requires,
As butitsatbusiness
often as least – objectives and guidelines.
Acts in accordance with the Group’s strategies,
Committee
Management CEO, the CRO, and the CCO monthly but at least
requires, – Steers andand
objectives monitors the development and execution of
guidelines.
(active)
Committee monthly – the Credit
Steers and Suisse
monitorsAG’stherisk strategy, approving
development risk of
and execution
(active) appetite
the Credit under
Suisse ExB RMC
AG’s riskauthority
strategy,across all riskrisk
approving types
and its divisions,
appetite under ExB as RMC
well as reviewing
authority the aggregate
across all risk typesand
highest risk exposures,
and its divisions, as wellkey risk concentrations,
as reviewing the aggregate and key
and
non-financial risks.
highest risk exposures, key risk concentrations, and key
– Monitors the execution
non-financial risks. of the overall approach to
– climate,
Monitorsjointly with legalofentity
the execution Boardapproach
the overall of Directors’to risk
committees where
climate, jointly withrelevant.
legal entity Board of Directors’ risk
committees where relevant.
ESG Disclosure – Chaired by the Credit Suisse CFO Subject to actual needs – Seeks to ensure that appropriate levels of control and
and Reporting
ESG Disclosure – and CSOby the Credit Suisse CFO
Chaired and circumstance
Subject to actual needs – governance
Seeks to ensureare in place
that for our ESG
appropriate disclosures.
levels of control and
Committee
and Reporting and CSO and circumstance
– 1H23 meetings: 2 governance are in place for our ESG disclosures.
Committee 2H23 meetings: 2
– 1H23
– 2H23 meetings: 2
Sustainability – The Sustainable Classification – SCC meets bi-weekly – The SCC is the governing body of the Sustainable
Framework
Sustainability – Committee
The (SCC)Classification
Sustainable –– SCC
Greenmeets bi-weekly
Finance – Investment Framework
The SCC is the governingand oversees
body of thethe investment
Sustainable
Committees
Framework – The Green Finance
Committee (SCC) Committee Committee
– Green meets ad-
Finance product classification
Investment Framework and oversees the investment
Committees – The Green Finance Committee hoc as required
Committee meets ad- – The Green
product Finance Committee is the governing body of
classification
hoc as required – the
The Green
Green Finance
Finance Framework
Committee and oversees
is the the body
governing issuance
of
of
thegreen
Greenfinance
Financeproducts and and
Framework green asset pool,
oversees and the
the issuance
reporting related products
of green finance to green and
issuances
green asset pool, and the
reporting related to green issuances
Paused or retired sustainability governance bodies
Paused or retired sustainability
Governance governance bodies
Lead and other membership Meeting frequency Purpose and responsibilities related to sustainability-
body
Governance information
Lead and other membership Meeting frequency and climate-related
Purpose issues related to sustainability-
and responsibilities
body information and climate-related issues
Board – Chair of the Sustainability Lead of As often as its business – Retired in April 2023; assisted the Board, in an advisory
Sustainability
Board the Board
– Chair of Sustainability
of the Directors Lead of requires,
As butitsatbusiness
often as least four – capacity,
Retired ininApril
fulfilling
2023;itsassisted
oversight theduties
Board,ininrespect of the
an advisory
Advisory
Sustainability the Board of Directors times a year
requires, but at least four development and execution
capacity, in fulfilling of the
its oversight Credit
duties in Suisse
respectGroup’s
of the
Committee
Advisory times
– 1H23a year
meetings: 1 sustainability
development strategy and ambitions
and execution and monitoring
of the Credit and
Suisse Group’s
(retired April
Committee – 2H23 meetings: 1
1H23 n/a assessing the strategy
sustainability effectiveness of the respective
and ambitions sustainability
and monitoring and
2023) April
(retired – (retiredmeetings:
2H23 in April 2023)
n/a programs andeffectiveness
assessing the initiatives. of the respective sustainability
2023) (retired in April 2023) programs and initiatives.
Conduct and – Chair of the Conduct and As often as its business – Retired in October 2023; and duties primarily embedded
Financial and
Conduct Crime – Financial
Chair Crime
of the Control
Conduct and requires, butitsatbusiness
As often as least four – into theinBoard
Retired Risk2023;
October Committee.
and duties primarily embedded
Committee
Financial Crime Committee
Financial Crime Control times a year
requires, but at least four – into
Assisted the Board
the Board Risk in fulfilling its oversight
Committee.
(retired October
Committee Committee times a year – responsibilities
Assisted the Boardwithinrespect to its
fulfilling Credit Suisse’s exposure
oversight
2023
(retired October to financial crime
responsibilities risk.
with respect to Credit Suisse’s exposure
2023 to financial crime risk.

Sustainability Report 2023 | Appendix 3 | Entity-specific disclosures for Credit Suisse AG 118
Sustainability Report 2023 | Appendix 3 | Entity-specific disclosures for Credit Suisse AG 118
 Governance Lead and other membership Meeting frequency Purpose and responsibilities related to sustainability-
body
Governance information
Lead and other membership Meeting frequency and climate-related
Purpose issues related to sustainability-
and responsibilities
body information and climate-related issues
Compensation – Chair of the Compensation As often as its business – Retired in June 2023 and duties integrated into the new
Committee
Compensation Committee
– Chair of the Compensation requires,
As butitsatbusiness
often as least four – Governance,
Retired in June Nominations,
2023 and duties and Compensation
integrated into the new
(integrated into
Committee Committee times a year
requires, but at least four Committee.
Governance, Nominations, and Compensation
the GNCC June
(integrated into times a year – Committee.
The Compensation Committee was responsible for
2023)
the GNCC June – proposing the compensation
The Compensation Committee structure and plansfor
was responsible for the
2023) Executive
proposingBoard and the broader
the compensation employee
structure population,
and plans for the
as well as Board
Executive determining
and thethe respective
broader variable
employee population,
compensation amounts,
as well as determining thebased on an variable
respective assessment of both
financial and non-financial
compensation amounts, based performance, for approval
on an assessment by
of both
the Board.
financial and non-financial performance, for approval by
the Board.
Credit Suisse – Co-chaired by the Global Head of As often as its business – Acted in accordance with the Group’s strategies,
Conduct
Credit Board
Suisse – People and by
Co-chaired another ExB member
the Global Head of requires,
As butitsatbusiness
often as least – objectives and guidelines
Acted in accordance with the Group’s strategies,
Conduct Board
(retired in – Minimum
People andofanother
five members from
ExB member monthly but at least
requires, – objectives
Establishedand andguidelines
determined a governance framework for
December
(retired in 2023) – the ExB and
Minimum of senior management
five members from monthly – the management
Established of conductamatters
and determined throughout
governance framework the for
December 2023) appointed
the ExB andbysenior
the CEO
management Credit Suisse entities.
the management of conduct matters throughout the
appointed by the CEO – Credit
Oversaw and entities.
Suisse reviewed the global disciplinary process of
– Credit
Oversaw Suisse
and entities,
reviewedensuring
the globalit was applied process
disciplinary in a fair of
and consistent
Credit manner.
Suisse entities, ensuring it was applied in a fair
and consistent manner.
Culture and – Co-chaired by the CEO and the Monthly – Retired in August 2023; led the Group-wide culture
Values
CultureBoard
and – Global Headbyofthe
Co-chaired People
CEO and the Monthly – strategy
Retired inand design
August efforts,
2023; led including a regular
the Group-wide review of
culture
(retired August
Values Board Global Head of People the Codeand
strategy of Conduct, and championing
design efforts, the review of
including a regular
2023)
(retired August implementation
the Code of Conduct, of the and
Group’s culture agenda
championing the in the
2023) divisions, regionsofand
implementation thefunctions.
Group’s culture agenda in the
divisions, regions and functions.
Sustainability – Chief Sustainability Officer Monthly (subject to actual – Paused since 2023, retired in January 2024.
Leadership
Sustainability – Sustainability Leaders
Chief Sustainability in Business
Officer needs and
Monthly circumstance)
(subject to actual – Steered the implementation
Paused since 2023, retired inofJanuary
the sustainability
2024. strategy
Committee
Leadership – Divisions and Leaders
Sustainability representatives from
in Business –needs andmeetings:
1H23 circumstance)
4 – across
Steeredthethebank, ensured bank-wide
implementation engagementstrategy
of the sustainability on
Committee
(paused since CCO, CRO,
Divisions andGC and IA
representatives from – 2H23
1H23 meetings: 1 4 plus sustainability
across the bank, andensured
oversawbank-wide
the progress towards on
engagement
August
(paused2023,
since CCO, CRO, GC and IA – 1 written
2H23 update1 plus
meetings: commitments
sustainability andandoversaw
strategicthepriorities.
progress It discussed
towards growth
retired
August in2023, (paused
1 writtenfrom August
update opportunities,
commitments and risksstrategic
and the priorities.
impact of Itthe market growth
discussed
January
retired in2024) 2023;
(pausedretired
from in January
August environment
opportunities,on theand
risks sustainability
the impactstrategy.
of the market
January 2024) 2024)
2023; retired in January – From April 2023,
environment provided
on the oversight
sustainability on the execution
strategy.
2024) – progress
From April of2023,
Sustainability
providedinitiatives
oversightandon projects
the execution
progress of Sustainability initiatives and projects
Sustainability – COO of Global Sustainability Monthly (subject to actual – Retired in March 2023 and responsibilities integrated
Operational
Sustainability – Representatives from each
COO of Global Sustainability needs and
Monthly circumstance)
(subject to actual – into theinSustainability
Retired March 2023Leadership Committee
and responsibilities from April
integrated
Committee
Operational – Business Divisions
Representatives andeach
from CRO, CCO, –needs andmeetings:
1H23 circumstance)
3 2023
into the Sustainability Leadership Committee from April
(retired
CommitteeMarch and GC Divisions and CRO, CCO,
Business – 2H23
1H23 meetings: n/a 3 – Provided
2023 oversight on the execution progress of
2023)
(retired March and GC – (retired in Marchn/a
2H23 meetings: 2023) – Sustainability initiatives
Provided oversight on theandexecution
projects progress of
2023) (retired in March 2023) Sustainability initiatives and projects
Climate Risk – Co-chaired by the Chief Risk Monthly (subject to actual – Retired in September 2023
Strategy
Climate Risk – Officer and by
Co-chaired thethe
Chief
Chief Risk needs and
Monthly circumstance)
(subject to actual – Provided
Retired inoverarching
September governance
2023 and guidance for
Steering
Strategy Sustainability
Officer and theOfficer
Chief needs
– 1H23andmeetings:
circumstance)
2 – Credit
ProvidedSuisse’s Climategovernance
overarching Risk Strategy andprogram
guidance and
forwas
Committee
Steering – Senior management
Sustainability Officer – 2H23
1H23 meetings: 0 2 mandated to develop
Credit Suisse’s Climatecomprehensive strategies
Risk Strategy program to was
and
(retired
Committee – representation,
Senior managementincluding a subset – (retired in September
2H23 meetings: 0 address
mandated climate-related risks.
to develop comprehensive strategies to
September
(retired 2023) of Executive Board
representation, members
including from
a subset 2023)
(retired in September address climate-related risks.
September 2023) across business
of Executive divisions,
Board membersGeneral
from 2023)
Counsel, Risk and
across business Global General
divisions,
Sustainability
Counsel, Risk reporting
and Globalto the
Executive Board
Sustainability Risk to the
reporting
Management
Executive BoardCommittee
Risk
Management Committee
Sustainability – Chaired by the Head of Corporate Monthly (subject to actual – Retired in September 2023
(Climate) Risk
Sustainability – Risk
Chaired by the Head of Corporate needs and
Monthly circumstance)
(subject to actual – Provided
Retired inoversight
September on2023
the implementation of the
Executive
(Climate) Risk Risk –needs andmeetings:
1H23 circumstance)
6 – Group’s
Providedstrategy
oversightwith
on respect to managingof
the implementation sustainability
the
Leadership
Executive – 2H23
1H23 meetings: 0 6 and climate-related
Group’s strategy with risks.
respect to managing sustainability
Committee
Leadership – (retired in September
2H23 meetings: 0 – Reported to the Climate
and climate-related risks.Risk Strategy Steering
(retired
Committee 2023)
(retired in September – Committee,
Reported to which in turnRisk
the Climate hadStrategy
a reporting line to the
Steering
September
(retired 2023) 2023) Executive
Committee, Board
whichRiskinManagement Committee.
turn had a reporting line to the
September 2023) Executive Board Risk Management Committee.
Net Zero – Chaired by the Chief Monthly (subject to actual – Retired in September 2023
Steering
Net Zero Board – Sustainability
Chaired by theOfficer
Chief needs and
Monthly circumstance)
(subject to actual – Provided
Retired inoversight
September and2023
strategic guidance for developing
(retired
Steering Board Sustainability Officer –needs andmeetings:
1H23 circumstance)
2 – the Group’s
Provided science-based
oversight goals guidance
and strategic and transition strategies
for developing
September
(retired 2023) – 2H23
1H23 meetings: 0 2 that underpinscience-based
the Group’s Credit Suisse’s net-zero
goals 2050 ambition.
and transition strategies
September 2023) – (retired in September
2H23 meetings: 0 that underpin Credit Suisse’s net-zero 2050 ambition.
2023)
(retired in September
2023)

Sustainability Report 2023 | Appendix 3 | Entity-specific disclosures for Credit Suisse AG 119
Sustainability Report 2023 | Appendix 3 | Entity-specific disclosures for Credit Suisse AG 119
Environmental matters at Credit Suisse
Environmental matters at Credit Suisse
Credit Suisse Group AG’s net-zero ambition included investment activities on behalf of clients within Asset
Credit Suisse (Credit
Management Group Suisse)
AG’s net-zero ambition
and Investment included
Solutions investment activities
& Sustainability on of
(IS&S), part behalf
Wealth of Management
clients within(Credit
Asset
Management (Credit Suisse) and Investment Solutions & Sustainability (IS&S), part of Wealth
Suisse). It included a 2030 interim goal for the reduction of investment-associated emissions in intensity terms by Management (Credit
Suisse).
50% byIt 2030
included a 2030
across interim
Credit goal for
Suisse’s the equities
listed reductionand of investment-associated
corporate bonds investments. emissions The
in intensity
goals ofterms by
Asset
50% by 2030(Credit
Management acrossSuisse)
Creditand Suisse’s
IS&S aimedlisted toequities
considerand thecorporate
scope 1 and bonds investments.
2 emissions The goals
of portfolio of Asset
companies, as
Management (Credit Suisse) and IS&S aimed to consider the scope 1 and 2 emissions
well as scope 3 emissions for portfolio companies in the energy sector. Given the reliance on companies to report of portfolio companies, as
well as scope 3 emissions for portfolio companies in the energy sector. Given
their emissions, at this point in time, Credit Suisse can only report progress on this target for 2022. the reliance on companies to report
their emissions, at this point in time, Credit Suisse can only report progress on this target for 2022.
As previously disclosed in the 2022 Credit Suisse Group Sustainability Report, Credit Suisse’s investment-associated
As previously
emissions disclosedrequire
disclosures in the restatement
2022 Credit each Suisseyear
Group Sustainability
as further Report,
assets come Credit
into scopeSuisse’s
and asinvestment-associated
more emissions data
emissions
is reporteddisclosures
by investee require restatement
companies. each year
As a result, priorasyears
further
have assets
beencome into scope
recalculated andand as more emissions
re-baselined to reflectdata
the
is reported by investee companies. As a result, prior years have been recalculated
updated emissions reported in the MSCI database. We have aligned the currency for this disclosure to the UBS and re-baselined to reflect the
updated emissions reported in the MSCI database. We have aligned the currency
reporting currency of USD (with Credit Suisse having previously reported this disclosure in CHF). Comparative for this disclosure to the UBS
reporting
periods arecurrency
convertedof atUSD
the(with
spot rateCreditas ofSuisse having31
December previously reported
in the relative this disclosure in CHF). Comparative
period.
periods are converted at the spot rate as of December 31 in the relative period.
The Asset Management (Credit Suisse) and Investment Solutions & Sustainability disclosure was previously reported,
The
usingAsset
USDManagement
equivalents, as (Credit Suisse) and
30,578,651 Investment
for 2021, Solutions
31,439,331 for&2020
Sustainability disclosurefor
and 32,045,782 was previously
2019 reported,
for “Investment
using USD emissions
associated equivalents, as 30,578,651
(absolute) (t CO2e)” for and
2021,
130 31,439,331
for 2021, 151 for 2020 and 32,045,782
for 2020 and 190 for for 20192019 for “Investment
“Emission intensity
associated emissions (absolute) (t CO
(t CO2e per USD million invested)”. In addition, the previously reported “Assets under management (AuM) intensity
2 e)” and 130 for 2021, 151 for 2020 and 190 for 2019 “Emission in scope
(t COand
%” 2e per USD million
“In-scope AuMinvested)”.
with emissions In addition,
data %” thewaspreviously
44% and reported
39% for “Assets
2021,under
44% andmanagement (AuM)and
36% for 2020 in scope
41%
%” and “In-scope
and 32% for 2019. AuM with emissions data %” was 44% and 39% for 2021, 44% and 36% for 2020 and 41%
and 32% for 2019.
The investment-associated emissions of a listed equity and corporate bond portfolio are calculated as the company
The investment-associated
emissions weighted by the emissions
outstanding of amount
a listed equity
dividedandby corporate
the enterprisebondvalue
portfolio are calculated
including cash, summedas theupcompany
over all
emissions weighted by the outstanding amount divided by the enterprise value including
investee companies. The emissions intensity corresponds to the total investment-associated emissions normalized cash, summed up over all
investee companies. The emissions intensity corresponds to the total investment-associated
by the invested amount. For 2022, Asset Management (Credit Suisse) and IS&S measured investment-associated emissions normalized
by the invested
emissions amount.
in intensity For 2022,
terms as 126Assett COManagement (Credit Suisse) and IS&S measured investment-associated
2e per million US dollars invested. This represents a decrease of 7%
emissions
compared in intensity
with 2021 and terms as 126 with
compares t COan 2e annual
per million
target USreduction
dollars invested.
of 6% for This represents
both a decrease (Credit
Asset Management of 7%
compared with 2021 and compares with
Suisse) and IS&S compared with 2019 as the baseline year.an annual target reduction of 6% for both Asset Management (Credit
Suisse) and IS&S compared with 2019 as the baseline year.
Portfolio emissions (Credit Suisse) For the year ended
Portfolio
Credit emissions
Suisse (Credit Suisse)
Asset Management 31.12.22 For the year ended
31.12.21 31.12.20 31.12.19
Credit Suisse Asset Management
Investment associated emissions (absolute) (tCO2e) 31.12.22 31.12.21 31.12.20 25,008,330
19,167,144 26,212,036 27,442,394 31.12.19
Investment associated
Emissions intensity emissions
(tCO (absolute)
2e per USD (tCO2e)
million invested) 19,167,144
124 26,212,036
129 27,442,394151 25,008,330
172
Emissions intensity
AuM in scope % (tCO2e per USD million invested) 124
42% 129
44% 151
44% 172
41%
AuM in scope
In-scope AuM % with emissions data % 42%
35% 44%
39% 44%
37% 41%
32%
In-scopeSuisse
Credit AuM with
Assetemissions data %and Investment Solutions & Sustainability (IS&S)
Management 35% 39% 37% 32%
Credit Suisse
Investment Asset Management
associated and Investment
emissions (absolute) (tCO2e) Solutions & Sustainability (IS&S) 22,462,090 31,977,454 32,807,157 29,778,625
Investmentintensity
Emissions associated emissions
(tCO (absolute)
2e per USD (tCO2e)
million invested) 22,462,090
126 31,977,454
136 32,807,157
157 29,778,625
176
Emissions intensity
AuM in scope % (tCO2e per USD million invested) 126
42% 136
44% 157
44% 176
41%
AuM in scope
In-scope AuM % with emissions data % 42%
35% 44%
39% 44%
37% 41%
33%
In-scope AuM with emissions data % 35% 39% 37% 33%
Between 2021 and 2022, absolute investment-associated emissions decreased by 30% for Asset Management
Between 2021and
(Credit Suisse) andWealth
2022, Management
absolute investment-associated emissions
(Credit Suisse) combined. decreased
This by a30%
is driven by for Asset
reduction Management
in managed AuM
(Credit Suisse) and Wealth Management (Credit Suisse) combined. This is driven by a reduction
during this period as the emission intensity only decreased by 7%. The major factor contributing to the reduction in managed AuM
during this period as the emission intensity only decreased by 7%. The major factor contributing
in emission intensity is the general increase in market values for positions in the energy sector, mostly due to to the reduction
in emission tensions.
geopolitical intensity These
is the market
generalvalue
increase in market
increases values
introduce for positions
a dilution effect.in the energy sector, mostly due to
geopolitical tensions. These market value increases introduce a dilution effect.
Due to the current lack of available data (fund look-through data as well as carbon data), it is not possible to
Due to themeasure
accurately current the
lackinvestment-associated
of available data (fund look-through
emissions datain-scope
of all our as well assets.
as carbon data),
Overall, it is not possible to
investment-associated
accurately measure the investment-associated emissions of all our in-scope assets. Overall,
emissions were calculated for 178 (USD billion) of total AuM in 2022 within Asset Management (Credit Suisse) andinvestment-associated
emissions were calculated
IS&S that relate for 178
to discretionary (USD billion)
mandates. The of
35% total AuMrefers
figure in 2022 within
to the AuMAsset Management
marked as in scope(Credit
with Suisse) and
data (listed
IS&S thatand
equities relate to discretionary
corporate bonds). mandates. The 35% figure refers to the AuM marked as in scope with data (listed
equities and corporate bonds).
In-scope AuM are expressed as a share of the total AuM of Asset Management (Credit Suisse) including pooled
In-scope
funds andAuM are expressed
discretionary as a share
mandates, of the total
and Wealth AuM of Asset
Management (CreditManagement (Credit Suisse)
Suisse) for discretionary including
mandates pooled
managed
funds and discretionary mandates, and Wealth Management (Credit Suisse) for discretionary
within IS&S. Excluded locations for Asset Management (Credit Suisse) include Americas and Asia Pacific. Excluded mandates managed
within IS&S.
locations for Excluded locations for (Credit
Wealth Management Asset Management
Suisse) include (Credit
Spain,Suisse)
Brazil, include Americas and Asia Pacific. Excluded
and Mexico.
locations for Wealth Management (Credit Suisse) include Spain, Brazil, and Mexico.

Sustainability Report 2023 | Appendix 3 | Entity-specific disclosures for Credit Suisse AG 120
Sustainability Report 2023 | Appendix 3 | Entity-specific disclosures for Credit Suisse AG 120
As we strive to operate seamlessly as one organization and to publish a target which will cover the combined UBS
As
andwe strive Suisse
Credit to operate
Assetseamlessly
Managementas onebusiness,
organization and to publish
the previous interima target
targetswhich willreduction
for the cover the of
combined UBS
investment-
and Credit Suisse Asset Management business, the previous interim targets for the reduction of
associated emissions announced by Credit Suisse and the corresponding Climate Action Plan will be withdrawn in investment-
associated
2024. emissions announced by Credit Suisse and the corresponding Climate Action Plan will be withdrawn in
2024.
Credit Suisse-specific environmental footprint
Credit Suisse-specific environmental footprint
The table below contains the 2023 annual environmental data across the Credit Suisse operational footprint. The
The
tabletable below
contains containswhere
instances the 2023
units annual environmental
and indicator datachanged
names have across the Credit Suisse
compared operational
to prior footprint.
Credit Suisse The
disclosures
table contains instances where units and indicator names have changed compared to prior Credit Suisse
in order to align with the corresponding UBS terminology. To enable the integration within the consolidated UBS disclosures
in orderfigures,
Group to align with
the the corresponding
figures UBS
contained within terminology.
this To enable
table have been the integration
recalculated within
to align with thethe consolidatedinUBS
methodology use
Group
at UBS. figures, the figures contained within this table have been recalculated to align with the methodology in use
at UBS.
Credit Suisse-specific environmental footprint
Credit Suisse-specific environmental footprint
Environmental indicators (Credit Suisse)1,3,4,5 2023 2022 2021
Environmental indicators (Credit Suisse)1,3,4,5 GRI2
2023 2022 2021
GRI 2
Energy

Total direct and intermediate energy consumption (GWh) 302 353 GWh 395 GWh 388 GWh
Paper Energy

Total direct and intermediate energy consumption (GWh) 302 353 GWh 395 GWh 388 GWh
Electricity GWh 274 GWh 306 GWh 289 GWh
Electricity
Share of electricity from renewable sources GWh
(%) 302 27490.5%
GWh 30683.1%
GWh 28984.9%
GWh
Share of electricity from renewable sources (%) 302 90.5% 83.1% 84.9%
Total paper consumption (tons) 301 669 t 832 t 1,160 t
Total paper consumption (tons) 301 669 t
Water Paper

832 t 1,160 t
Paper consumption in kg per FTE (kg/FTE) 14 kg 16 kg 23 kg
Paper consumption in kg per FTE (kg/FTE) 14 kg 16 kg 23 kg

Total water consumption (m m³) 303 0.47 m m³ 0.46 m m³ 0.38 m m³

Water

Total water consumption (m m³) 303 0.47 m m³ 0.46 m m³ 0.38 m m³

Water consumption m³ / FTE (m³/FTE) 10 m³ 9 m³ 7 m³
Water consumption m³ / FTE (m³/FTE) 10 m³ 9 m³ 7 m³
Direct greenhouse gas (GHG) emissions (scope 1)6 (t CO2e) 305-1 11,063 t 13,584 t 13,537 t
(GHG)

Direct greenhouse gasenergy

Gross location-based (GHG)indirect
emissions GHG (scope 1)6 (scope 2)7
emissions (t CO22e) 305-1
305-2 11,063
68,467 t 13,584
75,324 t 13,537
85,821 t
(GHG)

Gross location-based
Market-based energyenergy
indirectindirect GHG emissions
GHG emissions (scope (scope
2)8 2)7 (t CO22e) 305-2 68,467
15,309 t 75,324
24,153 t 85,821
21,274 t
Market-based
Gross energy
other indirect indirect
GHG GHG emissions
emissions (gross scope (scope
3)9,102)8 (t CO22e) 305-2
305-3 15,309
42,337 t 24,153
52,947 t 21,274
32,943 t
Gases

Gross other indirect

Purchased goods and GHG emissions
services (scope(gross
3 cat 1)scope
(only 3)9,10
paper and water) (t CO22e)
(t CO e) 305-3 42,337
688 t 52,947
820 t 32,943
1,327 t
Gases

Purchased
Scope 3 catgoods and
3 Fuel- andservices (scope 3 activities
energy-related cat 1) (only paper
(not and water)
included in scope 1 (t CO2e) 688 t 820 t 1,327 t
(t CO2e) 22,632 t 25,365 t 23,369 t
or scope
Scope 2) 3 Fuel- and energy-related activities (not included in scope 1
3 cat
(t CO e) 22,632 t 25,365 t 23,369 t
Greenhouse

or scope 2)from waste - (scope 3 cat 5)

Emissions (t CO22e) 545 t 968 t 895 t
Greenhouse

Emissions from waste

Travel emissions - (scope
- (scope 3 cat 3
6)cat 5) (t CO22e) 545 t
18,472 968 t
25,794 895 t
7,352
Travel
Total emissions
Gross - (scope 3 11
GHG Emissions cat 6) (t
(t CO
CO22e)e) 18,472 t
121,868 25,794 t
141,855 7,352 t
132,301
Gross
Total Net GHGGHG Emissions
Emissions 11
(GHG Footprint)12 (t CO22e) 121,868
68,710 t 141,855
90,684 t 132,301
67,754 t
Total Net GHG Emissions (GHG Footprint)12 (t CO2e) 68,710 t 90,684 t 67,754 t
Greenhouse gas (GHG) footprint (t CO2e / FTE) (t CO2e/FTE) 305-4 1.4 t 1.6 t 1.2 t
Greenhouse gas (GHG) footprint (t CO 2 e / FTE) (t CO
Legend: GWh = gigawatt hour; km = kilometer; t = metric ton; m³ = cubic meter; m = million; CO e/FTE)
e = 2CO equivalents 305-4 1.4 t 1.6 t 1.2 t
2 2

Legend:
1 GWh
Reporting = gigawatt
periods: 2023hour; km = 2023
(1 January kilometer;
to 31t December
= metric ton; m³ =2022
2023), cubic(1meter;
Januarym 2022
= million;
to 31CO 2e = CO2 equivalents
December 2022), 2021 (1 January 2021 to 31 December 2021). 2 Reference to GRI
Sustainability Reporting
1 Reporting periods: Standards
2023 (see2023
(1 January also globalreporting.org).
to 31 December 2023),32022 Metrics relate to2022
(1 January the activities under the2022),
to 31 December operational
2021 (1control of Credit
January 2021 toSuisse, therefore2021).
31 December excludes 2any environmental
Reference to GRI
impacts resulting
Sustainability from the
Reporting products,
Standards (seeservices, or other downstream3 Metrics
also globalreporting.org). client activities.
relate to the4 GHG emissions
activities pertain
under the to Creditcontrol
operational Suisse.of Credit
5 FTEsSuisse,
used for intensity
therefore metricsany
excludes areenvironmental
calculated on
monthly / quarterlyfrom
impacts resulting average basis as applicable
the products, andother
services, or include Credit Suisse
downstream employees
client activities.and4contractors
GHG emissions to provide a more
pertain representative
to Credit Suisse. 5number of individuals
FTEs used using
for intensity Credit
metrics areSuisse facilities.
calculated on
6 Previously
monthly reported
/ quarterly as "Total
average scope
basis 1 emissions"
as applicable and by CreditCredit
include Suisse. 7 Previously
Suisse employeesreported as "Totaltoscope
and contractors 2 (location-based)
provide GHG emissions"
a more representative number ofby Credit Suisse.
individuals 8 Previously
using Credit Suisse reported
facilities.
as "Total scope 2 (market-based) GHG emissions (t CO2e)" by Credit Suisse. 9 Previously reported as "Total scope 3 emissions" by Credit Suisse. 10 Due
6 Previously reported as "Total scope 1 emissions" by Credit Suisse. 7 Previously reported as "Total scope 2 (location-based) GHG emissions" by Credit Suisse. 8 Previously reported to limited data availability
aasfull GHGP-aligned
"Total Scope 3 emissions
scope 2 (market-based) report is not
GHG emissions currently
(t CO2e)" bypossible to produce.
Credit Suisse. The reported
9 Previously Scope
reported 3 emissions
as "Total scope figures are limited
3 emissions" to the
by Credit following
Suisse. 10 categories only:data
Due to limited 3.1 availability
Purchased
agoods and services (water
full GHGP-aligned Scopeand paper only),
3 emissions 3.3isFuel
report notand energy-related
currently emissions,
possible to produce.3.5 TheWaste generated
reported Scope 3inemissions
operations, 3.6 Employee
figures are limitedbusiness travel. 11
to the following Previouslyonly:
categories reported as "Total
3.1 Purchased
scope
goods 1, 2 (location
and based),and
services (water 3 GHG
paperemissions"
only), 3.3 by Credit
Fuel Suisse. 12 Previously
and energy-related reported
emissions, as "Total
3.5 Waste scope in
generated 1,operations,
2 (market based), 3 GHG business
3.6 Employee emissions" by Credit
travel. Suisse. reported as "Total
11 Previously
scope 1, 2 (location based), 3 GHG emissions" by Credit Suisse. 12 Previously reported as "Total scope 1, 2 (market based), 3 GHG emissions" by Credit Suisse.

Sustainability Report 2023 | Appendix 3 | Entity-specific disclosures for Credit Suisse AG 121
Sustainability Report 2023 | Appendix 3 | Entity-specific disclosures for Credit Suisse AG 121
 2023 progress toward 2022 progress toward 2021 progress toward
2025 objectives1 2025
2023 objectives
progress toward 2025
2022 objectives
progress toward 2025
2021 objectives
progress toward
2025 objectives1 2025 objectives 2025 objectives 2025 objectives
75% reduction in GHG emissions (compared with 2010 levels on reported
n/a 77.2% 83.0%
operational
75% aspects)
reduction in GHG emissions (compared with 2010 levels on reported
n/a 77.2% 83.0%
operational aspects)
100% renewable electricity (consistent with RE 100) 90.5% 83.1% 84.9%
100% renewable electricity (consistent with RE 100) 90.5% 83.1% 84.9%
50% green label office space (in m2) certified to a green building standard2 48% 47% 37%
50% green label office space (in m2) certified to a green building standard2 48% 47% 37%
1.5% annual energy efficiency improvement (on a year-on-year basis) 1.4% 0.7% N/A
1.5% annual energy efficiency improvement (on a year-on-year basis) 1.4%
We have identified single-use 0.7% and alternatives in
plastic (SUP) categories N/A
Reduce single-use plastic items (and increase the share of products made partnership
We with oursingle-use
have identified global FMplastic
provider.
(SUP)Phase 1 of the
categories andproject, launched
alternatives in in
from recycled
Reduce material
single-use and
plastic reusable
items (and materials
increase the share of products made 2023, encompassed
partnership with our 7global
locations and resulted
FM provider. in 1the
Phase ofimplementation of
the project, launched in
from recycled material and reusable materials sustainable alternatives
2023, encompassed for almost
7 locations andhalf the SUP
resulted in items identified.
the implementation of
10% paper reduction (on an FTE basis, compared to 2018 baseline) sustainable alternatives for almost half the SUP items identified.
10% paper reduction (on an FTE basis, compared to 2018 baseline) Has not previously been, and will continue to not be, disclosed due to a
100% environmental label paper combination
Has of poor
not previously quality
been, anddata and long-term
will continue to notdistortion in the
be, disclosed data
due to arising
a
100% environmental label paper from changesoftopoor
combination working patterns
quality as along-term
data and result of the COVIDinpandemic.
distortion the data arising
10% water efficiency improvement (on a per FTE basis, compared to 2018
baseline)
10% water efficiency improvement (on a per FTE basis, compared to 2018 from changes to working patterns as a result of the COVID pandemic.
baseline)

2030 enterprise goal

2030 enterprise
61% reduction goal
in scope 1 and scope 2 enterprise GHG emissions (against
58% 3 n/a n/a
2019 reduction
61% baseline) in scope 1 and scope 2 enterprise GHG emissions (against
58% 3 n/a n/a
2019
1 baseline)
All figures have been retrospectively aligned to the prevailing UBS reporting methodology which has resulted in deviations to the previously reported figures. 2 Scope limited to
Credit Suisse facilities
1 All figures have beenthat contain officealigned
retrospectively space. to
“Green” office space
the prevailing refers to third-party
UBS reporting methodologyaccredited certifications
which has resulted insuch as LEED,toBREEAM,
deviations DGNB,reported
the previously Minergiefigures.
as well as2 the Credit
Scope Suisse
limited to
green property
Credit qualitythat
Suisse facilities seal.contain
3 Alloffice
figures have “Green”
space. been retrospectively
office space aligned
refers totothird-party
the prevailing UBS reporting
accredited methodology
certifications whichBREEAM,
such as LEED, has resulted
DGNB,in deviations
Minergie astowell
the as
previously
the Creditreported
Suisse
figures. Retrospective changes to the 2019 Scope 2 market based emissions baseline methodology to align with the prevailing UBS methodology have resulted in
green property quality seal. 3 All figures have been retrospectively aligned to the prevailing UBS reporting methodology which has resulted in deviations to the previously reported significant changes to
the 2019
figures. Scope 1 andchanges
Retrospective 2 baseline used
to the to calibrate
2019 the 61%
Scope 2 market reduction
based target.
emissions The original
baseline baseline
methodology to adopted
align witha the
GHGP-aligned renewable
prevailing UBS electricity
methodology havedefinition which
resulted in has subsequently
significant changes to
been changed
the 2019 Scopeto1aand
more stringentused
2 baseline RE-100 definition.
to calibrate theThe
61%impact of thistarget.
reduction is a reduction in the
The original renewable
baseline electricity
adopted coverage across
a GHGP-aligned our updated
renewable 2019
electricity baseline,
definition andhas
which a corresponding
subsequently
increase
been in our to
changed Scope 2 market
a more based
stringent emissions
RE-100 figures.The
definition. As impact
such the
of2023
this isperformance
a reduction against this target electricity
in the renewable now appears much across
coverage higher.our
Thisupdated
target will be retired
2019 in and
baseline, 2024a as the business
corresponding
aligns under
increase a single
in our Scopesuite of consolidated
2 market environmental
based emissions targets.
figures. As such the 2023 performance against this target now appears much higher. This target will be retired in 2024 as the business
aligns under a single suite of consolidated environmental targets.

Sustainability Report 2023 | Appendix 3 | Entity-specific disclosures for Credit Suisse AG 122
Sustainability Report 2023 | Appendix 3 | Entity-specific disclosures for Credit Suisse AG 122
People at Credit Suisse
People at Credit Suisse
As part of the integration of Credit Suisse, we examined our people management landscape. Our analysis showed
As
thatpart of the
nearly all integration of Credit
of Credit Suisse’s Suisse, we
workforce andexamined our people
demographic data ismanagement landscape.
compatible with Our analysis
ours, allowing us toshowed
report
that nearly all of Credit Suisse’s workforce
consolidated figures, unless otherwise stated. and demographic data is compatible with ours, allowing us to report
consolidated figures,
› Refer to the unless otherwise
“Supplement to Social” stated.
section of the Supplement to the UBS Group Sustainability Report 2023,
› Refer to the
available “Supplement to Social” section of
at ubs.com/sustainability-reporting themore
, for Supplement to the
information UBS “Workforce
about Group Sustainability Report 2023,
by the numbers”
available at ubs.com/sustainability-reporting, for more information about “Workforce by the numbers”

Sustainability Report 2023 | Appendix 3 | Entity-specific disclosures for Credit Suisse AG 123
Sustainability Report 2023 | Appendix 3 | Entity-specific disclosures for Credit Suisse AG 123
Supporting opportunities at Credit Suisse
Supporting opportunities at Credit Suisse
As part of the integration of Credit Suisse, UBS has retired the Credit Suisse Sustainable Activities Framework (the
As part
SAF), as of theasintegration
well of CreditUSD
its related external Suisse,
300UBS hassustainable
billion retired thefinance
Credit commitment.
Suisse Sustainable
The SAFActivities
and itsFramework (the
corresponding
SAF), as well as its related external USD 300 billion sustainable finance commitment. The SAF
sustainable finance target were originally introduced in 2020 to classify transactions for reporting purposes, in the and its corresponding
sustainable finance target
absence of established were originally
external guidance introduced in 2020However,
and peer practice. to classifysince
transactions for reporting
then Credit purposes,
Suisse’s business in the
strategy
absence of established
and operating model have external guidance
undergone and peerchanges
significant practice.andHowever,
market since then Creditstandards
and regulatory Suisse’s business strategy
have progressed
and operating model have undergone significant changes and market and regulatory standards
considerably. Accordingly, the SAF framework was put operationally on hold in early 2023, prior to the acquisition. have progressed
considerably. Accordingly,
Since UBS’s taxonomy andthe SAF framework
frameworks will bewastheput operationally
standard on hold
for future in early finance
sustainable 2023, prior to theand
business acquisition.
product
Since UBS’s taxonomy and frameworks
development, the SAF was discontinued in 2023. will be the standard for future sustainable finance business and product
development, the SAF was discontinued in 2023.
By contrast, the Credit Suisse Sustainable Investment Framework (the SIF) continues to be in operational use. It is
By
partcontrast, the Credit
of the Credit SuisseSuisse Sustainable
AG product Investment
offering directly Framework
to clients as(thewellSIF)
as continues
a reportingtotool.
be inAsoperational use.fulfils
such, the SIF It is
part of the Credit Suisse AG product offering directly to clients as well as a reporting tool.
an important role in meeting certain regulatory requirements in relation to clients’ preferences around sustainabilityAs such, the SIF fulfils
an
andimportant
will only role
be in meeting certainin
decommissioned regulatory
due course requirements
as the parentin relation
bankstoareclients’ preferences
merged and thearound
product sustainability
offering is
and will
harmonized.only be decommissioned in due course as the parent banks are merged and the product offering is
harmonized.
Credit Suisse Sustainable Investment Framework
Credit Suisse Sustainable Investment Framework
The SIF was established in 2020 and is utilized to classify investment solutions in an effort to seek consistency and
The SIF was established
set minimum standards in 2020different
across and is utilized to classify
asset classes, investmentand
geographies, solutions in anregimes.
regulatory effort toClassification
seek consistency and
can also
set minimum standards across different asset classes, geographies, and regulatory regimes.
help match clients’ interests with relevant investment solutions. The SIF classification does not supersede any Classification can also
help matchcommitment,
regulatory clients’ interests with the
nor does relevant investmentdetermine
SIF classification solutions. or The SIF classification
indicate whether andoes not supersede
investment solution any
will
regulatory commitment, nor does the SIF classification determine
be labelled as “sustainable” (or other such term) under any given regulatory regime. or indicate whether an investment solution will
be labelled as “sustainable” (or other such term) under any given regulatory regime.
The SIF focuses on the following primary approaches.
The SIF focuses on the following primary approaches.
– Exclusion: Positions assessed not to be significantly involved in controversial business fields or incidents.
– Exclusion: Positions assessed not to be significantly involved in controversial business fields or incidents.
– Integration: Positions assessed to be integrating environmental, social, and governance into their strategy.
– Integration: Positions assessed to be integrating environmental, social, and governance into their strategy.
– Thematic: Positions assessed to be in alignment with specific United Nations’ Sustainable Development Goals
– Thematic:
(the SDGs).Positions assessed to be in alignment with specific United Nations’ Sustainable Development Goals
(the SDGs).
– Impact: Positions assessed to be explicitly and intentionally contributing towards specific SDGs.
– Impact: Positions assessed to be explicitly and intentionally contributing towards specific SDGs.
The following table shows assets under management (AuM) according to their SIF classification and their year-over-
The
yearfollowing
change. table shows assets under management (AuM) according to their SIF classification and their year-over-
year change.
AuM classified according to the SIF (Credit Suisse AG)
AuM classified according to the SIF (Credit Suisse AG) For the year ended % change from
USD billion1 For the year ended31.12.22
31.12.23 % change from
31.12.22
USD billion
By SIF 1
category 2,3,4 31.12.23 31.12.22 31.12.22
By Exclusion
SIF category2,3,4 24.7 27.0 (9)
Exclusion
Integration 24.7
112.2 27.0
104.3 (9)
8
Integration
Thematic 112.2
10.0 104.3
9.9 8
1
Thematic
Impact 10.0
1.4 9.9
1.6 1
(11)
Impact
Total AuM classified according to SIF 1.4
148.3 1.6
142.9 (11)
4
Total AuM Thematic
of which classifiedand
according
Impact to SIF 148.3
11.5 142.9
11.6 4
(1)
of which
1 Numbers Thematic
include and Impact
AuM positions from managed solutions and structured products that have been classified according to the SIF. 211.5 11.6
The Credit Suisse AG (1)
Sustainability Classification
Committee
1 overseesAuM
Numbers include investment
positionsproduct classification
from managed and governs
solutions the Sustainable
and structured productsInvestment Framework
that have been foraccording
classified Credit Suisse AG.SIF. 3 In
to the 2 reporting
The Creditsent to Credit
Suisse Suisse clients,
AG Sustainability additional
Classification
instruments may be classified
Committee oversees investmentunder the SIF,
product such as single
classification securities.
and governs 4 In reporting
the Sustainable sent to Credit
Investment Suisse for
Framework clients, synonymous
Credit Suisse AG. terminology maysent
3 In reporting be used. “Exclusion”
to Credit is synonymously
Suisse clients, additional
referred to as “Avoid Harm”; “Integration” as “ESG Aware”; “Thematic” as “Sustainable Thematic” and “Impact” as “Impact Investing.”
instruments may be classified under the SIF, such as single securities. 4 In reporting sent to Credit Suisse clients, synonymous terminology may be used. “Exclusion” is synonymously
referred to as “Avoid Harm”; “Integration” as “ESG Aware”; “Thematic” as “Sustainable Thematic” and “Impact” as “Impact Investing.”

As of December 31st, the AuM according to the SIF (Exclusion, Integration, Thematic, or Impact) reached 148.3
As of December
billion, 31st,athe
representing AuM according
year-on-year to the
increase of SIF
4%.(Exclusion,
SignificantIntegration,
drivers of Thematic, or Impact)
the increase reachedmarket
were positive 148.3
billion, representing a year-on-year increase of 4%. Significant drivers of the increase were positive
conditions and foreign exchange movement, new product classifications according to SIF, and flows into new market
conditions
products. and foreign exchange movement, new product classifications according to SIF, and flows into new
products.

Sustainability Report 2023 | Appendix 3 | Entity-specific disclosures for Credit Suisse AG 124
Sustainability Report 2023 | Appendix 3 | Entity-specific disclosures for Credit Suisse AG 124
Managing sustainability and climate risk at Credit Suisse
Managing sustainability and climate risk at Credit Suisse
Credit Suisse’s approach to the management of sustainability and climate risk consists of four phases, (1) risk
Credit Suisse’s(2)
identification, approach
monitoring,to the(3) management
management, of and sustainability
(4) reporting. andThis climate
approachrisk has
consists
been of four phases,
further (1) risk
operationalized
identification, (2) monitoring, (3) management, and (4) reporting. This
through a dedicated climate risk strategy program, launched in 2020. Since its inception, this program hasapproach has been further operationalized
through
underpinned a dedicated climate expansion
the progressive risk strategy of program, launched inand
policies, frameworks 2020. Since itstoinception,
capabilities manage the this transition
program and has
underpinned the progressive
physical risks arising expansion
from a changing of policies,
climate. In 2023,frameworks
the programand capabilities
continued to manage
to deliver the transition
on different fronts: at and
the
physical risks arising from a changing climate. In 2023, the program continued
Credit Suisse Group level (prior to the acquisition by UBS Group), key developments included the enhancement to deliver on different fronts: at theof
Credit Suisse Group
data analytics level (priorcapabilities
and quantitative to the acquisition
to integrateby UBS Group),
climate riskkey
intodevelopments
risk management included
models; the inenhancement
parallel, Creditof
data analytics and quantitative capabilities to integrate climate risk into risk management
Suisse continued to work on embedding sustainability and climate risk considerations into its legal entities’ policies models; in parallel, Credit
Suisse continued to
and frameworks, work on
refining embedding
Credit sustainability
Suisse Group’s and climate
frameworks risk considerations
to reflect specific local into its legalprovisions.
regulatory entities’ policies
These
and frameworks, refining Credit Suisse Group’s frameworks to reflect specific
activities were underpinned by an increased focus on regulatory monitoring to ensure alignment with emerging local regulatory provisions. These
activities were underpinned by an increased focus on regulatory monitoring
legislative requirements across different locations, while continuing to inform business strategy and risk to ensure alignment with emerging
legislative
management requirements
decisions. across different locations, while continuing to inform business strategy and risk
management decisions.
Client Energy Transition Framework (CETF)
Client Energy Transition Framework (CETF)
Launched in 2020 and progressively expanded over time as part of Credit Suisse’s climate risk strategy program,
Launched
the CETF has in 2020beenand partprogressively expanded
of Credit Suisse’s over time as part
risk management of Credit
practices aimed Suisse’s climate risk
at addressing thestrategy
diverse program,
risks that
the CETF has been part of Credit Suisse’s risk management practices
could arise from its business activities, in line with legal and regulatory obligations. The underlying aimed at addressing the diverse risks that
methodology
could arise from its business activities, in line with legal and regulatory obligations.
categorizes clients operating in eight priority sectors, according to the clients’ energy transition readiness. They The underlying methodology
categorizes
include oil and clients
gas, operating
coal mining, in power
eight priority
generation sectors, according to the
(fossil-fuel-related), clients’ aviation,
shipping, energy transition
commodity readiness. They
trade finance
include oil and gas, coal
(fossil-fuel-related), mining, power
petrochemicals, andgeneration
agriculture. (fossil-fuel-related), shipping, aviation, commodity trade finance
(fossil-fuel-related), petrochemicals, and agriculture.
Internal criteria have been applied by the Credit Suisse Sustainability & Climate Risk (SCR) team to define in-scope
Internal
clients and criteria have been
to assess applied
their level by the Credit
of readiness for aSuisse Sustainability
low-carbon & Climate
transition, Risk (SCR)
leveraging team tokey
quantitative define in-scope
performance
clients and to assess their level of readiness for a low-carbon transition, leveraging
indicators, third-party ratings, and qualitative assessments based on climate-related questions. Clients active in the quantitative key performance
indicators,
priority sectors third-party
have been ratings, and qualitative
assigned to one of five assessments
categoriesbased on climate-related
of transition questions.
readiness, spanning Clients active
“unaware,” in the
“aware,”
priority sectors
“strategic,” have been
“aligned” andassigned
“green”.toThis oneapproach
of five categories
has enabledof transition
Credit Suisse readiness,
staff tospanning
engage in “unaware,” “aware,”
critical sustainability
“strategic,” “aligned” and “green”. This approach has enabled Credit Suisse staff
discussions with clients, opening the door to financing potential solutions that can contribute toward a low-carbon to engage in critical sustainability
discussions
transition, as with
wellclients, opening
as to further the door of
expansion to our
financing
services. potential
Under thesolutions that can
framework, contribute
Credit Suisse toward
would not a low-carbon
engage in
transition, as well as to further expansion of our services. Under the framework, Credit
new lending or advisory activities with clients having the lowest level categorization in terms of transition readiness. Suisse would not engage in
new lending or advisory activities with clients having the lowest level categorization in terms of transition readiness.
Until the decommission of the CETF at the end of 2023, Credit Suisse continued to leverage the framework to
Until
engage thewith
decommission of the CETFtheir
clients to understand at the end of to
approach 2023, Credit Suisse
managing continued
environmental andto social
leverage theasframework
risks, well as theirto
engage
transitionwith clients to understand their approach to managing environmental and social risks, as well as their
strategy.
transition strategy.
Climate risk materiality assessment
Climate risk materiality assessment
During 2023, Credit Suisse continued to leverage the climate-related materiality matrix that was developed as part
During
of its Risk2023, Credit Suisse
Identification andcontinued
Assessment to Framework
leverage the(RIAF). climate-related
This matrix materiality
classifies matrix that was risks
climate-related developed as part
by looking at
of its potential
their Risk Identification
financial andand non-financial
Assessment Framework
impacts, providing(RIAF). This
an matrix
indication classifies
of how climate-related
they might affect risks by
thelooking
business.at
their potential financial and non-financial impacts, providing an indication of how
Risk prioritization depends on severity and probability. The financial and non-financial materiality assessments taken they might affect the business.
Risk prioritization
together can provide depends
a moreon severity and probability.
comprehensive The financial
understanding of theand risknon-financial
being considered materiality
and can assessments taken
help to inform
together can provide a more comprehensive understanding of the risk being
decision-making. The chart below shows Credit Suisse’s materiality matrix for assessing potential financial and non-considered and can help to inform
decision-making.
financial impacts of Theclimate-related
chart below shows risks. Credit Suisse’s materiality matrix for assessing potential financial and non-
financial impacts of climate-related risks.
Specific thresholds were defined to assess the potential impacts of climate-related risks on financial items such as
Specific
profit and thresholds
loss (P&L), were defined
leverage to assess
ratio, or balancethe potential
sheet. Based impacts of climate-related
on such thresholds, four risks
mainonimpact
financial items such
categories as
were
profit and loss (P&L), leverage ratio,
identified: minor, moderate, significant, and major. or balance sheet. Based on such thresholds, four main impact categories were
identified: minor, moderate, significant, and major.

Sustainability Report 2023 | Appendix 3 | Entity-specific disclosures for Credit Suisse AG 125
Sustainability Report 2023 | Appendix 3 | Entity-specific disclosures for Credit Suisse AG 125
The assessment also includes potential non-financial considerations, including:
The assessment also includes potential non-financial considerations, including:
– regulatory impacts;
– regulatory impacts;
– impact on clients;
– impact on clients;
– impact on reputation; and
– impact on reputation; and
– impact on market and competition.
– impact on market and competition.
The combination of impacts (both financial and non-financial) and likelihood (remote or possible) determines
The combination
whether of impacts
the materiality (both
of a risk financial
should and non-financial)
be categorized and likelihood
as low, medium, high, or(remote or possible)
very high. determines
The heatmap that is
whether
generatedthe materiality
following this of a risk should
approach enablesbeCredit
categorized asidentify
Suisse to low, medium, high,
critical risk or very high.
exposures The for
and areas heatmap that is
prioritization
generated following
or mitigation. this approach enables Credit Suisse to identify critical risk exposures and areas for prioritization
or mitigation.
During 2024, Credit Suisse’s approach to assessing climate risk materiality will be reviewed, with the aim of applying
During 2024,approach
a consistent Credit Suisse’s
acrossapproach to assessing climate risk materiality will be reviewed, with the aim of applying
the UBS Group.
a consistent approach across the UBS Group.
Assessing climate-risk materiality

Categories for financial impact assessment Categories for non-financial impact assessment
P&L Regulatory impact
Leverage ratio Impact on clients
Risk-weighted assets Impact on marked and competition
Balance sheet Reputational impact

Financial and non-financial materiality

Major High materiaity Very high materiality

impact

Significant High materiality

impact

Moderate Medium materiality

impact

Minor Low materiality

impact
Likelihood
Remote Possible
(event occurs in exceptional (occurs within 10 years)
situations, e.g. beyond 10 years)

Climate-related risk methodologies and scenarios

Climate-related risk methodologies and scenarios
Following an approach similar to UBS’s, Credit Suisse has been assessing potential manifestations of climate-related
Following
risks acrossanother
approach similar to UBS’s,
risk categories such asCredit Suisse
market/ has been
liquidity risk,assessing potential
credit risk, businessmanifestations
risk, pension of climate-related
risk, reputational
risks across other risk categories such as market/ liquidity risk, credit risk, business risk,
risk, and non-financial risk. This approach considered the most likely time horizon for climate-related 1 pension risk, reputational
risk to
risk, and non-financial risk. This approach considered the most likely time horizon 1 for climate-related risk to
materialize across these risk categories and assessed possible impacts against the short, medium and long term. For
materialize across theserisks
instance, non-financial risk categories and assessed
are more likely possible
to manifest in theimpacts
medium against
term,the short,
while medium
business andare
risks long term. For
expected to
instance, non-financial risks are more likely to manifest in the medium term, while business
manifest in the short term. The approach followed the overall RIAF, described above. In 2023 the RIAF assessment risks are expected to
manifest in the short term. The approach followed the overall RIAF, described above. In 2023
was refreshed at Group level and for specific locations, and, where appropriate, jurisdiction-specific amendments the RIAF assessment
was
wererefreshed
applied toatthe
Group level andThe
framework. forresults
specificoflocations, and, where
the assessment appropriate,
are shown jurisdiction-specific
in the following chart. amendments
were applied to the framework. The results of the assessment are shown in the following chart.

1 Time horizons have been defined consistently with the ones mentioned in the Explanatory Report to the Ordinance on Climate Disclosures issued by the Swiss
Federal Council on
1 Time horizons November
have 23, 2022:
been defined consistently with the ones mentioned in the Explanatory Report to the Ordinance on Climate Disclosures issued by the Swiss
– short term
Federal is 1–5
Council years
on November 23, 2022:
medium
– short term
term is 6–15
is 1–5 yearsyears
– long
mediumtermterm
is 16–30 years
is 6–15 years
– long term is 16–30 years

Sustainability Report 2023 | Appendix 3 | Entity-specific disclosures for Credit Suisse AG 126
Sustainability Report 2023 | Appendix 3 | Entity-specific disclosures for Credit Suisse AG 126
Risk identification and assessment framework

Liquidity risk
(Medium term)

Market risk - concentration Business risk

Co
to r r e v i e w s
(Medium term) (Short term)

un
Reputational

t r y re v i e w
risk
Non financial risk (Short term) Credit risk

Sec
(Medium term) (Medium term)

s
Low risk Pension risk
Medium risk (Medium term)
High risk

In 2023, Credit Suisse continued to work on the integration of climate-related risk into credit risk across all stages
In
of 2023, Credit Suissecycle,
the transaction continuedfrom toloanworkorigination
on the integration
processes of climate-related risk into credit
to ongoing monitoring risk across all stages
of counterparties. Key
of the transaction cycle,
developments included the following: from loan origination processes to ongoing monitoring of counterparties. Key
developments included the following:
– Roll out of Credit Suisse’s ESG Risk Assessment tool to EBA- and PRA-regulated booking entities. The tool was
– Roll outdeveloped
initially of Credit Suisse’s
and pilot ESG Risk Assessment
tested tool to EBA-
in 2022, enhancing and processes
internal PRA-regulated bookingtogether
by bringing entities.different
The tool ESG
was
initially developed and pilot tested in 2022, enhancing internal processes by bringing
frameworks, and highlighting key ESG risks and mitigants. The aim of the tool was to enable a more informed together different ESG
frameworks,
assessment ofand highlighting
potential key ESG risks
climate-related and on
impacts mitigants. The aim of the
the creditworthiness oftool was to enable a more informed
clients.
assessment of potential climate-related impacts on the creditworthiness of clients.
– Expansion of Credit Suisse’s Single Name Analysis. The assessment started in response to the UK Prudential
– Expansion
Regulation of Credit Suisse’s
Authority’s SingleStatement
Supervisory Name Analysis.
(SS3/19),Theandassessment
in 2023 was started in response
expanded to includeto the UK Prudential
additional entities
Regulation
and branches such as Singapore, Hong Kong, Australia, Luxembourg, Brazil, and CS Deutschland. Theentities
Authority’s Supervisory Statement (SS3/19), and in 2023 was expanded to include additional aim of
and branchesis such
the analysis as Singapore,
to identify Hongare
clients that Kong, Australia,exposed
significantly Luxembourg, Brazil, and CS
to climate-related Deutschland.
risk. The aim of
For each counterparty
the
underanalysis is to identify
the analysis, transition clients
and that are risk
physical significantly
materialityexposed to climate-related
was determined through risk. For each
a transition riskcounterparty
assessment
under the analysis, transition and physical risk materiality was determined through
as well as physical risk assessment, leveraging information from several data sources, including MSCI a transition risk assessment
Low-
as well as physical risk assessment, leveraging information from several data sources,
Carbon Transition (LCT) scores and data from the CDP. Sustainability reports and other qualitative information including MSCI Low-
Carbon Transition (LCT) scores and data from the CDP. Sustainability
were also considered (emissions reduction initiatives, risk framework and governance, etc.). reports and other qualitative information
were also considered (emissions reduction initiatives, risk framework and governance, etc.).
Scenario analysis
Scenario analysis
At Credit Suisse, scenario-based approaches have been deployed to assess transition and physical risk, allowing the
At Credit Suisse,
organization scenario-based
to monitor approaches
its resilience have
and its been deployed
alignment to assess
with climate transition andFor
commitments. physical risk, allowing
example, the
this analysis
organization to monitor of
included an assessment its the
resilience andofitscritical
resilience alignment withacross
activities climate commitments.
different locations,For andexample,
the firm’s thisability
analysis
to
included an assessment of the resilience of critical activities across different locations,
continue delivering critical services. Following evolving regulatory requirements and the expansion of internal and the firm’s ability to
continue delivering critical services. Following evolving regulatory requirements
methodologies, the scope of Credit Suisse’s scenario-based analysis in 2023 was extended to include new and the expansion of internal
methodologies,
jurisdictions and the legalscope of Credit
entities. Suisse’s table
The following scenario-based
summarizes analysis in 2023analysis
the scenario was extended
conducted to ininclude
2023, new
and
jurisdictions and
associated results. legal entities. The following table summarizes the scenario analysis conducted in 2023, and
associated results.

Sustainability Report 2023 | Appendix 3 | Entity-specific disclosures for Credit Suisse AG 127
Sustainability Report 2023 | Appendix 3 | Entity-specific disclosures for Credit Suisse AG 127
Test/model Purpose and Approach Results
Test/model Purpose
scope and Approach Results
scope
Stress test for Assessment of The model generates instantaneous price shocks for shares, bonds and The analysis performed in 2023
share-backed
Stress test for transition
Assessment riskoffor equity
The and generates
model fixed income mutual funds.
instantaneous priceTheshocks
shocks forrepresent a climate-
shares, bonds and highlighted
The analysis that Credit Suisse’s
performed in 2023
lending
share-backed the Lombard
transition risk for driven and
equity “Minsky
fixedmoment” scenario
income mutual (i.e.,The
funds. a scenario
shocks characterized by a
represent a climate- Lombard
highlightedand Securities-Based
that Credit Suisse’sLending
portfolio
lending and share-
the Lombard sudden“Minsky
driven collapsemoment”
in asset prices). Under
scenario (i.e.,this scenario,
a scenario following by a
characterized portfolio
Lombard hasandlow transition risk,Lending
Securities-Based due to
portfolio backed lending
and share- unforeseen
sudden announcements
collapse of strict
in asset prices). Under climate policies –following
this scenario, such as punitive limited
portfolioexposure
has low to assets that
transition risk,have
due to
collateral
backed lending carbon taxesannouncements
unforeseen – market participants
of strictre-price
climateexpected
policies –future cash
such as flows
punitive high transition
limited exposurerisk
toand conservative
assets that have
portfolio
collateral within for traditional
carbon taxes –and green
market businessesre-price
participants in light expected
of the realization thatflows
future cash the collateral haircuts
high transition riskacross the portfolio.
and conservative
the Creditwithin
portfolio Suisse world
for is aboutand
traditional to experience a rapid in
green businesses and disorderly
light transition to
of the realization thata low-
the collateral haircuts across the portfolio.
Group
the Credit Suisse carboniseconomy.
world about to experience a rapid and disorderly transition to a low-
Group carbon economy.
The analysis relies on two primary datasets:
The analysis
– MSCI LCT relies
Scoreon two primary
dataset at issuerdatasets:
level, which measures companies’
– exposure
MSCI LCTto, anddataset
Score management of,level,
at issuer riskswhich
and opportunities related to
measures companies’
the low-carbon
exposure to, andtransition
management of, risks and opportunities related to
the low-carbon
– Network transition
of Central Banks and Supervisors for Greening the Financial
– System
Network(NGFS) Disorderly-transition
of Central scenario
Banks and Supervisors for Greening the Financial
System (NGFS) Disorderly-transition scenario
Equity and Assessment of This concentration analysis framework shocks equity spot prices and The equity analysis showed that
credit
Equity market
and equity and credit
Assessment of credit spreads on a analysis
This concentration monthlyframework
basis to evaluate
shocks the impact
equity spotofprices
sudden
and exposure
The equitytoanalysis
risky companies
showed that is generally
concentration
credit market concentration
equity and credit market moves on
credit spreads across all Credit
a monthly Suisse
basis legal entities.
to evaluate Positions
the impact with the
of sudden moderate
exposure to and kept
risky well within
companies internal
is generally
analysis
concentration risk across all
concentration largest
market loss profile
moves areall
across identified, representing
Credit Suisse companies
legal entities. thatwith
Positions are the limits.
moderateThe andlargest
keptexposure
well withingenerally
internal
analysis Credit Suisse
risk across all significantly exposed
largest loss profile aretoidentified,
carbon transition risk. companies that are
representing comes fromlargest
limits. The derivative desksgenerally
exposure that are
legal
Creditentities
Suisse significantly
The analysis exposed
leveragestoMSCI
carbon
LCTtransition risk. rank companies between
scores, which required
comes from to reduce theirdesks
derivative risk, that
and are
so do
legal entities zero and tenleverages
The analysis based onMSCI the carbon intensity
LCT scores, of their
which rank products
companies and
between not stay in
required tothe books
reduce forrisk,
their a sustained
and so do
processes as well
zero and ten basedas on
thethe
policies
carbonand strategies
intensity in place
of their to help
products mitigate
and period.
not stayFor credit,
in the thefor
books level of risk to
a sustained
the transition
processes risk as
as well to the
a low carbon
policies intensity
and business
strategies model.
in place Companies
to help mitigate companies
period. For withcredit,high
thecarbon
level ofintensity
risk to is
with business risk
the transition thattois aprimarily dependent
low carbon intensityonbusiness
fossil fuels are at
model. the lower
Companies moderate,
companies with with the
highhighest
carbonexposures
intensity is
end
withof the LCTthat
business score spectrumdependent
is primarily and are seen
on as most
fossil likely
fuels aretoatwitness
the lower generally
moderate,having with themoderate
highestestimated
exposures
asset
end ofstranding as thespectrum
the LCT score world evolves to lower
and are seen ascarbon alternatives.
most likely to witness losses.
generallyGiven
having the moderate
moderate estimated
risks
asset stranding as the world evolves to lower carbon alternatives. assessed,
losses. Given remediation actionrisks
the moderate was not
warranted.
assessed, remediation action was not
warranted.
Flooding risk Scenario-based The model simulates multiple future heavy-rainfall events over the The analysis performed showed that the
simulation
Flooding risk simulation
Scenario-based selected
The model areas, specifying
simulates peakfuture
multiple intensity and geographical
heavy-rainfall extent.
events over theThe materiality
The analysisofperformed
flooding risk for the
showed realthe
that
simulation model to assess
simulation simulation is run
selected areas, on a dailypeak
specifying frequency forand
intensity thegeographical
lifetime of theextent.
relevant
The estate collateral
materiality portfolio
of flooding riskinfor
scope is
the real
surface
model to water
assess mortgage
simulation books.
is run onThea property level results
daily frequency for thearelifetime
generated byrelevant
of the low,
estateand the potential
collateral forincredit
portfolio scopelosses
is
(pluvial) flooding
surface water considering
mortgage books.the impact of flooding
The property levelevents
resultsbetween a chosen
are generated by reference is limited,
low, and the even under conservative
potential for credit losses
risk for Credit
(pluvial) flooding date and thethe
considering expiry dateofofflooding
impact each corresponding
events between loan. Floods are
a chosen reference assumptions
is limited, even onunder
the level of flood
conservative
Suisse
risk for(UK) Ltd,
Credit assumed
date and tothehave a negative
expiry impact
date of each on property loan.
corresponding value,Floods
with successive
are losses. Consequently,
assumptions no of
on the level remediation
flood
as well(UK)
Suisse as CSLtd, floods
assumed compounding the effect,
to have a negative andon
impact hence impact
property the with
value, collateral value
successive actions were deemed necessary.
losses. Consequently, no remediation
Luxembourg
as well as CS and of the mortgage
floods compounding book.theThe model
effect, andaggregates
hence impact property-level impacts
the collateral value actions were deemed necessary.
Singapore.
Luxembourg and from
of theflooding
mortgage into portfolio-level
book. The modelmetrics such property-level
aggregates as total collateral
impacts
Singapore. devaluation
from flooding and aggregate
into credit metrics
portfolio-level shortfall.
such as total collateral
devaluation
The analysis and aggregate
leverages credit shortfall.
the assumptions in the Climate Biennial
Exploratory
The analysisScenario
leverages(CBES) defined by the
the assumptions Bank
in the of England.
Climate Biennial
Exploratory Scenario (CBES) defined by the Bank of England.
Non-financial Assessment of Dynamic monitoring of climate-related physical and transition Risk analyses were performed across
risk analysis
Non-financial climate-related
Assessment of operational vulnerabilities
Dynamic monitoring and dependencies,
of climate-related physicalasand
identified within the
transition different locations
Risk analyses were combining
performed across
(NFR)
risk analysis physical and
climate-related Group-wide risk taxonomy.and
operational vulnerabilities Thedependencies,
analysis allowsasfor the identification
identified within theof quantitative inputs combining
different locations (from climate risk
(NFR) transition
physical and concentrations
Group-wide riskoftaxonomy.
high-valueThe assets and critical
analysis allows business processes of
for the identification identification, dashboards,
quantitative inputs (from climateand scenario
risk
operational
transition risks across geographies
concentrations and determines
of high-value risk ratings
assets and with respect
critical business to business
processes analysis) and qualitative
identification, dashboards, riskand scenario
for major offices
operational risks continuity, impacts on
across geographies andphysical infrastructure,
determines risk ratingsand
with litigation
respect risks. This
to business assessments
analysis) and from local subject-matter
qualitative risk
and data centres
for major offices includes risks
continuity, from damage
impacts on physicalto Credit Suisse premises,
infrastructure, business
and litigation risks. This experts The overall
assessments assessment
from local subject-matter
globally
and data centres disruption, system
includes risks from failures,
damagevendor failures,
to Credit Suisseand litigation
premises, risks. This
business considered
experts Theexisting monitoring and
overall assessment
globally approach
disruption,was developed
system failures,tovendor
support the Group
failures, and and legal risks.
litigation entityThis
climate escalation
consideredprocesses, along withand
existing monitoring past
Risk Identification
approach and Assessment
was developed to supportFrameworks
the Group and(RIAFs),legalasentity
well as to
climate experience and emerging
escalation processes, alongtrends with
with past
address applicableand
Risk Identification regulatory requirements.
Assessment Frameworks (RIAFs), as well as to regard to the
experience anddifferent
emerging risks considered.
trends with
address
The applicable
analysis regulatory
relies on requirements.
inputs from climate risk identification, dashboards An overall
regard “Medium
to the differentrisk”
risks considered.
and idiosyncratic
The analysis relies(operational risk)climate
on inputs from scenario analysis,
risk combined
identification, with
dashboards categorization was assigned,
An overall “Medium risk” reflecting
qualitative risk assessments
and idiosyncratic from
(operational risk)local subject-matter
scenario experts towith
analysis, combined the challenges was
categorization posed by the rapidly
assigned, reflecting
determine
qualitative risk ratings with respect
assessments from local to business continuity
subject-matter and to
experts litigation evolving regulatory
the challenges posedlandscape, the
by the rapidly
risks.
determine risk ratings with respect to business continuity and litigation growing potential for
evolving regulatory business the
landscape,
risks. disruptions due to for
growing potential climate-related
business
events, and due
disruptions the potential for
to climate-related
reputational
events, and theimpacts at a local
potential for level.
reputational impacts at a local level.

During 2024, Credit Suisse’s approach to scenario analysis will be reviewed, with the aim of applying a consistent
During 2024,
approach Credit
across Suisse’s
the UBS approach
Group to scenario
and enabling analysisassessment
a coherent will be reviewed,
of risks with the
across aim
the of applying
combined a consistent
portfolio.
approach across the UBS Group and enabling a coherent assessment of risks across the combined portfolio.

Sustainability Report 2023 | Appendix 3 | Entity-specific disclosures for Credit Suisse AG 128
Sustainability Report 2023 | Appendix 3 | Entity-specific disclosures for Credit Suisse AG 128
Risk reporting and disclosure
Risk reporting and disclosure
With an internal reporting cycle similar to that of UBS, the Credit Suisse SCR team continued to issue its quarterly
With an climate
internal internalrisk
reporting
report cycle similar
in 2023, to thatportfolio
showing of UBS, movements
the Credit Suisse SCR team continued
and performance to issue
across Credit its quarterly
Suisse’s climate
internal climate risk report in 2023, showing portfolio movements and performance across
risk metrics. This quarterly report included divisional and legal entity breakdowns, as well as an update on climate- Credit Suisse’s climate
risk metrics. This quarterly report included divisional and legal entity breakdowns, as well
related policy and major regulatory developments. Different Group Functions and divisional teams were involved in as an update on climate-
related policy
the review and and major regulatory
approval process fordevelopments. Differentfollowed
the quarterly reports, Group Functions
by a wider and divisional teams
distribution acrosswere involved
the central in
Risk
the review and approval process for the quarterly reports, followed by a wider distribution
function, as well as Credit Suisse’s Executive Board members. In addition, Executive Board members received an across the central Risk
function,
overview of as high-
well asand Credit Suisse’s Executive Board
medium-sustainability-risk members.through
transactions In addition, Executive
the monthly Board
Group members
Risk Report. received an
overview of high- and medium-sustainability-risk transactions through the monthly Group Risk Report.
MAS Guidelines on Environmental Risk Management for Banks (ERM) – implementation for Asset
MAS Guidelines
Management on Environmental
(Credit Risk Management
Suisse) and Investment Management for Banks
(Credit(ERM) – implementation for Asset
Suisse)
Management (Credit Suisse) and Investment Management (Credit Suisse)
Credit Suisse’s SG Capital Allocation and Risk Management Committee (SG CARMC) is designated to oversee
Credit Suisse’s risk
environmental SG Capital
matters Allocation
across Creditand Suisse’s
Risk Management Committee
Singapore entities with(SGan CARMC)
escalationis path
designated
to the to oversee
Singapore
environmental risk matters across Credit Suisse’s Singapore entities with an
Management Committee and the board of directors of CS (Singapore) Limited. SG CARMC had representation escalation path to the Singapore
Management Committee
from all businesses and Asset
including the board of directors
Management (AM) of and
CS (Singapore)
Investment Limited.
ManagementSG CARMC had representation
(IM). Business governance
from all businesses including Asset Management (AM) and Investment
committees (AM APAC RMC/ IM APAC IRC) were responsible for the business oversight of the AM/IM Management (IM). Business governance
ERM
committees and
Framework (AMescalation
APAC RMC/ IM APACenvironmental
of significant IRC) were responsible forSG
risk issues to theCARMC.
business oversight of the AM/IM ERM
Framework and escalation of significant environmental risk issues to SG CARMC.
AM/IM implemented an ERM Framework to embed environmental risk considerations in the portfolio construction
AM/IM
process implemented
where the risk anisERM Framework
assessed to be to embed The
material. environmental
ERM Frameworkrisk considerations
leverages MSCI in the
ESGportfolio
data andconstruction
defines a
process
materiality trigger point on the exposure to environmental laggards at portfolio level. Where the exposuredefines
where the risk is assessed to be material. The ERM Framework leverages MSCI ESG data and exceeds a
materiality trigger point on the exposure to environmental laggards at portfolio level. Where
the trigger point, the portfolio managers consider what actions would be necessary to address the exposure. As of the exposure exceeds
the
end trigger
2023, nopoint, the portfolio
portfolios were atmanagers
or aboveconsider whattrigger
the defined actions would be necessary to address the exposure. As of
point.
end 2023, no portfolios were at or above the defined trigger point.
In light of the integration of Credit Suisse by UBS, legacy Credit Suisse discretionary portfolios will start to follow
In lightenvironmental
UBS’s of the integration of Credit Suisse
risk management by UBS, legacy
methodology Credit Suisse discretionary portfolios will start to follow
in 2024.
UBS’s environmental risk management methodology in 2024.

Sustainability Report 2023 | Appendix 3 | Entity-specific disclosures for Credit Suisse AG 129
Sustainability Report 2023 | Appendix 3 | Entity-specific disclosures for Credit Suisse AG 129
Appendix 4 – Other supplemental information
Information on non-financial disclosures

Risk evaluation
Pursuant to the requirements of the Swiss Code of Obligations Art. 964b and of the German law implementing EU
directive 2014/95 on non-financial disclosures (CSR-Richtlinie-Umsetzungsgesetz, or CSR-RUG), 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. These goals include our ambitions for environmental sustainability
in our operations, including carbon emissions, in the business we do with clients and in products that we offer.
They also include goals or aspirations for diversity in our workforce and supply chain, and support for the United
Nations Sustainable Development Goals. 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, US 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.

Sustainability Report 2023 | Appendix 4 | Other supplemental information 130

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.
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 (GEB), as well as certain other employees. UBS will
also be required to introduce 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 2023 for
more information

Sustainability Report 2023 | Appendix 4 | Other supplemental information 131

Non-financial disclosures pursuant to the German law implementing EU directive 2014/95 (CSR-RUG)
and Swiss Code of Obligations Art. 964b.
This report comprises the “non-financial” disclosures required for UBS Group AG, and its subsidiaries, including
UBS AG and Credit Suisse AG, under the Swiss Code of Obligations Art. 964b. It also comprises disclosures required
for UBS AG by the German law implementing EU directive 2014/95 (CSR-Richtlinie-Umsetzungsgesetz / CSR-RUG)
(nichtfinanzieller Konzernbericht) (the EU Non-Financial Reporting Directive). These disclosures can be found in the
sections and the pages indicated below. Due to the differing materiality requirements of the Global Reporting
Initiative (GRI) standards and of CSR-RUG and the Swiss Code of Obligations Art. 964b, the material topics listed
in the index are limited to the matters (“Belange”) addressed by CSR-RUG and 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 the Supplement to this report.
› Refer to the “Supplement to Managing sustainability and climate risks” section of the Supplement to the UBS
Group Sustainability Report 2023, 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”
› Refer to the “Information on management approaches for material topics” section of the Supplement to the UBS
Group Sustainability Report 2023, available at ubs.com/sustainability-reporting, for more information about how
we evaluate our management approaches

Section in Sustainability Report 2023 (SR 2023) Page(s)

About this report About this report SR 2023 / 5–7
(including
framework)
Description of the Our sustainability and impact strategy SR 2023 / 14
business model1 Our business model SR 2023 / 11–12
Material risks Risk evaluation SR 2023 / 130–131
Non-financial Section in Sustainability Report 2023 (SR 2023) Page(s)
aspects

Broad thematic The importance of sustainability and culture to UBS SR 2023 / 3–4
issues affecting all
non-financial aspects Governance SR 2023 / 17–20

Key policies and principles SR 2023 / 13

Supporting opportunities SR 2023 / 61–74

UBS Sustainability objectives and achievements 2023 SR 2023 / 14

and objectives 2024
Environmental and Our sustainability and impact strategy SR 2023 / 14–16
human rights matters
Supporting our strategy – our stakeholder engagement / vendors SR 2023 / 57

(Material topics: Managing our supply chain responsibly SR 2023 / 58–60

Climate and nature;
Social impact and Environment SR 2023 / 21–44
human rights; Our sustainability and climate risk policy framework SR 2023 / 76–99
Sustainable finance)
Driving social impact SR 2023 / 54–56

Respecting human rights SR 2023 / 57

Reducing our environmental impact SR 2023 / 38–41

Social and employee Our sustainability and impact strategy SR 2023 / 14–16
matters
People and culture make the difference SR 2023 / 45–53

(Employees)
Anti-corruption and Combating financial crime SR 2023 / 100–101
bribery matters

(Combating financial
crime as a subtopic
of Regulatory
compliance)
1 Further information on our business model can be found in the UBS Group Annual Report 2023 section ‘Our strategy, business model and environment’,
available at ubs.com/investors.

Sustainability Report 2023 | Appendix 4 | Other supplemental information 132

Information on UBS AG standalone and UBS Europe SE consolidated pursuant to Art. 8 of the
EU Taxonomy Regulation
The European Commission has set out the EU Taxonomy classification system through the adoption of the EU
Taxonomy Regulation1. Article 8 of that Regulation requires entities that are subject to the Non-financial Reporting
Directive2 (NFRD) to provide information to investors about the environmental performance of economic activities
associated with certain of their balance sheet and off-balance sheet exposures. Under this Regulation, UBS AG and
UBS Europe SE are required to provide information on taxonomy-eligible activities, and, starting from 2023, on
taxonomy-aligned activities, alongside other qualitative information, based on their prudential scope of
consolidation, which for UBS AG is on a standalone basis (i.e. excluding subsidiaries), and for UBS Europe SE is on
a consolidated basis. Taxonomy-eligible activities are activities identified as being in scope for technical screening
under the Regulation. Taxonomy-aligned activities represent the proportion of taxonomy-eligible activities that
satisfy the requirements in the Regulation, meaning that they contribute substantially to defined environmental
objectives, do not significantly harm any other environmental objectives, are carried out in compliance with certain
minimum safeguards, and comply with certain technical screening criteria.
These disclosures have been prepared based on the requirements applicable to credit institutions, which is the principal
business activity of both UBS AG at a standalone level and UBS Europe SE at a consolidated level. Under the Regulation,
credit institutions are required to report taxonomy Key Performance Indicators (KPIs) to demonstrate the extent to
which their activities relate to sustainable economic activities, as defined by the Regulation. The Green Asset Ratio
(GAR) is a KPI calculated as a percentage of EU taxonomy-aligned assets as a proportion of total covered assets,
whereby:
– the numerator is determined based on loans and advances, debt securities, equities and repossessed collateral,
where the counterparty or the issuer is subject to NFRD reporting and
– the denominator includes total covered assets, which represent total assets irrespective of whether the associated
counterparty or issuer is subject to NFRD reporting; the denominator excludes financial assets held for trading,
exposures to central banks, central governments and supranational issuers.
Credit institutions are required to calculate and disclose KPIs based upon the turnover KPIs and, separately, the
capital expenditure (CapEx) KPIs reported by counterparties and investees. Credit institutions are also required to
calculate and disclose turnover-based and CapEx-based KPIs for off-balance sheet exposures, including financial
guarantees issued but excluding loan commitments, and assets under management.
GAR KPI stock is calculated on period end exposures while GAR KPI flow is calculated for new exposures during the
reported period.
All pre-defined templates, as set out on the following pages, are presented twice, leveraging information published
by counterparties and investees on the proportion of their activities associated with environmentally sustainable
economic activities, based on their turnover and based on their CapEx.
Under the Regulation, there is no requirement to report comparative information when reporting EU Taxonomy
KPIs for 2023. Trading book KPIs and Fee and Commission KPIs are required to be reported from 1 January 2026.
Limitations in implementation of the European Commission Draft Commission Notice
In December 2023, the European Commission issued a Draft Commission Notice on the interpretation and
implementation of certain legal provisions of the Disclosures Delegated Act under Article 8 of the EU Taxonomy
Regulation (FAQs), which contains guidance on a number of aspects of the Regulation. These disclosures have been
prepared on a best-efforts basis after taking into consideration, to the extent it was practicable, the guidance
provided in the FAQs. Given the short lead time available for the implementation of these disclosures, the 2023
disclosures for UBS AG standalone and UBS Europe SE consolidated do not reflect the following aspects stipulated
by the draft FAQs:
– The Proportion of total new assets covered that is required by the GAR KPI flow template is not presented, as it
was not possible to identify new assets for the purpose of determining the flow for those assets that are not
subject to taxonomy-eligibility and -alignment assessment for the current reporting period, for example
derivatives.
– The template KPI off-balance sheet exposures – Stock is not replicated for the flow of off-balance sheet positions.

1 Delegated Act of EU Taxonomy Regulation 2020/852; Commission Delegated Regulation (EU) 2021/2178 supplementing Taxonomy Regulation; Commission
Delegated Regulation (EU) 2023/2486 supplementing Taxonomy Regulation and amending Disclosures Delegated Act
2 Directive 2014/95/EU

Sustainability Report 2023 | Appendix 4 | Other supplemental information 133

– The Nuclear and Fossil Gas templates have not been produced for off-balance sheet exposures and for the flow
of new assets.
With the ongoing implementation of the EU Taxonomy Regulation and the development of market practices, the
availability and quality of relevant information is expected to improve. This may affect the basis of preparation and
result in disclosures in future periods being refined.
Basis of preparation
In compliance with the Regulation, the assets of UBS AG standalone and UBS Europe SE consolidated presented in
the tables below have been determined based on IFRS Accounting Standards and attributed to the taxonomy-
eligible and taxonomy-aligned activities of relevant investees and counterparties. Where financial assets and
financial liabilities were presented net, based on the requirements of IAS 32 Financial Instruments: Presentation
under IFRS Accounting Standards, the effect of netting has been reversed in arriving at the disclosures presented
below.
Taxonomy-eligibility and taxonomy-alignment KPIs are required to be determined by financial institutions based on
the actual information sourced from counterparties and investees. More specifically, when the use of proceeds is
unknown, the taxonomy-eligibility and taxonomy-alignment KPIs presented below are determined based on the
turnover and CapEx-based KPIs of non-financial counterparties and investees, and any applicable KPIs of financial
counterparties and investees. Residential mortgages to households are assessed for taxonomy-alignment for the
Climate Change Mitigation objective based on the use of proceeds, with alignment being determined based on
available Energy Performance Certificates (EPCs) and physical risk.
Entities are required to provide disclosures on the environmental objectives Water and marine resources, Circular
economy, Pollution, and Biodiversity and ecosystems from 1 January 2024. Consequently, due to the lack of
availability of information directly reported by counterparties and investees in respect of their activities in the context
of these environmental objectives, disclosures in the tables below are provided for Climate change mitigation (CCM)
and Climate change adaptation (CCA) environmental objectives only. For residential mortgages to households
collateralized by residential immovable properties, which are considered taxonomy-eligible, the assessment of
taxonomy-alignment was limited to UK mortgages only, due to data availability.
Exposures to, and investments in, undertakings not subject to NFRD reporting are excluded from the taxonomy-
eligibility and taxonomy-alignment calculation and presented separately. Due to data limitations in assessing
taxonomy-eligibility and taxonomy-alignment, several judgments, assumptions and simplifications have been made.
More specifically:
– Counterparties and investees domiciled in the EU within certain industry groups, according to our judgment
exercised and supported by empirical evidence, are considered not to be within the scope of NFRD reporting
(e.g., hedge funds, collective investment schemes, special purpose vehicles etc.).
– Non-EU domiciled counterparties and investees are assumed to not be subject to NFRD reporting.
Due to limitations in data availability, the methodology for determining taxonomy-eligibility and taxonomy-
alignment as set out in the tables below has been developed on the basis of the following assumptions:
– In the most recent reporting period, non-financial counterparties reported no disaggregation of taxonomy-
eligibility per environmental objective. As a consequence, no information has been reported in the tables below
in respect of these counterparties, on taxonomy-eligibility for each environmental objective, with the entire
amount related to taxonomy-eligible activities attributed to the Total (CCM+CCA) column.
– Only from 1 January 2023 were financial institutions required to report taxonomy-alignment, hence their
reported taxonomy-related information that forms the basis of the disclosures did not include taxonomy-
alignment KPIs, and correspondingly, the taxonomy-alignment assigned to these counterparties in the tables
below is zero; when financial counterparties in their publicly available disclosures reported only one KPI, without
specifying whether that reported KPI is a turnover-based or a CapEx-based measure, it is assumed to be a
turnover-based KPI.

Sustainability Report 2023 | Appendix 4 | Other supplemental information 134

– In respect of the exposures to insurance and reinsurance undertakings that provide both life and non-life services,
determination of the turnover-based and CapEx-based KPIs was based on the actual proportion of revenues
attributable to life and non-life services publicly reported by these insurance and reinsurance undertakings, unless
the information about the proportion of revenues was not available, in which case equal weighting was applied
to each of these services.
– In the absence of actual more detailed information about the use of proceeds, including in respect of
environmentally sustainable bonds, the assessment of the taxonomy-eligibility and taxonomy-alignment has been
performed at the issuer level.
– For securities-financing transactions transacted through central clearing houses, the counterparty subject to
taxonomy-assessment is considered to be the central clearing house.
– Cash positions included within assets under management have been excluded from the taxonomy-eligibility and
taxonomy-alignment assessment (i.e. excluded from the numerator).
Economic activities in the fossil gas and nuclear energy sectors are required to be reported in separate templates.
UBS AG standalone and UBS Europe SE consolidated have not produced these templates for the year ended
31 December 2023 as the gross carrying amounts of their exposures to these sectors were in total USD 0.2bn for
UBS AG standalone, and USD 0.1bn for UBS Europe SE consolidated, which is considered immaterial to these
entities’ operations.

Art. 8 of the EU Taxonomy Regulation - Summary of Key Performance Indicators (KPIs) for
UBS AG standalone and UBS Europe SE consolidated
UBS AG standalone UBS Europe SE consolidated
31.12.23 31.12.23
Main KPI Additional KPIs Main KPI Additional KPIs
Financial Assets under Financial Assets under
GAR stock GAR flow guarantees management GAR stock GAR flow guarantees management
Total environmentally sustainable
assets - turnover based (USD m) 98 1 0 203 0 0 0 723
Total environmentally sustainable
assets - capex based (USD m) 98 1 0 464 0 0 0 1,786
Turnover KPI (%) 0.0% 0.0% 0.0% 1.5% 0.0% 0.0% 0.0% 2.1%
CapEx KPI (%) 0.0% 0.0% 0.0% 3.4% 0.0% 0.0% 0.0% 5.2%
Coverage over total assets (%) 69.9% 1.4% 65.1% 12.2%
Assets excluded from the numerator
of the GAR (%)1 65.9% 52.8%
Assets excluded from the denominator
of the GAR (%)2 30.1% 34.9%
1 Article 7(2) and (3) and Section 1.1.2. of Annex V of the Disclosures Delegated Act. 2 Article 7(1) and Section 1.2.4 of Annex V of the Disclosures Delegated Act.

UBS AG standalone and UBS Europe SE consolidated contribute 31.5% to the total assets of the UBS Group AG
consolidated scope under IFRS. UBS AG standalone and UBS Europe SE consolidated have low KPIs for balance
sheet stock and flow, and off-balance sheet financial guarantees because:
- a significant proportion of the business, and, correspondingly, the total assets of both entities, is outside
the scope of EU taxonomy, i.e. it is transacted with counterparties and investees that are not subject to
NFRD reporting, for example, because they are not domiciled in the EU or due to the nature of their
underlying business activity, such as Global Wealth Management Lombard lending to private individuals;
- UBS AG standalone and UBS Europe SE consolidated include a significant amount of Group Treasury and
Investment Bank activities in their scopes. Most assets in these activities are within categories that are
excluded from taxonomy-eligibility and taxonomy-alignment assessments (e.g., derivatives, trading assets,
etc.); and
- for the remaining assets that are included in the taxonomy-eligibility and taxonomy-alignment assessments,
the vast majority of the counterparties are financial institutions that have not been required to publish
alignment KPIs for 2022, and hence UBS´s 2023 year-end taxonomy-alignment KPIs for counterparties in
the financial sector are reported as zero.
Business strategy
Business strategy, product design and client engagement efforts will also be considered further in future years in
line with regulatory requirements and other considerations, as sustainable finance markets continue to develop.

Sustainability Report 2023 | Appendix 4 | Other supplemental information 135

1 UBS AG standalone1
1.1 UBS AG standalone - assets for the calculation of the GAR (Turnover)
31.12.23
Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Total (CCM + CCA)
of which towards taxonomy relevant sectors of which towards taxonomy relevant sectors of which towards taxonomy relevant sectors
(Taxonomy-eligible) (Taxonomy-eligible) (Taxonomy-eligible)
of which environmentally sustainable of which environmentally sustainable of which environmentally sustainable
(Taxonomy-aligned) (Taxonomy-aligned) (Taxonomy-aligned)
Total gross of which of which of which
carrying use of of which of which use of of which use of of which of which
USD m amount proceeds transitional enabling proceeds enabling proceeds transitional enabling
GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity instruments not held-for-trading
eligible for GAR calculation 27,357 2,074 98 98 0 0 3,253 98 98 0 0
Financial undertakings 9,113 0 0 1,179 0 0
Credit institutions 8,640 0 0 1,068 0 0
Loans and advances 6,339 0 0 508 0 0
Debt securities 1,631 554
Equity instruments 669 7
Other financial corporations 473 110
of which investment firms 0 0
Loans and advances 0 0
Debt securities
Equity instruments
of which management companies 0
Loans and advances 0
Debt securities
Equity instruments
of which insurance undertakings
Loans and advances
Debt securities
Equity instruments
Non-financial undertakings 30 0 0 0 0 0 0 0
Loans and advances 30 0 0 0 0 0 0 0
Debt securities 0 0
Equity instruments 0 0
Households 18,212 2,074 98 98 2,074 98 98
of which loans collateralized by residential immovable property 2,074 2,074 98 98 2,074 98 98
of which building renovation loans
of which motor vehicle loans
Local governments financing
Housing financing
Other local government financing
Collateral obtained by taking possession: residential and commercial immovable
properties 1

Table continues below.

1 Within tables in this section, blank fields generally indicate non-applicability or that presentation of any content would not be meaningful. Zero values generally indicate that the respective figure is zero on an actual or rounded basis.

Sustainability Report 2023 | Appendix 4 | Other supplemental information 136

136
Table continued from above.

31.12.23
Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Total (CCM + CCA)
of which towards taxonomy relevant sectors of which towards taxonomy relevant sectors of which towards taxonomy relevant sectors
(Taxonomy-eligible) (Taxonomy-eligible) (Taxonomy-eligible)
of which environmentally sustainable of which environmentally sustainable of which environmentally sustainable
(Taxonomy-aligned) (Taxonomy-aligned) (Taxonomy-aligned)
Total gross of which of which of which
carrying use of of which of which use of of which use of of which of which
USD m amount proceeds transitional enabling proceeds enabling proceeds transitional enabling
Assets excluded from the numerator for GAR calculation (covered in the
denominator) 460,552
Financial and Non-financial undertakings 277,343
SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations 14,301
Loans and advances 8,704
of which loans collateralized by commercial immovable property
of which building renovation loans
Debt securities 2,322
Equity instruments 3,274
Non-EU country counterparties not subject to NFRD disclosure obligations 263,042
Loans and advances 208,010
Debt securities 7,906
Equity instruments 47,126
Derivatives 161,374
On demand interbank loans 8,928
Cash and cash-related assets 1
Other categories of assets 12,907
Total GAR assets 487,909 2,074 98 98 0 0 3,253 98 98 0 0
Assets not covered for GAR calculation 210,460
Central governments and supranational issuers1 19,829
Central banks exposure 74,890
Trading book 115,742
Total assets 698,369 2,074 98 98 0 0 3,253 98 98 0 0
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations2
Financial guarantees 1 0
Assets under management 13,488 195 1 96 8 2,978 203 1 96
of which debt securities 4,770 91 0 23 0 1,392 92 0 23
of which equity instruments 4,913 104 1 72 7 968 112 1 72
1 Includes local governments financing when the use of proceeds is unknown. 2 As required by the standardized template, the total gross carrying amount was calculated on the basis of off-balance sheet exposures to undertakings subject to NFRD.

Sustainability Report 2023 | Appendix 4 | Other supplemental information 137

137
1.2 UBS AG standalone - assets for the calculation of the GAR (CapEx)
31.12.23
Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Total (CCM + CCA)
of which towards taxonomy relevant sectors of which towards taxonomy relevant sectors of which towards taxonomy relevant sectors
(Taxonomy-eligible) (Taxonomy-eligible) (Taxonomy-eligible)
of which environmentally sustainable of which environmentally sustainable of which environmentally sustainable
(Taxonomy-aligned) (Taxonomy-aligned) (Taxonomy-aligned)
Total gross of which of which of which
carrying use of of which of which use of of which use of of which of which
USD m amount proceeds transitional enabling proceeds enabling proceeds transitional enabling
GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity instruments not held-for-trading
eligible for GAR calculation 27,357 2,074 98 98 0 0 0 2,448 98 98 0 0
Financial undertakings 9,113 0 0 373 0 0
Credit institutions 8,640 0 0 332 0 0
Loans and advances 6,339 0 0 187 0 0
Debt securities 1,631 145
Equity instruments 669 0
Other financial corporations 473 0 0 42 0 0
of which investment firms 0
Loans and advances 0
Debt securities
Equity instruments
of which management companies
Loans and advances
Debt securities
Equity instruments
of which insurance undertakings
Loans and advances
Debt securities
Equity instruments
Non-financial undertakings 30 0 0 0 0 1 0 0 0
Loans and advances 30 0 0 0 0 1 0 0 0
Debt securities 0 0 0 0 0 0
Equity instruments 0 0 0 0
Households 18,212 2,074 98 98 2,074 98 98
of which loans collateralized by residential immovable property 2,074 2,074 98 98 2,074 98 98
of which building renovation loans
of which motor vehicle loans
Local governments financing
Housing financing
Other local government financing
Collateral obtained by taking possession: residential and commercial immovable
properties 1

Table continues below.

Sustainability Report 2023 | Appendix 4 | Other supplemental information 138

138
Table continued from above.

31.12.23
Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Total (CCM + CCA)
of which towards taxonomy relevant sectors of which towards taxonomy relevant sectors of which towards taxonomy relevant sectors
(Taxonomy-eligible) (Taxonomy-eligible) (Taxonomy-eligible)
of which environmentally sustainable of which environmentally sustainable of which environmentally sustainable
(Taxonomy-aligned) (Taxonomy-aligned) (Taxonomy-aligned)
Total gross of which of which of which
carrying use of of which of which use of of which use of of which of which
USD m amount proceeds transitional enabling proceeds enabling proceeds transitional enabling
Assets excluded from the numerator for GAR calculation (covered in the
denominator) 460,552
Financial and Non-financial undertakings 277,343
SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations 14,301
Loans and advances 8,704
of which loans collateralized by commercial immovable property
of which building renovation loans
Debt securities 2,322
Equity instruments 3,274
Non-EU country counterparties not subject to NFRD disclosure obligations 263,042
Loans and advances 208,010
Debt securities 7,906
Equity instruments 47,126
Derivatives 161,374
On demand interbank loans 8,928
Cash and cash-related assets 1
Other categories of assets 12,907
Total GAR assets 487,909 2,074 98 98 0 0 0 2,448 98 98 0 0
Assets not covered for GAR calculation 210,460
Central governments and supranational issuers1 19,829
Central banks exposure 74,890
Trading book 115,742
Total assets 698,369 2,074 98 98 0 0 0 2,448 98 98 0 0
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations2
Financial guarantees 1
Assets under management 13,488 462 22 209 2 2,733 464 22 209
of which debt securities 4,770 189 2 65 2 840 191 2 65
of which equity instruments 4,913 273 21 144 0 1,522 273 21 144
1 Includes local governments financing when the use of proceeds is unknown. 2 As required by the standardized template, the total gross carrying amount was calculated on the basis of off-balance sheet exposures to undertakings subject to NFRD.

Sustainability Report 2023 | Appendix 4 | Other supplemental information 139

139
1.3 UBS AG standalone - GAR sector information (Turnover)
Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Total (CCM + CCA)
Non-Financial corporates (Subject to SMEs and other NFC not subject to Non-Financial corporates (Subject to SMEs and other NFC not subject to Non-Financial corporates (Subject to SMEs and other NFC not subject to
Breakdown by sector - NACE 4 digits level NFRD) NFRD NFRD) NFRD NFRD) NFRD
(code and label)1 Gross carrying amount Gross carrying amount Gross carrying amount Gross carrying amount Gross carrying amount Gross carrying amount
of which of which of which of which of which of which
environmentally environmentally environmentally environmentally environmentally environmentally
sustainable sustainable sustainable sustainable sustainable sustainable
USD thousand (CCM) (CCM) (CCA) (CCA) (CCM + CCA) (CCM + CCA)
06.10 Extraction of crude petroleum 0
20.59 Manufacture of other chemical products
0 1 0
n.e.c.
24.10 Manufacture of basic iron and steel and of
0
ferro-alloys
30.12 Building of pleasure and sporting boats 59
23.51 Manufacture of cement 0 2 0
27.32 Manufacture of other electronic and electric
2
wires and cables
27.90 Manufacture of other electrical equipment 2
68.11 Buying and selling of own real estate 15 134 15
1 The information included in this table represents taxonomy-eligible and taxonomy-aligned amounts as reported in table 1.1, irrespective of whether the NACE code for principle activity is associated with taxonomy-eligible or taxonomy-aligned economic activities.

Sustainability Report 2023 | Appendix 4 | Other supplemental information 140

140
1.4 UBS AG standalone - GAR sector information (CapEx)
Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Total (CCM + CCA)
Non-Financial corporates (Subject to SMEs and other NFC not subject to Non-Financial corporates (Subject to SMEs and other NFC not subject to Non-Financial corporates (Subject to SMEs and other NFC not subject to
Breakdown by sector - NACE 4 digits level NFRD) NFRD NFRD) NFRD NFRD) NFRD
(code and label)1 Gross carrying amount Gross carrying amount Gross carrying amount Gross carrying amount Gross carrying amount Gross carrying amount
of which of which of which of which of which of which
environmentally environmentally environmentally environmentally environmentally environmentally
sustainable sustainable sustainable sustainable sustainable sustainable
USD thousand (CCM) (CCM) (CCA) (CCA) (CCM + CCA) (CCM + CCA)
06.10 Extraction of crude petroleum 1
20.59 Manufacture of other chemical products
0 1 0
n.e.c.
24.10 Manufacture of basic iron and steel and of
0
ferro-alloys
30.12 Building of pleasure and sporting boats 1 54 1
23.51 Manufacture of cement 0 2 0
27.32 Manufacture of other electronic and electric
5
wires and cables
26.30 Manufacture of communication equipment 0 0 0
27.90 Manufacture of other electrical equipment 3
68.11 Buying and selling of own real estate 43 135 43
86.99 Other human health activities n.e.c. 543
1 The information included in this table represents taxonomy-eligible and taxonomy-aligned amounts as reported in table 1.1, irrespective of whether the NACE code for principle activity is associated with taxonomy-eligible or taxonomy-aligned economic activities.

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141
1.5 UBS AG standalone - GAR KPI stock (Turnover)
31.12.23
Climate Change Mitigation (CCM)1 Climate Change Adaptation (CCA)1 Total (CCM + CCA)
Proportion of total covered assets funding taxonomy relevant Proportion of total covered assets funding Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible) taxonomy relevant sectors (Taxonomy-eligible) sectors (Taxonomy-eligible)
Proportion of total covered assets funding Proportion of total covered assets Proportion of total covered assets funding
taxonomy relevant sectors funding taxonomy relevant sectors taxonomy relevant sectors
(Taxonomy-aligned) (Taxonomy-aligned) (Taxonomy-aligned) Proportion
of which of which of which of total
use of of which of which use of of which use of of which of which assets
% (compared to total covered assets in the denominator) proceeds transitional enabling proceeds enabling proceeds transitional enabling covered2
GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity instruments not held-for-trading
eligible for GAR calculation 7.6 0.4 0.4 0.0 0.0 11.9 0.4 0.4 0.0 0.0 3.9
Financial undertakings 0.0 0.0 12.9 0.0 0.0 1.3
Credit institutions 0.0 0.0 12.4 0.0 0.0 1.2
Loans and advances 0.0 0.0 8.0 0.0 0.0 0.9
Debt securities 34.0 0.2
Equity instruments 1.0 0.1
Other financial corporations 23.3 0.1
of which investment firms 1.0 0.0
Loans and advances 1.0 0.0
Debt securities
Equity instruments
of which management companies
Loans and advances
Debt securities
Equity instruments
of which insurance undertakings
Loans and advances
Debt securities
Equity instruments
Non-financial undertakings 0.0 0.0 0.0 0.7 0.0 0.0 0.0 0.0
Loans and advances 0.0 0.0 0.0 0.5 0.0 0.0 0.0 0.0
Debt securities 98.7 0.0
Equity instruments 12.8 0.0
Households 11.4 0.5 0.5 11.4 0.5 0.5 2.6
of which loans collateralized by residential immovable property 100.0 4.7 4.7 100.0 4.7 4.7 0.3
of which building renovation loans
of which motor vehicle loans
Local governments financing
Housing financing
Other local government financing
Collateral obtained by taking possession: residential and commercial immovable
properties 0.0
Total GAR assets 0.4 0.0 0.0 0.0 0.0 0.7 0.0 0.0 0.0 0.0 69.9
1 Proportions calculated as a percentage of Total Gross Carrying Amount of each individual line as reported in table 1.1. 2 Proportions calculated as a percentage of Total Gross Carrying Amount of each individual line as reported in table 1.1 relative to Total Assets as reported in table 1.1.

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1.6 UBS AG standalone - GAR KPI stock (CapEx)
31.12.23
Climate Change Mitigation (CCM)1 Climate Change Adaptation (CCA)1 Total (CCM + CCA)
Proportion of total covered assets funding taxonomy relevant Proportion of total covered assets funding Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible) taxonomy relevant sectors (Taxonomy-eligible) sectors (Taxonomy-eligible)
Proportion of total covered assets funding Proportion of total covered assets Proportion of total covered assets funding
taxonomy relevant sectors funding taxonomy relevant sectors taxonomy relevant sectors
(Taxonomy-aligned) (Taxonomy-aligned) (Taxonomy-aligned) Proportion
of which of which of which of total
use of of which of which use of of which use of of which of which assets
% (compared to total covered assets in the denominator) proceeds transitional enabling proceeds enabling proceeds transitional enabling covered2
GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity instruments not held-for-trading
eligible for GAR calculation 7.6 0.4 0.4 0.0 0.0 0.0 8.9 0.4 0.4 0.0 0.0 3.9
Financial undertakings 0.0 0.0 4.1 0.0 0.0 1.3
Credit institutions 0.0 0.0 3.8 0.0 0.0 1.2
Loans and advances 0.0 0.0 2.9 0.0 0.0 0.9
Debt securities 8.9 0.2
Equity instruments 0.0 0.1
Other financial corporations 0.0 0.0 8.9 0.0 0.0 0.1
of which investment firms 0.0
Loans and advances 0.0
Debt securities
Equity instruments
of which management companies
Loans and advances
Debt securities
Equity instruments
of which insurance undertakings
Loans and advances
Debt securities
Equity instruments
Non-financial undertakings 0.1 0.0 0.0 0.0 2.4 0.1 0.0 0.0 0.0
Loans and advances 0.1 0.0 0.0 0.0 2.3 0.1 0.0 0.0 0.0
Debt securities 1.2 1.2 90.0 1.2 1.2 0.0
Equity instruments 0.5 45.9 0.5 0.0
Households 11.4 0.5 0.5 11.4 0.5 0.5 2.6
of which loans collateralized by residential immovable property 100.0 4.7 4.7 100.0 4.7 4.7 0.3
of which building renovation loans
of which motor vehicle loans
Local governments financing
Housing financing
Other local government financing
Collateral obtained by taking possession: residential and commercial immovable
properties 0.0
Total GAR assets 0.4 0.0 0.0 0.0 0.0 0.0 0.5 0.0 0.0 0.0 0.0 69.9
1 Proportions calculated as a percentage of Total Gross Carrying Amount of each individual line as reported in table 1.1. 2 Proportions calculated as a percentage of Total Gross Carrying Amount of each individual line as reported in table 1.1 relative to Total Assets as reported in table 1.1.

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1.7 UBS AG standalone - GAR KPI flow (Turnover)
31.12.23
Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Total (CCM + CCA)
Proportion of total covered assets funding taxonomy relevant Proportion of total covered assets funding Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible) taxonomy relevant sectors (Taxonomy-eligible) sectors (Taxonomy-eligible)
Proportion of total covered assets funding Proportion of total covered assets Proportion of total covered assets funding
taxonomy relevant sectors funding taxonomy relevant sectors taxonomy relevant sectors
(Taxonomy-aligned) (Taxonomy-aligned) (Taxonomy-aligned)
of which of which of which
use of of which of which use of of which use of of which of which
% (compared to flow of total eligible assets) proceeds transitional enabling proceeds enabling proceeds transitional enabling
GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity instruments not held-for-trading eligible for GAR
calculation 2.1 0.0 0.0 16.0 0.0 0.0
Financial undertakings 17.4
Credit institutions 17.1
Loans and advances 12.8
Debt securities 40.3
Equity instruments
Other financial corporations 27.8
of which investment firms 1.0
Loans and advances 1.0
Debt securities
Equity instruments
of which management companies
Loans and advances
Debt securities
Equity instruments
of which insurance undertakings
Loans and advances
Debt securities
Equity instruments
Non-financial undertakings
Loans and advances
Debt securities
Equity instruments
Households 10.4 0.1 0.1 10.4 0.1 0.1
of which loans collateralized by residential immovable property 100.0 0.5 0.5 100.0 0.5 0.5
of which building renovation loans
of which motor vehicle loans
Local governments financing
Housing financing
Other local government financing

Collateral obtained by taking possession: residential and commercial immovable properties

Total GAR assets1 0.0 0.0 0.0 0.2 0.0 0.0
1 Proportion calculated as a percentage of Total GAR assets as reported in table 1.1.

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1.8 UBS AG standalone - GAR KPI flow (CapEx)
31.12.23
Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Total (CCM + CCA)
Proportion of total covered assets funding taxonomy relevant Proportion of total covered assets funding Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible) taxonomy relevant sectors (Taxonomy-eligible) sectors (Taxonomy-eligible)
Proportion of total covered assets funding Proportion of total covered assets Proportion of total covered assets funding
taxonomy relevant sectors funding taxonomy relevant sectors taxonomy relevant sectors
(Taxonomy-aligned) (Taxonomy-aligned) (Taxonomy-aligned)
of which of which of which
use of of which of which use of of which use of of which of which
% (compared to flow of total eligible assets) proceeds transitional enabling proceeds enabling proceeds transitional enabling
GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity instruments not held-for-trading eligible for GAR
calculation 2.1 0.0 0.0 5.9 0.0 0.0
Financial undertakings 4.7
Credit institutions 4.9
Loans and advances 5.5
Debt securities 1.6
Equity instruments
Other financial corporations
of which investment firms
Loans and advances
Debt securities
Equity instruments
of which management companies
Loans and advances
Debt securities
Equity instruments
of which insurance undertakings
Loans and advances
Debt securities
Equity instruments
Non-financial undertakings
Loans and advances
Debt securities
Equity instruments
Households 10.4 0.1 0.1 10.4 0.1 0.1
of which loans collateralized by residential immovable property 100.0 0.5 0.5 100.0 0.5 0.5
of which building renovation loans
of which motor vehicle loans
Local governments financing
Housing financing
Other local government financing

Collateral obtained by taking possession: residential and commercial immovable properties

Total GAR assets1 0.0 0.0 0.0 0.1 0.0 0.0
1 Proportion calculated as a percentage of Total GAR assets as reported in table 1.1.

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1.9 UBS AG standalone - KPI off-balance sheet exposures – Stock (Turnover)
31.12.23
Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Total (CCM + CCA)
Proportion of total covered assets funding taxonomy relevant Proportion of total covered assets funding Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible) taxonomy relevant sectors (Taxonomy-eligible) sectors (Taxonomy-eligible)
Proportion of total covered assets
Proportion of total covered assets funding Proportion of total covered assets funding
funding taxonomy relevant sectors
taxonomy relevant sectors (Taxonomy-aligned) taxonomy relevant sectors (Taxonomy-aligned)
(Taxonomy-aligned)
of which of which of which
use of of which of which use of of which use of of which of which
% (compared to total eligible off-balance sheet assets)
proceeds transitional enabling proceeds enabling proceeds transitional enabling
Financial guarantees (FinGuar KPI) 1.0
Assets under management (AuM KPI) 1.4 0.0 0.7 0.1 22.1 1.5 0.0 0.7

1.10 UBS AG standalone - KPI off-balance sheet exposures – Stock (CapEx)

31.12.23
Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Total (CCM + CCA)
Proportion of total covered assets funding taxonomy relevant Proportion of total covered assets funding Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible) taxonomy relevant sectors (Taxonomy-eligible) sectors (Taxonomy-eligible)
Proportion of total covered assets
Proportion of total covered assets funding Proportion of total covered assets funding
funding taxonomy relevant sectors
taxonomy relevant sectors (Taxonomy-aligned) taxonomy relevant sectors (Taxonomy-aligned)
(Taxonomy-aligned)
of which of which of which
use of of which of which use of of which use of of which of which
% (compared to total eligible off-balance sheet assets)
proceeds transitional enabling proceeds enabling proceeds transitional enabling
Financial guarantees (FinGuar KPI)
Assets under management (AuM KPI) 3.4 0.2 1.5 0.0 20.3 3.4 0.2 1.5

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1.11 UBS AG standalone - Key Performance Indicators on the activities related to Nuclear and Fossil Gas – Stock

Row Nuclear energy related activities 31.12.23

1 The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the No
fuel cycle.

2 The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as No
hydrogen production, as well as their safety upgrades, using best available technologies.

3 The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen No
production from nuclear energy, as well as their safety upgrades.

Row Fossil gas related activities

4 The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. No

5 The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. Yes

6 The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. No

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2 UBS Europe SE consolidated1
2.1 UBS Europe SE consolidated - assets for the calculation of the GAR (Turnover)
31.12.23
Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Total (CCM + CCA)
of which towards taxonomy relevant sectors of which towards taxonomy relevant sectors of which towards taxonomy relevant sectors
(Taxonomy-eligible) (Taxonomy-eligible) (Taxonomy-eligible)
of which environmentally sustainable of which environmentally sustainable of which environmentally sustainable
(Taxonomy-aligned) (Taxonomy-aligned) (Taxonomy-aligned)
Total gross of which of which of which
carrying use of of which of which use of of which use of of which of which
USD m amount proceeds transitional enabling proceeds enabling proceeds transitional enabling
GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity instruments not held-for-trading
eligible for GAR calculation 6,424 186 0 0 505 0 0
Financial undertakings 3,615 0 319 0
Credit institutions 3,574 319
Loans and advances 2,974 173
Debt securities 600 146
Equity instruments 0 0
Other financial corporations 42 0 0 0
of which investment firms 42 0
Loans and advances 42 0
Debt securities
Equity instruments
of which management companies 0 0
Loans and advances 0 0
Debt securities
Equity instruments
of which insurance undertakings 0 0 0
Loans and advances 0 0 0
Debt securities
Equity instruments
Non-financial undertakings 0 0 0 0 0 0
Loans and advances 0 0 0 0 0 0
Debt securities
Equity instruments
Households 2,808 186 186
of which loans collateralized by residential immovable property 186 186 186
of which building renovation loans
of which motor vehicle loans
Local governments financing
Housing financing
Other local government financing
Collateral obtained by taking possession: residential and commercial immovable
properties 0

Table continues below.

1 Within tables in this section, blank fields generally indicate non-applicability or that presentation of any content would not be meaningful. Zero values generally indicate that the respective figure is zero on an actual or rounded basis.

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Table continued from above.

31.12.23
Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Total (CCM + CCA)
of which towards taxonomy relevant sectors of which towards taxonomy relevant sectors of which towards taxonomy relevant sectors
(Taxonomy-eligible) (Taxonomy-eligible) (Taxonomy-eligible)
of which environmentally sustainable of which environmentally sustainable of which environmentally sustainable
(Taxonomy-aligned) (Taxonomy-aligned) (Taxonomy-aligned)
Total gross of which of which of which
carrying use of of which of which use of of which use of of which of which
USD m amount proceeds transitional enabling proceeds enabling proceeds transitional enabling
Assets excluded from the numerator for GAR calculation (covered in the
denominator) 27,364
Financial and Non-financial undertakings 6,538
SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations 4,059
Loans and advances 3,033
of which loans collateralized by commercial immovable property
of which building renovation loans
Debt securities 1,025
Equity instruments 1
Non-EU country counterparties not subject to NFRD disclosure obligations 2,479
Loans and advances 1,508
Debt securities 968
Equity instruments 3
Derivatives 17,755
On demand interbank loans 1,995
Cash and cash-related assets 0
Other categories of assets 1,076
Total GAR assets 33,788 186 0 0 505 0 0
Assets not covered for GAR calculation 18,084
Central governments and supranational issuers1 2,246
Central banks exposure 11,922
Trading book 3,916
Total assets 51,872 186 0 0 505 0 0
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations2
Financial guarantees
Assets under management 34,560 715 19 440 8 9,219 723 19 440
of which debt securities 7,014 264 7 130 5 2,258 269 7 130
of which equity instruments 25,372 451 13 310 3 6,623 454 13 310
1 Includes local governments financing when the use of proceeds is unknown. 2 As required by the standardized template, the total gross carrying amount was calculated on the basis of off-balance sheet exposures to undertakings subject to NFRD.

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2.2 UBS Europe SE consolidated - assets for the calculation of the GAR (CapEx)
31.12.23
Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Total (CCM + CCA)
of which towards taxonomy relevant sectors of which towards taxonomy relevant sectors of which towards taxonomy relevant sectors
(Taxonomy-eligible) (Taxonomy-eligible) (Taxonomy-eligible)
of which environmentally sustainable of which environmentally sustainable of which environmentally sustainable
(Taxonomy-aligned) (Taxonomy-aligned) (Taxonomy-aligned)
Total gross of which of which of which
carrying use of of which of which use of of which use of of which of which
USD m amount proceeds transitional enabling proceeds enabling proceeds transitional enabling
GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity instruments not held-for-trading
eligible for GAR calculation 6,424 186 0 0 0 351 0 0 0
Financial undertakings 3,615 166
Credit institutions 3,574 166
Loans and advances 2,974 124
Debt securities 600 42
Equity instruments 0
Other financial corporations 42
of which investment firms 42
Loans and advances 42
Debt securities
Equity instruments
of which management companies 0
Loans and advances 0
Debt securities
Equity instruments
of which insurance undertakings 0
Loans and advances 0
Debt securities
Equity instruments
Non-financial undertakings 0 0 0 0 0 0 0 0
Loans and advances 0 0 0 0 0 0 0 0
Debt securities
Equity instruments
Households 2,808 186 186
of which loans collateralized by residential immovable property 186 186 186
of which building renovation loans
of which motor vehicle loans
Local governments financing
Housing financing
Other local government financing
Collateral obtained by taking possession: residential and commercial immovable
properties 0

Table continues below.

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Table continued from above.

31.12.23
Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Total (CCM + CCA)
of which towards taxonomy relevant sectors of which towards taxonomy relevant sectors of which towards taxonomy relevant sectors
(Taxonomy-eligible) (Taxonomy-eligible) (Taxonomy-eligible)
of which environmentally sustainable of which environmentally sustainable of which environmentally sustainable
(Taxonomy-aligned) (Taxonomy-aligned) (Taxonomy-aligned)
Total gross of which of which of which
carrying use of of which of which use of of which use of of which of which
USD m amount proceeds transitional enabling proceeds enabling proceeds transitional enabling
Assets excluded from the numerator for GAR calculation (covered in the
denominator) 27,364
Financial and Non-financial undertakings 6,538
SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations 4,059
Loans and advances 3,033
of which loans collateralized by commercial immovable property
of which building renovation loans
Debt securities 1,025
Equity instruments 1
Non-EU country counterparties not subject to NFRD disclosure obligations 2,479
Loans and advances 1,508
Debt securities 968
Equity instruments 3
Derivatives 17,755
On demand interbank loans 1,995
Cash and cash-related assets 0
Other categories of assets 1,076
Total GAR assets 33,788 186 0 0 0 351 0 0 0
Assets not covered for GAR calculation 18,084
Central governments and supranational issuers1 2,246
Central banks exposure 11,922
Trading book 3,916
Total assets 51,872 186 0 0 0 351 0 0 0
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations2
Financial guarantees
Assets under management 34,560 1,762 165 870 24 8,508 1,786 165 870
of which debt securities 7,014 660 24 325 16 2,101 676 24 325
of which equity instruments 25,372 1,102 141 545 8 6,243 1,111 141 545
1 Includes local governments financing when the use of proceeds is unknown. 2 As required by the standardized template, the total gross carrying amount was calculated on the basis of off-balance sheet exposures to undertakings subject to NFRD.

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2.3 UBS Europe SE consolidated - GAR sector information (Turnover)
Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Total (CCM + CCA)
Non-Financial corporates (Subject to SMEs and other NFC not subject to Non-Financial corporates (Subject to SMEs and other NFC not subject to Non-Financial corporates (Subject to SMEs and other NFC not subject to
Breakdown by sector - NACE 4 digits level NFRD) NFRD NFRD) NFRD NFRD) NFRD
(code and label)1 Gross carrying amount Gross carrying amount Gross carrying amount Gross carrying amount Gross carrying amount Gross carrying amount
of which of which of which of which of which of which
environmentally environmentally environmentally environmentally environmentally environmentally
sustainable sustainable sustainable sustainable sustainable sustainable
USD thousand (CCM) (CCM) (CCA) (CCA) (CCM + CCA) (CCM + CCA)
06.10 Extraction of crude petroleum 0 1 0
1 The information included in this table represents taxonomy-eligible and taxonomy-aligned amounts as reported in table 1.1, irrespective of whether the NACE code for principle activity is associated with taxonomy-eligible or taxonomy-aligned economic activities.

2.4 UBS Europe SE consolidated - GAR sector information (CapEx)

Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Total (CCM + CCA)
Non-Financial corporates (Subject to SMEs and other NFC not subject to Non-Financial corporates (Subject to SMEs and other NFC not subject to Non-Financial corporates (Subject to SMEs and other NFC not subject to
Breakdown by sector - NACE 4 digits level NFRD) NFRD NFRD) NFRD NFRD) NFRD
(code and label)1 Gross carrying amount Gross carrying amount Gross carrying amount Gross carrying amount Gross carrying amount Gross carrying amount
of which of which of which of which of which of which
environmentally environmentally environmentally environmentally environmentally environmentally
sustainable sustainable sustainable sustainable sustainable sustainable
USD thousand (CCM) (CCM) (CCA) (CCA) (CCM + CCA) (CCM + CCA)
06.10 Extraction of crude petroleum 2 2 2
1 The information included in this table represents taxonomy-eligible and taxonomy-aligned amounts as reported in table 1.1, irrespective of whether the NACE code for principle activity is associated with taxonomy-eligible or taxonomy-aligned economic activities.

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2.5 UBS Europe SE consolidated - GAR KPI stock (Turnover)
31.12.23
Climate Change Mitigation (CCM)1 Climate Change Adaptation (CCA)1 Total (CCM + CCA)
Proportion of total covered assets funding taxonomy relevant Proportion of total covered assets funding Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible) taxonomy relevant sectors (Taxonomy-eligible) sectors (Taxonomy-eligible)
Proportion of total covered assets
Proportion of total covered assets funding Proportion of total covered assets funding
funding taxonomy relevant sectors
taxonomy relevant sectors (Taxonomy-aligned) taxonomy relevant sectors (Taxonomy-aligned)
(Taxonomy-aligned) Proportion
of which of which of which of total
use of of which of which use of of which use of of which of which assets
% (compared to total covered assets in the denominator) proceeds transitional enabling proceeds enabling proceeds transitional enabling covered2
GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity instruments not held-for-trading
eligible for GAR calculation 2.9 0.0 0.0 7.9 0.0 0.0 12.4
Financial undertakings 0.0 8.8 0.0 7.0
Credit institutions 8.9 6.9
Loans and advances 5.8 5.7
Debt securities 24.3 1.2
Equity instruments 1.0 0.0
Other financial corporations 0.0 1.0 0.0 0.1
of which investment firms 1.0 0.1
Loans and advances 1.0 0.1
Debt securities
Equity instruments
of which management companies 59.7 0.0
Loans and advances 59.7 0.0
Debt securities
Equity instruments
of which insurance undertakings 27.9 27.9 0.0
Loans and advances 27.9 27.9 0.0
Debt securities
Equity instruments
Non-financial undertakings 1.3 1.0 7.5 1.3 1.0 0.0
Loans and advances 1.3 1.0 7.5 1.3 1.0 0.0
Debt securities
Equity instruments
Households 6.6 6.6 5.4
of which loans collateralized by residential immovable property 100.0 100.0 0.4
of which building renovation loans
of which motor vehicle loans
Local governments financing
Housing financing
Other local government financing
Collateral obtained by taking possession: residential and commercial immovable
properties 0.0
Total GAR assets 0.5 0.0 0.0 1.5 0.0 0.0 65.1
1 Proportions calculated as a percentage of Total Gross Carrying Amount of each individual line as reported in table 2.1. 2 Proportions calculated as a percentage of Total Gross Carrying Amount of each individual line as reported in table 2.1 relative to Total Assets as reported in table 2.1.

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2.6 UBS Europe SE consolidated - GAR KPI stock (CapEx)
31.12.23
Climate Change Mitigation (CCM)1 Climate Change Adaptation (CCA)1 Total (CCM + CCA)
Proportion of total covered assets funding taxonomy relevant Proportion of total covered assets funding Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible) taxonomy relevant sectors (Taxonomy-eligible) sectors (Taxonomy-eligible)
Proportion of total covered assets
Proportion of total covered assets funding funding taxonomy relevant sectors Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-aligned) (Taxonomy-aligned) taxonomy relevant sectors (Taxonomy-aligned) Proportion
of which of which of which of total
use of of which of which use of of which use of of which of which assets
% (compared to total covered assets in the denominator) proceeds transitional enabling proceeds enabling proceeds transitional enabling covered2
GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity instruments not held-for-trading
eligible for GAR calculation 2.9 0.0 0.0 0.0 5.5 0.0 0.0 0.0 12.4
Financial undertakings 4.6 7.0
Credit institutions 4.6 6.9
Loans and advances 4.2 5.7
Debt securities 7.0 1.2
Equity instruments 0.0
Other financial corporations 0.1
of which investment firms 0.1
Loans and advances 0.1
Debt securities
Equity instruments
of which management companies 0.0
Loans and advances 0.0
Debt securities
Equity instruments
of which insurance undertakings 0.0
Loans and advances 0.0
Debt securities
Equity instruments
Non-financial undertakings 14.5 0.3 2.4 17.4 14.5 0.3 2.4 0.0
Loans and advances 14.5 0.3 2.4 17.4 14.5 0.3 2.4 0.0
Debt securities
Equity instruments
Households 6.6 6.6 5.4
of which loans collateralized by residential immovable property 100.0 100.0 0.4
of which building renovation loans
of which motor vehicle loans
Local governments financing
Housing financing
Other local government financing
Collateral obtained by taking possession: residential and commercial immovable
properties 0.0
Total GAR assets 0.5 0.0 0.0 0.0 1.0 0.0 0.0 0.0 65.1
1 Proportions calculated as a percentage of Total Gross Carrying Amount of each individual line as reported in table 2.1. 2 Proportions calculated as a percentage of Total Gross Carrying Amount of each individual line as reported in table 2.1 relative to Total Assets as reported in table 2.1.

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2.7 UBS Europe SE consolidated - GAR KPI flow (Turnover)
31.12.23
Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Total (CCM + CCA)
Proportion of total covered assets funding taxonomy relevant Proportion of total covered assets funding Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible) taxonomy relevant sectors (Taxonomy-eligible) sectors (Taxonomy-eligible)
Proportion of total covered assets funding Proportion of total covered assets Proportion of total covered assets funding
taxonomy relevant sectors funding taxonomy relevant sectors taxonomy relevant sectors
(Taxonomy-aligned) (Taxonomy-aligned) (Taxonomy-aligned)
of which of which of which
use of of which of which use of of which use of of which of which
% (compared to flow of total eligible assets) proceeds transitional enabling proceeds enabling proceeds transitional enabling
GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity instruments not held-for-trading eligible for GAR
calculation 0.6 5.2
Financial undertakings 5.8
Credit institutions 5.9
Loans and advances 4.3
Debt securities 24.0
Equity instruments
Other financial corporations 1.0
of which investment firms 1.0
Loans and advances 1.0
Debt securities
Equity instruments 1.0
of which management companies 59.7
Loans and advances 59.7
Debt securities
Equity instruments
of which insurance undertakings
Loans and advances
Debt securities
Equity instruments
Non-financial undertakings
Loans and advances
Debt securities
Equity instruments
Households 2.8 2.8
of which loans collateralized by residential immovable property 100.0 100.0
of which building renovation loans
of which motor vehicle loans
Local governments financing
Housing financing
Other local government financing

Collateral obtained by taking possession: residential and commercial immovable properties

Total GAR assets1 0.1 0.6
1 Proportion calculated as a percentage of Total GAR assets as reported in table 2.1.

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2.8 UBS Europe SE consolidated - GAR KPI flow (CapEx)
31.12.23
Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Total (CCM + CCA)
Proportion of total covered assets funding taxonomy relevant Proportion of total covered assets funding Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible) taxonomy relevant sectors (Taxonomy-eligible) sectors (Taxonomy-eligible)
Proportion of total covered assets funding Proportion of total covered assets Proportion of total covered assets funding
taxonomy relevant sectors funding taxonomy relevant sectors taxonomy relevant sectors
(Taxonomy-aligned) (Taxonomy-aligned) (Taxonomy-aligned)
of which of which of which
use of of which of which use of of which use of of which of which
% (compared to flow of total eligible assets) proceeds transitional enabling proceeds enabling proceeds transitional enabling
GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity instruments not held-for-trading eligible for GAR
calculation 0.6 1.8
Financial undertakings 1.6
Credit institutions 1.6
Loans and advances 1.0
Debt securities 8.8
Equity instruments
Other financial corporations
of which investment firms
Loans and advances
Debt securities
Equity instruments
of which management companies
Loans and advances
Debt securities
Equity instruments
of which insurance undertakings
Loans and advances
Debt securities
Equity instruments
Non-financial undertakings
Loans and advances
Debt securities
Equity instruments
Households 2.8 2.8
of which loans collateralized by residential immovable property 100.0 100.0
of which building renovation loans
of which motor vehicle loans
Local governments financing
Housing financing
Other local government financing

Collateral obtained by taking possession: residential and commercial immovable properties

Total GAR assets1 0.1 0.2
1 Proportion calculated as a percentage of Total GAR assets as reported in table 2.1.

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156
2.9 UBS Europe SE consolidated - KPI off-balance sheet exposures – Stock (Turnover)
31.12.23
Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Total (CCM + CCA)
Proportion of total covered assets funding taxonomy relevant Proportion of total covered assets funding Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible) taxonomy relevant sectors (Taxonomy-eligible) sectors (Taxonomy-eligible)
Proportion of total covered assets
Proportion of total covered assets funding Proportion of total covered assets funding
funding taxonomy relevant sectors
taxonomy relevant sectors (Taxonomy-aligned) taxonomy relevant sectors (Taxonomy-aligned)
(Taxonomy-aligned)
of which of which of which
use of of which of which use of of which use of of which of which
% (compared to total eligible off-balance sheet assets)
proceeds transitional enabling proceeds enabling proceeds transitional enabling
Financial guarantees (FinGuar KPI)
Assets under management (AuM KPI) 2.1 0.1 1.3 0.0 26.7 2.1 0.1 1.3

2.10 UBS Europe SE consolidated - KPI off-balance sheet exposures – Stock (CapEx)
31.12.23
Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Total (CCM + CCA)
Proportion of total covered assets funding taxonomy relevant Proportion of total covered assets funding Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible) taxonomy relevant sectors (Taxonomy-eligible) sectors (Taxonomy-eligible)
Proportion of total covered assets
Proportion of total covered assets funding Proportion of total covered assets funding
funding taxonomy relevant sectors
taxonomy relevant sectors (Taxonomy-aligned) taxonomy relevant sectors (Taxonomy-aligned)
(Taxonomy-aligned)
of which of which of which
use of of which of which use of of which use of of which of which
% (compared to total eligible off-balance sheet assets)
proceeds transitional enabling proceeds enabling proceeds transitional enabling
Financial guarantees (FinGuar KPI)
Assets under management (AuM KPI) 5.1 0.5 2.5 0.0 24.6 5.2 0.5 2.5

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157
2.11 UBS Europe SE consolidated - Key Performance Indicators on activities related to Nuclear and Fossil Gas – Stock

Row Nuclear energy-related activities 31.12.23

1 The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the No
fuel cycle.

2 The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as No
hydrogen production, as well as their safety upgrades, using best available technologies.

3 The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen No
production from nuclear energy, as well as their safety upgrades.

Row Fossil gas-related activities

4 The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. Yes

5 The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. Yes

6 The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. No

Sustainability Report 2023 | Appendix 4 | Other supplemental information 158

158
Independent assurance report [placeholder – 1 of 9 pages]

Ernst & Young Ltd Phone +41 58 286 86 86

Aeschengraben 9 www.ey.com/ch
P.O. Box
CH-4002 Basel

To the Management of Basel, 27 March 2024

UBS Group AG, Zurich

Independent assurance report on selected sustainability metrics and

information for the year ended 31 December 2023
We have been engaged to perform assurance engagements on certain sustainability metrics and information disclosed
in the UBS Group Sustainability Report 2023, including the Supplement of UBS Group AG and its consolidated
subsidiaries (the Group or UBS) for the year ended 31 December 2023 (the Report). Specifically, we were engaged to
provide:

 limited assurance on sustainability metrics and information as referenced in the Group’s GRI (Global Reporting
Initiative) Content Index and metrics identified in Appendix A (metrics and information in scope of limited
assurance); and
 reasonable assurance on metrics identified in Appendix B (metrics in scope of reasonable assurance)

Other than as described in the preceding paragraph, which sets out the scope of our engagements, we did not perform
assurance procedures on the remaining information included in the Report, and accordingly, we do not express an
opinion or conclusion on this information.

Applicable criteria
The Group defined as applicable criteria (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 Reporting’ document (within the Supplement of the
UBS Group Sustainability Report 2023). The ‘Basis of Reporting’ has been used as the applicable criteria for metrics
identified in Appendices A and B.

We believe that these criteria are a suitable basis for our limited and reasonable assurance engagements.

Responsibility of the Management

Management is responsible for the selection of the applicable criteria and for preparation and presentation, in all
material respects, of the disclosed metrics and information in accordance with the applicable criteria. This responsibility
includes the design, implementation, and maintenance of internal controls relevant to the preparation of the metrics
and information 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.

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.

Sustainability Report 2023 | Appendix 4 | Other supplemental information 159

Independent assurance report [placeholder – 2 of 9 pages]

Our responsibility
Limited assurance
Our responsibility is to express a conclusion on the metrics and information in scope of limited assurance, based on the
evidence we have obtained.

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

We conducted our assurance engagements in accordance with the 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 or reasonable assurance as stated
above about whether the metrics and information in the Report are free from material misstatement, whether due to
fraud or error.

Summary of work performed

Based on risk and materiality considerations we have undertaken procedures to obtain sufficient evidence. The
procedures selected depend on the practitioner’s judgment. This includes the assessment of the risks of material
misstatements in the metrics and information in scope of limited assurance.

Limited assurance
The 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 we performed a reasonable
assurance engagement.

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.

Procedures performed
Our limited and reasonable assurance procedures included, amongst others, the following work:
 Conducting interviews with key personnel to understand the sustainability strategy and the process for
determining material sustainability topics.
 Comparing material topics against key issues raised in stakeholder dialogues, areas of performance covered in
external media reports and sustainability reports of UBS’s peers.
 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 and information 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.
 Evaluating the appropriateness of metrics within the Report and the consistency of the metrics and information
presented across the Report.

Sustainability Report 2023 | Appendix 4 | Other supplemental information 160

Independent assurance report [placeholder – 3 of 9 pages]

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.

Due to a lack of standardization regarding the measurement of the metrics, different, but acceptable approaches are
emerging in the market which can affect comparability between entities and over time. In addition, there is a lack of
high-quality data in certain areas which can further impact how the metrics is measured. Significant assumptions and
limitations are laid out in more detail in the ‘Basis of Reporting’ document.

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 metrics and information in scope of limited assurance for the year ended 31 December 2023 have not
been prepared, in all material respects, in accordance with the applicable criteria.

Opinion – reasonable assurance

In our opinion, the metrics in scope of reasonable assurance for the year ended 31 December 2023 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 2023 | Appendix 4 | Other supplemental information 161

Independent assurance report [placeholder – 4 of 9 pages]

Appendix A

Metrics covered by our limited assurance engagement

Section Metric Reporting Boundary

Table “Climate- Number of green, sustainability, and sustainability-linked bond deals
related risks and
Total deal value of green, sustainability, and sustainability-linked bond deals (USD billion) UBS Group
opportunities
metrics” UBS-apportioned deal value of above (USD billion)
Swiss residential real estate (scopes 1 and 2 kg CO2e / m2 ERA) (reported as of 31.12.2022)

Swiss commercial real estate (scopes 1 and 2 kg CO2e / m2 ERA) (reported as of 31.12.2022)

Table “Climate- Fossil fuels (oil, gas and coal; scopes 1, 2 and 3 million metric t CO2e) (reported as of
related lending 31.12.2022) UBS Group
metrics” Power generation (scope 1 kg CO2e / MWh) (reported as of 31.12.2022)

Iron and steel (scopes 1 and 2 metric t CO2 / metric t of steel) (reported as of 31.12.2022)

Cement (scopes 1 and 2 metric t CO2 / metric t of cementitious) (reported as of 31.12.2022)

Shipping (delta alignment to Poseidon Principles “IMO 50” trajectory) (reported as of
Table “Climate-
31.12.2022)
related lending
Shipping (delta alignment to “IMO 2023 minimum trajectory”) (reported as of 31.12.2022) Credit Suisse AG
metrics – Poseidon
Principles”
Shipping (delta alignment to “IMO 2023 striving for trajectory”) (reported as of 31.12.2022)

Number of net-zero ambition portfolios

Net-zero ambition assets share of total assets under management (%)

Asset Management investment-associated emissions (absolute; in t CO2e)

Asset Management investment-associated carbon intensity (carbon footprint; in t CO 2e per USD
million invested)
Weighted average carbon intensity – active equity assets (t CO2e per USD million of revenue)
% AuM weighted average carbon intensity below benchmark (active equity)
Weighted average carbon intensity – active fixed income assets (t CO2e per USD million of
revenue)
Table “Climate- % AuM weighted average carbon intensity below benchmark (active fixed income)
related investing Weighted average carbon intensity – indexed equity assets (t CO2e per USD million of revenue) UBS AG
metrics”
Weighted average carbon intensity – indexed fixed income assets (t CO2e per USD million of
revenue)
Weighted average carbon intensity – direct real estate (kg CO2e per square meter) (reported as
of 31.12.2022)
Carbon footprint – active equity assets (t CO2e per USD million invested)
% AuM weighted average carbon intensity below benchmark (active equity)
Carbon footprint – active fixed income assets (t CO2e per USD million invested)
% AuM weighted average carbon intensity below benchmark (active fixed income)
Carbon footprint – indexed equity assets (t CO2e per USD million invested)

Carbon footprint – indexed fixed income assets (t CO2e per USD million invested)
Select carbon-intensive sectors (reported as of 31.12.2022)
Facilitated amount (USD billion) (reported as of 31.12.2022)
Facilitated intensity (million metric t CO2e / USD billion) (reported as of 31.12.2022)
Table “Facilitated
Select carbon-intensive sectors as % of total facilitated amount (reported as of 31.12.2022) UBS Group
emissions”
Other sectors (USD billion) (reported as of 31.12.2022)

Total facilitated amount (USD billion) (reported as of 31.12.2022)

Graph “Global Global Wealth Management clients' impact investing assets (USD billion)
Wealth Management Global Wealth Management clients’ discretionary assets aligned to SI Strategic Asset Allocation UBS AG
– 2023 highlights”
(USD billion)
Asset Management’s corporate engagements on ESG topics achieved positive progress against
Graph “Asset stated objectives (%)
Management – Number of companies Asset Management actively engaged with on ESG topics UBS Group
Active Ownership”
Number of Asset Management conducted engagement meetings on ESG topics with investee
companies
Text “Leveraged Number of facilitated green, social, sustainability, or sustainability linked bond transactions UBS Group
and debt capital
markets” Number of facilitated green, social, sustainability, or sustainability linked bond transactions Credit Suisse AG

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Total deal value of green, social, sustainability, and sustainability-linked bond transactions UBS Group

Total deal value of green, social, sustainability, and sustainability-linked bond transactions Credit Suisse AG
Graph “Personal & SI share of UBS AG P&C assets under custody in Personal Banking (%)
Corporate Banking”
UBS AG
– 2023 highlights Share of sustainable net new investment products in UBS AG P&C Personal Banking (%)
(Private clients)”
Exposure to climate-sensitive sectors, transition risk: Traded products, UBS Group excluding
Credit Suisse
Exposure to climate-sensitive sectors, transition risk: Issuer risk, UBS Group excluding Credit
Suisse
Exposure to climate-sensitive sectors, physical risk: Traded products, UBS Group excluding UBS Group excluding Credit
Credit Suisse Suisse
Exposure to climate-sensitive sectors, physical risk: Issuer risk, UBS Group excluding Credit
Table “Risk Suisse
management –
Exposure to nature-related risks: UBS Group excluding Credit Suisse
Climate- and nature-
Exposure to nature-related risks, proportion of total customer lending exposure, gross (%)
related metrics”
Exposure to nature-related risks: UBS AG (standalone) UBS AG

Exposure to nature-related risks: UBS Switzerland AG (standalone) UBS Switzerland AG

Exposure to nature-related risks: UBS Europe SE (standalone) UBS Europe SE

Exposure to nature-related risks: Traded products, UBS Group excluding Credit Suisse UBS Group excluding Credit
Exposure to nature-related risks: Issuer risk, UBS Group excluding Credit Suisse Suisse

UBS Group excluding Credit

Number of cases referred for assessment
Table Suisse
“Sustainability and Number of cases referred for assessment: UBS Europe SE UBS Europe SE
climate risk
assessments” Number of cases referred for assessment: Credit Suisse – Step Trace
Credit Suisse
Number of cases referred for assessment: Credit Suisse – CETF
Number of resolutions voted upon (based on UBS AG Asset Management’s corporate governance
principles)
Text “Stewardship / UBS AG
Number of company meetings where above votes casted
voting rights” Number of resolutions being directly related to environmental and social issues
Number of ESG engagement meetings conducted regarding environmental and social issues UBS Group

Residential real estate – 2022 actuals

Commercial real estate – 2022 actuals

Table “2030 lending
sector Fossil fuels (coal, oil and gas) – 2022 actuals
UBS Group
decarbonization Power generation – 2022 actuals
targets”
Iron and steel – 2022 actuals

Cement – 2022 actuals

Swiss residential real estate – financed emissions, scopes 1 and 2 (mt CO2e) (reported as of
31.12.2022)
Swiss commercial real estate – financed emissions, scopes 1 and 2 (mt CO2e) (reported as of
31.12.2022)
Fossil fuels (coal, oil and gas) – financed emissions, scopes 1, 2 and 3 (mt CO 2e) (reported as of
Table “Financed 31.12.2022)
emissions covered
Power generation – financed emissions, scopes 1 and 2 (mt CO2e) (reported as of 31.12.2022)
by lending sector UBS Group
decarbonization Iron and steel – financed emissions, scopes 1 and 2 (mt CO2e) (reported as of 31.12.2022)
targets”
Cement – financed emissions, scopes 1 and 2 (mt CO2e) (reported as of 31.12.2022)
Other non-financial corporates not covered by targets – financed emissions, scopes 1, 2 and 3
(mt CO2e) (reported as of 31.12.2022)
Estimated total non-financial corporates and real estate mortgages (incl. fair value loans) –
financed emissions, scopes 1, 2 and 3 (mt CO2e) (reported as of 31.12.2022)
Swiss residential real estate (scopes 1 and 2 kg CO2e / m2 ERA) (reported as of 31.12.2022)

Table “Climate- Swiss commercial real estate (scopes 1 and 2 kg CO2e / m2 ERA) (reported as of 31.12.2022)
related lending
Fossil fuels (scopes 1, 2 and 3 million metric t CO2e) (reported as of 31.12.2022) UBS AG
metrics (UBS AG
consolidated)” Power generation (scope 1 kg CO2e / MWh) (reported as of 31.12.2022)

Iron and steel (scopes 1 and 2 metric t CO2 / metric t of steel) (reported as of 31.12.2022)

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Cement (scopes 1 and 2 metric t CO2 / metric t of cementitious) (reported as of 31.12.2022)

Swiss residential real estate (scopes 1 and 2 kg CO2e / m2 ERA) (reported as of 31.12.2022)

Table “Climate- Swiss commercial real estate (scopes 1 and 2 kg CO2e / m2 ERA) (reported as of 31.12.2022)
related lending Fossil fuels (scopes 1, 2 and 3 million metric t CO2e) (reported as of 31.12.2022)
metrics (Credit Credit Suisse AG
Suisse AG Power generation (scope 1 kg CO2e / MWh) (reported as of 31.12.2022)
consolidated)”
Iron and steel (scopes 1 and 2 metric t CO2 / metric t of steel) (reported as of 31.12.2022)

Cement (scopes 1 and 2 metric t CO2 / metric t of cementitious) (reported as of 31.12.2022)

UBS Group excluding Credit
Text “Benefits and UBS Group excluding Credit Suisse’s absentee rate in 2023 (globally)
Suisse
assistance”
Credit Suisse’s absentee rate in 2023 (Switzerland) Credit Suisse

Text “Our Number of ESG shareholder resolutions voted upon (UBS AG Asset Management) UBS AG
achievements in Asset Management’s corporate engagements on climate topics achieved positive progress
2023” UBS Group
against stated objectives (%)
Table “Key climate-
and nature-related Number of companies actively engaged with on climate topics UBS Group
achievements”
Table “External Female – FA/CA (%)
hires – FA/CA UBS Group excluding Credit
gender percentage - Male – FA/CA (%) Suisse
Americas only”
Table “External Ethnic Minority – FA/CA (%)
hires – FA/CA
UBS Group excluding Credit
ethnicity White – FA/CA (%)
percentage - US Suisse
only” Other – FA/CA (%)

FA/CA (%)
Table “Turnover by UBS Group excluding Credit
Other staff (%)
FA/CA – US only” Suisse
Overall turnover (%)
Table “Turnover by
UBS Group excluding Credit
FA/CA and gender - Female – FA/CA (%)
Suisse
Americas only”
Table “FA/CAs by
UBS Group excluding Credit
gender - Americas Female – FA/CA (%)
only” Suisse

Ethnic minority – FA/CA (%)

Table “Turnover by White – FA/CA (%)
UBS Group excluding Credit
FA/CA and ethnicity
- US only” Other – FA/CA (%) Suisse

Overall turnover – FA/CA (%)

ESG integration and exclusion invested assets (USD billion)

Text “ESG
integration and ESG integration invested assets (USD billion) UBS AG
exclusion”
Exclusion invested assets (USD billion)

Exposure to climate-sensitive sectors, transition risk: Traded products, UBS AG (standalone) UBS AG
Exposure to climate-sensitive sectors, transition risk: Traded products, UBS Switzerland AG
UBS Switzerland AG
(standalone)
Exposure to climate-sensitive sectors, transition risk: Traded products, UBS Europe SE
UBS Europe SE
(standalone)
Exposure to climate-sensitive sectors, transition risk: Issuer risk, UBS AG (standalone) UBS AG
Exposure to climate-sensitive sectors, transition risk: Issuer risk, UBS Switzerland AG
UBS Switzerland AG
Risk management – (standalone)
Climate- and nature- Exposure to climate-sensitive sectors, transition risk: Issuer risk, UBS Europe SE (standalone) UBS Europe SE
related metrics
Exposure to climate-sensitive sectors, physical risk: Traded products, UBS AG (standalone) UBS AG
Exposure to climate-sensitive sectors, physical risk: Traded products, UBS Switzerland AG
UBS Switzerland AG
(standalone)
Exposure to climate-sensitive sectors, physical risk: Traded products, UBS Europe SE
UBS Europe SE
(standalone)
Exposure to climate-sensitive sectors, physical risk: Issuer risk, UBS AG (standalone) UBS AG

Exposure to climate-sensitive sectors, physical risk: Issuer risk, UBS Switzerland AG (standalone) UBS Switzerland AG

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Exposure to climate-sensitive sectors, physical risk: Issuer risk, UBS Europe SE (standalone) UBS Europe SE

Exposure to nature-related risks: Traded products, UBS AG (standalone) UBS AG

Exposure to nature-related risks: Traded products, UBS Switzerland AG (standalone) UBS Switzerland AG

Exposure to nature-related risks: Traded products, UBS Europe SE (standalone) UBS Europe SE

Exposure to nature-related risks: Issuer risk, UBS AG (standalone) UBS AG

Exposure to nature-related risks: Issuer risk, UBS Switzerland AG (standalone) UBS Switzerland AG

Exposure to nature-related risks: Issuer risk, UBS Europe SE (standalone) UBS Europe SE

Graph “Climate risk Exposure to climate-sensitive sectors, transition risk, breakdown by risk category (USD billion)
UBS Group excluding Credit
heatmap (transition Exposure to climate-sensitive sectors, transition risk, breakdown by sector and geographic
risk)” Suisse
classifier of market maturity (USD billion)
Graph “Climate risk Exposure to climate-sensitive sectors, physical risk, breakdown by risk category (USD billion)
UBS Group excluding Credit
heatmap (physical Exposure to climate-sensitive sectors, physical risk, breakdown by sector and country adaptive
risk)” Suisse
capacity (USD billion)
Graph “Climate risk Exposure to climate-sensitive sectors, nature risk, breakdown by risk category (USD billion)
UBS Group excluding Credit
heatmap (nature Exposure to climate-sensitive sectors, nature-related risk, by sector and alignment to average of
risk)” Suisse
transition and physical risk (USD billion)
2023 exposure (USD billion) by sector/subsector

Transition risk – weighted average transition risk rating 2023 by sector/subsector

Transition risk – 2023 transition risk climate-sensitive exposure (USD billion) by
Table “Risk sector/subsector
UBS Group excluding Credit
exposures by Physical risk – weighted average physical risk rating 2023 by sector/subsector
sector” Suisse
Physical risk – 2023 physical risk climate sensitive exposure (USD billion) by sector/subsector

Nature-related risk - weighted average nature-related risk rating 2023 by sector/subsector

Nature-related risk – 2023 nature-related risk climate-sensitive exposure (USD billion) by
sector/subsector
Table “UBS Europe 2023 exposure (USD million) by sector/subsector
SE climate Transition risk – 2023 transition risk climate-sensitive exposure (USD million) by
transition and
sector/subsector
physical risks UBS Europe SE
exposures and Physical risk – 2023 physical risk climate sensitive exposure (USD million) by sector/subsector
nature-related risk Nature-related risk – 2023 nature-related risk climate-sensitive exposure (USD million) by
exposures” sector/subsector
Graph “UBS Europe
SE Climate risk
Exposure to climate-sensitive sectors, transition risk, breakdown by risk category (USD billion) UBS Europe SE
heatmap (transition
risk)”
Graph “UBS Europe
SE Climate risk
Exposure to climate-sensitive sectors, physical risk, breakdown by risk category (USD billion) UBS Europe SE
heatmap (physical
risk)”
Graph “UBS Europe
SE Climate risk
Exposure to climate-sensitive sectors, nature risk, breakdown by risk category (USD billion) UBS Europe SE
heatmap (nature
risk)”

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Independent assurance report [placeholder – 8 of 9 pages]

Appendix B

Metrics covered by our reasonable assurance engagement

Section Metric Reporting Boundary

Table “Climate-
Number of climate-related resolutions voted upon
related investing UBS AG
Proportion of supported climate-related resolutions (%)
metrics”
Sustainability focus invested assets (USD billion)

Table “Sustainable Impact investing invested assets (USD billion)

UBS AG
Investments” Total sustainable investments (USD billion)

Sustainable investments proportion of total invested assets (%)

Graph “Asset
Management – Asset Management managed Sustainable Focus and Impact Investing assets (USD billion) UBS AG
2023 highlights”
Text “Leveraged Number of facilitated green, social, sustainability, or sustainability linked bond transactions
and debt capital UBS AG
markets” Total deal value of green, social, sustainability, and sustainability-linked bond transactions
Carbon-related assets UBS: Group excluding Credit Suisse UBS Group excluding
Carbon-related assets proportion of total customer lending exposure, gross (%) Credit Suisse
Carbon-related assets: UBS AG (standalone) UBS AG

Carbon-related assets: UBS Switzerland AG (standalone) UBS Switzerland AG

Carbon-related assets: UBS Europe SE (standalone) UBS Europe SE

Exposure to climate-sensitive sectors, transition risk: UBS Group excluding Credit Suisse
UBS Group excluding
Table “Risk Climate-sensitive sectors, transition risk, proportion of total customer lending exposure, gross
Credit Suisse
management – (%)
Climate- and Exposure to climate-sensitive sectors, transition risk: UBS AG (standalone) UBS AG
nature-related
Exposure to climate-sensitive sectors, transition risk: UBS Switzerland AG (standalone) UBS Switzerland AG
metrics”
Exposure to climate-sensitive sectors, transition risk: UBS Europe SE (standalone) UBS Europe SE
Exposure to climate-sensitive sectors, physical risk: UBS Group excluding Credit Suisse UBS Group excluding
Climate-sensitive sectors, physical risk, proportion of total customer lending exposure, gross (%) Credit Suisse
Exposure to climate-sensitive sectors, physical risk: UBS AG (standalone) UBS AG

Exposure to climate-sensitive sectors, physical risk: UBS Switzerland AG (standalone) UBS Switzerland AG

Exposure to climate-sensitive sectors, physical risk: UBS Europe SE (standalone) UBS Europe SE

Sustainability Report 2023 | Appendix 4 | Other supplemental information 166

Key terms and definitions

Sustainability
Is 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 on 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, 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 which incentivize the borrower / 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.
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
Global Reporting Initiative (GRI): Provider of the world’s most widely used sustainability disclosure standards (the
GRI Standards).

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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.
Taskforce on Nature-related Financial Disclosures (TNFD): Provider of nature-related financial disclosure
recommendations designed to help companies provide better information to support informed capital allocation.
Value Reporting Foundation SASB Standards: Disclosure standards to guide the disclosure of officially declared
material sustainability information by companies to their investors.
World Economic Forum International Business Council (WEF IBC): Provider of the Stakeholder Capitalism Metrics,
which offer a set of universal, comparable disclosures focused on people, planet, prosperity and governance that
companies can report on, regardless of industry or region.
Materiality assessments
With regard to the materiality assessments included in this report (GRI-based and climate-related), the GRI requires
companies to determine material topics that “represent the organization’s most significant impacts on the
economy, environment, and people, including impacts on their human rights.” 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 might have on the company performance.
Aspiration
Desire to achieve a particular goal.
Ambition(s)
Ambitions are parts of a long-term vision detailing what results a company aspires to accomplish and by when.
Target(s)
Targets are smaller, interim steps or milestones towards an ambition that are aligned with its details. As individuals
and teams within the organization reach their targets, the organization makes progress towards the ultimate
ambition(s).

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Abbreviations frequently used in our sustainability report
A
ADA Artificial Intelligence and Data Analytics
AMAS Asset Management Association Switzerland
AML anti-money laundering
AuM assets under management
ASIP Association Suisse des Institutions de Prévoyance

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
BIS Bank for International Settlements
BoD Board of Directors
BoE Bank of England

C
CCRC Corporate Culture and Responsibility Committee
CCS carbon capture and storage
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
CPS current policies scenario
CSRD Corporate Sustainability Reporting Directive

D
DAF donor-advised fund
DJSI Dow Jones Sustainability Indices

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

F
FATF Financial Action Task Force
FCT foreign currency translation
FINMA Swiss Financial Market Supervisory Authority
FTE full-time employee
FX foreign exchange

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G
GARP Global Association of Risk Professionals
GCFO Group Chief Financial Officer
GCRG Group Compliance, Regulatory & Governance
GEB Group Executive Board
GFA Group Franchise Awards
GFANZ Glasgow Financial Alliance for Net Zero
GHG greenhouse gas
GIA Group Internal Audit
GICS Global Industry Classification Standard
GRI Global Reporting Initiative

H
HR human resources

I
IAS International Accounting Standards
IASB International Accounting Standards Board
ICMA International Capital Market Association
ICMM International Council on Mining and Metals
IFRIC International Financial Reporting Interpretations Committee
IFRS International Financial Reporting Standards
IIF Institute of International Finance
IPCC Intergovernmental Panel for Climate Change
ISO International Organization for Standardization

K
KRT key risk taker

L
LEED Leadership in Energy and Environmental Design
LoD lines of defense
LRD leverage ratio denominator
LTIP Long-Term Incentive Plan
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
NZAMi Net Zero Asset Managers initiative
NZBA Net-Zero Banking Alliance
NZE Net-Zero Emissions by 2050 Scenario

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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
POCI purchased or originated credit-impaired
PRA UK Prudential Regulation Authority
PRB Principles for Responsible Banking
PRI Principles for Responsible Investment

Q
QED Quant Evidence & Data Science

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

S
SBC Swiss Bank Corporation
sCFO Sustainability Chief Financial Officer
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
SECO State Secretariat for Economic Affairs
SFDR Sustainable Finance Disclosure Regulation
SFWG Sustainable Finance Working Group (IIF)
SI sustainable investment
SIFI SDG Impact Finance Initiative
SII UBS Sustainability and Impact Institute
SIX SIX Swiss Exchange
SME small and medium-sized entities
SNB Swiss National Bank
SRI socially responsible investment

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

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

V
VaR value-at-risk

W
WFSF Wolfsberg Forum for Sustainable Finance

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

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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 2023, 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 2023, 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.

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