WHATX/ESG_Report · Datasets at Hugging Face

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Global Wealth Management.
Personal & Corporate Banking.
Asset Management.
Investment Bank.
Sustainability Advisory Group / Group Functions.
Sustainability and Climate Task Force.
Group Risk Control Sustainability and Climate Risk Program Investor Protection Program Net-Zero Program In-House Environmental Program1 1 Also represents the Responsible Supply Chain Program.
UBS sustainability governance.
Governance and Nominating Committee.
Sustainability Chief Financial Offi cer 20


Sustainability Report 2022 \| Governance 21.
Our Group Executive Board (the GEB) develops the strategy for the Group. It is responsible for managing our assets and liabilities in line with the Group’s strategy, regulatory commitments and 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. It has overall responsibility for establishing and implementing risk management and control in our firm. The responsibility for setting the sustainability and impact strategy and developing Group-wide sustainability and impact objectives, in agreement with fellow GEB members, has been delegated to the GEB Lead for Sustainability and Impact by the Group chief executive officer (the Group CEO). Progress against strategy and the associated targets are reviewed at least once a year by the GEB and the CCRC.
Our GEB Lead for Sustainability and Impact manages the Group Sustainability and Impact (GSI) organization and, together with our Chief Sustainability Officer (the CSO), co-chairs the Sustainability and Climate Task Force (the SCTF). Both our GEB Lead for Sustainability and Impact and our CSO are also permanent guests of the CCRC.
Group Sustainability and Impact.
GSI consists of the Chief Sustainability Office and the Social Impact Office, headed by the CSO and Head Social Impact, respectively. The CSO is responsible for driving the implementation of the Group-wide sustainability and impact strategy, including reporting on our progress toward net zero (and the execution thereof by our business divisions and Group Functions).
The Head 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 Social Impact, the regional Heads of Social Impact and Philanthropy are responsible for extending the reach of and maximizing the impact 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 reporting. 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 is certified according to ISO 14001. › Refer to the “Appendix 2 – Governance” section of this report for additional information on our sustainability governance.
The Sustainability and Climate Task Force.
The Sustainability and Climate Task Force (the SCTF) is the authority for divisional and functional sustainability and climate governance, as well as the Group’s sustainability and climate governance. The SCTF’s role includes the approval of the actions required to achieve our firm’s climate strategy, monitoring progress against that strategy and providing assurances to the GEB that UBS manages climate risk and opportunities in a proper manner.
Firm-wide sustainability groups.
The Sustainable Finance Group The Sustainable Finance Group (the SFG) is chaired by the CSO and supports the implementation of the sustainability and impact strategy as it relates to sustainable finance across the firm. › Refer to the “Our approach to sustainable finance” section above for a more detailed description of the SFG.
The Sustainability Advisory Group The Sustainability Advisory Group (the SAG) is chaired by the CSO and is organized by the SAG’s convener, who has a reporting line to the CSO. It provides a mechanism for disseminating and cascading relevant information regarding Group-wide sustainability and impact efforts into UBS’s various control and aligned functions.
Governance of key areas.
Sustainability and climate risk Our management of sustainability and climate risk (SCR) is steered at the GEB level. Reporting to the Group CEO, the Group Chief Risk Officer is responsible for the development and implementation of control principles and an appropriate independent control framework for SCR within UBS, together with its integration into the firm’s overall risk management and risk appetite frameworks. Our SCR Policy Framework is applied Group-wide to relevant activities, including client and supplier relationships. › Refer to the “Appendix 2 – Governance” section of this report for more details about our SCR Policy Framework 21


Sustainability Report 2022 \| Governance 22.
The Sustainability Chief Financial Officer Our Sustainability Chief Financial Officer (SCFO) supports the new and expanding requirements that are being driven by our global sustainability agenda. With reporting lines both to the Group Chief Financial Officer (GCFO) and to the GEB lead for Sustainability and Impact, the SCFO works closely with the Group Controller and 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, supports the expanding external sustainability disclosures arising from both new regulatory requirements and voluntary commitments made by our firm, and ensures the continued development of the financial control environment that underpins our disclosures.
The Net-Zero Program The Net-Zero Program (the NZP) coordinates implementation of the commitments set out in our “Net Zero and Beyond” statement, with a specific focus on reducing emissions related to our financing activities. The NZP reports into the SCTF and includes members from various Group functions and those teams that support our clients with financing.
The Investor Protection Program The Investor Protection Program coordinates the implementation of several sustainability-related regulations of the European Union, the European Economic Area, the UK, Switzerland, Singapore, the Hong Kong SAR and the US, as well as related parts around UBS’s own commitments, in the context of client investments. The regulations are designed to provide clients with transparency and comparability of sustainable investment products, helping them align investments with their sustainability objectives. They require the integration of ESG metrics into our investment portfolio and risk management processes, as well as reporting to clients and regulators.
In-house environmental management Our in-house environmental management is steered by the Chief Digital and Information Office (the CDIO). Reporting to the Group CEO, the CDIO is responsible for driving the reduction of the environmental impact from our offices, our technology and our supply chain. The CDIO implements the sustainability and impact strategy within UBS’s operations by ensuring local legal compliance, monitoring and measuring of environmental and energy performance, and continuous improvement according to ISO 14001, the international environmental management standard, and ISO 50001 (Region EMEA).
Other key topics.
Nature Our approach to nature is overseen by the BoD, in particular by the CCRC, as part of its responsibility for sustainability topics. In 2022, the CCRC received its first dedicated update 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. We expect these updates to continue annually.
The GEB is responsible for driving our nature-related efforts, as part of its sustainability and impact activities. GSI then coordinates these efforts and provides periodic updates to the GEB through GSI strategy management reports. The business divisions and Group Functions ensure the implementation of UBS’s nature-related strategy and risk management frameworks.
Human rights As set out in our Human Rights Statement, the governance set out above also applies to our commitment to respect internationally recognized human rights across our firm globally. › Refer to ubs.com/gri for the UBS 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 the “Appendix 2 – Governance” section of this report for more details on financial crime prevention.
Diversity, Equity & Inclusion 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 on DE&I 22


Sustainability Report 2022 \| Environment 23.
Environment.
Taking action on a net-zero future.
We recognize the vital importance of taking action to support the transition to a low-carbon economy. By 2050, we are aiming to achieve net-zero greenhouse gas (GHG) emissions for scopes 1, 2 and 3 across our business, in line with fiduciary duties. Our climate roadmap sets out how we aim to get there. It comprises three key aspects: – net zero to reduce our direct climate impact; – net zero to support the transition of our financing clients; and – net zero to support the transition of the assets of our investing clients.
We are committed to standing with our clients to help them achieve their net-zero goals and to support the work governments around the world are doing to move the real economy to align with the Paris Agreement 1.5°C commitment. In Switzerland, where our firm has its headquarters, we look forward to partnering with regulators to identify appropriate goals for financial institutions under the country’s CO2-Act.
Direct climate impact: In 2022, we reduced our scope 1 and 2 emissions by 13%. We also identified “GHG key vendors,” that collectively account for more than 50% of our estimated vendor GHG emissions. We invited the vendors that accounted for 67% of our annual vendor spend to disclose their environmental performance through CDP’s Supply Chain Program. 66% of those invited completed these disclosures.
Financing activities: We have established interim goals aligned with this objective for real estate lending across all of our business divisions and for other financing activities in our Investment Bank and our Personal & Corporate Banking. In 2022, we defined cement as a further net-zero target sector and added it to the scope of our roadmap for the Investment Bank and Personal & Corporate Banking. We also undertook further assessment of the overall emissions associated with UBS’s corporate lending and real estate mortgages. We intend to set additional goals for financing activities across all of our business divisions as appropriate data and methodologies are developed.
Investing: In 2022, our Asset Management business division made progress across the foundational pillars required to deliver its target of aligning 20% of total assets under management (AuM) to be managed in line with net zero by 2030.1 This included enhanced data sourcing and governance, developing asset-class-specific net-zero-aligned frameworks, and extending our long-standing climate engagement program. In 2023, Asset Management intends to implement revisions to fund documentation and investment management agreements to align with these updated frameworks. Our Global Wealth Management business division will develop plans to expand its solutions offering to enable clients to achieve their net zero objectives. In 2022, Global Wealth Management continued to leverage its knowledge and industry partnerships to explore and develop carbon-focused offerings. › Refer to the “Appendix 3 – Environment” section of this report for our climate-related methodologies › Refer to “Our transition plan” in the “Appendix 3 – Environment” section of this report for a high-level overview of our activities to support our own transition and that of our counterparties in the real economy 1 The 20% alignment goal amounted to USD 235 billion at the time of 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.
23


Sustainability Report 2022 \| Environment 24.
Our climate roadmap.
Our climate roadmap – what we are aiming for.
Founding member of the Net Zero Asset Managers initiative.
Addressing our own emissions.
Addressing the emissions of our lending activities (from 2020 levels)
Addressing our supply chain.
Net zero across our activities (scopes 1, 2 and 3) – in line with fi duciary duties • Achieve net-zero scope 1 and 2 emissions • Reduce our own energy consumption by 15% from 2020 levels • Offset historical emissions from own operations back to 2000 • Net-zero GHG emissions by our key vendors.
Commitment to net zero by 2050 and founding member of the Net-Zero Banking Alliance (the NZBA) and the Glasgow Financial Alliance for Net Zero (GFANZ) 2021 by 2025 by 2030 by 2035 by 2050 • Reduce emissions intensity associated with UBS lending to: – residential real estate by 42% – commercial real estate by 44% – power generation by 49% – cement by 15% • Reduce absolute fi nanced emissions associated with UBS lending to: – fossil fuels by 71% 2020 2022 Advisory vote on the climate roadmap passed by shareholders at the Annual General Meeting 24


Sustainability Report 2022 \| Environment 25.
Key climate- and nature-related achievements.
Key thematic areas Progress in 2022.
Governance and strategy – Established the Sustainability and Climate Task Force to steer our firm’s efforts on climate. – Established the Nature Working Group to explore and advance on our firm’s nature agenda. – Oversaw climate and nature strategy and activities at the highest level of our firm. – Continued assignment of environmental, social and governance (ESG-)related goals for all GEB members. – Formulated the UBS transition plan to support our own transition and that of our counterparties.
Risk management – Further advanced our transition risk and physical risk heatmap methodologies to inform our climate risk management. – Engaged with 141 companies on climate. – Voted upon climate-related resolutions at 160 companies. – Enhanced the UBS climate materiality assessment that maps out material climate-related risks and opportunities.
Metrics and targets – Set net-zero target for 2030 for lending to the cement sector. – Made progress on the net-zero targets set in 2021 for lending to the fossil fuels, power generation and real estate sectors. – Reduced net GHG footprint for scope 1 and 2 emissions by 13%.
External recognition – Awarded top ratings and rankings by industry experts: – CDP: Climate A List; – S&P Global’s Dow Jones Sustainability Index: 99% percentile ranking in the environmental dimension; – GARP: providing leading practice in climate risk management.
Our climate-related metrics.
Evolving our climate-related metrics We have developed methodologies, which we use to set our climate-related targets and identify climate-related risks. These methodologies 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.
Our climate targets and ambitions are high level goals that have been set based on the methodologies, data and assumptions that we currently use. Changes to these methodologies, data and assumptions may affect our progress toward intermediate targets and ambitions and the achievability of net zero and other climate goals. Our 2050 netzero targets, and related ambitions for scope 3 emissions, have a critical dependency on overall progress across all sectors and countries towards net-zero carbon emissions which requires substantial governmental action across many jurisdictions. In the absence of such progress, our goals with respect to scope 3 emissions will not be achievable.
25


Sustainability Report 2022 \| Environment 26.
Climate-related metrics 2022 For the year ended % change from 331.12.22 31.12.21 31.12.20 31.12.21.
Risk management.
Carbon-related assets (USD billion)1,2 33.8 36.5 37.1 (7.4) of which: UBS AG 8.9 10.1 11.0 (11.9) of which: UBS Switzerland AG 224.6 26.0 25.4 (5.4) of which: UBS ESE 0.3 0.3 0.6 0.0.
Proportion of total customer lending exposure, gross (%) 77.5 8.0 8.6.
Total exposure to climate-sensitive sectors, transition risk (USD billion)2, 3, 4 24.9 27.3 27.1 (8.8) of which: UBS AG 5.4 6.7 7.5 (19.4) of which: UBS Switzerland AG 119.3 20.4 19.2 (5.4) of which: UBS ESE 0.1 0.2 0.4 (50.0)
Proportion of total customer lending exposure, gross (%) 5.5 5.9 6.2.
Total exposure to climate-sensitive sectors, physical risk (USD billion)2, 3, 4 30.0 31.9 35.0 (6.0) of which: UBS AG 111.6 13.3 18.3 (12.8) of which: UBS Switzerland AG 117.7 18.2 16.2 (2.7) of which: UBS ESE 0.3 0.3 0.3 0.0.
Proportion of total customer lending exposure, gross (%) 66.7 7.0 8.0.
Total exposure to nature-related risks (USD billion)2,5 44.0 42.9 42.8 2.6.
Proportion of total customer lending exposure, gross (%) 99.8 9.3 9.8.
Opportunities.
Number of green, sustainability, and sustainability-linked bond deals6 69 98 29 (29.6)
Total deal value of green, sustainability, and sustainability-linked bond deals (USD billion)6 42.4 63.3 19.3.
UBS-apportioned deal value of above (USD billion) 8.8 13.2 5.7.
Portfolio emissions7.
Weighted average carbon intensity – active equity assets (in metric tons CO2e per USD million of revenue) 1130.4 109.8 % AuM weighted average carbon intensity below benchmark (active equity) 775.7 0.6.
Weighted average carbon intensity – active fixed income assets (in metric tons CO2e per USD million of revenue) 1145.3 198.0 % AuM weighted average carbon intensity below benchmark (active fixed income) 663.5 0.8.
Weighted average carbon intensity – indexed equity assets (in metric tons CO2e per USD million of revenue) 128.3 128.9.
Weighted average carbon intensity – indexed fixed income assets (in metric tons CO2e per USD million of revenue) 1139.8 169.8.
Weighted average carbon intensity – Direct Real Estate (in metric tons CO2e per square meter)8 34.6.
Stewardship – Voting.
Number of climate-related resolutions voted upon9 1160 89 50 79.8.
Proportion of supported climate-related resolutions (%) 771.2 78.6 88.0.

Global Wealth Management.

Personal & Corporate Banking.

Asset Management.

Investment Bank.

Sustainability Advisory Group / Group Functions.

Sustainability and Climate Task Force.

Group Risk Control Sustainability and Climate Risk Program Investor Protection Program Net-Zero Program In-House Environmental Program1 1 Also represents the Responsible Supply Chain Program.

UBS sustainability governance.

Governance and Nominating Committee.

Sustainability Chief Financial Offi cer 20

Sustainability Report 2022 | Governance 21.

Our Group Executive Board (the GEB) develops the strategy for the Group. It is responsible for managing our assets and liabilities in line with the Group’s strategy, regulatory commitments and 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. It has overall responsibility for establishing and implementing risk management and control in our firm. The responsibility for setting the sustainability and impact strategy and developing Group-wide sustainability and impact objectives, in agreement with fellow GEB members, has been delegated to the GEB Lead for Sustainability and Impact by the Group chief executive officer (the Group CEO). Progress against strategy and the associated targets are reviewed at least once a year by the GEB and the CCRC.

Our GEB Lead for Sustainability and Impact manages the Group Sustainability and Impact (GSI) organization and, together with our Chief Sustainability Officer (the CSO), co-chairs the Sustainability and Climate Task Force (the SCTF). Both our GEB Lead for Sustainability and Impact and our CSO are also permanent guests of the CCRC.

Group Sustainability and Impact.

GSI consists of the Chief Sustainability Office and the Social Impact Office, headed by the CSO and Head Social Impact, respectively. The CSO is responsible for driving the implementation of the Group-wide sustainability and impact strategy, including reporting on our progress toward net zero (and the execution thereof by our business divisions and Group Functions).

The Head 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 Social Impact, the regional Heads of Social Impact and Philanthropy are responsible for extending the reach of and maximizing the impact 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 reporting. 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 is certified according to ISO 14001. › Refer to the “Appendix 2 – Governance” section of this report for additional information on our sustainability governance.

The Sustainability and Climate Task Force.

The Sustainability and Climate Task Force (the SCTF) is the authority for divisional and functional sustainability and climate governance, as well as the Group’s sustainability and climate governance. The SCTF’s role includes the approval of the actions required to achieve our firm’s climate strategy, monitoring progress against that strategy and providing assurances to the GEB that UBS manages climate risk and opportunities in a proper manner.

Firm-wide sustainability groups.

The Sustainable Finance Group The Sustainable Finance Group (the SFG) is chaired by the CSO and supports the implementation of the sustainability and impact strategy as it relates to sustainable finance across the firm. › Refer to the “Our approach to sustainable finance” section above for a more detailed description of the SFG.

The Sustainability Advisory Group The Sustainability Advisory Group (the SAG) is chaired by the CSO and is organized by the SAG’s convener, who has a reporting line to the CSO. It provides a mechanism for disseminating and cascading relevant information regarding Group-wide sustainability and impact efforts into UBS’s various control and aligned functions.

Governance of key areas.

Sustainability and climate risk Our management of sustainability and climate risk (SCR) is steered at the GEB level. Reporting to the Group CEO, the Group Chief Risk Officer is responsible for the development and implementation of control principles and an appropriate independent control framework for SCR within UBS, together with its integration into the firm’s overall risk management and risk appetite frameworks. Our SCR Policy Framework is applied Group-wide to relevant activities, including client and supplier relationships. › Refer to the “Appendix 2 – Governance” section of this report for more details about our SCR Policy Framework 21

Sustainability Report 2022 | Governance 22.

The Sustainability Chief Financial Officer Our Sustainability Chief Financial Officer (SCFO) supports the new and expanding requirements that are being driven by our global sustainability agenda. With reporting lines both to the Group Chief Financial Officer (GCFO) and to the GEB lead for Sustainability and Impact, the SCFO works closely with the Group Controller and 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, supports the expanding external sustainability disclosures arising from both new regulatory requirements and voluntary commitments made by our firm, and ensures the continued development of the financial control environment that underpins our disclosures.

The Net-Zero Program The Net-Zero Program (the NZP) coordinates implementation of the commitments set out in our “Net Zero and Beyond” statement, with a specific focus on reducing emissions related to our financing activities. The NZP reports into the SCTF and includes members from various Group functions and those teams that support our clients with financing.

The Investor Protection Program The Investor Protection Program coordinates the implementation of several sustainability-related regulations of the European Union, the European Economic Area, the UK, Switzerland, Singapore, the Hong Kong SAR and the US, as well as related parts around UBS’s own commitments, in the context of client investments. The regulations are designed to provide clients with transparency and comparability of sustainable investment products, helping them align investments with their sustainability objectives. They require the integration of ESG metrics into our investment portfolio and risk management processes, as well as reporting to clients and regulators.

In-house environmental management Our in-house environmental management is steered by the Chief Digital and Information Office (the CDIO). Reporting to the Group CEO, the CDIO is responsible for driving the reduction of the environmental impact from our offices, our technology and our supply chain. The CDIO implements the sustainability and impact strategy within UBS’s operations by ensuring local legal compliance, monitoring and measuring of environmental and energy performance, and continuous improvement according to ISO 14001, the international environmental management standard, and ISO 50001 (Region EMEA).

Other key topics.

Nature Our approach to nature is overseen by the BoD, in particular by the CCRC, as part of its responsibility for sustainability topics. In 2022, the CCRC received its first dedicated update 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. We expect these updates to continue annually.

The GEB is responsible for driving our nature-related efforts, as part of its sustainability and impact activities. GSI then coordinates these efforts and provides periodic updates to the GEB through GSI strategy management reports. The business divisions and Group Functions ensure the implementation of UBS’s nature-related strategy and risk management frameworks.

Human rights As set out in our Human Rights Statement, the governance set out above also applies to our commitment to respect internationally recognized human rights across our firm globally. › Refer to ubs.com/gri for the UBS 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 the “Appendix 2 – Governance” section of this report for more details on financial crime prevention.

Diversity, Equity & Inclusion 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 on DE&I 22

Sustainability Report 2022 | Environment 23.

Environment.

Taking action on a net-zero future.

We recognize the vital importance of taking action to support the transition to a low-carbon economy. By 2050, we are aiming to achieve net-zero greenhouse gas (GHG) emissions for scopes 1, 2 and 3 across our business, in line with fiduciary duties. Our climate roadmap sets out how we aim to get there. It comprises three key aspects: – net zero to reduce our direct climate impact; – net zero to support the transition of our financing clients; and – net zero to support the transition of the assets of our investing clients.

We are committed to standing with our clients to help them achieve their net-zero goals and to support the work governments around the world are doing to move the real economy to align with the Paris Agreement 1.5°C commitment. In Switzerland, where our firm has its headquarters, we look forward to partnering with regulators to identify appropriate goals for financial institutions under the country’s CO2-Act.

Direct climate impact: In 2022, we reduced our scope 1 and 2 emissions by 13%. We also identified “GHG key vendors,” that collectively account for more than 50% of our estimated vendor GHG emissions. We invited the vendors that accounted for 67% of our annual vendor spend to disclose their environmental performance through CDP’s Supply Chain Program. 66% of those invited completed these disclosures.

Financing activities: We have established interim goals aligned with this objective for real estate lending across all of our business divisions and for other financing activities in our Investment Bank and our Personal & Corporate Banking. In 2022, we defined cement as a further net-zero target sector and added it to the scope of our roadmap for the Investment Bank and Personal & Corporate Banking. We also undertook further assessment of the overall emissions associated with UBS’s corporate lending and real estate mortgages. We intend to set additional goals for financing activities across all of our business divisions as appropriate data and methodologies are developed.

Investing: In 2022, our Asset Management business division made progress across the foundational pillars required to deliver its target of aligning 20% of total assets under management (AuM) to be managed in line with net zero by 2030.1 This included enhanced data sourcing and governance, developing asset-class-specific net-zero-aligned frameworks, and extending our long-standing climate engagement program. In 2023, Asset Management intends to implement revisions to fund documentation and investment management agreements to align with these updated frameworks. Our Global Wealth Management business division will develop plans to expand its solutions offering to enable clients to achieve their net zero objectives. In 2022, Global Wealth Management continued to leverage its knowledge and industry partnerships to explore and develop carbon-focused offerings. › Refer to the “Appendix 3 – Environment” section of this report for our climate-related methodologies › Refer to “Our transition plan” in the “Appendix 3 – Environment” section of this report for a high-level overview of our activities to support our own transition and that of our counterparties in the real economy 1 The 20% alignment goal amounted to USD 235 billion at the time of 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.

23

Sustainability Report 2022 | Environment 24.

Our climate roadmap.

Our climate roadmap – what we are aiming for.

Founding member of the Net Zero Asset Managers initiative.

Addressing our own emissions.

Addressing the emissions of our lending activities (from 2020 levels)

Addressing our supply chain.

Net zero across our activities (scopes 1, 2 and 3) – in line with fi duciary duties • Achieve net-zero scope 1 and 2 emissions • Reduce our own energy consumption by 15% from 2020 levels • Offset historical emissions from own operations back to 2000 • Net-zero GHG emissions by our key vendors.

Commitment to net zero by 2050 and founding member of the Net-Zero Banking Alliance (the NZBA) and the Glasgow Financial Alliance for Net Zero (GFANZ) 2021 by 2025 by 2030 by 2035 by 2050 • Reduce emissions intensity associated with UBS lending to: – residential real estate by 42% – commercial real estate by 44% – power generation by 49% – cement by 15% • Reduce absolute fi nanced emissions associated with UBS lending to: – fossil fuels by 71% 2020 2022 Advisory vote on the climate roadmap passed by shareholders at the Annual General Meeting 24

Sustainability Report 2022 | Environment 25.

Key climate- and nature-related achievements.

Key thematic areas Progress in 2022.

Governance and strategy – Established the Sustainability and Climate Task Force to steer our firm’s efforts on climate. – Established the Nature Working Group to explore and advance on our firm’s nature agenda. – Oversaw climate and nature strategy and activities at the highest level of our firm. – Continued assignment of environmental, social and governance (ESG-)related goals for all GEB members. – Formulated the UBS transition plan to support our own transition and that of our counterparties.

Risk management – Further advanced our transition risk and physical risk heatmap methodologies to inform our climate risk management. – Engaged with 141 companies on climate. – Voted upon climate-related resolutions at 160 companies. – Enhanced the UBS climate materiality assessment that maps out material climate-related risks and opportunities.

Metrics and targets – Set net-zero target for 2030 for lending to the cement sector. – Made progress on the net-zero targets set in 2021 for lending to the fossil fuels, power generation and real estate sectors. – Reduced net GHG footprint for scope 1 and 2 emissions by 13%.

External recognition – Awarded top ratings and rankings by industry experts: – CDP: Climate A List; – S&P Global’s Dow Jones Sustainability Index: 99% percentile ranking in the environmental dimension; – GARP: providing leading practice in climate risk management.

Our climate-related metrics.

Evolving our climate-related metrics We have developed methodologies, which we use to set our climate-related targets and identify climate-related risks. These methodologies 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.

Our climate targets and ambitions are high level goals that have been set based on the methodologies, data and assumptions that we currently use. Changes to these methodologies, data and assumptions may affect our progress toward intermediate targets and ambitions and the achievability of net zero and other climate goals. Our 2050 netzero targets, and related ambitions for scope 3 emissions, have a critical dependency on overall progress across all sectors and countries towards net-zero carbon emissions which requires substantial governmental action across many jurisdictions. In the absence of such progress, our goals with respect to scope 3 emissions will not be achievable.

25

Sustainability Report 2022 | Environment 26.

Climate-related metrics 2022 For the year ended % change from 331.12.22 31.12.21 31.12.20 31.12.21.

Risk management.

Carbon-related assets (USD billion)1,2 33.8 36.5 37.1 (7.4) of which: UBS AG 8.9 10.1 11.0 (11.9) of which: UBS Switzerland AG 224.6 26.0 25.4 (5.4) of which: UBS ESE 0.3 0.3 0.6 0.0.

Proportion of total customer lending exposure, gross (%) 77.5 8.0 8.6.

Total exposure to climate-sensitive sectors, transition risk (USD billion)2, 3, 4 24.9 27.3 27.1 (8.8) of which: UBS AG 5.4 6.7 7.5 (19.4) of which: UBS Switzerland AG 119.3 20.4 19.2 (5.4) of which: UBS ESE 0.1 0.2 0.4 (50.0)

Proportion of total customer lending exposure, gross (%) 5.5 5.9 6.2.

Total exposure to climate-sensitive sectors, physical risk (USD billion)2, 3, 4 30.0 31.9 35.0 (6.0) of which: UBS AG 111.6 13.3 18.3 (12.8) of which: UBS Switzerland AG 117.7 18.2 16.2 (2.7) of which: UBS ESE 0.3 0.3 0.3 0.0.

Proportion of total customer lending exposure, gross (%) 66.7 7.0 8.0.

Total exposure to nature-related risks (USD billion)2,5 44.0 42.9 42.8 2.6.

Proportion of total customer lending exposure, gross (%) 99.8 9.3 9.8.

Opportunities.

Number of green, sustainability, and sustainability-linked bond deals6 69 98 29 (29.6)

Total deal value of green, sustainability, and sustainability-linked bond deals (USD billion)6 42.4 63.3 19.3.

UBS-apportioned deal value of above (USD billion) 8.8 13.2 5.7.

Portfolio emissions7.

Weighted average carbon intensity – active equity assets (in metric tons CO2e per USD million of revenue) 1130.4 109.8 % AuM weighted average carbon intensity below benchmark (active equity) 775.7 0.6.

Weighted average carbon intensity – active fixed income assets (in metric tons CO2e per USD million of revenue) 1145.3 198.0 % AuM weighted average carbon intensity below benchmark (active fixed income) 663.5 0.8.

Weighted average carbon intensity – indexed equity assets (in metric tons CO2e per USD million of revenue) 128.3 128.9.

Weighted average carbon intensity – indexed fixed income assets (in metric tons CO2e per USD million of revenue) 1139.8 169.8.

Weighted average carbon intensity – Direct Real Estate (in metric tons CO2e per square meter)8 34.6.

Stewardship – Voting.

Number of climate-related resolutions voted upon9 1160 89 50 79.8.

Proportion of supported climate-related resolutions (%) 771.2 78.6 88.0.