WHATX/ESG_Report · Datasets at Hugging Face

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154


Sustainability Report 2022 \| Appendix 5 \| Other 155.
EU Non-financial disclosures.
Risk evaluation.
Pursuant to the requirements 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 law.
Developments in sustainability, climate, environmental and social standards and regulations may affect our business and impact our ability to fully realize our goals. We have set ambitious goals for environmental, social and governance (ESG) matters. 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 ambitions 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, and regulatory taxonomies and disclosure obligations addressing these matters are relatively immature and are rapidly evolving. In many cases, goals and standards are defined at a high level and can be subject to different interpretations. 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 aspirations. 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 UBS is 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 and 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 Russia–Ukraine war, 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.
155


Sustainability Report 2022 \| Appendix 5 \| Other 156.
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 Group Executive Board (GEB) members, as well as certain other employees. › Refer to the “Risk factors” and “Regulation and legal developments” sections of our Annual Report 2022 for more information 156


Sustainability Report 2022 \| Appendix 5 \| Other 157.
Non-financial disclosures in accordance with the German law implementing EU directive 2014/95.
This Sustainability Report and our Annual Report 2022 also include our firm’s disclosures of non-financial information required by the German law implementing EU directive 2014/95 (CSR-Richtlinie-Umsetzungsgesetz, or CSR-RUG). 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, the material topics listed in the CSR-RUG index are limited to the matters (“Belange”) addressed by CSR-RUG. All references to our Annual Report 2022 references to the combined UBS Group AG and UBS AG Annual Report 2022 available at ubs.com/investors.
Section in Sustainability Report 2022 (SR 2022) / Annual Report 2022 (AR 2022) Page(s)
About this report (including framework) About this report SR 2022 / 7.
Description of the business model Our strategy, business model and environment.
Our sustainability and impact strategy.
AR 2022 / 15–66.
SR 2022 / 8–10.
Material risks Risk evaluation SR 2022 / 155–156.
Non-financial aspects Section in Sustainability Report 2022 (SR) / Annual Report 2022 (AR) Page(s)
Broad thematic issues affecting all non-financial aspects.
Our focus on sustainability and climate.
Sustainability and climate risk.
The importance of sustainability to UBS.
Governance.
Key policies and principles.
Our approach to sustainable finance.
UBS Sustainability objectives and achievements 2022 and objectives 2023.
AR 2022 / 43–50.
AR 2022 / 122–129.
SR 2022 / 4–5.
SR 2022 / 20–22.
SR 2022 / 104–105.
SR 2022 / 11–19.
SR 2022 / 145–154.
Environmental and human rights matters (Material topics: Climate and nature; Social impact and human rights; Sustainable finance)
Society.
Our sustainability and impact strategy.
Supporting our strategy – our stakeholder engagement / vendors.
Managing our supply chain responsibly.
Environment.
Our sustainability and climate risk policy framework.
Inclusive growth.
Driving social impact.
Respecting human rights.
Reducing our environmental footprint – additional information.
AR 2022 / 41–42.
SR 2022 / 8–10.
SR 2022 / 86.
SR 2022 / 74–75.
SR 2022 / 23–61.
SR 2022 / 93–99.
SR 2022 / 76–77.
SR 2022 / 70–72.
SR 2022 / 73.
SR 2022 / 122–128.
Social and employee matters (Employees)
Our sustainability and impact strategy.
People and culture make the difference.
SR 2022 / 8–10.
SR 2022 / 63–69.
Anti-corruption and bribery matters (Combating financial crime as a subtopic of Regulatory compliance)
Combating financial crime.
Financial crime prevention.
SR 2022 / 100–101.
AR 2022 / 51 157


Sustainability Report 2022 \| Appendix 5 \| Other 158.
Information on UBS AG and UBS Europe SE 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 Delegated Act of EU Taxonomy Regulation 2020/852. Article 8 of that Regulation requires entities, that are subject to Directive 2014/95/EU, the Non-financial Reporting Directive (the NFRD), to provide information to investors about the environmental performance of their assets and their economic activities with other counterparties subject to NFRD reporting. Under these regulations, UBS AG is required to provide information on a standalone basis, and UBS Europe SE on a consolidated basis on taxonomy-eligible activities, alongside other qualitative information. The 2021 reporting period was the first reporting period for UBS AG and UBS Europe SE to disclose information, leveraging industry representation codes to determine taxonomy-eligible activities. Starting from the 2022 reporting period, UBS AG and UBS Europe SE are required to use the most recently available information disclosed by investees or counterparties for their eligibility reporting. Eligible activities are economic activities as described in the relevant delegated acts of the EU Taxonomy irrespective of whether that activity meets any of the technical screening criteria. Various exclusions apply, with the following excluded from the numerator in the eligibility calculation: – trading assets (also excluded from the denominator in the eligibility calculation); – assets with governments, central banks and supranationals (also excluded from the denominator in the eligibility calculation); – derivatives and cash collateral receivables on derivative instruments; – on-demand interbank loans; – cash and cash-related assets; and – non-financial assets.
Exposures to and investments in undertakings not subject to NFRD reporting, whether or not established in the EU, are excluded from the taxonomy-eligibility calculation and presented separately.
2022 reporting covers activities related to climate mitigation and climate adaptation objectives. In future years, enhanced disclosures will be required and will consider additional environmental objectives and technical screening criteria. 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.
In compliance with EU Taxonomy Regulation 2020/852 and associated delegated acts, the total assets of UBS AG and UBS Europe SE presented in the table below have been calculated based on International Financial Reporting Standards (IFRS) and attributed to the taxonomy-eligible activities based on publicly reported information related to investees and counterparties subject to NFRD reporting.
The disclosure has been prepared on a best-efforts basis, using the following key assumptions: – all counterparties and investees domiciled in the EU meet the definition of a large undertaking as per Directive 2013/34/EU of the European Parliament and of the Council to be within the scope of NFRD reporting, except entities within certain industry groups that, according to the 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, etc.); – non-EU domiciled counterparties and investees are not subject to NFRD reporting; – determination of taxonomy-eligible activities is based on the Turnover KPIs reported by non-financial counterparties or investees and asset KPIs reported by financial counterparties or investees – where the NFRD counterparty or investee has satisfied its disclosure obligation under Art. 8 of the EU Taxonomy Regulation by relying on its parent’s disclosures under that same directive, that parent’s KPIs were used in the calculation of taxonomy eligibility presented in the table below; and – exposures to households, representing residential mortgages, have been considered as taxonomy-eligible irrespective of the jurisdiction of the underlying contract or the location of the residential property.
158


Sustainability Report 2022 \| Appendix 5 \| Other 159.
With the ongoing implementation of EU Taxonomy Regulation 2020/852 and development of market practices, the availability and quality of information is expected to improve. This may affect the basis of preparation and result in refinements in future period disclosures.
Information pursuant to Art. 8 of the EU Taxonomy Regulation.
UBS AG (standalone) UBS Europe SE (consolidated)
USD m 31.12.22 in % 331.12.22 in % Assets related to counterparties subject to an EU Taxonomy eligibility assessment1 14,557 3 44,847 15 of which: assets associated with taxonomy eligible activities2 3,607 1 369 1 of which: assets not associated with taxonomy eligible activities 10,949 2 4,478 14 Assets related to counterparties not subject to an EU Taxonomy eligibility assessment 4456,502 97 228,146 85 of which: other financial assets not subject to NFRD reporting1 255,5923 54 7,284 22 of which: derivatives and cash collateral receivables on derivative instruments 181,081 38 18,755 57 of which: on-demand interbank loans 8,340 2 1,276 4 of which: cash and cash-related assets 1 0 0 0 of which: non-financial assets 11,488 2 831 3 Total covered assets 471,059 100 332,993 100.
Trading assets4,5 90,515 2,289.
Assets with governments, central banks and supranationals6 99,3907 16,0628.
Total assets9 660,963 51,343 1 Includes Loans and advances to banks on time, Receivables from securities financing transactions measured at amortized cost, Loans and advances to customers, Other financial assets measured at amortized cost, Brokerage receivables, Financial assets at fair value not held for trading, Financial assets measured at fair value through other comprehensive income, and Investments in subsidiaries and associates, but for all excluding assets with governments, central banks and supranationals. 2 Includes residential mortgages to private persons of USD 3.2bn and USD 0.1bn in UBS AG and UBS Europe SE respectively. 3 Includes USD 138.7bn of financial assets with other UBS Group entities. 4 Excluding trading assets with governments, central banks and supranationals. 5 Represents for UBS AG 14% of total assets and for UBS Europe SE 4% of total assets respectively. 6 Represents for UBS AG 15% of total assets and for UBS Europe SE 31% of total assets respectively. 7 Of which USD 48.7bn with central banks. 8 Of which USD 0.0bn with the European Central Bank. 9 Excludes allowances for expected credit losses with respect to non-performin loans.
A significant proportion of the total assets of both entities are transacted with counterparties and investees that are assumed to not be subject to NFRD reporting as 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. In addition, due to the significant Group Treasury and Investment Bank activities in UBS AG and UBS Europe SE, most assets are within categories that are excluded from taxonomy eligibility assessments (e.g., derivatives, trading assets, etc.).
159

154

Sustainability Report 2022 | Appendix 5 | Other 155.

EU Non-financial disclosures.

Risk evaluation.

Pursuant to the requirements 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 law.

Developments in sustainability, climate, environmental and social standards and regulations may affect our business and impact our ability to fully realize our goals. We have set ambitious goals for environmental, social and governance (ESG) matters. 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 ambitions 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, and regulatory taxonomies and disclosure obligations addressing these matters are relatively immature and are rapidly evolving. In many cases, goals and standards are defined at a high level and can be subject to different interpretations. 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 aspirations. 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 UBS is 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 and 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 Russia–Ukraine war, 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.

155

Sustainability Report 2022 | Appendix 5 | Other 156.

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 Group Executive Board (GEB) members, as well as certain other employees. › Refer to the “Risk factors” and “Regulation and legal developments” sections of our Annual Report 2022 for more information 156

Sustainability Report 2022 | Appendix 5 | Other 157.

Non-financial disclosures in accordance with the German law implementing EU directive 2014/95.

This Sustainability Report and our Annual Report 2022 also include our firm’s disclosures of non-financial information required by the German law implementing EU directive 2014/95 (CSR-Richtlinie-Umsetzungsgesetz, or CSR-RUG). 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, the material topics listed in the CSR-RUG index are limited to the matters (“Belange”) addressed by CSR-RUG. All references to our Annual Report 2022 references to the combined UBS Group AG and UBS AG Annual Report 2022 available at ubs.com/investors.

Section in Sustainability Report 2022 (SR 2022) / Annual Report 2022 (AR 2022) Page(s)

About this report (including framework) About this report SR 2022 / 7.

Description of the business model Our strategy, business model and environment.

Our sustainability and impact strategy.

AR 2022 / 15–66.

SR 2022 / 8–10.

Material risks Risk evaluation SR 2022 / 155–156.

Non-financial aspects Section in Sustainability Report 2022 (SR) / Annual Report 2022 (AR) Page(s)

Broad thematic issues affecting all non-financial aspects.

Our focus on sustainability and climate.

Sustainability and climate risk.

The importance of sustainability to UBS.

Governance.

Key policies and principles.

Our approach to sustainable finance.

UBS Sustainability objectives and achievements 2022 and objectives 2023.

AR 2022 / 43–50.

AR 2022 / 122–129.

SR 2022 / 4–5.

SR 2022 / 20–22.

SR 2022 / 104–105.

SR 2022 / 11–19.

SR 2022 / 145–154.

Environmental and human rights matters (Material topics: Climate and nature; Social impact and human rights; Sustainable finance)

Society.

Our sustainability and impact strategy.

Supporting our strategy – our stakeholder engagement / vendors.

Managing our supply chain responsibly.

Environment.

Our sustainability and climate risk policy framework.

Inclusive growth.

Driving social impact.

Respecting human rights.

Reducing our environmental footprint – additional information.

AR 2022 / 41–42.

SR 2022 / 8–10.

SR 2022 / 86.

SR 2022 / 74–75.

SR 2022 / 23–61.

SR 2022 / 93–99.

SR 2022 / 76–77.

SR 2022 / 70–72.

SR 2022 / 73.

SR 2022 / 122–128.

Social and employee matters (Employees)

Our sustainability and impact strategy.

People and culture make the difference.

SR 2022 / 8–10.

SR 2022 / 63–69.

Anti-corruption and bribery matters (Combating financial crime as a subtopic of Regulatory compliance)

Combating financial crime.

Financial crime prevention.

SR 2022 / 100–101.

AR 2022 / 51 157

Sustainability Report 2022 | Appendix 5 | Other 158.

Information on UBS AG and UBS Europe SE 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 Delegated Act of EU Taxonomy Regulation 2020/852. Article 8 of that Regulation requires entities, that are subject to Directive 2014/95/EU, the Non-financial Reporting Directive (the NFRD), to provide information to investors about the environmental performance of their assets and their economic activities with other counterparties subject to NFRD reporting. Under these regulations, UBS AG is required to provide information on a standalone basis, and UBS Europe SE on a consolidated basis on taxonomy-eligible activities, alongside other qualitative information. The 2021 reporting period was the first reporting period for UBS AG and UBS Europe SE to disclose information, leveraging industry representation codes to determine taxonomy-eligible activities. Starting from the 2022 reporting period, UBS AG and UBS Europe SE are required to use the most recently available information disclosed by investees or counterparties for their eligibility reporting. Eligible activities are economic activities as described in the relevant delegated acts of the EU Taxonomy irrespective of whether that activity meets any of the technical screening criteria. Various exclusions apply, with the following excluded from the numerator in the eligibility calculation: – trading assets (also excluded from the denominator in the eligibility calculation); – assets with governments, central banks and supranationals (also excluded from the denominator in the eligibility calculation); – derivatives and cash collateral receivables on derivative instruments; – on-demand interbank loans; – cash and cash-related assets; and – non-financial assets.

Exposures to and investments in undertakings not subject to NFRD reporting, whether or not established in the EU, are excluded from the taxonomy-eligibility calculation and presented separately.

2022 reporting covers activities related to climate mitigation and climate adaptation objectives. In future years, enhanced disclosures will be required and will consider additional environmental objectives and technical screening criteria. 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.

In compliance with EU Taxonomy Regulation 2020/852 and associated delegated acts, the total assets of UBS AG and UBS Europe SE presented in the table below have been calculated based on International Financial Reporting Standards (IFRS) and attributed to the taxonomy-eligible activities based on publicly reported information related to investees and counterparties subject to NFRD reporting.

The disclosure has been prepared on a best-efforts basis, using the following key assumptions: – all counterparties and investees domiciled in the EU meet the definition of a large undertaking as per Directive 2013/34/EU of the European Parliament and of the Council to be within the scope of NFRD reporting, except entities within certain industry groups that, according to the 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, etc.); – non-EU domiciled counterparties and investees are not subject to NFRD reporting; – determination of taxonomy-eligible activities is based on the Turnover KPIs reported by non-financial counterparties or investees and asset KPIs reported by financial counterparties or investees – where the NFRD counterparty or investee has satisfied its disclosure obligation under Art. 8 of the EU Taxonomy Regulation by relying on its parent’s disclosures under that same directive, that parent’s KPIs were used in the calculation of taxonomy eligibility presented in the table below; and – exposures to households, representing residential mortgages, have been considered as taxonomy-eligible irrespective of the jurisdiction of the underlying contract or the location of the residential property.

158

Sustainability Report 2022 | Appendix 5 | Other 159.

With the ongoing implementation of EU Taxonomy Regulation 2020/852 and development of market practices, the availability and quality of information is expected to improve. This may affect the basis of preparation and result in refinements in future period disclosures.

Information pursuant to Art. 8 of the EU Taxonomy Regulation.

UBS AG (standalone) UBS Europe SE (consolidated)

USD m 31.12.22 in % 331.12.22 in % Assets related to counterparties subject to an EU Taxonomy eligibility assessment1 14,557 3 44,847 15 of which: assets associated with taxonomy eligible activities2 3,607 1 369 1 of which: assets not associated with taxonomy eligible activities 10,949 2 4,478 14 Assets related to counterparties not subject to an EU Taxonomy eligibility assessment 4456,502 97 228,146 85 of which: other financial assets not subject to NFRD reporting1 255,5923 54 7,284 22 of which: derivatives and cash collateral receivables on derivative instruments 181,081 38 18,755 57 of which: on-demand interbank loans 8,340 2 1,276 4 of which: cash and cash-related assets 1 0 0 0 of which: non-financial assets 11,488 2 831 3 Total covered assets 471,059 100 332,993 100.

Trading assets4,5 90,515 2,289.

Assets with governments, central banks and supranationals6 99,3907 16,0628.

Total assets9 660,963 51,343 1 Includes Loans and advances to banks on time, Receivables from securities financing transactions measured at amortized cost, Loans and advances to customers, Other financial assets measured at amortized cost, Brokerage receivables, Financial assets at fair value not held for trading, Financial assets measured at fair value through other comprehensive income, and Investments in subsidiaries and associates, but for all excluding assets with governments, central banks and supranationals. 2 Includes residential mortgages to private persons of USD 3.2bn and USD 0.1bn in UBS AG and UBS Europe SE respectively. 3 Includes USD 138.7bn of financial assets with other UBS Group entities. 4 Excluding trading assets with governments, central banks and supranationals. 5 Represents for UBS AG 14% of total assets and for UBS Europe SE 4% of total assets respectively. 6 Represents for UBS AG 15% of total assets and for UBS Europe SE 31% of total assets respectively. 7 Of which USD 48.7bn with central banks. 8 Of which USD 0.0bn with the European Central Bank. 9 Excludes allowances for expected credit losses with respect to non-performin loans.

A significant proportion of the total assets of both entities are transacted with counterparties and investees that are assumed to not be subject to NFRD reporting as 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. In addition, due to the significant Group Treasury and Investment Bank activities in UBS AG and UBS Europe SE, most assets are within categories that are excluded from taxonomy eligibility assessments (e.g., derivatives, trading assets, etc.).

159