UBS Group AG · SIX:UBSG
UBS — ESG Presentation (March 2024)
37 slides from UBS's sustainability presentation, March 2024
Slide 1: Sustainability at UBS
Sustainability at UBS This document should be read in conjunction with the UBS Group AG Sustainability Report 2023 and Annual Report 2023 ubs.com/annualreporting March 2024
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 ambition remains unchanged, to be a global leader in sustainability
UBS Group AG Our ambition remains unchanged, to be a global leader in sustainability We have made significant progress in aligning our 2023 key highlights sustainability frameworks for the combined firm ✓ Expanded sustainability and climate risk policy framework − 81% of estimated total financed emi
Slide 4: Continued to make good progress on our sustainability and impact strategy
UBS Group AG Continued to make good progress on our sustainability and impact strategy We want to be the financial provider of choice for clients that wish to mobilize capital toward the achievement Our ambition of the 17 UN Sustainable Development Goals (the SDGs) and the orderly transition to a lo
Slide 5: Aiming to substantially complete sustainability integration by end-2024
UBS Group AG Aiming to substantially complete sustainability integration by end-2024 Illustrative key milestone timeline 2023 2024 2025 (examples) ✓ − The sustainability and impact strategy of Strategy Pre-acquisition UBS applies to UBS Group, including CS − Overarching governance at CS AG integrate
Slide 6: We have expanded our sustainability and climate risk policy framework
UBS Group AG We have expanded our sustainability and climate risk policy framework Embedding CS in our sustainability and climate policies Additions to our sustainability and climate risk policy Following the acquisition of Credit Suisse, the sustainability and climate ✓ We do not provide financing
Slide 7: A recognized leader in sustainability
UBS Group AG A recognized leader in sustainability Index member of DJSI CDP score of A- and “Leader” in industry ESG Risk rating of 27.5 World and DJSI Europe included in Leadership group1 (Medium risk)1 band1 Ranked 6th of the 745 companies assessed in the same industry group1 Refer to slides 33 to
Slide 8: Our Group-wide sustainability governance
UBS Group AG Our Group-wide sustainability governance (BoD) − All BoD committees have specific responsibilities pertaining to ESG matters − The BoD’s Corporate Culture and Responsibility Committee (the CCRC) is the (GEB) body primarily responsible for corporate culture, responsibility, and sustainab
Slide 9: Planet – our aspirations and progress in 2023 (1/2)
UBS Group AG Planet – our aspirations and progress in 2023 (1/2) Our Our aspirations or targets Our progress in 2023 priorities Following the acquisition of the Credit Suisse Group, we refined the UBS Group Calculated progress against pathways for revised targets.3 Planet lending sector decarbonizat
Slide 10: Planet – our aspirations and progress in 2023 (2/2)
UBS Group AG Planet – our aspirations and progress in 2023 (2/2) Our Our aspirations or targets Our progress in 2023 priorities Planet Minimize our scope 1 and 2 emissions through energy efficiencies and switching to Reduced net GHG footprint for scope 1 and 2 emissions by 21% and energy consumption
Slide 11: Our approach to climate
UBS Group AG Our approach to climate Ambition We will support clients through the world’s transition to a low carbon economy and embed considerations of climate change risks and opportunities in our bank for the benefit of our stakeholders, now and in the future Supporting our clients’ Reducing Mana
Slide 12: Climate roadmap
UBS Group AG Climate roadmap − Minimize our scope 1 and 2 emissions through energy efficiencies and by switching to more sustainable energy Ambition to be net zero sources. Our scope 1 and 2 target for the Aspiration to by 2050 and founding combined organization has been under Engage with our achiev
Slide 13: Our ambition is to achieve net-zero greenhouse gas emissions by 2050
UBS Group AG Our ambition is to achieve net-zero greenhouse gas (GHG) emissions across our scope 1 and 2, and specified scope 3 activities by 2050 Following the CS acquisition, we conducted a review of the decarbonization targets to reflect the activities of the combined organization. As a result, w
Slide 14: Progress on our direct environmental footprint
UBS Group AG – pro forma combined UBS and CS Progress on our direct environmental footprint GHG footprint (total net GHG emissions) Environmental performance and 2025 targets Kilotonnes CO2e Scope 1 Net scope 2 Scope 3 from our own operations3 Energy reduction1 Paper from sustainable sources1 169 16
Slide 15: Decarbonization targets for sectors representing ~81% of total financed emissions
UBS Group AG – pro forma combined UBS and CS Decarbonization targets for sectors representing ~81% of total financed emissions UBS Group1 Credit Suisse AG Swiss residential real estate2 Swiss commercial real estate2 Fossil fuels Shipping4 kg CO2e/m2 ERA3 kg CO2e/m2 ERA3 million metric t CO2e Alignme
Slide 16: Measuring facilitated emissions from our capital markets business
UBS Group AG – pro forma combined UBS and CS Measuring facilitated emissions from our capital markets business Select carbon-intensive sectors as % of total Overview facilitated notional 5.9% 5.7% − UBS reviews and assesses every Global Banking transaction and employs a robust business selection pro
Slide 17: People – our aspirations and progress in 2023
UBS Group AG People – our aspirations and progress in 2023 Our Our aspirations Our progress in 2023 priorities By 2025, 30% of worldwide roles at Director level and above held by Increased to 29.5% (2022: 27.8%) of worldwide roles at Director level and above held by People women. women. By 2025, 26%
Slide 18: Employee-focused diversity, equity and inclusion agenda
UBS Group AG Employee-focused diversity, equity and inclusion agenda At UBS, we aim to build a culture of belonging, where employees from all backgrounds and identities can feel recognized and valued, and where everyone can unlock their full potential 2025 aspirational goals Director level and above
Slide 19: Partnerships – our aspirations and progress in 2023
UBS Group AG Partnerships – our aspirations and progress in 2023 Our Our aspirations or targets Our progress in 2023 priorities Partnerships Delivered a variety of insights, including through interviews with subject-matter experts, individual research reports and comprehensive white papers, via the
Slide 20: Partnerships – connecting people for a better world
UBS Group AG 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 trans
Slide 21: Increased invested assets in sustainable investments by 10% to USD 292 billion
UBS AG Increased invested assets in sustainable investments by 10% to USD 292 billion UBS AG invested assets1,2 Credit Suisse integration update 4,615 USD bn In 2024, the UBS AG Asset Management SI 4,505 product classification framework will be applied to the Credit Suisse AG Asset Management produc
Slide 22: Sustainable finance approach and offering
UBS Group AG, UBS AG Sustainable finance approach and offering Investment approaches Expanding offering for clients in 2023 UBS’s definition of sustainable investments 2nd largest manager of open-ended funds and ETFs by UBS AG GWM clients’ discretionary assets aligned to SI Strategic Asset Allocatio
Slide 23: Appendix
Appendix 22
Slide 24: Sustainability and climate risk policy framework (coal, oil & gas and shipping)
UBS Group AG Sustainability and climate risk policy framework (coal, oil & gas and shipping) We do not provide project-level finance for new CFPP globally and only support financing transactions of existing coal-fired operators (>20% coal Coal-fired power reliance) if they have a transition strategy
Slide 25: Our standards – overview (sustainability and climate risk policy framework)
UBS Group AG 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 Rams
Slide 26: Decarbonization targets in relation to UBS lending book
UBS Group AG – pro forma combined UBS and CS Decarbonization targets in relation to UBS lending book 2022 (pro forma) Outstanding NZBA sectors with Total sector Exposure Change vs. 2021 – 2030 exposure Unit Baseline 2021 2022 actuals Notes target exposure, covered with 2021 target covered by gross t
Slide 27: Climate-related lending metrics – shipping / Poseidon Principles disclosure
Credit Suisse AG Climate-related lending metrics – shipping / Poseidon Principles disclosure Exposure in scope of Poseidon Gross exposure (USD bn) Unit Notes Principles disclosure (USD bn) Shipping 9.4 6.91 % delta alignment vs. Poseidon Principles in scope (Credit Suisse AG) trajectory Poseidon Pri
Slide 28: Climate risk heatmap – transition risk
UBS AG Climate risk heatmap – transition risk Climate risk heatmap (transition risk)1,2, 3 USD bn Refer to slides 33 to 35 for footnotes 27
Slide 29: Climate risk heatmap – physical risk
UBS AG Climate risk heatmap – physical risk Climate risk heatmap (physical risk)1,2, 3 Physical risk by sector and country adaptive capacity USD bn Market size indicates relative exposure magnitude Color indicates physical risk level Refer to slides 33 to 35 for footnotes 28
Slide 30: Green funding update
Green funding update Eligible assets and green funding outstanding USD m, 31.12.23 UBS’s Green Funding framework key features Eligible asset pool: 4,700 4,683 − Mortgage loans financing Minergie-certified real estate in Switzerland Asset creation date − Any equivalent real estate certification syste
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 Launch of UBS in UBS joins the UNEP First major global financial First advisory vote on our Community Responsible the climate Society FI working group on institution to make climate
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: Key terms and definitions
Key terms and definitions The 2030 Agenda for Sustainable Development, adopted by all UN member states in 2015, provides a shared blueprint for peace and prosperity for people and the planet. At its SDGs heart are the 17 UN Sustainable Development Goals (available on sdgs.un.org/goals), the SDGs, wh
Slide 34: Footnotes (1/3)
Footnotes (1/3) Slide 3: Continued to make good progress on our sustainability and impact strategy Slide 9: Planet – our aspirations and progress in 2023 (2/2) 1. Scope 2 emissions are market-based emissions. The remaining scope 1 and 2 emissions may be in excess of the 1. Scope 2 emissions are mark
Slide 35: Footnotes (2/3)
Footnotes (2/3) Slide 12: By 2050, our ambition is to achieve net-zero greenhouse gas (GHG) emissions across our scope 1 and 2, and Slide 20: Increased invested assets in sustainable investments by 10% to USD 292 billion specified scope 3 activities 1. The chart on slide 20 details UBS AG Sustainabl
Slide 36: Footnotes (3/3)
Footnotes (3/3) Slide 23: Sustainability and climate risk policy frameworks (coal, oil & gas and shipping) Slide 27: Climate risk heatmap – transition risk 1. Greenfield means a new mine/well or an expansion of an existing mine/well that results in a material increase in 1. Total customer lending ex
Slide 37: 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