Ubs Group Ag · SIX:UBSG
Ubs — ESG Presentation (March 2023)
35 slides from Ubs's sustainability presentation, March 2023
Slide 1: Sustainability at UBS
Sustainability at UBS This document should be read in conjunction with the UBS Group AG Sustainability Report 2022 and Annual Report 2022 ubs.com/annualreporting March 2023
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: Our sustainability and impact strategy
Our sustainability and impact strategy We want to be the financial provider of choice for clients that wish to mobilize Our ambition capital toward the achievement of the 17 UN Sustainable Development Goals (the SDGs) and the orderly transition to a low-carbon economy Planet first: Taking climate ac
Slide 4: External ESG ratings
External ESG ratings Index member of DJSI World One of nearly 300 companies “Leader” in industry group ESG Risk rating of 19.9 ESG evaluation of 77/100 and DJSI Europe on the CDP Climate A-List – out (Low risk) (Solicited rating) of more than 15,000 scored Ranked fifth of the 612 Environmental profi
Slide 5: UBS sustainability and climate governance
UBS sustainability and climate governance 1 Also represents the Responsible Supply Chain Program 4
Slide 6: Aspiration to achieve 400bn in sustainable investments by 2025
Aspiration to achieve 400bn in sustainable investments by 2025 Increased invested assets in sustainable investments by 7% to USD 268 billion 4,596 Group invested assets USDbn Sustainability focus 4,187 Impact investing Other 3,957 4,345 3,607 4,046 3,690 2022 2018-2022 YoY CAGR 3,101 3,552 Other (15
Slide 7: Sustainable finance approach and offering
Sustainable finance approach and offering Investment approaches Expanding offering for clients in 2022 UBS’s definition of sustainable investments GWM clients’ discretionary assets aligned to SI Strategic 3rd largest manager of open-ended funds and ETFs by Asset Allocation reached USD 23bn SI AuM1 S
Slide 8: Planet – our aspirational goals and progress in 2022 (1/2)
Planet – our aspirational goals and progress in 2022 (1/2) Our priorities Our aspirational goals Our progress in 2022 Planet Decarbonization targets for 2030 for financing of the real estate, fossil fuels, Calculated progress against pathways for the real estate (commercial and residential), power g
Slide 9: Planet – our aspirational goals and progress in 2022 (2/2)
Planet – our aspirational goals and progress in 2022 (2/2) Our priorities Our aspirational goals Our progress in 2022 Planet Achieve net-zero energy emissions resulting from our own operations Reduced GHG footprint for scope 1 and 2 emissions by 13% and energy consumption (scopes 1 and 2) by 2025; c
Slide 10: Climate Strategy
Climate Strategy Managing climate-related financial risks Protecting our clients' assets 67% Managing climate-related risks and opportunities through our of our climate engagements yielded positive innovative products and services in investment, financing and research progress in 2022 Protecting our
Slide 11: Climate roadmap
Climate roadmap Addressing the emissions of our lending activities Reduce emissions intensity associated with UBS lending to: − residential real estate by 42%1 − commercial real estate by 44%1 Commitment to net zero by − power generation by 49%1 2050 and founding member of the − cement by 15%1 Net-Z
Slide 12: 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, cement and real estate (commercial and residential) and targets we have set for 2030 Fossil fuel lending Power generation lending Cement lending t CO2e (base: 100) kg CO2e / M
Slide 13: Climate risk heatmap – transition risk
Climate risk heatmap – transition risk Climate risk heatmap (transition risk)1,2 USD bn Refer to the table on pages 26 to 28 for further detail 1 Consists of total loans and advances to customers and guarantees, as well as irrevocable loan commitments (within the scope of expected credit loss), and
Slide 14: Climate risk heatmap – physical risk
Climate risk heatmap – physical risk Climate risk heatmap (physical risk)1,2 Physical risk by sector and geographic (country) scores USD bn Market size indicates relative exposure magnitude Refer to the table on pages 26 to 28 for further detail 1 Consists of total loans and advances to customers an
Slide 15: Progress on our direct environmental footprint
Progress on our direct environmental footprint GHG footprint (total net GHG emissions) Environmental performance and 2025 targets Kilotonnes CO2e Scope 1 132 Net scope 2 Energy reduction1 Paper from sustainable sources1 104 Net scope 3 from our own operations4 75 30 25 Renewable electricity sourcing
Slide 16: People – our aspirational goals and progress in 2022
People – our aspirational goals and progress in 2022 Our priorities Our aspirational goals Our progress in 2022 People 30% global female representation at Director level and Increased to 27.8% (2021: 26.7%) female representation at Director level and above. above by 2025. 26% of US roles 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 aspirational goals and progress in 2022
Partnerships – our aspirational goals and progress in 2022 Our priorities Our aspirational goals Our progress in 2022 Partnerships Establish UBS as a leading facilitator of discussion, debate − Co-organized, with the Institute of International Finance, the first Wolfsberg and idea generation. Forum
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 19
Slide 21: Net-zero targets in relation to UBS lending emissions
Net-zero targets in relation to UBS lending emissions Emissions 2021 Emissions target Lending volume Lending volume Emissions Emissions vs. baseline 2030 vs. Notes 20211 20221 baseline 2020 20212 2020 baseline 2020 Residential real Reduction of emissions intensity USD 152.9bn USD 156.9bn 30 kg CO2e/
Slide 22: Our approach to net-zero alignment
Our approach to net-zero alignment 21
Slide 23: Climate-related lending standards in the energy and utilities sectors
Climate-related lending standards in the energy and utilities sectors Coal-fired power plants (CFPP) 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 th
Slide 24: Our standards – overview (sustainability and climate risk policy framework)
Our standards – overview (sustainability and climate risk policy framework) Controversial activities Areas of concern Where we will not do business Where we will only do business under stringent criteria − UNESCO world heritage sites Soft commodities: Extractives: − Wetlands on the Ramsar list − Pal
Slide 25: Climate-related metrics (1/2)
Climate-related metrics (1/2) For the year ended % change from 31.12. 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 24.6 26.0 25.4 (5.4) of which: UBS ESE 0.3 0.3 0.6 0.0 Pr
Slide 26: Climate-related metrics (2/2)
Climate-related metrics (2/2) For the year ended % change from 31.12.22 31.12.21 31.12.20 31.12.21 Portfolio emissions1 Weighted average carbon intensity – active equity assets (in metric tons CO2e per USD million of revenue) 130.4 109.8 % AuM weighted average carbon intensity below benchmark (activ
Slide 27: Exposure to climate-sensitive sectors (1/3)
Exposure to climate-sensitive sectors (1/3) Risk exposures by sector1, 2 Year-on-year exposure Transition risk Physical risk Nature-related risk6 2020 – 2022 2020 – 2022 2020 – 2022 2020 – In scope of 2022 Nature- 2022 2022 (USD Climate- 2022 Risk rating 2022 trend Climate- 2022 Risk rating 2022 Ris
Slide 28: Exposure to climate-sensitive sectors (2/3)
Exposure to climate-sensitive sectors (2/3) Risk exposures by sector1, 2 Year-on-year exposure Transition risk Physical risk Nature-related risk6 2022 2020 – 2022 2020 – 2022 2020 – 2020 – 2022 Risk In scope of 2022 Risk Nature- 2022 Risk 2022 2022 (USD Climate- 2022 trend Climate- 2022 trend Sector
Slide 29: Exposure to climate-sensitive sectors (3/3)
Exposure to climate-sensitive sectors (3/3) Risk exposures by sector1, 2 Year-on-year exposure Transition risk Physical risk Nature-related risk6 2022 2020 – 2022 2020 – 2022 2020 – 2020 – In scope of Nature- 2022 2022 (USD Climate- 2022 Risk rating 2022 trend Climate- 2022 Risk rating 2022 trend 20
Slide 30: Green funding update
Green funding update Eligible assets and green funding outstanding USDm, 31.12.22 UBS’s Green Funding framework key features Eligible asset pool: 4,700 − Mortgage loans financing Minergie-certified real estate in Switzerland Asset creation date − Any equivalent real estate certification system as de
Slide 31: Our long history in sustainability
Our long history in sustainability 1954 1997 2006 2014 2017 2020 2022 Beginnings of Launch of Socially Introduction of the Launch of UBS in UBS joins the UNEP FI First major global First advisory vote on Community Impact Responsible climate strategy Society working group on financial institution to
Slide 32: 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 33: Enhancing ESG risk management and controls
Enhancing ESG risk management and controls 1. Selected sustainable finance and climate metrics subject to reasonable assurance by our auditor and described in detail in the Basis of reporting 2. Sustainability Expert Group within Group Compliance, regulatory & Governance (GCRG) responsible for ESG-r
Slide 34: Key terms and definitions
Key terms and definitions The17 UN Sustainable Development Goals are an urgent call for action by all countries – developed and developing – in a global partnership. They recognize that ending poverty SDGs and other deprivations must go hand-in-hand with strategies that improve health and education,
Slide 35: Cautionary statement regarding forward-looking statements
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 rela