Ubs Group Ag · SIX:UBSG
Ubs — ESG Presentation (March 2022)
32 slides from Ubs's sustainability presentation, Mar 11, 2022
Slide 1: Sustainability at UBS
Sustainability at UBS This document should be read in conjunction with the UBS Group AG Sustainability Report 2021 and Annual Report 2021 ubs.com/annualreporting 11 March 2022
Slide 2: Important information
Important information Forward Looking Statements: This presentation contains statements that constitute “forward-looking statements,” including but not limited to management’s outlook for UBS’s financial performance, statements relating to the anticipated effect of transactions and strategic initiat
Slide 3: A firm driven by purpose
A firm driven by purpose What purpose means for our stakeholders For clients, both existing and potential, it means that our Reimagining The power of investing Focus is clear. They know who we are. They know what we stand for. They know what is important to us beyond It is about proactively finding
Slide 4: UBS Sustainability and Impact Strategy
UBS Sustainability and Impact Strategy Be the financial provider of choice for clients who wish to mobilize capital Our sustainability toward the achievement of the 17 UN Sustainable Development Goals and commitment the orderly transition to a low-carbon economy Planet: Taking climate action and sup
Slide 5: External ESG ratings
External ESG ratings Index member of DJSI World One of only 200 companies on Top 3 among primary peer ESG Risk rating of 22.2 ESG evaluation of 77/100 and DJSI Europe the CDP Climate A-List – out of group (Medium risk) (Solicited rating) nearly 12’000 companies Ranked 3rd out of 174 Environmental pr
Slide 6: UBS sustainability and climate governance
UBS sustainability and climate governance 5
Slide 7: Targeting 400bn in sustainable investments by 2025
Targeting 400bn in sustainable investments by 2025 Increased invested assets in sustainable investments by 78% to USD 251 billion 2021 2017-2021 YoY CAGR Group invested assets 4,596 USDbn 4,187 3,532 Other 3,607 3,401 3,262 3,101 3,127 255 Exclusion +93% +29% 3,090 2,802 132 558 ESG integration +9%
Slide 8: Sustainable finance approach and offering
Sustainable finance approach and offering Investment approaches Expanding offering for clients in 2021 UBS’s definition of sustainable investments UBS AM’s Climate Aware strategies reached Over USD 30bn invested in discretionary offerings USD 23.4bn Sustainability focus aligned to our SI Strategic A
Slide 9: Planet – our targets and progress in 2021
Planet – our targets and progress in 2021 Our priorities Our targets Our progress in 2021 Planet Set decarbonization targets for 2030 for financing of the fossil fuels, power generation and real Estimated baselines and development of net-zero- estate sectors (from 2020 levels): aligned pathways for
Slide 10: Climate Strategy
Climate Strategy Managing climate-related financial risks Protecting our clients' assets 46 Managing climate-related risks and opportunities through our Companies in high carbon intensity sectors innovative products and services in investment, financing and research participating in climate engageme
Slide 11: Climate risk heatmap – transition risks
Climate risk heatmap – transition risks High 265 Moderate 32,503 Commercial real estate management 18,029 Coal 233 Shale gas 24 Downstream oil and gas distribution 4,430 Construction – non-infrastructure 3,206 Oil refining 8 Mining conglomerates 2,687 Manufacturing of other metals 917 Moderately hig
Slide 12: Climate risk heatmap – physical risks
Climate risk heatmap – physical risks Refer to slide 26 for a sector distribution of High, Moderately High, and Moderate physical risk exposures Numbers in USDm unless otherwise indicated; refer to the Sustainability Report 2021 for further information 1 Non-sensitive is mostly composed of private L
Slide 13: Climate roadmap
Climate roadmap Addressing the emissions of our business activities › Reduce absolute financed emissions associated with UBS loans to fossil fuel companies by 71%1 › Reduce emissions intensity associated with UBS loans to power generation companies by 49%1 › Reduce emissions intensity of UBS’s comme
Slide 14: Our plan for addressing emissions in our lending book
Our plan for addressing emissions in our lending book Emissions associated with financing of fossil fuels, power generation and real estate (commercial and residential) and targets we have set for 2030 Fossil fuel financing Power generation financing Residential real estate lending Commercial real e
Slide 15: Progress on our direct environmental footprint
Progress on our direct environmental footprint GHG footprint (scope 1 and 2) Environmental performance and 2025 targets Kilotonnes CO2e 132 Energy reduction1 Paper from sustainable sources 104 75 2021 -5% 2021 80% 30 2025 2025 target -15% target 100% Renewable electricity sourcing Waste reduction1 W
Slide 16: People – our targets and progress in 2021
People – our targets and progress in 2021 Our priorities Our targets Our progress in 2021 People 30% global female representation at Director level and Increased to 26.7% (2020: 26.0%) female above by 2025. representation at Director level and above. 26% US ethnic minority representation at Director
Slide 17: Driving forward the group diversity, equity and inclusion agenda
Driving forward the group diversity, equity and inclusion agenda Vision: We’re building a culture of belonging where everybody can unlock their full potential. Together, we champion equality for our employees, clients and society. hire accountable Attracting diverse perspectives and experiences into
Slide 18: Partnerships – our targets and progress in 2021
Partnerships – our targets and progress in 2021 Our priorities Our targets Our progress in 2021 Partnerships Establish UBS as a leading facilitator of discussion, debate and idea generation. Launched the UBS Sustainability and Impact Institute, with the objective of delivering original, best-in-clas
Slide 19: Partnerships – connecting people for a better world
Partnerships – connecting people for a better world We realize that to create change, we all need to unite around common goals. To do so, measurement standards need to be developed. We’re contributing our expertise to leading partnerships seeking to create common understanding and transparency. And
Slide 20: Appendix
Appendix 3 UBS
Slide 21: UBS net zero approach – from commitment to action
UBS net zero approach – from commitment to action Measure carbon emissions We measure carbon emissions for scopes 1,2 and parts of scope 3 of our own operations since 2004. In 2021 we commenced measuring carbon emissions in our financing and investment portfolios. Communicate and engage Define roadm
Slide 22: Climate-related lending standards in the energy and utilities sectors
Climate-related lending standards in the energy and utilities sectors Coal-fired power plants No project-level finance to new coal-fired power plants globally. Only supporting financing to transactions of existing coal-fired operators (>20% coal reliance) if they have a transition strategy that alig
Slide 23: Our standards – overview
Our standards – overview (sustainability and climate risk policy framework) Controversial activities Areas of concern Where we will not do business Where business is subject to stringent criteria › UNESCO world heritage sites Soft commodities: Extractives: › Wetlands on the Ramsar list › Palm oil ›
Slide 24: Climate-related metrics (1/2)
Climate-related metrics (1/2) For the year ended % change from 31.12.21 31.12.20 31.12.19 31.12.20 Risk management Carbon-related assets (USD billion)1,2 45.6 45.4 40.1 0.4 of which: UBS AG (standalone)2,3 7.0 7.6 7.5 (8.7) of which: UBS Switzerland AG (standalone)2,3 37.9 37.1 31.9 2.4 Proportion o
Slide 25: Climate-related metrics (2/2)
Climate-related metrics (2/2) For the year ended % change from 31.12.21 31.12.20 31.12.19 31.12.20 Portfolio emissions1 Weighted average carbon intensity – Climate Aware strategies (tonnes CO2e per USD million of revenue)1 65.5 68.2 74.5 (3.9) Compared to weighted carbon intensity of composite bench
Slide 26: Exposure to climate-sensitive sectors – transition risks
Exposure to climate-sensitive sectors – transition risks As of 31.12.21 As of 31.12.20 As of 31.12.19 USD million Trend (%) 2019 to 2021 Gross exposure2 Share of total exposure2 Share of total exposure2 Share of total exposure2 Climate-sensitive sector1 Aerospace and defence 831 0.18% 0.21% 0.56%
Slide 27: Exposure to climate-sensitive sectors – physical risks
Exposure to climate-sensitive sectors – physical risks As of 31.12.21 As of 31.12.20 As of 31.12.19 USD million Trend (%) 2019 to 2021 Gross exposure2 Share of total exposure2 Share of total exposure2 Share of total exposure2 Climate-sensitive sector1 Aerospace and defence 338 0.07% 0.09% 0.48% Au
Slide 28: Green funding update
Green funding update Eligible assets and green bonds outstanding Meeting the core components of the Green Bond Principles USDm 1. Use of Proceeds › UBS will finance and / or refinance Group-wide Eligible Assets, in whole or in part, that target climate mitigation Asset creation date of through low c
Slide 29: Our long history in sustainability
Our long history in sustainability 1954 1997 2006 2014 2017 2020 Beginnings of Launch of Socially Introduction of the Launch of UBS in UBS joins the UNEP FI First major global financial Community Impact Responsible climate strategy Society working group on TCFD institution to make Investment (SRI) i
Slide 30: Our approach to tax matters
Our approach to tax matters UBS Code of Conduct and Ethics Five key Principles ˮ We pay and report all taxes due. We report information 1. UBS will fully comply with tax laws in a principled manner; relating to our own tax position and that of our clients and employees as required. We will not help
Slide 31: Key terms and definitions
Key terms and definitions SDGs The 17 United Nations (UN) Sustainable Development Goals (SDGs) of the 2030 Agenda for Sustainable Development apply universally to all. With the SDGs, countries are mobilizing efforts to end all forms of poverty, fight inequalities and tackle climate change, while ens
Slide 32: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements This presentation contains statements that constitute “forward-looking statements,” including but not limited to management’s outlook for UBS’s financial performance, statements relating to the anticipated effect of transactions and strategic