6-K
UBS AG (AMUB)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
FORM 6-K
REPORT OF FOREIGN PRIVATE
ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
Date: March 17, 2025
UBS AG
(Registrant's Name)
Bahnhofstrasse 45, 8001 Zurich, Switzerland
Aeschenvorstadt 1, 4051 Basel, Switzerland
(Address of principal executive offices)
Commission File Number: 1-15060
Indicate by check mark whether the registrant files or will file annual
reports under cover of
Form 20-F or Form 40-F.
Form 20-F
☒
Form 40-F
☐
This Form 6-K consists of
UBS AG Sustainability Statement 2024 and
related disclosures prepared pursuant to the
EU Taxonomy Regulation, which appears immediately following this page.
Annual Report 2024 |
Sustainability Statement
1
Sustainability Statement
Management report
The following disclosures are
required for UBS AG
by the German law
implementing EU directive 2014/95
(CSR Richtlinie-
Umsetzungsgesetz /
CSR-RUG) (nichtfinanzieller
Konzernbericht) (the
EU Non-Financial
Reporting Directive)
and the
EU
Taxonomy Regulation.
This Sustainability Statement has been prepared with reference to the Global Reporting Initiative (GRI) and in
accordance
with our Basis of preparation.
›
Refer to the Basis of preparation document, available at
ubs.com/sustainability-reporting
, for more information on the metrics
definitions, approaches and scope
›
Refer to the GRI Content index, available at
ubs.com/sustainability-reporting
, for more information on the metrics with references
to GRI standards
2
Independent assurance report on selected sustainability
metrics and disclosures
11
General information
11
Our business model
13
Our stakeholder engagement
16
Governance
16
Our sustainability governance
20
Business conduct and corporate culture
25
Strategy
25
Our sustainability and impact strategy
27
Environmental information
27
Our climate transition plan
29
Supporting our clients’ low-carbon transition
40
Reducing our own climate impact
47
Managing the climate impact of our supply chain
48
Supporting our climate approach: key enabling actions
50
Social information
50
People and culture make the difference
54
Respecting human rights
54
Cyber and information security
55
Managing sustainability and climate risks
55
Sustainability and climate risk management framework
57
Risk identification and measurement
62
Monitoring and risk appetite setting
64
Risk management and control
65
Risk reporting and disclosure
66
Our investment management approach to sustainability
and climate risks
68
Other supplemental information
68
Additional UBS Europe SE considerations for sustainability
and climate risk management
79
Climate-related risk methodologies and scenarios
82
Information on non-financial disclosures
84
Key terms and definitions
85
Information on UBS AG standalone and UBS Europe SE
consolidated pursuant to Art. 8 of the EU Taxonomy
Regulation
90
UBS AG standalone
91
Assets for the calculation of the GAR
99
GAR sector information
101
GAR KPI stock
109
GAR KPI flow
113
KPI off-balance sheet exposures and flow
115
Nuclear and fossil gas related activities
130
UBS Europe SE consolidated
131
Assets for the calculation of the GAR
139
GAR sector information
141
GAR KPI stock
149
GAR KPI flow
153
KPI off-balance sheet exposures and flow
155
Nuclear and fossil gas related activities
Annual Report 2024 |
Sustainability Statement
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Annual Report 2024 |
Sustainability Statement
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Annual Report 2024 |
Sustainability Statement
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Annual Report 2024 |
Sustainability Statement
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Annual Report 2024 |
Sustainability Statement
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Annual Report 2024 |
Sustainability Statement
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Annual Report 2024 |
Sustainability Statement
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Annual Report 2024 |
Sustainability Statement
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Annual Report 2024 |
Sustainability Statement
10
Annual Report 2024 |
Sustainability Statement | General information
11
General information
Our business model
UBS – who we are
UBS is the largest truly global wealth
manager and the leading bank in Switzerland.
These key pillars of our strategy are
enhanced by focused and competitive
investment bank and asset management
capabilities.
Staying close to our clients,
whether
they
are
individuals,
institutions
or
businesses,
and
providing
financial
advice
and
solutions
to
help
them
to
achieve their goals is of
the upmost importance to
us.
We have a capital-generative
and well-diversified business
model
with strong competitive positions
in our target markets.
Our business model, our
strong and risk-aware culture
and our
superior client service, as
well as our respected brand
with over 160 years
of history and our
capital prudence, have made
it possible to consistently
and sustainably both
grow profits and
deliver a high return
on equity over the
long term. The
acquisition of the Credit Suisse Group has further accelerated our
growth strategy by providing our client franchises with
additional scale,
complementary capabilities
and talent
in line
with our
ambition to
position UBS
for sustainable,
high-
quality returns and long-term growth.
We are focused on driving sustainable long-term growth
while maintaining risk and cost discipline
Our objective is to generate value for
our shareholders and clients by driving sustainable
long-term structural growth and
attractive
capital
returns.
To
accomplish
this,
we
are
building
on
our
scale,
content
and
solutions,
while
remaining
disciplined on capital, risk and costs.
Maintaining a balance sheet
for all seasons remains the foundation
of our success.
This gives us the capacity
to invest strategically and
will enable us to deliver
against our financial targets
and ambitions,
which are outlined in the “Targets, capital guidance and
ambitions” section of this report.
Our growth
plans are
rooted in
an attractive
business mix
that is
also a
source of
our competitive
strength. Our
asset-
gathering
businesses
are
characterized
by
being
structurally
attractive
from
a
capital
consumption
perspective
and
generate more than half of
our revenues
1
, while representing around
40% of our risk-weighted
assets (RWA)
1
. Roughly
another third of our
RWA
1
are in Personal &
Corporate Banking in Switzerland,
our home market and
an attractive, stable
and well-diversified
economy,
with low
historic credit
losses. Furthermore,
we operate
a capital-light
Investment Bank,
which is limited to 25% of Group RWA.
1
Moreover, our aim is to maximize our impact and that of
our clients to create long-term sustainable value. We also
have
a responsibility
toward the
communities we
serve and
our employees. We
have outlined
selected environmental,
social
and governance (ESG) aspirations, which we expect to
support our financial targets and ambitions.
We have a global, diversified business model
Our invested
assets of
more
than USD 6trn
are regionally
diversified across
the globe.
We give
our clients
access
to a
broad,
relevant
and
customizable
range
of
solutions,
which,
together
with
our
thought
leadership
and
capabilities,
position us well to
become their partner of choice.
Our strategic ambitions reflect the
long-term outlook on demographic
and social trends affecting wealth distribution, product demand
and client experience.
Half of our wealth management clients’ invested
assets are in the Americas, where we
are among the top players in the
world’s largest
wealth
pool, with
solid wealth
generation
prospects.
The Investment
Bank has
invested
in growing
its
Global Banking,
Global Markets
and Research
capabilities
in the
region, and
it is
focused on
cross-regional
and cross-
divisional collaboration to drive growth.
In Asia
Pacific, which is
the fastest-growing wealth
market, we are
by far
the largest
wealth manager,
2
and we
are building
on that scale to drive growth.
We are further developing
our businesses in the region
to deliver our leading capabilities,
leveraging our expanded and diversified footprint, strengths
in cross-divisional collaboration and global connectivity.
In EMEA we are focused on improving profitability and driving focused growth by optimizing our domestic footprint and
providing a comprehensive offering for entrepreneurs.
Finally, in Switzerland we have a highly
integrated business and aim to reinforce our position
as the leading bank. We are
driving our digital transformation, enhancing the client experience and improving efficiency, while focusing on capturing
selected
growth
opportunities.
We
are
also
delivering
on
our
commitments
to
our
home
market,
as
we
continue
to
provide around CHF 350bn of credit to Swiss companies
and the economy.
Annual Report 2024 |
Sustainability Statement | General information
12
We collaborate as one UBS to deliver integrated coverage
for clients
We strive
to serve
our clients
as one
firm, with
collaboration
across our
business divisions
being a
cornerstone
of our
strategy
and
a
key
differentiator,
as
we
deliver
the
best
of
UBS.
For
example,
our
asset-gathering
franchises
work
in
synergy
to
offer
clients
a
comprehensive
product
suite
paired
with
exclusive,
premium
personalized
services.
The
Investment Bank complements these by delivering
insights, execution capabilities and risk management expertise
to both
our
wealth
and
Swiss
corporate
clients.
We
regularly
enhance
this
integrated
approach
to
support
our
growth,
as
demonstrated by
recent initiatives,
such as the
establishing of
the division-agnostic
Unified Global
Alternatives and
the
creation of Global Wealth Management Solutions.
Supporting sustainability
We help our clients achieve
their sustainability and impact
objectives while navigating the
evolving macroeconomic and
complex regulatory
landscape. To
help us realize
this ambition,
our sustainability
and impact
strategy is
based on
three
strategic
pillars:
(i) Protect
–
manage
our
business
in
alignment
with
our
sustainable,
long-term
Group
strategy
and
evolving standards;
(ii) Grow –
embed an
innovative sustainability
and impact
offering across
all our
business divisions;
and (iii)
Attract
–
be the
bank of
choice for
clients and
employees.
We
support
our
clients in
the
transition
to
a
low-
carbon
world
and
consider
climate
change
risks
and
opportunities
across
our
bank
for
the
benefit
of
our
clients,
shareholders and all our stakeholders.
We are investing in our technology to drive business
outcomes
We have a proven technology strategy in place
to focus on delivery and experience for
our clients and employees, while
we are preparing for the future.
We are constantly modernizing our technology to support
an already strong foundation;
we
have
a
robust
infrastructure,
70%
of
which
is
in
the
public
and
private
Cloud,
that
maintained
over
99.999%
availability over the last year and maintains high security
standards.
This
foundation
facilitates
our
integration
and
enables
us
to
embrace
and
implement
innovation,
such
as
generative
artificial intelligence (AI), to bring technology products and
solutions to the next level.
We are
evolving into
an AI-driven
institution, using
generative
AI to
drive growth,
improve client
service, and
increase
productivity.
In the
fourth
quarter
of 2024,
we
announced
the
deployment
of 50,000
Microsoft
Copilot
licenses,
the
largest in the global financial services industry at
the time. This initiative is
already showing increased usage of generative
AI tools, with
1.75 million prompts
across all tools
in 2024,
and it is
expected to
substantially expand
in 2025.
We will
continue delivering AI initiatives across our businesses, including
re-inventing how we do software engineering.
We
invest in
partnerships
with
leading
academic
institutions
worldwide
and
other
key
players
to develop
ideas,
drive
outcomes across the firm and foster pioneering AI research.
We
are
committed
to
driving
innovation
and
excellence,
ensuring
that
our
technology
advancements
meet
the
expectations of our clients, employees, and stakeholders.
Our efforts
are supported
by our
governance and
controls that
are designed
to safeguard
the interests
of our
clients,
employees and other stakeholders.
›
Refer to the “Risk management and control” section of this
report for more information
1
Excluding Non-core and Legacy.
2
Asian Private Banker, 23 January
2024.
Annual Report 2024 |
Sustainability Statement | General information
13
Our stakeholder engagement
We engage with UBS’s stakeholders,
such as clients, employees, investors, policymakers, legislators
and regulators, along
with representatives of the business community, society and non-governmental
organizations (NGOs), on a regular basis
and on a
wide range
of topics.
This engagement
helps us to
better understand
stakeholder expectations
and concerns
and to manage
pertinent issues
and challenges.
In recent
years, the exchange
of views
and ideas with
stakeholders on
sustainability-related
issues
has
grown
in
importance.
Such
interactions
are
undertaken
through
various
dedicated
channels.
Employees
Our employees
want to
be heard
and to
be involved
in shaping
their daily
experience. As
such, we
offer opportunities
throughout
the
year
for
employees
to
connect
with
management
and
provide
feedback
on
topics
such
as
strategic
alignment, employee
engagement,
well-being, our
work environment
and line
manager effectiveness.
As an
example,
initiatives such
as our regular
Ask the
CEO event,
give employees
the chance
to learn
about (and
ask questions
about)
topics such as strategy.
Our multi-faceted
employee
listening
strategy
is adaptable,
captures
feedback
in
a
timely way
and
drives
meaningful
improvements to the employee experience. We conduct employee life cycle surveys,
short “pulse” surveys to understand
what is top
of employees’ minds and
in-depth analyses, such as
virtual focus group sessions.
In 2024, those
conversations
allowed participants from every business division and function to share their perspectives and insights on the integration
and provided employee sentiment data points to track progress. Group-wide surveys measure cultural indicators, such as
line manager effectiveness and employee experience.
Clients
Our clients’ needs and their preferred communication
channels continually evolve. Our objective is
to engage with clients
in
the
ways
most
convenient
for
them.
We
use
a
variety
of
channels,
in
particular
digital
channels
and
regular
client
relationship and service meetings, as
well as various corporate roadshows and
dedicated events, with a mix
of hybrid and
in-person events.
Global Wealth
Management
interacted
with its
clients through
a
broad range
of forums
and channels
in 2024,
from
personalized private briefings with
subject matter experts to
segment-specific virtual and in-person
events and large-scale
initiatives.
Through
marketing
and
media
campaigns,
events,
advertising,
publications
and
digital-only
solutions,
we
helped
drive
greater
awareness
of
UBS
among
prospective
clients
and
reinforced
trust-based
relationships
between
advisors
and clients.
We
proactively
engaged
with
clients
to reassure
them
about
the
acquisition
of the
Credit
Suisse
Group and highlighted the benefits
of the combined organization for
them. This was done through
individual meetings
and calls and by
opening up certain flagship events
and conferences to clients of the
combined firm. Our global footprint
means that we were
well positioned to
take advantage of the
opportunities in every region.
We have continued to
deliver
capabilities to clients,
for example
through digitally enabled
e-banking and sales
tools, while also
setting up new
units,
such
as
Global
Wealth
Management
Solutions,
Unified
Global
Banking
and
Unified
Global
Alternatives,
adding
even
greater connectivity
across all
our businesses.
We have
also continued
to roll
out artificial
intelligence (AI)
to positively
impact
our
business
and
serve
our
clients
better.
We
expect
generative
AI
will
continue
to
help
us
generate
more
personalized
advice
and
solutions
more
quickly
and
in
a
sustainable
and
responsible
way,
ensuring
a
more
efficient
experience for our clients around the globe.
Personal
&
Corporate
Banking holds
regular
client
events
(leveraging
a
number
of
formats,
such
as webcasts
and
in-
person, virtual or hybrid events), covering a wide range
of topics. In 2024, we further enhanced our digital engagement
strategies to
reach more
clients and
strengthen relationships
with existing
ones. We
utilize various
channels, including
social media, online displays, search engines and helplines,
as well as our branch network.
In Asset Management, we continue to host
our global program of client events
and engagement activities. These include
our annual
The Red
Thread
market outlook
roadshow, which
we host
in key
locations across
the world,
as well
as our
flagship
UBS Reserve Management Seminar
, which marked its 30th year of
operation in 2024. The event brings together
institutional investors
to debate
relevant topics and
share best practices,
and the accompanying
survey provides
one of
the most authoritative depictions of central banks’
investment views. Alongside this, our teams
continued the high level
of interaction
with clients
globally, supported
by digital
tools and
our publication
of macro
and thematic
insights. We
also hosted a broad range of hybrid events, including our investment
series, to help our clients better understand market
challenges and opportunities, and we continued to engage
with clients through our social media and online channels.
Annual Report 2024 |
Sustainability Statement | General information
14
The Investment
Bank hosted
more than
240 conferences
and educational
seminars
globally in
2024, providing
clients
with access
to corporations,
experts, research
and capital
introductions. The
events covered
a diverse
range of
topics,
including
macroeconomic,
geopolitical
and
sector-
and
region-specific
themes,
in
addition
to
regulatory,
product
and
market trends. More than 50,000 clients
took part in such events over
the year. We leverage our
intellectual capital and
relationships and use
our execution capabilities,
differentiated research content, bespoke
solutions, client franchise
model
and global platform to expand coverage
across a broad set of clients.
UBS Live Desk
,
built within the
UBS Neo
platform,
provides
clients
with
a
stream
of
fast-paced
commentary
from
UBS
traders.
The
UBS Analytical
Research
Community
(UBS-ARC)
is a
proprietary,
interconnected
research
network
of industry
leaders, subject
matter
specialists, executives,
academics and analysts in the Americas region.
Client feedback and surveys
We
engage
with
our
clients
on
a
regular
basis
and
on
a
wide
range
of
topics.
This
engagement
helps
us
to
better
understand
clients’
expectations
and
concerns,
including
those
pertaining
to
sustainability,
and
to
manage
pertinent
issues
and
challenges.
Feedback
received
from
clients
relevant
to
our
policies
is
considered
in
the
regular
reviews
of
policies
and
incorporated
where
applicable.
Our
client
insight
and
feedback
teams
are
responsible
for
gathering
and
processing all demands and issues raised through
our central channel, available online.
Investors
We have regular interactions
with institutional investors, financial analysts and
other market participants, such as
credit-
rating agencies, including on sustainability topics. These interactions
take place through the UBS Investor
Relations team,
with subject
matter experts
engaged as
required, and
help us
to learn
about investors’
concerns and
address them
as
effectively
as possible.
The
annual general
meeting
is also
an
open forum
for
shareholders
to voice
their
concerns
or
inquiries that may then feed into our approach on material topics.
Governments and regulators
Financial
market
stability
is
largely
dependent
on
the
overall
economic,
regulatory
and
political
environment
and
the
conduct of firms within the sector. We actively
participate in political and regulatory discussions to share our expertise on
proposed regulatory and
supervisory changes. Our
lobbying priorities
and engagements –
both direct
and indirect through
our
trade
associations
–
are
a
reflection
of
our
strategy
and
priorities.
In
Switzerland,
they
must
be
aligned
with
the
general political engagement approach defined by the
Political Board Swiss Chapter. In the US,
our lobbying priorities are
presented to and approved by the Region Americas’ top
management group at the beginning of each year.
Regarding
the
stability
of
the
financial
system,
UBS
advocates
for
an
internationally
aligned
regulatory
framework,
including capital
and liquidity
rules, anti-money
laundering and
digital regulation.
Moreover, in
the wake
of the
Credit
Suisse rescue,
we advocate
for targeted
and balanced
amendments to
the too-big-to-fail
(TBTF) framework
to address
the lessons learned from the
recent crisis. We also actively
engage in discussions relating
to corporate responsibility and
sustainability.
Sustainability
and
sustainable
finance
continue
to
remain
key
focus
topics
in
our
interactions
with
our
financial regulators and supervisors. These
are subject to ongoing oversight
and control by the second and
third lines of
defense.
In recognition of the vital function of Switzerland’s political parties, UBS
provided a total of CHF 1.2m
1
to political parties
in
both
2023
and
2024
as
a
contribution
toward
their
operational
costs.
These
financial
contributions
are
direct
and
calculated based on the number of parliamentary seats the respective party holds
at the federal and cantonal level. Swiss
parties are eligible to apply for a financial
contribution if they commit to free competition,
the market economy and the
Swiss
financial
center.
They
should
also
have
a
national
focus
and
either
form
a
parliamentary
group
in
the
federal
parliament or be represented in at least one cantonal government.
1
Beyond the above there were no additional contributions,
including in-kind.
Annual Report 2024 |
Sustainability Statement | General information
15
Society
We regularly
interact with
various stakeholders
across broader
society. This
supports our
efforts to
consider views
and
insights from
a range
of backgrounds
and further
enhances the
experience
UBS provides
both inside
and outside
the
firm. This includes UBS’s ambition to maximize its impact in local communities in which it operates
by providing financial
and human
support through
strategic grant
making and
employee volunteering.
Our partnerships
in academia
further
contribute to our efforts to engage with thought leaders
in universities and other academic institutions.
We
also
engage
with
NGOs
and
appreciate
their
input
and
insight,
as
they
help
us
consider
our
approach
to,
and
understanding
of,
societal
issues
and
concerns.
NGOs
have
long
established
themselves
as
critical
watchdogs
of
companies, both scrutinizing and challenging how we address
a broad range of environmental, social and human
rights
concerns. In 2024, discussions with NGOs remained particularly focused on
climate change, including the transition to a
low-carbon economy. Other topics discussed included sustainable
finance, human rights and nature.
Meanwhile,
our
media
teams
maintain
direct
and
long-term
relationships
with
media
representatives
across
all
our
business regions and provide them with timely information on a wide range of global, regional and
local topics. We also
actively engage in
dialogue with analysts
at ESG rating
and research
agencies,
which helps us
to evaluate our
sustainability
performance and
activities and
provides a
useful means
for benchmarking.
In 2024,
we provided
detailed information
about our sustainability
performance to
a range
of agencies, either
in response to
questionnaires or
via calls
(with ESG
analysts) and our Sustainability Report regularly serves as
a key source of information for these agencies.
Annual Report 2024 |
Sustainability Statement | Governance
16
Governance
Our sustainability governance
The role of our supervisory bodies – the Board of Directors
of UBS Group
The
Board
of
Directors
of
the
UBS
Group
(the
BoD)
has
ultimate
responsibility
for
the
success
of
the
Group
and
for
delivering sustainable
shareholder value within
a framework
of prudent and
effective controls.
The BoD decides
on the
Group’s strategy and the
necessary financial and human
resources, on the recommendation of
the Group Chief Executive
Officer (the
Group CEO),
and also
sets the
Group’s values
and standards
to ensure
its obligations
to shareholders
and
other
stakeholders
are
met.
The
BoD
oversees
the
overall
direction,
supervision
and
control
of
the
Group
and
its
management.
It
also
supervises
compliance
with
applicable
laws,
rules
and
regulations.
The
Chairman
of
the
BoD,
together
with the
Group CEO,
takes
responsibility for
UBS’s reputation
and is
closely
involved in,
and responsible
for,
ensuring
effective
communication
with
shareholders
and
stakeholders,
including
government
officials,
regulators
and
public organizations.
As of 31
December 2024, the
UBS Group BoD
consisted of 12
non-executive members
and the Group
Executive Board
(the GEB) consisted of 15 executive members (2023: 12 and
16 respectively).
All non-executive members are also elected
as members of
the UBS
AG BoD.
Except for the
President of UBS
Switzerland AG, all
GEB members are
executive members
of UBS AG.
As of 31
December 2024, the
UBS AG BoD
consisted of
12 non-executive
members and the
Executive Board consisted
of 14 executive members. The number of members is unchanged
from 2023.
26.7% (2023: 37.5%) of members of the UBS Group GEB
and 41.7% (2023: 33.3%) of members of the BoD were
women, while for UBS AG women made up 21.4% of members
of the Executive Board and 41.7% of members of the
BoD.
The BoD’s role on ESG topics
Five committees support the BoD in fulfilling its duty through the respective
responsibilities and authority given to them.
All BoD committees
have specific responsibilities
pertaining to ESG
(environmental, social
and governance) matters.
For
example, the
Risk Committee
supervises the
integration of
ESG in
risk management,
the Governance
and Nominating
Committee
supports the
BoD in
establishing
best practices
in corporate
governance, the
Compensation Committee
is
responsible for
financial and
non-financial compensation
topics, and
the Audit
Committee has
oversight of the
control
framework underpinning ESG metrics.
›
Refer to the “Corporate Governance” section
of this report for more information about BoD committees
The BoD’s Corporate Culture
and Responsibility Committee
(the CCRC) is the
supervisory body primarily responsible
for
corporate culture and
sustainability. It is
chaired by
the Chairman of
the UBS
Group, with four
BoD members
as committee
members.
Permanent
guests
include
the
Group
CEO,
the
Group
Chief
Risk
Officer
(the
GCRO),
the
GEB
Lead
for
Sustainability
and
Impact
(S&I), the
Chief Sustainability
Officer
(the
CSO) and
the
Group
General
Counsel.
The
CCRC
oversees
our
Group-wide
sustainability
and
impact
strategy
and
key
activities
across
environmental
and
social
topics.
These include climate, nature and
human rights. Annually, it considers and
approves the firm’s sustainability and
impact
objectives.
As part
of this
process,
it also
considers
the
impact and
financial
materiality
of climate-
and sustainability-
related risks and opportunities on UBS.
The CCRC’s
function is
forward-looking in that
it monitors
and reviews
societal trends and
transformational developments
and assesses their potential relevance for the Group. In
undertaking this assessment, it reviews stakeholder concerns and
expectations pertaining to the
societal performance of UBS
and the development
of its corporate
culture. UBS has
various
mechanisms (including complaint
and feedback procedures)
in place to ensure
that such concerns and
expectations are
received, managed and, where necessary,
brought to the attention of
the GEB and the BoD.
The CCRC is also
responsible
for conducting the annual review
process for the Code of
Conduct and Ethics (the Code) and
for proposing amendments
to the BoD. This process includes a prior review of the Code
by the GEB and is led by the Group CEO.
The role of our supervisory and administrative bodies
The GEB develops the Group
strategy and is responsible
for managing our assets and
liabilities in line with that
strategy
and our regulatory commitments, and in 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 and has
overall responsibility for establishing
and implementing
risk management and
control. For the
management of risks,
UBS maintains a
risk governance framework. This
framework
also governs ESG risks.
Annual Report 2024 |
Sustainability Statement | Governance
17
Our risk governance
framework operates
along three
lines of defense.
Our first line
of defense, business
management,
owns its
risks and
is accountable
for maintaining
effective
processes and
systems to
manage them
in compliance
with
applicable
laws,
rules
and
regulations,
as
well
as
internal
standards,
including
identifying
control
weaknesses
and
inadequate processes.
Our
second
line
of
defense,
control
functions,
is
separate
from
the
business.
Control
functions
provide
independent
oversight, challenge financial and non-financial risks arising from the firm’s business activities and establish independent
frameworks for
risk assessment,
measurement, aggregation,
control and
reporting, protecting
against non-compliance
with applicable laws, rules and regulations.
Our third line of defense,
Group Internal Audit (GIA),
reports to the Chairman
of the BoD and to
the Audit Committee.
This
function
assesses
the
design
and
operating
effectiveness
and
sustainability
of
processes
to
define
risk
appetite,
governance, risk management, internal controls,
remediation activities and processes to
comply with legal and
regulatory
requirements and internal governance standards.
›
Refer to the “Non-financial risk framework” in the
“Risk management and control” section of this report for
information about
our approach to managing non-financial risks
Ensuring (availability of) appropriate skills and expertise
The
BoD
and
the
GEB
are
well
diversified
and
composed
of
members
with
a
broad
spectrum
of
skills,
educational
backgrounds, experience
and expertise from
a range of sectors that
reflect the nature
and scope of the
firm’s business.
The Governance
and Nominating
Committee
maintains
a competencies
and experience
matrix to
identify gaps
in the
competencies
and
experiences
considered
most
relevant
to
the
BoD,
taking
into
consideration
the
firm’s
business
exposure, risk profile, strategy and geographic reach. In
recent years, the composition of the
BoD has been systematically
shaped in response to the identified requirements. We consider the continuous education of our BoD and GEB members
to be
an important
priority and
support their
participation in
various training
sessions. In
addition to
a comprehensive
induction
program
for
new
BoD
members,
continuous
training
and
topical
deep
dives
are
part
of
the
BoD
and
GEB
agenda.
Annual Report 2024 |
Sustainability Statement | Governance
18
Our sustainability governance
Our sustainability
and corporate culture
activities are
grounded in our
Principles and Behaviors
and overseen at
the highest
level of our organization. Our Code covers our commitment
to acting with the long term in mind and
creating value for
clients, employees, communities and
investors. This includes
our commitment to
protecting the environment
and fulfilling
our compliance obligations.
Integration of Credit Suisse
In
2024,
we
advanced
with
integrating
Credit
Suisse
sustainability
activities.
It
is
our
aim
to
complete
integration
in
accordance with the overall UBS Group integration efforts
and timeline.
›
Refer to the “Integration of Credit Suisse”
section of this report for more information
Group Sustainability and Impact (GSI)
GSI
develops
the
Group’s
sustainability
and
impact
(S&I)
strategy
and
oversees
the
strategy’s
implementation
by
the
business divisions and Group functions responsible for execution.
GSI operates as a Group function under the leadership
of the GEB Lead
for S&I. Each of
the senior managers
listed below reports
directly to the
GEB Lead for
S&I. Specifically,
the senior manager roles directly reporting to the GEB
Lead for S&I are the Chief
Sustainability Officer, the Head of Social
Impact and Philanthropy and the GSI Chief Operating
Officer.
Senior managers may hold more than one role and, where
required,
may have additional responsibilities and reporting
lines in the Group’s legal entities.
GEB Lead for Sustainability and Impact
The GEB
Lead for
S&I has
overall responsibility
for the
management and
control
of the
GSI function.
In particular,
the
GEB Lead for S&I is
responsible for the oversight of matters, such as maintaining an
appropriate and adequate functional
organization
designed
to
ensure
compliance
with
applicable
laws and
regulations.
Additionally,
where
necessary,
the
GEB Lead
for S&I
represents
UBS in
interactions with
regulatory
authorities on
Group-wide
sustainability-
and impact-
related topics in close coordination with the Group CEO, other GEB members and Governmental and Regulatory Affairs.
In relation
to disclosures,
the
annual UBS
sustainability
reporting
and disclosure
process
is managed
by the
GEB Lead
jointly with Group Finance.
Chief Sustainability Officer
The Chief
Sustainability Officer
(CSO), jointly
with the
Head of
Social Impact
and Philanthropy
(SIP), supports
the GEB
Lead for S&I
in setting the
Group-wide S&I
strategy,
in alignment with
the business
divisions and Group
functions. The
CSO and team
develop and maintain
frameworks and methodologies
to drive Group-wide
consistency.
In addition, the
CSO team monitors
new GSI regulatory
consultations and owns
and drives Group
advocacy efforts,
in partnership with
the GSI
Chief Operating
Officer (GSI
COO) and
GSI-aligned Group
functions. The
CSO maintains
and annually
reviews
our S&I commitments,
memberships or contracts
at Group, divisional,
functional or regional
level for completeness
and
alignment with the Group-wide S&I strategy
.
Head of Social Impact and Philanthropy
The Head of SIP and team oversee the UBS charitable entities,
including Optimus Foundation entities and donor-advised
fund entities.
Their
remit
includes
overseeing
the
strategy,
corporate
structure
and governance,
financial
matters
and
relevant risks and controls. The SIP team reviews inherent reputational risks relating to social impact grants and escalates
high reputational
risks to
the GEB
Lead for
S&I, in
line
with the
UBS Reputational
Risk Management
Policy.
They also
manage the SIP client
and employee offering through the delivery of
philanthropic insights, advice and execution services
to existing and prospective clients.
Annual Report 2024 |
Sustainability Statement | Governance
19
GSI Chief Operating Officer
The GSI
Chief Operating
Officer (GSI COO)
and team
manage the
end-to-end processes and
the service
delivery, operating
and
control
environment
of
GSI,
together
with
business
divisions
and
Group
functions,
ensuring
timely
escalation
of
relevant matters
impacting GSI and
effective oversight
of operational performance.
Furthermore, they
support the GEB
Lead
for
S&I
in
developing
Group-wide
S&I
objectives,
in
alignment
with
business
divisions
and
Group
functions,
to
implement the
Group-wide S&I strategy
and monitor
the progress against
these objectives. In
addition, the team
manages
the annual UBS sustainability reporting process,
jointly with Group Finance.
Oversight of objective-setting and monitoring processes
UBS runs an
annual objective-setting
process for objectives
related to
sustainability and impact
matters, which includes
environmental
(including
climate-related)
and social
topics. As
delegated
to the
GEB Lead
for S&I
by the
Group
Chief
Executive
Officer
(the
Group
CEO),
the
GEB
Lead
for
S&I
is
responsible
for
setting
the
Group-wide
S&I
strategy
and
developing
Group-wide
S&I
objectives
in alignment
with
business
divisions
and Group
functions.
The
annual
strategy
review
and objective-setting
process
is done
to identify
priorities and
strategic focus
areas
across
the Group.
Progress
made in implementing Group-wide S&I objectives is
reported as part of UBS’s annual sustainability disclosure.
›
Refer to “Strategy” in this section for more information
In 2024, to further support our
evolved S&I strategy, we revised our
GSI governance structure and internal forums, which
now comprise the GSI Business Development & Client Forum
(the GSI BDCF) and the GSI Execution Forum (the GSI
EF).
GSI Business Development & Client Forum
The GSI
BDCF is
established under
the authority
of the
GEB Lead
for S&I.
The forum
is focused
on client,
product and
impact approaches in relation
to the overall UBS S&I implementation
activities, together with the
business divisions. The
GSI BDCF is the most senior administrative body overseeing
the Group-wide S&I activities.
GSI Execution Forum
The GSI Execution
Forum reports to the
GSI BDCF and
is established under
the authority of
the GSI COO
to help discharge
their role and responsibilities. The forum is responsible for the oversight of the front-to-back operating environment
and
for the implementation of the Group-wide S&I strategy
through Group-wide strategic objectives
and outcomes.
Other senior management roles with Group-wide sustainability
responsibilities
Chief Risk Officer Sustainability
Our management of
sustainability and climate
risk is steered
at the GEB
level. Reporting to
the Group
CEO, the
Group
Chief
Risk
Officer
is
responsible
for
developing
and
implementing
control
principles
and
an
appropriate
independent
control framework
for sustainability
and climate
risk within
UBS, together
with integrating
it into
the firm’s
overall risk
management and risk
appetite frameworks. The
Chief Risk Officer
Sustainability supports the
GEB by providing
leadership
on sustainability risk in collaboration with business divisions and
Group functions.
GSI Chief Financial Officer
The GSI
Chief Financial
Officer
(the GSI
CFO) is
the primary
lead on
sustainability topics
for the
Group
Chief Financial
Officer
(the
GCFO),
working
closely
with
the
Group
Controller
and
the
GEB
Lead
for
S&I.
The
GSI
CFO
oversees
the
external
sustainability
disclosures
and
associated
requirements
in
partnership
with
Group
Legal,
Group
Compliance,
Regulatory and Governance, Group
Risk and GSI.
The GSI CFO
additionally ensures that UBS operates
an effective control
environment, underpinning our sustainability disclosures
and reporting processes.
Head of Group Compliance, Regulatory & Governance (GCRG)
Sustainability
The Head
of GCRG Sustainability
is responsible
for the
integration of
ESG requirements
into the UBS
non-financial risk
framework
and
non-financial
risk
appetite
objectives
in
line
with
firm-wide
standards
as
part
of
the
broader
GCRG
mandate. GCRG
is respon
sible for
developing
the Group’s
risk management
and control
framework
for non-financial
risks
(compliance
risk,
operational
risk
control
and
financial
crime
prevention).
The
GCRG
function
provides
ongoing
monitoring of the adequacy
of our control
environment for
these risks and drives
the review
and, where necessary,
the
required adaptations to our internal frameworks to ensure that
our independent control and oversight capabilities evolve
in line with emerging regulations and changes across
business activities.
Head of Sustainable Finance Legal
The Head
of Sustainable Finance
Legal is
responsible for the
ongoing delivery of
legal advice
to the CSO,
business divisions
and Group
functions
in relation
to sustainability
matters. The
Sustainable Finance
Legal (SFL)
team acts
as a
center of
excellence fully
dedicated to
sustainability-related
legal risks
and opportunities.
This includes,
but is
not limited
to, the
interpretation of and provision of support
for the implementation of sustainability-related laws and
regulations in the EU,
the
UK,
Switzerland
and
Asia
Pacific,
and
regional
and
global
international
standards
applicable,
in
particular,
to
sustainable
products,
services
and
activities.
In
addition,
SFL
monitors
the
regulatory
developments
in
the
space
of
greenwashing
along with
sustainability-related
disputes (including
regulatory
enforcement
actions), human
rights
and
environmental due diligence regimes across
the globe.
Annual Report 2024 |
Sustainability Statement | Governance
20
Key sustainability topics
Climate program
The
climate
program
coordinates
the
implementation
and
execution
of
our
ambition
to
support
our
clients
in
the
transition to a low-carbon world and embed considerations of climate
change risks and opportunities in our firm for the
benefit of our
stakeholders. It does so
in line with
UBS’s fiduciary responsibilities and
includes members from the
business
divisions and
Group
functions. As
part of
the program,
our in-house
environmental
management is
steered
by Group
Real Estate and Supply Chain (GRESC).
Other key sustainability topics
Human rights
As our Human
Rights Statement articulates, the
governance outlined above also
applies to our
commitment to respecting
internationally recognized human rights across UBS globally.
›
Refer to the Human Rights Statement available
at
ubs.com/sustainability-reporting
, for more information
Business conduct and corporate culture
In our Code of Conduct and Ethics
(the Code), the Board of Directors (the
BoD) and the Group Executive Board (the
GEB)
set out
the
principles and
practices
that define
our ethical
standards and
the way
we do
business,
which
apply
to all
aspects of our business. The
Corporate Culture and Responsibility
Committee (the CCRC) of
the BoD is also responsible
for conducting the annual
review process for the
Code and for proposing
amendments to the
BoD. This review process
includes a prior review
of the Code by
the GEB and is
led by the Group
CEO. In undertaking
this assessment, it reviews
stakeholder concerns and
expectations pertaining to
the societal performance
of UBS and to
the development of UBS’s
corporate culture.
›
Refer to the Code of Conduct and Ethics of
UBS, available at
ubs.com/code
, for more information
Principles for identifying, preventing, escalating and managing conduct
risks are established in the Group-wide Conduct
Risk Management Framework.
These principles are
aligned to the
Code and the
Group-wide escalation framework
and
include:
–
our
strategy
and
business
model,
along
with
our
incentives
and
rewards,
which
are
designed
to
actively
manage
conduct risk.
Above all,
our culture
and our
Principles
and Behaviors
are the
strongest
mitigant to
our exposure
to
conduct risk;
–
a review of relevant management
information,
which is critical to giving
a view of the risk
landscape and where risks
may be crystallizing;
–
policy,
appetite
and
governance,
which
are
key
components
of
our
conduct
risk
framework
and
contribute
to
its
sustainability.
Identifying actual or potential conduct risks is the responsibility of every UBS
employee,
who must take appropriate steps
to identify and escalate
any actual or
potential conduct risks
they may see
in their day-to-day-activities
and have a
duty
to lead by example, role model UBS’s Behaviors and support
our risk culture of “see something, say something.”
Ongoing monitoring ensures the firm’s activities and those
of employees are monitored to detect issues with a potential
impact on clients and markets and to detect individual cases
of employee misconduct.
We are committed
to incentivizing the
right behavior by
establishing reward principles
and internal control
frameworks
to support adherence to internal and external standards, laws, rules
and regulations.
Violations, whether it is
of our Code, UBS
policies or external laws, rules
or regulations, may result in
a disciplinary action,
up
to
and
including
dismissal.
Furthermore,
employees’
conduct
is
taken
into
account
in
year-end
performance
and
reward decisions.
We have a
global mandatory training
module,
Conduct and Culture,
that educates
all UBS employees
on adherence
to
the three keys to success, understanding the Code, identifying conduct risk
and how it can arise from within any part of
the organization, and culture and ethics.
Additionally, all employees must affirm annually
that they have read and
will adhere to the Code and other
key policies,
supporting a culture
where ethical and
responsible behavior is
part of our
everyday operations. By
following and affirming
the Code, we foster a culture
where responsible behavior is ingrained
in a way that protects our
clients, our people and
our reputation
and ensures
stability and
sustainable performance.
This safeguards
our ability
to create
lasting value
for
our shareholders, clients and societies.
Annual Report 2024 |
Sustainability Statement | Governance
21
Significant matters requiring immediate senior management
awareness and action are managed in accordance
with our
Group-wide
escalation
framework,
which
lays
out:
(i)
minimum
requirements
for
escalations;
(ii)
applicable
escalation
paths
for
distinct
governance
dimensions;
and
(iii)
the
interplay
between
governance
dimensions.
The
framework
is
complemented by relevant
divisional / functional
/ legal entity
/ local annexes
detailing specific escalation
requirements,
which outline
taxonomies, thresholds, processes and protocols. The framework
does not replace day-to-day information
exchange, decision-making mechanisms or
regular reporting. As
such, the escalation framework
does not replace
existing
governance, line management,
any of the
existing monitoring /
reporting requirements
or regular risk
assessments that
may result in the need to report and follow up.
The
firm
has
a
global
Whistleblowing
Protection
for
Employees
Policy
and
framework,
with
established
internal
whistleblower
reporting
channels,
including
hotlines
and
an
online
platform,
where
the
whistleblower
can
remain
anonymous if preferred.
All
employees
are
required
to
complete
mandatory
Speak
Up
training
every
two
years,
with
new
joiners
required
to
complete
it
upon
onboarding.
This
training
aligns
with
the
Whistleblowing
Protection
for
Employees
Policy,
raising
awareness of available
reporting channels. Throughout the
year, there are
activities such as
communication from the GEB,
newsletters, whistleblowing campaigns and regular employee surveys, aimed at encouraging
employees to speak up and
raise awareness with regard to the various whistleblower
reporting channels that can be used to raise concerns.
For staff
receiving whistleblowing
reports, there
are procedures
and guidance
on handling
such reports
to ensure
each
whistleblowing
concern
is
taken
seriously
and
investigated.
Whistleblowing
reports
made
through
the
dedicated
whistleblowing channels
(hotlines and
online platform)
are received
and appropriately
triaged by
the relevant
Regional
Head of Investigations and their delegates (selected
investigators in their team),
who are trained on how to handle
such
whistleblowing reports.
There are controls
and processes in
place to check
for potential retaliation
against known whistleblowers.
For example,
if a whistleblower is potentially
at risk of redundancy,
this individual is flagged
to the Investigations Operating
Group to
assess whether the redundancy decision is made independently
of the whistleblowing.
Our framework and
Group Investigations Policy define
clear roles and responsibilities,
including reporting requirements,
for ensuring accurate and complete quarterly reporting to
the BoD and the GEB, as well as to regulators.
Our Group
Investigations function
is responsible
for delivering
and overseeing
all investigations,
including incidents
of
corruption and bribery.
These must be conducted
and governed in a
way that ensures the
investigations are independent,
objective
and
reliable
as
defined
in
our
Group
Investigations
Policy,
which
governs
the
conduct
of
all
investigations,
including
whistleblowing
investigations.
Roles
and
responsibilities
in
the
overall
Group
Investigations
framework
are
defined at two levels: (i) cross-functional governance
bodies that have responsibilities across the investigations
portfolio;
and (ii) prescribed roles and responsibilities over certain individual
investigations.
Policy effectiveness
is assessed
through our
non-financial risk
framework. All
policies are
accompanied by
controls that
are
designed
to
prevent
non-financial
risks
from
materializing,
ensuring
UBS
operates
within
its
risk
appetite.
These
controls are
regularly evaluated
for both
design and
operational effectiveness.
Should the
firm operate
beyond its
risk
appetite or if a non-financial risk event occurs, corrective
actions are taken to return to within the defined
appetite. This
may involve remediating deficient controls, adjusting risk tolerance, modifying
the firm’s risk profile or accepting the
risk.
Independent assurance processes are in place to promptly
identify and address heightened non-financial risks.
Non-financial risks are regularly reported to the
GEB and the BoD. The
BoD oversees UBS’s risk management and culture,
approving the risk management
and control framework
of the Group. The
GEB, acting as
the risk council,
holds overall
responsibility
for
establishing
and supervising
the
implementation
of risk
management
and control
principles,
and
for
managing the
Group’s risk
profile as
determined by
the BoD
and the
Risk Committee. Monthly
reports summarize relevant
changes to the firm’s risk profile
and the Annual Non-Financial
Risk Report highlights the identified
key risk themes and
activities undertaken to manage related exposures.
Combating financial crime
The GEB
oversees our
efforts to
combat money
laundering, corruption
and terrorist
financing. Our
first line
of defense
owns
the
anti-money-laundering
(AML)
and
terrorist-financing
risk
front
to
back
for
its
respective
clients
and
their
activities and has the primary responsibility for managing that risk. Dedicated staff
in our second line of defense support
the organization
in developing,
maintaining and
implementing Group
financial crime
programs,
including control
and
oversight.
Our
third
line
of
defense
is
the
reinforcement
component
led
by
Group
Internal
Audit
and
independently
evaluates the financial crime control frameworks.
UBS complies
with applicable laws
and regulations
and is
committed to meeting
industry standards regarding
the effective
prevention
of money
laundering
and financing
of terrorism.
We
take
comprehensive
measures
to
prevent
and
detect
non-compliance with
laws and regulations
and do
not tolerate
or facilitate
criminal activity
or breaches
of the
letter or
spirit of applicable laws, regulations, rules and policies designed to
prevent such activities.
We do not
engage in business
activities that present
unacceptably high levels
of money laundering,
fraud, sanctions or
corruption risk.
Additionally, we
do not
engage in
activities
that pose
risks that
cannot be
effectively managed
by the
existing
control
environment.
Although
it
is
not
possible
to
eliminate
such
residual
risk
entirely,
we
have
appropriate
policies, procedures, controls and processes in place to manage
the relevant risks.
Annual Report 2024 |
Sustainability Statement | Governance
22
We assess
the money
laundering, fraud,
sanctions and
bribery and
corruption risks
associated with
all of
our business
operations annually against our control framework and take
action, where appropriate,
to further mitigate these risks.
Public-private partnerships
We are a founding
member of the
Wolfsberg Group, an
association of global
banks that aims to
develop standards for
the
financial
services
sector
to
prevent
financial
crimes,
such
as
money
laundering,
fraud,
corruption
and
terrorist
financing,
and
to
develop
industry
standards
for
know-your-client
(KYC)
due
diligence
and
ongoing
transaction
monitoring.
The Wolfsberg Group brings together banks from around
the world at its annual forum and regional outreach meetings
focused on financial
crime topics. It
also delivers an
annual academy to
support the development of
junior Financial Crime
Prevention (FCP)
officers and
works on
guidance papers
in related
key areas
of financial
crime. UBS
is actively
involved
with this group.
We are a member of various
public-private partnerships operating globally that have been set
up to foster closer working
relationships between financial institutions
and law enforcement, most notably
the Joint Money Laundering Intelligence
Taskforce operations group in the UK, which has worked
on a number of human trafficking and modern slavery
cases.
Prevention and detection of corruption and bribery
Our
Group
Policy
Against
Bribery
&
Corruption
(ABC
Policy)
is
consistent
with
the
principles
of
the
United
Nations
Convention
against
Corruption.
Our
policy
sets
out
a
zero-tolerance
approach
to
bribery
and
corruption;
UBS
is
committed
to detecting
and
preventing
bribery
and corruption
and
requires
employees
and associated
persons
to do
business in a fair and transparent manner, in compliance
with the principles of the policy.
Every employee is responsible for the following:
–
compliance with
the UBS
Group’s zero-tolerance
approach to
bribery and
corruption and
the requirements
set forth
in the policy and related procedures;
–
taking reasonable steps to detect and prevent bribery;
–
maintaining accurate books and records to fairly reflect
employees’ expenditure;
–
reporting cases of concern or doubt to Financial Crime Prevention Anti-Bribery and Corruption (FCP ABC) or based on
the Group’s Whistleblowing Protection for Employees Policy.
Delegated by
the Global
Head Financial
Crime Prevention
to Anti-Bribery
and Corruption
(ABC) Taxonomy
Owner, the
Global ABC Head, supported by
the specialized teams, is
responsible for establishing and maintaining
an ABC framework
and incorporating the
principles of the
policy as minimum
global standards.
To this end,
we have controls
in place
and
hold ourselves accountable for detecting, stopping and reporting bribery and corruption matters; we do not tolerate any
form of corruption or bribery, including facilitating payments, nor
do we offer or accept improper gifts or payments.
The ABC framework comprises: policy,
procedures, training and communications, risk assessments,
controls across all key
risks areas, investigations
and incident management,
and monitoring and
assurance (including
independent audit). The
framework aligns
with globally
recognized standards
and laws,
rules and
regulations designed
to prevent
and mitigate
bribery and corruption risks
across all jurisdictions in
which we operate (e.g. UK
and US legal and
regulatory requirements
for ABC frameworks,
including the UK
Bribery Act and
the US Foreign
Corrupt Practices
Act). There is
a global team
of
dedicated
anti-bribery
and
corruption
officers
responsible
for
setting
and
maintaining
the
framework
standards.
The
board
and
senior
management
set
out
the
ABC
policies
and
risk
appetite,
and
all
employees
are
accountable
for
compliance.
The
ABC
framework
includes
controls
across
all
key
risk
areas:
employees,
third
parties
(vendors
and
intermediaries),
charitable
and
political
donations
and
sponsorships,
hiring,
gifts
and
business
entertainment,
deals,
mergers and
acquisitions, and
client-related
ABC risk.
There is
regular control
testing to
ensure that
the program
and
controls are appropriately designed, operationally effective
and adhered to in line with policy requirements.
Where corruption or
bribery incidents arise,
these are identified
through controls monitoring, self-declaration
or reporting
(e.g.
through
the
whistleblowing
mechanism)
or
through
ongoing
due
diligence
or
risk
assessments.
Each
incident
is
assessed for
severity
and impact
,
with senior
management
involved
for
the
more
serious
incidents.
Incidents
that
are
breaches of the Group’s
policies, including the
ABC Policy, are dealt
with in line with
the Employee Incidents Policy
and
framework and may result in disciplinary action, including
dismissal, in serious cases.
The ABC risk appetite of UBS
(including business division appetite and significant Group entity appetite)
is defined within
the Anti-Bribery and Corruption Risk Appetite Statement
(RAS), which is governed by the Non-Financial
Risk Framework
Policy and aims to define the
risk appetite of the firm in
relation to bribery and corruption
risks. The ABC RAS is
subject
to annual approval and review by the Board of Directors (the
BoD).
Inherent risks for bribery and corruption
within the organization are not dissimilar to
those faced by other multinationals;
specifically, third-party risk, employee insider threat risk and client risk. The organization has a robust framework in place
to monitor and mitigate the risk of bribery or corruption arising through such inherent risk sources across all levels of the
organization. Specifically, the
framework includes controls
coverage of functions
where such inherent
risk is more
likely
to
arise,
such
as
those
functions
and
teams
that
actively
engage
with
clients
and
third
parties
and
those
involved
in
employee hiring
(i.e. business
first-line
teams and
third-party
and employee
management
functions).
Additionally,
the
framework and policy are applicable to all employees, including
executive-
and board-
level management.
Annual Report 2024 |
Sustainability Statement | Governance
23
The
Group
Investigations
team,
including
investigators
and
the
investigations
committee,
are
independent,
with
a
separate reporting line to the ABC framework and team
management. This allows for fair and independent investigation
of both internal or external concerns relating to bribery or
corruption.
The effectiveness
of the
ABC framework,
including incident
management reporting,
is subject
to frequent
and regular
updates at both first-and second-line management
forums, including up to the BoD. The reporting
includes provision of
qualitative and
quantitative risk
indicators, covering
both inherent
and control
risk. When
a threshold
is exceeded,
this
may indicate an increased
risk of bribery and
corruption. Assessment of
these risk indicators on
a regular basis prompts
the identification of
excess(es) of the
thresholds under the
program’s risk appetite
assessments, which will
trigger a review
of whether (further)
action is deemed necessary
at a divisional /
entity and / or
Group level to avoid
undue risk, thereby
focusing on staying within the overall ABC risk appetite.
The
ABC
Policy
is
translated
into
multiple
languages
and
is
accessible
to
all
employees
through
our
internal
policy
repository and relevant
intranet ABC site.
There is mandatory
training for all employees
on the policy requirements
(see
details
below
for
further
information
on
training
provision
under
the
ABC
framework).
Furthermore,
an
annual
declaration and commitment to this
policy is required from all
UBS staff, including a statement of
compliance with regard
to any past or current bribery-
or corruption-related incidents.
In 2024, all employees
of UBS, including
its senior management
and governance bodies,
received adequate training
on
financial crime prevention
matters, which covers
AML / KYC, sanctions,
fraud and anti-corruption.
All staff are required
to complete the Global Financial Crime Prevention refresher
module on an annual basis. The frequency for each training
course is specified by the course owner (onetime, annual, bi
-annual).
ABC training is mandatory for
all UBS Group employees, including
the GEB and the BoD, and
is rolled out on an annual
basis.
All
new
joiners
are
required
to
complete
a
more
substantial
training
course
within
30
days
of
joining,
then
all
employees are
required to
complete an
annual refresher
training course
within 60
days of
rollout (with
a test
score of
80% required
to pass).
The
training covers
the
full ABC
Policy and
framework,
including topics
on risk
identification,
assessment and escalation of bribery and corruption.
Additional
targeted
training
is
delivered
online
or
in
person
to
selected
functions
on
specific
financial
crime
risks
associated with the business lines or activities they are involved
in, as needed.
Web-based training modules are regularly
updated to address compliance issues,
including financial crime standards, and
to incorporate learning from both internal and external events
and geopolitical developments.
Onboarding and ongoing monitoring
UBS performs risk-based
initial due diligence
on all customers,
which is designed
to establish their
identity and ownership,
the
nature
of their
business
activities, and
the
source(s)
of their
wealth
and funds.
This includes
formal
processes
for
mitigating the
risk of
impersonation
fraud in
circumstances
where
we are
not doing
business on
a face
-to-face
basis.
Where the client represents a
potentially elevated risk according
to the Group AML &
KYC Policy, enhanced due diligence
is performed.
We do not establish
or maintain relationships with
parties when the KYC
information cannot be
sufficiently established
or where
we have
reason to believe
the party
has or intends
to use
UBS products
or services
for illicit
activities. We
do
not
open
accounts
for
relationships
that
do
not
meet
our
standards
or
that
pose
unacceptable
financial
crime
or
reputational risks for the firm.
After a
client onboarding is
completed, ongoing
due diligence
and name
screening are
performed during
the life
cycle
of the client
relationship. Clients
are subjected
to regular
risk rating and
client activities
and transactions
are subject
to
AML transaction monitoring. In addition, ongoing periodic KYC reviews are conducted with varying frequency, driven by
the client risk rating.
Our Group AML & KYC Policy sets
out the process and criteria relating to the
identification, senior management sign-off,
periodic
review
and
ongoing
monitoring
of
clients
deemed
to
be
Politically
Exposed
Persons
(PEPs),
along
with
other
customers who have links with jurisdictions or industries
that pose elevated levels of financial crime risk.
We apply
KYC rules
and use
advanced technology
to help
identify suspicious
transaction patterns
and compliance
risk
issues. We continue
to invest in our
detection capabilities and
core systems as
part of our FCP
program. Red flags
must
be referred to
FCP if any
UBS staff become
aware of potentially
suspicious activities
during the client
life cycle
and this
may result in
investigation, suspicious
activity report
filing and
/ or client
exit, as
appropriate. When
a UBS
employee is
suspected of
or identified as
acting or
failing to act
in accordance
with applicable
laws or
regulations
or in
violation of
UBS policy,
we escalate
this to
Group Investigations
for further
assessment under
the Group
Investigations Policy.
Our
Group Investigations Policy
defines clear roles
and responsibilities, including
reporting requirements, for
ensuring accurate
and complete quarterly reporting to the BoD and the GEB,
as well as to regulators.
We
adhere
to
the
global Financial
Action
Task
Force
standards
and
local
laws
and
regulations
with
regard
to
record-
keeping.
Annual Report 2024 |
Sustainability Statement | Governance
24
Our entire financial crime
framework is subject
to regular controls testing,
in both the first
and second lines of defense,
which includes
a cycle
of regular
peer review
testing executed
by a
designated team
within the
Group’s FCP
function.
Additionally, our Group Internal Audit
team performs a rigorous cycle
of independent audit reviews
covering the financial
crime framework globally and cross-divisionally and we are subject to ongoing supervision by regulatory authorities in all
the markets in which we operate.
Conduct and culture
The Code sets
out the principles
and commitments
that define
our ethical
standards and
the way we
do business. The
Code commits
all UBS
employees to
do whatever
we can to
combat money
laundering, fraud,
corruption and
terrorist
financing.
Additionally, the Code requires
that UBS employees do
not help or advise
our clients, or
any other party, to
evade taxes
or misreport taxable income and gains.
It also states that we should not contract
with third parties who provide services
for UBS or on our behalf, where those services help others
improperly evade taxes.
›
Refer to the Code of Conduct and Ethics of
UBS, available at
ubs.com/code
Annual Report 2024 |
Sustainability Statement | Strategy
25
Strategy
Our sustainability and impact strategy
We are guided by
our ambition to be
a leader in sustainability.
This is reflected in
our vision to be
the bank for the
next
generation. To
help us realize
that vision,
our sustainability
and impact
strategy is
based on
three overarching
strategic
pillars: Protect, Grow and Attract, representing a natural evolution
in our strategic approach.
Sustainability and impact vision: the
bank for the next generation
Protect
Manage our business in alignment with our
sustainable, long-term Group strategy and
evolving standards.
Grow
Embed an innovative sustainability and impact
offering across all our business divisions.
Attract
Be the bank of choice for clients and employees.
Protect
As part of our continued commitment
to protect our clients’ assets
and those of our firm, we
are focused on managing
our
business
by
aligning
to
the
sustainable
long-term
Group
strategy
and
evolving
standards.
We
maintain
a
strong
control and risk
framework, as
well as a
robust sustainability
data strategy,
to support
our risk management
processes,
regulatory requirements and product offerings.
›
Refer to “Environmental information” in this section for more information
about our decarbonization approach and efforts
›
Refer to “Managing sustainability and climate risks”
in this section for more information about our sustainability
and climate risk
management approach
Grow
We continue to expand
our sustainability and
impact offerings across
all business divisions
to meet our clients’
evolving
needs. For
example,
we
identify and
offer
innovative
sustainable
financing
and investment
solutions, with
the
aim
to
support our clients through the world’s transition to a low-carbon economy. To
facilitate this, we established a dedicated
Group Sustainability
and Impact
(GSI) Business
Development &
Client Forum
(the GSI
BDCF) under
the authority
of the
Group Executive Board (the GEB) Lead for Sustainability
and Impact, focused on client, product and impact approaches
.
›
Refer to “Governance” in this section
for more information about our GSI Business Development
& Client Forum (BDCF)
Attract
We aspire
to be
the bank
of choice
for clients
and employees
alike, maintaining
top quartile
sustainability ratings
and
positioning UBS as the go-to employer through our engagement
and education programs. In 2024, our MSCI
AA rating
was
reaffirmed
1
and we
increased
our S&P
Global Corporate
Sustainability Assessment
(CSA) score
to 72,
2
compared
with 69 in 2023.
›
Refer to “Social information”
in this section for more information about UBS’s employees and its philanthropic
activities
1
Source: MSCI ESG Ratings & Climate Search Tool, UBS
Group AG ESG Rating 2024
.
2
Source: S&P Global, UBS Group AG 2024 CSA Score as of March 2025,
out of a maximum of 100.
Annual Report 2024 |
Sustainability Statement | Strategy
26
Our key aspirations and progress
We work with a long-term focus on providing appropriate
returns to our stakeholders in a responsible manner.
We are
committed to
providing transparent
aspirations, goals
and targets
and reporting
on the
progress made
against
them. This table provides an overview, with more detailed
information provided throughout this section of this
report.
Ambitions
Topics
Our aspirations, goals or targets
Progress in 2024
- Protect
Climate
Lending sector decarbonization targets have been established
to
address our financed emissions by aligning specified sectors
to
decarbonization pathways.
1
Reduce emissions intensity associated with UBS in-scope lending
by 2030 from 2021 levels for:
–
Swiss residential real estate by 45%;
–
Swiss commercial real estate by 48%;
–
power generation by 60%;
–
iron and steel by 27%; and
–
cement by 24%.
Reduce absolute financed emissions associated with UBS in-scope
lending by 2030 from 2021 levels for:
–
fossil fuels by 70%.
Calculated progress against pathways for lending sector
decarbonization targets.
2
Changes in emissions intensity associated with UBS in-scope
lending
(end of 2023 vs 2021 baseline):
–
Swiss residential real estate reduced 11%;
–
Swiss commercial real estate reduced 9%;
–
power generation reduced 33%;
–
iron and steel reduced 20%; and
–
cement reduced 3%.
Changes in absolute financed emissions associated with UBS
in-scope
lending (end of 2023 vs 2021 baseline):
–
fossil fuels reduced 80%.
Reduce our scope 1 and 2 emissions to net zero by 2035 (90%
reduction of scope 1 and net scope 2 emissions by 2035
vs 2023
baseline, neutralizing the remaining 10% with high-quality carbon
removals).
Scope 1 and net scope 2 emissions reduced 35% vs 2023
baseline.
Reduce our absolute energy consumption by 35% by
2030 vs
2023 baseline.
Absolute energy consumption reduced 10% vs 2023
baseline.
Achieve 100% renewable electricity aligned to RE100 in markets
where feasible by 2026.
Achieved 99.8% renewable electricity aligned to RE100.
Environment
Paper: Use 100% recycled and Forest Stewardship Council (FSC)
paper for our operations by 2025.
Reached 49.9% share of recycled and FSC paper in our operations
in
2024.
Waste: Achieve 60% recycling ratio for our office waste by 2025.
Achieved 52.9% recycling ratio in 2024.
Water: Reduce water consumption by 5% by 2025 vs 2019
baseline.
Water consumption reduced 8% vs 2019 baseline.
- Grow
Social impact
and
philanthropy
Raise USD 1bn in donations to our client philanthropy foundations
and funds (cumulative for 2021–2025).
Achieved a UBS Optimus Foundation donation volume of USD 366m
in 2024 (2023: USD 328m), totaling USD 1.1bn since 2021,
thus
surpassing our goal (all figures include UBS matching contributions).
3
Reach 26.5 million beneficiaries by 2025 (cumulative for 2021–
2025).
Reached 7.4 million beneficiaries in 2024 (2023:
7 million)
4
and
25.9 million beneficiaries across our social impact activities
since
2021.
5
- Attract
Bank of choice
Maintain top quartile position in key ESG ratings by the end of 2026.
Achieved top quartile position vs direct peers as defined in
UBS
compensation report in:
–
MSCI: AA rating, “Leader” in industry group;
–
S&P Global Corporate Sustainability Assessment: Score of 72.
Constituent of the Dow Jones Sustainability Indices (DJSI);
–
CDP: A– rating. Included in the leadership band.
Cautionary note:
We have developed
methodologies that we
use to set
our climate-related targets
and identify climate-related
risks and that
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.
1
Our climate transition plan does not cover all our business activities. We may add ambitions for additional scope 3 activities over time and on a
best-efforts basis based on the availability of appropriate measurement
frameworks and data,
and the materiality
of the relevant
activity to UBS.
We will continue
to publicly disclose
our progress on
an annual basis
and, while we
continue to take
steps to align
our in-scope business
activities with the ambitions set out above, it is important to
note that progress toward our targets may not be linear. We regularly review our targets and
update our disclosures in line with new or enhanced
regulatory
developments, evolving best practices for the financial sector and climate science. Such reviews may lead us to revise previously agreed voluntary commitments,
metrics and methodologies. Metrics are based on gross
lending exposure consisting of total on-balance
sheet loans and advances to customers
and off-balance sheet guarantees and
irrevocable loan commitments.
2
Refer to “Environmental information” in this section
more information. The
inherent one-year time
lag between the
as-of date of
our lending exposure
and the as-of
date of emissions
can be explained
by two factors:
corporations disclose
their emissions in
annual
reporting only a few months after the end of a financial year, and specialized third-party data providers take between 12 and 18 months to collect disclosed data and make it available to data users. Consequently, the
baselines for our
decarbonization targets are
calculated based on
year-end 2021
lending exposure and
2020 emissions data.
Our 2023 emissions
actuals are based
on year-end
2023 lending exposure
and 2022
emissions data. For
asset financing (i.e.
real estate) there
is no time
lag, and exposure
and emissions actuals
refer to the
same year.
3
Figures provided for the
UBS Optimus Foundation
are based on
unaudited
management accounts and information available
as of January 2025. Audited
financial statements for UBS Optimus
Foundation entities are
produced and available per local
market regulatory guideline.
4
Figures
prior to 2024 exclude beneficiaries reached through Credit Suisse-led programs.
5
Some of the beneficiaries reached were due to activities funded through mandatory contributions required in India and South Africa
due to respective corporate social
responsibility laws. The
cumulative reported figure does not
represent unique beneficiaries. Where
the same individual was enrolled
in a program in the
previous year,
they are still
counted in the following year as they are considered to have received different levels of support over the period.
Annual Report 2024 |
Sustainability Statement | Environmental information
27
Environmental information
Our climate transition plan
We have drawn
up a climate
transition plan, including
our overarching climate approach,
along with specified
key policies
and principles, targets
and actions. This
transition plan
has been approved
by the Corporate
Culture and Responsibility
Committee (the CCRC) of the Board of Directors and is included in our annual objective-setting process for sustainability
and impact matters.
›
Refer to “Governance” in this section for
more information about our sustainability and climate
governance and our objective-
setting process
Our climate approach
Our climate approach is guided by our climate ambition and
its underlying key objectives.
Our climate ambition
We will support our clients in
the transition to a low-carbon world
and embed considerations of climate change risks
and
opportunities into our firm for the benefit of our stakeholders,
now and in the future.
Our key objectives
Supporting our clients’ low-carbon transition
–
Mobilizing capital toward an orderly transition to a low-carbon
economy.
–
Aligning our in-scope lending activities to the objectives
of the Paris Agreement.
–
Supporting the transition of our financing and investing
clients to low-carbon and climate-resilient business models
.
–
Embedding climate considerations into our financing, investment
and capital markets offering.
Reducing our climate impact
–
Minimizing our own operational footprint and utilizing resources
in an efficient and sustainable way.
–
Measuring and managing our travel footprint, including reducing
air-travel-related emissions.
–
Interacting with our suppliers on emissions reductions and
managing our supply chain responsibly.
Managing the risks of climate change to our business
–
Identifying, measuring, monitoring,
managing and reporting
sustainability and climate
risks (including nature-related
risks).
–
Applying our sustainability and climate risk policy framework.
–
Further integrating
sustainability and
climate risk
regulatory requirements
into financial risk
management and
stress-
test frameworks.
–
Ensuring that the sustainability and climate risk policy framework is integrated into our Group- and organization-wide
activities.
Our climate approach
is aligned to
our sustainability and
impact strategy, which
is based on three
overarching strategic
pillars: protect, grow and attract. In relation to our climate
approach, our strategic ambition manifests as:
–
Protect
our
business
by
managing
climate
risks
and
supporting
our
clients’
low-carbon
transition
to
protect
their
assets.
–
Grow
our business by embedding an innovative UBS climate
transition offering across all business divisions.
–
Attract
and be the bank
of choice for clients and
employees by being recognized
as a leader
in climate, and leading
by example in our own operations.
›
Refer to “Strategy” in this section for more information about
the sustainability and impact strategy
Annual Report 2024 |
Sustainability Statement | Environmental information
28
Our climate-related targets
By 2050, the
global economy
aims to transition
to net
zero. For
example, across
our own
operations (scopes
1 and 2),
UBS plans to achieve net zero by 2035, well ahead of 2050.
We have defined the following targets:
Scopes 1 and 2:
Reducing our scope 1 and 2 emissions to net zero by
2035.
1
Scope 3:
Addressing our financed emissions by aligning specified
sectors to decarbonization pathways.
2
In 2024, we have updated our climate targets to consider
the following:
–
alignment with upcoming regulatory requirements and market
standards;
–
a review of the combined organization, reflecting the current
state of planning within the firm; and
–
ongoing macro-developments in public policy and climate science projections
across the sectors in which we operate.
Our climate-related targets have been set based on
the methodologies, data and assumptions currently in use. Following
a review
of our
own operations
target for
scopes 1
and 2
for the
integrated organization,
we have
set a
new 1.5°C-
aligned scope
1 and
2 net-zero
target
to be
achieved
by 2035.
The target
reflects
our enlarged
corporate
real estate
portfolio following the
acquisition of
the Credit
Suisse Group
and considers
the latest
definition of a
“net-zero target”
in the Corporate Sustainability Reporting Directive (CSRD).
3
We
remain
committed
to
our
lending
sector
decarbonization
targets
to
address
our
financed
emissions
in
specified
sectors. All these targets
are 1.5°C-aligned except
for targets for Swiss
residential real estate
and Swiss commercial real
estate, which
are aligned
to a
below-2°C scenario.
4
In 2024,
we also
engaged EY
to perform
agreed upon
procedures
on
our
lending
sector
decarbonization
targets
to
assist
us
in
determining
whether
these
have
been
set
in
line
with
reference
scenarios
mentioned
and
informed
by
certain
requirements
taken
from
pertinent
global
standards
and
initiatives.
Our
Asset
Management
business
division
is
committed
to
supporting
our
clients
in
achieving
their
climate-related
investment
goals.
In
the
UBS
Group
Sustainability
Report
2023,
we
referred
to
the
target
set
by
Asset
Management
aiming, by
2030, to
align 20%
of UBS
AG Asset
Management’s total
assets under
management (AuM)
with net
zero.
Given
the
integration
taking
place
within
Asset
Management,
we
are
reviewing
the
legacy
target
set
prior
to
the
acquisition
of the
Credit
Suisse
Group,
taking
into
account
all
AuM
of the
combined
businesses.
Therefore,
we
have
withdrawn the target. We remain committed to supporting the Paris Agreement climate goals in line with global efforts.
We recorded USD 64.4bn of
total assets as having a net-zero
ambition at the end of
2024, compared with USD 35.5bn
at the end of 2023.
We
regularly
review
our
targets
and
update
our
disclosures
in
line
with
new
or
enhanced
regulatory
developments,
evolving best practices for the
financial sector and climate science.
Such reviews may lead us to
revise previously agreed
voluntary commitments, metrics and methodologies.
Our
climate
transition
plan
does
not
cover
all
our
business
activities.
We
may
add
ambitions
for
additional
scope
3
activities
over time
and on
a best-efforts
basis based
on the
availability
of appropriate
measurement frameworks
and
data, and the materiality of
the relevant activity to UBS.
We will continue to publicly
disclose our progress on an
annual
basis and, while we continue to take steps to align our in-scope business activities with the ambitions set out above, it is
important to note that progress toward our targets may
not be linear.
Our priority is to support our clients in the transition to a low-carbon world, including their transition-financing needs. In
the
area
of client
investments,
our ability
to
meet
our ambitions
depends
on
our obligations
to our
clients,
including
fiduciary duties as an investment manager and
on the terms of the mandates
agreed with clients. We continue to embed
sustainability
and
climate
considerations
into
our
operating
model,
leading
to
regular
adjustment
of
evaluation
and
decision-making frameworks, governance structures, control and
monitoring processes and underlying systems.
Our climate-related
ambitions and
targets
have a
critical dependency
on the
overall
progress
made by
all
sectors and
countries. Collaboration
across the
private and
public sectors
is required.
The decarbonization
of the
global economy,
emissions reductions by clients
and the realization of
our own targets and
ambitions all depend on
various factors outside
our
direct
influence.
Clear
guidance
from
governments
through
thoughtful
regulations,
policies
and
incentives,
the
development and scaling of key technologies and broader
changes in the behavior of society are needed.
1
Refer to the “Reducing our own climate impact”
section of this report for details about our scope 1 and 2 net-zero target.
2
Refer to the ”Supporting our financing clients’ low-carbon transition” section of this report for details about our lending sector decarbonization targets.
3
Definition of a net-zero target by
the CSRD: Setting a net-zero target at
the level of an undertaking aligned with meeting
societal climate goals means: (i) achieving a scale
of value chain emissions reductions consistent
with the abatement required to reach global net zero in
1.5°C pathways; and (ii) neutralizing the impact of any residual emissions (after
approximately 90–95% of GHG emission reduction with the possibility of justified
sectoral variations in line with a recognized sectoral pathway) by permanently removing an equivalent
volume of CO
2
.
4
For Swiss real estate mortgage lending (commercial
and residential real estate), our targets are using
the percentage decarbonization rate implied by
the Energy Perspectives 2050+ ZERO Basis
scenario (below-2°C
scenario) as a minimum rate to
be followed. This scenario
is a representative, country-specific
pathway, reflective of
the government’s climate strategy.
It also informs Switzerland’s
decarbonization ambitions for real
estate as set out in the Swiss Climate and Innovation Act.
Annual Report 2024 |
Sustainability Statement | Environmental information
29
Supporting our clients’ low-carbon transition
It is our priority to support our clients in the transition to a low-carbon world. To support this aim, we have defined a set
of targets and actions related to our
financing and investing activities,
which are outlined below (and reflect UBS Group).
Supporting our financing clients’ low-carbon transition
Our lending sector decarbonization targets
This
section
outlines
the
methodologies
and
processes
used
to
calculate
the
climate-related
lending
metrics
and
the
approach taken to define the UBS Group
lending sector decarbonization targets.
Our
approach
to
target-setting
is
based
on
industry
guidance
and
our
calculation
methodology
is
based
on
global
standards
such
as
the
GHG
Protocol
Corporate
Accounting
and
Reporting
Standard
and
the
Partnership
for
Carbon
Accounting Financials (the PCAF).
Target scope (1)
Lending sector decarbonization
targets for 2030
have been established
for Swiss real
estate mortgages (residential
and
commercial real
estate) and
for financing
of in-scope
activities in
the fossil
fuels (oil,
gas and
coal), power
generation,
iron and steel and cement corporate sectors.
The sectors for which
decarbonization targets were
set account for
7.2 million metric
tons of CO
2
e emissions financed,
or 73% of the total financed emissions
of 9.9 million metric tons for sectors
where data and methodologies are available
to estimate emissions. We expect the coverage to change
over time as the availability and quality of data improve.
During the
target-setting process,
we prioritized sectors
that have
the highest
carbon impact.
These include
the materiality
of sectors in terms of
financial exposure and the
availability of data and applicable
methodologies to estimate
baselines
and
develop
pathways.
We
performed
additional
analyses
to
establish
transparency
around
the
contribution
of
each
sector in our
portfolio to the
total. We perform
an annual assessment
of sectors and
exposures not covered
by targets,
considering materiality, the availability of data and methodologies,
market expectations and business strategy.
For real estate,
we considered owner-occupied
properties, properties rented
out on a non-commercial
scale, rented-out
properties in multi-family homes, any other income-producing
real estate and own-use commercial real estate.
For each corporate
sector, we considered subsectors
or parts of the
value chain that hold the
bulk of the impact
on the
climate system and where the decarbonization efforts must be
concentrated.
Baseline and emissions (2)
Based on qualitative
and quantitative criteria,
such as alignment
and feasibility (following
industry best practices),
2021
was chosen as a baseline year for our decarbonization targets
across all lending sectors.
For all targets except iron and
steel and cement, for which non-CO
2
GHGs are considered not material,
the emissions in
scope are the seven
gases mandated under the
Kyoto Protocol. For
ease of accounting, these gases
are normally reported
by data providers
and clients as
carbon dioxide equivalents
(CO
2
e). Our targets
are gross targets,
meaning that they
do
not include GHG removals, carbon credits or avoided emissions
as a means of achieving the targets.
Emissions financed from lending activities fall under scope 3, category 15, downstream emissions as defined in the GHG
Protocol Corporate Accounting
and Reporting Standard.
Financed emissions reported
under scope
3, category 15,
include
apportioned scope 1
and 2 emissions
of the counterparties
or assets being
financed. We included
scope 3 emissions
in
our assessment
of financed
emissions for
the fossil fuels
sector.
1
To estimate
the emissions
from our clients,
we rely
on
data available in their
own disclosures, data
from specialized third-party
providers and internal
data. Current limitations
on the availability of
emissions data at
company or asset
level required us to
include estimations in the
calculations. For
example, we applied a sector-level proxy where company-
or asset-level data is not available.
As in previous reports, related lending metrics
are not shown for the current
reporting year due to the inherent time
lag
in
the
availability
of
emissions
data
of
our
borrowers.
This
one-year
time
lag
between
the
as
of
date
of
our
lending
exposure and
the as
of date
of emissions
can be
explained by
two factors:
corporate clients
disclose their
emissions in
annual
reporting
only
a
few
months
after
the
end
of
a
financial
year
and
specialized
third-party
data
providers
take
between 12 and 18 months to collect disclosed data and make
it available to data users.
Scenario selection (3)
For Swiss
real estate mortgage
lending (commercial and
residential real estate), our
2030 targets are
using the percentage
decarbonization rate implied by the
Energy Perspectives 2050+ ZERO Basis
scenario (below-2°C scenario) as a
minimum
rate to
be followed.
This scenario
is a
representative,
country-specific pathway,
reflective
of the
government’s climate
strategy.
It
also
informs
Switzerland’s
decarbonization
ambitions
for
real
estate
as
set
out
in
the
Swiss
Climate
and
Innovation Act.
1
Scope 3 emissions were also included in our
assessment of financed emissions for the automotive sector, which is not a target
sector. Automotive sector emissions are reported as part of our overall financed emissions.
Annual Report 2024 |
Sustainability Statement | Environmental information
30
For
the
fossil
fuels
(oil,
gas,
and
coal),
power
generation,
iron
and
steel,
and
cement
corporate
sectors,
we
use
the
percentage decarbonization rate implied
by the scenario
– IEA NZE
by 2050 (IEA’s
World Energy Outlook of
October 2023
update)
1
– as a
minimum rate to
be followed. This
scenario is one
of the most
recent and widely
accepted models that
achieves
a
temperature
increase
of
1.5°C
by
the
end
of
the
century
(1.5°C-aligned
scenario).
Over
time,
we
aim
to
augment our sector pathways as we gain greater
clarity on the validity of key technological and
regulatory uncertainties
identified and assumed within the IEA NZE scenario (e.g. production volumes, biofuels or carbon capture utilizations and
storage). Until that
point, the possibility
of overshoot is
factored into certain
sector pathways due
to the heavy
reliance
on external factors beyond our steering capabilities.
Target-setting (4)
For
the
fossil
fuels
sector,
we
defined
an
absolute
emissions
reduction
target
and
applied
the
Absolute
Contraction
Approach. For
all other
sectors within
scope, we
have defined
physical emissions
intensity targets,
applying the
Sector
Decarbonization Approach (SDA). The SDA assumes
global convergence of key sector’s
emissions intensities by 2050 and
we set our 2030 decarbonization targets to be in line with
this assumption.
Generally,
we
believe
that
most
sectors
are
best
steered
by
using
physical
emissions
intensity.
The
physical
emissions
intensity is a
metric that normalizes
emissions (e.g.
by a company’s
output). Through
intensity metrics, we
can monitor
whether
our corporate
clients, or
real
estate
assets
we are
financing,
are
becoming
increasingly
efficient.
In addition,
emissions intensity measures tend to be less volatile as these
are less dependent on the amount of lending business that
UBS undertakes in different years.
Establishing absolute
emissions targets
could impose
constraints
on our
ability to
lend to
clients,
including those
with
lower carbon
intensity. This
might restrict
our ability
to support clients
as they
transition to a
low-carbon economy.
For
transparency, we
also disclose
the total
value of
absolute emissions
for the
sectors covered
by the
trajectories without
setting a target for absolute emissions other than for the fossil fuel
sector.
Target governance (5)
Our 2030 lending sector decarbonization targets
were set at UBS Group level,
and were approved and are
continued to
be overseen
by the
CCRC. They
are
managed by
the business
divisions in
collaboration with
Group
Sustainability
and
Impact (GSI) and
the Group functions under the
leadership of the Group
Executive Board (the GEB) Lead for
Sustainability
and Impact.
We will continue to publicly
disclose our progress on
an annual basis, and
we aim, at a minimum,
to review our targets
every five years and, from 2030
onwards, to update the base year and
target values after every five-year period to ensure
consistency
with the
most
recent
climate
science
and best
practices.
It is
important
to note
that
progress toward
our
targets may not be linear and year-on-year volatility is expected due to changes in the portfolios’ composition
over time.
All related
metrics shown
in the
tables below,
including financed
emissions, are
reported at
UBS Group level
to ensure
consistency. There is
an immaterial difference in
in-scope exposures and derived
metrics between UBS AG
and UBS Group
due to purchase price allocation adjustments recorded in UBS Group as a result of the acquisition of Credit Suisse Group
AG in
compliance with
IFRS 3,
Business Combinations.
A reconciliation
table for
both entities
is provided
below. As
of
end of
2022, Credit
Suisse AG
was not
part of
UBS AG,
therefore 2022
comparative
values are
not included
in these
tables.
1
For fossil fuels, (oil, gas and coal), we selected the scenario IEA NZE by 2050 as a reference to base our
2030 target. Our 2030 target is more ambitious than the reduction implied by this scenario.
Annual Report 2024 |
Sustainability Statement | Environmental information
31
Overview of our 2030 lending sector decarbonization targets and progress (UBS Group)
For the year ended 31.12.23
Gross lending
exposure
Targets
Progress
8
Sectors
Full value
chain
(USD bn)
1
Covered
with
targets
(USD bn)
1
Target scope
GHG
emissions
scope
Scenario
Target
value
2021–
2030
target
Unit
2021
baseline
2023
actuals
%
change
Residential real estate
3
384.7
242.4
Region
Switzerland
1,2
5
Energy Perspectives 2050+
ZERO basis (below 2°C)
21.1
(45%)
kg CO
2
e / m
2
ERA
2
38.7
34.4
(11%)
Commercial real estate
3
102.1
Region
Switzerland
1,2
5
Energy Perspectives 2050+
ZERO basis (below 2°C)
16.2
(48%)
kg CO
2
e / m
2
ERA
2
31.3
28.5
(9%)
Fossil fuels (coal, oil and
gas)
4
10.6
2.8
B.05, B.06,
C.19
6
1,2,3
IEA NZE 2050 - WEO 2023
(1.5°C)
7
19.4
(70%)
million metric t CO
2
e
64.7
12.9
(80%)
Power generation
5.0
3.9
D.35.1.1,
D.35.1.3
6
1
IEA NZE 2050 - WEO 2023
(1.5°C)
136
(60%)
kg CO
2
e / MWh
339
227
(33%)
Iron and steel
0.7
0.5
C.24.1
6
1,2
IEA NZE 2050 - WEO 2023
(1.5°C)
1.28
(27%)
metric t CO
2
/ metric t
steel
1.75
1.41
(20%)
Cement
1.1
1.0
C.23.5.1
6
1,2
IEA NZE 2050 - WEO 2023
(1.5°C)
0.48
(24%)
metric t CO
2
/ metric t
cementitious
0.64
0.62
(3%)
1
Full value chain includes all activities within each sector. Refer to target scope for details on sector coverage. Exposures are shown on a gross basis; gross lending exposure includes total on-balance sheet loans and
advances to customers and off-balance sheet guarantees, and irrevocable loan commitments (within the scope of expected credit loss)
and is based on consolidated IFRS numbers (inclusive of purchase price allocation
adjustments recorded in UBS Group AG as a result of the acquisition of Credit Suisse Group AG in compliance with IFRS 3, Business Combinations).
2
ERA: Energy Reference Area.
3
Residential real estate includes
owner-occupied properties and
properties rented out on
a non-commercial scale. Commercial
real estate includes rented-out
properties in multi-family homes,
any other income-producing real estate,
and own-use
commercial real estate. The reported figures reflect the exposure linked to loans that are secured by real estate collateral
.
4
For fossil fuels, a significant share of our gross lending exposure not covered by this target
is commodity trade financing for which guidelines and methodologies have yet to be developed.
5
Residential real estate emissions scope covers owners' energy consumption only, Commercial real estate emissions
scope covers owners' or tenants' energy consumption
only.
6
For corporate sectors, NACE
codes are referenced, the following parts of the value
chain are included in the targets scope: fossil
fuels: coal extraction,
oil and
gas upstream,
refining and
integrated companies;
power generation:
power generation
and integrated
electric utility
companies; iron
and steel:
production of
iron and
steel, hot
rolling and
coking coal
manufacturing; cement: production of cement and clinker.
7
For fossil fuels (oil, gas and coal), we selected the scenario IEA NZE by 2050 as a reference to base our 2030 target. Our 2030 target is more ambitious
than the percentage reduction implied by this scenario.
8
Metrics are calculated based on gross lending exposures.
2030 lending sector decarbonization targets and progress (UBS Group - UBS AG reconciliation)
1
For the year ended 31.12.23
UBS Group
UBS AG
Sectors with target
2021 baseline
2023 actuals
Reduction to date
2023 actuals
Swiss residential real estate
38.7
34.4
(11%)
34.5
Swiss commercial real estate
31.3
28.5
(9%)
28.7
Fossil fuels (coal, oil and gas)
64.7
12.9
(80%)
13.1
Power generation
339
227
(33%)
228
Iron and steel
1.75
1.41
(20%)
1.43
Cement
0.64
0.62
(3%)
0.62
1
Metrics are calculated based on gross exposures.
Financed emissions covered by lending sector decarbonization targets (UBS Group)
For the year ended 31.12.23
Gross lending
exposure
(USD bn)
1
Outstanding
exposure
(USD bn)
2
Financed
emissions,
scopes 1 and 2
(mt CO
2
e)
3
Financed
emissions,
scope 3
(mt CO
2
e)
3
PCAF score,
scopes 1 and
2
4
PCAF score,
scope 3
4
Economic
intensity
(mt CO
2
e /
USD bn)
3
Exposure covered by target
Swiss residential real estate
5
242.4
240.6
1.2
4.1
0.01
Swiss commercial real estate
5
102.1
101.4
0.8
4.1
0.01
Fossil fuels (coal, oil and gas)
2.8
0.8
0.2
3.3
1.3
1.5
4.60
Power generation
3.9
0.9
1.1
2.1
1.15
Iron and steel
0.5
0.2
0.2
1.7
0.90
Cement
1.0
0.1
0.4
4.1
3.74
Exposure not covered by target
Other non-financial corporates and real estate mortgages
142.0
81.1
2.5
0.2
4.8
5.0
0.03
Estimated total non-financial corporates and real estate mortgages
6
494.7
425.1
6.4
3.5
Financial services firms, private individuals and other
284.7
216.4
Total exposure
779.4
641.5
1
Gross lending exposure includes total on-balance sheet loans and advances to customers and off-balance sheet guarantees, and irrevocable loan commitments (within the scope of expected credit loss) and is based
on consolidated IFRS numbers (inclusive of purchase price allocation adjustments recorded in UBS
Group AG as a result of the acquisition of Credit Suisse Group AG in compliance with
IFRS 3, Business Combinations).
2
Outstanding exposure includes total on-balance sheet loans
and advances to customers (within the scope
of expected credit loss) and is based on consolidated
IFRS numbers.
3
Based on outstanding exposure.
4
PCAF scores shown represent weighted average based on outstanding exposures.
5
Residential real estate includes owner-occupied properties
and properties rented out on a non-commercial scale. Commercial
real estate includes rented-out properties in multi-family homes, any other income-producing real estate, and own-use commercial real estate. The reported figures reflect the exposure linked to loans that are secured
by real estate collateral
.
6
Based on outstanding exposure which
includes total loans and advances to customers
and guarantees as well as irrevocable
loan commitments. For consistency and comparability purposes,
shipping related exposures as reported in 2023 are now aggregated in this line.
Annual Report 2024 |
Sustainability Statement | Environmental information
32
The sectors
for which
decarbonization targets
have been
set represent
352.7bn,
or 45%,
of the
USD 779.4bn
in total
gross
lending
exposure
for
2023,
and
71%
of
the
USD
494.7bn
in
gross
lending
exposure
for
which
data
and
methodologies are available
to estimate emissions.
These sectors
account for 7.2
million metric tons
of CO
2
e emissions
financed, or 73% of the total financed
emissions of 9.9 million metric tons. We expect the
coverage to change over time
as the availability and quality of data improve.
Decarbonization levers and key actions underpinning our lending
sector decarbonization targets
To
underpin our lending sector decarbonization targets, we assessed the impact of two decarbonization levers. Through
lever 1,
we assess
the effects
of our
clients’ disclosed
decarbonization
commitments
on our
future
expected portfolio
intensities. Lever 2 focuses on managing our portfolio to achieve
the remaining required intensity
reductions.
In
addition,
we
identified
key
actions
relevant
to
both
levers,
outlining
how
we
support
our
clients
in
realizing
their
decarbonization
commitments
and how
we manage
our portfolio
toward achieving
our targets:
i) providing
products
and services;
ii) engaging
with clients;
and iii)
monitoring progress
against targets
through our decarbonization
control
framework.
Lever 1: Clients’ disclosed decarbonization commitments
To
understand
the
current
decarbonization
ambitions
of
our
clients,
we
conducted
a
review
of
our
clients’
currently
disclosed decarbonization commitments and transition plans. On this basis, we assessed the future potential aggregated
reduction
of our
portfolio
intensities for
the power
generation,
iron and
steel and
cement sectors,
assuming that
our
clients realize their decarbonization commitments and transition plans. Through
actions 1 and 2 outlined below, we aim
to support our clients in realizing their
decarbonization commitments.
We
recognize
that
our
clients’
realization
of
their
emission
reductions
has
dependencies
on
various
factors
and
that
financial
institutions
have
limited
direct
influence
over
clients’
transition
abilities
or
the
speed
at
which
the
transition
happens. We constantly track our clients’ progress toward their disclosed
commitments and assess the influence of them
meeting their commitments on our own trajectories.
Lever 2: Portfolio management
To work toward the remaining required reduction of
our portfolio intensities
to realize our lending
sector decarbonization
targets,
we
aim
to
manage
our
portfolio.
This
can
be
done
at
the
business
selection
stage,
which
is in
line
with
our
sustainability risk
process.
It may
trigger enhanced
due diligence
for transactions
in carbon-intensive
sectors that
have
higher
climate-related
impacts
and
risks,
as
well
as
trigger
the
pre-deal
assessment
review
of
deals
against
our
set
decarbonization
thresholds.
It can
also be
done through
the exit
from
or maturity
of our
Non-core
and Legacy
loans,
which contribute
to the
adjustment of
our lending
exposure and
associated carbon
intensity.
Through actions
1 and
2
outlined below, we aim
to support our clients’ climate transition,
while action 3 allows us to track our performance
and
manage progress toward our
targets.
Although
we
continue
to
take
steps
to
align
our
in-scope
business
activities
with
our
decarbonization
targets,
it
is
important to note
that progress toward
our targets may
not be linear.
Our priority is
to support our
clients in the
transition
to
a
low-carbon
world,
and
their
transition-financing
needs.
Collaboration
across
the
private
and
public
sectors
is
required.
The
decarbonization
of
the
global
economy,
emission
reductions
by
clients
and
the
realization
of
our
own
targets and ambitions all depend
on various factors outside our
direct influence. Clear guidance by governments
through
thoughtful regulations, policies and incentives, the development and scaling of key technologies and broader changes in
the behavior of our society are needed.
›
Refer to "Non-core and Legacy" in the "Our businesses"
section of this report for more information
Action 1: Providing products and services
We
offer
sustainable
and
sustainability-linked
financial
advice
and
solutions
(advisory,
lending,
basic
banking
and
transition financing
solutions) to
support our
clients’ climate
transition. These
solutions can
be on-balance
sheet
(e.g.
green or sustainable loans and mortgages) or
off-balance sheet (e.g. access to debt
and equity capital markets). They can
also include transaction structuring.
For example, in Personal & Corporate Banking, we offer
sustainability-linked loans (SLLs) to incentivize the borrowers
to
achieve their sustainability performance targets. Our SLL
offering is open to eligible corporate clients from all sectors
that wish to reflect their sustainability ambitions in their funding
strategy and to benefit from meeting agreed
sustainability performance targets. The SLLs have specific
sustainability-related key performance indicators that are
agreed with each client.
We continue to develop and refine our sustainable finance
solutions and approaches on an ongoing basis.
Action 2: Engaging with clients
In 2024, to support
our review of
our clients’ disclosed decarbonization
commitments and transition
plans (lever 1), we
developed the
Company Transition Assessment Scorecard (CTAS). The CTAS was
designed to
support a range
of purposes
in the future, including
the support of our clients’
climate transition through
engagement. By understanding our
clients
better,
we aim
to work
alongside them
to assist
with their
climate transition
efforts. This
can include
encouraging the
disclosure of current emissions, setting
future decarbonization targets in line
with Paris Agreement-aligned pathways and
developing credible transition plans.
›
Refer to “Supporting our climate approach: key enabling
actions” in this section for more information about
the CTAS
Annual Report 2024 |
Sustainability Statement | Environmental information
33
Action 3: Monitoring progress against targets through our
decarbonization control framework
We
implemented
a
decarbonization
control
framework
to
track
our
performance
and
manage
progress
toward
our
lending sector decarbonization targets. This framework has
been approved at GEB level and
has been integrated into our
sustainability and climate risk policy framework.
For in-scope
sectors,
the
performance
and associated
changes
in
the
lending
portfolio
are
discussed
during
quarterly
performance reviews with business division representatives
(Global Wealth Management, Personal & Corporate
Banking
and the Investment
Bank) and our
sustainability and climate
risk unit. This
includes an analysis
of trends and
significant
changes in exposures,
emissions or criteria that
are deemed to influence
the target metrics. Possible
measures to be taken
by the business divisions are also discussed.
For
in-scope
corporate
sectors
for
which
decarbonization
targets
have
been
set,
we
have
established
a
pre-deal
assessment
process
to
review
the
impact
of
relevant
transactions
that
are
within
the
scope
of
our
lending
sector
decarbonization targets.
For each
in-scope sector,
risk tolerance
thresholds have
been defined
at business
division and
Group levels. An internal tool enables the business divisions to evaluate the potential impact of a new
transaction on the
portfolio. An escalation process has
been put in place
should a transaction exceed
these thresholds. Transactions are then
also reviewed by
the business division
representatives and
can be further
escalated up to
GEB level if
required. The
risk
tolerance thresholds are
defined annually and the
utilization of the
agreed thresholds is monitored
on a quarterly
basis.
Relevant staff in the business divisions have been trained on these
requirements.
Performance against targets
and outlook
For the
in-scope lending
sectors for
which decarbonization
targets
have been
set, the
following sections
describe, for
each sector:
–
the scope of the target and relevance for our business divisions;
–
the progress
against the
sector
target
and the
indicative
trend
line,
including the
main
drivers for
the reduction
or
increase of absolute emissions / emissions intensity;
–
the impact of the
decarbonization levers and a description
of key actions taken,
where relevant (note that not
all levers
apply to all target sectors); and
–
a description of the key dependencies.
Our lending
sector decarbonization
targets have
a critical
dependency on
the overall
progress made
by all
sectors and
countries.
Swiss residential real estate
The
scope
of
the
decarbonization
pathway
for
residential
real
estate
lending
is
limited
to
our
financing
activity
in
Switzerland across Personal & Corporate Banking
and Global Wealth Management.
The required 45% reduction
to realize our 2030
target is slightly
more ambitious than
the decarbonization rate
implied
by the Swiss government’s Energy
Perspectives 2050+ ZERO Basis (EP
2050+) scenario for residential
buildings, which is
44%.
For
the
target
scope,
this
scenario
is
a
representative,
country-specific
pathway,
reflective
of
the
government’s
climate strategy. The
EP 2050+ also informs
Switzerland’s decarbonization ambitions for real
estate as set
out in the
Swiss
Climate and Innovation Act.
As
at
the
end
of
2023,
our
estimated
emissions
intensity
for
the
portfolio
had
decreased
by
11%
against
the
2021
baseline, with
an emissions
intensity of
34.4
kg CO
2
e /
m
2
ERA (Energy
Reference
Area). The
reduction
was
primarily
driven by an increased share
of financed properties with
non-fossil-fuel heating. Our estimated
emission intensity is 1%
below the 2023 level of our indicative trend line to 2030
(34.8 kg CO
2
e / m
2
ERA).
To further decarbonize our real estate
portfolio in alignment with the Swiss
government’s decarbonization ambitions, we
remain dependent
on technical
advances and
concerted policy
action, for
example, by
incentivizing improved
building
efficiency and the use
of non-fossil-fuel heating systems. We
will continue to work
with the government and
our industry
peers to align on the required actions.
We remain committed to
doing our part and
supporting our clients in reducing
the emissions intensity of their
properties.
This includes raising the awareness of our existing and prospective clients regarding the climate
impact of real estate and
helping our existing
clients decarbonize their properties
through renovations. For example,
we provide access
to an online
renovation journey and calculator
for owner-occupied real
estate, enabling our clients
to work out expected
renovation
costs and
timelines, the
CO
2
e emissions
footprint and
the energy
consumption levels
before and
after renovation.
For
renovations or acquisitions of energy-efficient properties, we offer preferential financial conditions to clients through our
UBS
Mortgage
Green,
UBS
Mortgage
Energy
and
UBS
Mortgage
Renovation
products.
In
2024,
our
partner
Norm
Technologies launched an
offering for our
new and existing
mortgage clients to
carry out a
tailored, digital energy
analysis
for them to gain an improved understanding of the climate
impact of their properties.
Swiss commercial real estate
The
scope
of
the
decarbonization
pathway
for
commercial
real
estate
lending
is
limited
to
our
financing
activity
in
Switzerland across Personal & Corporate Banking
and Global Wealth Management.
The required
48% reduction
required to
realize our
2030 target
is in
line with
the decarbonization
rate implied
by the
Swiss government’s EP 2050+ scenario for residential buildings
and services, which is also 48%.
Annual Report 2024 |
Sustainability Statement | Environmental information
34
As at
the end of
2023, our
estimated emissions intensity
for the
portfolio had decreased
by 9% against
the 2021 baseline,
with an emission
intensity of 28.5
kg CO
2
e / m
2
ERA. The
reduction was primarily
driven by an
increase in the
share of
financed properties
with a
good-quality building
envelope that
reduces
heat loss.
Our estimated
emissions intensity
is
2% above the 2023 level of our indicative trend line to 2030 (28.0
kg CO
2
e / m
2
ERA).
To further decarbonize our real estate
portfolio in alignment with the Swiss
government’s decarbonization ambitions, we
remain dependent
on technical
advances and
concerted policy
action, for
example, by
incentivizing improved
building
efficiency and the use
of non-fossil-fuel heating systems. We
will continue to work
with the government and
our industry
peers to align on the required actions.
We remain committed to
doing our part and
supporting our clients in reducing
the emissions intensity of their
properties.
This includes
helping our
existing clients
to decarbonize
through renovations
and providing
the respective
financing. In
2024, we launched the UBS Loan Green,
which is designed for clients planning new low-energy constructions or
energy-
efficient
renovations,
or
purchasing
energy-efficient
properties.
The
product
provides
tailored
financing
and
comprehensive expert advice and accepts various building
certifications.
Furthermore, in 2024, we teamed up with Wincasa, a leading Swiss property
services provider, to launch a new advisory
solution, UBS Renovation Services, for investment property owners planning energy upgrades. The service offers tailored
analysis
of
the
renovation
potential,
a
detailed
feasibility
study
and
coordination
of
construction
planning
and
management through a network of specialized real estate
companies.
Fossil fuels (oil, gas and coal)
Our fossil
fuel portfolio
is concentrated
in a
small number
of corporate
clients in
the Investment
Bank and
Personal &
Corporate Banking with limited exposure from
Global Wealth Management.
As at the
end of 2023,
our estimated total
financed emissions for the
fossil fuels portfolio have
decreased by 80%
against
the 2021
baseline,
accounting to
12.9 million
metric tons
of CO
2
e. From
2021 to
2022, there
was a
29% reduction,
primarily driven by an overall
reduction of the financed
portfolio and a significant
decrease in exposure to coal.
In 2023
our portfolio had a number of loans that were classified as non-core, and as of 31 December
2023, these loans were no
longer
held in
line
with the
strategy
of the
Group, primarily
driving
the
remaining
reduction.
Our estimated
financed
emissions are 76% below the 2023 level of our indicative
trend line to 2030 (54.6 million metric tons of CO
2
e).
With the remaining concentrated portfolio, we
would not expect the same
level of emission reductions over
the next few
years. Achieving our target requires collaboration
across the private and public
sectors due to the reliance on fossil
fuels
for energy security and because it is the most affordable
source of energy in many countries.
Power generation
Our power
generation portfolio mainly
consists of
corporate clients in
the Investment Bank,
Personal &
Corporate Banking
and Global Wealth Management.
As
at
the
end
of
2023,
our
estimated
emissions
intensity
for
the
portfolio
had
decreased
by
33%
against
the
2021
baseline, with an
emissions intensity of
227 kg CO
2
e / MWh.
The reduction was primarily
driven by a
decrease in exposure
to clients with
relatively high
carbon intensity, including
loans that were
classified as non-core.
In Personal &
Corporate
Banking,
our clients
in the
power
generation
sector,
who
have
a
significant
share
of renewable
energy
production in
Switzerland,
further
contributed
to
our
emissions
intensity
being
below
the
International
Energy
Agency
(the
IEA)
benchmark. Our estimated
emission intensity is
23% below
the 2023 level
of our indicative
trend line to
2030 (294 kg
CO
2
e / MWh).
We expect a
further decrease in
intensity based on
our assessment of
our clients’
disclosed decarbonization commitments,
assuming that our clients realize those decarbonization commitments.
We aim to manage our portfolio by engaging with our clients to support them in adapting their energy mix
and increase
our own exposure
to sources
of energy
with lower
emissions. We
expect the
reduction of
loans that
were classified
as
non-core to further contribute to a decrease in the portfolio intensity.
Reaching our
target requires
collaboration across
the private
and public
sectors. The
sector remains
dependent on
the
right policies,
incentives and frameworks
to be in
place. Recent
data indicates that
investment of around
USD 2trn per
annum is going toward clean energy,
which represents two thirds of the
global energy investment. This increase is
mainly
driven by emissions reduction targets and the need to guarantee
energy security.
1
Iron and steel
Our iron and steel portfolio
is concentrated in a
small number of clients in
the Investment Bank and Personal
& Corporate
Banking with limited exposure from
Global Wealth Management.
As
at
the
end
of
2023,
our
estimated
emissions
intensity
for
the
portfolio
had
decreased
by
20%
against
the
2021
baseline, with an emissions intensity of
1.41 metric tons of CO
2
/ metric ton of steel.
The reduction was primarily driven
by existing clients reducing their carbon intensities, a decrease in
loans that were classified as non-core, and an increased
share of exposure to
secondary steel production clients
with lower intensities. Our
estimated emissions intensity
is 14%
below the 2023 level of our indicative trend line to 2030
(1.64 CO
2
/ metric ton of steel).
1
https://www.iea.org/reports/world-energy-investment-2024/
Annual Report 2024 |
Sustainability Statement | Environmental information
35
We expect a
further decrease in
intensity based on
our assessment of
our clients’
disclosed decarbonization commitments,
assuming that our clients realize those decarbonization commitments.
We will continue
to finance our
clients’ transition to
support shifting production
to reduce the
sector’s reliance on
coal
while increasing scrap production and the use of direct reduction and
electric arc furnaces.
Reaching our
target requires
collaboration across
the private
and public
sectors. The
sector remains
dependent on
the
commercialization
and scaling
up of
low-carbon
steelmaking
technologies,
which requires
research and
development,
and robust policy and market incentives.
Cement
Our cement portfolio consists of corporate clients in Personal
& Corporate Banking and the Investment Bank.
As at
the end of
2023, our
estimated emissions intensity
for the
portfolio had decreased
by 3% against
the 2021 baseline,
with an emissions
intensity of 0.62
metric tons
of CO
2
/ metric ton
of cementitious. The
reduction was primarily
driven
by a
decrease in
intensity by
our existing
clients. Our
estimated emissions
intensity is
2% above
the 2023
level of
our
indicative trend line to 2030 (0.60 metric tons of CO
2
/ metric ton of cementitious).
We believe our
main clients
in the
cement industry
are best in
class in
terms of
ESG (environmental, social
and governance)
disclosures
and
externally
verified
emissions
reduction
targets,
some
of
which
include
interim
2030
targets.
We
will
continue
to
finance
our
clients’
transition,
potentially
increasing
our
exposure
with
appropriate
sustainability-linked
product offerings or project ring-fencing, and advising on various transactions, such as the acquisition of assets, disposal
of certain business lines, equity raises and share
buybacks.
Reaching our
target requires
collaboration across
the private
and public
sectors. The
sector remains
dependent on
the
right policies and
incentive frameworks
being in place.
Specifically in
the cement
sector,
production emissions
intensity
has remained flat in recent years, highlighting
the need for technological disruption.
Our approach to measuring facilitated emissions from our capital
markets business
Our role in capital market transactions helps our clients to access capital for their
businesses. We facilitate capital-raising
by clients, and we believe it is important
to monitor the related emissions from
these transactions. The Investment
Bank
offers clients access to the primary and secondary
public capital markets and private capital transactions.
Facilitated
emissions
differ
from
financed
emissions
in
two
respects:
firstly,
they
are
off-balance
sheet
(representing
services rather
than financing)
and, secondly,
our role
is completed
within a
short time
frame rather
than a
long-term
loan-related
exposure.
As
a
result,
and
in
line
with
industry
guidance,
we
distinguish
between
on-balance
sheet
“financed” and off-balance sheet “facilitated” emissions.
By disclosing
our facilitated
emissions for
selected carbon
-intensive sectors
for public
capital markets
transactions, we
aim to provide
transparency regarding the emissions
we facilitate as
a result of
our capital market
activities. Our facilitated
emissions
are
calculated
following
the
PCAF’s
Global
GHG
Accounting
and
Reporting
Standard
–
Part
B
Facilitated
Emissions (first version, December 2023) for facilitated emissions, including public equity capital markets and public debt
capital
markets,
where
we
held
a
lead
bookrunner
or
lead
manager
/
co-manager
role
in
the
transaction.
Facilitated
emissions are not shown for the 2024 reporting year, due
to the inherent time lag in the availability of emissions data.
It is important to note that
these facilitated emissions are dependent
on the capital markets activity
during the year and
our market share is expected to fluctuate in our year-on-year
reporting.
We continue to
review and assess
emerging industry guidance and
target-setting methodologies for facilitated emissions.
We review and assess Global Banking transactions and employ a robust business selection process for mandates that are
accepted. This means that, in
our capital markets activities for carbon-intensive sectors,
we consider the potential climate
and sustainability
impacts of
the transaction
and related
material risks
and opportunities,
in line
with our
sustainability
and climate risk policy framework.
Facilitated emissions for selected carbon-intensive sectors (UBS Group)
For the year ended
31.12.23
31.12.22
Facilitated
amount
(USD bn)
Facilitated
emissions,
scopes 1
and 2
(million
metric t
CO
2
e)
Facilitated
emissions,
scope 3
(million
metric t
CO
2
e)
PCAF
score,
scopes 1
and 2
2
PCAF
score,
scope 3
2
Facilitated
intensity
(million
metric t
CO
2
e / USD
bn)
Facilitated
amount
(USD bn)
Facilitated
emissions,
scopes 1
and 2
(million
metric t
CO
2
e)
Facilitated
emissions,
scope 3
(million
metric t
CO
2
e)
PCAF
score,
scopes 1
and 2
2
PCAF
score,
scope 3
2
Facilitated
intensity
(million
metric t
CO
2
e / USD
bn)
Selected carbon-intensive
sectors
1
6.5
1.3
1.8
1.6
1.7
0.46
12.0
2.0
2.3
1.6
2.3
0.35
Selected carbon-intensive
sectors as % of total
5.3%
5.7%
Other sectors
117.7
197.7
Total facilitated amount
3
124.2
209.7
1
Selected carbon-intensive sectors are the following: fossil
fuels (coal, oil and gas), power generation,
iron and steel, aluminum, cement, automotive and
air transportation. Agriculture and real estate
are excluded
due to the limited data availability.
2
The PCAF data quality score has been combined for the key sectors and weighted by the facilitated
amount.
3
Includes all sectors.
Annual Report 2024 |
Sustainability Statement | Environmental information
36
Supporting our investing clients’ low-carbon transition
We are committed to supporting our investing clients in the transition to a low-carbon world in line with our obligations
to our clients, including
fiduciary duties as an
investment manager and on the
terms of the mandates agreed
with clients.
We offer a distinct approach to client investments,
which focuses on solutions and engagement
activities that empower
clients to
achieve
their transition
goals. We
have identified
six key
strategic actions
to support
our investing
clients in
Asset
Management
and
Global
Wealth
Management.
It
is
important
to
note
that
not
all
these
strategic
actions
are
relevant to
both business
divisions,
or to
all regions
within a
division, and
our progress,
where applicable,
may not
be
linear or simultaneous.
–
Develop our platform
of available climate
-related strategies, products
and solutions to
facilitate our investing
clients’
transition to a low-carbon world.
–
Engage investee companies to encourage them to adopt credible climate transition plans and manage climate-related
risks and opportunities (applicable to Asset Management only).
–
Collaborate
with
third-party
fund
managers
to
understand
their
climate
transition
plans
and
approach
to
consider
climate-related risks
and opportunities
(applicable to
Global Wealth
Management only),
where the
legal framework
allows.
–
Support clients’
progress on
their climate
objectives through
education sessions
and thought
leadership, along
with
portfolio construction
and transparency,
aiming to
assist clients
who seek
awareness of
mitigating climate
risks and
identifying transition opportunities in their investments.
–
Provide employees with the training, tools
and information necessary to support
our clients to navigate the transition
to a low-carbon world in accordance with their climate
objectives.
–
Engage with policymakers on key topics such as regulations
and policy development.
Details by business division on each strategic action are provided
in the respective sections below.
›
Refer to “Supporting our climate approach: key enabling
actions” in this section for more information about our
Group initiatives
Asset Management
Asset Management is committed to supporting our clients in
achieving their climate-related investment goals. In the UBS
Group Sustainability Report 2023, we referred to the target set by Asset Management aiming, by 2030, to align 20% of
UBS AG
Asset Management’s
total assets
under management
(AuM) with
net zero.
Given the
integration taking
place
within Asset
Management, we
are review
ing the
legacy target
set prior
to the
acquisition of
the Credit
Suisse Group
,
taking into
account all
of the
AuM of
the combined
businesses. We
have therefore
withdrawn the
target. We
remain
committed to supporting the Paris Agreement climate goals
in line with global efforts. At the end of 2024, we recorded
USD 64.4bn of total assets as having a net-zero
ambition, compared with USD 35.5bn at the
end of 2023.
Aligned
to
our
overall
approach
for
supporting
our
investing
clients,
Asset
Management
has
adopted
key
policies,
guidelines and frameworks,
along with actions
to manage
our climate-related
impacts and realize
opportunities. These
policies and actions are outlined below.
Our climate-related policies, guidelines and frameworks
Specific policies, guidelines and frameworks
are in place and aim
to manage climate-related
impacts and the realization
of opportunities within Asset Management.
The
climate
risk
integration
guidelines
describe
the
approach
toward
integrating
the
physical
and
transition
risks
of
climate change into the
assessment of public market issuers
and investment portfolios. The
guidelines identify companies
with elevated climate
risks and set
steps for
assessment of the
specific risks
and mitigation actions,
which are incorporated
into investment decision-making. The scope of the framework covers listed equity and corporate bonds. The most senior
level accountable for the implementation of the guidelines
is the head of the Sustainable Investing team.
The net-zero alignment framework has been
established to guide the internal classification
and development of products
and
solutions
meeting
clients’
needs
for
net-zero
investing.
The
framework
describes
a
range
of
methodologies
for
determining the net-zero
ambition of investment
products and covers
investments in public
equities and corporate
bonds,
sovereign bonds, direct
real estate, direct
infrastructure, carbon markets
and private debt.
In 2024, the
framework was
reviewed and
updated to
reflect further
developments of
industry guidance.
The most
senior level
accountable for
the
implementation of the guidelines is the head of the Sustainable
Investing team.
Climate-related investing metrics
The table
below provides
metrics related
to the
investments of
our Asset
Management division.
Investment-associated
emissions are
provided based
on the
recommendations
of the
Task
Force on
Climate-related
Financial Disclosure
s
(the
TCFD) and
are derived
from the
GHG emissions
(scopes 1
and 2)
attributed to
the issuers
and the
positions within
the
investment portfolios we
manage. The metrics
are calculated for portfolios
where emissions data is
available and primarily
covers
our
equity,
fixed
income
and
multi-asset
portfolios,
accounting
for
48%
of
the
total
invested
assets
of
Asset
Management.
The design
of the
table has
been changed
with a
view
to simplifying
the presentation
of the
metrics. It
now includes
three
commonly
used
metrics
for
investment-associated
emissions
for
Asset
Management.
Furthermore,
it
provides
carbon intensity metrics for equity and fixed income asset
classes.
Annual Report 2024 |
Sustainability Statement | Environmental information
37
Absolute
carbon
emissions
increased
year
on
year
primarily
due
to
inclusion
of
Credit
Suisse
portfolios
and
greater
coverage for
fixed income portfolios.
Carbon intensity
for Asset
Management decreased
as a
result of an
overall fall in
carbon intensity
across the
equities asset
class driven
by increased
equity market
valuations, partially
offset by
a rise
in
the carbon intensity of fixed income.
Climate-related investing metrics – portfolio emissions (Asset Management)
For the year ended
31.12.24
31.12.23
Asset Management Investment-associated carbon emissions:
Carbon emissions (absolute in million metric tons of CO
2
e)
1,2
54.8
41.3
Carbon intensity (in metric tons of CO
2
e per USD m invested)
1
56.5
62
Carbon intensity (in metric tons of CO
2
e per USD m of revenue)
1
101.2
103.6
Equities Asset Class
Carbon intensity (in metric tons of CO
2
e per USD m invested)
1
38.5
45.6
Carbon intensity (in metric tons of CO
2
e per USD m revenue)
1
90.4
101.5
Fixed income Asset Class
Carbon intensity (in metric tons of CO
2
e per USD m invested)
1
108.3
84.2
Carbon intensity (in metric tons of CO
2
e per USD m revenue)
1
130.9
122.5
1
Based on data for scope
1 and 2 GHG
emission of investee companies
from a third-party
data provider and positions
held in investment portfolios.
Note the scope of
the portfolio emissions metrics
reported for
2024 is Asset Management,
and includes Credit Suisse
portfolios which have migrated
onto UBS platforms by
the end of the
year. This
process is carried
out in waves and
will continue until
the end of 2025
at a
minimum. The scope of the metrics reported for 2023 is UBS AG Asset
Management only and excludes Credit Suisse portfolios.
2
2023 absolute carbon emissions have been restated from 46.3
to 41.3 million metric
tons of CO
2
e.
Our key climate-related actions
Asset Management aims
to manage its
climate-related impacts
and realize
opportunities through
the actions described
below.
These
actions
are
only partially
and indirectly
connected
to the
investment-associated
emissions
we report
for
Asset Management and for the selected asset classes.
Action 1: Develop our platform of available climate-related
strategies, products and solutions
Asset Management has
a broad
sustainable investing product
shelf that includes
traditional and alternative
funds, ETFs
and mandates with broad sustainability
and climate orientations. Examples of
such products include strategies that invest
in climate solutions, the
energy transition, infrastructure debt, green real estate
and more. To meet our client preferences
and demand, we continuously review our suite of
sustainability and climate-related portfolios.
In 2024, we expanded our offering
in the net-zero fixed income space to
cover both corporate and sovereign issuers. We
partnered
with
Bloomberg
to
create
The
Bloomberg
Global
Treasury
Net
Zero
Progress
Index,
a
net-zero
sovereign
progress index. This
methodology served
as the benchmark
index for converting
two of our
existing funds
to net-zero-
aligned strategies: the UBS (CH) Investment Fund – Bonds Global ex CHF Government
Net Zero Ambition Index, and the
UBS (CH) Investment Fund – Bonds Global Corporate Climate
Aware Hedged NSL, respectively.
We added
two low
carbon
ETFs to
support the
preferences of
clients wishing
to reduce
carbon emissions
in their
ETF
investments: the UBS (Irl) ETF plc – MSCI Canada ESG Universal
Low Carbon Select UCITS ETF, and the UBS (Irl)
ETF plc –
S&P
500
Climate
Transition
ESG
UCITS
ETF.
These
strategies
target
investee
companies
reducing
carbon
emission
intensities alongside exclusions in fossil fuel extraction and
thermal coal power.
The table below shows progress related to total assets with
a net-zero ambition.
The increase in the value of assets with net-zero
ambition was driven by an increase in the number
of net-zero ambition
portfolios
and
market
performance.
The
classification
of
additional
net-zero
ambition
portfolios
resulted
from
newly
launched
portfolios,
changes
to
existing
portfolios
and
a
refinement
to
the
Asset
Management’s
net-zero
alignment
framework to align with current industry standards and best
market practice.
Climate-related investing metrics: Opportunities – net-zero investing (Asset Management)
For the year ended
31.12.24
31.12.23
Assets with net-zero ambition (USD bn)
1
64.4
35.5
Number of net-zero ambition portfolios
1
49
35
Net-zero ambition assets share of total assets under management
(%)
2
3.6
2.9
1
Credit Suisse portfolios are in the process of being assessed in the context of the Asset Management's net-zero alignment framework to identify portfolios with a net-zero ambition and are therefore not reflected in
the reported metrics.
2
For 2024, the
total assets under management
represent Asset Management
including Credit Suisse.
For 2023,
the total assets under
management represent UBS
AG Asset Management
excluding Credit Suisse.
Action 2: Engage investee companies
Asset Management has had
a dedicated climate engagement
program focused on investee
companies in place for over
six years. This program is based on selecting companies that make
a significant contribution to portfolio emissions across
listed
equity
and
corporate
fixed
income
investment
portfolios.
This
engagement
is
based
on
a
set
of
expectations
published on
our website
from which
company
specific engagement
objectives are
developed, supplemented
with an
evidenced-based research
framework, along with
sector-specific
standards addressing
governance, corporate
transition
plans and exposure to sector-specific
decarbonization levers across business operations
and the value chain.
Annual Report 2024 |
Sustainability Statement | Environmental information
38
In
its
private
markets
business,
Asset
Management’s
active
ownership
on
climate
change
is
integrated
into
the
management
of
its
funds
and
is
implemented
by
all
operational
functions
throughout
the
ownership
cycle
of
an
underlying
project.
This
spans
from
development
or
acquisition
to
the
ongoing
asset
management,
renovation
and
maintenance, through to sale.
Action 3: Support clients’ progress on their climate
objectives
Asset
Management
recognizes
that
its
approach
to
climate
change
investment
is
determined
by
clients’
choices.
Therefore,
we aim
to play
a role
in helping
our clients
to achieve
their climate
objectives, working
collaboratively with
them on
climate risk
management by
providing information
about best
practices and
approaches for
portfolios with
a
net-zero ambition. This includes
supporting climate-oriented portfolio construction
through internal transition readiness
assessment methodologies, transparency on climate
-relevant data metrics and thought leadership.
In 2024,
Asset Management
supported clients
in a
variety of
ways reflecting
the specific
needs of
the clients
involved.
We created
thought pieces
and guidance
for clients
on climate
change aspects
of investing.
We supported
a client
in
meeting the
need for
decarbonizing the
sovereign part
of a
portfolio. We
also assisted
a retail
bank with
developing a
net-zero multi-asset
offering for its
client, along
with methodology
and building
blocks for a
fund-of-funds solution.
A
further example is
our development of a
net-zero ambition corporate bond
fund for Swiss institutional
clients. As a result,
we have increased the shelf of products that we offer to
clients with a climate-related perspective.
During the
year, Asset
Management published
a Climate
Aware report
showing decarbonization
path visualizations.
It
also published a
series of insights
on approaches to
COP29, physical risks,
battery power and
natural capital, as
well as
an engagement for impact report,
an IPE special report
and a climate report
that provided an overview of
its commitment
and actions to the energy transition.
Action 4: Provide employees with training, tools and information
Asset Management provides relevant
training, tools and information to its employees
to support clients in the transition
to a
low-carbon world.
With the
aim of
enabling the
alignment of
the activities
of Asset
Management’s employees
to
the
division’s
sustainable
investing
goals,
Asset
Management
delivered
an
ESG
talk
series
and
updated
Group
foundational
sustainable
investing
training
aimed
at
an
Asset
Management
audience.
It
enhanced
role-specific
sustainable
investing
know-how
by
running
the
first
Berkeley
UBS
external
certification
program.
It
also
conducted
regulatory
learning sessions
educating investment
professionals
on sustainable
investing regulatory
and greenwashing
risks.
›
Refer to “Supporting our climate approach: key enabling
actions” in this section for more information about our
Group-wide
training and culture activities
Action 5: Engage with policymakers
Asset Management undertakes engagement with the industry and government with the aim of providing input to policy
and regulation in the development of well-functioning
markets.
With respect
to climate
change, Asset
Management engages
with key
stakeholders such
as national
and international
policymakers through
industry forums,
including the
European Fund
and Asset
Management Association
Stewardship,
Market
Integrity
and
ESG
Investment
Standing.
In
Switzerland,
Asset
Management
is a
member
of
Swiss
Sustainable
Finance and the Asset
Management Association Switzerland
Working Groups on Sustainable
Finance, including a focus
on developing the Swiss Climate Scores methodologies and
the Swiss Stewardship Code.
›
Refer to “Supporting our climate approach: key enabling
actions” in this section for more information about the Group’s
initiatives on industry, governments and public sector engagement
Global Wealth Management
Global Wealth Management is a distributor of investment solutions, including those that focus on
climate. We recognize
that
some
investors
may
have
decarbonization
ambitions
or an
interest
in
investing
in
the
transition
to
a
low-carbon
world, therefore
we
aim to
provide
a
range
of solutions
for
private
investors
and
family
offices
to address
their
own
decarbonization targets
where possible.
We may
seek to
do this through
allocations to
climate-related
solutions in our
discretionary mandates where relevant
and available, and by curating climate investment options for advisory portfolios.
The focus on
providing a
range of credible
solutions is complemented
by building investor
awareness, driving
solutions
innovation across
asset classes
and strategies, and
providing investors
with the tools
to understand their
portfolios in a
climate
context.
However,
the
available
solutions,
approaches
and
climate-related
data
and information
will
differ
by
region.
Our key climate-related actions
Action 1: Develop our platform of available climate-related
strategies, products and solutions
Global Wealth
Management
aims to
support climate
change mitigation
by providing
options for
private investors
and
family
offices
to
address
their
own
decarbonization
objectives
where
possible.
In
2024,
Global
Wealth
Management
continued
to
increase
the
number
of
investment
solutions
across
asset
classes
and
strategies
to
support
clients’
decarbonization objectives.
Annual Report 2024 |
Sustainability Statement | Environmental information
39
Action 2: Support clients’ progress on their climate objectives
We aim
to support
our clients
in making
progress
on their
climate objectives
through
education, investment
research,
and portfolio
construction and transparency. Our investment specialists
provide investment insights
to clients and
advisors
on various climate-related and
transition-investing topics, given the
importance of climate change
for capital markets
and
business
models.
This
includes
incorporating
climate
considerations
into
portfolios,
setting
portfolio
decarbonization
targets and building exposure to carbon markets.
In 2024, we continued to provide coverage
of climate-related and broader sustainable investing topics in publications for
private clients.
Our Chief
Investment Office identified
three key sustainability
themes for the
year that encompass
different
areas
of
the
transition
to
the
low-carbon
world:
the
industrial
transition,
sustainable
infrastructure,
and
water
and
agriculture.
Throughout
the
year,
we
provided
a
private
investor
perspective
on
investment
opportunities
tied
to
the
transition. Our
analysts covered
a broad
range of
topics, including,
but not
limited to,
longer-term investment
themes
(e.g. energy efficiency, the energy transition(s), smart mobility,
the circular economy, and the blue economy), investments
in
renewable
energy
infrastructure,
decarbonization
of
high-climate-impact
sectors
(e.g.
cement,
steel
and
shipping),
climate risks and opportunities tied to artificial intelligence, implications for
the transition from global election outcomes.
We activated
this content internally
and externally
through a
variety of
channels, including video
content, social
media
campaigns and podcasts in collaboration with industry partners,
as well as through our website.
We also
continue to
see a
greater focus
on climate
transparency in
select regions.
Since the
introduction of
the Swiss
Climate
Scores
in
2023,
we
have
continued
to
inform
advisors
on
this
content
and
made
reports
published
by
Asset
Management and third-party
managers available through
our platform. We
also incorporated key
environmental statistics
into the after-sales materials for relevant investment modules we
offer to our clients.
Action 3: Collaborate with third-party fund managers
We work closely with third-party
fund managers on developing new sustainability and
climate solutions, where
relevant
and as legal framework
s
allow for it. We
aim to identify
relevant and compelling
investment opportunities and
credible
tools and to support the launch of new solutions where such are possible and relevant for client portfolios. For example,
in
2024,
we
co-designed
and
launched
an
energy
transition
infrastructure
fund
for
clients
interested
in
investing
in
transition-related real assets.
We also
host regular “innovation
sessions” with
managers on
our platform
to discuss
market
trends, development ideas and new strategies. These
sessions include a focus on sustainability and transition.
We
continue
to
believe
that
the
transition
to
a
low-carbon
world
requires
an
“all-of-the-above”
approach,
where
investments
in
clean
energy
infrastructure
and
green
technologies
are
complemented
by
effective
and
credible
shareholder and
bondholder engagement
with heavy
polluters on
decarbonization.
As such,
we dedicate
a portion
of
our
discretionary
portfolios
to
impactful
engagement
strategies,
including
those
that
invest
in
companies
with
the
objective of engaging on decarbonization,
and regularly collaborate with
these managers on their impact
measurement
and reporting capabilities.
Action 4: Provide employees with training, tools and information
In growing our employees’ capabilities
around climate and the transition, we
aim to provide them with
the training, tools
and information
necessary
to support
our clients
in navigating
the transition
to a
low-carbon world.
In Global
Wealth
Management, we
continued the
rollout of
an education
curriculum covering sustainability
and sustainable investing
topics
in certain
regions.
This curriculum
offered
to advisors
covered
climate-relevant
topics and
considerations
for investing
around the transition.
›
Refer to “Supporting our climate approach: key enabling
actions” in this section for more information about our
Group-wide
training and culture activities
Annual Report 2024 |
Sustainability Statement | Environmental information
40
Reducing our own climate impact
Reporting to
the Head
Group Human
Resources and
Corporate Services,
Group Real
Estate and
Supply Chain
(GRESC)
has overall responsibility
for managing environmental
and climate-related impacts
arising from our own
operations and
supply chain. GRESC partner
s
with Group Operations and
Technology Office (GOTO),
who manages technology-related
environmental
impacts,
from
hardware
and
data
centers.
GRESC
ensures
that
implementation,
monitoring
and
improvement efforts comply with local
legislation and adhere to the
international environmental management
standard
ISO 14001 globally and the international energy management standard ISO 50001 in the EMEA
region. GOTO drives the
optimization of
our technology within
our data centers
and the cloud,
ensuring optimal
efficiency measures
across our
energy-intensive
assets
while
encouraging
development
practices
that
consider
efficiency
and
reduce
our
overall
environmental impact.
To mitigate
our climate-related
impacts, we
have defined
a scope
1 and
2 emissions
reduction
target and actions to guide our transition toward net zero. Due to the nature of our operations and the way we manage
our own climate impact, all information and data provided in
this section relates to UBS Group, unless explicitly stated.
Our scope 1 and 2 net-zero target
We have replaced
our original 2025
scope 1 and
2 target
with a new
scope 1 and
2 net-zero
target to be
achieved by
2035 that is
in line with
net-zero guidelines. The new
target reflects our
enlarged corporate real estate
portfolio following
the acquisition of
the Credit
Suisse Group and
considers the
latest definition of
a “net-zero
target” in the
Commission
Delegated
Regulation
(EU)
2023/2772
(CSRD).
1
We
aim to,
at
a
minimum, reduce
our emissions
by 90%
against
our
2023 baseline of 46,278 metric tons of CO
2
e before neutralizing any residual emissions through the
purchase of carbon
removal credits.
This target covers our scope
1 and market-based scope 2
emissions across all our
global own operations. As
part of the
pathway toward 2035, we also defined
a 2030 interim target to
reduce our scope 1 and net scope 2
emissions by 57%
against our 2023 baseline. This interim target does not include
the use of any carbon removal credits.
When developing the new scope 1
and 2 target, we reviewed sectoral net-zero pathways
(e.g. real estate) but concluded
that there was no sectoral pathway that reflected the
structure of our operations. We have followed the latest guidance
from
the
SBTi
and
use
its
Absolute
Contraction
Approach
2
limiting
global
warming
to
1.5°C.
Demonstrating
our
commitment to climate action, we have set
a more ambitious target, aiming to achieve
net zero by 2035, well ahead of
2050 – the deadline under the SBTi Absolute Contraction
Approach.
For our own operations and
the scope of our scope
1 and net scope 2 emission
reduction targets, business growth
and
technological
advancement
may lead
to change
s
in the
workforce
numbers
impacting
real
estate-
and service-related
needs. The continued advancement
of low-emission technologies for space
heating and countries’ net-zero targets,
will
positively impact the target achievability. We
recognize that the impact of
such developments is difficult to quantify
and
therefore
needs
to
be
closely
monitored.
Projections
of
real
estate
demand
changes
will
be
factored
into
the
annual
model review to ensure
early course correction
if required. Another development
that will impact
target achievement is
the availability of renewable
electricity in line with RE100
requirements as global demand
increases with production not
necessarily following at the same pace.
In 2024, our scope 1 and net
scope 2 emissions reduced by 35% against
our baseline. This reduction was mainly
driven
by the consolidation of our real estate footprint and our increased
coverage of renewable electricity.
Accompanying our scope
1 and 2 net-zero
target, we also aim
to reduce by
2030 our absolute
energy consumption by
35% compared with
our 2023 baseline.
The ambition level
of this energy
reduction target was
set through forecasting
the
expected
energy
usage
reductions
resulting
from
the
implementation
of
the
decarbonization
levers
and
actions
described
below.
In
2024,
we
achieved
a
10%
reduction
in
energy
use
compared
with
our
baseline,
driven
by
the
consolidation and energy optimization
of our real estate
and data centers. Our energy
reduction target also contributes
to mitigating the risk of not being able to secure full coverage
of renewable electricity.
We have also set a target of sourcing 100% renewable electricity from qualifying generation by 2026 in line with RE100
technical guidance, in markets where credible renewable electricity generation and tracking systems exist. This will cover
our corporate
real estate
portfolio, including
data centers.
In 2024,
99.8% of
the electricity
we used
across our
global
real
estate
portfolio
was
from
renewable
sources,
with
30%
of
bundled
electricity
and
70%
of
unbundled
electricity
coming from such sources. Out of our total gross scope
2 emissions, 91%
is covered by contractual instruments.
We
have
set
2023
as
our
baseline
year
for
our
scope
1
and
2
net-zero
target
and
our
energy
reduction
target.
The
updated
baseline
reflects
material
changes
for
the
combined
firm
and
an
adjusted
scope
of
our
renewable-source
electricity commitment to
address markets with
limited procurement availability
of electricity from renewable
sources in
line with RE100.
All three targets are led and
managed by GRESC in collaboration with GOTO. We have
actively engaged
relevant stakeholders in the development of
these targets by collecting strategic assessments from
topic experts, regional
representatives and real estate managers.
1
Definition of a net-zero target by the CSRD: Setting a
net-zero target at the level of an undertaking aligned with meeting
societal climate goals means: (i) achieving a scale of value chain emission reductions consistent
with the abatement required to reach global net-zero in 1.5°C pathways; and
(ii) neutralizing the impact of any residual emissions (after approximately
90–95% of greenhouse gas emission reduction with the possibility
of justified sectoral variations in line with a recognized sectoral pathway) by permanently removing
an equivalent volume of CO
2
.
2
As per the SBTi Corporate Net-Zero Standard Criteria v1.2, March 2024
Annual Report 2024 |
Sustainability Statement | Environmental information
41
We aim, at a
minimum, to review our
targets every five years and,
from 2030 onward, to
update the base year
and target
values after
every
five-year
period to
ensure
consistency
with the
most
recent climate
science and
best
practices.
It is
important to note
that progress towards
our targets
may not be
linear, with year-on-year
volatility expected due
to the
nature of operational requirements and business development.
As part of our global emission accounting
to model our 2035 reduction target,
we have also assessed the prevalence
of
locked-in emissions within the scope of our
target. We own and control some buildings
with significant on-site fossil fuel
use (such as those heated
with natural gas or
oil) and are aiming
to either replace such
systems or move out
of the real
estate,
wherever
possible. For
some locations,
we
are
also dependent
on
municipal
action to
develop
or decarbonize
district heating systems, as electrification with the current infrastructure
or location is not a viable alternative.
Decarbonization levers and key actions underpinning
our own operations targets
To achieve our targets related to
our own operations as outlined above
and to manage our climate-related impacts in
our
own operations,
we have
identified
key decarbonization
levers and
actions required
in our
real estate
operations and
service portfolio. The decarbonization levers are aggregated types of
mitigation actions. Therefore, actions are structured
by decarbonization lever.
Lever 1: Phase
out fossil fuels and switch to greener alternatives (scope 1)
We
have
established
a
four-part
action
plan
to
phase
out
fossil
fuels
and
implement
greener
alternatives
in
order
to
significantly reduce our associated scope
1 emissions. By deploying
a series of targeted
actions, we can transition
to more
sustainable practices and energy sources, ensuring
a cleaner and more resilient future
for our own operations.
Action 1: Phase out fossil-fuel-powered own vehicles
Across
all
regions,
we
plan
to
phase
out
our
fossil-fuel-powered
own
vehicles
by
2035.
In
markets
where
this
is not
feasible,
we
will pursue
the
best
available
industry
options,
such as
hybrid
vehicles,
while continuing
to seek
greener
alternatives.
This
will
help
us
ensure
compliance
with
emission
standards
and
optimized
operational
efficiency
while
minimizing our carbon footprint.
Action 2: Switch to more sustainable fuel alternatives and battery
replacements
In
2024,
we
developed
high-level
plans,
which
extend
through
2035,
to
reduce
and
replace
fossil
fuels
in
critical
engineering
power
systems.
We
will
seek
to
replace
those
fuels
with
more
sustainable
alternatives,
such
as
biofuels,
hydrogenated vegetable oils and battery replacements.
We initiated a cross-regional market
analysis of fuel alternatives
in 2024, to be
completed by 2025, to ensure
appropriate
replacements can be procured accordingly to meet our 2035 scope 1 and 2 net-zero
target. The outcome of this market
analysis will inform our further detailed planning.
Action 3: Eliminate usage of heating oils and natural gas
We aim to eliminate oil- and natural-gas-based heating systems within our own operations
by 2035, in line with industry
decarbonization
efforts.
We
plan
to
achieve
this
by
identifying
and
targeting
real
estate
assets
for
electrification
and
switching to district heating to maximize the operational
and cost efficiency of each asset’s life cycle.
Action 4: Transition to low-GWP refrigerants
We have initiated the replacement of refrigerants with alternatives with lower global warming
potential factors. We plan
to complete this action across all regions by
2035.
Lever 2: Reduce our operational emissions (scope 2)
In parallel
with
reducing
our
scope 1
emissions,
we
are
also focusing
on reducing
our operational
emissions
through
strategic enhancements to our
corporate real estate portfolio.
By implementing three key actions,
we plan to create
more
energy-efficient workspaces and real estate
.
Action 1: Consolidate
and optimize
our corporate real estate portfolio
In
collaboration
with
the
individual
business
divisions,
we
will
prioritize
the
selective
exits
from,
and
downsizing
of,
underutilized spaces
in our real
estate globally
through 2035
and beyond.
We also
plan to optimize
our corporate
real
estate
portfolio’s
energy
usage
either
via
retrofitting
(Action
2)
or,
in
some
cases,
by
relocating
to
more
sustainable
buildings. During
2024, we
achieved a
52% reduction
of our
scope 2
market-based emissions
across the
consolidated
portfolio against our 2023 baseline.
We are
reducing energy
consumption
in our
own data
centers as
a result
of migrating
to third-party
co-location data
centers and cloud providers where the power usage effectiveness
ratio is substantially more efficient.
Action 2: Upgrade
and retrofit our corporate real estate portfolio
To
effectively address our real estate
energy footprint, we intend to upgrade and retrofit
our real estate portfolio and fit
out in
line with
internationally recognized
building standards
,
such as
Leadership in
Energy and
Environmental Design
(LEED)
by
the
USGBC.
We
expect
to
improve
and
extend
the
existing
energy
management
system
within
the
EMEA
region, with greater implementation
of ISO 50001 to drive energy efficiency within
our own operations.
Annual Report 2024 |
Sustainability Statement | Environmental information
42
Action 3: Support the decarbonization of district heating and cooling
systems
Although we
recognize
that
we do
not exert
any direct
operational
control
over external
district heating
and cooling
systems, we plan
to support their
decarbonization in connection
with our real
estate consolidation strategy.
To
achieve
this objective,
we intend
to establish
an engagement
plan for
stakeholder
management
activities within
the next
few
years,
including
fostering
partnerships
and
exerting
influence
with
stakeholders
(e.g.
local
communities
and
utility
companies)
to promote the decarbonization of district
heating systems.
Lever 3: Transition to renewable electricity generation (scope 2)
The uptake of renewable electricity
generation is critical for supporting the transition
to a low-carbon electricity market.
Since
2020,
we
have
been
working
on
maximizing
the
use
of
renewable
energy
in
our
own
operations
globally.
In
accordance with our commitments,
we want to source 100% of the electricity we use from renewable-source-qualifying
generation by 2026 in line with RE100 technical guidance,
in markets where it is feasible to do so.
We aim
to
leverage
our position
in the
global electricity
market
to support
the transition
to a
global low-carbon
grid
through the key actions listed below.
Action 1: Identify and implement opportunities for direct power
purchase agreements
We will
regularly review our real
estate ownership and
lease arrangements to
identify substantial, long-term
opportunities
to
source
our
electricity
for
these
volumes
directly
from
renewable
electricity
generators
through
power
purchase
agreements.
This
will
support
the
build-out
of
new
electricity
generation
plants
and
strengthen
the
chain
of
custody
between the
generation source
and the
end
use of
electricity,
while decreasing
the carbon
content of
the grid
in the
longer term.
Action 2: Improve the transparency of the chain of custody
for renewable energy certificates
We will work with our key electricity suppliers to improve the transparency of the chain of custody for renewable energy
certificates associated with the supply of electricity to our assets. We
will ensure that existing products / electricity
tariffs
meet
RE100
technical
criteria
and
we
will
identify
opportunities
to
support
new
products / tariffs
that
improve
our
compliance, driving a more competitive and RE100
-aligned marketplace in the future.
Action 3: Build competitive renewable energy certificate supply
solutions
In electricity markets
where our volumes are
not large enough
to facilitate tariff negotiations, or
where regulated markets
restrict the electricity tariff options available
to us, we will continue to purchase additional
renewable energy certificates
to meet our residual needs.
We will undertake competitive tendering for broker services and maintain those contracts through our corporate
vendor
management
practices
to
ensure
the
renewable
energy
certificates
we
purchase
remain
aligned
to
evolving
technical
standards. We will also support renewable electricity generators where their products cannot be sold within local energy
products / tariffs.
Action 4: Actively contribute to consultations on renewable electricity
tracking systems in markets where infrastructure
is not developed
In
a
few
countries
where
we
operate,
the
infrastructure
to
measure
and
track
electricity
volumes
generated
from
renewable
sources
is
either
underdeveloped
or
non-existent,
compromising
the
availability
of
renewable
energy
certificates
in
line
with
RE100
technical
criteria.
In
these
areas,
we
will be
a
strong
advocate
for
the
development
of
tracking infrastructure, participating
in consultations to help change
the market, with a view
to extending our coverage
of electricity from renewable sources
into countries where renewable energy
procurement is unfeasible.
Action 5: Assess and install on-site renewable generation
of electricity at our owned assets
We regularly review our real
estate ownership and lease arrangements to identify those
assets where we expect to have
long-term operational control and available
infrastructure (e.g. roof space) that
could facilitate the installation of on-site
renewable
generation of
electricity.
We
will continue
to make
the necessary
investments
in on-site
renewables
where
physically and
economically feasible,
ensuring we
minimize our
dependency on
grid offerings
and reducing
the risk
of
unforeseen market
developments that
may compromise
our ability
to source
renewable
electricity tariffs
or renewable
electricity certificates.
Carbon removals and credits
We plan to
purchase technological
carbon removal
credits to
neutralize residual
emissions for
our 2035
scope 1
and 2
net-zero
target.
We
estimate
that
we
will
eventually
retire
around
5,000
metric
tons
annually
based
on
our
existing
contractual agreements for this
purpose. In 2022, we
signed two landmark partnerships
with Climeworks and neustark
to provide us with
carbon removal credits.
Both companies are
pioneers in innovative
carbon removal technologies.
We
were
also among
the
five
companies
that
joined
the
NextGen
CDR Facility
(NextGen)
as founding
buyers
to
scale
up
carbon removal technologies
and catalyze the
market for high-quality
carbon removal.
These partnerships continued
in
2024.
Furthermore, since
2007, we
have been
committed to
purchasing biogenic
carbon
reduction and
removal credits
that
correspond to 100% of our air travel emissions for the Group. In 2024, we retired 75,211 credits from biogenic sinks for
our voluntary air travel commitment, with an average
“A” rating from third-party carbon ratings
agency BeZero Carbon
at the time of retirement.
Annual Report 2024 |
Sustainability Statement | Environmental information
43
We only
purchase credits
from technological
and biogenic
sinks that
are assessed
against the
Integrity Council
for the
Voluntary Carbon Market (ICVCM) Core Carbon Principles and verified against either
the Gold Standard or Verra,
among
other international standards. Our carbon credit purchases
are strictly aligned to our internal Carbon and
Environmental
Markets Guideline, which sets out minimum requirements for
such market instruments.
We acknowledge that standards and methodologies for carbon credits are still evolving. We will
continue to improve our
portfolio through market partnerships
and industry engagement toward
a standardized quality benchmark
for the future.
Carbon credits canceled (UBS Group)
For the year ended
31.12.24
Carbon credits canceled in reporting year (tCO
2
e)
75,211
Internal carbon pricing
We continue to apply a forward-looking shadow price
of USD 400 per metric ton,
covering all our scope 1 and net
scope
2 emissions,
to incentivize
the use
of low-emission
technologies in
real estate
projects. Through
this shadow
price, we
also aim to incentivize
the replacement of fossil-fuel
heating systems, real
estate relocation and
fuel transition in critical
engineering power systems.
The price applied reflects
the blended mix of
permanent carbon removals that
are required
to
neutralize
any
residual
emissions
that
cannot
otherwise
be
abated
as
part
of
our
existing
long-term
contracts
to
purchase high-quality credits from technological sinks, as
described in the section above.
Greenhouse gas emissions reporting
Our gross and market-based GHG emissions across scopes
1, 2 and 3, including a more detailed view of the GHG scope
3 categories, are provided in the tables further below
and have been calculated considering the principles,
requirements
and guidance provided
by the GHG
Protocol Corporate
Standard (version
2004) and
the International
Organization for
Standardization (the ISO) in ISO 14064-1:2018.
GHGs in scope and units used
All greenhouse gas (GHG) emission
figures for scopes 1,
2 and 3, category 1 to 14,
are in metric tons of carbon
dioxide
equivalents (CO
2
e). For
scopes 1,
2 and
3, category
3, 5
to 8
and 10
to 14
(where relevant),
three of
the seven
GHGs
covered
by
the
Kyoto
Protocol
are
included:
carbon
dioxide
(CO
2
),
methane
(CH
4
)
and
nitrous
oxide
(N
2
O).
Hydrofluorocarbon
(HFC) emissions
have been
included in
our reporting
where we
had losses
of refrigerant
gases. We
have no material sources
of perfluorocarbon (PCF), sulphur hexafluoride (SF
6
) or nitrogen trifluoride (NF
3
) emissions under
our operational control.
For scope 3, category 1, 2, 4
and 9, emission factors are used that
include CO
2
, CH
4
, N
2
O, HFCs, PCFs, SF
6
and nitrogen
trifluoride (NF
3
).
Quantification of emissions
Scope 1 and 2, along with
as scope 3, category 1
to 14, are calculated
for UBS Group based
on the operational control
approach as detailed by the GHG Protocol
Corporate Standard (version 2004).
When possible, the most recent Global Warming Potential (GWP)
values published by the IPCC based on
a 100-year time
horizon
were
used
to
calculate
the
CO
2
e
emissions
of
non-CO
2
gases.
1
Removals
and
carbon
credits
have
not
been
included in the calculations.
We have used published national conversion factors and global warming potentials
to calculate emissions from our own
operations. In the absence
of any such
national data, the UK
Department for Environment, Food
& Rural Affairs (DEFRA)’s
Greenhouse
Gas
Conversion
Factors
for
Company
Reporting
and,
in
some
cases,
the
U.S.
Environmental
Protection
Agency (EPA), VfU,
International Energy Agency
(IEA) and WaterShed Comprehensive
Environmental Data Archive
(CEDA)
emissions factor indicators have been used for the calculation
of GHG emissions.
1
For data sourced from the EPA, IPCC AR4 100y GWP are used.
Annual Report 2024 |
Sustainability Statement | Environmental information
44
Scope 1
Scope 1
emissions include emissions
from burning fossil
fuels (e.g. heating
oil, natural gas)
in buildings, loss
of refrigerants
and fuels
used in
business-related
travel
in vehicles
owned
by the
company.
Emissions are
calculated
using measured
activity
data
at
building and
country
level
for
the
following
environmental
accounts:
natural
gas,
heating
oil,
diesel
/
heating
oil
for
emergency
power
supply,
biomass,
wood
pellets,
wood
chips,
fuel
consumption
for
own
cars,
fuel
consumption for own jets and refrigerants. Measured
activity data is converted into GHG emissions by means of specific
related emission factors from DEFRA.
Scope 2
Scope 2 emissions
include emissions
from purchased
electricity,
including electricity related
to IT usage
at various types
of data
hosting facility not
under UBS operational
control, and cooling,
district heating and
other types of
heating systems
(e.g. steam) used
in buildings. Measured and
estimated activity data is
converted into GHG
emissions by means
of specific
related emission factors from
DEFRA, EPA and
the IEA. In addition, where specific
provider-based information regarding
the fuel sources for district heating could be obtained,
a corresponding emission factor was used.
Scope 3
Scope 3
emissions are
reported
for each
significant category
and have
been calculated
considering the
principles and
provisions
of the
GHG Protocol
Corporate Value
Chain (Scope
3) Accounting
and Reporting
Standard
(Version
2011).
Our significant
scope 3
categories were
determined based
on multiple
inputs. Firstly,
the amount
and intensity
of the
estimated
GHG
emissions
informed
the
importance
of
the
category
for
UBS.
Secondly,
the
availability
of
data
was
assessed
to
inform
whether
the
category
could
be
estimated
as
stand-alone
emissions.
Finally,
a
peer
benchmark
complemented the assessment, allowing comparison of
which categories other banks deem important.
We conducted a screening of
our total scope 3
GHG emissions based on the
14 scope 3 categories identified
by the GHG
Protocol Corporate
Standard and
GHG Protocol
Corporate
Value Chain
(Scope 3)
Accounting and
Reporting Standard
(Version 2011) using appropriate estimates.
To calculate the
scope 3, category 1, 2, 4 and 9
emissions, we used a combination of applying a
spend-based method
and using
supplier-specific actual
emissions. The
spend-based method
is based
on our
annual spend
with vendors
and
associated
emission
factors
(supplier
specific
emissions
intensity
is
taken
from
the
CDP,
where
data
is
adequate
and
verified, and for others
from the Comprehensive Environmental
Data Archive (CEDA) by
Watershed Factors multi-regional
input /
output emissions
factor
database
per industry
and country).
For supplier
-specific actual
emissions,
our primary
cloud provider’s emissions are
taken directly from the emissions
impact dashboard provided by them.
Scope 3, category
1, 2,
4 and
9 emissions
are reported
together because
they are
based primarily
on our
spend with
vendors, which
is a
mix of our capital and operating expenditure. Furthermore, they include spend related to transportation and the delivery
of purchased goods and services and related to downstream
transport.
Scope 3, category 3
, is calculated based on all
relevant energy and fuel indicators represented in
scopes 1 and 2.
Scope
3, category 5
, is calculated
based on the office
waste data collected
in our locations.
Where activity data
could not be
collected, we
estimated the
kilograms of
waste produced.
Scope 3,
category 6
, includes
emissions from
our business
travel by
air, and
by rail
and road
where information
is available.
This is
the first
time we
have also
included emissions
from hotels in our
calculations.
Scope 3, category 7
, employee commuting, as defined
by the Greenhouse Gas Protocol,
includes emissions from employee
commuting and from
employees working from home.
For employee commuting, we
estimate emissions based on the distance traveled, using governmental sources that provide average distances per mode
of
transport,
as
well
as
the
percentage
split
of
transport
modes
used
by
commuters.
For
emissions
from
employees
working from home, we use the UNFCCC model.
Scope 3, categories 10 to
12
, are not relevant to
the UBS business model as
we do not supply physical
products.
Scope
3, categories 8 and
13
, are currently not
reported separately and
are partially included in
the reporting of our
scope 1
and 2 emissions. We
are working to gain
more clarity on
this category.
Scope 3, category 14
, is not applicable
to UBS
as we do not have franchises.
Annual Report 2024 |
Sustainability Statement | Environmental information
45
Overview of our environmental indicators (UBS Group)
Environmental indicators
1
For the year ended
31.12.24
2
31.12.23
1,2
31.12.22
2
GRI
3
Absolute
normalized
4
Trend
5
Absolute
normalized
4
Absolute
normalized
4
Environment
Total direct and intermediate energy consumption
6
302-1-e
679 GWh
æ
755 GWh
866 GWh
Total direct energy consumption
7
302-1-e
79 GWh
æ
92 GWh
109 GWh
Natural gas
302-1-a
84.1%
á
67.8%
70.6%
Heating oil
302-1-a
6.5%
â
18.7%
15.3%
Fuels (petrol, diesel, gas, biomass)
8
302-1-a
8.5%
â
12.9%
13.5%
Renewable energy (solar power, etc.)
302-1-b
0.9%
á
0.6%
0.6%
Total intermediate energy purchased
9
302-1-e
600 GWh
æ
663 GWh
757 GWh
Electricity
302-1-c-i
531 GWh
æ
587 GWh
668 GWh
Electricity from gas-fired power stations
10
302-1-c-i
0.1%
â
2.2%
2.8%
Electricity from oil-fired power stations
10
302-1-c-i
0.1%
â
0.6%
0.6%
Electricity from coal-fired power stations
10
302-1-c-i
0.0%
â
1.4%
3.2%
Electricity from nuclear power stations
10
302-1-c-i
0.0%
â
0.2%
2.3%
Electricity from hydroelectric power stations
10
302-1-c-i
35.7%
æ
39.5%
29.5%
Electricity from other renewable resources
10
302-1
64.1%
ä
56.1%
61.6%
Heat (e.g. district heating)
11
302-1-c-ii, iii, iv
70 GWh
æ
76 GWh
89 GWh
Share of electricity from renewable sources
12
302-1
99.8%
à
95.6%
91.1%
Travel
Total business travel
13
305-3
358 m Pkm
á
310 m Pkm
311 m Pkm
Rail travel
14
305-3
2.9%
â
3.6%
3.1%
Road travel
14
305-3
4.9%
â
10.1%
5.4%
Air travel
305-3
92.2%
ä
86.4%
91.5%
Number of flights (segments)
305-3
153,805
á
130,836
137,218
Paper
Total paper consumption
301-1-a
2,400 t
â
3,371 t
3,401 t
Post-consumer recycled
301-1-a-ii
8.8%
á
5.3%
6.0%
New fibers FSC
15
301-1-a-ii
41.2%
â
66.2%
46.7%
New fibers ECF + TCF
15
301-1-a-i
50.1%
á
28.5%
47.3%
New fibers chlorine-bleached
15
301-1-a-i
0.00%
à
0.00%
0.01%
Waste
Total waste
306-3
6,996 t
â
8,485 t
8,381 t
Valuable materials separated and recycled
306-4
52.9%
æ
57.4%
52.2%
Incinerated
306-5-c-ii
22.3%
ä
20.5%
17.3%
Landfilled
306-5-c-iii
24.8%
ä
22.2%
30.5%
Total water consumption
16
303-5
1.23 m m3
à
1.21 m m3
1.04 m m3
Greenhouse gas
(GHG)
Direct GHG emissions (scope 1)
17
305-1
18,168 t
æ
20,796 t
25,167 t
Gross location-based energy indirect GHG emissions (scope 2)
16
305-2
132,284 t
æ
150,735 t
164,717 t
GHG reductions from renewable electricity
18
305-5
120,178 t
à
125,252 t
128,257 t
Market-based energy indirect GHG emissions (scope 2)
17
305-2
12,107 t
â
25,482 t
36,460 t
Gross other indirect GHG emissions (gross scope 3)
17
305-3
1,045,659 t
â
1,354,681 t
107,517 t
Total gross GHG emissions
305-1, 305-2, 305-3
1,196,111 t
â
1,526,212 t
297,401 t
Total net GHG emissions (GHG footprint)
19
305
1,075,934 t
â
1,400,960 t
169,144 t
Legend: GWh = gigawatt hour; Pkm = passenger kilometer; t = metric ton; m
3
= cubic meter; m = million; CO
2
e = CO
2
equivalents
1
All figures are based on the level of knowledge as of January 2025. GHG
emissions for 2023 were restated to account for data enhancements,
inclusion of additional Scope 3 categories and enlarging
the scope of Scope 3 Category 1 emissions. As a result of this
restatement our previously reported 2023 emissions increased from 168,688 t CO
2
e scope 1, 2 (market-based) and 3 emissions to 1,400,960
t CO
2
e.
2
Reporting period: 1 January to 31 December.
3
Reference to GRI Sustainability Reporting Standards (see also globalreporting.org).
4
Non-significant discrepancies from 100% are possible
due to roundings.
5
Trend: the respective
trend is stable (
→
) if the variance
is less than 5%, low
decreasing / increasing (
↘
,
↗
) if it is bigger
than 5% and less
than 15% and decreasing
/ increasing
(
↓
,
↑
) if the
variance is
bigger than
15%. Trend
arrows relate
to the
year-on-year change
in the
displayed number
and not
underlying figures.
6
Refers to
energy consumed
within the
operational
boundaries of UBS Group.
7
Refers to primary energy purchased that is consumed within the operational boundaries of UBS Group (oil, gas, fuels).
8
Includes non-material share of biomass.
9
Refers
to energy purchased that is produced by converting primary
energy and consumed within the operational boundaries of UBS Group (electricity
and heating/cooling).
10
The percentages are approximates
based on best available
information.
11
Includes heating consumption, cooling consumption
and steam consumption.
12
Non-significant deviations due to summing
and rounding may occur.
13
These metrics are inputs into GRI 305-3
but not required. They are reported as contextual
information.
14
Rail and road travel: where data available.
15
Paper produced from new fibers.
FSC stands
for Forest
Stewardship Council,
ECF for Elementary
Chlorine Free
and TCF for
Totally Chlorine
Free. UBS
Group regards recycled
paper as well
as paper with
FSC/PEFC certification as
renewable and
sustainable. We disclose their share as “Share of recycled and FSC paper”. New Fiber Chlorine Bleached is considered non renewable material.
16
Water consumption includes utility water and excludes
unpolluted withdrawn water.
17
Refers to ISO 14064 and the “GHG Protocol Corporate
Standard” (ghgprotocol.org), the international standards for GHG
reporting: GHG emissions reported in metric
tons of CO2e; scope 1 accounts
for direct GHG emissions by UBS
Group; scope 2 accounts for gross
indirect GHG emissions associated with
the generation of imported /
purchased electricity (location-
based reflects grid average emission factor, market
-based reflects emission factors from contractual instruments), heat or steam; gross scope 3 accounts for other indirect GHG emissions for categories 1,
2, 3, 4, 5, 6,
7, 9. Starting from 2023
additional scope 3 GHG categories
are included and category 1 has
a significantly enlarged scope.
Scope 3 emissions for
2022 do not include these
updates. See
table 'Scope 3 subcategories'. Biogenic
emissions are not reported
separately as not material.
18
GHG savings from the purchase
of renewable electricity.
19
GHG footprint equals total gross
GHG
emissions minus GHG reductions from renewable energy.
Annual Report 2024 |
Sustainability Statement | Environmental information
46
We
continue
the
work
on
quantifying
and
providing
transparency
for
our
value
chain
emissions
related
to
our
own
operations.
The table below shows a more detailed view of the GHG
scope 3 categories for UBS Group.
Overview of GHG emissions across our scope 3 subcategories (UBS Group)
1
For the year ended
Category number
Scope 3 subcategory
Status
31.12.24
GHG emissions (tCO
2
e)
31.12.23
GHG emissions (tCO
2
e)
Category 1
Purchased goods and services
Reported
810,469
1,125,611
Category 2
Capital goods
Not separated from cat. 1
Category 3
Fuel- and energy-related activities
Reported
41,895
47,718
Category 4
Upstream transportation and distribution
Not separated from cat. 1
Category 5
Waste generated in operations
Reported
1,068
1,405
Category 6
Business travel
Reported
81,964
61,150
Category 7
Employee commuting
Reported
110,262
118,798
Category 8
Upstream leased assets
Not reported
Category 9
Downstream transportation and distribution
Not separated from cat. 1
Category 10
Processing of sold products
Not relevant
Category 11
Use of sold products
Not relevant
Category 12
End-of-life treatment of sold products
Not relevant
Category 13
Downstream leased assets
Partially included in scope 1 and 2
Category 14
Franchises
No franchises
Category 15
Investments
Refer to the ”Supporting our clients’ low-carbon
transition” section of this report for further information
1
All figures are based on the level of knowledge as of January 2025. GHG emissions for 2023 were restated to account for data enhancements,
inclusion of additional Scope 3 categories and enlarging the scope of
Scope 3 Category 1 emissions.
GHG intensity per net revenue (UBS AG)
For the year ended
1
31.12.24
Total GHG emissions (location-based) per net revenue (tCO
2
e / USD m)
28.26
Total GHG emissions (market-based) per net revenue (tCO
2
e / USD m)
25.42
1
Credit Suisse entities were outside the scope of UBS AG consolidated financial reporting for financial year 2023. Consequently,
no comparative data for GHG intensity based on net revenue is reported for UBS AG.
The total GHG emissions (location
-
and market-based) exclude scope
3, category 15. For the
calculation of the intensity
metrics for UBS AG, the total GHG emissions for UBS Group
have been used.
Total revenues for the year end 2024, as disclosed in the UBS AG income statement have been used as equivalent to net
revenues for the purpose of calculating the GHG intensity
per net revenue.
Annual Report 2024 |
Sustainability Statement | Environmental information
47
Managing the climate impact of our supply chain
Our key climate-related actions
Increased transparency and reporting of climate information by vendors
We are
tracking the
scope 1
and 2
emissions reporting
of our
GHG key
vendors. Vendors
that collectively
account for
more than 50% of our calculated scope 3, category 1, 2, 4
and 9 emissions are classified as “GHG key vendors.” On this
basis, we identified 95 GHG key vendors.
1
Overview of climate-related disclosures of our GHG key vendors (UBS
Group)
2022
2
2023
2024
GHG key vendors that disclosed
emissions and declared in CDP a stated
net-zero target
1
49% (41 / 83)
65% (62 / 95)
78% (74 / 95)
1
Shows GHG key vendors that
disclosed emissions and declared in
CDP a stated net-zero target
versus GHG key vendors
that did not disclose emissions
and / or did not declare
in CDP a stated net-zero
target.
We do not independently verify our vendors’ goals or progress toward them.
2
2022 numbers are based on 83 GHG key vendors identified at that time
and did not include Credit Suisse vendors. We have since
revised and updated the list of GHG key vendors from 83 to 95 in 2023 to include Credit Suisse vendors.
Numbers have, therefore, been tracked against
95 vendors from 2023 onward.
In 2024, 70%
(341 out of
487) completed voluntarily
climate disclosures on
the non-profit,
third-party platform
run by
CDP. Though
this
is the
same
as the
percentage
achieved in
2023 (307
out of
440),
the absolute
number of
vendors
completing their disclosures increased 11% from 307 in 2023
to 341 in 2024.
Raising awareness on environmental matters through the sustainable
procurement guide
In
2024,
we
curated
a
sustainable
procurement
guide
to support
vendors.
From
environmental
certification
to
waste
management
and
sustainability
reporting,
this
guide
provides
insights
on
how
our
vendors
can
take
significant
steps
toward
reducing
their
environmental
footprint,
promoting
ethical
and
inclusive
practices
in
their
supply
chain
and
contributing to the well-being of ecosystems.
›
Refer to our climate disclosure guideline for vendors
and our sustainable procurement guide for vendors, available
at
ubs.com/suppliers
, for more information
Reduce supply-chain-related carbon emissions
We reduced our scope 3,
category 1, 2, 4 and
9 emissions by 28% to 0.81
million metric tons of CO
2
e in 2024 from 1.13
million metric
tons of CO
2
e in 2023.
This reduction was
achieved through a
combination of: (i)
spend reduction; (ii)
carbon
reduction initiatives;
(iii) closure
of vendor
facility offshore
development centers
(ODCs); (iv)
updated emissions
factors
(including updated
multi-regional input
/ output emission
factors per industry,
updated and higher
number of supplier-
specific emission factors
used (where disclosed
and verified) and,
for cloud, activity-based
emissions data used);
and (v)
improved
data
quality
and
refinement
of
calculation
methodology.
Our
focus
is
to
reduce
our
emissions
further
by
identifying and implementing multi-year carbon reduction
initiatives.
Assess and improve high-ESG-impact vendors’ practices
Through our Responsible Supply
Chain Management (RSCM) policy,
we identify,
assess and monitor vendor practices
in
several areas,
including climate and the environment.
We identify
high-ESG-impact
vendors -
defined as
vendors providing
goods and
services that
could have
a substantial
environmental or
social impact
- when
establishing new
contracts or
renewals. These
vendors are
required to
provide
disclosures about
their management practices
along with corresponding
evidence,
which is
evaluated by
a specialist team.
Actual and potential negative impacts considered in the assessment of the vendor’s environmental practices include, but
are not limited to, the following:
–
adverse environmental impacts due to inefficient use of
resources (e.g. water and energy); and
–
hazardous
substances,
emissions,
pollutants
and
the
limited
recyclability
of
products
that
adversely
affect
people,
nature and the environment.
Should our
assessment reveal
any non-compliance
with our
policy, we
define and
agree, together
with the
vendor, on
vendor-specific improvement measures
and we
closely monitor
the implementation
progress of
these remediation actions.
Vendors
are
reassessed
after
24
months
to
ensure
that,
even
in
long-term
contracts,
our
expectations
regarding
environmental aspects are continuously being met and supervised.
In 2024, we carried out risk-based
due diligence assessments on
445 vendors of newly sourced
contracts, renewals and
ongoing
contracts
(vs.
266
UBS vendors
in
2023
and
15
Credit
Suisse
vendors).
Of
the
vendors
assessed,
33%
were
considered in need
of improving their
management practices (vs. 42%
in 2023). Specific
remediation actions were
agreed
upon and implementation progress is being closely monitored.
1
Unique vendors in line with UBS’s vendor inventory. In 2023, we have revised and
updated the list of GHG key vendors from 83 to 95 to include Credit Suisse vendors.
Annual Report 2024 |
Sustainability Statement | Environmental information
48
Supporting our climate approach: key enabling actions
Beyond the
individual actions
related to
supporting our
clients’ low-carbon
transition and
reducing the
environmental
impact of our own operations
and supply chain as described
in the above sections, we
have identified five key enabling
actions as listed
below to support
the implementation of
our climate approach
and “enable” the
implementation of more
specific targets and actions.
Governance and accountabilities (1)
Our sustainability
-
and
climate-related
activities
are
overseen
at
the
highest
level
of
our
organization,
and
we
have
a
clearly defined Group-wide sustainability governance in place,
including a dedicated climate program.
›
Refer to “Governance” in this section for
more information about our sustainability governance
Industry, government and public sector engagement (2)
We actively participate in political discussions to share
our expertise on proposed regulatory and supervisory changes and
engage
in
trade
associations’
exchanges
relating
to
sustainability
and
climate
(e.g.
via
the
International
Institute
of
Finance, the
Association for
Financial Markets
in Europe
and the
Swiss Bankers
Association). In
Switzerland, where
we
are headquartered, we
participated in the
consultation for a
new Swiss Financial
Market Supervisory Authority
(FINMA)
circular on
nature-related financial
risks in 2024,
where we
expressed our
support for
an approach
that is aligned
with
the Basel Committee on Banking Supervision (BCBS) Principles for the effective management and supervision of climate-
related financial
risks. Furthermore,
we launched
the Swiss
Climate Scores,
as we believe
they are
a key instrument
for
further increasing transparency
on the climate
alignment of financial
products. On a
regional basis, we
engage with policy
makers in
the EU,
the UK,
the Americas
and key
Asia Pacific
jurisdictions. In
particular, we
have participated
in several
industry association efforts in the EU regarding consultations
issued by prudential regulators (e.g. the European
Banking
Authority draft guidelines for the identification and management of ESG risks under the Capital Requirements Directive).
›
Refer to “Strategy” in this section for details
about our partnerships and engagement activities
Training and culture (3)
Educating
our
workforce
on
sustainability
and
sustainable
finance
is
an
important
part
of
ensuring
we
meet
our
sustainability
and
climate
ambitions.
In
2024,
we
continued
to
coordinate
the
delivery
of
sustainability
training
and
awareness activities across UBS through a dedicated sustainability education
workstream, with the number of headcount
instances of
specialized and
awareness training
totaling 430,405.
For example,
the Sustainability
and climate
risk unit
trained relevant staff on sustainability and climate risks along with
emerging risks such as greenwashing.
Elsewhere, in 2024, we provided a variety of climate-related
trainings on a Group-wide basis. These included:
–
a series of information
sessions following the publication of
our UBS Sustainability Report 2023
to raise awareness and
understanding of our own progress in relation to our climate
objectives; and
–
climate-related training as part of our all-staff Global
Learning Week initiative, including webinars focused on net-zero
fundamentals, nature, greenwashing and impact accounting.
We expect
sustainability training
and education
to become
an increasing
focus for
regulators in
the coming
years. We
keep abreast
of this
changing landscape
through regular
updates with
our regulatory
monitoring teams
and continue
developing climate-
and net-zero-specific training for employees and the Board
of Directors.
Data and analytics (4)
We implemented various data and analytics solutions to
better service our clients and operations.
As part of the efforts to integrate Credit Suisse, we needed to develop a foundational toolset for calculating, monitoring
and reporting the
combined firms’
climate-related metrics
covering financing
corporate loans
and facilitated
emissions.
In
2023,
we
successfully
completed
the
related
building
activity
and
met
all
the
quality
assurance
criteria
set
by
our
internal control functions.
In 2024, we worked on defining a more strategic and scalable toolset. Guided by our technology and ESG data strategy,
we developed a fully Cloud-based toolset, which
will be operational in 2025. The new toolset
will enable us to enhance
and more
frequently calculate,
monitor and
report our
climate-related metrics.
This will
allow our
business divisions
to
make
more
informed
decisions
on
their
decarbonization
pathways
and
transition
financing
activities,
and
facilitate
tracking of progress against our lending sector decarbonization
targets.
The
new
toolset
will also
enable
us
to
more
effectively
implement
changes
related
to
new
climate-related
standards,
methodologies and metrics.
Company Transition Assessment Scorecard (5)
In 2024, we
introduced the Company
Transition Assessment
Scorecard (CTAS) to
evaluate how advanced
a company is
on
its
path
to
decarbonization.
The
CTAS
was
designed
with
multiple
future
purposes
in
mind,
including
managing
climate transition risks, supporting clients' climate transition efforts through engagement
and product development and
business planning.
Annual Report 2024 |
Sustainability Statement | Environmental information
49
The CTAS categorizes companies into
one of eight climate transition
readiness categories using a
rules-based approach.
This
approach
is
based
on
sector-agnostic
criteria
covering
emissions
disclosure,
decarbonization
commitments
and
targets, decarbonization
plans, and the actual carbon performance of the company.
Initially, and
in response
to regulatory
requirements, the
CTAS is
used as
an input
for our
Climate Risk
Rating
Models
(CRRM), in
particular the
transition risk rating
model. This model
assigns a
climate transition risk
rating at
the counterparty
level, which is then used
across various processes across:
(i) risk identification and
measurement; (ii) monitoring and
risk
appetite setting;
(iii) risk
management
and control;
and (iv)
risk reporting
and disclosure.
Although a
company’s CTAS
score, when available,
serves as an
input into the
CCRM and the
credit selection process,
it is not
used as the
sole criterion
for credit application decisions.
Companies are categorized by utilizing publicly available data from external third-party sources, which means it
is limited
to public companies
providing relevant
disclosures. The
CTAS will be
annually reviewed
and updated.
The scope
of the
CTAS may be
broadened in
the future
by incorporating
additional databases
or making
enhancements that
enable the
inclusion of companies lacking public data.
Overview
Module
Factor
Unaware
Aware
Strategic 1 –
Committed to
aligning
Strategic 2 –
Aligning
toward net
zero
Strategic 3 –
Aligned
targets and
plans
Aligned to net
zero
Achieving net
zero
Climate
solution
Emissions
disclosure
Disclosure of GHG
emissions
✓
✓
✓
✓
✓
✓
✓
Commitments
and targets
Long-term net-zero
commitment
✓
✓
✓
✓
✓
Medium- / short-term
net-zero targets
✓
✓
✓
✓
Net-zero commitment
recognized by third
party
✓
✓
✓
Interim targets
validated by third party
✓
✓
✓
Decarbonization
plan
High-level plan
✓
✓
✓
✓
Credible plan
✓
✓
✓
Carbon
performance
Carbon performance in
line with pathway
✓
✓
Carbon performance at
(or close to) net zero
✓
Note that the categories
from “Unaware” to
“Achieving
net zero” reflect a
company’s progress
toward reducing its
negative impact on
the
environment. On the other
hand, the category
“Climate solution” is
an overarching category
that goes beyond
this and includes
companies
enabling the transition through their business model by generating
green revenues and aligning their capital expenditures accordingly.
›
Refer to “Managing sustainability and climate risks”
in this section for more information about how we
manage financial and
non-financial climate transition risk
Annual Report 2024 |
Sustainability Statement | Social information
50
Social information
People and culture make the difference
Strategy as it relates to people management
UBS AG’s
organization regulations
provide principles,
organizational structures
and control
over subsidiaries,
including
control over
UBS AG,
to be
held at
the Group
level by
UBS Group
AG. Such
“group steering”
is intended
to ensure
a
harmonized
strategic
direction
for
the
Group
in
line
with
our
corporate
governance
framework,
which
sets
out
the
primary governing guidelines for UBS Group AG and its subsidiaries. Furthermore, the framework provides for clear lines
of responsibility to foster a coherent and effective corporate and compliance
culture for the Group. Specifically, the Head
Group Human
Resources and Corporate
Services (GHRCS) is
responsible for defining
and executing
an HR strategy
aligned
with the firm’s objectives and for positioning the Group
as an employer of choice.
Regarding
workforce
data
in
this
chapter,
we
refer
to
consolidated
UBS
Group
data
unless
otherwise
specified.
This
includes employees from UBS
AG consolidated and
from UBS Business Solutions
AG, as both
entities ultimately align with
UBS Group AG, which,
as the listed parent company of the Group, directly
or indirectly controls all subsidiaries, including
UBS AG consolidated. The
setup of UBS Business Solutions
AG is specified by
“too big to fail”
regulatory requirements;
however, all employees
of UBS AG
and UBS Business
Solutions AG employed
in the same
jurisdiction are subject
to the
same employment conditions and employment requirements.
Engagement with our employees
Employee engagement
Our employees
want to
be heard
and to be
involved in
shaping their
daily experience.
As such, we
offer opportunities
throughout
the
year
for
employees
to
connect
with
management
and
provide
feedback
on
topics
such
as
strategic
alignment, employee
engagement, well-being,
our work
environment and
line manager
effectiveness. As
an example,
initiatives such as our regular “Ask the CEO” event
give employees the chance to learn about (and ask questions
about)
topics such as strategy and direction.
Our multi-faceted employee listening strategy is adaptable and captures
feedback in a timely way.
We conduct employee
lifecycle surveys,
short “pulse”
surveys to
understand what
is top
of employees’
minds and
in-depth analyses,
such as
virtual focus group sessions. In 2024, those conversations allowed participants from every
business division and function
to share
their perspectives and
insights on the
integration and
provided employee sentiment
data points
to track progress.
Group-wide surveys measure cultural indicators, such as line
manager effectiveness and employee engagement.
The
UBS
European
Employee
Forum
and
the
Credit
Suisse
European
Works
Council,
both
of
which
have
formal
agreements in place, together
represent all countries
in the European Union
with a UBS
Group presence. They consider
topics related to our performance and operations.
Local employee representative bodies discuss topics such
as workplace
conditions, benefits and reorganizations.
Employee concerns and whistleblowing
There are many ways to raise concerns at UBS. If an employee sees or suspects any wrongdoing, they are encouraged to
speak
up.
Raising
concerns
with
their
line
manager
is
the
most
common
option;
however,
if
the
individual
is
not
comfortable doing
so, dedicated
whistleblowing channels
ensure they
are able
to raise
concerns in
a safe,
confidential
and, if preferred, anonymous way.
All concerns raised are taken seriously and investigated. Clear processes protect individuals
from retaliation as a result of
reporting a concern pursuant to the Whistleblowing Protection
for Employees Policy.
All employees
are required
to complete
mandatory “Speak
Up” training
every two
years, with
new joiners
required to
complete
it
upon
onboarding.
This
training
aligns
with
the
Whistleblowing
Protection
for
Employees
Policy,
raising
awareness
of
available
reporting
channels.
Throughout
the
year,
there
are
activities
such
as
communication
from
the
Group
Executive
Board
(the
GEB),
newsletters,
whistleblowing
campaigns
and
regular
employee
surveys,
aimed
at
encouraging employees to speak
up and raising awareness
regarding the various whistleblower
reporting channels that
can be used to raise concerns.
›
Refer to “Business conduct and corporate culture” in the “Sustainability
statement” section of this report for more information
about the UBS whistleblowing process available to
employees
Annual Report 2024 |
Sustainability Statement | Social information
51
Workforce metrics
Characteristics of our workforce
1,2
As of 31
December 2024,
UBS Group
had 108,648 employees
as full-time equivalents
(FTEs) (2023: 112,842)
and UBS
AG consolidated
had 68,982
(2023: 47,590)
FTEs. For
the most
accurate
view of
our global
workforce,
HR reporting
considers one person (working
full time or part
time) as one headcount.
As of the end
of 2024, UBS Group
had a total
of 110,323
headcount (HC) (2023:
115,038 employees).
UBS AG
consolidated had 69,891
HC (2023:
48,320 employees).
In addition,
UBS Group
had a
total of
20,335 contractors,
consultants and
outsourcers
employed at
the end
of 2024
(2023: 25,619). For UBS AG
consolidated, it was a
total of 9,107 contractors, consultants and
outsourcers (2023: 6,335).
1
Gender data is self-reported in HR systems and does not include those who have chosen not to disclose as a male or female employee.
2
Data changes from 2023 to 2024 reflect the integration of Credit Suisse into UBS AG consolidated.
Employees: employment term and region
UBS Group
31.12.24
31.12.23
Number
%
Number
%
Americas
Permanent
25,650
100%
26,905
100%
Limited term
1
0
0.0%
0
0.0%
Total
25,650
100%
26,905
100%
Asia Pacific
Permanent
26,389
99.8%
27,957
99.8%
Limited term
1
42
0.2%
49
0.2%
Total
26,431
100%
28,006
100%
EMEA
Permanent
22,478
100%
23,378
100%
Limited term
1
1
0.0%
2
0.0%
Total
22,479
100%
23,380
100%
Switzerland
Permanent
34,246
95.8%
35,271
96.0%
Limited term
1
1,517
4.2%
1,476
4.0%
Total
35,763
100%
36,747
100%
Grand total
110,323
115,038
1
Limited term employment is an employment relationship defined by the employee's contract with UBS being limited in duration. Most of these
individuals are apprentices in Switzerland.
Employees: employment term and region
UBS AG
31.12.24
31.12.23
Number
%
Number
%
Americas
Permanent
25,643
100%
21,802
100%
Limited term
1
0
0.0%
0
0.0%
Total
25,643
100%
21,802
100%
Asia Pacific
Permanent
11,223
99.6%
8,241
99.4%
Limited term
1
41
0.4%
49
0.6%
Total
11,264
100%
8,290
100%
EMEA
Permanent
8,294
100%
6,184
100%
Limited term
1
1
0.0%
2
0.0%
Total
8,295
100%
6,186
100%
Switzerland
Permanent
23,172
93.9%
11,004
91.4%
Limited term
1
1,517
6.1%
1,038
8.6%
Total
24,689
100%
12,042
100%
Grand total
69,891
48,320
1
Limited term employment is an employment relationship defined by the employee's contract with UBS being limited in duration. Most of these
individuals are apprentices in Switzerland.
Annual Report 2024 |
Sustainability Statement | Social information
52
Employee representation
UBS respects and complies
with all European Union, national
and local labor laws. Our
employee representation
groups
(UBS European Employee Forum and European Works Council, Credit
Suisse Group AG) generally meet monthly,
as well
as
on
an
ad-hoc
basis,
and
collectively
represent
52.0%
(2023:
51.5%)
of
our
global
workforce
for
UBS
Group
as
compared
with 46.1%
(2023:
36.8%)
for
UBS
AG consolidated.
In addition,
we
have
local works
councils
to
discuss
topics such as benefits, workplace conditions and reorganizations.
No country within the European Economic Area (EEA)
where UBS
is present
meets the
threshold of
significant employment,
defined as
at least
50 employees
by headcount,
representing at least 10% of its total
number of employees.
Where
applicable,
our
operations
are
subject
to
collective
bargaining
agreements
(CBAs).
No
country
within
the
EEA
where UBS is present
meets the threshold of significant
employment. We therefore disclose the global
percentage of UBS
AG consolidated employees covered by one or more CBAs:
4.6% (2023: 5.1%).
Workforce inclusion
We
are
committed
to
being
a
diverse
and
inclusive
workplace
based
on
meritocracy,
and
aim
to
build
a
culture
of
belonging where all employees are recognized and valued, and where everyone can
be successful and thrive. At
UBS, we
aim to hire and retain
the best people for the right
roles, to deliver for our
clients, our businesses, our shareholders
and
the communities we serve. In order
to achieve this, we have a diverse
workforce with a variety of
skills, experiences and
backgrounds that reflect
the diversity of our clients
to serve them at
our best. It is also critically
important to us that we
respect an environment
where all our
employees are treated
fairly and able to
reach their potential.
In every location
in
which we operate, we continue to act in accordance with the
current law and regulations and will monitor any
changes
to ensure we remain consistent.
Transparency is the foundation framework through which we enable leaders to deliver the strategy, and everyone is held
responsible.
We
leverage
various
communications
channels
and
line
manager
objectives
to
drive
awareness,
benchmarking,
thought
leadership
and
feedback
to
inform
the
strategy,
and
data
monitoring
with
respective
characteristics, including management dashboards and toolkits,
to support our entire workforce.
Our workforce
inclusion strategy
is reinforced
by our
public commitments
to support
all employees,
including, but
not
limited to, the UN Women’s Empowerment Principles,
the Valuable 500 and the Race
at Work Charter (UK). Of particular
note
is
our
commitment
to
the
Valuable
500,
a
global
business
collective
of
CEOs
and
their
companies
focused
on
advancing
disability
inclusion
that
we
have
partnered
with
since
2021.
Disability-focused
initiatives
in
2024
included
making
improvements
to our
recruitment
processes
for
candidates,
sponsoring
disability-focused
employee
networks,
enhancing training and
awareness efforts for
all employees, and
continuing to increase
physical and digital
accessibility
for employees and clients alike.
For UBS Group, females represented 26.7% (2023: 37.5%) of members of the GEB and 33.8% (2023: 30.3%) of senior
managers who reported
directly to a
member of the
GEB. 41.7% (2023:
33.3%) of members
of the BoD
were female.
For UBS AG
consolidated, females
represented 21.4% (2023: 35.7%)
of members of the
Executive Board (EB)
and 32.0%
(2023: 26.9%) of senior
managers who reported directly
to a member of the
EB. 41.7%
(2023: 33.3%) of members
of
the BoD were female.
For UBS
Group, female
employees at
Director level
and above
represented 29.8%
(2023: 29.5%)
compared to
30.0%
(2023: 28.4%) for UBS AG consolidated.
Fair and equitable pay
Fair and consistent
pay practices are designed
to ensure that employees
are appropriately rewarded for their
contribution.
We pay for performance, and we take pay equity
seriously. We have embedded clear commitments in our compensation
policies and practices
and apply the
same fair pay
standards across
all locations.
We annually
review our
approach and
policies, in line with established equal pay methodologies, to
support our continuous improvement.
The pay differential
measures pay equity,
comparing pay
for similar roles,
management responsibility,
performance and
geography.
We
regularly conduct
internal
reviews
of our
HR practices.
Our statistical
analyses
show
a
pay
differential
between male and female employees in similar roles
across our major locations of less than 1%. If we
find any gaps not
explained by business
or by appropriate
employee factors such
as role, responsibility,
experience, performance or location,
we look at the root causes and address them.
We also aim to ensure that all
employees are paid at least a
living wage. We regularly assess employees
’
salaries against
local living wages,
using benchmarks
defined by the
Fair Wage Network.
Our analysis in
2024 showed that
employees’
salaries were at or above the respective benchmarks.
Talent management and development
Our talent
management approach
includes structured
talent and
succession reviews
to help
us identify
future
leaders,
ensure
business
continuity
and
proactively
manage
employee
development.
Group-wide
talent
programs
that
help
employees build
skills and
understand key issues
are supplemented by
specific offerings in
the business
divisions, functions
and regions, including ones aimed at increasing capabilities and career opportunities
for a diverse audience ranging from
senior leaders to emerging junior talent.
Annual Report 2024 |
Sustainability Statement | Social information
53
Internal training is delivered via
our UBS University platform and is designed
to ensure that our
people have the necessary
skills
and
information
to
appropriately
perform
their
jobs,
to
reduce
risk
and
to
prevent
incidents,
manual
errors,
inappropriate
behavior
and
other
negative
impacts.
We
also
take
care
to
balance
the
needs
of
our
business
with
employees’ needs, to mitigate any potential negative impacts
on our people.
Our Employment of Staff within UBS Policy
specifies that all employees are required to
meet initial and ongoing training
and competency requirements
as appropriate for the
activities they undertake
on behalf of UBS. Further
more, UBS may
require employees to complete mandatory and business-required training,
in line with our mandatory learning policy.
In
2024,
permanent
UBS
Group
employees
completed
an
average
of
24.8
training
hours
per
employee,
including
mandatory training. Within that, female employees completed an average of 24.8 hours of training and male employees
completed an average of 24.8 hours.
In
2024,
permanent
UBS
AG
consolidated
employees
completed
an
average
of
25.9
training
hours
per
employee,
including mandatory training.
Within that, female
employees completed an
average of 26.1 hours
of training and male
employees completed an average of 25.8 hours.
Training by employee category
UBS Group
UBS AG
Average training hours
31.12.24
31.12.24
Director and above
25.0
25.2
Officer
23.8
24.5
Employee
26.2
29.2
Total average training hours
24.8
25.9
Performance management
Our performance management approach
reflects our strategy
and supports our high-performance
culture. We consider
both
performance
and
behavior-related
objectives
because
we
value
what
an
employee
accomplishes
and
how
our
Behaviors (accountability with integrity,
collaboration and innovation) are demonstrated.
Employee support, including benefits
We are
committed to
being a
responsible employer
and to
caring for
our employees.
That is
one reason
why we
offer
flexible working arrangements and promote employee health and well-being. Social, physical, mental and financial well-
being elements are woven into our HR policies and practices. For example, our support for employee well-being includes
a range of programs, benefits and
workplace resources, along with a specialized eLearning curriculum
to help employees
better manage their health, foster well-being and strengthen
their resilience. A dedicated well-being portal
consolidates
our global offering and promotes regional
networks, initiatives and resources.
In
2024,
employees
across
the
firm
participated
in
virtual
fitness
challenges,
mental
health
initiatives,
volunteering
activities and financial education events,
and everyone had access to
a specialized mindfulness app. We
also progressed
with our #WorkingWithCancer commitment through a
mentorship program,
informational sessions and coffee corners.
All our employees have access to competitive benefits, such as healthcare, well-being and retirement benefits,
insurance
(such
as
life
and
disability
insurance)
and
flexible
leave
policies,
where
applicable.
All
employees
are
also
covered
by
policies
to
protect
against
employment
injury
or
disability.
Parental
leave,
including
adoption
leave,
is
available
to
all
employees, as indicated in local HR policies, and
all locations offer family-related leave.
Benefits are set in the context of
local market practice
and are regularly
reviewed for competitiveness.
Employee assistance programs
and internal teams
help employees and their family members manage personal or work-related
issues that may affect their well-being.
Should
business
or organizational
circumstances
arise
that
lead
to employee
redundancy,
we
offer
redeployment
and
outplacement
services
with
a
focus
on
redeployment
within
UBS.
We
believe
these
measures
help
skilled
employees
affected by
restructuring to
favorably position
themselves on
the labor
market. Employees
considering retirement
also
have access to various resources to help prepare them for
this transition.
Annual Report 2024 |
Sustainability Statement | Social information
54
Respecting human rights
UBS is
committed to
respecting and
promoting human
rights, as
set out
in the
UN Guiding
Principles on
Business and
Human Rights.
When assessing
the firm’s
potential
human rights
impacts,
we focus
on three
key stakeholder
groups
(employees, clients and vendors), as well as society at large.
›
Refer to “General information” in this section of
the report for more information about our interactions with
stakeholders,
including civil society groups
Employees
:
UBS is committed to
respecting human rights
standards through its human
resources policies and practices,
and to meeting the
obligations that a
responsible company is required
to comply with.
These are reviewed
on a regular
basis in an effort to make sure we continue to respect human
and labor rights.
›
Refer to “Social information” in this section of
the report for more information about UBS’s human resources policies and
practices
Clients
:
UBS aims to provide
its clients with innovative
investment solutions on
themes related to
human rights, such as
health, education, gender and / or equality.
In addition, we take human rights risks into
account in solutions that address
a broader range of
sustainability issues. We
identify and manage
actual and potential adverse
impacts on human rights
to which our
clients’ assets
and our own
assets are exposed,
most notably through
our sustainability (including
human
rights) and
sustainability and
climate risk
policy framework.
Our clients
also have
access to
solutions that
help them
to
realize their philanthropy goals, including those related to human
rights.
›
Refer to “Strategy”
in this section of the report for more information about our
sustainability and impact strategy, key aspirations
and progress
›
Refer to the “Sustainability and climate risk policy
framework”,
available at
ubs.com/sustainability-reporting
, for more
information
Vendors
:
UBS is committed to reducing the negative societal impacts of the goods and services it purchases. That is why,
when we
are establishing
new contracts
or renewals,
we identify
high-impact vendors
based on
whether they
provide
goods and services that either have a
substantial social impact or are sourced
in markets with potentially high social risks.
Vendors that
do not
meet the
minimum applicable standard,
because they are
associated with actual
and potential
human
rights risks, have to agree to and comply with a remediation
plan before signing a contract with us.
›
Refer to the “UBS Supplier Code of Conduct”,
available at
ubs.com/sustainability-reporting,
for more information
UBS’s human-rights-related
commitments and
actions are
set out
in the
UBS Human
Rights Statement.
The statement
shows the structures (governance and policies) and
mechanisms (procedures and processes) UBS has in
place to support
its
commitments.
UBS
also
publishes
a
Modern
Slavery
and
Human
Trafficking
Statement
pursuant
to
the
UK
2015
Modern Slavery Act and to the Australian 2018 Modern
Slavery Act.
›
Refer to the “UBS Human Rights Statement”
and the “UBS Modern Slavery and Human
Trafficking Statement,” available at
ubs.com/sustainability-reporting
, for more information
Cyber and information security
At UBS,
the
security
of our
clients’
assets
and
data
is one
of our
top
priorities.
As cyber
threats
to systems
and
data
increase in volume and
sophistication, we continually
focus resources and investments
on critical cyber and
information
security capabilities, with specialist teams working to safeguard
our clients’ assets and data.
Our principles and policies guide
how we develop and deploy
technological solutions. The cyber and information security
(CIS) program is
designed to identify,
prevent, detect and
respond to CIS
events, with the
goal of maintaining
the integrity
and availability of our technology infrastructure. Appropriate
technical and organizational measures are implemented
to
ensure that data remains
confidential and protected
against accidental, unauthorized
or unlawful destruction, and
loss,
alteration, disclosure or access.
Additionally, UBS has
a Group-wide incident
response process designed
to detect, investigate,
and respond
to information
security threats and incidents
that have a potential
impact on UBS systems
and data. This process
enables any UBS person
to report
incidents and
data breaches,
and it
also includes
processes such
as notifying
impacted clients
about relevant
incidents, in line with all applicable laws and regulations.
In 2024,
we have
enhanced the
CIS awareness
and education
program for
all UBS
employees and
external workforce,
including an increase in staff testing, refreshed mandatory training, including for highly privileged users, and a firm-wide
Cyber Awareness Month campaign.
Helping clients stay cybersafe
UBS
invests
in
critical
cyber
and
information
security
capabilities
to
protect
clients'
assets
and
data
and
provides
cybersafety tips through its website and mobile applications.
›
Refer to Cyber Security at UBS for more information,
available at
ubs.com/global/en/our-firm/cybersafe.html
and to
Cybersecurity, information security and data privacy at UBS, available at
ubs.com/global/en/sustainability-impact/sustainability-
reporting.html
Annual Report 2024 |
Sustainability Statement | Managing sustainability
and climate risk
55
Managing sustainability and climate risks
Introduction
Managing sustainability and climate risks is a
key component of our corporate responsibility. We define
sustainability and
climate risk as
the risk that
we negatively impact
on, or are
impacted by, climate
change, natural
capital, human
rights
and
other
environmental
and
social
matters.
Sustainability
and
climate
risks
may
manifest
as
credit,
market,
liquidity,
business or non-financial risks for UBS, resulting in potential
adverse financial, liability or reputational impacts.
Group Risk Control (GRC) is
responsible for our firm-wide sustainability and
climate risk framework and the
management
of
exposure
to
sustainability
and
climate
(financial)
risks
on
an
ongoing
basis
as
a
second
line
of
defense.
Group
Compliance, Regulatory & Governance (GCRG) monitors the adequacy of our control environment for
non-financial risks
(NFR), applying
independent
control and
oversight.
We
manage
sustainability
and climate
risk within
a
dedicated
risk
management framework. In 2024, the UBS Group (including
Credit Suisse) was managed under the same framework.
Our sustainability
and climate
risk framework
continues to
evolve through
our multi-year
initiative focused
on meeting
regulatory requirements and enhancing core processes, such
as reporting and disclosures.
Sustainability and climate risk management framework
Our firm-wide sustainability and climate risk
management framework and related policies, standards
and guidelines form
the basis of our
management practices and
control principles. They
enable us to identify
and manage potential
adverse
impacts on
the climate,
the environment
and human
rights, as
well as
related risks
affecting us
and our
clients, while
supporting the transition to a low-carbon economy.
Overseen by senior management, the framework applies to
the balance sheet, our own operations
and our supply chain.
It consists
of four
different phases: (i)
risk identification and
measurement; (ii) monitoring and
risk appetite setting;
(iii) risk
management and control; and (iv) risk reporting and
disclosure.
›
Refer to the “Sustainability and climate risk
policy framework”, available at
ubs.com/sustainability-reporting
Annual Report 2024 |
Sustainability Statement | Managing sustainability
and climate risk
56
The Group Chief Risk Officer is responsible for the development of the sustainability and climate risk framework and risk
appetite, along with its integration into existing Group frameworks. The Chief Risk Officer for Sustainability supports the
Group
Executive
Board
by
providing
leadership
on
sustainability
in
collaboration
with
business
divisions
and
Group
functions and is supported by the sustainability and climate risk unit. In addition, the Risk Committee
and the Corporate
Culture and
Responsibility
Committee
of the
Board of
Directors
jointly monitor
the
progress of
our efforts
to address
sustainability and climate risk.
Our
multi-year
sustainability
and
climate
risk
initiative
(the
SCR
Initiative),
launched
in
2020
by
the
sustainability
and
climate risk
unit, continues
to build
capacity through
expertise, collaboration,
technology and
data. This
initiative was
created
to
integrate
sustainability
and
climate
risk
considerations
into
our
traditional
financial
and
non-financial
risk
management frameworks,
which address these
traditional risks across our
business divisions and legal
entities, in an ever-
changing regulatory environment.
In 2024,
the SCR
Initiative further
advanced its
efforts toward
the goal
of fully
integrating qualitative
and quantitative
sustainability and climate
risk considerations into
the firm’s traditional
risk management and
stress-testing frameworks.
Developments
in
2024
included
introducing
climate-driven
risk
analytics
into
the
credit
decision-making
process
for
selected
portfolios,
introducing
climate-driven
quantitative
risk
appetite
where
mandated,
developing
climate
risk-
adjusted stress models
and scenario analysis
capabilities, expanding climate risk
monitoring internally, and
further refining
processes, governance and methodologies to drive forward more comprehensive sustainability and climate risk reporting
and
disclosures.
Furthermore,
to
monitor
and
control
the
utilization
of
the
divisional
contributions
toward
the
2030
corporate lending
sector decarbonization targets,
a decarbonization control
framework has
been established
with defined
thresholds per sector and business division
and at a Group level.
These thresholds are defined annually and
the utilization
against the agreed thresholds is monitored on a quarterly
basis.
Sustainability and climate
risk management activities
conducted in 2024
are described below,
across the four
phases of
the sustainability and climate risk framework.
Annual Report 2024 |
Sustainability Statement | Managing sustainability
and climate risk
57
Risk identification and measurement
We
assess
the
materiality
of
our
sustainability-
and
climate-driven
risks
and
impacts
on
an
annual
basis.
This
is
underpinned by an assessment of
how key risk drivers may
impact us through financial and non-financial
risks (e.g. credit
losses or reputational incidences resulting
in lost revenues) and
by assessing the proximity of
our activities to the
potential
negative impact on the environment (including climate)
and human rights.
We aim to identify sustainability and
climate risks at divisional and cross-divisional
levels, both through the sustainability
and
climate
risk
materiality
assessment
mentioned
above
and,
increasingly,
by
integrating
them
into
the
firm-wide
traditional risk
identification and measurement processes.
›
Refer to “Environmental information”
in this section for details about our climate-related materiality assessment
and the
underlying methodology
Our risk identification
methodologies collectively
define our focus
areas and key
risk drivers. The results
of these efforts
contribute to our sustainability and climate risk management
strategy by:
–
identifying concentrations
of climate-sensitive
exposure that
may make
us vulnerable
to financial
and non-financial
risks, facilitating resource prioritization to enhance risk quantification
and subsequent management actions; and
–
supporting the implementation
of a
client-centric business strategy, in
which we support
clients with their
sustainability
transition and identify clients who can benefit from sustainability-focused
UBS products and services.
The outputs
of the
above process
supports senior
management in
taking informed
decisions about
sustainability-
and
climate-related risks and provides stakeholders with key information
through our external disclosures.
Transition risk
Climate-driven transition risks, which
arise from the efforts
to mitigate the effects
of climate change, may
contribute to
a
structural
change
across
economies
and
consequently
affect
banks and
the
stability
of the
broader
financial
sector.
These risks extend to the value of investments and may also affect
the value of collateral (e.g. real estate).
In
2024,
UBS
developed
a
transition
risk
rating
model
(TR
RM),
aligned
with
the
transition
risk
heatmap
(TR
H)
and
designed to
provide a
company-level rating
of transition
risk, where
input data
is available
The TR
RM mainly
relies on
two inputs:
(i) the
output of
the transition
risk heatmap
(TR H)
and (ii)
the Company
Transition Assessment
Scorecard
(CTAS), an
internal UBS
tool that
systematically categorizes listed
companies based on
publicly available
data from
external
third-party data sources into climate transition readiness categories. Whenever CTAS does not provide an assessment for
a company, the model falls back to an existing transition risk heatmap
(TR H).
The climate transition
risk profile chart
shows that, at
the end of
2024, the exposure
of the UBS
Group to climate-sensitive
sectors and
related business
activities has
decreased
due to
accelerated winddown
of Non-core
and Legacy
corporate
exposures.
Climate-driven
transition-risk
sensitive
exposure
accounted
for
17.1%
of
the
total
gross
lending exposure,
down from 19.2% in 2023. Key sectors contributing to sensitive exposure continues to be same as 2023 (i.e. real estate,
industrials
and
transportation).
Compared
to
last
year,
our
sensitive
exposure
to
Services
and
Technology
sector
has
increased, in
line with
a methodology
change where
certain business
activities that
were previously
rated non-sensitive
are now rated sensitive due to increased reliance on
artificial intelligence (AI) and data center operations requiring higher
use of power.
Annual Report 2024 |
Sustainability Statement | Managing sustainability
and climate risk
58
Annual Report 2024 |
Sustainability Statement | Managing sustainability
and climate risk
59
Physical risk
Climate-driven physical risks arise from acute
hazards, which are increasing in
severity and frequency, and chronic climate
risks arise
from an
incrementally changing
climate. Climate
-driven physical
risks may
contribute to
a structural
change
across economies
and consequently
affect banks
and the
stability of
the broader
financial sector.
These risks
extend to
the value of investments and may also affect the value of
collateral (e.g. real estate).
In 2024, UBS developed a physical risk rating model (PR RM), aligned with the physical risk heatmap model
(PR HM). The
PR RM is designed
to provide a company-level
indication of physical
risk while both models
are designed to provide
the
UBS Group exposure to
climate-driven physical risks. The
PR RM and
PR HM measure how
four acute physical risk
hazards
(wildfires, heatwave, floods and tropical cyclones) may drive
physical risk of the companies.
The climate physical risk profile chart shows that,
at the end of 2024, the exposure of
the UBS Group to climate-sensitive
sectors and
related business
activities has
decreased
due to
accelerated winddown
of Non-core
and Legacy
corporate
exposures. Climate-driven physical-risk sensitive exposure accounted for 9.8% of the total gross lending exposure, down
from 11.7%
in 2023.
Geographically,
the majority
of the
sensitive exposure
is from
the Americas
region, followed
by
Switzerland and
other geographical
locations. Most
of the
year-on-year reduction
in sensitive
exposure is
due to
Non-
core and Legacy
exposure winddown
in the Americas
region. At Group
level, most of
the climate-sensitive
physical risk
exposure is located within
countries that have a
relatively high adaptive capacity
to manage physical risk
hazards resulting
in a moderately low risk profile at regional level.
Annual Report 2024 |
Sustainability Statement | Managing sustainability
and climate risk
60
Annual Report 2024 |
Sustainability Statement | Managing sustainability
and climate risk
61
Climate scenario analysis
We use scenario-based approaches to
assess our exposure to physical
and transition risks stemming from
climate change.
We have
introduced several in-house
assessments facilitated by
industry collaborations to
tailor approaches for
addressing
methodological and data
challenges. We
have utilized dedicated
risk models incorporating
systematic and idiosyncratic
effects to carry out stress testing exercises covering short-,
medium- and long-term horizons.
The work
performed includes
regulatory scenario
analysis and
stress test
exercises such
as the
Bank of
England’s (BoE)
2021 Climate Biennial Exploratory Scenario (CBES), the 2022 Climate Risk Stress Test
(CST) of the European Central Bank
(the ECB),
which assesses
banks’ preparedness
for dealing
with financial
and economic
shocks stemming
from climate
risk; and
the 2024
Swiss Financial
Market
Supervisory Authority
(FINMA) /
Swiss National
Bank (SNB)
climate
scenario
analysis exercise.
These exercises
enabled the
identification of
financial risks
from climate
change and
made it
possible
for UBS to assess management
actions in response to
different scenario results
and perform counterparty-level
analysis.
While these exercises showed mild losses and low exposure to climate risk for the entities within scope, given the limited
impact to
the macroeconomic financial
environment, the analysis
allowed UBS to
enhance its climate
risk scenario analysis
and stress testing, further developing our capabilities for assessing
risks and vulnerabilities from climate change.
In 2024,
we also
advanced our
capabilities surrounding
internal climate
risk scenario
analysis and
stress testing
for the
UBS Group. We refined and expanded our internal climate risk
scenarios with a focus on both transition and physical risk
projections across a 30-year time frame. In
addition, we developed additional climate risk methodologies
to enhance and
broaden portfolio coverage.
Over the last few
years, we have also
leveraged industry-wide initiatives,
such as the Paris
Agreement Capital Transition
Assessment (PACTA) exercise launched by the Swiss Federal Office
for the Environment (FOEN) in 2020, 2022 and 2024.
Through
this
exercise,
we
assessed
the
climate
alignment
of
our
listed
investments
(including
equities
and
bonds),
mortgages
and
direct
real
estate
portfolios.
The
assessment
enabled
us
to
compare
our
results
with
the
aggregated
performance of all participating banks’ portfolios, showing the progress
made over time and the efforts still needed.
Annual Report 2024 |
Sustainability Statement | Managing sustainability
and climate risk
62
Monitoring and risk appetite setting
Our sustainability and climate risk
policy framework defines the qualitative
and quantitative risk appetite for
sustainability
and climate risk and is subject to periodic updates and enhancements.
As part of the
sustainability and climate risk monitoring
process, we have developed methodologies and
metrics to assess
our continued exposure to carbon-related assets and climate-related risk-sensitive sectors. When developing our metrics,
we consider the inputs and guidance provided by standard-setting organizations, as well as new or enhanced regulatory
requirements for climate
disclosures. In 2024,
we continued working
on methodologies covering
climate-driven transition
and physical risks.
The
table
below includes
climate-related
risk metrics
for
the
UBS Group
AG,
UBS AG
on a
standalone
basis
and UBS
Switzerland AG and UBS Europe SE, both on a standalone basis. The trend analysis of exposure is available starting 2023
as UBS Group exposures were reported on a consolidated
basis post Credit Suisse integration.
The
proportion of
the
UBS Group’s
total
gross
lending
exposure accounted
for
by carbon-related
assets
decreased
to
10.9% in
2024 compared
to 12.1%
in 2023.
The UBS
Group metrics
were reported
on a
consolidated basis
including
Credit Suisse exposures starting 2023.
Following
the
mergers
of
UBS
AG
and
Credit
Suisse
AG
in
May
2024
and
of
UBS
Switzerland
AG
and
Credit
Suisse
(Schweiz)
AG
in
July
2024,
the
total
gross
lending
exposures
of
UBS
AG
standalone
and
UBS
Switzerland
AG
have
increased due to the inclusion of legacy Credit
Suisse exposure. Consequently, the climate-driven transition risk, physical-
risk-sensitive exposure and carbon-related assets have increased
on an absolute basis, as expected.
Risk management – Climate-related metrics
For the year ended
% change from
31.12.24
31.12.23
31.12.23
Climate-related metrics (USD bn)
1, 2, 3, 4
Carbon-related assets: UBS Group AG consolidated
1, 2, 3, 4, 5, 6
76.5
93.9
(18.5)
Carbon-related assets proportion of total gross lending exposure, UBS Group
AG consolidated (%)
1, 2, 3, 4, 5, 6
10.9
12.1
Carbon-related assets: UBS AG (standalone)
1, 2, 3, 4, 5, 6
30.3
9.2
228.3
Carbon-related assets: UBS Switzerland AG (standalone)
1, 2, 3, 4, 5, 6
46.6
27.4
69.8
Carbon-related assets: UBS Europe SE (standalone)
1, 2, 3, 4, 5, 6
0.0
0.0
0.0
Total exposure to climate-sensitive sectors, transition risk, UBS Group AG consolidated
1, 2, 3, 4, 6, 7, 8
120.3
149.0
(19.3)
Climate-sensitive sectors, transition risk, proportion of total gross lending exposure, UBS
Group AG consolidated (%)
1, 2, 3, 4, 6, 7, 8
17.1
19.2
Total exposure to climate-sensitive sectors, transition risk, UBS AG (standalone)
1, 2, 3, 4, 6, 7, 8
36.6
12.8
186.4
Total exposure to climate-sensitive sectors, transition risk, UBS Switzerland AG (standalone)
1, 2, 3, 4, 6, 7, 8
83.0
49.8
66.6
Total exposure to climate-sensitive sectors, transition risk, UBS Europe SE (standalone)
1, 2, 3, 4, 6, 7, 8
0.0
0.0
0.0
Exposure to climate-sensitive sectors, transition risk, Traded products, UBS Group AG consolidated
1, 2, 3, 4, 7, 8, 9
2.1
Exposure to climate-sensitive sectors, transition risk, Issuer risk, UBS Group
AG consolidated
1, 2, 3, 4, 7, 8, 10
6.8
Total exposure to climate-sensitive sectors, physical risk, UBS Group AG consolidated
1, 2, 3, 4, 6,7,8
68.9
90.7
(24.0)
Climate-sensitive sectors, physical risk, proportion of total gross lending exposure, UBS
Group AG consolidated (%)
1, 2, 3, 4, 6, 7, 8
9.8
11.7
Total exposure to climate-sensitive sectors, physical risk, UBS AG (standalone)
1, 2, 3, 4, 6, 7, 8
65.7
52.5
25.2
Total exposure to climate-sensitive sectors, physical risk, UBS Switzerland AG (standalone)
1, 2, 3, 4, 6, 7, 8
22.6
15.1
50.0
Total exposure to climate-sensitive sectors, physical risk, UBS Europe SE (standalone)
1, 2, 3, 4, 6, 7, 8
0.0
0.0
0.0
Exposure to climate-sensitive sectors, physical risk, Traded products, UBS Group AG consolidated
1, 2, 3, 4, 7, 8, 9
3.3
Exposure to climate-sensitive sectors, physical risk, Issuer risk, UBS Group
AG consolidated
1, 2, 3, 4, 7, 8, 10
12.6
1
Methodologies for assessing climate-related risks are emerging and may change over time. As the methodologies, tools and data availability improve, we will further develop our risk identification and measurement
approaches. Lombard lending rating is
assigned based on the average riskiness of
collateral.
2
Metrics for 2023 are recalculated and restated based
on the 2024 methodology for comparison purpose.
Percentage
change is calculated based on the
full underlying exposure, which may result in small deviations
when calculated using reported figures that
are rounded to one decimal.
3
Over the last year, the UBS Group continued
its effort to
integrate Credit
Suisse systems
and data.
As a result,
the metric
calculation process
benefits from
data enhancement
even when
the methodology
remains the same
year on year.
At the same
time,
integration work is ongoing and expected to bring in further data alignment in future, which may require restatement of reported metrics.
4
UBS continues to collaborate to resolve methodological and industry data
challenges, and seeks to integrate both impacts to and dependencies on a changing natural and climatic environment, into how UBS evaluates its risks and opportunities.
5
As defined by the Task Force on Climate-
related Financial Disclosures (the TCFD), in its expanded definition published in
2021, UBS defines carbon-related assets through industry-identifying attributes of the firm’s banking book. UBS further includes the four
non-financial sectors addressed by the TCFD,
including, but not limited to,
fossil fuel extraction, carbon-based power
generation, transportation (air,
sea, rail, and auto manufacture),
metals production and mining,
manufacturing industries,
real estate development,
chemicals, petrochemicals,
and pharmaceuticals,
building and construction
materials and activities,
forestry, agriculture,
fishing, food and
beverage production,
including trading companies that
may trade any of
the above (e.g. oil
trading or agricultural commodity
trading companies). This
metric is agnostic of risk
rating, and therefore may
include exposures of companies
that may be
already transitioning or
adapting their business
models to climate
risks, unlike
UBS climate-sensitive sectors
methodology, which
takes a risk
-based approach to
defining material exposure
to climate
impacts.
6
Gross lending exposure consists of total on balance sheet loans and advances to customers and off-balance sheet guarantees and irrevocable loan commitments (within the scope of expected credit loss)
and is based on consolidated IFRS numbers (inclusive of purchase price allocation adjustments recorded in UBS Group as a result of the acquisition of Credit Suisse in compliance with IFRS 3, Business Combinations).
7
Climate-related risks are scored between 0 and 1,
based on sustainability and climate risk transmission channels. Risk ratings represent a range of scores
across five rating categories: low, moderately low, moderate,
moderately high, and high. The climate-sensitive exposure metrics are determined based upon the top three of the five rated categories, i.e.
moderate to high.
8
As the transition and physical risk rating models and
physical risk heatmap model are embedded
further into the risk management framework, we
may identify new use cases that
could trigger validation of the model for
identified use cases and associated enhancements.
As a consequence,
restatement of
reported metrics
may be required.
9
For traded
products, the
metric is
calculated using
over-the-counter (OTC)
derivatives, exchange-traded
derivatives (ETDs)
and securities
financing transactions (SFTs), consisting of securities borrowing and lending, and repurchase and reverse repurchase agreements.
10
For issuer risk, the metric is calculated upon HQLA assets, debt securities, bonds,
liquidity buffer securities. After the parent bank merger,
the issuer risk in legacy Credit Suisse entities is less than 4% of overall UBS Group and considered non-material and excluded
from reported metrics.
The table
below presents
a view
of our
risk profile
and changes
year on
year (YoY),
within sectors
and across
climate
risks. It first shows
our total exposure
to each sector (and
whether that has
increased or decreased
compared to 2023),
followed
by
an
exposure-weighted
risk
rating.
The
table
also
shows
the
YoY
weighted
average
transition
risk
trend
followed by sensitive
exposure for
each of climate
transition risk and
physical risk. Overall,
the UBS Group
continues to
have an average rating of moderate for transition risk and
moderately low for physical risk.
Annual Report 2024 |
Sustainability Statement | Managing sustainability
and climate risk
63
Risk exposures by sector for UBS Group
1,2,3,4,5, 6, 7
Transition risk
Physical risk
Sector / Subsector
2024
exposure
(USD bn)
YoY exposure
trend
8
Weighted average
risk rating 2024
9
YoY weighted
average risk trend
8
2024 climate-
sensitive exposure
(USD bn)
5
Weighted average
risk rating 2024
9
YoY weighted
average risk trend
8
2024 climate-
sensitive exposure
(USD bn)
5
Agriculture
Agriculture, fishing and forestry
0.93
↓
Moderate
→
0.42
Moderately low
→
0.54
Food and beverage
6.51
↓
Moderately high
→
6.51
Moderate
→
3.93
Financial services
Financial services
82.75
↓
Moderately low
→
0.03
Moderately low
→
18.85
Fossil fuels
Downstream refining, distribution
0.54
↓
Moderately high
↓
0.54
Moderately low
↑
0.26
Integrated oil and gas
0.32
→
Moderate
↓
0.32
Moderately low
→
0.00
Midstream transport, storage
0.10
↓
Moderate
→
0.10
Moderate
↑
0.10
Trading fossil fuels
6.72
→
Moderately high
→
6.72
Moderately low
→
0.73
Upstream extraction
0.24
↓
High
→
0.24
Moderately low
↓
0.02
Industrials
Cement or concrete manufacture
0.24
↓
High
→
0.24
Moderately low
→
0.03
Chemicals manufacture
3.80
↓
High
→
3.80
Moderately low
↓
1.27
Electronics manufacture
5.29
↓
Moderate
↓
4.48
Moderately low
↓
1.47
Goods and apparel manufacture
5.13
↓
Moderately high
→
5.11
Moderately low
→
2.94
Machinery manufacturing
8.04
↓
Moderately high
→
8.02
Moderately low
→
1.21
Pharmaceuticals manufacture
3.64
↓
Moderately high
→
3.64
Moderately low
↓
1.06
Plastics and petrochemicals manufacture
1.81
↓
Moderately high
→
1.81
Moderately low
↓
0.69
Metals and mining
Mining conglomerates (incl. trading)
2.83
↓
Moderately high
→
2.83
Moderately low
→
0.07
Mining and quarrying
1.10
↓
Moderate
↑
0.66
Moderately low
→
0.59
Production of metals
0.87
↓
Moderately high
→
0.87
Moderate
→
0.39
Private clients
Lombard
151.50
↓
Moderately low
→
0.00
Moderately low
→
0.00
Real estate
Development and management
11.64
↑
Moderately high
→
11.04
Moderately low
↓
0.68
Real estate financing
10
83.34
↓
Moderate
→
36.28
Moderately low
→
2.48
Private clients with mortgages
10
250.59
↓
Moderately low
→
0.00
Low
→
0.00
Services and technology
Services and technology
35.93
↓
Moderately low
→
9.31
Moderately low
→
18.85
Sovereigns
Sovereigns
2.91
↓
Moderate
↓
0.34
Moderately low
→
0.04
Transportation
Air transport
2.98
↓
Moderately high
→
2.84
Moderate
→
2.50
Automotive
1.20
↓
Moderate
↓
0.23
Moderate
→
1.08
Rail freight
0.90
↑
Low
→
0.00
Moderate
→
0.77
Road freight
1.32
↑
Moderately high
→
1.32
Moderately low
↓
0.64
Transit
0.49
↓
Moderately low
→
0.00
Moderately low
↓
0.33
Transportation parts and equipment
supply
1.10
↓
Moderately high
→
1.10
Moderate
→
0.64
Water transport
8.55
→
Moderately high
→
8.55
Moderately low
→
5.21
Utilities
Power generation
2.76
↓
High
↑
2.24
Moderately low
↓
1.42
Waste treatment
0.68
↓
Moderately high
→
0.68
Moderately low
↑
0.19
Not classified
11
15.07
↓
Not classified
→
0.00
Not classified
→
0.00
Grand Total
701.80
↓
Moderate
→
120.25
Moderately low
→
68.94
1
Methodologies for assessing climate-related risks are emerging and may change
over time. As the methodologies, tools, and data availability improve, we will further develop our risk identification and measurement
approaches. Lombard lending rating is assigned based on the average riskiness of loans.
2
Metrics for 2023 are recalculated and restated based on the 2024 methodology for comparison purpose.
3
Gross lending
exposure consists of total on balance
sheet loans and advances to customers and
off-balance sheet guarantees and irrevocable loan commitments (within the
scope of expected credit loss) and
is based on consolidated
IFRS numbers (inclusive
of purchase price
allocation adjustments
recorded in
UBS Group
as a result
of the acquisition
of Credit
Suisse in compliance
with IFRS
3, Business Combinations).
4
UBS continues to
collaborate to resolve methodological
and industry data challenges,
and seeks to integrate
both impacts to and
dependencies on a changing
natural and climatic environment,
into how UBS evaluates
its risks and
opportunities.
5
Climate-related risks are scored between 0 and
1, based on sustainability and climate risk
transmission channels. Risk ratings represent a range of scores across five
rating categories: low, moderately
low, moderate,
moderately high,
and high. The
climate-sensitive exposure
metrics are
determined based
upon the top
three of the
five rated
categories i.e.
moderate to
high.
6
Over the last
year,
UBS Group
continued its
effort to
integrate Credit
Suisse systems
and data.
As a
result, metric
calculation process
benefits from
data enhancement
even when
methodology remains
same year-on-year.
At the
same time,
integration work is ongoing and
expected to bring in further data
alignment in future which may require
restatement of reported metrics.
7
As transition and physical risk rating
models and physical risk heatmap
model are embedded
further into the
risk management framework,
we may identify
new use cases
that could trigger validation
of model for
identified use cases
and associated enhancements.
As a consequence,
restatement of reported metrics
may be required.
8
A material change in
the risk profile (discrete
risk score, weighted
average per sub-sector)
is considered as
>5% shift up,
or down year on
year. Similarly,
for
absolute exposure.
9
Displayed ratings represent exposure-weighted averages
for a given sector scope.
10
The real estate segments have been aligned
with the expected credit loss segments UBS
applies under
IFRS. Real estate financing includes rental or income-producing real estate financing
to private and corporate clients secured by real estate.
Private clients with mortgages include lending to private clients secured
by
owner-occupied real estate and personal account overdrafts of those clients.
11
Not classified represents the portion of UBS’s business activities where methodologies and data are not yet able to provide
a rating.
Annual Report 2024 |
Sustainability Statement | Managing sustainability
and climate risk
64
Risk management and control
In 2024,
we continued
to develop
solutions to
integrate sustainability
and climate
risks into
traditional risk
categories,
such as our credit, market,
liquidity, non-financial and reputational risk frameworks. We
progressively enhanced our four-
stage approach (defined above
in the sustainability and climate
risk management framework) by
leveraging research on
how sustainability and climate
risk drivers may be
transmitted to our clients
(and their assets)
and ultimately to
the firm
in the form
of financial
and non-financial
risks. Our
approach supports
the ongoing
management of
sustainability and
climate risks as
they manifest
across traditional risk
categories and has
been built in
line with principles
outlined by the
Basel
Committee
on
Banking
Supervision
(the
BCBS)
and
the
Task
Force
on
Climate-related
Financial
Disclosures
(the
TCFD,
now
organized
under
the
ISSB).
As
Swiss
financial
regulator
FINMA
has
mandated
financial
institutions
to
implement
nature-related
financial
risks
in
their
due
diligence
processes
by
2028
(FINMA
Circular
2026/1
on
nature-
related
financial
risk),
UBS
is
building
its
capabilities
to
embed
the
management
of
these
risks
in
its
due
diligence
processes.
Our progress is summarized in the following table.
Managing sustainability and climate risks
within traditional risk categories
Traditional risk
category
Sustainability and climate risk
transmission channels.
Key developments
Credit risk
Our potential credit losses driven by risks
from a changing physical climate, the
transition to a low-carbon economy.
Climate-related risk drivers can impact
household, corporate or sovereign income
and / or wealth. Physical and transition
risk drivers increase our potential losses as
soon as they have a negative effect on a
borrower’s ability to repay and / or fully
recover the value of a loan in the event of
default.
In 2024, we further embedded climate-related
risks into our credit risk management framework. By
collaborating across business divisions and between both
the first and second lines of defense, we developed
innovative solutions tailored to the risk profiles and material
drivers of risk within our businesses:
Investment Bank:
The current credit-granting process has been amended to identify and
measure the potential
for credit losses driven by climate-related risks for corporate lending
and leveraged finance. At the transaction
level, this is achieved by integrating tools such as sector-level climate-related
risk heatmaps and company-level
due diligence scorecards into the credit approval analysis and decision-making
process. In addition, where
mandated, concentration triggers have been set up and are monitored
and reported on a quarterly basis for all
relevant counterparties. Furthermore, at the divisional level,
progress has been made to enhance and automate
reporting of the full Investment Bank lending portfolio, on a quarterly
basis.
Global Wealth Management:
The current credit-granting process identifies and assess potential
credit losses
driven by climate-related risks for Lombard lending in Switzerland
and international locations by integrating
climate-related due diligence questions and leveraging the climate
risk heatmaps in the credit assessment at a
transaction level. The approach encompasses Lombard loans to operating companies
and those backed by
concentrated equity posted as collateral and we aim to further enhance
the scope across regions and products
in future. Furthermore, progress was made to enhance and automate reporting of the combined
Global Wealth
Management Lombard lending portfolio, on a quarterly basis.
Personal & Corporate Banking:
The current credit-granting process identifies and assesses potential
credit
losses driven by climate-related risks by integrating climate-related
due diligence questions and leveraging the
climate risk heatmaps in the credit assessment at a transaction
level. This approach was rolled out in 2023 to
the P&C Multinationals business and expanded in 2024 to
include a wider coverage of the corporate client
portfolio as well as the commodity trade finance business. Furthermore, at the divisional level
progress was
made to enhance and automate reporting of the combined
Personal and Corporate lending portfolio, on a
quarterly basis.
Market risk
(traded and
not traded)
Potential financial impacts on the firm
from price shifts and / or market volatility.
A changing physical environment
(including climate change) may affect the
value of companies reliant on the natural
environment and / or how the market
perceives such companies. The transition
to a low-carbon economy through climate
policies, low-carbon technologies,
demand shifts and / or market perception
may also impact the value of our positions
and / or lead to a breakdown in
correlations between risk factors (e.g.
prompting a change in market liquidity
and / or challenging assumptions in our
model).
In 2024, we assessed the risk from planned portfolios, in line with our multi-year
sustainability and climate risk
initiative, and established solutions for integrating climate-related risks into our market risk management
framework. Progress on integrating climate-related risks into our market risk management
was incrementally
driven by enhancing analytical capacity, applying the climate risk rating model
in our market-risk monitoring
systems and developing stress testing capabilities. We have adapted our in-house
long-term scenarios to the
specifics of short-term market risk analytical requirements.
Enhancing analytical capacity:
Leveraging existing sector-level heatmap methodologies
and our in-house
scenario development capacity, we sought to perform a loss-driven materiality
assessment. By linking the risk
ratings with adverse-scenario-driven shocks, we were able to further examine
the correlations between risk
factors and understand the short-term loss potentials for climate. In 2024,
we were able to introduce a climate
risk rating model for the first time.
Automation:
Market risks systems facilitate for daily monitoring, reporting and control.
By integrating these
with our centralized climate sector-level heatmap together with
climate risk rating model, we are able to
understand and react to drivers of climate impacts on our portfolios
through regular assessments and
monitoring.
Quantitative risk appetite:
For selected legal entities, climate risk concentration triggers were introduced in
2023 based on the sector-level climate risk heatmaps.
The solution facilitates daily monitoring of positions that
are considered inherently sensitive to climate risks, including an automated
breach escalation process along
with the market risk escalation path for concentration limits, providing an opportunity for remediation
actions.
The triggers cover credit delta and equity delta aggregated in accordance
with the “sensitivity,” as defined
through our heatmapping methodology.
Annual Report 2024 |
Sustainability Statement | Managing sustainability
and climate risk
65
Managing sustainability and climate risks
within traditional risk categories
Liquidity risk
The potential impact on liquidity adequacy
is driven by risks from a changing physical
climate, the transition to a low-carbon
economy., Climate events have been
proven to affect funding conditions, and
therefore liquidity buffers across broader
banks. Climate-related risks are
considered an additional driver of liquidity
risk. As such, they may impact our
liquidity adequacy, directly or indirectly,
through our ability to raise funds,
liquidate assets and / or our customers’
demand for liquidity. This could result in
net cash outflows or depletion of our
liquidity buffer.
In 2024, we further integrated climate risk into our liquidity framework
for planned portfolios, in line with the
multi-year sustainability and climate risk initiative. Climate risk stress
testing and climate risk reporting were
introduced for the first time in 2024, leveraging the heatmap and climate
risk rating model. The identification
of material climate-related risks and the integration of those potential
risks into the internal liquidity risk
management framework will be an iterative process as we continuously
improve the methodology, along with
improving the availability and quality of required data in the industry
and enhanced analytics and insights over
time.
Non-financial
risk
This is the non-financial impact on UBS
(compliance, operational risk and financial
crime) from inadequate or failed internal
processes, people and systems and / or
externally due to physical climate events
or stakeholder legal action.
Alignment with the BCBS Principles for the effective
management and supervision of climate-related (non-
financial) risks has been key in 2024 and is subject to on-going monitoring
as of 2025.
We have completed work to embed ESG (environmental, social
and governance)-related risks, including climate
considerations as a standalone risk indicator to the Group non-financial
risk identification model governance
used as the basis for scenario coverage and non-financial risk
regulatory / economic capital determination.
We will continue to evolve the framework in alignment with our commercial
strategy and industry expectations,
with work ongoing to assess the results of ESG risk integration
more broadly into non-financial risk taxonomy
risk appetite statements.
Reputational
risk
This is the risk of an unfavorable
perception, or a lessening of our
reputation, from the point of view of
clients, industries, shareholders,
regulators, employees or the general
public, which may lead to potential
financial losses and / or loss of market
share.
Reputational risk is considered across all
business activities, transactions and
decisions and includes sustainability-
related reputational risks, such as
greenwashing risk.
We continue to assess the design of our reputational risk framework
as generally robust in terms of roles and
responsibilities, escalation requirements, and review and approval authorities for sustainability-related
risks.
Relevant sustainability-related standards have been set, including for the
appropriate consideration of high
inherent reputational risks, by leveraging existing firm-wide risk identification
and review and approval
processes.
Our 2030 lending sector decarbonization targets for specified
sectors at Group level come with agreed
contributions by the individual business divisions (BDs)
for the corporate lending sectors.
To monitor and control the utilization of the BDs’ contributions toward the 2030
corporate lending sector
decarbonization targets, a decarbonization control framework was operationalized in 2024,
with defined
thresholds per sector and business division and at Group
level. These thresholds are defined annually and the
utilization against the agreed thresholds is monitored on a quarterly
basis.
Additionally, a material transaction, as defined in the credit approval process, within in-scope business
activities is subject to the pre-deal assessment process. The first line of defense is responsible
for identifying
and referring an in-scope transaction to the second line of defense sustainability
function for a detailed
assessment. Based on the calculated utilization level,
a transaction is subject to the defined approval path.
We manage and escalate
material climate-related risks,
in accordance with our
standard financial and
non-financial risk
processes and
defining key responsibilities
and tools,
both at the
Group level
and across our
business divisions. To
facilitate
the implementation
of consistent risk
management practices
across the Group,
we have
conducted climate-risk-related
training for employees across the business divisions and Group functions.
Risk reporting and disclosure
Sustainability and climate
risk considerations are
an integral part
of topics included
in our quarterly
risk reporting cycle.
Information exchanged during this process includes the number of transactions referred to the sustainability and
climate
risk
unit
with
outcomes
and
underlying
reasons,
and
an
associated
breakdown
by
category.
The
report
includes
information on
exposure to
climate -sensitive
sector activities
(our climate-related
risk heatmaps
and climate
risk rating
models), leveraging
a fully
automated
process. The
heatmaps and
climate rating
models are
also included
in quarterly
internal risk reports for key legal entities and business divisions.
For external climate-related
risk reporting, we
have prepared our
annual disclosures
across the key
areas recommended
by the Task Force on Climate-related Financial Disclosure.
The automated reporting
capabilities for
climate-related risk
were enhanced to
include combined
(legacy- UBS
and legacy-
Credit Suisse)
Group-wide climate
risk views
for internal
and external
reporting. In
addition, the
outputs of
the CRRM
have been implemented
to generate year-end
2024 metrics for further
granularity. Internal and
external climate-related
risk metrics will continue to evolve in the coming years, as a part of
our sustainability and climate risks roadmap, to meet
regulatory expectations and ensure leading practices in this area.
Annual Report 2024 |
Sustainability Statement | Managing sustainability
and climate risk
66
Our investment management approach to sustainability and climate
risks
Assessing climate-related financial risks in client portfolios
As a global financial
institution, we help
our clients navigate
the challenges of the
transition to a
low-carbon economy.
We address
this by
establishing
climate
risk monitoring
and management
systems across
our Asset
Management
and
Global Wealth
Management
business divisions,
offering innovative
products and
services in
investment and
financing,
and providing transparent reporting and disclosures.
We strive to integrate
climate-related financial risk
considerations into our
decision-making and
processes pertaining to
services, strategies
or products
offered or
employed by
third parties,
including delegates.
In doing
so, we
demonstrate
our commitment to
implementing the recommendations
of the Task
Force on Climate
-related Financial Disclosures
(the
TCFD). We perform
climate risk
assessments on
discretionary portfolios
managed in
Singapore and
in-scoped collective
investment
schemes
managed
in
Hong
Kong
respectively,
in
line
with
the
Monetary
Authority
of
Singapore
(MAS)
Guidelines on Environmental Risk Management for Asset Managers and
the Securities and Futures Commission of Hong
Kong (SFC) Climate Risk regulations.
We also disclose portfolio risk
across climate scenarios in the
UK, in line with TCFD
recommendations.
We
work
across
our
industry
and
with
our
clients,
ensuring
they
have
access
to
best
practice,
robust
science-based
approaches, standardized methodologies and quality data for
measuring and mitigating climate risks.
In the following sections, we outline
the UBS approach to quantifying climate risk
in clients’ assets as well
as how climate
risk information is applied to Asset Management and Global
Wealth Management.
Quantifying climate risk: data and metrics
In
order
to
evaluate
climate
risks
at
issuer
level,
we
utilize
physical
and
transition
climate
risk
data
from
various
data
providers.
Physical
climate
risk
arises
from
the
impact
of
weather
events
and
long-term
or
widespread
environmental
changes.
Higher levels of
physical risks imply
higher probability
of an issuer
or direct assets
being impaired
in value. Our
physical
risk assessment considers
the potential impact
of extreme climate
events on an
issuer’s assets or
our direct assets,
with
each physical risk score representing a sensitivity-adjusted,
weighted average of risk scores linked to all associated assets
across different climate hazards, such
as heat / cold waves, water stress,
flooding, sea level rises, hurricanes,
wildfires and
drought.
Transition risk arises
from the process
of adjusting to
an environmentally sustainable
economy, including changes
in public
policies,
disruptive
technological
developments
and
shifts
in consumer
and investor
preferences.
One
of the
ways we
assess transition
risk
is by
using
a
“carbon
earnings
at
risk” approach,
which
analyzes
the
unpriced
carbon
cost
to a
company as a
percentage of its
earnings before interest,
taxes, depreciation and
amortization (EBITDA). We
see carbon
earnings at risk as one of the more directly quantifiable and comparable metrics across industries globally, which is more
suitable for reflecting the reach and complexity of our investments.
For both physical and transition
risks, the projections are
typically built upon publicly reported
company data, restricting
coverage
to
corporate
issuers,
which
form
the
bulk
of
our
public
markets
portfolios.
Consequently,
exposures
to
sovereigns or structured products, for example, are not covered
at this point.
Climate risk data remains an evolving area, and best practice standards or norms are still being developed. This results in
acknowledged limitations in data coverage and
quality, such as issuer
type and the use
of proxy or estimation
techniques.
Financial models also typically
project up to three
years into the future,
with significant deterioration
in visibility beyond
one year. As such, long-term projections used to generate
data, even for 2030, may have limited accuracy.
We work closely with our
data providers to continuously
enhance the scope and quality
of data available to us.
Climate
risk data
continued to
improve over
2024, including,
for example,
improved financial
integration and
market-adjusted
carbon price
assumptions. As
our data
providers continue
to improve
on their
data methodology
and coverage,
in line
with industry best practice, these changes may be reflected
in climate risk analytics on the client portfolios we manage.
Application in Asset Management
Asset Management’s
ESG
(environmental,
social
and
governance)
integration
approach
identifies
climate-related
risks
and
opportunities
that
can
be
applied
in
managing
existing
investment
strategies
and
constructing
new
portfolios.
Portfolio construction criteria are
applied based on the intended
objectives of the given strategy.
Portfolios are classified
based
on
their
sustainability
characteristics,
including
sustainability-related
key
performance
indicators
and
minimum
sustainability safeguards. Exclusion criteria address elevated sustainability risks and the
scope of portfolios to which such
exclusions
are
applied
is
described
in
the
Asset
Management
exclusion
policy.
The
investment
policies
in
fund
documentation
describe
the
extent
to
which
a
strategy
targets
particular
risk
or
opportunity
outcomes.
Asset
Management
discloses
various
climate-related
metrics
in
line
with
the
TCFD’s
Supplemental
Guidance
for
Asset
Managers. We publish aggregated figures for total emissions, carbon footprint and
weighted average carbon intensity in
the “Environmental information”
section of this report. Asset Management
includes disclosure of portfolio-level
metrics
for sustainable investment portfolios in its fund factsheets and
in client reporting.
Annual Report 2024 |
Sustainability Statement | Managing sustainability
and climate risk
67
In
Asset
Management,
our
overall
strategy
for
managing
climate
risks
is
to
integrate
risk
data
and
insights
into
our
investment management
processes. In
our public
markets investments,
this begins
with assessing
ESG issues
based on
our ESG
material issues
framework.
This identifies
the most
relevant issues
by sector,
making the
connection with
key
value drivers that may
impact the investment
thesis across sectors.
Our ESG material
issues framework reflects
a sector-
based view of exposures to
physical and transition climate risks. Our
climate risk assessment also uses issuer-level
physical
risk data
for a
range of
climate hazards,
and transition
risk data
assessing exposure
to changes
in carbon
pricing. This
assists with identifying issuers with higher levels
of risk, which are then subjected
to qualitative assessment, including the
location and business
segments at risk,
and mitigation, including
board oversight, company
risk assessment, mitigation
and adaptation actions, and
engagement with suppliers,
customers and local stakeholders.
This climate risk assessment
is an
additional
consideration
in the
overall
assessment
of the
sustainability
performance
of the
issuer, which
informs
investment decisions.
In our Global Real Assets business, we consider key
transition risks using our proprietary, in-house ESG dashboard, which
assesses the
environmental performance of
directly controlled
real estate assets
against pathways
and targets.
Assessment
of
transition
risk
using
the
International
Energy
Agency
framework
is
applied
for
some
of
our
direct
infrastructure
investments. On
the physical
risk side,
for our
direct investments
in both
real estate
and infrastructure,
we use
a third-
party
location
risk
intelligence
tool
to
analyze
asset-level
physical
risk.
We
also
use
third-party
data
to
inform
our
assessment of physical risk in our indirect real estate investments.
These tools identify each asset’s potential physical risks
under a variety of climate change scenarios and timelines.
Active ownership
The
transition
of
investment
portfolios
will
require
real-economy
emission
reductions.
We
see
our
active
ownership
strategy as a powerful tool in influencing corporate and
other stakeholder behavior to achieve real-economy
outcomes.
Asset
Management
has
had
a
dedicated
climate
engagement
program
in
place
for
more
than
five
years,
addressing
climate-related
risks
in
companies,
with
measurable
progress
tracked.
It
covers
high-emitting
companies
in
our
listed
equity and
corporate bond
universe, taking
into account
a range
of sectors
and geographies.
This includes
companies
from
the
oil
and
gas,
electricity
and
other
utilities,
metals
and
mining,
construction
materials,
chemicals
sectors.
The
program
is
focused
on
driving
ambitious
and
credible
transition
strategies
across
portfolio
holdings.
It
covers
climate
governance, targets, transition plans
and relevant business model
objectives. Since the start
of our engagement
program,
we have increased the
range of our
expectations to include more
ambitious emissions reduction target setting,
quantified
disclosures on
decarbonization
actions, capital
deployment
in line
with a
net-zero pathway,
and reporting
of progress
toward stated commitments.
In our Global Real Assets business we typically hold a majority in our direct real assets, and thus it is possible to
positively
influence
outcomes
through
active
ownership;
this
includes
collaboration
with
tenants,
third-party
companies,
employees, communities
and other
stakeholders (via,
for example,
green lease
clauses, tenant
satisfaction surveys
and
tenant reach-outs)
to drive
and achieve
emission reductions
and other
climate risk
mitigations. Where
we do
not have
control,
we
actively
engage
with
owners
and
stakeholders
to
address
climate-related
risks
and
monitor
progress
accordingly. This
engagement
includes physical
risk exposure
and mitigation,
transition plans,
disclosures and
net-zero
alignment.
Application in Global Wealth Management
Our overall
investment
decision-making
process
is largely
driven from
the
top. Although
corporate-level
data
sourced
from
S&P
Global
has
been
chosen
for
Global
Wealth
Management
portfolios,
given
its
credibility,
complexity
and
coverage, this bottom-up dataset cannot be
directly integrated into Global Wealth
Management’s investment processes
without the use of significant aggregation and proxies.
Considering the above, at this point in time climate
risk analyses
are not used to inform investment decisions at either the asset allocation or the instrument selection levels within Global
Wealth
Management,
due
to
investment
scope,
limitations
of
data
availabilities,
modeling
uncertainties
and
implementation hurdles. We actively monitor industry best practice and data developments
to ensure we are prepared to
further integrate climate risks into core investment processes, should
these bottlenecks be resolved. In the meantime, we
continue to review implied climate risk in our portfolios and continue to make progress on capacity building and making
climate risk assessment findings available across the investment
value chain.
Industry engagement
Most of
our discretionary
portfolios consist
of investment
funds from
third-party
fund managers,
including UBS
Asset
Management, which runs independent
processes. Generally,
Global Wealth Management
acts as an asset allocator
and
manager of these portfolios, but it does
not control portfolio construction and
management within the underlying fund
investment
solutions.
Therefore,
in
addition
to
developing
a
climate
risk
assessment
management
framework
for
portfolios
based
on
underlying
investment
holdings,
we
aim
to
understand
the
climate
risk
management
practices
established by the managers of the underlying funds.
To
that
end,
we
regularly
ask
investment
fund
partners
of
approved
investment
funds
for
information
about
their
approach to climate
risk issues, including the
extent to which climate
risk management processes
have been developed
and
implemented
within
their
businesses,
with
relevance
to
frameworks
such
as
TCFD
and
the
MAS
Guidelines
on
Environmental
Risk
Management
for
Asset
Managers,
where
required
by
relevant
regulators.
We
are
committed
to
continuing regular communication with
our fund partners
about the development of
climate risk management
processes,
as relevant to their strategies.
Annual Report 2024 |
Sustainability Statement | Other supplemental
information
68
Other supplemental information
Additional UBS Europe SE considerations for sustainability
and climate risk
management
UBS Europe
SE is
a significant
Group entity
of UBS
Group. Therefore,
UBS Group’s
management
of sustainability
and
climate risks, and related risk assessments, implicitly cover
UBS Europe SE’s portfolios. In addition, UBS Europe SE carries
out
explicit
management
and
assessment
of
sustainability
and
climate
risk.
This
includes
a
tailored
risk
strategy
and
business
strategy,
review
of
the
UBS
decarbonization
commitments
at
the
level
of
UBS
Europe
SE,
and
dedicated
materiality assessments, stress testing, a control framework and reporting with respect to sustainability and climate risks.
Materiality assessment
UBS
Europe
SE considers sustainability and climate risks as part of the regular risk
identification process that feeds into its
risk strategy. This includes
an evaluation of whether
sustainability and climate
risks have a material
impact on other risk
categories,
such
as
credit
risk,
market
risk,
liquidity
and
funding
risk,
business
risk,
non-financial
risks
(including
compliance and operational risks), litigation risk, and reputational risk (including greenwashing). It also considers distinct
risk types (climate risk, both transition risk and physical risks,
as well as environmental risk / nature-related risk).
The materiality assessment for sustainability and climate risks is performed
leveraging different analyses and capabilities,
ranging from
sensitivity analyses based
on a
heatmap methodology as
well as
climate risk rating
model to climate
scenario
analyses considering
different
severities and
time horizons
,
as well
as qualitative
subject matter
expert assessments.
It
also takes into consideration the relevant offering for UBS
Europe SE across the different business divisions.
Based
on
these
evaluations,
and
as
reflected
below,
after
considering
risk-mitigating
measures
as
of
Q4
2024,
sustainability and climate risk in UBS
Europe SE as a whole is currently
assessed as material, driven
by non-financial risks
and reputational
risk. There
is a
defined and
implemented framework
and adherence
to the
established framework
is
guaranteed
by
implementing
and
executing
clear
established
controls
and
having
environmental-,
social-
and
governance-related metrics in place.
The detailed analyses underpinning these materiality assessment
results are documented further internally.
Annual Report 2024 |
Sustainability Statement | Other supplemental
information
69
Business model
Pursuant
to
the
German
Banking
Act
in
connection
with
the
European
Banking
Authority
guidelines
on
Internal
Governance
and
the
Minimum
Requirements
for
Risk
Management
(MaRisk)
published
by
the
Federal
Financial
Supervisory
Authority
(Bundesanstalt
für
Finanzdienstleistungsaufsicht
–
BaFin),
UBS
Europe SE
executes
a
robust
and
durable business strategy. The business strategy, risk strategy and risk profile of UBS Europe
SE are core elements for the
approach to, and assessment of, sustainability and climate risks. The risk profile, which considers all business activities as
described in
the business strategy,
allows UBS Europe
SE to understand
the risks
and impacts on
the business environment
and to inform the risk appetite as established in the risk
strategy.
In line
with UBS
Group, sustainability
is dealt
with as
a key
strategic imperative
in UBS
Europe SE’s
business
strategy,
where
applicable
business
activities
related
to
sustainability
and
measures
are
established,
monitored
and
annually
reviewed
at
entity
level.
Assessing
the
different
risks
and
opportunities
that
are
linked
to
sustainability
is
crucial
to
developing
a
consistent
sustainability
business
strategy.
Hence,
UBS Europe
SE
analyzes
topics such
as market
trends,
regulatory frameworks,
climate risks
and clients’
needs across
its business
divisions from
a sustainability
perspective to
ensure such aspects are fully embedded in its business strategy.
As one of Europe’s largest managers of private and
institutional wealth, UBS Europe SE has a role
to play in tackling the
challenges faced
within sustainable
finance. It
has established
targets and
key performance
indicators (KPIs)
following
the
UBS
Group
sustainability
and
impact
strategy
across
environmental,
social
and
product-related
areas,
which
are
currently under development.
UBS Europe SE has determined the following topics as its
sustainability priorities:
–
continuing
to
address
and
progressing
with
its
sustainability
strategy
and
decarbonization
commitments,
through
active monitoring and reporting to dedicated stakeholders and
senior management;
–
ongoing
enhancement
of
the
sustainability
sections
of
the
UBS
Europe
SE
Business
Strategy
document,
including
further development and implementation of
UBS Europe SE-applicable KPIs around
environmental, social and product-
related topics, enabling monitoring and reporting over time;
and
–
ensuring compliance
with regulatory
requests, expectations
and upcoming
legislation related
to sustainability
under
which UBS Europe SE is in scope of.
UBS
Europe
SE
is
fully
aligned
with
the
UBS
Group
sustainability
and
impact
strategy,
including
its
ambitions
and
implementation timeline.
Our sustainability
and impact
ambition is
to be
the bank
for the
next generation.
To help
us
realize that vision, our sustainability
and impact strategy is based
on three overarching strategic pillars:
Protect, Grow and
Attract, representing a natural evolution in our strategic
approach.
›
Refer to “Strategy” in this section for more information
about our sustainability and impact strategy, which fully applies to UBS
ESE
Globally, UBS Group
is a member
of several associations
and networks, supporting
sustainable finance
principles based
on
international
standards,
where
the
aforementioned
topics
are
addressed
and
further
considered,
including
for
European entities. At the
level of UBS Europe
SE this includes: the
Green and Sustainable
Finance Cluster Germany;
the
Association
of
German
Banks
(Bundesverband
deutscher
Banken
e.V.);
the
European
Bank
Federation
(Sustainable
Finance Team);
and the
Sustainable Finance
teams of
the Association
for Financial
Markets in
Europe (AFME).
In 2022,
UBS Europe SE became
a member and
sponsor of the
International Sustainability Standards
Board (ISSB) to support
the
development of more consistent corporate reporting on sustainability matters,
which can in turn support the integration
of sustainability factors into financial markets and decision-making.
Governance
The members of
the UBS Europe
SE Management Board
are overall responsible
for adequate risk
management and for
establishing
an
integrated
and
institution-wide
risk
culture.
This
includes
determining
the
firm’s
risk
principles,
risk
appetite,
major
portfolio
limits
and
their
allocation
to
the
business
divisions
and
treasury.
The
Management
Board
develops and implements the risk
and control frameworks, oversees the
entity’s risk profile and approves key
UBS Europe
SE risk policies.
The oversight
and controls
include all business
conducted in the
entity,
including its branches
and their
associated risks, and
further ensure compliance
with local legal
and regulatory requirements.
Notwithstanding the joint
responsibility
of
the
Management
Board,
each
member
of
the
Management
Board
is
responsible
for
establishing
adequate controls and monitoring processes
in their respective area
of responsibility.
UBS Europe SE’s Supervisory Board
is responsible for supervising and
advising the Management Board, which informs
the
Supervisory Board about risk-relevant topics, including risk strategy
and risk appetite,
on a regular basis. The Supervisory
Board has established a Risk Committee, which monitors and supervises the
firm’s risk profile and the implementation of
the
risk
framework
as
approved
by
the
Management
Board,
as
well
as
monitors
the
firm’s
key
risk
measurement
methodologies, including sustainability and climate risk.
UBS Europe SE’s risk management organization is based on the “three lines of defense” model, fulfilling the general risk
management
requirements
according
to
“Mindestanforderungen
an
das
Risikomanagement
(MaRisk)
AT°4.3.1”
(Minimum Requirements for
Risk Management).
Furthermore, it
is embedded
into the
broader risk
governance framework
of the UBS Group.
The UBS ESE Management Board ensures the effectiveness
of the organization’s risk management framework
and relies
on adequate line functions – including monitoring and assurance
– by implementing the three lines of defense model.
Annual Report 2024 |
Sustainability Statement | Other supplemental
information
70
According to
the sustainability
and climate
risk policy
framework,
the business
(as the
first line
of defense
– 1st
LoD)
identifies sustainability
and climate
risks in
in-scope products,
services, activities,
transactions,
onboardings or
periodic
reviews, and refers them to the sustainability and climate
risk (SCR) unit, as the second line of defense (2nd
LoD) unit or
business-aligned 2nd
LoD (e.g. credit risk controllers), where applicable.
The
SCR
unit
(2nd
LoD)
approves
or
declines
the
referred
cases
after
assessing
their
compliance
with
the
firm’s
Risk
Appetite
standards
defined
by the
UBS Europe
SE
Management
Board.
SCR
also
measures,
monitors and
reports
the
exposure to sustainability
and climate
risks. Moreover, the
SCR unit supports
the Chief
Risk Officer (CRO)
in overseeing
sustainability
topics.
It
develops
and
implements
UBS
Europe
SE´s
risk
framework,
specifically
risk
appetite,
for
sustainability and
climate risk
topics, monitors
emerging issues
and reviews
UBS Europe
SE´s exposure
to sustainability
and climate risk.
Furthermore, it ensures the
SCR policy framework is
embedded in UBS Europe
SE´s culture, management
practices
and
control
principles
across
the
firm
and
conducts
sustainability
and
climate-risk-specific
assessments
of
transactions and client and supplier onboarding.
The compliance framework applied by the Group Compliance, Regulatory
& Governance (GCRG) function as part of the
2nd
LoD
includes
(but
is not
limited to)
standards
set
for
the
appropriate
consideration
of
ESG-related
risks
in
(i)
the
product service life cycle
through the New Business
Enablement Framework
(NBE); (ii) the client life
cycle framework (at
onboarding
and
during
the
lifetime
of
the
business
relationships);
(iii)
transaction
and
proposal
review;
and
(iv)
the
investment
suitability
framework
(capturing
of
client
sustainability
preferences
in
the
investors’
profiles).
These
supplement the existing
processes and controls
in place to
identify risks that
arise through the
firm´s business activities,
including ESG-related risks, to ensure that these are
appropriately evaluated.
GCRG
undertakes
monitoring
of
greenwashing
risks
focusing
on
performing
a
periodic,
sample-based
control
in
all
jurisdictions where Sustainable Investment labelled products / services are distributed and mapping of materially-relevant
ESG 1st and 2nd LoD controls by non-financial risk taxonomy
to support a focused assessment of ESG as a risk driver.
From
a
third
line
of
defense
(3rd
LoD)
perspective,
Internal
Audit
assures
design
and
operating
effectiveness
of
UBS
Europe SE's internal risk and control framework
and escalates / reports to relevant governance
forums (e.g. Risk Control
Committee) and UBS Europe SE Audit Committee.
In addition to the
UBS Group structure for
the identification, assessment
and management of
sustainability and climate
risk, UBS Europe SE has established its own governance. Since 2021, UBS Europe
SE has had in place a Sustainability and
SCR
Steering
Forum.
It
meets
monthly,
with
full
Management
Board
representation
including
CEO,
and
oversees
the
strategy and
the implementation
of plans
to address
regulatory expectations
concerning the
impact of
climate-related
and environmental risks
on the legal
entity. Furthermore, to
ensure sustainability is
handled as a
key priority and
according
to
UBS
Europe
SE´s
Schedule
of
Responsibilities,
the
responsibility
for
sustainability
and
climate
risks
at
Management
Board level
is allocated
to the
CRO, while
the Chief
Financial Officer
is responsible
for sustainability.
Both co-chair
the
Sustainability and
SCR Steering
Forum and
they are
supported by
the roles
of UBS
Europe SE
SCR Lead
(2nd LoD),
as
Head of the
SCR unit and
part of Group
Risk Control, and
UBS Europe SE
Sustainability Lead (1st
LoD), part of
the Group’s
Chief Sustainability Office.
In
2023,
enhancements
were
made
to
the
Sustainability
and
SCR
Steering
Forum
and
its
formal
reporting
to
the
Management Board,
providing quarterly
and, when
required, bespoke
extraordinary updates
and update
of the
forum
Guiding Principles.
This allows
sustainability and
SCR to
be addressed
and monitored
at the
highest level
in the
entity.
Additionally, a semi-annual
report to the
Management and Supervisory
Boards on progress
against the decarbonization
commitment is in place.
›
Refer to “Our sustainability governance” in the
“Sustainability statement” section of this report for
more information about UBS
sustainability governance
Risk management
The
UBS
sustainability
and
climate
risk
policy
framework
included
in
the
“Managing
sustainability
and
climate
risks”
section of this report,
is also embedded in the UBS Europe SE
risk control framework.
The SCR
initiative follows
a
multi-year
roadmap across
our firm’s
business
divisions
and legal
entities,
and hence
also
covers
UBS
Europe
SE.
It
is
designed
to
integrate
sustainability
and
climate
risk
considerations
into
our
firm’s
various
traditional
financial
risk
management
frameworks,
and
related
policies
and
processes.
This
is
necessary
to
meet
expectations
regarding
the
management
of
sustainability
and
climate
risks
and
to
deliver
on
climate
stress
testing
exercises.
There
will
be
continuous
enhancement
of
the
sustainability
and
climate
risk
management
framework
as
additional capabilities and enhanced data become available.
›
Refer to “Managing sustainability and climate risks”
in this section and the sustainability and climate
risk policy framework,
available at
ubs.com/sustainability-reporting
, for further details on the implementation plans
to integrate sustainability and
climate risk into other risk categories as well as
progress to date
Climate
scenario
analysis
is
part
of
UBS
Europe
SE’s
stress
testing
framework.
Climate
scenario
analysis
allows
the
assessment of transition and physical risks across different severities of
climate change and time horizons. UBS Europe SE
leverages
corresponding risk
models for
major risk
types
including credit,
market,
liquidity, business
and non-financial
risks.
Annual Report 2024 |
Sustainability Statement | Other supplemental
information
71
Generally, the
material residual
risk categories
are capitalized
within
the internal
capital
adequacy assessment
process
(ICAAP). Therefore,
the potential
impact of
sustainability and
climate risk
on non-financial
risks and
reputational risk
is
considered in both ICAAP perspectives.
›
Refer to “Managing sustainability and climate risks“
in this section and in particular to the sections
“Risk identification and
measurement” and “Climate-related risk methodologies and
scenarios” for further information on climate
scenario analysis.
Metrics and targets
Regarding metrics, UBS Europe SE’s exposure
to carbon-related assets and climate risk
(both physical and transition risk)
as well as nature-related
risk is disclosed below.
Additional information on climate
risk and also information on UBS
AG
and UBS Europe
SE pursuant to Art. 8 of the EU Taxonomy
Regulation is disclosed in the below referred
sections.
›
Refer to “Managing sustainability and climate risks”
in this section for the “Risk management – climate-related
metrics” table
›
Refer to the “Sustainability and climate risk
policy framework”, available at
ubs.com/sustainability-reporting
, for more
information about the sustainability and climate risk
assessments table
›
Refer to “Information pursuant to Art. 8 of
the EU Taxonomy Regulation” in the “Sustainability statement” section of this report
In relation to the decarbonization commitment and
associated aspirations and targets, UBS Europe SE, as
part of the UBS
Group, works with a long-term focus on providing appropriate returns to our stakeholders
in a responsible manner. UBS
is committed to providing transparent aspirations, goals and targets
and reporting on the progress made against them.
›
Refer to “Environmental information”
in this section for detailed information on financed
emissions and targets
›
Refer to “Environmental information”
in this section for more information about financed
emissions methodologies (with UBS
Europe SE fully embedded in these)
Regarding financed
emissions, UBS
Europe SE
has low
exposure to
the specified
sectors defined
by the
Group. For
the
reporting
period,
the
exposure
within
the
scope
of
UBS
Europe
SE
to
decarbonization
targets
is concentrated
in
two
single positions related
to the power
generation sector, which
are being tracked
at the
Group level. In
relation to exposure
to the residential real estate sector, the mortgages portfolio is very limited, and it is not an active business; its
situation in
relation to the decarbonization commitment is in line with
the Group targets.
The following sections
explain the methodologies used
by UBS Europe
SE to assess
the impact that
transition risk, physical
risk and environmental / nature-related risk have on the
risk profile and business model of the legal entity.
›
Refer to “Managing sustainability and climate risks”
in this section, in particular the transition and
physical risks sections and
”Risk identification and measurement“, as well as “Climate-related
risk methodologies and scenarios” for more information
The nature-related risk
metric provides a snapshot
of UBS’s exposure to
economic sectors rated
as nature sensitive. This
metric is defined as the maximum
(worst-case) rating of either
that sector’s dependency on the
environment or impacts
to the
environment. As
a result,
lending exposure
data is
categorized by
risk ratings
based on
the current
state of
the
world.
UBS
Europe
SE
climate
transition
and
physical
risks
exposures
and
nature-related
risk
exposures
are
shown
below.
In
2024, the exposure to
carbon-related assets, transition
risk and nature-related
risk has increased due
to addition of real
estate exposure from
the Credit Suisse
integration. The increase
in climate-driven transition
risk, traded product
and issuer
risk is on account of a methodology change of services and technology sector, where certain business activities are rated
as sensitive due to increased use of artificial intelligence (AI) and
data center operations requiring higher use of energy.
Annual Report 2024 |
Sustainability Statement | Other supplemental
information
72
Risk management – Climate- and nature-related metrics
For the year ended
31.12.24
31.12.23
Climate- and nature-related metrics for UBS Europe SE (standalone)
(USD m)
1, 2
Carbon-related assets
3, 4, 5, 6
24.9
6.3
Total exposure to climate-sensitive sectors, transition risk
3, 5, 6, 7
25.2
9.4
Exposure to climate-sensitive sectors, transition risk: Traded products
6, 7, 8
92.9
1.3
Exposure to climate-sensitive sectors, transition risk: Issuer risk
6, 7, 9
96.5
4.4
Total exposure to climate-sensitive sectors, physical risk
3, 5, 6, 7
24.3
21.2
Exposure to climate-sensitive sectors, physical risk: Traded products
6, 7, 8
237.3
436.6
Exposure to climate-sensitive sectors, physical risk: Issuer risk
6, 7, 9
54.4
225.4
Total exposure to nature-related risks
3, 5, 7
24.8
7.3
Exposure to nature-related risks: Traded products
7, 8
11.0
30.4
Exposure to nature-related risks: Issuer risk
7, 9
2.7
3.8
1
Methodologies for assessing climate- and nature-related risks are emerging
and may change over time. As
the methodologies, tools and data availability
improve, we will further develop our
risk identification and
measurement approaches.
Lombard lending rating
is assigned based
on the average
riskiness of collateral.
2
UBS continues to
collaborate to
resolve methodological
and industry data
challenges, and
seeks to
integrate both impacts to
and dependencies on a
changing natural and climatic
environment, in how UBS
evaluates its risks and
opportunities.
3
Banking Products metrics for 2023
are recalculated and restated
based on the 2024 methodology for comparison purpose.
4
As defined by the Task Force on Climate-related Financial Disclosures (the TCFD), in its expanded definition published in 2021, UBS defines carbon-related
assets through industry-identifying attributes
of the firm’s
banking book. UBS further includes
the four non-financial sectors
addressed by the TCFD,
including, but not limited
to, fossil fuel
extraction, carbon-based
power generation, transportation
(air, sea,
rail, and auto
manufacture), metals production
and mining, manufacturing
industries, real
estate development, chemicals,
petrochemicals, and pharmaceuticals,
building
and construction materials and activities,
forestry, agriculture,
fishing, food and beverage production,
including trading companies that
may trade any of the
above (e.g. oil trading
or agricultural commodity trading
companies). This metric is agnostic
of risk rating, and therefore may include
exposures of companies that may be already
transitioning or adapting their business
models to climate risks, unlike
UBS climate-sensitive
sectors methodology, which
takes a risk-based
approach to defining
material exposure to
climate impacts.
5
Gross lending exposure
consists of total on
balance sheet loans
and advances to
customers and off-
balance sheet guarantees and irrevocable loan commitments (within the scope of expected credit loss).
6
As transition and physical risk rating models and physical risk heatmap model are embedded further into the
risk management framework, we may identify
new use cases that could trigger
validation of model for identified
use cases and associated enhancements.
As a consequence, restatement
of reported metrics may be
required.
7
Climate- and nature-related risks are scored
between 0 and 1, based on sustainability
and climate risk transmission channels.
Risk ratings represent a range
of scores across five rating categories:
low,
moderately low, moderate,
moderately high, and high.
The climate-
and nature-sensitive exposure metrics
are determined based upon the
top three of the five rated
categories i.e. moderate
to high.
8
For traded
products, the metric is calculated using
over-the-counter (OTC) derivatives, exchange-traded derivatives (ETDs) and securities financing transactions (SFTs),
consisting of securities borrowing and
lending, and repurchase
and reverse repurchase agreements.
9
For issuer risk, the metric is calculated upon HQLA assets, debt securities,
bonds, liquidity buffer securities.
The table below presents
the risk exposures by
sector across climate-
and nature-related risks. It
first shows total exposure
to each sector, followed by share of sensitive risk exposure
for each risk type.
Climate-
and nature-related risk exposures by sector for UBS Europe SE (standalone)
1, 2, 3, 4, 5, 6
Transition risk
Physical risk
Nature-related risk
7
Sector / Subsector
2024 exposure
(USD m)
2024 transition risk
climate-sensitive
exposure (USD m)
3
2024 physical risk
climate-sensitive
exposure (USD m)
3
2024 nature-related
risk exposure (USD m)
Agriculture
Agriculture, fishing and forestry
1.32
0.00
1.31
1.26
Food and beverage
1.54
1.54
0.79
0.01
Financial services
Financial services
247.59
0.00
0.01
0.00
Industrials
Electronics manufacture
0.05
0.05
0.00
0.00
Goods and apparel manufacture
1.15
1.15
0.00
1.15
Machinery manufacturing
0.83
0.83
0.00
0.83
Private lending
Lombard
8,041.92
0.00
0.00
0.00
Real estate
Development and management
20.41
20.41
0.00
20.41
Private clients with mortgages
8
315.24
0.00
0.00
0.00
Services and technology
Services and technology
85.63
0.13
22.17
0.00
Utilities
Power generation
1.13
1.13
0.00
1.13
Not classified
9
185.82
0.00
0.00
0.00
Grand Total
8,902.62
25.25
24.29
24.78
1
Methodologies for assessing
climate- and
nature-related risks
are emerging
and may
change over
time. As
the methodologies,
tools and
data availability
improve, we
will further
develop our
risk identification
and
measurement approaches. Lombard lending rating is assigned based on the average riskiness of loans.
2
Gross lending exposure consists of total on balance sheet loans and advances to customers and off-balance sheet
guarantees and irrevocable loan commitments (within the scope of expected credit loss) and is based on standalone IFRS numbers.
3
UBS continues to collaborate to resolve methodological and industry data challenges,
and seeks to integrate both
impacts to and dependencies on
a changing natural and climatic
environment, into how UBS evaluates
its risks and opportunities.
4
Climate- and nature-related risks are
scored between 0
and 1, based on sustainability and climate risk transmission
channels. Risk ratings represent a range of scores across five rating categories: low, moderately low, moderate, moderately high, and high. The climate- or nature-
sensitive exposure metrics are determined based upon the top three of the five rated categories i.e.
moderate to high.
5
Over the last year, the UBS Group continued its effort
to integrate Credit Suisse systems and data.
As a result, metric calculation process benefits from
data enhancement even when methodology remains same year
on year. At the
same time, integration work is ongoing
and expected to bring in further data alignment
in future, which may require restatement of reported metrics.
6
As transition and physical risk rating models and physical risk heatmap model are embedded further into the risk management framework, we may identify
new use cases that could trigger validation of
model for identified use cases and associated enhancements.
As a consequence, restatement of reported metric
may be required.
7
Nature-related risk metric methodology
has been further strategically
enhanced, with updates carried
out internally by UBS.
8
The real estate segments
have been aligned with the
expected credit loss segments
UBS applies under IFRS.
Real estate financing
includes rental or income-producing real estate financing to
private and corporate clients secured by real
estate. Private clients with mortgages include
lending to private clients secured by owner-occupied
real estate and
personal account overdrafts of those clients.
9
Not classified represents the portion of UBS’s business activities where methodologies and data are not yet
able to provide a rating.
Annual Report 2024 |
Sustainability Statement | Other supplemental
information
73
Transition risk
The
transition
risk
heatmap
below
shows
that
at
year-end
2024,
the
majority
of
UBS Europe
SE
exposure
is
rated
as
moderately low (95.84%), whereas the climate-sensitive exposure of total gross lending exposure is immaterial (0.28%).
The majority of the climate-sensitive exposure is concentrated
mainly in the real estate sector.
Physical risk
The
physical
risk
heatmap
below
shows
that
at
year-end
2024,
the
majority
of
UBS
Europe
SE
exposure
is
rated
at
moderately low (91.55%) , whereas the
climate-sensitive exposure of total gross lending exposure is
immaterial (0.27%).
Annual Report 2024 |
Sustainability Statement | Other supplemental
information
74
Annual Report 2024 |
Sustainability Statement | Other supplemental
information
75
Nature-related risk
The nature-related risk heatmap below shows that at year-end 2024, the majority of UBS Europe SE exposure
is rated as
low (96.88%), whereas the nature
-sensitive sectors exposure is immaterial (0.28%).
Annual Report 2024 |
Sustainability Statement | Other supplemental
information
76
Basis of preparation – UBS Europe SE climate- and
nature-related metrics
The basis of preparation provides
information on the definition, scope,
methodology and assumptions used to
calculate
and
report
2024
metrics
that
UBS
discloses.
Each
metric
is
prepared
in
accordance
with
an
internal
procedure
that
specifies processes, reporting
systems, data sourcing,
roles and responsibilities,
methodologies and controls.
The design
of these metrics considers prevailing reporting frameworks and industry best practices. UBS regularly reviews the metrics
that are disclosed and may make updates or changes in line with its business priorities, regulatory requirements, industry
standards and market practices.
Theme
Sustainability and climate risk
Metric(s)
Carbon-related assets (USD m)
Legal entity
UBS Europe SE (standalone)
Definition
and method
Carbon-related assets are defined as concentrations of
credit exposure to assets tied to the four non-financial
groups as defined by the
Task Force on Climate-related Financial Disclosures (TCFD) (using Global Industry Classification
Standard, GICS). These four groups are:
(i) energy; (ii) transportation; (iii) materials and
buildings; and (iv) agriculture, food and forest products. Recognizing
that the term
carbon-related assets is currently not well defined, the
TCFD encourages banks to use a consistent
definition to support comparability.
The metric is calculated for UBS Europe SE (standalone)
on the total on-balance sheet loans and advances
to customers and off-
balance sheet guarantees and irrevocable loan commitments
(within the scope of expected credit loss) and is
based on standalone IFRS
numbers.
The carbon-related assets metric is the total exposure
of assets in the four non-financial groups as
defined by the TCFD in its expanded
definition published in 2021. UBS defines
carbon-related assets through industry-identifying attributes
of the firm’s banking book. It
also includes the four non-financial sectors
addressed by the TCFD, including but not limited
to, fossil fuel extraction, carbon-based
power generation, transportation (air, sea, rail and auto manufacture), metals
production and mining, manufacturing industries, real
estate development, chemicals, petrochemicals,
and pharmaceuticals, building and construction
materials and activities, forestry,
agriculture, fishing and food and beverage production,
also including trading companies that
may trade any of the above (e.g. oil
trading or agricultural commodity trading companies).
This metric is agnostic of risk rating, and therefore
may include exposures of
companies that may be already transitioning or
adapting their business models to climate risks,
unlike UBS climate-sensitive sectors
methodology, which takes a risk-based approach to defining material exposure
to climate impacts. Economic sectors
are classified
according to the Group Industry Code 2.0 (GIC2.0) which
comprises a hierarchical structure, and further dissected
using the heatmap
segmentation. Internal UBS GIC2.0 sectors
/ subsectors are utilized.
Theme
Sustainability and climate risk
Metric(s)
Total exposure to climate-sensitive sectors, transition risk (USD m)
Legal entity
UBS Europe SE (standalone)
Definition
and method
Sustainability and climate risks may manifest
as credit, market, liquidity and / or non-financial risks
for UBS, resulting in potential
adverse financial, liability and / or reputational impacts.
These risks extend to the value of investments
and may also affect the value of
collateral (e.g. real estate).
Climate risks can arise from efforts to mitigate climate
change (transition risks). Transition risks from efforts to address a changing
climate may contribute to a structural
change across economies and can consequently
affect banks and the stability of the broader
financial sector through financial and non-financial
impacts.
The metric is calculated for UBS Europe SE (standalone)
for banking products, traded products and issuer risk.
For banking products, the metric is calculated on total
on-balance sheet loans and advances to customers
and off-balance sheet
guarantees and irrevocable loan commitments (within
the scope of expected credit loss) and is based
on standalone IFRS numbers.
For traded products, the metric is calculated on over-the-counter
(OTC) derivatives, exchange-traded derivatives
(ETDs) and securities
financing transactions (SFTs), consisting of securities borrowing and lending, and
repurchase and reverse repurchase agreements.
Issuer risk, also known as tradable single name
exposures, refers to the price and other risks resulting from changes
in the financial
condition of a specific issuer that cannot be
attributed to general market risk. For issuer
risk, the metric is calculated on HQLA assets,
debt securities, bonds and liquidity buffer securities.
In 2024, UBS launched a transition risk rating
model (TR RM), designed to provide a company-level
rating of transition risk, where
input data is available. The model methodology
mainly relies on two inputs: the output of the transition
risk heatmap (TR HM), which
is based on the counterparty’s sectoral classification
and country group, and the Company Transition Assessment Scorecard (CTAS).
CTAS is an internal UBS tool that provides sector-agnostic assessment
of companies, categorizes large, listed
companies based on the
data collected from external providers and summarizes
them into a category that is indicative of
each firm’s stance towards net-zero
alignment. In the TR RM,
the counterparty’s TR HM rating is adjusted
based on the distance between the net-zero
stance of a
company and that of its group’s median via the CTAS. Whenever CTAS does not provide an assessment
for a company, the model
relies exclusively on the TR HM. The coverage of
TR RM depends on CTAS, which in turn, depends on the data
collected from external
providers. Once data is available for a wider set
of companies, the coverage of TR RM is
expected to improve.
The TR HM methodology is based upon
a risk segmentation process, first dividing financing
types and then rating economic sectors
and sub-industry segments that share similar climate-risk
vulnerability characteristics. Climate transition
risk scores and ratings are
assigned to sectors and segments according to their
vulnerability to (i) climate policy, (ii) low-carbon technology risks, and
(iii) revenue
or demand shifts under an immediate, ambitious,
and disorderly approach to meeting the well-below-2˚C
Paris Agreement goal. The
risk ratings can be used to support the identification
of potential climate-sensitive concentrations
and further analysis. The ratings in
the heatmap reflect the levels of risk that would
likely occur under an ambitious transition
(in the short term, 0–3 years) and disorderly
with respect to diversification of policy stringency
across developing and industrialized countries.
The countries are classified as either
industrialized countries ("IC") or emerging
markets countries ("EM"), as per UBS country
risk policy.
UBS derived the methodological approach for
the transition risk assessment from an active collaboration
with the United Nations
Environment Programme Finance Initiative (UNEP-FI) and
Oliver Wyman. Assessments are derived as part of
the 2018–2022
collaboration with the UNEP-FI based on Integrated
Assessment Modelling Consortium (the
IAMC) scenario information along with
academic research supporting risk rating analysis.
The collaboration included development of the
initial TR HM methodology. Since the
original version, UBS has further established
the ratings and risk segmentation process in-house,
reflecting changes in risk profile on
the ground, evolving in-house views on climate
risk materiality, and UBS’s own business footprint.
Annual Report 2024 |
Sustainability Statement | Other supplemental
information
77
The TR HM provides transition risk ratings based on
both the country of risk domicile and internal
UBS industry classification Group
Industry Code 2.0 (GIC2.0), while the
TR RM provides company-level ratings. Both the TR
HM and the TR RM rely on a five -point
rating scale: low, moderately low, moderate, moderately high, high and moderately
high. Climate sensitive sectors and subsectors
are
defined as those business activities that are rated
as having high, moderately high, or moderate
vulnerability to transition risks.
UBS lending exposure is then mapped to the counterparty-level
rating (TR RM), or else, when counterparty-specific
input data is
missing or data quality is not sufficient, the transition
risk ratings from TR HM are used as fallback based on
the counterparty’s country
of risk domicile and sector classification
(GIC2.0). The exposures that are not mapped due to
the absence of counterparty-level ratings
and sector / country-based risk ratings are treated as
“not classified”.
Additionally, to increase the granularity of risk ratings and coverage for key financial
institutions and corporate clients booked
in
specific legal entities, a bespoke company-level
assessment is carried out. The assessment is done
outside of TR RM; however, the
rating is combined with the TR RM output
in a final unified output table.
Lombard lending is assigned an overall rating based
on the average riskiness of the collaterals that
are posted backing the loans,
applying the heatmap methodology to the
issuer of the collaterals, and on an internal
adverse scenario analysis (yielding an overall
moderately low-risk rating).
For real estate financing and private clients with
mortgages, an expert-based overall rating is
assigned based on internal analyses of
UBS real estate portfolios. Additionally, real estate financing to corporate clients
is assigned the worst of the portfolio rating and
the
client rating as per TR HM.
Theme
Sustainability and climate risk
Metric(s)
Total exposure to climate-sensitive sectors, physical risk (USD m)
Legal entity
UBS Europe SE (standalone)
Definition
and method
Sustainability and climate risks may manifest
as credit, market, liquidity and / or non-financial risks
for UBS, resulting in potential
adverse financial, liability and / or reputational impacts.
These risks extend to the value of investments
and may also affect the value of
collateral (e.g. real estate). Climate risks can arise from changing
climate conditions (physical risks). Physical
risks from a changing
climate may contribute to a structural
change across economies and can consequently
affect banks and the stability of the broader
financial sector through financial and non-financial
impacts.
The metric is calculated for UBS Europe SE (standalone)
for banking products, traded products, and issuer
risk.
For banking products, the metric is calculated on total
on-balance sheet loans and advances to customers
and off-balance sheet
guarantees and irrevocable loan commitments (within
the scope of expected credit loss) and is based
on standalone IFRS numbers.
For traded products, the metric is calculated on over-the-counter
(OTC) derivatives, exchange-traded derivatives
(ETDs) and securities
financing transactions (SFTs), consisting of securities borrowing and lending, and
repurchase and reverse repurchase agreements.
Issuer risk, also known as Tradable Single Name Exposures, refers to the price and other
risks resulting from changes in the financial
condition of a specific issuer that cannot be
attributed to general market risk. For issuer
risk, the metric is calculated on HQLA assets,
debt securities, bonds and liquidity buffer securities.
In 2024, UBS developed a physical risk rating
model (PR RM) that is aligned with the physical
risk heatmap model (PR HM) and provides
the rating at a company-level when its asset-level
data is available. Both the PR RM and the
PR HM consider company type, and neither
the existence or the type of collateral, nor the
type of relationship the bank has with the company
are factored in. The PR HM has a
broader scope of application compared to the PR RM. The
PR HM applies an aggregation logic to generate ratings
for all companies in
relevant sector-country combinations, providing average estimates, while
the PR RM provides a company-level rating when
its asset-
level data has information on the associated
climate physical risk. The developed physical
risk heatmap methodology will be validated
for the corporate entities in real estate financing
and in Global Wealth Management for non-Lombard loans
and unsecured lending in
due course.
The PR RM and PR HM measure how four acute physical
risk hazards (wildfires, heatwave, floods, and tropical cyclones)
may drive
current physical risk of UBS counterparties.
The physical risk is measured by a score calculated by combining
a physical risk exposure metric derived from asset-level data,
sourced
from ESG data vendors. The PR HM isolates assets
falling under the same sector and location
(country of risk domicile) to calculate a
sector-country level physical risk score for each of the four hazards. Due
to data limitations from our vendor feed, for
some sector-
country combinations such representative population is
not large enough to infer reliable metrics. In
these cases, increasingly wider
geographies are considered until reliability is minimally ensured. To account for data concentrations,
a penalization factor is applied to
sector-country exposure scores. The hazard specific physical exposure scores are further amplified
/ mitigated by considering the level
to which each sector is vulnerable / resilient to
a particular hazard. At this step, multiple risk transmission
channels are taken into
account. Specific to the PR RM, sufficient geographic
diversification of a counterparty’s assets
acts as a mitigant of the physical risk
exposure scores.
At the final stage, exposure scores are aggregated across transmission
channels and hazards to derive a single physical
rating score.
The score is mapped to a five-point rating scale:
low, moderately low, moderate, moderately high, high. Climate-sensitive
sectors are
defined as those business activities that are rated
as having high, moderately high or moderate
vulnerability to physical risk.
UBS lending exposure is then mapped to the counterparty-level
rating (PR RM), or else, when counterparty-specific
asset data is
missing or data quality is not sufficient in our vendor
feed, the physical risk ratings from PR HM are used
as fallback based on the
counterparty’s country of risk domicile and
sector classification. The exposures that are not mapped
due to absence of counterparty-
level rating and sector / country-based risk rating
are treated as “not classified”. To drive the top-down classification of risk, the
internal UBS Group Industry Code 2.0 (GIC2.0)
is used to classify economic sectors in a hierarchical
structure.
For real estate financing and private clients with
mortgages, an expert-based overall rating is
assigned based on internal analyses of
UBS real estate portfolios, with a focus on flooding
risk in Switzerland. Additionally, real estate financing to corporate clients is
assigned the worst of the portfolio rating
and the client rating as per PR HM.
Lombard lending is assigned an overall rating based
on the average riskiness of the collaterals that
are posted backing the loans,
applying the heatmap methodology to the
issuer of the collaterals, and on an internal
adverse scenario analysis (yielding an overall
moderately low-risk rating).
Annual Report 2024 |
Sustainability Statement | Other supplemental
information
78
Theme
Sustainability and climate risk
Metric(s)
Total exposure to nature-related risks (USD m)
Legal entity
UBS Europe SE (standalone)
Definition
and method
Sustainability and climate risks may manifest
as credit, market, liquidity and / or non-financial risks
for UBS, resulting in potential
adverse financial, liability and / or reputational impacts.
These risks extend to the value of investments
and may also affect the value of
collateral (e.g. real estate). Nature-related risks can arise from
economic and human dependency upon
ever-changing environmental
conditions and / or how human activities
(and economies) may adversely impact those
very conditions, which we rely upon. A
degrading environment, and its ecosystem services
(like biodiversity, clean air, fresh water,
and more) may contribute to a structural
change across economies and consequently can
affect banks and the stability of the broader financial
sector through financial and
non-financial impacts.
The metric is calculated for UBS Europe SE (standalone)
for banking products, traded products, and issuers
(issuer risk).
For banking products, the metric is calculated on total
on-balance sheet loans and advances to customers
and guarantees along with
off-balance sheet irrevocable loan commitments (within
the scope of expected credit loss) and is based
on standalone IFRS numbers
For traded products, the metric is calculated using over
the counter (OTC) derivatives, exchange-traded
derivatives (ETDs) and securities
financing transactions (SFTs), consisting of securities borrowing and lending, and
repurchase and reverse repurchase agreements.
Issuer risk, also known as Tradable Single Name Exposures, refers to the price and other
risks resulting from changes in the financial
condition of a specific issuer that cannot be
attributed to general market risk. For issuer
risk, the metric is calculated based on
HQLA
assets, debt securities, bonds, liquidity buffer
securities.
The nature-related risk metric provides a snapshot of UBS’s
exposure to economic sectors rated as nature sensitive.
This metric is
defined as the maximum (worst-case) rating
of either that sector’s dependency on the
environment or impacts to the environment. As
with climate-related risks, sensitive is defined
as the top three ratings (high, moderately high, or
moderately rated) on a five-point
rating scale. Moderately low and low ratings
are defined as non-sensitive.
The driving methodology is derived from the Exploring
Natural Capital Opportunities, Risks and
Exposure (ENCORE) methodology
(2018-2023).
ENCORE (2018-2023) is based on a four-tier
system:
–
Natural capital assets: defined as the most basic
unit of the environment (e.g. geology, soil, air, water).
–
Ecosystem services: assets combine to form
services (i.e. air and trees combine to purify carbon
dioxide and provide oxygen).
–
Economic production processes: they are grouped into more classical economic
sub-sectors.
–
The scientifically
informed ratings
given by
ENCORE on
how production
processes may
impact and
/ or
depend on
ecosystem
services.
UBS internal primary industry codes
(Group Industry Code, GIC 2.0) are mapped to the
ENCORE database through the link to Global
Industry Classification Standard (GICS) codes provided
by ENCORE. UBS maintains official bank-wide
mapping of the external GICS to
the internal GIC 2.0 database. This is
one of the improvements to the nature-related risk heatmap in
2024 improving the quality of the
mapping process.
The ratings for nature-related risk dependencies of a
sector consider the potential (i) loss of functionality
of a production process and
(ii) financial loss, if for example the ecosystem
service is disrupted. The ratings for nature-related impact
consider how severe, quick
and frequent a production process can disrupt ecosystem services
or deplete natural capital stocks. Ratings
(ranging from low to high)
are based on integral scores (ranging from 0 to 5 for dependencies,
0 to 4 for impacts). For each production process,
dependency
values are summed across ecosystem services and impact
values are summed across impact drivers, which gives
two aggregated values
per production process. These values are then normalized to
0-1 scores by setting the largest observed value
(across production
processes) to the maximum relative risk and the smallest
observed value to the minimum relative risk
and treating all others linearly. If
more than one production process is associated with the
sub-industry, the worst (highest risk, highest value) dependency score and the
worst impact score are mapped to the sub-industry. The use of normalized scores for each
production process is one of the key
methodology updates in 2024. For each UBS
GIC2.0 code, an overall nature-related risk rating is determined
by taking the maximum
score across dependency and impact. UBS lending exposure
is then mapped to the nature-related risk heatmap based
on the
counterparty’s GIC2.0. Exposures that are not mapped
are treated as “not classified”.
For real estate financing and private clients with
mortgages, an expert-based rating is assigned
based on internal analyses of UBS
real
estate portfolios. Additionally, real estate financing to corporate clients is
assigned the worst of the portfolio rating
and the client
rating.
Lombard lending is assigned an overall rating based
on the average riskiness of the collaterals that
are posted backing the loans,
applying the heatmap methodology to the
issuer of the collaterals, and on an internal
adverse scenario analysis (yielding an overall
low-risk rating).
Annual Report 2024 |
Sustainability Statement | Other supplemental
information
79
Climate-related risk methodologies and scenarios
This section
provides an
overview of
our target
approach to
integrating climate-related
risks into
other risk
categories,
along
with
an
overview
of
our
scenario
analysis
and
of
the
methodological
approaches
taken
in
developing
our
sustainability and climate risk analytics.
UBS’s target approach to integrating climate risk into
risk management framework across risk categories
Integration of climate risk: target approach
Process
Credit risk
Market risk
(traded and non-traded)
Non-financial risk (NFR)
Reputational risk
Liquidity risk
Systematic integration of climate risk into the firm’s risk identification processes and stress testing framework
Risk identification and
measurement
UBS identifies and measures
material concentrations of
exposure to climate-related
risk across sensitive
geographies, sectors and
counterparties.
Climate risk scenario analysis
and stress testing enable UBS
to assess risks along different
climate-related pathways and
time horizons up to 30 years,
for an assessment of capital
and risk-weighted asset
(RWA).
UBS identifies new
transmission channels of
market risk impacts by
assessing market-based
responses to climate-related
risk drivers.
This process involves
monitoring potential impacts
on the value of UBS’s
positions that may be
materially affected by climate-
related-risk-driven price and /
or volatility shifts.
UBS deploys custom climate-
related stress modeling to
quantify potential losses from
changes in market variables,
such as interest rates, foreign
exchange rates, credit
spreads, equity and
commodity prices, as well as
correlations and volatility, etc.
NFR implications are
assessed across compliance,
financial crime and
operational risk taxonomies,
including business continuity
risk, to enable UBS to identify
potential deficiencies in
internal processes or
vulnerabilities to external
events.
Clients, new transactions,
products and services go
through standard review and
decision processes prior to
UBS conducting business.
These processes support the
identification, assessment and
escalation of potential
reputational risk.
The design and operating
effectiveness of the
framework rely on including
the sustainability and climate-
related risk management
processes. Examples include:
–
client onboarding (financial
crime prevention / anti-
money laundering / know
your customer);
–
sustainability and climate
risks;
–
suitability and
appropriateness review;
–
new business and complex
transaction approval
processes; and
–
third-party risk
management and
outsourcing and offshoring
processes.
As part of the
sustainability and
climate risk initiative,
we will continue to
build out the climate-
related risk
identification process
for liquidity risk.
We plan to assimilate
insights gained from
our efforts to quantify
and integrate climate -
related credit and
market risks, to
collectively determine
how liquidity risks may
be more accurately
captured. We see the
integration of climate
risk into liquidity risk
management (as with
other climate risks) as
an iterative process,
improving the quality
of data, analytics and
insights over time.
Execution of BoD- and GEB-defined risk appetite for sustainability and climate
risks, based on identified material risks
Monitoring and risk
appetite setting
Integration of (quantitative)
climate-related risks into
the firm’s risk appetite
framework, including, but
not limited to, climate-
related portfolio
concentration limits
(considering materiality
thresholds). The process
includes ongoing
monitoring of potential
emerging sources of credit
risk related to climate-
related risk.
Integration into market risk-
monitoring processes,
reflecting insights from risk
identification and ongoing
assessment of exposure to
industry sectors, sovereign
debt, commodity prices,
foreign exchanges rates and
interest rates.
This includes an assessment
of potential material
climate-sensitive exposure
(to sectoral, geographic and
/ or asset type).
Monitoring and risk
appetite setting based on
BCBS principle alignment
into existing NFR
assessment and monitoring
processes to explicitly
contemplate sustainability
and climate risks and
support control mapping
considerations to trigger
standard NFR materiality
determinations for related
risk exposures when
conducting taxonomy risk
appetite statement
assessments.
Our risk appetite
framework ensures that
risk-taking at every level of
the firm is in line with our
strategic priorities and
capital and liquidity plans,
and with our pillars,
principles and behaviors.
The framework takes a
comprehensive approach,
integrating all material risks
from across the firm.
Ongoing monitoring and
surveillance activities and
escalation processes are in
place to protect UBS’s
franchise and reputation.
We aim to integrate
material climate-related
risks into the liquidity risk
monitoring processes
based on insights from risk
identification and ongoing
assessments of additional
liquidity impacts from a
climate-related risk
perspective.
Annual Report 2024 |
Sustainability Statement | Other supplemental
information
80
Integration of climate risk: target approach
Process
Credit risk
Market risk
(traded and non-traded)
Non-financial risk (NFR)
Reputational risk
Liquidity risk
Quantitative and qualitative integration of sustainability and climate
risk principles into risk management frameworks and processes
Risk management and
control
Integrating climate-related
risk considerations into the
credit lifecycle, including
onboarding, deal review,
collateral valuation and
periodic credit processes,
enables UBS to mitigate the
potential for climate-related
credit losses.
Driven by proprietary
methodologies (e.g.
heatmaps, counterparty-
level / issuer-level rating
models) and qualitative or
quantitative integration
into risk metrics (e.g.
probability of default) and
decision-making.
Management and controls
measures may include the
setting of limits, portfolio
management (e.g. hedges)
and / or business
acceptance criteria.
Climate-related
considerations are
integrated into market risk
processes, which may result
in enhancements to
management systems and
processes and challenges to
existing risk control
measures.
Embedding of ESG
(environmental, social and
governance) factors into
NFR assessment and
control frameworks,
including enhancements to
new business initiatives,
client onboarding, oversight
of marketing materials
related to sustainability,
business continuity
planning adaptations and /
or minimum product
standards of sustainability
characteristics.
Ongoing review of
framework design and the
operating effectiveness and
ESG controls embedded in
key processes, such as new
business controls and
suitability and
appropriateness reviews,
enables UBS to
continuously evolve its
reputational risk
management capacity.
We aim to integrate
identified material risks
into our internal liquidity
risk management
framework. We recognize
climate-related risk drivers
may transmit to liquidity
adequacy through our
ability to raise funds and
liquidate assets, or
indirectly through our
customers’ demands for
liquidity (e.g. given a
market or physical climate
shock).
Internal reporting and external disclosures on climate-related risk
Timely reporting of material changes in climate-driven risk identification,
quantification and monitoring, and in utilization of
risk appetite and / or key risk management and control
decisions. This includes integration of climate-related credit and market risk metrics (e.g. climate-driven delta risk or expected
credit loss from climate-sensitive loans) in standard
internal risk reports at the level of the Group, significant Group entities
and / or business divisions.
A Group-consolidated view of all high-inherent-risk cases
that have been raised through the reputational risk review process
is integrated quarterly into the Group Risk Report.
Enhance automation of risk metrics into external disclosure
processes, accompanied by materially relevant information on climate risk
identification, monitoring (e.g. new transmission
channels), exposure trends and mitigating actions.
Note: As climate risk analysis is a novel area of research, with methodologies, tools and data availability
still evolving, we will continue to develop our risk identification and measurement approaches.
Climate-related risk methodologies
We
have
developed
climate-related
risk
methodologies,
which
rate
cross-sectoral
exposures
to
climate-related
risk
sensitivity on
a scale
from high
to low.
Following a
risk segmentation
approach, these
methodologies define
“climate-
sensitive” exposures by aggregating the riskier three of
five risk ratings (absolute, in USD)
over the total lending exposure
to customers
(on- and
off-balance sheet,
percent). In
general, our
climate-related sector-level
heatmaps and
company-
level climate risk rating models provide three key benefits
in UBS risk management strategy, by helping with:
–
risk
identification
and
measurement:
by
identifying
sectors
and
segments
that
are
potentially
vulnerable
to
the
transmission channels of climate-driven financial and non-financial risks, which,
in turn, enables resource prioritization
for detailed bottom-up risk analysis;
–
monitoring and risk
appetite setting:
by helping to
monitor sustainability
and climate
risk exposures and
to facilitate
risk appetite setting for material risks;
–
risk management and
control: by helping
to understand and
monitor UBS's exposure
to climate-related risks
and which
transmission channels may increase or augment the risk
profile supporting a risk mitigating strategy; and
–
risk
reporting
and
disclosure:
by
providing
decision-relevant
information
in
internal
reports
to
executive
and
board
leadership and external disclosure to stakeholders.
Annual Report 2024 |
Sustainability Statement | Other supplemental
information
81
Transition risk
Physical risk
Methodology
(heatmap)
Originally developed in collaboration with UNEP-FI and Oliver Wyman,
our
expert-based transition risk ratings have been further refined in-house by
UBS. These ratings and risk segmentation processes now reflect changes in
risk profiles, evolving views on climate risk materiality, and UBS's business
footprint. Sectors are assigned climate transition risk scores (0-1)
and
ratings (low to high). Geographic information and counterparties
is captured
by distinguishing between emerging and industrialized
countries. As a
result, lending exposure data is categorized by risk ratings, through their
sectoral and country designation.
A score is calculated at sector / country level based on a geographically
and
economically representative physical asset population
collected from vendor
data. A hazard-specific exposure score is determined as an
average, with a
penalty applied for the variance of the population, which is augmented
by
channels that amplify / mitigate the risk at sector level. A final
score is then
obtained by aggregating across hazards. This score is ranged within a rating
(low / moderately low / moderate / moderately high / high). As a result,
lending exposure data is categorized by risk ratings, through their sectoral
and country designation.
Methodology (rating
models)
The model produces a counterparty-level assessment (on the same scale as
described above) by adjusting the heatmap rating using data
on a
company’s alignment to net-zero targets, captured via CTAS, where
available.
The model generates firm-level physical risk scores by aggregating physical
hazards and transmission channels, and applying suitable mitigants, when
data on a representative number of assets is available for a company. This
approach aligns with the physical risk heatmap methodology
and provides a
company-level rating based on asset-level data.
Timelines
Short-term (0–3 years)
Short-term (0–3 years)
Scenario
Ambitious and disorderly approach to meeting <2˚C goals
of the Paris
Agreement
Current state of world
Interpretation
Reflect levels of risk and likelihood of financial impact and exposure based
on the defined scenario.
Reflect level of risk and likelihood of financial impact and exposure based
on a current state of world
Examples
At sector / country level:
High for most fossil fuel sectors; moderate for most transportation and
industrial sectors.
At sector / country level:
Moderately high for some manufacturers in Southeast Asia (due
to
typhoons); moderately low for the same manufacturers in Switzerland
(due
to fluvial dynamics).
Below
table
provides
climate-driven
transition
and
physical
risk
sensitive
exposure
for
UBS
AG
(standalone),
UBS
Switzerland AG (standalone) and UBS Europe SE (standalone).
Risk management – Climate-related metrics
For the year ended
31.12.24
31.12.23
Climate-related metrics (USD bn)
1, 2, 3, 4, 5
Exposure to climate-sensitive sectors, transition
risk: Traded products,
UBS AG (standalone)
6
0.70
0.23
Exposure to climate-sensitive sectors, transition
risk: Traded products,
UBS Switzerland AG (standalone)
6
1.27
0.66
Exposure to climate-sensitive sectors, transition
risk: Traded products,
UBS Europe SE (standalone)
6
0.09
0.00
Exposure to climate-sensitive sectors, transition
risk: Issuer risk, UBS AG (standalone)
7
6.05
4.29
Exposure to climate-sensitive sectors, transition
risk: Issuer risk, UBS Switzerland AG (standalone)
7
0.25
0.00
Exposure to climate-sensitive sectors, transition
risk: Issuer risk, UBS Europe SE (standalone)
7
0.10
0.00
Exposure to climate-sensitive sectors, physical risk: Traded
products, UBS AG (standalone)
6
1.23
4.51
Exposure to climate-sensitive sectors, physical risk: Traded
products, UBS Switzerland AG (standalone)
6
0.21
1.08
Exposure to climate-sensitive sectors, physical risk: Traded
products, UBS Europe SE (standalone)
6
0.24
0.44
Exposure to climate-sensitive sectors, physical risk: Issuer risk,
UBS AG (standalone)
7
7.76
8.52
Exposure to climate-sensitive sectors, physical risk: Issuer risk,
UBS Switzerland AG (standalone)
7
0.40
0.84
Exposure to climate-sensitive sectors, physical risk: Issuer risk,
UBS Europe SE (standalone)
7
0.05
0.23
1
Methodologies for assessing climate-related risks are emerging and may change over time. As the methodologies,
tools, and data availability improve, we
will further develop our risk identification and measurement
approaches. Lombard lending rating is assigned based on the average riskiness of collateral.
2
Over the last year, the UBS Group continued its effort to integrate Credit Suisse systems and data. As a result, the metric
calculation process benefits from data enhancement even when methodology remains same year on year.
At the same time, integration work is ongoing and expected to bring
in further data alignment in future which
may require restatement of reported metrics.
3
UBS continues to collaborate to resolve methodological
and industry data challenges, and seeks
to integrate both impacts to and
dependencies on a changing natural
and climatic environment, into how UBS evaluates its risks and opportunities.
4
Climate-related risks are scored between 0 and 1, based on sustainability and climate risk transmission channels. Risk ratings represent
a range of scores across five rating
categories: low, moderately
low, moderate,
moderately high, and high. The
climate-sensitive exposure metrics are determined
based upon the top three of the
five rated categories
i.e. moderate
to high.
5
As the transition
and physical risk
rating models and
physical risk heatmap
are embedded further
into the risk
management framework, we
may identify new
use cases that
could trigger
validation of model for identified use cases
and associated enhancements. As a consequence,
restatement of reported metrics may be required.
6
For traded products, the metric
is calculated using over-the-counter
(OTC) derivatives, exchange-traded derivatives
(ETDs) and securities financing transactions (SFTs), consisting of securities borrowing and lending, and repurchase
and reverse repurchase agreements.
7
For issuer risk,
the metric is calculated upon HQLA assets, debt securities, bonds,
liquidity buffer securities.
Annual Report 2024 |
Sustainability Statement | Other supplemental
information
82
Scenario analysis
We have
been using
scenario-based approaches
to assess
our exposure
to physical
and transition
risks stemming
from
climate change since 2014. The table below summarizes the
scenarios used by UBS.
Scenario name
Developed
by
Temperature
alignment
Type
3
Carbon
dioxide
removal
(CDR)
4
Description (as provided by the developing organization)
Net Zero 2050
(2023)
NGFS
+1.5°C
Orderly
Moderate
reliance
Net Zero 2050 is an ambitious scenario that limits global
warming to 1.5°C, with
stringent climate policies and innovation, reaching net-zero CO₂
emissions around
- Some jurisdictions, such as the US, the EU and Japan, reach net zero for all
greenhouse gases by this point. This scenario assumes that ambitious
climate
policies are introduced immediately. CDR is used to accelerate decarbonization but
is kept to the minimum possible and broadly in line with sustainable levels
of
bioenergy production. Net CO₂ emissions reach zero around
2050, giving at least a
50% chance of limiting global warming to below 1.5°C by
the end of the century,
with no or low overshoot (<
0.1°C) of 1.5°C in earlier years. Physical risks are
relatively low, but transition risks are high.
Delayed
Transition
(2023)
NGFS
+1.8°C
Disorderly
Low
reliance
Delayed Transition assumes that global annual emissions do not decrease until
- Strong policies are then needed to limit warming to below
2°C. Negative
emissions are limited. This scenario assumes that new climate policies
are not
introduced until 2030 and the level of action differs across countries
and regions
based on currently implemented policies, leading to a “fossil recovery”
out of the
economic crisis brought about by COVID-19. The availability of CDR technologies is
assumed to be low, pushing carbon prices higher than in Net Zero 2050.
As a result,
emissions exceed the carbon budget temporarily and decline more
rapidly than in
well-below 2°C after 2030, to ensure a 67% chance
of limiting global warming to
below 2°C. This leads to both higher transition and physical risks than Net Zero
2050 and below 2°C scenarios.
Below 2°C
(2023)
NGFS
+1.8°C
Orderly
Moderate
reliance
Below 2°C gradually increases the stringency of climate policies, giving a 67%
chance of limiting global warming to below 2°C. This scenario assumes that climate
policies are introduced immediately and become gradually more
stringent, though
not as high as in Net Zero 2050. CDR deployment is relatively
low. Net-zero CO₂
emissions are achieved after 2070. Physical and transition risks
are both relatively
low.
Fragmented
World (2023)
NGFS
+2.3 °C
Too little
too late
Low–
medium
reliance
Fragmented World assumes a delayed and divergent climate policy response among
countries globally, leading to high physical and transition risks. Countries with net-
zero targets achieve them only partially (80% of
the target), while the other
countries follow current policies.
Current Policies
(2023)
NGFS
+3.0°C
Hothouse
world
Low
reliance
Current Policies assumes that only currently implemented policies are preserved,
leading to high physical risks. Emissions increase until 2080, leading
to about 3°C of
warming and severe physical risks. This includes irreversible changes, such as higher
sea levels. This scenario can help central banks and supervisors consider the long-
term physical risks to the economy and financial system if
we continue on our
current path to a “hothouse world”.
Nationally
Determined
Contributions
(2023)
NGFS
~2.5°C
Hothouse
world
Low
reliance
Nationally Determined Contributions (NDCs) includes all
pledged policies, even if not
yet implemented. This scenario assumes that the moderate and heterogeneous
climate ambition reflected in the NDCs at the beginning of
2021 continues over the
course of the 21st century (low transition risks). Emissions decline but
lead
nonetheless to about 2.5°C of warming associated with moderate
to severe physical
risks. Transition risks are relatively low.
Low Demand
(2023)
NGFS
+1.5°C
Orderly
Moderate
reliance
Low Demand assumes that significant behavioral changes
– reducing energy
demand – in addition to (shadow) carbon price and technology
induced efforts,
would mitigate pressure on the economic system to reach
global net zero CO
2
emissions around 2050.
Information on 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.
Annual Report 2024 |
Sustainability Statement | Other supplemental
information
83
Developments in sustainability, climate, environmental
and social standards and regulations
may affect our business and
impact our ability to
fully realize our goals.
We are subject
to separate, and sometimes
conflicting, ESG (environmental,
social and governance) regulations and regulator expectations in the various
jurisdictions in which UBS AG operates. For
example, in
certain jurisdictions,
we are
required to
set diversity
targets or
other ESG-related
goals that
are considered
illegal or contrary to
regulatory expectations in other jurisdictions. In
addition, with respect to decarbonization mandates,
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,
regulatory
taxonomies,
and
disclosure
obligations
addressing
these
matters
are
relatively
immature
and
are
rapidly
evolving.
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
ambitions.
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
we
are
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,
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 or 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
war in
Ukraine, 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.
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 members
of the
Group Executive
Board (the
GEB), as
well as
certain other
employees. UBS
will also
be required
to
maintain and enforce
provisions requiring
UBS to recover
from GEB members
and certain
other executives a
portion of
performance-based incentive compensation in the event that the
UBS Group or another entity with securities listed on a
US national securities exchange, is required to restate
its financial statements as a result of a material error.
›
R
efer to the “Risk factors” and “Risk management
and control” sections of this report for more information
Annual Report 2024 |
Sustainability Statement | Other supplemental
information
84
Key terms and definitions
Sustainability
Commonly defined as “meeting
the needs of
the present without compromising the
ability of future generations to
meet
their own needs“ (United Nations (UN) Brundtland Commission,
1987). In this way,
we sometimes refer to sustainability
to imply a broader scope of resources
that may be exhausted beyond those that impact climate change. Our ambition
is
to conduct business
and operations
without negatively
impacting the environment,
society or the
economy as a
whole
and, through our sustainability disclosure, to
be transparent about how we are pursuing this.
ESG (Environmental, Social, Governance)
A framework to
help stakeholders understand
how an organization
is managing risks
and opportunities related
to ESG
criteria or factors. It
is often used in the
context of investing, but – beyond the
investment community – clients, suppliers,
and employees are also increasingly interested
in how sustainable an organization’s operations are.
Sustainable finance
Sustainability focus:
Strategies that
have explicit
sustainable intentions
or objectives
that drive
the strategy.
Underlying
investments may contribute to positive sustainability outcomes through
products / services / use of proceeds.
Impact
investing:
Investment
strategies
that
have
an
explicit
intention
to
generate
measurable,
verifiable,
positive
sustainability outcomes. Impact generated is attributable
to investor action and / or contribution.
Green, social
and sustainability
loans and
bonds are
instruments made
available exclusively
to finance
or re-finance,
in
whole or in
part, new and
/ or existing
eligible green and
/ or social
projects that form
part of a
credible program from
the borrower / issuer to improve their environmental and
/ or social footprint.
Sustainability-linked loans and bonds are any types of instruments that incentivize the
borrower / issuer’s achievement of
ambitious, predetermined Sustainable Performance Targets (SPTs) that are measured using predefined sustainability
KPIs.
Low-carbon economy
Refers to a
type of decarbonized
economy that is
based on low
energy consumption
and low levels
of greenhouse
gas
(GHG) emissions:
Scope 1: accounts for GHG emissions by UBS.
Scope 2:
accounts
for indirect
GHG emissions
associated
with the
generation of
imported /
purchased electricity
(grid
average emission factor), heat or steam.
Scope
3:
accounts
for
GHG
emissions
resulting
from
activities
from
assets
not
owned
or
controlled
by
the
reporting
organization, but that the organization indirectly impacts
in its value chain.
Net zero: refers to cutting GHG emissions to as close to zero as possible, with any remaining emissions re-absorbed from
the atmosphere.
GHG key vendor: a top
GHG scope 3 emitter relative to
UBS’s overall scope 3 supply
chain emissions and with which UBS
has a long-term ongoing relationship.
Sustainability disclosure
Task
Force
on
Climate-related
Financial
Disclosures
(TCFD):
Provider
of
climate-related
financial
disclosure
recommendations designed to help companies provide
better information to support informed capital allocation.
Materiality assessment
The TCFD
requires
companies to
conduct a
double materiality
assessment that
looks at
both the
inside-out impact
the
company
has
on
the
environment
and
the
outside-in
impact
climate-related
activities
may
have
on
the
company
performance.
Annual Report 2024 |
Sustainability Statement | Information pursuant
to Art. 8 of the EU Taxonomy Regulation
85
Information on UBS AG standalone and UBS
Europe SE consolidated 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 EU Taxonomy
Regulation (the Regulation).
1
Article 8 of
that Regulation requires entities
that are subject to
an obligation to
publish non-
financial information pursuant to
Art. 19a or Art. 29a
of Accounting Directive, as
transposed,
to provide information to
investors about the environmental performance of economic activities associated
with certain of their balance sheet and
off-balance sheet exposures against the following environmental
objectives:
–
climate change mitigation;
–
climate change adaptation;
–
the sustainable use and protection of water and marine resources
;
–
the transition to a circular economy;
–
pollution prevention and control;
and
–
the protection and restoration of biodiversity and ecosystems
.
Under the Regulation,
UBS AG and UBS Europe
SE are required
to provide information
on the proportion
of taxonomy-
eligible
exposures,
and
starting
from
2023,
on
the
proportion
of
taxonomy-aligned
exposures
for
Climate
change
mitigation and Climate change
adaptation
, alongside other qualitative information.
The EU taxonomy reporting is based
on the prudential scope of consolidation, which for UBS AG is on
a standalone basis (by virtue of the prudential scope of
consolidation not
being applicable to
it) and for
UBS Europe SE
is on a
consolidated basis.
These disclosures have
been
prepared based on the requirements applicable to credit institutions, which reflects the principal business activity of both
UBS AG at
a standalone
level and
UBS Europe SE
at a
consolidated level,
whereby neither meet
the definition
of a
financial
conglomerate
as
set
out
in
Directive
2002/87/EC.
Under
the
Regulation,
credit
institutions
are
required
to
report
EU
taxonomy
key
performance
indicators
(KPIs),
to
demonstrate
the
extent
to
which
their
in-scope
exposures
relate
to
environmentally sustainable economic activities, as defined
by the Regulation.
Taxonomy-eligible
activities
are
activities
identified
as
being
in
scope
for
technical
screening
under
the
Regulation.
Taxonomy-aligned activities represent the
proportion of taxonomy-eligible activities
that satisfy the requirements
set out
in the
Regulation, meaning
that they
contribute substantially
to defined
environmental objectives,
do not
significantly
harm
any
other
environmental
objectives
and are
carried out
in compliance
with certain
minimum safeguards,
to the
extent these apply to credit institutions.
The green asset ratio (the GAR) is a KPI calculated as a proportion of EU taxonomy-aligned assets of total covered assets,
whereby:
–
the
numerator
is
determined
based
on
loans
and
advances,
debt
securities,
equity
instruments
and
repossessed
collateral, and EU taxonomy KPIs reported by respective
counterparties or issuers, or based on the information
on the
use of proceeds, if available;
and
–
the
denominator
is
represented
by
total
covered
assets,
which
include
total
assets
irrespective
of
whether
the
associated
counterparty
or
issuer
is
subject
to
EU
taxonomy
reporting,
excluding
expected
credit
loss
allowance
reported under IFRS Accounting Standards – the denominator excludes financial assets held for trading and exposures
to central banks, central governments and supranational issuers.
Credit
institutions
are
required
to
calculate
and
disclose
KPIs
based
on
the
turnover
KPIs
and,
separately,
the
capital
expenditure (CapEx) KPIs
reported by counterparties
and investees. Credit
institutions are also
required to calculate
and
disclose turnover-based and CapEx-based KPIs for
off-balance sheet exposures, including financial guarantees issued,
but
excluding loan commitments, and assets under management
(AuM). Consequently, all pre-defined templates, as set out
on the
following pages,
are presented
twice, leveraging
information published
by counterparties
and investees
on the
proportion of their activities associated with
environmentally sustainable economic activities, based on their turnover and
CapEx.
GAR
KPI
stock
is
calculated
on
period-end
exposures,
and
GAR
KPI
flow
is
calculated
for
new
exposures
during
the
reported period.
Under the
Regulation there
is no
requirement
to report
comparative
information
when
reporting EU
taxonomy KPIs,
except for the
“Assets for
the calculation of
the GAR”
and “GAR
KPI Stock”
tables presented
on following
pages.
KPI Trading
book portfolio
and
KPI on
fees and
commission income
from services
other than
lending and
asset
management
are not required to be reported for the year ended 31
December 2024.
Annual Report 2024 |
Sustainability Statement | Information pursuant
to Art. 8 of the EU Taxonomy Regulation
86
Because credit institutions are required
to prepare their EU taxonomy
disclosures based on the information
obtained from
counterparties, there is implicit dependency
on quality of that information
and the interpretations applied
therein. With
the ongoing implementation
of the Regulation
and the development
of market practices,
the availability and
quality of
relevant information
is expected
to improve.
This may
affect the
basis of
preparation and
result in
disclosures in
future
periods being refined.
Limitations in implementation of the third Commission
Notice
2
In November
2024, the
European
Commission issued
the finalized
third
Commission Notice
on the
interpretation and
implementation
of
certain
legal
provisions
of
the
Disclosures
Delegated
Act
under
Article
8
of
the
EU
Taxonomy
Regulation (the
third
Commission
Notice), which
contains
guidance
on a
number of
aspects of
the Regulation.
These
disclosures
have
been
prepared
on
a
best-efforts
basis
after
taking
into
consideration,
to
the
extent
practicable,
the
guidance
provided
in
the
third
Commission
Notice.
Consequently,
comparative
information
has
not
been
restated
to
reflect
the
impact
of
revisions
as
a
result
of
the
implementation
of
the
third
Commission
notice,
except
for
the
reclassification
of
derivatives
classified
as
held
for
trading
under
IFRS
Accounting
Standards
consistent
with
the
third
Commission Notice
from the
Derivatives
line into
the
Trading
book
line in
the “Assets
for the
calculation of
the GAR”
tables presented on the following pages, to enhance
the understandability of the presented comparative
information.
Basis of preparation for EU taxonomy disclosures
In compliance with
the Regulation, the classification
and total gross carrying
amounts of the
assets of UBS AG standalone
and
UBS Europe SE
consolidated
presented
in
the
tables
below
have
been
determined
based
on
IFRS
Accounting
Standards
and
attributed
to
the
taxonomy-eligible
and
taxonomy-aligned
activities
of
relevant
investees
and
counterparties.
Taxonomy-eligibility and
taxonomy-alignment KPIs
are required
to be
determined by
financial institutions
based on
the
actual information reported
by counterparties and
investees. More specifically,
when the use of
proceeds is not
known,
the taxonomy-eligibility
and taxonomy-alignment KPIs
presented below
are determined
based on
the turnover
and CapEx-
based
KPIs
of
non-financial
counterparties
and
investees,
and
any
applicable
KPIs
of
financial
counterparties
and
investees.
Where the
KPI of
the
counterparty
or the
investee
is not
available,
the
KPI
of the
closest
reporting
parent,
where available, was used to assess the respective exposures
as clarified by the third Commission Notice.
Entities are
required to
provide disclosures
on the
proportion of
taxonomy-eligible
economic activities
pursuant to
the
non-climate-related environmental
objectives
Water and marine
resources
,
Circular economy, Pollution
, and
Biodiversity
and ecosystems
from 1 January 2024, which for
UBS AG and UBS Europe SE
would be the reporting for the
year ended
31 December 2023. As
financial institutions report
their EU taxonomy
eligibility and alignment
based on the
KPIs reported
by their counterparties,
the effective date
of 1 January 2024
for all reporting
entities implies that
generally no reported
EU taxonomy-eligibility-related information was available
to financial institutions to carry out
the EU taxonomy eligibility
assessment on
the four
non-climate-related environmental
objectives in
respect of
non-financial counterparties
in their
first
reporting
period
and
in
respect
of
the
financial
counterparties
in
their
first
and
second
reporting
periods.
EU
taxonomy
alignment
reporting
on
the
non-climate-related
environmental
objectives
is
required
for
non-financial
undertakings
from
1 January
2025
and
for
financial
undertakings
from
1 January
2026,
which
for
UBS AG
and
UBS
Europe SE would be for
the year ended 31 December
- In the disclosures
presented below, taxonomy alignment
in
respect of the four non-climate-related objectives is reported
when the respective counterparties have early adopted the
requirements in the Regulation.
The
information
required
for
EU taxonomy
reporting
is
sourced
from
the
independent
data
provider.
To
address
data
gaps, manual searches are carried out to the extent
this is practicable.
Exposures to mortgages
to households
collateralized by
residential immovable
property are
considered to
be taxonomy
eligible irrespective of whether or not the real estate
is located in the EU or the borrower is a national
of an EU Member
State.
As regards the taxonomy alignment of these exposures, given current data limitations to complete the assessment
thereof
against
technical
screening
criteria,
all
residential
mortgages
to
households
have
been
considered
as
not
taxonomy aligned.
Annual Report 2024 |
Sustainability Statement | Information pursuant
to Art. 8 of the EU Taxonomy Regulation
87
In the
absence of
specific guidance
in the
Regulation, and
with reporting
practice still
evolving, these
disclosures have
been prepared based on the following interpretations.
–
Assets under management
(AuM): for the
purposes of AuM related
KPIs consist of client
assets that are managed
by
or
deposited
with
UBS AG
or
UBS
Europe SE
for
investment
purposes,
including
managed
fund
assets,
managed
institutional assets,
discretionary and
advisory wealth
management portfolios,
and wealth
management securities
or
brokerage accounts.
–
Calculations
for
AuM-related
KPIs
are
determined
on
the
basis
of
Non-financial
Reporting
Directive
3
(NFRD)
counterparties, as
required by
the standardized
template. For
fund units
that form
part of
the AuM,
a look-through
approach is
applied, where
practicable, in
which both
the numerator
and denominator
are determined
by reference
to investments made by the fund that are attributable to
NFRD issuers.
–
For
transactions
transacted
through
central
clearing
houses,
the
counterparty
subject
to
taxonomy
assessment
is
considered to be the central clearing house.
Due to limitations in data
availability, the methodology for
determining taxonomy eligibility and
taxonomy alignment as
set out in the tables below has been developed on the basis
of the following.
–
Where in the most recent reporting period counterparties reported no disaggregation for taxonomy eligibility
and / or
taxonomy alignment per environmental objective,
no information has been reported in
the tables below in respect of
these counterparties, on taxonomy eligibility and /
or taxonomy alignment for each environmental
objective, with the
entire
amount
related
to
taxonomy
eligibility
and / or
taxonomy
alignment
attributed
to
the
“Total”
column.
As
a
result, the sum of the amounts presented under each environmental
objective may differ from the “Total”
column.
–
In the absence of actual more detailed information about the use of proceeds, including in respect of environmentally
sustainable bonds, the
assessment of taxonomy
eligibility and taxonomy
alignment has been
performed at the
issuer
level, except
for residential
mortgages to
households,
where in
the absence
of the
information to
assess taxonomy
alignment, exposures were considered to be not aligned.
–
For
the
purposes
of
flow
KPIs,
the
AuM
flows
are
determined
on
the
basis
of
actual
outflows
incurred
to
acquire
respective positions,
while for
the balance
sheet positions
and financial
guarantee contracts
the difference
between
the
highest
balance
outstanding
toward
a
counterparty
or
investee
during
the
reporting
period
and
the
opening
balance has been
considered to be the
most reasonable approximation of
new exposures incurred during
the reporting
period that was practicable to determine.
–
When
the
look-through
approach
is
applied
to
investments
in
funds
for
the
purposes
of
AuM-related
KPIs,
in
the
absence of
the information
to assess
whether the
issuer of
the investment
held by
the fund
is subject
to NFRD
disclosure
obligations, that issuer
was considered to
be a non-NFRD
counterparty, both
for the purposes
of the numerator
and
the denominator.
The
“Summary
of
Key
Performance
Indicators
(KPIs)”
table
for
UBS AG
standalone
and
UBS
Europe SE
consolidated
summarizes UBS AG and UBS Europe SE KPIs for the year ended 31 December 2024, with further details disclosed in the
tables below.
Annual Report 2024 |
Sustainability Statement | Information pursuant
to Art. 8 of the EU Taxonomy Regulation
88
UBS AG standalone – Summary of Key Performance Indicators (KPIs)
31.12.24
Total
environmentally
sustainable assets
– turnover based
(USD m)
Total
environmentally
sustainable assets
– capex based
(USD m)
Turnover KPI (%)
CapEx KPI (%)
Coverage over
total assets (%)
1
Assets excluded
from the
numerator of the
GAR (%)
2
Assets excluded
from the
denominator of
the GAR (%)
3
Main KPI
GAR stock
79
90
0.0
0.0
54.6
49.6
45.4
Total
environmentally
sustainable assets
– turnover based
(USD m)
Total
environmentally
sustainable assets
– capex based
(USD m)
Turnover KPI (%)
CapEx KPI (%)
Coverage over
total assets (%)
4
Assets excluded
from the
numerator of the
GAR (%)
4
Assets excluded
from the
denominator of
the GAR (%)
4
Additional KPIs
GAR flow
230
231
0.5
0.5
Financial guarantees
6
8
0.1
0.2
Assets under management
2,513
4,291
3.1
5.2
31.12.23
Total
environmentally
sustainable assets
– turnover based
(USD m)
Total
environmentally
sustainable assets
– capex based
(USD m)
Turnover KPI (%)
CapEx KPI (%)
Coverage over
total assets (%)
1
Assets excluded
from the
numerator of the
GAR (%)
2
Assets excluded
from the
denominator of
the GAR (%)
3
Main KPI
GAR stock
0
5
0
5
0.0
0.0
51.8
6
47.4
6
48.2
6
Total
environmentally
sustainable assets
– turnover based
(USD m)
Total
environmentally
sustainable assets
– capex based
(USD m)
Turnover KPI (%)
CapEx KPI (%)
Coverage over
total assets (%)
4
Assets excluded
from the
numerator of the
GAR (%)
4
Assets excluded
from the
denominator of
the GAR (%)
4
Additional KPIs
GAR flow
1
5
1
5
0.0
0.0
Financial guarantees
0
0
0.0
0.0
Assets under management
203
464
1.5
3.4
1 Proportion calculated as a percentage of the gross carrying amount of eligible assets, relative to the total asset.
2 Article 7(2) and (3) and Section 1.1.2. of Annex V of the Disclosures Delegated Act.
3 Article
7(1) and Section 1.2.4 of Annex V of the Disclosures Delegated Act.
4 Left blank, as calculation implies determination of flows for amounts that are not otherwise explicitly included by regulation in the flow
KPI
calculations.
5 Comparatives revised in line with developments in methodology used for the assessment against technical screening criteria.
6 Comparative information was restated, refer to the tables Assets for
the calculation of the GAR.
UBS Europe SE consolidated – Summary of Key Performance Indicators (KPIs)
31.12.24
Total
environmentally
sustainable assets
– turnover based
(USD m)
Total
environmentally
sustainable assets
– capex based
(USD m)
Turnover KPI (%)
CapEx KPI (%)
Coverage over
total assets (%)
1
Assets excluded
from the
numerator of the
GAR (%)
2
Assets excluded
from the
denominator of
the GAR (%)
3
Main KPI
GAR stock
24
27
0.1
0.1
44.2
25.9
55.8
Total
environmentally
sustainable assets
– turnover based
(USD m)
Total
environmentally
sustainable assets
– capex based
(USD m)
Turnover KPI (%)
CapEx KPI (%)
Coverage over
total assets (%)
4
Assets excluded
from the
numerator of the
GAR (%)
4
Assets excluded
from the
denominator of
the GAR (%)
4
Additional KPIs
GAR flow
50
56
0.3
0.4
Financial guarantees
0
0
0.0
0.0
Assets under management
2,511
5,101
4.1
8.2
31.12.23
Total
environmentally
sustainable assets
– turnover based
(USD m)
Total
environmentally
sustainable assets
– capex based
(USD m)
Turnover KPI (%)
CapEx KPI (%)
Coverage over
total assets (%)
1
Assets excluded
from the
numerator of the
GAR (%)
2
Assets excluded
from the
denominator of
the GAR (%)
3
Main KPI
GAR stock
0
0
0.0
0.0
38.5
5
26.1
5
61.5
5
Total
environmentally
sustainable assets
– turnover based
(USD m)
Total
environmentally
sustainable assets
– capex based
(USD m)
Turnover KPI (%)
CapEx KPI (%)
Coverage over
total assets (%)
4
Assets excluded
from the
numerator of the
GAR (%)
4
Assets excluded
from the
denominator of
the GAR (%)
4
Additional KPIs
GAR flow
0
0
0.0
0.0
Financial guarantees
0
0
0.0
0.0
Assets under management
723
1,786
2.1
5.2
1 Proportion calculated as a percentage of the gross carrying amount of eligible assets, relative to the total asset.
2 Article 7(2) and (3) and Section 1.1.2. of Annex V of the Disclosures Delegated Act.
3 Article
7(1) and Section 1.2.4 of Annex V of the Disclosures Delegated Act.
4
Left blank, as calculation implies determination of flows for amounts that are not otherwise explicitly included by regulation in the flow
KPI
calculations.
5 Comparative information was restated, refer to the tables
Assets for the calculation of the GAR
.
Annual Report 2024 |
Sustainability Statement | Information pursuant
to Art. 8 of the EU Taxonomy Regulation
89
The main KPIs have remained largely consistent with those
of the previous year.
UBS AG
standalone
and
UBS
Europe SE
consolidated
contribute
45.5%
to
the
total
assets
of
the
UBS
Group AG
consolidated scope under IFRS
Accounting Standards.
UBS AG standalone and UBS
Europe SE consolidated have low
KPIs
for balance sheet stock and flow, and off-balance sheet,
because:
–
a significant proportion of the business, and, correspondingly,
the total assets of both entities, is outside
the scope of
EU taxonomy
reporting,
i.e. it
is transacted
with counterparties
and investees
that
are not
subject to
EU taxonomy
reporting requirements, for example because 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;
–
UBS AG standalone
and UBS
Europe SE consolidated
include a
significant amount
of activity
in Group
Treasury and
the
Investment
Bank
in
their
scopes
–
most
assets
in
these
activities
are
within
categories
that
are
excluded
from
taxonomy eligibility and taxonomy alignment assessments
(e.g. derivatives, trading assets, etc.);
and
–
the increase in
total assets
and AuM of
UBS AG and
UBS Europe SE
following the
2024 merger
of Credit Suisse
AG
into UBS AG and Credit
Suisse (Luxembourg) S.A.
into UBS Europe SE did
not significantly impact their
EU Taxonomy
KPIs.
Economic activities
in the fossil
gas and nuclear
energy sectors
are required
to be reported
in separate
templates as per
the
Complementary Climate
Delegated Act.
As
of
31 December 2024,
the
direct balance
sheet exposures
to
non-financial
counterparties in the fossil gas and nuclear energy sectors were immaterial for UBS
AG and UBS Europe SE.
The balance
sheet exposures towards financial institutions indirectly involved in the fossil
gas and nuclear
energy sectors through the
provision of
financial services
as of 31 December
2024 were of USD
3.1bn for UBS
AG and USD 1.7bn
for UBS Europe
SE.
Business strategy
As
EU
taxonomy
reporting
evolves,
and
the
data
quality
improves,
UBS
AG
and
UBS
Europe
SE
look
to
establish
an
understanding of
how taxonomy-aligned
activities affect
their business strategy,
product design
and engagement
with
clients in order to incorporate such into UBS’s
climate strategy.
UBS’s approach
to the
climate
transition is
guided by
its climate
ambition and
key objectives.
UBS aims
to support
its
clients in
the transition
to a
low-carbon world
by embedding
climate considerations
into its
financing, investment
and
capital markets offerings. One
of the most
significant contributions UBS can
make is mobilizing
capital towards an orderly
transition to a low-carbon
economy. UBS has
set climate-related targets,
including reducing its scope
1 and 2 emissions
to achieve
net zero
by 2035
and aligning
its in-scope
lending and
investment portfolios
to the
objectives
of the
Paris
Agreement.
The
climate
transition
plan
is
included
in
the
annual
objective-setting
process
and
is
overseen
by
the
Corporate Culture
and Responsibility
Committee
of the
Board of
Directors of
the
UBS Group.
UBS recognizes
that its
climate transition plan does not cover all of its business activities.
1
EU Taxonomy
Regulation 2020/852,
including Delegated
Acts
;
Commission Delegated
Regulation (EU)
2021/2178 (the
“Disclosure Delegated
Act”) supplementing
Taxonomy
Regulation; Commission
Delegated
Regulation (EU)
2023/2486 (the
“Environmental Delegated
Act”) supplementing
Taxonomy
Regulation and
amending Disclosures
Delegated Act;
Commission Delegated
Regulation (EU)
2021/2139 (the
“Climate
Delegated Act”) supplementing Taxonomy
Regulation; and the Commission Delegated Regulation (EU)
2022/1214 (the "Complementary Climate Delegated Act");
Commission Delegated Regulation (EU) 2023/2485
amending Climate Delegated Act;.
2
Commission Notice on the
interpretation and implementation
of certain legal provisions
of the Disclosures Delegated
Act under Article 8
of the EU Taxonomy
Regulation on the reporting
of Taxonomy-eligible
and
Taxonomy-aligned economic activities and assets.
3
Directive 2014/95/EU, the Non-financial Reporting Directive.
Annual Report 2024 |
Sustainability Statement | Information pursuant
to Art. 8 of the EU Taxonomy Regulation |
UBS AG standalone
90
UBS AG standalone
1
Annual Report 2024 |
Sustainability Statement | Information pursuant
to Art. 8 of the EU Taxonomy Regulation |
UBS AG standalone
91
Assets for the calculation of the GAR
Assets for the calculation of the GAR (Turnover)
31.12.24
Total
gross
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
of which environmentally sustainable
(Taxonomy-aligned)
of which environmentally
sustainable
(Taxonomy-aligned)
USD m
of which
use of
proceeds
of which
transitional
of which
enabling
of which
use of
proceeds
of which
enabling
GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation
48,994
4,719
79
3
2
16
0
0
Financial undertakings
15,036
757
74
3
1
16
0
0
Credit institutions
14,696
646
60
2
1
15
0
0
Loans and advances
8,527
178
9
0
0
0
0
0
Debt securities, including UoP
1,994
428
51
2
1
15
0
0
Equity instruments
4,175
40
0
0
Other financial corporations
340
111
14
0
0
0
0
of which investment firms
0
0
0
0
0
0
0
Loans and advances
0
0
0
0
0
0
0
Debt securities, including UoP
Equity instruments
of which
management companies
15
0
0
Loans and advances
15
0
0
Debt securities, including UoP
Equity instruments
of which insurance undertakings
0
0
0
0
0
0
0
Loans and advances
0
0
0
0
0
0
0
Debt securities, including UoP
Equity instruments
Non-financial undertakings
44
0
0
0
0
0
Loans and advances
44
0
0
0
0
0
Debt securities, including UoP
Equity instruments
0
0
0
0
0
Households
2
28,931
3,799
of which loans collateralised by residential immovable property
3,799
3,799
of which building renovation loans
of which motor vehicle loans
Local governments financing
4,983
162
5
0
1
0
Housing financing
Other local government financing
4,983
162
5
0
1
0
Collateral obtained by taking possession: residential and commercial immovable properties
0
Assets excluded from the numerator for GAR calculation (covered in the denominator)
480,156
Financial and Non-financial undertakings
3
407,322
SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations
25,963
Loans and advances
22,053
of which loans collateralised by commercial immovable property
of which building renovation loans
Debt securities
2,214
Equity instruments
1,696
Non-EU country counterparties not subject to NFRD disclosure obligations
381,358
Loans and advances
296,736
Debt securities
13,354
Equity instruments
71,269
Derivatives
4
43,215
On demand interbank loans
11,058
Cash and cash-related assets
350
Other categories of assets (e.g. Goodwill, commodities etc.)
18,210
Total GAR assets
529,150
4,719
79
3
2
16
0
0
Assets not covered for GAR calculation
439,284
Central governments and Supranational issuers
22,605
Central banks exposure
107,343
Trading book
4
309,336
Total assets
968,434
4,719
79
3
2
16
0
0
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
5
Financial guarantees
5,153
107
5
0
1
133
2
Assets under management
82,336
7,475
1,529
201
791
413
166
8
of which debt securities
23,171
3,225
657
135
263
97
6
4
of which equity instruments
32,578
2,933
790
56
501
256
158
4
1 Within tables in this section, blank fields indicate non-applicability, non-availability of required information, actual zero or that presentation of any content would not be meaningful. Zero values generally indicate that the respective
figure is zero on
a rounded basis.
2 Includes loans collateralized by commercial immovable property.
3 Includes USD 3bn (2023: USD 1.7bn) exposures to multi-development
bank, which in comparative period was presented under
Central governments and Supranational issuers.
4 Comparatives revised to reclassify derivatives classified as held for
trading under IFRS Accounting Standards from Derivatives
line to Trading book line consistent
with clarifications
contained in the third Commission notice issued in November 2024.
5 As required by the standardized template, the total gross carrying amount was calculated on the basis of off-balance sheet exposures to undertakings subject to
NFRD.
Annual Report 2024 |
Sustainability Statement | Information pursuant
to Art. 8 of the EU Taxonomy Regulation |
UBS AG standalone
92
Water and marine resources (WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
of which environmentally sustainable
(Taxonomy-aligned)
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
of which
use of
proceeds
of which
transitional
of which
enabling
2
168
1
4,934
79
3
2
0
22
0
971
74
3
1
860
60
3
1
307
9
0
0
444
51
2
1
108
0
0
0
22
0
112
14
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
3,799
3,799
2
146
1
163
5
0
1
2
146
1
163
5
0
1
2
168
1
4,934
79
3
2
2
168
1
4,934
79
3
2
317
6
0
1
3
0
0
314
13
6
566
3
2
87
16,399
2,513
195
808
0
0
0
30
4
0
58
1
0
0
7,578
1,297
133
266
3
0
0
281
8
6
503
2
2
87
6,677
991
52
513
Annual Report 2024 |
Sustainability Statement | Information pursuant
to Art. 8 of the EU Taxonomy Regulation |
UBS AG standalone
93
31.12.23
Total
gross
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
of which environmentally sustainable
(Taxonomy-aligned)
of which environmentally
sustainable
(Taxonomy-aligned)
USD m
of which
use of
proceeds
of which
transitional
of which
enabling
of which
use of
proceeds
of which
enabling
GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity instruments not held-for-trading
eligible for GAR
calculation
30,629
2,074
0
0
0
Financial undertakings
12,385
0
0
Credit institutions
1
11,912
0
0
Loans and advances
1
6,216
0
0
Debt securities
1,755
Equity instruments
2
3,942
Other financial corporations
473
of which investment firms
0
Loans and advances
0
Debt securities
Equity instruments
of which management companies
Loans and advances
Debt securities
Equity instruments
of which insurance undertakings
Loans and advances
Debt securities
Equity instruments
Non-financial undertakings
30
0
0
0
Loans and advances
30
0
0
0
Debt securities
0
Equity instruments
0
Households
18,212
2,074
of which loans collateralized by residential immovable property
3
2,074
2,074
of which building renovation loans
of which motor vehicle loans
Local governments financing
Housing financing
Other local government financing
Collateral obtained by taking possession: residential and commercial immovable properties
1
Assets excluded from the numerator for GAR calculation (covered in the denominator)
330,962
Financial and Non-financial undertakings
274,070
SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations
11,028
Loans and advances
1
8,519
of which loans collateralised by commercial immovable property
of which building renovation loans
Debt securities
1
2,508
Equity instruments
2
2
Non-EU country counterparties not subject to NFRD disclosure obligations
263,042
Loans and advances
1
206,916
Debt securities
1
9,001
Equity instruments
47,126
Derivatives
4
35,056
On demand interbank loans
8,928
Cash and cash-related assets
1
Other categories of assets
12,907
Total GAR assets
361,591
2,074
0
0
0
Assets not covered for GAR calculation
336,778
Central governments and supranational issuers
5
19,829
Central banks exposure
74,890
Trading book
4
242,060
Total assets
698,369
2,074
0
0
0
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
6
Financial guarantees
7
4,364
Assets under management
13,488
195
1
96
8
of which debt securities
4,770
91
0
23
0
of which equity instruments
4,913
104
1
72
7
1 Comparatives restated to reclassify exposures from the Loans and advances lines to the Debt securities lines with no impact on total GAR ratio
(Credit institutions: USD 0.1bn; SMEs and NFCs (other than SMEs) not subject to NFRD
disclosure obligations: USD
0.2bn; Non-EU
country counterparties not
subject to NFRD
disclosure obligations:
USD 1.1bn).
2 Comparatives
restated to reclassify
exposures of USD
3.3bn from
section Assets
excluded from the
numerator for GAR calculation (covered in the denominator) to
section GAR - Covered assets in both numerator and denominator.
3 Comparatives revised in line with developments in methodology used for
the assessment against
technical screening criteria.
4 Revised to reclassify derivatives
of USD 126.3bn classified as held for
trading under IFRS Accounting Standards from
Derivatives line (as presented in
2023 disclosures) to Trading
book line consistent
with clarifications contained in the third Commission notice
issued in November 2024.
5 Includes local governments financing when the
use of proceeds is not known.
6 As required by the standardized template,
the total gross
carrying amount was calculated on the
basis of off-balance sheet exposures to undertakings
subject to NFRD.
7 Comparatives restated to include exposures
of USD 4.4bn which were previously not
deemed to be subject to NFRD
disclosure obligations.
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to Art. 8 of the EU Taxonomy Regulation |
UBS AG standalone
94
Water and marine resources (WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
of which environmentally sustainable
(Taxonomy-aligned)
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
of which
use of
proceeds
of which
transitional
of which
enabling
3,256
0
0
0
1,182
0
0
1,072
0
0
480
0
0
582
10
110
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2,074
2,074
3,256
0
0
0
3,256
0
0
0
44
2,978
203
1
96
1,392
92
0
23
968
112
1
72
Annual Report 2024 |
Sustainability Statement | Information pursuant
to Art. 8 of the EU Taxonomy Regulation |
UBS AG standalone
95
Assets for the calculation of the GAR (CapEx)
31.12.24
1
Total
gross
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
of which environmentally sustainable
(Taxonomy-aligned)
of which environmentally
sustainable
(Taxonomy-aligned)
USD m
of which
use of
proceeds
of which
transitional
of which
enabling
of which
use of
proceeds
of which
enabling
GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation
48,994
4,767
89
3
3
18
0
0
Financial undertakings
15,036
761
77
3
2
18
0
0
Credit institutions
14,696
649
63
3
2
15
0
0
Loans and advances
8,527
178
9
0
0
0
0
0
Debt securities, including UoP
1,994
431
54
3
1
15
0
Equity instruments
4,175
40
0
0
Other financial corporations
340
112
14
0
0
2
0
0
of which investment firms
0
0
0
0
0
0
0
Loans and advances
0
0
0
0
0
0
0
Debt securities, including UoP
Equity instruments
of which
management companies
15
0
0
Loans and advances
15
0
0
Debt securities, including UoP
Equity instruments
of which insurance undertakings
0
0
0
0
0
0
0
Loans and advances
0
0
0
0
0
0
0
Debt securities, including UoP
Equity instruments
Non-financial undertakings
44
41
6
0
0
0
0
Loans and advances
44
41
6
0
0
0
0
Debt securities, including UoP
Equity instruments
0
0
0
0
0
Households
2
28,931
3,799
of which loans collateralised by residential immovable property
3,799
3,799
of which building renovation loans
of which motor vehicle loans
Local governments financing
4,983
165
6
0
1
1
0
0
Housing financing
Other local government financing
4,983
165
6
0
1
1
0
0
Collateral obtained by taking possession: residential and commercial immovable properties
0
Assets excluded from the numerator for GAR calculation (covered in the denominator)
480,156
Financial and Non-financial undertakings
3
407,322
SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations
25,963
Loans and advances
22,053
of which loans collateralised by commercial immovable property
of which building renovation loans
Debt securities
2,214
Equity instruments
1,696
Non-EU country counterparties not subject to NFRD disclosure obligations
381,358
Loans and advances
296,736
Debt securities
13,354
Equity instruments
71,269
Derivatives
4
43,215
On demand interbank loans
11,058
Cash and cash-related assets
350
Other categories of assets (e.g. Goodwill, commodities etc.)
18,210
Total GAR assets
529,150
4,767
89
3
3
18
0
0
Assets not covered for GAR calculation
439,284
Central governments and Supranational issuers
22,605
Central banks exposure
107,343
Trading book
4
309,336
Total assets
968,434
4,767
89
3
3
18
0
0
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
5
Financial guarantees
5,153
100
6
0
1
134
2
Assets under management
82,336
9,100
2,794
280
1,306
444
219
34
of which debt securities
23,171
3,535
1,070
151
504
91
20
16
of which equity instruments
32,578
4,239
1,608
109
761
321
190
18
1 Within tables in this
section, blank fields indicate non-applicability
or that presentation of any
content would not be meaningful.
Zero values generally
indicate that the respective
figure is zero on an
actual or rounded basis.
2
Includes loans collateralized by commercial
immovable property.
3 Includes USD 3bn (2023:
USD 1.7bn) exposures to
multi-development bank, which in
comparative period was presented under
Central governments and Supranational
issuers.
4 Comparatives revised to reclassify derivatives classified as held for trading under IFRS Accounting Standards from Derivatives line to Trading
book line consistent with clarifications contained in the third Commission notice
issued in November 2024.
5 As required by the standardized template, the total gross carrying amount was calculated on the basis of off-balance sheet exposures to undertakings subject to NFRD.
Annual Report 2024 |
Sustainability Statement | Information pursuant
to Art. 8 of the EU Taxonomy Regulation |
UBS AG standalone
96
Water and marine resources (WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
of which environmentally sustainable
(Taxonomy-aligned)
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
of which
use of
proceeds
of which
transitional
of which
enabling
2
168
1
4,888
90
4
4
0
22
0
882
77
3
2
768
64
3
2
246
9
0
0
447
54
3
1
75
0
0
0
0
22
0
114
14
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
41
6
0
0
0
0
41
6
0
0
0
0
0
0
3,799
3,799
2
146
1
165
7
0
1
2
146
1
165
7
0
1
2
168
1
4,888
90
4
4
2
168
1
4,888
90
4
4
274
8
0
1
5
0
0
224
6
2
337
2
2
44
1
20,079
4,291
280
1,325
1
0
0
26
4
0
25
0
0
1
0
9,563
2,127
151
508
4
0
0
195
2
2
310
1
1
44
1
7,992
1,809
109
775
Annual Report 2024 |
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to Art. 8 of the EU Taxonomy Regulation |
UBS AG standalone
97
31.12.23
Total
gross
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
of which environmentally sustainable
(Taxonomy-aligned)
of which environmentally
sustainable
(Taxonomy-aligned)
USD m
of which
use of
proceeds
of which
transitional
of which
enabling
of which
use of
proceeds
of which
enabling
GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity instruments not held-for-trading
eligible for GAR
calculation
30,629
2,074
0
0
0
0
Financial undertakings
12,385
0
0
Credit institutions
11,912
0
0
Loans and advances
1
6,216
0
0
Debt securities
1
1,755
Equity instruments
2
3,942
Other financial corporations
473
0
0
of which investment firms
0
Loans and advances
0
Debt securities
Equity instruments
of which management companies
Loans and advances
Debt securities
Equity instruments
of which insurance undertakings
Loans and advances
Debt securities
Equity instruments
Non-financial undertakings
30
0
0
0
0
Loans and advances
30
0
0
0
0
Debt securities
0
0
0
Equity instruments
0
0
Households
18,212
2,074
of which loans collateralized by residential immovable property
3
2,074
2,074
of which building renovation loans
of which motor vehicle loans
Local governments financing
Housing financing
Other local government financing
Collateral obtained by taking possession: residential and commercial immovable properties
1
Assets excluded from the numerator for GAR calculation (covered in the denominator)
330,962
Financial and Non-financial undertakings
274,070
SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations
11,028
Loans and advances
1
8,519
of which loans collateralised by commercial immovable property
of which building renovation loans
Debt securities
1
2,508
Equity instruments
2
2
Non-EU country counterparties not subject to NFRD disclosure obligations
263,042
Loans and advances
1
206,916
Debt securities
1
9,001
Equity instruments
47,126
Derivatives
4
35,056
On demand interbank loans
8,928
Cash and cash-related assets
1
Other categories of assets
12,907
Total GAR assets
361,591
2,074
0
0
0
0
Assets not covered for GAR calculation
336,778
Central governments and supranational issuers
5
19,829
Central banks exposure
74,890
Trading book
4
242,060
Total assets
698,369
2,074
0
0
0
0
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
6
Financial guarantees
7
4,364
Assets under management
13,488
462
22
209
2
of which debt securities
4,770
189
2
65
2
of which equity instruments
4,913
273
21
144
0
1 Comparatives restated to reclassify exposures from the Loans and advances lines to the Debt securities lines with no impact on total GAR ratio
(Credit institutions: USD 0.1bn; SMEs and NFCs (other than SMEs) not subject to NFRD
disclosure obligations: USD
0.2bn; Non-EU
country counterparties not
subject to NFRD
disclosure obligations:
USD 1.1bn).
2 Comparatives
restated to reclassify
exposures of USD
3.3bn from
section Assets
excluded from the
numerator for GAR calculation (covered in the denominator) to
section GAR - Covered assets in both numerator and denominator.
3 Comparatives revised in line with developments in methodology used for
the assessment against
technical screening criteria.
4 Revised to reclassify derivatives
of USD 126.3bn classified as held for
trading under IFRS Accounting Standards from
Derivatives line (as presented in
2023 disclosures) to Trading
book line consistent
with clarifications contained in the third Commission notice
issued in November 2024.
5 Includes local governments financing when the
use of proceeds is not known.
6 As required by the standardized template,
the total gross
carrying amount was calculated on the
basis of off-balance sheet exposures to undertakings
subject to NFRD.
7 Comparatives restated to include exposures
of USD 4.4bn which were previously not
deemed to be subject to NFRD
disclosure obligations.
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Sustainability Statement | Information pursuant
to Art. 8 of the EU Taxonomy Regulation |
UBS AG standalone
98
Water and marine resources (WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
of which environmentally sustainable
(Taxonomy-aligned)
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
of which
use of
proceeds
of which
transitional
of which
enabling
2,448
0
0
0
373
0
0
332
0
0
185
0
0
147
0
42
0
0
1
0
0
0
1
0
0
0
0
0
0
0
0
2,074
2,074
2,448
0
0
0
2,448
0
0
0
2,733
464
22
209
840
191
2
65
1,522
273
21
144
Annual Report 2024 |
Sustainability Statement | Information pursuant
to Art. 8 of the EU Taxonomy Regulation |
UBS AG standalone
99
GAR sector information
GAR sector information (Turnover)
Breakdown by sector - NACE 4 digits level
(code and label)
1
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not
subject to NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not
subject to NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not
subject to NFRD
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
USD
thousands
of which
environmen-
tally
sustainable
(CCM)
USD
thousands
of which
environmen-
tally
sustainable
(CCM)
USD
thousands
of which
environmen-
tally
sustainable
(CCA)
of which
environmen-
tally
sustainable
(CCA)
USD
thousands
of which
environmen-
tally
sustainable
(WTR)
USD
thousands
of which
environmen
-tally
sustainable
(WTR)
USD thousand
0600 - Extraction of crude petroleum and natural gas
0
0
2000 - Manufacture of chemicals and chemical products
1
0
2410 - Manufacture of basic iron and steel and of ferro-
alloys
0
2700 - Manufacture of electrical equipment
3
2732 - Manufacture of other electronic and electric wires
and cables
3
6800 - Real estate activities
1
0
3500 - Electricity, gas, steam and air conditioning supply
10
9
3511 - Production of electricity
64
6000 - Programming and broadcasting activities
11
1
0
6100 - Telecommunications
2
0
8622 - Specialist medical practice activities
2013 - Manufacture of other inorganic basic chemicals
8299 - Other business support service activities n.e.c.
0
0
3011 - Building of ships and floating structures
0
0
8899 - Other social work activities without accommodation
n.e.c.
0
0
9600 - Other personal service activities
0
4110 - Development of building projects
0
0
1 The information included in this table represents taxonomy-eligible and taxonomy-aligned amounts as reported in table Assets for the calculation of the GAR (Turnover), irrespective of whether the NACE code for principal activity is
associated with taxonomy-eligible or taxonomy-aligned economic activities.
GAR sector information (CapEx)
Breakdown by sector - NACE 4 digits level
(code and label)
1
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not
subject to NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not
subject to NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not
subject to NFRD
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
USD
thousands
of which
environmen-
tally
sustainable
(CCM)
USD
thousands
of which
environmen-
tally
sustainable
(CCM)
USD
thousands
of which
environmen-
tally
sustainable
(CCA)
of which
environmen-
tally
sustainable
(CCA)
USD
thousands
of which
environmen-
tally
sustainable
(WTR)
USD
thousands
of which
environmen
-tally
sustainable
(WTR)
USD thousand
0600 - Extraction of crude petroleum and natural gas
1
1
2000 - Manufacture of chemicals and chemical products
3
1
2410 - Manufacture of basic iron and steel and of ferro-
alloys
0
2700 - Manufacture of electrical equipment
2
2732 - Manufacture of other electronic and electric wires
and cables
3
6800 - Real estate activities
2
0
8600 - Human health activities
40,866
5,634
3500 - Electricity, gas, steam and air conditioning supply
24
23
3511 - Production of electricity
60
11
6000 - Programming and broadcasting activities
11
1
6020 - Television programming and broadcasting activities
6100 - Telecommunications
1
8622 - Specialist medical practice activities
2013 - Manufacture of other inorganic basic chemicals
6110 - Wired telecommunications activities
0
0
7490 - Other professional, scientific and technical activities
n.e.c.
2
0
8299 - Other business support service activities n.e.c.
0
0
3011 - Building of ships and floating structures
0
0
8899 - Other social work activities without accommodation
n.e.c.
0
0
9600 - Other personal service activities
0
1106 - Manufacture of malt
1
1107 - Manufacture of soft drinks; production of mineral
waters and other bottled waters
0
5821 - Publishing of computer games
1 The information included in this table
represents taxonomy-eligible and taxonomy-aligned amounts as reported
in table Assets for the calculation of the
GAR (CapEx), irrespective of whether the NACE
code for principal activity is
associated with taxonomy-eligible or taxonomy-aligned economic activities.
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Sustainability Statement | Information pursuant
to Art. 8 of the EU Taxonomy Regulation |
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100
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not
subject to NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not
subject to NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not
subject to NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not
subject to NFRD
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
USD
thousands
of which
environmen-
tally
sustainable
(CE)
USD
thousands
of which
environmen-
tally
sustainable
(CE)
USD
thousands
of which
environmen-
tally
sustainable
(PPC)
USD
thousands
of which
environmen-
tally
sustainable
(PPC)
USD
thousands
of which
environmen-
tally
sustainable
(BIO)
USD
thousands
of which
environmen-
tally
sustainable
(BIO)
USD
thousands
of which
environmen-
tally
sustainable
(CCM +
CCA + WTR
CE + PPC
BIO)
USD
thousands
of which
environmen-
tally
sustainable
(CCM +
CCA + WTR
CE + PPC
BIO)
0
0
3
4
0
0
0
3
3
1
3
1
0
10
9
67
64
11
1
1
2
0
12
0
1
0
0
0
0
0
0
0
0
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not
subject to NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not
subject to NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not
subject to NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not
subject to NFRD
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
USD
thousands
of which
environmen-
tally
sustainable
(CE)
USD
thousands
of which
environmen-
tally
sustainable
(CE)
USD
thousands
of which
environmen-
tally
sustainable
(PPC)
USD
thousands
of which
environmen-
tally
sustainable
(PPC)
USD
thousands
of which
environmen-
tally
sustainable
(BIO)
USD
thousands
of which
environmen-
tally
sustainable
(BIO)
USD
thousands
of which
environmen-
tally
sustainable
(CCM +
CCA + WTR
CE + PPC
BIO)
USD
thousands
of which
environmen-
tally
sustainable
(CCM +
CCA + WTR
CE + PPC
BIO)
1
1
1
4
1
0
0
5
2
0
3
0
2
0
40,866
5,634
24
23
76
71
11
1
0
1
2
21
1
0
0
0
2
0
0
0
0
0
0
0
0
1
0
0
Annual Report 2024 |
Sustainability Statement | Information pursuant
to Art. 8 of the EU Taxonomy Regulation |
UBS AG standalone
101
GAR KPI stock
GAR KPI stock (Turnover)
31.12.24
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
% (compared to total covered assets in the
denominator)
1
of which
use of
proceeds
of which
transitional
of which
enabling
of which
use of
proceeds
of which
enabling
Of which
Use of
Proceeds
Of which
enabling
GAR - Covered assets in both numerator and
denominator
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
9.6
0.2
0.0
0.0
0.0
0.0
0.0
0.0
Financial undertakings
5.0
0.5
0.0
0.0
0.1
0.0
0.0
0.0
Credit institutions
4.4
0.4
0.0
0.0
0.1
0.0
0.0
Loans and advances
2.1
0.1
0.0
0.0
0.0
0.0
0.0
Debt securities, including UoP
21.5
2.6
0.1
0.0
0.8
0.0
0.0
Equity instruments
1.0
0.0
0.0
Other financial corporations
32.8
4.0
0.0
0.1
0.1
0.0
0.1
of which investment firms
21.3
0.8
0.4
0.3
0.6
0.1
Loans and advances
21.3
0.8
0.4
0.3
0.6
0.1
Debt securities, including UoP
Equity instruments
of which
management companies
0.9
0.0
Loans and advances
0.9
0.0
Debt securities, including UoP
Equity instruments
of which insurance undertakings
11.7
0.9
0.0
0.1
24.1
0.3
Loans and advances
11.7
0.9
0.0
0.1
24.1
0.3
Debt securities, including UoP
Equity instruments
Non-financial undertakings
0.1
0.2
0.0
0.2
0.0
Loans and advances
0.1
0.2
0.0
0.2
0.0
Debt securities, including UoP
Equity instruments
3.7
0.1
0.1
0.0
Households
13.1
of which loans collateralised by residential
immovable property
100.0
of which building renovation loans
of which motor vehicle loans
Local governments financing
3.3
0.1
0.0
0.0
0.0
0.0
Housing financing
Other local government financing
3.3
0.1
0.0
0.0
0.0
0.0
Collateral obtained by taking possession:
residential and commercial immovable properties
Total GAR assets
0.9
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1 Proportions calculated as a percentage of Total Gross Carrying
Amount of each individual line as reported in table Assets for the calculation
of the GAR (Turnover)
2 Proportions calculated as a percentage of Total Gross Carrying
Amount of each individual line as reported in table Assets for the calculation of the GAR (Turnover) relative to Total Assets as reported in the same table
Annual Report 2024 |
Sustainability Statement | Information pursuant
to Art. 8 of the EU Taxonomy Regulation |
UBS AG standalone
102
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion
of total
assets
covered
2
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
of which
use of
proceeds
of which
transitional
of which
enabling
0.3
0.0
10.1
0.2
0.0
0.0
5.1
0.1
0.0
6.5
0.5
0.0
0.0
1.6
5.8
0.4
0.0
0.0
1.5
3.6
0.1
0.0
0.0
0.9
22.3
2.6
0.1
0.0
0.2
2.6
0.0
0.0
0.4
6.6
0.0
32.9
4.0
0.0
0.1
0.0
21.9
0.9
0.4
0.3
0.0
21.9
0.9
0.4
0.3
0.0
2.5
0.0
0.0
2.5
0.0
0.0
36.4
1.2
0.0
0.1
0.0
36.4
1.2
0.0
0.1
0.0
0.0
0.0
0.3
0.2
0.0
0.2
0.0
0.0
0.0
0.3
0.2
0.0
0.2
0.0
3.7
0.1
0.1
0.0
0.0
13.1
3.0
100.0
0.4
2.9
0.0
3.3
0.1
0.0
0.0
0.5
2.9
0.0
3.3
0.1
0.0
0.0
0.5
0.0
0.0
0.0
0.9
0.0
0.0
0.0
54.6
Annual Report 2024 |
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UBS AG standalone
103
31.12.23
1, 2
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
% (compared to total covered assets in the
denominator)
3
of which
use of
proceeds
of which
transitional
of which
enabling
of which
use of
proceeds
of which
enabling
Of which
Use of
Proceeds
Of which
enabling
GAR - Covered assets in both numerator and
denominator
Loans and advances, debt securities and equity
instruments not held-for-trading eligible for GAR
calculation
6.8
0.0
0.0
0.0
Financial undertakings
0.0
0.0
Credit institutions
0.0
0.0
Loans and advances
0.0
0.0
Debt securities
Equity instruments
Other financial corporations
of which investment firms
Loans and advances
Debt securities
Equity instruments
of which management companies
Loans and advances
Debt securities
Equity instruments
of which insurance undertakings
Loans and advances
Debt securities
Equity instruments
Non-financial undertakings
0.0
0.0
0.0
Loans and advances
0.0
0.0
0.0
Debt securities
Equity instruments
Households
11.4
of which loans collateralized by residential
immovable property
100.0
of which building renovation loans
of which motor vehicle loans
Local governments financing
Housing financing
Other local government financing
Collateral obtained by taking possession:
residential and commercial immovable properties
Total GAR assets
5
0.6
0.0
0.0
0.0
1 Comparatives restated as exposures of USD 3.3bn were reclassified
from the denominator to the numerator under Credit institutions/Equity instruments.
2 Comparatives restated to reclassify exposures from the Loans and advances
lines to the Debt securities lines with no impact on total
GAR ratio, refer to table
Assets for the calculation of the GAR
(Turnover)
.
3 Proportions calculated as a percentage of Total Gross
Carrying Amount of each individual line as
reported in the
table
Assets for the
calculation of the GAR
(Turnover)
.
4 Proportions calculated as
a percentage of Total
Gross Carrying Amount
of each individual line
as reported in table
Assets for the
calculation of the GAR
(Turnover)
relative to Total Assets
as reported in the same
table.
5 Taxonomy-eligibility revised
from 0.7% as reported
in 2023 EU Taxonomy
disclosures to 0.9% due to
reclassification of derivatives classified
as held for trading
under IFRS Accounting Standards from Derivatives line (as presented in EU Taxonomy 2023 disclosures) to Trading
book line consistent with clarifications contained in the third Commission notice issued in November 2024.
Annual Report 2024 |
Sustainability Statement | Information pursuant
to Art. 8 of the EU Taxonomy Regulation |
UBS AG standalone
104
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion
of total
assets
covered
4
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
of which
use of
proceeds
of which
transitional
of which
enabling
10.6
0.0
0.0
0.0
4.4
9.5
0.0
0.0
1.8
9.0
0.0
0.0
1.7
7.7
0.0
0.0
0.9
33.1
0.3
0.3
0.6
23.3
0.1
1.0
0.0
1.0
0.0
0.7
0.0
0.0
0.0
0.0
0.5
0.0
0.0
0.0
0.0
98.7
0.0
12.8
0.0
11.4
2.6
100.0
0.3
0.0
0.9
0.0
0.0
0.0
51.8
Annual Report 2024 |
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to Art. 8 of the EU Taxonomy Regulation |
UBS AG standalone
105
GAR KPI stock (CapEx)
31.12.24
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
% (compared to total covered assets in the
denominator)
1
of which
use of
proceeds
of which
transitional
of which
enabling
of which
use of
proceeds
of which
enabling
Of which
Use of
Proceeds
Of which
enabling
GAR - Covered assets in both numerator and
denominator
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
9.7
0.2
0.0
0.0
0.0
0.0
0.0
0.0
Financial undertakings
5.1
0.5
0.0
0.0
0.1
0.0
0.0
0.0
Credit institutions
4.4
0.4
0.0
0.0
0.1
0.0
0.0
Loans and advances
2.1
0.1
0.0
0.0
0.0
0.0
0.0
Debt securities, including UoP
21.6
2.7
0.2
0.1
0.8
0.0
Equity instruments
1.0
0.0
0.0
0.0
Other financial corporations
32.9
4.1
0.0
0.1
0.7
0.0
0.0
0.1
of which investment firms
22.3
1.6
0.7
0.4
0.6
0.1
Loans and advances
22.3
1.6
0.7
0.4
0.6
0.1
Debt securities, including UoP
Equity instruments
of which
management companies
0.9
0.0
Loans and advances
0.9
0.0
Debt securities, including UoP
Equity instruments
of which insurance undertakings
10.4
1.2
0.0
0.2
24.3
0.3
Loans and advances
10.4
1.2
0.0
0.2
24.3
0.3
Debt securities, including UoP
Equity instruments
Non-financial undertakings
93.5
13.1
0.0
0.2
0.0
0.0
Loans and advances
93.5
13.1
0.0
0.2
0.0
0.0
Debt securities, including UoP
Equity instruments
45.5
1.8
0.6
1.8
Households
13.1
of which loans collateralised by residential
immovable property
100.0
of which building renovation loans
of which motor vehicle loans
Local governments financing
3.3
0.1
0.0
0.0
0.0
0.0
0.0
0.0
Housing financing
Other local government financing
3.3
0.1
0.0
0.0
0.0
0.0
0.0
0.0
Collateral obtained by taking possession:
residential and commercial immovable properties
Total GAR assets
0.9
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1 Proportions calculated as a percentage of Total Gross Carrying Amount of each individual line as reported in Assets for the calculation of the
GAR (CapEx)
2 Proportions calculated as a percentage of Total Gross Carrying Amount
of each individual line as reported in table Assets for the calculation of the GAR (CapEx) relative to Total Assets as reported in the same table.
Annual Report 2024 |
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to Art. 8 of the EU Taxonomy Regulation |
UBS AG standalone
106
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion
of total
assets
covered
2
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
of which
use of
proceeds
of which
transitional
of which
enabling
0.3
0.0
10.0
0.2
0.0
0.0
5.1
0.1
0.0
5.9
0.5
0.0
0.0
1.6
5.2
0.4
0.0
0.0
1.5
2.9
0.1
0.0
0.0
0.9
22.4
2.7
0.2
0.1
0.2
1.8
0.0
0.0
0.0
0.4
6.6
0.0
33.6
4.1
0.0
0.1
0.0
22.9
1.7
0.7
0.4
0.0
22.9
1.7
0.7
0.4
0.0
1.7
0.0
0.0
1.7
0.0
0.0
35.1
1.5
0.0
0.2
0.0
35.1
1.5
0.0
0.2
0.0
0.0
0.0
93.7
13.1
0.0
0.2
0.0
0.0
0.0
93.7
13.1
0.0
0.2
0.0
46.0
1.8
0.6
1.8
0.0
13.1
3.0
100.0
0.4
2.9
0.0
3.3
0.1
0.0
0.0
0.5
2.9
0.0
3.3
0.1
0.0
0.0
0.5
0.0
0.0
0.0
0.9
0.0
0.0
0.0
54.6
Annual Report 2024 |
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UBS AG standalone
107
31.12.23
1, 2
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
% (compared to total covered assets in the
denominator)
3
of which
use of
proceeds
of which
transitional
of which
enabling
of which
use of
proceeds
of which
enabling
Of which
Use of
Proceeds
Of which
enabling
GAR - Covered assets in both numerator and
denominator
Loans and advances, debt securities and equity
instruments not held-for-trading eligible for GAR
calculation
6.8
0.0
0.0
0.0
0.0
Financial undertakings
0.0
0.0
Credit institutions
0.0
0.0
Loans and advances
0.0
0.0
Debt securities
Equity instruments
Other financial corporations
0.0
0.0
of which investment firms
Loans and advances
Debt securities
Equity instruments
of which management companies
Loans and advances
Debt securities
Equity instruments
of which insurance undertakings
Loans and advances
Debt securities
Equity instruments
Non-financial undertakings
0.1
0.0
0.0
0.0
Loans and advances
0.1
0.0
0.0
0.0
Debt securities
1.2
1.2
Equity instruments
0.5
Households
11.4
of which loans collateralized by residential
immovable property
100.0
of which building renovation loans
of which motor vehicle loans
Local governments financing
Housing financing
Other local government financing
Collateral obtained by taking possession:
residential and commercial immovable properties
Total GAR assets
5
0.6
0.0
0.0
0.0
0.0
1 Comparatives restated as exposures of USD 3.3bn were reclassified
from the denominator to the numerator under Credit institutions/Equity instruments.
2 Comparatives restated to reclassify exposures from the Loans and advances
lines to the Debt securities
lines with no impact on
total GAR ratio,
refer to table
Assets for the calculation of
the GAR
(CapEx)
.
3 Proportions calculated as a
percentage of Total Gross
Carrying Amount of each individual line
as
reported in the
table
Assets for the calculation of the GAR (CapEx)
.
4 Proportions calculated as a percentage of Total Gross Carrying Amount of each individual line as reported in table
Assets for the calculation of the GAR (CapEx)
relative to Total Assets
as reported in the same
table.
5 Taxonomy-eligibility revised from
0.5% as reported in 2023
EU Taxonomy disclosures
to 0.7% due to reclassification
of derivatives classified as
held for trading under IFRS
Accounting Standards from Derivatives line (as presented in EU Taxonomy 2023 disclosures) to Trading book
line consistent with clarifications contained in the third Commission notice issued in November 2024 .
Annual Report 2024 |
Sustainability Statement | Information pursuant
to Art. 8 of the EU Taxonomy Regulation |
UBS AG standalone
108
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion
of total
assets
covered
4
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
of which
use of
proceeds
of which
transitional
of which
enabling
8.0
0.0
0.0
0.0
4.4
3.0
0.0
0.0
1.8
2.8
0.0
0.0
1.7
3.0
0.0
0.0
0.9
8.4
0.3
0.0
0.6
8.9
0.0
0.0
0.1
0.0
0.0
2.4
0.1
0.0
0.0
0.0
2.3
0.1
0.0
0.0
0.0
90.0
1.2
1.2
0.0
45.9
0.5
0.0
11.4
2.6
100.0
0.3
0.0
0.7
0.0
0.0
0.0
51.8
Annual Report 2024 |
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UBS AG standalone
109
GAR KPI flow
GAR KPI flow (Turnover)
% (compared to flow of total eligible assets)
31.12.24
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
of which environmentally sustainable
(Taxonomy-aligned)
of which
use of
proceeds
of which
transitional
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity instruments
not held-for-trading eligible for GAR calculation
10.9
0.5
0.0
0.0
0.0
0.0
0.0
0.0
Financial undertakings
11.7
1.3
0.0
0.0
0.1
0.0
0.0
0.0
Credit institutions
10.0
1.1
0.0
0.0
0.1
0.0
0.0
Loans and advances
7.4
0.9
0.0
0.0
0.0
0.0
0.0
Debt securities
21.4
2.3
0.1
0.0
0.6
0.0
0.0
Equity instruments
0.9
Other financial corporations
43.0
4.4
0.1
0.1
0.0
0.0
0.0
0.1
of which investment firms
12.1
1.0
0.0
0.5
3.1
0.5
Loans and advances
12.1
1.0
0.0
0.5
3.1
0.5
Debt securities
Equity instruments
of which management companies
1.1
0.1
Loans and advances
1.1
0.1
Debt securities
Equity instruments
of which insurance undertakings
15.9
1.3
0.0
0.2
34.0
0.5
0.0
Loans and advances
15.9
1.3
0.0
0.2
34.0
0.5
0.0
Debt securities
38.1
1.8
0.0
1.1
3.9
3.4
Equity instruments
Non-financial undertakings
0.6
0.1
0.0
0.1
0.0
0.0
Loans and advances
0.6
0.1
0.0
0.1
0.0
0.0
Debt securities
0.6
0.0
Equity instruments
0.6
0.0
Households
14.0
0.0
of which loans collateralized by residential
immovable property
100.0
of which building renovation loans
of which motor vehicle loans
Local governments financing
3.4
0.1
0.0
0.0
0.0
0.0
Housing financing
Other local government financing
3.4
0.1
0.0
0.0
0.0
0.0
Collateral obtained by taking possession: residential
and commercial immovable properties
Total GAR assets
1
10.9
0.5
0.0
0.0
0.0
0.0
0.0
0.0
1 Proportion calculated as a percentage of the total flow in relation to exposures to counterparties and issuers reporting under the EU Taxonomy.
2 Proportion calculated as a percentage of the flow of total assets for each individual
line, relative to the overall flow of total GAR assets.
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31.12.24
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion
of total
new assets
covered
2
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
of which environmentally sustainable
(Taxonomy-aligned)
of which environmentally sustainable
(Taxonomy-aligned)
of which environmentally sustainable
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
transitional
of which
enabling
0.7
0.0
0.0
11.3
0.5
0.0
0.0
100.0
0.3
0.0
12.8
1.3
0.0
0.0
36.0
11.2
1.1
0.0
0.0
34.2
8.7
0.9
0.0
0.0
26.0
22.2
2.3
0.1
0.0
6.9
2.5
1.3
5.8
0.0
43.0
4.4
0.1
0.1
1.8
15.1
1.5
0.0
0.5
0.0
15.1
1.5
0.0
0.5
0.0
2.7
0.1
0.0
2.7
0.1
0.0
1.6
0.0
50.0
1.8
0.0
0.2
0.0
50.1
1.8
0.0
0.2
0.0
42.0
5.2
0.0
1.1
0.0
0.0
0.0
0.0
1.2
0.1
0.0
0.1
0.7
0.0
0.0
0.0
1.2
0.1
0.0
0.1
0.7
0.9
0.0
0.0
0.9
0.0
0.0
14.0
0.0
42.8
100.0
6.0
3.1
0.0
3.4
0.1
0.0
0.0
20.5
3.1
0.0
3.4
0.1
0.0
0.0
20.5
0.7
0.0
0.0
11.3
0.5
0.0
0.0
100.0
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GAR KPI flow (CapEx)
% (compared to flow of total eligible assets)
31.12.24
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
of which environmentally sustainable
(Taxonomy-aligned)
of which
use of
proceeds
of which
transitional
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity instruments
not held-for-trading eligible for GAR calculation
10.7
0.5
0.0
0.0
0.1
0.0
0.0
0.0
Financial undertakings
10.9
1.3
0.0
0.0
0.1
0.0
0.0
0.0
Credit institutions
10.0
1.2
0.0
0.0
0.1
0.0
0.0
0.0
Loans and advances
7.5
0.9
0.0
0.0
0.0
0.0
0.0
0.0
Debt securities
21.5
2.4
0.1
0.1
0.6
0.0
Equity instruments
0.9
Other financial corporations
26.6
3.2
0.1
0.1
0.5
0.0
0.0
0.0
of which investment firms
12.1
1.4
0.0
0.5
3.1
0.5
Loans and advances
12.1
1.4
0.0
0.5
3.1
0.5
Debt securities
Equity instruments
of which management companies
1.1
0.1
Loans and advances
1.1
0.1
Debt securities
Equity instruments
of which insurance undertakings
14.1
1.7
0.1
0.3
34.4
0.5
0.0
0.0
Loans and advances
14.1
1.7
0.1
0.3
34.4
0.5
0.0
0.0
Debt securities
38.8
2.2
0.0
0.1
3.9
3.4
Equity instruments
Non-financial undertakings
7.7
1.1
0.0
0.1
0.0
0.0
0.0
0.0
Loans and advances
7.7
1.1
0.0
0.1
0.0
0.0
0.0
0.0
Debt securities
0.6
0.0
Equity instruments
0.6
0.0
Households
14.0
0.0
of which loans collateralized by residential
immovable property
100.0
of which building renovation loans
of which motor vehicle loans
Local governments financing
3.5
0.1
0.0
0.0
0.0
0.0
0.0
0.0
Housing financing
Other local government financing
3.5
0.1
0.0
0.0
0.0
0.0
0.0
0.0
Collateral obtained by taking possession: residential
and commercial immovable properties
Total GAR assets
1
10.7
0.5
0.0
0.0
0.1
0.0
0.0
0.0
1 Proportion calculated as a percentage of the total flow in relation to exposures to counterparties and issuers reporting under the EU Taxonomy.
2 Proportion calculated as a percentage of the flow of total assets for each individual
line, relative to the overall flow of total GAR assets.
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31.12.24
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion
of total
new assets
covered
2
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
of which environmentally sustainable
(Taxonomy-aligned)
of which environmentally sustainable
(Taxonomy-aligned)
of which environmentally sustainable
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
transitional
of which
enabling
0.7
0.0
0.0
10.9
0.5
0.0
0.0
100.0
0.3
0.0
11.5
1.3
0.0
0.0
36.0
10.7
1.2
0.0
0.0
34.2
8.1
0.9
0.0
0.0
26.0
22.3
2.4
0.1
0.1
6.9
1.8
1.3
5.7
0.0
27.0
3.2
0.1
0.1
1.8
15.2
1.9
0.0
0.5
0.0
15.2
1.9
0.0
0.5
0.0
2.0
0.1
0.0
2.0
0.1
0.0
0.8
0.0
48.6
2.2
0.1
0.3
0.0
48.6
2.2
0.1
0.3
0.0
42.7
5.6
0.0
0.1
0.0
0.0
0.0
0.0
8.0
1.1
0.0
0.1
0.7
0.0
0.0
0.0
8.0
1.1
0.0
0.1
0.7
0.7
0.0
0.0
0.7
0.0
0.0
14.0
0.0
42.8
100.0
6.0
3.1
0.0
3.5
0.1
0.0
0.0
20.5
3.1
0.0
3.5
0.1
0.0
0.0
20.5
0.7
0.0
0.0
10.9
0.5
0.0
0.0
100.0
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KPI off-balance sheet exposures and flow
KPI off-balance sheet exposures (Turnover)
% (compared to total eligible off-balance sheet
assets)
31.12.24
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
of which
use of
proceeds
of which
transitional
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
Financial guarantees (FinGuar KPI)
2.1
0.1
0.0
0.0
2.6
0.0
Assets under management (AuM KPI)
9.1
1.9
0.2
1.0
0.5
0.2
0.0
0.0
0.0
0.0
KPI off-balance sheet exposures (CapEx)
% (compared to total eligible off-balance sheet
assets)
31.12.24
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
of which
use of
proceeds
of which
transitional
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
Financial guarantees (FinGuar KPI)
1.9
0.1
0.0
0.0
2.6
0.0
Assets under management (AuM KPI)
11.1
3.4
0.3
1.6
0.5
0.3
0.0
0.0
0.0
0.0
GAR KPI flow – off-balance sheet exposures (Turnover)
% (compared to flow of total eligible off-balance
sheet assets)
31.12.24
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
of which environmentally sustainable
(Taxonomy-aligned)
of which
use of
proceeds
of which
transitional
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
Financial guarantees (FinGuar KPI)
4.2
0.3
0.0
0.0
7.4
0.1
Assets under management (AuM KPI)
7.9
2.5
0.4
1.4
0.7
0.3
0.0
0.0
0.0
0.0
GAR KPI flow – off-balance sheet exposures (CapEx)
% (compared to flow of total eligible off-balance
sheet assets)
31.12.24
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
of which environmentally sustainable
(Taxonomy-aligned)
of which
use of
proceeds
of which
transitional
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
Financial guarantees (FinGuar KPI)
3.8
0.4
0.0
0.1
7.4
0.1
Assets under management (AuM KPI)
11.9
5.1
0.5
2.8
0.9
0.4
0.1
0.1
0.0
0.0
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31.12.24
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
transitional
of which
enabling
6.1
0.1
0.0
0.0
0.4
0.0
0.0
0.7
0.0
0.0
0.1
19.9
3.1
0.2
1.0
31.12.24
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
transitional
of which
enabling
5.3
0.2
0.0
0.0
0.3
0.0
0.0
0.4
0.0
0.0
0.1
0.0
24.4
5.2
0.3
1.6
31.12.24
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
of which environmentally sustainable
(Taxonomy-aligned)
of which environmentally sustainable
(Taxonomy-aligned)
of which environmentally sustainable
(Taxonomy-aligned)
Proportion of total covered assets funding taxonomy
relevant sectors
(Taxonomy-aligned)
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
transitional
of which
enabling
12.9
0.4
0.0
0.0
0.4
0.0
0.0
0.7
0.0
0.0
0.0
23.7
4.3
0.4
1.4
31.12.24
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
of which environmentally sustainable
(Taxonomy-aligned)
of which environmentally sustainable
(Taxonomy-aligned)
of which environmentally sustainable
(Taxonomy-aligned)
Proportion of total covered assets funding taxonomy
relevant sectors
(Taxonomy-aligned)
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
transitional
of which
enabling
11.9
0.5
0.0
0.1
0.4
0.0
0.0
0.5
0.0
0.0
0.0
0.0
31.5
7.9
0.5
2.8
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Nuclear and fossil gas related activities
Nuclear and fossil gas related activities – GAR Assets
Row
Nuclear energy related activities
31.12.24
1
The undertaking carries out, funds or has exposures to research, development,
demonstration and deployment of innovative electricity generation
facilities that produce energy from nuclear processes
with minimal waste from the fuel cycle.
Yes
2
The undertaking carries out, funds or has exposures to construction and safe
operation of new nuclear installations to produce electricity or process
heat, including for the purposes of district heating or industrial
processes such as hydrogen production, as well
as their safety upgrades, using best
available technologies.
Yes
3
The undertaking carries out, funds or has exposures to safe operation of existing
nuclear installations that produce electricity or process
heat,
including for the purposes of district heating or industrial processes
such as hydrogen production from nuclear energy, as well as their
safety
upgrades.
Yes
Row
Fossil gas related activities
4
The undertaking carries out, funds or has exposures to construction or operation
of electricity generation facilities that produce electricity
using
fossil gaseous fuels.
Yes
5
The undertaking carries out, funds or has exposures to construction, refurbishment,
and operation of combined heat/cool and power generation
facilities using fossil gaseous fuels.
Yes
6
The undertaking carries out, funds or has exposures to construction, refurbishment
and operation of heat generation facilities that produce
heat/cool using fossil gaseous fuels.
Yes
Taxonomy-aligned economic activities (denominator)
– GAR Assets (Turnover)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
2
0.0
2
0.0
0
0.0
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
2
0.0
2
0.0
0
0.0
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1
to 6 above in the denominator of the applicable KPI
75
0.0
75
0.0
0
0.0
8
Total of the applicable KPI
79
0.0
79
0.0
0
0.0
Taxonomy-aligned economic activities (denominator)
– GAR Assets (CapEx)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
1
0.0
1
0.0
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
2
0.0
2
0.0
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1
to 6 above in the denominator of the applicable KPI
85
0.0
85
0.0
0
8
Total of the applicable KPI
89
0.0
89
0.0
0
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to Art. 8 of the EU Taxonomy Regulation |
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116
Taxonomy-aligned economic activities (numerator)
– GAR Assets (Turnover)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.3
0
0.3
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.4
0
0.4
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
2
2.3
2
2.3
0
0.0
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
2
2.2
2
2.2
0
0.1
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1
to 6 above in the numerator of the applicable KPI
75
94.8
75
94.8
0
0.0
8
Total amount and proportion of taxonomy-aligned economic activities
in the numerator of the
applicable KPI
79
100.0
79
99.9
0
0.1
Taxonomy-aligned economic activities (numerator)
– GAR Assets (CapEx)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
1
1.4
1
1.4
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.5
0
0.5
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
2
2.7
2
2.7
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1
to 6 above in the numerator of the applicable KPI
85
95.3
85
95.2
0
0.1
8
Total amount and proportion of taxonomy-aligned economic activities
in the numerator of the
applicable KPI
89
100.0
89
99.9
0
0.1
Taxonomy-eligible but not taxonomy-aligned economic
activities – GAR Assets (Turnover)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
3
0.0
3
0.0
2
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
27
0.0
27
0.0
3
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
5
0.0
5
0.0
4
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
1
0.0
1
0.0
5
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
22
0.0
22
0.0
0
0.0
6
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
1
0.0
1
0.0
7
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities
not referred to in rows 1 to 6 above in the denominator of the applicable KPI
4,596
0.9
4,580
0.9
16
0.0
8
Total amount and proportion of taxonomy-eligible but not Taxonomy
-aligned economic activities
in the denominator of the applicable KPI
4,656
0.9
4,639
0.9
16
0.0
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117
Taxonomy-eligible but not taxonomy-aligned economic
activities – GAR Assets (CapEx)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
0
0.0
0
0.0
2
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
3
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
0
0.0
0
0.0
4
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
11
0.0
11
0.0
5
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
46
0.0
46
0.0
6
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
2
0.0
2
0.0
7
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities
not referred to in rows 1 to 6 above in the denominator of the applicable KPI
4,635
0.9
4,617
0.9
18
0.0
8
Total amount and proportion of taxonomy-eligible but not Taxonomy
-aligned economic activities
in the denominator of the applicable KPI
4,696
0.9
4,677
0.9
18
0.0
Taxonomy non-eligible economic activities – GAR Assets
(Turnover)
Line
Economic activities
USD m
%
1
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.26 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
1
0.0
2
Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.27 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
3
Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
4
Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.29 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
5
Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.30 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
28
0.0
6
Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.31 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
1
0.0
7
Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI
524,185
99.1
8
Total amount and proportion of taxonomy-non-eligible economic activities
in the denominator of the applicable KPI
524,216
99.1
Taxonomy non-eligible economic activities – GAR Assets
(CapEx)
Line
Economic activities
USD m
%
1
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.26 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
2
Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.27 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
3
Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
4
Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.29 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
5
Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.30 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
28
0.0
6
Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.31 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
7
Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable
KPI
524,233
99.1
8
Total amount and proportion of taxonomy-non-eligible economic activities
in the denominator of the applicable KPI
524,262
99.1
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118
Nuclear and fossil gas related activities – Financial Guarantees
Row
Nuclear energy related activities
31.12.24
1
The undertaking carries out, funds or has exposures to research, development,
demonstration and deployment of innovative electricity generation
facilities that produce energy from nuclear processes
with minimal waste from the fuel cycle.
No
2
The undertaking carries out, funds or has exposures to construction and safe
operation of new nuclear installations to produce electricity or process
heat, including for the purposes of district heating or industrial
processes such as hydrogen production, as well
as their safety upgrades, using best
available technologies.
No
3
The undertaking carries out, funds or has exposures to safe operation of existing
nuclear installations that produce electricity or process
heat,
including for the purposes of district heating or industrial processes
such as hydrogen production from nuclear energy, as well as their
safety
upgrades.
No
Row
Fossil gas related activities
4
The undertaking carries out, funds or has exposures to construction or operation
of electricity generation facilities that produce electricity
using
fossil gaseous fuels.
No
5
The undertaking carries out, funds or has exposures to construction, refurbishment,
and operation of combined heat/cool and power generation
facilities using fossil gaseous fuels.
No
6
The undertaking carries out, funds or has exposures to construction, refurbishment
and operation of heat generation facilities that produce
heat/cool using fossil gaseous fuels.
No
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119
Nuclear and fossil gas related activities – AuM
Row
Nuclear energy related activities
31.12.24
1
The undertaking carries out, funds or has exposures to research, development,
demonstration and deployment of innovative electricity generation
facilities that produce energy from nuclear processes
with minimal waste from the fuel cycle.
Yes
2
The undertaking carries out, funds or has exposures to construction and safe
operation of new nuclear installations to produce electricity
or process
heat, including for the purposes of district heating or industrial
processes such as hydrogen production, as well
as their safety upgrades, using best
available technologies.
Yes
3
The undertaking carries out, funds or has exposures to safe operation of existing
nuclear installations that produce electricity or process
heat,
including for the purposes of district heating or industrial processes
such as hydrogen production from nuclear energy, as well as their
safety
upgrades.
Yes
Row
Fossil gas related activities
4
The undertaking carries out, funds or has exposures to construction or operation
of electricity generation facilities that produce electricity
using
fossil gaseous fuels.
Yes
5
The undertaking carries out, funds or has exposures to construction, refurbishment,
and operation of combined heat/cool and power generation
facilities using fossil gaseous fuels.
Yes
6
The undertaking carries out, funds or has exposures to construction, refurbishment
and operation of heat generation facilities that produce
heat/cool using fossil gaseous fuels.
Yes
Taxonomy-aligned economic activities (denominator)
– AuM (Turnover)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
1
0.0
1
0.0
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
64
0.1
64
0.1
0
0.0
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
3
0.0
3
0.0
0
0.0
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1
to 6 above in the denominator of the applicable KPI
1,626
2.0
1,460
1.8
166
0.2
8
Total of the applicable KPI
1,695
2.1
1,529
1.9
166
0.2
Taxonomy-aligned economic activities (denominator)
– AuM (CapEx)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
21
0.0
21
0.0
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
60
0.1
60
0.1
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
1
0.0
1
0.0
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
2
0.0
2
0.0
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
5
0.0
5
0.0
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1
to 6 above in the denominator of the applicable KPI
2,924
3.6
2,705
3.3
219
0.3
8
Total of the applicable KPI
3,012
3.7
2,794
3.4
219
0.3
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120
Taxonomy-aligned economic activities (numerator)
– AuM (Turnover)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
1
0.1
1
0.1
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
64
3.8
64
3.8
0
0.0
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
3
0.2
3
0.2
0
0.0
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1
to 6 above in the numerator of the applicable KPI
1,626
95.9
1,460
86.1
166
9.8
8
Total amount and proportion of taxonomy-aligned economic activities
in the numerator of the
applicable KPI
1,695
100.0
1,529
90.2
166
9.8
Taxonomy-aligned economic activities (numerator)
– AuM (CapEx)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
21
0.7
21
0.7
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
60
2.0
60
2.0
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
1
0.0
1
0.0
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
2
0.1
2
0.1
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
5
0.2
5
0.2
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1
to 6 above in the numerator of the applicable KPI
2,924
97.1
2,705
89.8
219
7.3
8
Total amount and proportion of taxonomy-aligned economic activities
in the numerator of the
applicable KPI
3,012
100.0
2,794
92.7
219
7.3
Taxonomy-eligible but not taxonomy-aligned economic
activities – AuM (Turnover)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
2
0.0
2
0.0
2
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
25
0.0
25
0.0
3
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
6
0.0
6
0.0
4
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
18
0.0
18
0.0
0
0.0
5
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
43
0.1
43
0.1
0
0.0
6
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
1
0.0
1
0.0
7
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities
not referred to in rows 1 to 6 above in the denominator of the applicable KPI
6,098
7.4
5,851
7.1
247
0.3
8
Total amount and proportion of taxonomy-eligible but not Taxonomy
-aligned economic activities
in the denominator of the applicable KPI
6,193
7.5
5,946
7.2
247
0.3
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121
Taxonomy-eligible but not taxonomy-aligned economic
activities – AuM (CapEx)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
0
0.0
0
0.0
2
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
0
0.0
0
0.0
3
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
1
0.0
1
0.0
4
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
7
0.0
7
0.0
0
0.0
5
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
51
0.1
51
0.1
6
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
2
0.0
2
0.0
7
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities
not referred to in rows 1 to 6 above in the denominator of the applicable KPI
6,471
7.9
6,245
7.6
226
0.3
8
Total amount and proportion of taxonomy-eligible but not Taxonomy
-aligned economic activities
in the denominator of the applicable KPI
6,532
7.9
6,306
7.7
226
0.3
Taxonomy non-eligible economic activities – AuM (Turnover)
Line
Economic activities
USD m
%
1
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.26 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
4
0.0
2
Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.27 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
1
0.0
3
Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
14
0.0
4
Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.29 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
21
0.0
5
Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.30 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
6
Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.31 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
4
0.0
7
Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI
65,892
80.0
8
Total amount and proportion of taxonomy-non-eligible economic activities
in the denominator of the applicable KPI
65,937
80.1
Taxonomy non-eligible economic activities – AuM (CapEx)
Line
Economic activities
USD m
%
1
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.26 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
2
Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.27 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
33
0.0
3
Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
4
0.0
4
Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.29 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
1
0.0
5
Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.30 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
21
0.0
6
Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.31 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
7
Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI
62,198
75.5
8
Total amount and proportion of taxonomy-non-eligible economic activities
in the denominator of the applicable KPI
62,257
75.6
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Nuclear and fossil gas related activities – Flow GAR
Assets
Row
Nuclear energy related activities
31.12.24
1
The undertaking carries out, funds or has exposures to research, development,
demonstration and deployment of innovative electricity generation
facilities that produce energy from nuclear processes
with minimal waste from the fuel cycle.
Yes
2
The undertaking carries out, funds or has exposures to construction and safe
operation of new nuclear installations to produce electricity
or process
heat, including for the purposes of district heating or industrial
processes such as hydrogen production, as well
as their safety upgrades, using best
available technologies.
Yes
3
The undertaking carries out, funds or has exposures to safe operation of existing
nuclear installations that produce electricity or process
heat,
including for the purposes of district heating or industrial processes
such as hydrogen production from nuclear energy, as well as their
safety
upgrades.
Yes
Row
Fossil gas related activities
4
The undertaking carries out, funds or has exposures to construction or operation
of electricity generation facilities that produce electricity
using
fossil gaseous fuels.
Yes
5
The undertaking carries out, funds or has exposures to construction, refurbishment,
and operation of combined heat/cool and power generation
facilities using fossil gaseous fuels.
Yes
6
The undertaking carries out, funds or has exposures to construction, refurbishment
and operation of heat generation facilities that produce
heat/cool using fossil gaseous fuels.
Yes
Taxonomy-aligned economic activities (denominator)
– Flow GAR Assets (Turnover)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
6
0.0
6
0.0
0
0.0
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
2
0.0
2
0.0
0
0.0
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1
to 6 above in the denominator of the applicable KPI
222
0.5
222
0.5
0
0.0
8
Total of the applicable KPI
230
0.5
230
0.5
0
0.0
Taxonomy-aligned economic activities (denominator)
– Flow GAR Assets (CapEx)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
3
0.0
3
0.0
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
2
0.0
2
0.0
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
2
0.0
2
0.0
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1
to 6 above in the denominator of the applicable KPI
222
0.5
222
0.5
0
0.0
8
Total of the applicable KPI
230
0.5
230
0.5
0
0.0
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123
Taxonomy-aligned economic activities (numerator)
– Flow GAR Assets (Turnover)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.1
0
0.1
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.2
0
0.2
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
6
2.5
6
2.5
0
0.0
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
2
0.8
2
0.7
0
0.0
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1
to 6 above in the numerator of the applicable KPI
222
96.4
222
96.4
0
0.0
8
Total amount and proportion of taxonomy-aligned economic activities
in the numerator of the
applicable KPI
230
100.0
230
100.0
0
0.0
Taxonomy-aligned economic activities (numerator)
– Flow GAR Assets (CapEx)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
3
1.4
3
1.4
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
2
0.9
2
0.9
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
2
1.0
2
1.0
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1
to 6 above in the numerator of the applicable KPI
222
96.6
222
96.5
0
0.1
8
Total amount and proportion of taxonomy-aligned economic activities
in the numerator of the
applicable KPI
230
100.0
230
99.9
0
0.1
Taxonomy-eligible but not taxonomy-aligned economic
activities – Flow GAR Assets (Turnover)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
4
0.0
4
0.0
2
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
50
0.1
50
0.1
3
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
9
0.0
9
0.0
4
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
14
0.0
14
0.0
5
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
52
0.1
52
0.1
0
0.0
6
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
3
0.0
3
0.0
7
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities
not referred to in rows 1 to 6 above in the denominator of the applicable KPI
4,691
10.2
4,669
10.1
22
0.0
8
Total amount and proportion of taxonomy-eligible but not Taxonomy
-aligned economic activities
in the denominator of the applicable KPI
4,823
10.4
4,801
10.4
22
0.0
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Taxonomy-eligible but not taxonomy-aligned economic
activities – Flow GAR Assets (CapEx)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
0
0.0
0
0.0
2
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
0
0.0
0
0.0
3
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
0
0.0
0
0.0
4
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
21
0.0
21
0.0
5
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
81
0.2
81
0.2
6
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
5
0.0
5
0.0
7
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities
not referred to in rows 1 to 6 above in the denominator of the applicable KPI
4,612
10.0
4,587
9.9
25
0.1
8
Total amount and proportion of taxonomy-eligible but not Taxonomy
-aligned economic activities
in the denominator of the applicable KPI
4,720
10.2
4,695
10.2
25
0.1
Taxonomy non-eligible economic activities – Flow GAR
Assets (Turnover)
Line
Economic activities
USD m
%
1
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.26 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
2
0.0
2
Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.27 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
3
Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
4
Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.29 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
5
Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.30 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
28
0.1
6
Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.31 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
2
0.0
7
Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable
KPI
40,898
88.6
8
Total amount and proportion of taxonomy-non-eligible economic activities
in the denominator of the applicable KPI
40,932
88.7
Taxonomy non-eligible economic activities – Flow GAR
Assets (CapEx)
Line
Economic activities
USD m
%
1
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.26 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
2
Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.27 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
3
Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
4
Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.29 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
5
Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.30 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
28
0.1
6
Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.31 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
7
Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable
KPI
41,089
89.0
8
Total amount and proportion of taxonomy-non-eligible economic activities
in the denominator of the applicable KPI
41,118
89.1
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Nuclear and fossil gas related activities – Flow financial
guarantees
Row
Nuclear energy related activities
31.12.24
1
The undertaking carries out, funds or has exposures to research, development,
demonstration and deployment of innovative electricity generation
facilities that produce energy from nuclear processes
with minimal waste from the fuel cycle.
No
2
The undertaking carries out, funds or has exposures to construction and safe
operation of new nuclear installations to produce electricity or process
heat, including for the purposes of district heating or industrial
processes such as hydrogen production, as well
as their safety upgrades, using best
available technologies.
No
3
The undertaking carries out, funds or has exposures to safe operation of existing
nuclear installations that produce electricity or process
heat,
including for the purposes of district heating or industrial processes
such as hydrogen production from nuclear energy, as well as their
safety
upgrades.
No
Row
Fossil gas related activities
4
The undertaking carries out, funds or has exposures to construction or operation
of electricity generation facilities that produce electricity
using
fossil gaseous fuels.
No
5
The undertaking carries out, funds or has exposures to construction, refurbishment,
and operation of combined heat/cool and power generation
facilities using fossil gaseous fuels.
No
6
The undertaking carries out, funds or has exposures to construction, refurbishment
and operation of heat generation facilities that produce
heat/cool using fossil gaseous fuels.
No
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Nuclear and fossil gas related activities – Flow AuM
Row
Nuclear energy related activities
31.12.24
1
The undertaking carries out, funds or has exposures to research, development,
demonstration and deployment of innovative electricity generation
facilities that produce energy from nuclear processes
with minimal waste from the fuel cycle.
Yes
2
The undertaking carries out, funds or has exposures to construction and safe
operation of new nuclear installations to produce electricity or process
heat, including for the purposes of district heating or industrial
processes such as hydrogen production, as well
as their safety upgrades, using best
available technologies.
Yes
3
The undertaking carries out, funds or has exposures to safe operation of existing
nuclear installations that produce electricity or process
heat,
including for the purposes of district heating or industrial processes
such as hydrogen production from nuclear energy, as well as their
safety
upgrades.
Yes
Row
Fossil gas related activities
4
The undertaking carries out, funds or has exposures to construction or operation
of electricity generation facilities that produce electricity
using
fossil gaseous fuels.
Yes
5
The undertaking carries out, funds or has exposures to construction, refurbishment,
and operation of combined heat/cool and power generation
facilities using fossil gaseous fuels.
Yes
6
The undertaking carries out, funds or has exposures to construction, refurbishment
and operation of heat generation facilities that produce
heat/cool using fossil gaseous fuels.
Yes
Taxonomy-aligned economic activities (denominator)
– Flow AuM (Turnover)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
1
0.0
1
0.0
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
48
0.1
48
0.1
0
0.0
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
4
0.0
3
0.0
0
0.0
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1
to 6 above in the denominator of the applicable KPI
1,764
2.7
1,567
2.4
197
0.3
8
Total of the applicable KPI
1,817
2.8
1,620
2.5
197
0.3
Taxonomy-aligned economic activities (denominator)
– Flow AuM (CapEx)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
9
0.0
9
0.0
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
46
0.1
46
0.1
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
5
0.0
5
0.0
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1
to 6 above in the denominator of the applicable KPI
3,557
5.5
3,272
5.0
285
0.4
8
Total of the applicable KPI
3,617
5.5
3,332
5.1
285
0.4
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Taxonomy-aligned economic activities (numerator)
– Flow AuM (Turnover)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
1
0.1
1
0.1
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
48
2.6
48
2.6
0
0.0
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
4
0.2
3
0.2
0
0.0
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1
to 6 above in the numerator of the applicable KPI
1,764
97.1
1,567
86.3
197
10.8
8
Total amount and proportion of taxonomy-aligned economic activities
in the numerator of the
applicable KPI
1,817
100.0
1,620
89.2
197
10.8
Taxonomy-aligned economic activities (numerator)
– Flow AuM (CapEx)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
9
0.3
9
0.3
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
46
1.3
46
1.3
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
5
0.1
5
0.1
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1
to 6 above in the numerator of the applicable KPI
3,557
98.3
3,272
90.5
285
7.9
8
Total amount and proportion of taxonomy-aligned economic activities
in the numerator of the
applicable KPI
3,617
100.0
3,332
92.1
285
7.9
Taxonomy-eligible but not taxonomy-aligned economic
activities – Flow AuM (Turnover)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
3
0.0
3
0.0
2
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
4
0.0
4
0.0
3
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
3
0.0
3
0.0
4
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
19
0.0
19
0.0
5
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
51
0.1
51
0.1
0
0.0
6
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
0
0.0
0
0.0
7
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities
not referred to in rows 1 to 6 above in the denominator of the applicable KPI
3,690
5.7
3,438
5.3
252
0.4
8
Total amount and proportion of taxonomy-eligible but not Taxonomy
-aligned economic activities
in the denominator of the applicable KPI
3,770
5.8
3,518
5.4
252
0.4
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128
Taxonomy-eligible but not taxonomy-aligned economic
activities – Flow AuM (CapEx)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
1
0.0
1
0.0
2
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
0
0.0
0
0.0
3
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
1
0.0
1
0.0
4
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
2
0.0
2
0.0
0
0.0
5
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
55
0.1
55
0.1
6
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
2
0.0
2
0.0
7
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities
not referred to in rows 1 to 6 above in the denominator of the applicable KPI
4,682
7.2
4,383
6.7
299
0.5
8
Total amount and proportion of taxonomy-eligible but not Taxonomy
-aligned economic activities
in the denominator of the applicable KPI
4,742
7.3
4,443
6.8
299
0.5
Taxonomy non-eligible economic activities – Flow AuM
(Turnover)
Line
Economic activities
USD m
%
1
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.26 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
2
0.0
2
Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.27 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
3
Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
11
0.0
4
Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.29 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
58
0.1
5
Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.30 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
1
0.0
6
Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.31 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
3
0.0
7
Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI
49,689
76.2
8
Total amount and proportion of taxonomy-non-eligible economic activities
in the denominator of the applicable KPI
49,763
76.3
Taxonomy non-eligible economic activities – Flow AuM
(CapEx)
Line
Economic activities
USD m
%
1
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.26 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
2
Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.27 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
25
0.0
3
Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
3
0.0
4
Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.29 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
1
0.0
5
Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.30 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
58
0.1
6
Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.31 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
7
Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI
44,570
68.4
8
Total amount and proportion of taxonomy-non-eligible economic activities
in the denominator of the applicable KPI
44,656
68.5
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129
Annual Report 2024 |
Sustainability Statement | Information pursuant to Art. 8 of the EU
Taxonomy Regulation | UBS Europe SE consolidated
130
UBS Europe SE consolidated
1
Annual Report 2024 |
Sustainability Statement | Information pursuant to Art. 8 of the EU
Taxonomy Regulation | UBS Europe SE consolidated
131
Assets for the calculation of the GAR
Assets for the calculation of the GAR (Turnover)
31.12.24
Total
gross
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
of which environmentally sustainable
(Taxonomy-aligned)
of which environmentally
sustainable
(Taxonomy-aligned)
USD m
of which
use of
proceeds
of which
transitional
of which
enabling
of which
use of
proceeds
of which
enabling
GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation
10,520
422
24
1
1
9
0
0
Financial undertakings
6,308
285
24
1
1
9
0
0
Credit institutions
6,299
283
24
1
1
9
0
0
Loans and advances
5,071
74
6
0
0
0
0
0
Debt securities, including UoP
1,229
208
18
1
1
9
Equity instruments
0
0
0
Other financial corporations
9
2
0
0
0
0
0
0
of which investment firms
8
2
0
0
0
0
0
Loans and advances
8
2
0
0
0
0
0
Debt securities, including UoP
Equity instruments
of which
management companies
0
0
0
0
0
Loans and advances
0
0
0
0
0
Debt securities, including UoP
Equity instruments
of which insurance undertakings
0
0
0
0
0
0
0
0
Loans and advances
0
0
0
0
0
0
0
0
Debt securities, including UoP
Equity instruments
Non-financial undertakings
225
0
0
0
0
Loans and advances
225
0
0
0
0
Debt securities, including UoP
0
Equity instruments
0
Households
2
2,890
137
of which loans collateralised by residential immovable property
137
137
of which building renovation loans
of which motor vehicle loans
Local governments financing
1,096
0
0
0
0
0
0
Housing financing
Other local government financing
1,096
0
0
0
0
0
0
Collateral obtained by taking possession: residential and commercial immovable properties
0
Assets excluded from the numerator for GAR calculation (covered in the denominator)
14,888
Financial and Non-financial undertakings
3
7,321
SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations
4,773
Loans and advances
3,863
of which loans collateralised by commercial immovable property
0
of which building renovation loans
Debt securities
909
Equity instruments
1
Non-EU country counterparties not subject to NFRD disclosure obligations
2,548
Loans and advances
1,626
Debt securities
914
Equity instruments
7
Derivatives
4
4,601
On demand interbank loans
1,925
Cash and cash-related assets
0
Other categories of assets (e.g. Goodwill, commodities etc.)
1,041
Total GAR assets
25,408
422
24
1
1
9
0
0
Assets not covered for GAR calculation
32,118
Central governments and Supranational issuers
1,343
Central banks exposure
12,362
Trading book
4
18,413
Total assets
57,526
422
24
1
1
9
0
0
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
5
Financial guarantees
Assets under management
61,962
5,779
1,696
155
966
673
59
17
of which debt securities
20,127
3,053
821
83
433
231
20
8
of which equity instruments
35,985
2,296
834
69
524
412
36
9
1 Within tables in this section, blank fields indicate non-applicability, non-availability of required information, actual zero or that presentation of any content would not be meaningful. Zero values generally indicate that the respective
figure is zero on
a rounded basis.
2 Includes loans collateralized by commercial immovable property.
3 Includes USD 342.7m (2023: USD 228.2m) exposures to multi-development bank, which in comparative period was presented
under Central
governments and
Supranational issuers.
4 Comparatives
revised to
reclassify derivatives
classified as
held for
trading under
IFRS Accounting
Standards from
Derivatives line
to Trading
book line consistent
with
clarifications contained in the third
Commission notice issued in November
2024.
5 As required by the standardized
template, the total gross carrying amount was calculated
on the basis of off-balance sheet exposures
to undertakings
subject to NFRD.
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132
)
Water and marine resources (WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
of which environmentally sustainable
(Taxonomy-aligned)
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
of which
use of
proceeds
of which
transitional
of which
enabling
0
0
0
0
0
480
24
1
1
0
342
24
1
1
0
340
24
1
1
0
91
6
0
0
249
18
1
1
0
0
2
0
0
0
2
0
0
0
2
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
137
137
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
480
24
1
1
0
0
0
0
0
480
24
1
1
6
3
0
354
22
11
820
8
4
25
21,363
2,511
145
996
2
1
0
108
4
2
137
5
4
11
7,149
1,478
77
449
4
2
0
246
19
9
683
3
0
14
13,212
913
65
539
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133
31.12.23
Total
gross
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
of which environmentally sustainable
(Taxonomy-aligned)
of which environmentally
sustainable
(Taxonomy-aligned)
USD m
of which
use of
proceeds
of which
transitional
of which
enabling
of which
use of
proceeds
of which
enabling
GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity instruments not held-for-trading
eligible for GAR
calculation
6,424
186
0
0
Financial undertakings
3,615
0
Credit institutions
3,574
Loans and advances
2,974
Debt securities
600
Equity instruments
0
Other financial corporations
42
0
of which investment firms
42
Loans and advances
42
Debt securities
Equity instruments
of which management companies
0
Loans and advances
0
Debt securities
Equity instruments
of which insurance undertakings
0
0
Loans and advances
0
0
Debt securities
Equity instruments
Non-financial undertakings
0
0
0
Loans and advances
0
0
0
Debt securities
Equity instruments
Households
2,808
186
of which loans collateralized by residential immovable property
186
186
of which building renovation loans
of which motor vehicle loans
Local governments financing
Housing financing
Other local government financing
Collateral obtained by taking possession: residential and commercial immovable properties
0
Assets excluded from the numerator for GAR calculation (covered in the denominator)
13,554
Financial and Non-financial undertakings
6,538
SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations
4,059
Loans and advances
3,033
of which loans collateralised by commercial immovable property
of which building renovation loans
Debt securities
1,025
Equity instruments
1
Non-EU country counterparties not subject to NFRD disclosure obligations
2,479
Loans and advances
1,508
Debt securities
968
Equity instruments
3
Derivatives
1
3,945
On demand interbank loans
1,995
Cash and cash-related assets
0
Other categories of assets
1,076
Total GAR assets
19,978
186
0
0
Assets not covered for GAR calculation
31,894
Central governments and supranational issuers
2
2,246
Central banks exposure
11,922
Trading book
1
17,725
Total assets
51,872
186
0
0
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
3
Financial guarantees
Assets under management
34,560
715
19
440
8
of which debt securities
7,014
264
7
130
5
of which equity instruments
25,372
451
13
310
3
1 Revised to reclassify derivatives of USD
13.8bn classified as held for trading
under IFRS Accounting Standards from Derivatives
line (as presented in 2023 disclosures)
to Trading book line
consistent with clarifications contained in
the third Commission notice issued in November 2024.
2 Includes local governments financing when the use of proceeds is not known.
3 As required by the standardized template, the total gross carrying
amount was calculated
on the basis of off-balance sheet exposures to undertakings subject to NFRD.
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134
Water and marine resources (WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
of which environmentally sustainable
(Taxonomy-aligned)
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
of which
use of
proceeds
of which
transitional
of which
enabling
505
0
0
319
0
319
173
146
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
186
186
505
0
0
505
0
0
9,219
723
19
440
2,258
269
7
130
6,623
454
13
310
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135
Assets for the calculation of the GAR (CapEx)
31.12.24
1
Total
gross
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
of which environmentally sustainable
(Taxonomy-aligned)
of which environmentally
sustainable
(Taxonomy-aligned)
USD m
of which
use of
proceeds
of which
transitional
of which
enabling
of which
use of
proceeds
of which
enabling
GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation
10,520
420
27
2
2
9
0
0
Financial undertakings
6,308
282
27
2
2
9
0
0
Credit institutions
2
6,299
280
26
2
2
9
0
0
Loans and advances
5,071
74
6
1
1
0
0
0
Debt securities, including UoP
1,229
206
20
1
1
9
0
Equity instruments
0
0
0
Other financial corporations
9
2
0
0
0
0
0
of which investment firms
8
2
0
0
0
0
0
Loans and advances
8
2
0
0
0
0
0
Debt securities, including UoP
Equity instruments
of which
management companies
0
0
0
0
0
Loans and advances
0
0
0
0
0
Debt securities, including UoP
Equity instruments
of which insurance undertakings
0
0
0
0
0
0
0
Loans and advances
0
0
0
0
0
0
0
Debt securities, including UoP
Equity instruments
Non-financial undertakings
225
0
0
0
0
0
0
Loans and advances
225
0
0
0
0
0
0
Debt securities, including UoP
0
0
0
0
Equity instruments
0
0
0
0
Households
2
2,890
137
of which loans collateralised by residential immovable property
137
137
of which building renovation loans
of which motor vehicle loans
Local governments financing
1,096
0
0
0
0
0
0
0
Housing financing
Other local government financing
1,096
0
0
0
0
0
0
0
Collateral obtained by taking possession: residential and commercial immovable properties
0
Assets excluded from the numerator for GAR calculation (covered in the denominator)
14,888
Financial and Non-financial undertakings
3
7,321
SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations
4,773
Loans and advances
3,863
of which loans collateralised by commercial immovable property
0
of which building renovation loans
Debt securities
909
Equity instruments
1
Non-EU country counterparties not subject to NFRD disclosure obligations
2,548
Loans and advances
1,626
Debt securities
914
Equity instruments
7
Derivatives
4
4,601
On demand interbank loans
1,925
Cash and cash-related assets
0
Other categories of assets (e.g. Goodwill, commodities etc.)
1,041
Total GAR assets
25,408
420
27
2
2
9
0
0
Assets not covered for GAR calculation
32,118
Central governments and Supranational issuers
1,343
Central banks exposure
12,362
Trading book
4
18,413
Total assets
57,526
420
27
2
2
9
0
0
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
5
Financial guarantees
Assets under management
61,962
8,005
3,850
339
2,234
626
126
65
of which debt securities
20,127
3,590
1,481
112
758
162
50
31
of which equity instruments
35,985
3,978
2,325
221
1,465
435
73
35
1 Within tables in this
section, blank fields indicate non-applicability
or that presentation of any
content would not be meaningful.
Zero values generally
indicate that the respective
figure is zero on an
actual or rounded basis.
2
Includes loans collateralized
by commercial immovable
property.
3 Includes USD
342.7m (2023: USD
228.2m) exposures to multi-development
bank, which in
comparative period was
presented under Central
governments and
Supranational issuers.
4 Comparatives revised
to reclassify derivatives
classified as held
for trading under
IFRS Accounting Standards
from Derivatives line
to Trading
book line consistent
with clarifications contained in
the third
Commission notice issued in November 2024.
5 As required by the standardized template, the total gross carrying amount was calculated on the basis of off-balance sheet exposures to undertakings subject to NFRD.
Annual Report 2024 |
Sustainability Statement | Information pursuant to Art. 8 of the EU
Taxonomy Regulation | UBS Europe SE consolidated
136
Water and marine resources (WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
of which environmentally sustainable
(Taxonomy-aligned)
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
of which
use of
proceeds
of which
transitional
of which
enabling
0
0
0
0
468
27
2
3
0
330
27
2
2
0
328
27
2
2
0
80
7
1
1
248
20
1
1
0
0
2
0
0
0
2
0
0
0
2
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
137
137
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
468
27
2
3
0
0
0
0
468
27
2
3
10
5
0
354
22
11
820
8
4
25
21,957
5,101
339
2,270
3
2
0
108
4
2
137
5
4
11
9,408
2,517
112
784
6
3
0
246
19
9
683
3
0
14
11,317
2,413
221
1,476
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137
31.12.23
Total
gross
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
of which environmentally sustainable
(Taxonomy-aligned)
of which environmentally
sustainable
(Taxonomy-aligned)
USD m
of which
use of
proceeds
of which
transitional
of which
enabling
of which
use of
proceeds
of which
enabling
GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity instruments not held-for-trading
eligible for GAR
calculation
6,424
186
0
0
0
Financial undertakings
3,615
Credit institutions
3,574
Loans and advances
2,974
Debt securities
600
Equity instruments
0
Other financial corporations
42
of which investment firms
42
Loans and advances
42
Debt securities
Equity instruments
of which management companies
0
Loans and advances
0
Debt securities
Equity instruments
of which insurance undertakings
0
Loans and advances
0
Debt securities
Equity instruments
Non-financial undertakings
0
0
0
0
Loans and advances
0
0
0
0
Debt securities
Equity instruments
Households
2,808
186
of which loans collateralized by residential immovable property
186
186
of which building renovation loans
of which motor vehicle loans
Local governments financing
Housing financing
Other local government financing
Collateral obtained by taking possession: residential and commercial immovable properties
0
Assets excluded from the numerator for GAR calculation (covered in the denominator)
13,554
Financial and Non-financial undertakings
6,538
SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations
4,059
Loans and advances
3,033
of which loans collateralised by commercial immovable property
of which building renovation loans
Debt securities
1,025
Equity instruments
1
Non-EU country counterparties not subject to NFRD disclosure obligations
2,479
Loans and advances
1,508
Debt securities
968
Equity instruments
3
Derivatives
1
3,945
On demand interbank loans
1,995
Cash and cash-related assets
0
Other categories of assets
1,076
Total GAR assets
19,978
186
0
0
0
Assets not covered for GAR calculation
31,894
Central governments and supranational issuers
2
2,246
Central banks exposure
11,922
Trading book
1
17,725
Total assets
51,872
186
0
0
0
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
3
Financial guarantees
Assets under management
34,560
1,762
165
870
24
of which debt securities
7,014
660
24
325
16
of which equity instruments
25,372
1,102
141
545
8
1 Revised to reclassify derivatives of USD
13.8bn classified as held for trading
under IFRS Accounting Standards from Derivatives
line (as presented in 2023 disclosures)
to Trading book line
consistent with clarifications contained in
the third Commission notice issued in November 2024.
2 Includes local governments financing when the use of proceeds is not known.
3 As required by the standardized template, the total gross carrying
amount was calculated
on the basis of off-balance sheet exposures to undertakings subject to NFRD.
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138
Water and marine resources (WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
of which environmentally sustainable
(Taxonomy-aligned)
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
of which
use of
proceeds
of which
transitional
of which
enabling
351
0
0
0
166
166
124
42
0
0
0
0
0
0
0
0
186
186
351
0
0
0
351
0
0
0
8,508
1,786
165
870
2,101
676
24
325
6,243
1,111
141
545
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139
GAR sector information
GAR sector information (Turnover)
Breakdown by sector - NACE 4 digits level
(code and label)
1
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not
subject to NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not
subject to NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not
subject to NFRD
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
USD
thousands
of which
environmen-
tally
sustainable
(CCM)
USD
thousands
of which
environmen-
tally
sustainable
(CCM)
USD
thousands
of which
environmen-
tally
sustainable
(CCA)
of which
environmen-
tally
sustainable
(CCA)
USD
thousands
of which
environmen-
tally
sustainable
(WTR)
USD
thousands
of which
environmen
-tally
sustainable
(WTR)
USD thousand
3521 - Manufacture of gas
0
0
8299 - Other business support services activities n.e.c.
0
0
1 The information included in this table represents taxonomy-eligible and taxonomy-aligned amounts as reported in table Assets for the calculation of the GAR (Turnover), irrespective of whether the NACE code for principal activity is
associated with taxonomy-eligible or taxonomy-aligned economic activities.
GAR sector information (CapEx)
Breakdown by sector - NACE 4 digits level
(code and label)
1
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not
subject to NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not
subject to NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not
subject to NFRD
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
USD
thousands
of which
environmen-
tally
sustainable
(CCM)
USD
thousands
of which
environmen-
tally
sustainable
(CCM)
USD
thousands
of which
environmen-
tally
sustainable
(CCA)
of which
environmen-
tally
sustainable
(CCA)
USD
thousands
of which
environmen-
tally
sustainable
(WTR)
USD
thousands
of which
environmen
-tally
sustainable
(WTR)
USD thousand
3521 - Manufacture of gas
0
0
8299 - Other business support services activities n.e.c.
0
0
6419 - Other monetary intermediation
293
90
1 The information included in this table
represents taxonomy-eligible and taxonomy-aligned amounts as reported
in table Assets for the calculation of the
GAR (CapEx), irrespective of whether the NACE
code for principal activity is
associated with taxonomy-eligible or taxonomy-aligned economic activities.
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140
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not
subject to NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not
subject to NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not
subject to NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not
subject to NFRD
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
USD
thousands
of which
environmen-
tally
sustainable
(CE)
USD
thousands
of which
environmen-
tally
sustainable
(CE)
USD
thousands
of which
environmen-
tally
sustainable
(PPC)
USD
thousands
of which
environmen-
tally
sustainable
(PPC)
USD
thousands
of which
environmen-
tally
sustainable
(BIO)
USD
thousands
of which
environmen-
tally
sustainable
(BIO)
USD
thousands
of which
environmen-
tally
sustainable
(CCM +
CCA + WTR
CE + PPC
BIO)
USD
thousands
of which
environmen-
tally
sustainable
(CCM +
CCA + WTR
CE + PPC
BIO)
0
0
0
0
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not
subject to NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not
subject to NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not
subject to NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not
subject to NFRD
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
USD
thousands
of which
environmen-
tally
sustainable
(CE)
USD
thousands
of which
environmen-
tally
sustainable
(CE)
USD
thousands
of which
environmen-
tally
sustainable
(PPC)
USD
thousands
of which
environmen-
tally
sustainable
(PPC)
USD
thousands
of which
environmen-
tally
sustainable
(BIO)
USD
thousands
of which
environmen-
tally
sustainable
(BIO)
USD
thousands
of which
environmen-
tally
sustainable
(CCM +
CCA + WTR
CE + PPC
BIO)
USD
thousands
of which
environmen-
tally
sustainable
(CCM +
CCA + WTR
CE + PPC
BIO)
0
0
0
0
293
90
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141
GAR KPI stock
GAR KPI stock (Turnover)
31.12.24
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
% (compared to total covered assets in the
denominator)
1
of which
use of
proceeds
of which
transitional
of which
enabling
of which
use of
proceeds
of which
enabling
Of which
Use of
Proceeds
Of which
enabling
GAR - Covered assets in both numerator and
denominator
Loans and advances, debt securities and equity
instruments not held-for-trading eligible for GAR
calculation
4.0
0.2
0.0
0.0
0.1
0.0
0.0
0.0
Financial undertakings
4.5
0.4
0.0
0.0
0.1
0.0
0.0
Credit institutions
4.5
0.4
0.0
0.0
0.1
0.0
0.0
Loans and advances
1.5
0.1
0.0
0.0
0.0
0.0
0.0
Debt securities
17.0
1.5
0.1
0.0
0.7
Equity instruments
0.6
0.0
Other financial corporations
22.0
0.8
0.5
0.2
0.0
0.0
0.0
of which investment firms
23.2
0.8
0.5
0.2
0.0
0.0
Loans and advances
23.2
0.8
0.5
0.2
0.0
0.0
Debt securities
Equity instruments
of which management companies
0.6
0.0
0.0
0.0
Loans and advances
0.6
0.0
0.0
0.0
Debt securities
Equity instruments
of which insurance undertakings
11.3
4.0
0.2
1.0
0.0
0.0
0.0
Loans and advances
11.3
4.0
0.2
1.0
0.0
0.0
0.0
Debt securities
Equity instruments
Non-financial undertakings
0.0
0.0
0.0
0.0
Loans and advances
0.0
0.0
0.0
0.0
Debt securities
Equity instruments
Households
4.7
of which loans collateralized by residential
immovable property
100.0
of which building renovation loans
of which motor vehicle loans
Local governments financing
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Housing financing
Other local government financing
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Collateral obtained by taking possession:
residential and commercial immovable properties
Total GAR assets
1.7
0.1
0.0
0.0
0.0
0.0
0.0
0.0
1 Proportions calculated as a percentage of Total Gross Carrying
Amount of each individual line as reported in table Assets for the calculation
of the GAR (Turnover)
2 Proportions calculated as a percentage of Total Gross Carrying
Amount of each individual line as reported in table Assets for the calculation of the GAR (Turnover) relative to Total Assets as reported in the same table.
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Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion
of total
assets
covered
2
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-aligned)
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
of which
use of
proceeds
of which
transitional
of which
enabling
0.0
0.0
0.0
0.0
4.6
0.2
0.0
0.0
18.3
0.0
5.4
0.4
0.0
0.0
11.0
0.0
5.4
0.4
0.0
0.0
11.0
0.0
1.8
0.1
0.0
0.0
8.8
20.3
1.5
0.1
0.0
2.1
0.9
0.0
0.0
22.1
0.8
0.5
0.2
0.0
23.3
0.8
0.5
0.2
0.0
23.3
0.8
0.5
0.2
0.0
0.9
0.0
0.0
0.0
0.0
0.9
0.0
0.0
0.0
0.0
11.4
4.0
0.2
1.0
0.0
11.4
4.0
0.2
1.0
0.0
0.0
0.0
0.0
0.4
0.0
0.0
0.0
0.4
0.0
0.0
4.7
5.0
100.0
0.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.9
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.9
0.0
0.0
0.0
0.0
0.0
1.9
0.1
0.0
0.0
44.2
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31.12.23
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
% (compared to total covered assets in the
denominator)
1
of which
use of
proceeds
of which
transitional
of which
enabling
of which
use of
proceeds
of which
enabling
Of which
Use of
Proceeds
Of which
enabling
GAR - Covered assets in both numerator and
denominator
Loans and advances, debt securities and equity
instruments not held-for-trading eligible for GAR
calculation
2.9
0.0
0.0
Financial undertakings
0.0
Credit institutions
Loans and advances
Debt securities
Equity instruments
Other financial corporations
0.0
of which investment firms
Loans and advances
Debt securities
Equity instruments
of which management companies
Loans and advances
Debt securities
Equity instruments
of which insurance undertakings
27.9
Loans and advances
27.9
Debt securities
Equity instruments
Non-financial undertakings
1.3
1.0
Loans and advances
1.3
1.0
Debt securities
Equity instruments
Households
6.6
of which loans collateralized by residential
immovable property
100.0
of which building renovation loans
of which motor vehicle loans
Local governments financing
Housing financing
Other local government financing
Collateral obtained by taking possession:
residential and commercial immovable properties
Total GAR assets
3
0.9
0.0
0.0
1 Proportions calculated as
a percentage of Total
Gross Carrying Amount of
each individual line as
reported in the
table
Assets for the calculation
of the GAR (Turnover)
.
2 Proportions calculated as
a percentage of Total
Gross
Carrying Amount of each individual line as reported
in table
Assets for the calculation of the GAR
(Turnover)
relative to Total Assets as
reported in the same table.
3 Taxonomy-eligibility revised from 1.5%
as reported in 2023 EU
Taxonomy disclosures to 2.5% due to
reclassification of derivatives classified as held for trading under IFRS Accounting Standards
from Derivatives line (as presented in EU Taxonomy
2023 disclosures) to Trading book line consistent
with clarifications contained in the third Commission notice issued in November 2024.
Annual Report 2024 |
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Taxonomy Regulation | UBS Europe SE consolidated
144
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion
of total
assets
covered
2
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-aligned)
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
of which
use of
proceeds
of which
transitional
of which
enabling
7.9
0.0
0.0
12.4
8.8
0.0
7.0
8.9
6.9
5.8
5.7
24.3
1.2
1.0
0.0
1.0
0.0
0.1
1.0
0.1
1.0
0.1
59.7
0.0
59.7
0.0
27.9
0.0
27.9
0.0
7.5
1.3
1.0
0.0
7.5
1.3
1.0
0.0
6.6
5.4
100.0
0.4
0.0
2.5
0.0
0.0
38.5
Annual Report 2024 |
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145
GAR KPI stock (CapEx)
31.12.24
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
% (compared to total covered assets in the
denominator)
1
of which
use of
proceeds
of which
transitional
of which
enabling
of which
use of
proceeds
of which
enabling
Of which
Use of
Proceeds
Of which
enabling
GAR - Covered assets in both numerator and
denominator
Loans and advances, debt securities and equity
instruments not held-for-trading eligible for GAR
calculation
4.0
0.3
0.0
0.0
0.1
0.0
0.0
Financial undertakings
4.5
0.4
0.0
0.0
0.1
0.0
0.0
Credit institutions
4.4
0.4
0.0
0.0
0.1
0.0
0.0
Loans and advances
1.5
0.1
0.0
0.0
0.0
0.0
0.0
Debt securities
16.7
1.6
0.1
0.1
0.7
0.0
Equity instruments
0.6
0.0
Other financial corporations
23.2
1.6
0.8
0.4
0.1
0.0
of which investment firms
24.4
1.6
0.8
0.4
0.1
0.0
Loans and advances
24.4
1.6
0.8
0.4
0.1
0.0
Debt securities
Equity instruments
of which management companies
0.6
0.0
0.0
0.0
Loans and advances
0.6
0.0
0.0
0.0
Debt securities
Equity instruments
of which insurance undertakings
11.2
2.7
0.1
0.7
0.0
0.0
Loans and advances
11.2
2.7
0.1
0.7
0.0
0.0
Debt securities
Equity instruments
Non-financial undertakings
0.1
0.0
0.0
0.0
0.0
0.0
Loans and advances
0.1
0.0
0.0
0.0
0.0
0.0
Debt securities
0.1
0.0
0.0
Equity instruments
0.1
0.0
0.0
Households
4.7
of which loans collateralized by residential
immovable property
100.0
of which building renovation loans
of which motor vehicle loans
Local governments financing
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Housing financing
Other local government financing
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Collateral obtained by taking possession:
residential and commercial immovable properties
Total GAR assets
1.7
0.1
0.0
0.0
0.0
0.0
0.0
0.0
1 Proportions calculated as a percentage of
Total Gross Carrying Amount of
each individual line as reported in
table Assets for the calculation of the
GAR (CapEx).
2 Proportions calculated as a percentage of
Total Gross Carrying
Amount of each individual line as reported in table Assets for the calculation of the GAR (CapEx) relative to Total Assets as reported in the same table.
Annual Report 2024 |
Sustainability Statement | Information pursuant to Art. 8 of the EU
Taxonomy Regulation | UBS Europe SE consolidated
146
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion
of total
assets
covered
2
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-aligned)
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
of which
use of
proceeds
of which
transitional
of which
enabling
0.0
0.0
0.0
4.4
0.3
0.0
0.0
18.3
0.0
5.2
0.4
0.0
0.0
11.0
0.0
5.2
0.4
0.0
0.0
11.0
0.0
1.6
0.1
0.0
0.0
8.8
20.2
1.6
0.1
0.1
2.1
0.7
0.0
0.0
23.3
1.6
0.8
0.4
0.0
24.5
1.7
0.8
0.4
0.0
24.5
1.7
0.8
0.4
0.0
0.7
0.0
0.0
0.0
0.0
0.7
0.0
0.0
0.0
0.0
11.3
2.7
0.1
0.7
0.0
11.3
2.7
0.1
0.7
0.0
0.1
0.0
0.0
0.0
0.4
0.1
0.0
0.0
0.0
0.4
0.1
0.0
0.0
0.0
0.1
0.0
0.0
0.0
4.7
5.0
100.0
0.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.9
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.9
0.0
0.0
0.0
0.0
1.8
0.1
0.0
0.0
44.2
Annual Report 2024 |
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147
31.12.23
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
% (compared to total covered assets in the
denominator)
1
of which
use of
proceeds
of which
transitional
of which
enabling
of which
use of
proceeds
of which
enabling
Of which
Use of
Proceeds
Of which
enabling
GAR - Covered assets in both numerator and
denominator
Loans and advances, debt securities and equity
instruments not held-for-trading eligible for GAR
calculation
2.9
0.0
0.0
0.0
Financial undertakings
Credit institutions
Loans and advances
Debt securities
Equity instruments
Other financial corporations
of which investment firms
Loans and advances
Debt securities
Equity instruments
of which management companies
Loans and advances
Debt securities
Equity instruments
of which insurance undertakings
Loans and advances
Debt securities
Equity instruments
Non-financial undertakings
14.5
0.3
2.4
Loans and advances
14.5
0.3
2.4
Debt securities
Equity instruments
Households
6.6
of which loans collateralized by residential
immovable property
100.0
of which building renovation loans
of which motor vehicle loans
Local governments financing
Housing financing
Other local government financing
Collateral obtained by taking possession:
residential and commercial immovable properties
Total GAR assets
3
0.9
0.0
0.0
0.0
1
Proportions calculated as a percentage of Total Gross Carrying Amount of
each individual line as reported in the
table
Assets for the calculation of the GAR (CapEx)
.
2 Proportions calculated as a percentage of Total Gross Carrying
Amount of each individual line as
reported in table
Assets for the calculation of the
GAR (CapEx)
relative to Total Assets
as reported in the same table.
3 Taxonomy-eligibility revised from
1.0% as reported in 2023 EU
Taxonomy
disclosures to
1.8% due to
reclassification of derivatives
classified as held
for trading under
IFRS Accounting
Standards from Derivatives
line (as presented
in EU
Taxonomy 2023
disclosures) to
Trading book
line consistent
with
clarifications contained in the third Commission notice issued in November 2024.
Annual Report 2024 |
Sustainability Statement | Information pursuant to Art. 8 of the EU
Taxonomy Regulation | UBS Europe SE consolidated
148
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion
of total
assets
covered
2
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-aligned)
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
of which
use of
proceeds
of which
transitional
of which
enabling
5.5
0.0
0.0
0.0
12.4
4.6
7.0
4.6
6.9
4.2
5.7
7.0
1.2
0.0
0.1
0.1
0.1
0.0
0.0
0.0
0.0
17.4
14.5
0.3
2.4
0.0
17.4
14.5
0.3
2.4
0.0
6.6
5.4
100.0
0.4
0.0
1.8
0.0
0.0
0.0
38.5
Annual Report 2024 |
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149
GAR KPI flow
GAR KPI flow (Turnover)
% (compared to flow of total eligible assets)
31.12.24
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
of which environmentally sustainable
(Taxonomy-aligned)
of which
use of
proceeds
of which
transitional
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity instruments
not held-for-trading eligible for GAR calculation
4.3
0.3
0.0
0.0
0.1
0.0
0.0
0.0
Financial undertakings
5.8
0.4
0.0
0.0
0.2
0.0
0.0
Credit institutions
5.6
0.4
0.0
0.0
0.2
0.0
Loans and advances
3.5
0.2
0.0
0.0
0.0
0.0
Debt securities
17.3
1.6
0.1
0.0
1.0
Equity instruments
Other financial corporations
20.7
0.7
0.4
0.2
0.0
0.0
0.0
of which investment firms
23.2
0.8
0.5
0.2
0.0
0.0
Loans and advances
23.2
0.8
0.5
0.2
0.0
0.0
Debt securities
Equity instruments
of which management companies
0.9
0.0
0.0
0.0
Loans and advances
1.3
0.0
0.0
0.0
Debt securities
Equity instruments
0.9
of which insurance undertakings
11.3
4.0
0.2
1.0
0.0
0.0
0.0
Loans and advances
11.3
4.0
0.2
1.0
0.0
0.0
0.0
Debt securities
Equity instruments
Non-financial undertakings
0.4
0.0
0.0
0.0
0.0
Loans and advances
0.4
0.0
0.0
0.0
0.0
Debt securities
0.9
Equity instruments
0.9
Households
0.8
of which loans collateralized by residential
immovable property
100.0
of which building renovation loans
of which motor vehicle loans
Local governments financing
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Housing financing
Other local government financing
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Collateral obtained by taking possession: residential
and commercial immovable properties
Total GAR assets
1
4.3
0.3
0.0
0.0
0.1
0.0
0.0
0.0
1 Proportion calculated as a percentage of the total flow in relation to exposures to counterparties and issuers reporting under the EU Taxonomy.
2 Proportion calculated as a percentage of the flow of total assets for each individual
line, relative to the overall flow of total GAR assets.
Annual Report 2024 |
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150
31.12.24
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion
of total
new assets
covered
2
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
of which environmentally sustainable
(Taxonomy-aligned)
of which environmentally sustainable
(Taxonomy-aligned)
of which environmentally sustainable
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
transitional
of which
enabling
0.0
0.0
0.0
0.0
4.8
0.3
0.0
0.0
100.0
0.0
6.5
0.4
0.0
0.0
71.6
0.0
6.4
0.4
0.0
0.0
70.8
0.0
3.8
0.2
0.0
0.0
59.8
20.3
1.6
0.1
0.0
11.0
0.0
20.9
0.7
0.4
0.2
0.9
23.3
0.8
0.5
0.2
0.8
23.3
0.8
0.5
0.2
0.8
2.5
0.0
0.0
0.0
0.1
2.3
0.0
0.0
0.0
0.0
2.5
0.1
11.4
4.0
0.2
1.0
0.0
11.4
4.0
0.2
1.0
0.0
0.0
0.5
0.0
0.0
1.7
0.0
0.4
0.0
0.0
1.6
2.5
0.0
2.5
0.0
0.8
13.9
100.0
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
12.8
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
12.8
0.0
0.0
0.0
0.0
4.8
0.3
0.0
0.0
100.0
Annual Report 2024 |
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151
GAR KPI flow (CapEx)
% (compared to flow of total eligible assets)
31.12.24
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
of which environmentally sustainable
(Taxonomy-aligned)
of which
use of
proceeds
of which
transitional
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity instruments
not held-for-trading eligible for GAR calculation
4.2
0.4
0.0
0.0
0.1
0.0
0.0
0.0
Financial undertakings
5.7
0.5
0.1
0.0
0.2
0.0
0.0
0.0
Credit institutions
5.5
0.5
0.0
0.0
0.2
0.0
0.0
0.0
Loans and advances
3.4
0.3
0.0
0.0
0.0
0.0
0.0
0.0
Debt securities
17.1
1.7
0.1
0.1
1.0
0.0
Equity instruments
Other financial corporations
21.8
1.5
0.8
0.3
0.1
0.0
of which investment firms
24.4
1.6
0.8
0.4
0.1
0.0
Loans and advances
24.4
1.6
0.8
0.4
0.1
0.0
Debt securities
Equity instruments
of which management companies
0.9
0.0
0.0
0.0
Loans and advances
1.6
0.1
0.0
0.0
Debt securities
Equity instruments
0.9
of which insurance undertakings
11.2
2.7
0.1
0.7
0.0
0.0
Loans and advances
11.2
2.7
0.1
0.7
0.0
0.0
Debt securities
Equity instruments
Non-financial undertakings
0.6
0.1
0.0
0.0
0.0
0.0
0.0
Loans and advances
0.6
0.1
0.0
0.0
0.0
0.0
0.0
Debt securities
0.9
0.0
0.0
Equity instruments
0.9
0.0
0.0
Households
0.8
of which loans collateralized by residential
immovable property
100.0
of which building renovation loans
of which motor vehicle loans
Local governments financing
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Housing financing
Other local government financing
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Collateral obtained by taking possession: residential
and commercial immovable properties
Total GAR assets
1
4.2
0.4
0.0
0.0
0.1
0.0
0.0
0.0
1 Proportion calculated as a percentage of the total flow in relation to exposures to counterparties and issuers reporting under the EU Taxonomy.
2 Proportion calculated as a percentage of the flow of total assets for each individual
line, relative to the overall flow of total GAR assets.
Annual Report 2024 |
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152
31.12.24
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion
of total
new assets
covered
2
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
of which environmentally sustainable
(Taxonomy-aligned)
of which environmentally sustainable
(Taxonomy-aligned)
of which environmentally sustainable
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
transitional
of which
enabling
0.0
0.0
0.0
4.7
0.4
0.0
0.0
100.0
0.0
6.4
0.5
0.1
0.1
71.6
0.0
6.2
0.5
0.1
0.1
70.8
0.0
3.6
0.3
0.0
0.1
59.8
20.2
1.7
0.1
0.1
11.0
1.6
0.0
22.0
1.5
0.8
0.3
0.9
24.5
1.7
0.8
0.4
0.8
24.5
1.7
0.8
0.4
0.8
1.8
0.0
0.0
0.0
0.1
2.1
0.1
0.0
0.0
0.0
1.8
0.1
11.3
2.7
0.1
0.7
0.0
11.3
2.7
0.1
0.7
0.0
0.0
0.6
0.1
0.0
0.0
1.7
0.0
0.6
0.1
0.0
0.0
1.6
1.7
0.0
0.0
0.0
1.8
0.0
0.0
0.0
0.8
13.9
100.0
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
12.8
0.0
0.0
0.0
0.0
0.0
0.0
0.0
12.8
0.0
0.0
0.0
4.7
0.4
0.0
0.0
100.0
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153
KPI off-balance sheet exposures and flow
KPI off-balance sheet exposures (Turnover)
% (compared to total eligible off-balance sheet
assets)
31.12.24
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
of which
use of
proceeds
of which
transitional
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
Financial guarantees (FinGuar KPI)
Assets under management (AuM KPI)
9.3
2.7
0.3
1.6
1.1
0.1
0.0
0.0
0.0
0.0
KPI off-balance sheet exposures (CapEx)
% (compared to total eligible off-balance sheet
assets)
31.12.24
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
of which
use of
proceeds
of which
transitional
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
Financial guarantees (FinGuar KPI)
Assets under management (AuM KPI)
12.9
6.2
0.5
3.6
1.0
0.2
0.1
0.0
0.0
0.0
GAR KPI flow – Off-balance sheet exposures (Turnover)
% (compared to flow of total eligible off-balance
sheet assets)
31.12.24
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
of which environmentally sustainable
(Taxonomy-aligned)
of which
use of
proceeds
of which
transitional
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
Financial guarantees (FinGuar KPI)
Assets under management (AuM KPI)
18.2
4.7
0.5
2.8
1.4
0.1
0.0
0.0
0.0
0.0
GAR KPI flow – Off-balance sheet exposures (CapEx)
% (compared to flow of total eligible off-balance
sheet assets)
31.12.24
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
of which environmentally sustainable
(Taxonomy-aligned)
of which
use of
proceeds
of which
transitional
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
Financial guarantees (FinGuar KPI)
Assets under management (AuM KPI)
22.7
8.4
0.8
4.5
1.2
0.2
0.1
0.1
0.0
0.0
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31.12.24
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
transitional
of which
enabling
0.6
0.0
0.0
1.3
0.0
0.0
0.0
34.5
4.1
0.2
1.6
31.12.24
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
transitional
of which
enabling
0.6
0.0
0.0
1.3
0.0
0.0
0.0
35.4
8.2
0.5
3.7
31.12.24
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
of which environmentally sustainable
(Taxonomy-aligned)
of which environmentally sustainable
(Taxonomy-aligned)
of which environmentally sustainable
(Taxonomy-aligned)
Proportion of total covered assets funding taxonomy
relevant sectors
(Taxonomy-aligned)
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
transitional
of which
enabling
0.7
0.0
1.3
0.0
0.0
0.2
32.7
6.3
0.5
2.8
31.12.24
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
of which environmentally sustainable
(Taxonomy-aligned)
of which environmentally sustainable
(Taxonomy-aligned)
of which environmentally sustainable
(Taxonomy-aligned)
Proportion of total covered assets funding taxonomy
relevant sectors
(Taxonomy-aligned)
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
enabling
of which
use of
proceeds
of which
transitional
of which
enabling
0.9
0.0
0.0
1.8
0.0
0.0
0.0
0.0
42.6
10.8
0.8
4.7
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155
Nuclear and fossil gas related activities
Nuclear and fossil gas related activities – GAR Assets
Row
Nuclear energy related activities
31.12.24
1
The undertaking carries out, funds or has exposures to research, development,
demonstration and deployment of innovative electricity generation
facilities that produce energy from nuclear processes
with minimal waste from the fuel cycle.
Yes
2
The undertaking carries out, funds or has exposures to construction and safe
operation of new nuclear installations to produce electricity or process
heat, including for the purposes of district heating or industrial
processes such as hydrogen production, as well
as their safety upgrades, using best
available technologies.
Yes
3
The undertaking carries out, funds or has exposures to safe operation of existing
nuclear installations that produce electricity or process
heat,
including for the purposes of district heating or industrial processes
such as hydrogen production from nuclear energy, as well as their
safety
upgrades.
Yes
Row
Fossil gas related activities
4
The undertaking carries out, funds or has exposures to construction or operation
of electricity generation facilities that produce electricity
using
fossil gaseous fuels.
Yes
5
The undertaking carries out, funds or has exposures to construction, refurbishment,
and operation of combined heat/cool and power generation
facilities using fossil gaseous fuels.
Yes
6
The undertaking carries out, funds or has exposures to construction, refurbishment
and operation of heat generation facilities that produce
heat/cool using fossil gaseous fuels.
Yes
Taxonomy-aligned economic activities (denominator)
– GAR Assets (Turnover)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
2
0.0
2
0.0
0
0.0
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
0
0.0
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1
to 6 above in the denominator of the applicable KPI
22
0.1
22
0.1
0
8
Total of the applicable KPI
24
0.1
24
0.1
0
Taxonomy-aligned economic activities (denominator)
– GAR Assets (CapEx)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
2
0.0
2
0.0
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
1
0.0
1
0.0
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1
to 6 above in the denominator of the applicable KPI
25
0.1
24
0.1
0
8
Total of the applicable KPI
27
0.1
27
0.1
0
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156
Taxonomy-aligned economic activities (numerator)
– GAR Assets (Turnover)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.3
0
0.3
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
2
8.6
2
8.6
0
0.0
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
0
0.0
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1
to 6 above in the numerator of the applicable KPI
22
91.1
22
91.1
0
0.0
8
Total amount and proportion of taxonomy-aligned economic activities
in the numerator of the
applicable KPI
24
100.0
24
100.0
0
0.0
Taxonomy-aligned economic activities (numerator)
– GAR Assets (CapEx)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
2
6.4
2
6.4
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
1
1.9
1
1.9
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1
to 6 above in the numerator of the applicable KPI
25
91.6
24
91.3
0
0.3
8
Total amount and proportion of taxonomy-aligned economic activities
in the numerator of the
applicable KPI
27
100.0
27
99.7
0
0.3
Taxonomy-eligible but not taxonomy-aligned economic
activities – GAR Assets (Turnover)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
2
0.0
2
0.0
2
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
35
0.1
35
0.1
3
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
6
0.0
6
0.0
4
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
2
0.0
2
0.0
5
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
1
0.0
1
0.0
0
0.0
6
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
2
0.0
2
0.0
7
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities
not referred to in rows 1 to 6 above in the denominator of the applicable KPI
359
1.4
351
1.4
9
0.0
8
Total amount and proportion of taxonomy-eligible but not Taxonomy
-aligned economic activities
in the denominator of the applicable KPI
407
1.6
398
1.6
9
0.0
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Taxonomy-eligible but not taxonomy-aligned economic
activities – GAR Assets (CapEx)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
0
0.0
0
0.0
2
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
0
0.0
0
0.0
3
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
0
0.0
0
0.0
4
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
15
0.1
15
0.1
0
0.0
5
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
29
0.1
29
0.1
6
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
3
0.0
3
0.0
7
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities
not referred to in rows 1 to 6 above in the denominator of the applicable KPI
355
1.4
346
1.4
9
0.0
8
Total amount and proportion of taxonomy-eligible but not Taxonomy
-aligned economic activities
in the denominator of the applicable KPI
402
1.6
393
1.5
9
0.0
Taxonomy non-eligible economic activities – GAR Assets
(Turnover)
Line
Economic activities
USD m
%
1
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.26 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
2
Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.27 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
3
Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
4
Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.29 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
5
Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.30 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
6
Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.31 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
7
Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable
KPI
24,928
98.1
8
Total amount and proportion of taxonomy-non-eligible economic activities
in the denominator of the applicable KPI
24,928
98.1
Taxonomy non-eligible economic activities – GAR Assets
(CapEx)
Line
Economic activities
USD m
%
1
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.26 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
2
Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.27 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
3
Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
4
Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.29 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
5
Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.30 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
6
Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.31 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
7
Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable
KPI
24,940
98.2
8
Total amount and proportion of taxonomy-non-eligible economic activities
in the denominator of the applicable KPI
24,940
98.2
Annual Report 2024 |
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Taxonomy Regulation | UBS Europe SE consolidated
158
Nuclear and fossil gas related activities – Financial Guarantees
Row
Nuclear energy related activities
31.12.24
1
The undertaking carries out, funds or has exposures to research, development,
demonstration and deployment of innovative electricity generation
facilities that produce energy from nuclear processes
with minimal waste from the fuel cycle.
No
2
The undertaking carries out, funds or has exposures to construction and safe
operation of new nuclear installations to produce electricity or process
heat, including for the purposes of district heating or industrial
processes such as hydrogen production, as well
as their safety upgrades, using best
available technologies.
No
3
The undertaking carries out, funds or has exposures to safe operation of existing
nuclear installations that produce electricity or process
heat,
including for the purposes of district heating or industrial processes
such as hydrogen production from nuclear energy, as well as their
safety
upgrades.
No
Row
Fossil gas related activities
4
The undertaking carries out, funds or has exposures to construction or operation
of electricity generation facilities that produce electricity
using
fossil gaseous fuels.
No
5
The undertaking carries out, funds or has exposures to construction, refurbishment,
and operation of combined heat/cool and power generation
facilities using fossil gaseous fuels.
No
6
The undertaking carries out, funds or has exposures to construction, refurbishment
and operation of heat generation facilities that produce
heat/cool using fossil gaseous fuels.
No
Annual Report 2024 |
Sustainability Statement | Information pursuant to Art. 8 of the EU
Taxonomy Regulation | UBS Europe SE consolidated
159
Nuclear and fossil gas related activities – AuM
Row
Nuclear energy related activities
31.12.24
1
The undertaking carries out, funds or has exposures to research, development,
demonstration and deployment of innovative electricity generation
facilities that produce energy from nuclear processes
with minimal waste from the fuel cycle.
Yes
2
The undertaking carries out, funds or has exposures to construction and safe
operation of new nuclear installations to produce electricity or process
heat, including for the purposes of district heating or industrial
processes such as hydrogen production, as well
as their safety upgrades, using best
available technologies.
Yes
3
The undertaking carries out, funds or has exposures to safe operation of existing
nuclear installations that produce electricity or process
heat,
including for the purposes of district heating or industrial processes
such as hydrogen production from nuclear energy, as well as their
safety
upgrades.
Yes
Row
Fossil gas related activities
4
The undertaking carries out, funds or has exposures to construction or operation
of electricity generation facilities that produce electricity
using
fossil gaseous fuels.
Yes
5
The undertaking carries out, funds or has exposures to construction, refurbishment,
and operation of combined heat/cool and power generation
facilities using fossil gaseous fuels.
Yes
6
The undertaking carries out, funds or has exposures to construction, refurbishment
and operation of heat generation facilities that produce
heat/cool using fossil gaseous fuels.
Yes
Taxonomy-aligned economic activities (denominator)
– AuM (Turnover)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
2
0.0
2
0.0
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
28
0.0
28
0.0
0
0.0
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
1
0.0
1
0.0
0
0.0
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1
to 6 above in the denominator of the applicable KPI
1,724
2.8
1,665
2.7
59
0.1
8
Total of the applicable KPI
1,755
2.8
1,696
2.7
59
0.1
Taxonomy-aligned economic activities (denominator)
– AuM (CapEx)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
10
0.0
10
0.0
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
24
0.0
24
0.0
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
4
0.0
4
0.0
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
2
0.0
2
0.0
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
1
0.0
1
0.0
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1
to 6 above in the denominator of the applicable KPI
3,933
6.3
3,808
6.1
126
0.2
8
Total of the applicable KPI
3,975
6.4
3,850
6.2
126
0.2
Annual Report 2024 |
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160
Taxonomy-aligned economic activities (numerator)
– AuM (Turnover)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
0
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
2
0.1
2
0.1
0
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
28
1.6
28
1.6
0
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
0
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
1
0.1
1
0.1
0
0.0
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
0
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1
to 6 above in the numerator of the applicable KPI
1,724
98.3
1,665
94.9
59
3.4
8
Total amount and proportion of taxonomy-aligned economic activities
in the numerator of the
applicable KPI
1,755
100.0
1,696
96.6
59
3.4
Taxonomy-aligned economic activities (numerator)
– AuM (CapEx)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
10
0.3
10
0.3
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
24
0.6
24
0.6
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
4
0.1
4
0.1
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
2
0.1
2
0.1
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
1
0.0
1
0.0
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1
to 6 above in the numerator of the applicable KPI
3,933
98.9
3,808
95.8
126
3.2
8
Total amount and proportion of taxonomy-aligned economic activities
in the numerator of the
applicable KPI
3,975
100.0
3,850
96.8
126
3.2
Taxonomy-eligible but not taxonomy-aligned economic
activities – AuM (Turnover)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
2
0.0
2
0.0
0
2
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
23
0.0
23
0.0
0
3
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
6
0.0
6
0.0
0
4
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
46
0.1
46
0.1
0
5
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
49
0.1
49
0.1
0
6
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
1
0.0
1
0.0
0
7
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities
not referred to in rows 1 to 6 above in the denominator of the applicable KPI
4,569
7.4
3,955
6.4
614
1.0
8
Total amount and proportion of taxonomy-eligible but not Taxonomy
-aligned economic activities
in the denominator of the applicable KPI
4,696
7.6
4,083
6.6
614
1.0
Annual Report 2024 |
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161
Taxonomy-eligible but not taxonomy-aligned economic
activities – AuM (CapEx)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
0
0.0
0
0.0
2
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
0
0.0
0
0.0
3
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
0
0.0
0
0.0
4
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
11
0.0
11
0.0
0
0.0
5
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
44
0.1
44
0.1
6
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
3
0.0
3
0.0
7
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities
not referred to in rows 1 to 6 above in the denominator of the applicable KPI
4,597
7.4
4,096
6.6
501
0.8
8
Total amount and proportion of taxonomy-eligible but not Taxonomy
-aligned economic activities
in the denominator of the applicable KPI
4,656
7.5
4,155
6.7
501
0.8
Taxonomy non-eligible economic activities – AuM (Turnover)
Line
Economic activities
USD m
%
1
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.26 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
2
0.0
2
Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.27 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
3
0.0
3
Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
12
0.0
4
Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.29 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
9
0.0
5
Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.30 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
1
0.0
6
Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.31 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
2
0.0
7
Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI
40,570
65.5
8
Total amount and proportion of taxonomy-non-eligible economic activities
in the denominator of the applicable KPI
40,598
65.5
Taxonomy non-eligible economic activities – AuM (CapEx)
Line
Economic activities
USD m
%
1
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.26 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
2
Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.27 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
12
0.0
3
Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
3
0.0
4
Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.29 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
1
0.0
5
Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.30 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
8
0.0
6
Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.31 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
7
Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI
39,981
64.5
8
Total amount and proportion of taxonomy-non-eligible economic activities
in the denominator of the applicable KPI
40,004
64.6
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162
Nuclear and fossil gas related activities – Flow GAR
Assets
Row
Nuclear energy related activities
31.12.24
1
The undertaking carries out, funds or has exposures to research, development,
demonstration and deployment of innovative electricity generation
facilities that produce energy from nuclear processes
with minimal waste from the fuel cycle.
Yes
2
The undertaking carries out, funds or has exposures to construction and safe
operation of new nuclear installations to produce electricity or process
heat, including for the purposes of district heating or industrial
processes such as hydrogen production, as well
as their safety upgrades, using best
available technologies.
Yes
3
The undertaking carries out, funds or has exposures to safe operation of existing
nuclear installations that produce electricity or process
heat,
including for the purposes of district heating or industrial processes
such as hydrogen production from nuclear energy, as well as their
safety
upgrades.
Yes
Row
Fossil gas related activities
4
The undertaking carries out, funds or has exposures to construction or operation
of electricity generation facilities that produce electricity
using
fossil gaseous fuels.
Yes
5
The undertaking carries out, funds or has exposures to construction, refurbishment,
and operation of combined heat/cool and power generation
facilities using fossil gaseous fuels.
Yes
6
The undertaking carries out, funds or has exposures to construction, refurbishment
and operation of heat generation facilities that produce
heat/cool using fossil gaseous fuels.
Yes
Taxonomy-aligned economic activities (denominator)
- Flow GAR Assets (Turnover)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
3
0.0
3
0.0
0
0.0
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
0
0.0
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1
to 6 above in the denominator of the applicable KPI
47
0.3
47
0.3
0
0.0
8
Total of the applicable KPI
50
0.3
50
0.3
0
0.0
Taxonomy-aligned economic activities (denominator)
- Flow GAR Assets (CapEx)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
2
0.0
2
0.0
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
1
0.0
1
0.0
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1
to 6 above in the denominator of the applicable KPI
53
0.3
52
0.3
0
0.0
8
Total of the applicable KPI
56
0.4
56
0.4
0
0.0
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163
Taxonomy-aligned economic activities (numerator)
- GAR Assets (Turnover)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.2
0
0.2
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
3
6.2
3
6.2
0
0.0
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
0
0.0
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1
to 6 above in the numerator of the applicable KPI
47
93.6
47
93.1
0
0.6
8
Total amount and proportion of taxonomy-aligned economic activities
in the numerator of the
applicable KPI
50
100.0
50
99.4
0
0.6
Taxonomy-aligned economic activities (numerator)
- GAR Assets (CapEx)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
2
4.4
2
4.4
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
1
1.4
1
1.4
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1
to 6 above in the numerator of the applicable KPI
53
94.2
52
93.6
0
0.7
8
Total amount and proportion of taxonomy-aligned economic activities
in the numerator of the
applicable KPI
56
100.0
56
99.3
0
0.7
Taxonomy-eligible but not taxonomy-aligned economic
activities - Flow GAR Assets (Turnover)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
3
0.0
3
0.0
2
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
48
0.3
48
0.3
3
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
8
0.1
8
0.1
4
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
4
0.0
4
0.0
5
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
5
0.0
5
0.0
6
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
3
0.0
3
0.0
7
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities
not referred to in rows 1 to 6 above in the denominator of the applicable KPI
563
3.6
545
3.5
19
0.1
8
Total amount and proportion of taxonomy-eligible but not Taxonomy
-aligned economic activities
in the denominator of the applicable KPI
633
4.1
615
3.9
19
0.1
Annual Report 2024 |
Sustainability Statement | Information pursuant to Art. 8 of the EU
Taxonomy Regulation | UBS Europe SE consolidated
164
Taxonomy-eligible but not taxonomy-aligned economic
activities - Flow GAR Assets (CapEx)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
2
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
0
0.0
0
0.0
3
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
0
0.0
0
0.0
4
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
21
0.1
21
0.1
0
0.0
5
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
41
0.3
41
0.3
6
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
4
0.0
4
0.0
7
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities
not referred to in rows 1 to 6 above in the denominator of the applicable KPI
557
3.6
539
3.4
19
0.1
8
Total amount and proportion of taxonomy-eligible but not Taxonomy
-aligned economic activities
in the denominator of the applicable KPI
624
4.0
605
3.9
19
0.1
Taxonomy non-eligible economic activities - Flow GAR
Assets (Turnover)
Line
Economic activities
USD m
%
1
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.26 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
2
Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.27 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
3
Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
4
Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.29 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
5
Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.30 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
6
Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.31 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
7
Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI
14,862
95.2
8
Total amount and proportion of taxonomy-non-eligible economic activities
in the denominator of the applicable KPI
14,862
95.2
Taxonomy non-eligible economic activities - Flow GAR
Assets (CapEx)
Line
Economic activities
USD m
%
1
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.26 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
2
Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.27 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
3
Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
4
Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.29 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
5
Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.30 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
6
Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.31 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
7
Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable
KPI
14,883
95.3
8
Total amount and proportion of taxonomy-non-eligible economic activities
in the denominator of the applicable KPI
14,883
95.3
Annual Report 2024 |
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Taxonomy Regulation | UBS Europe SE consolidated
165
Nuclear and fossil gas related activities – Flow financial
guarantees
Row
Nuclear energy related activities
31.12.24
1
The undertaking carries out, funds or has exposures to research, development,
demonstration and deployment of innovative electricity generation
facilities that produce energy from nuclear processes
with minimal waste from the fuel cycle.
No
2
The undertaking carries out, funds or has exposures to construction and safe
operation of new nuclear installations to produce electricity or process
heat, including for the purposes of district heating or industrial
processes such as hydrogen production, as well
as their safety upgrades, using best
available technologies.
No
3
The undertaking carries out, funds or has exposures to safe operation of existing
nuclear installations that produce electricity or process
heat,
including for the purposes of district heating or industrial processes
such as hydrogen production from nuclear energy, as well as their
safety
upgrades.
No
Row
Fossil gas related activities
4
The undertaking carries out, funds or has exposures to construction or operation
of electricity generation facilities that produce electricity
using
fossil gaseous fuels.
No
5
The undertaking carries out, funds or has exposures to construction, refurbishment,
and operation of combined heat/cool and power generation
facilities using fossil gaseous fuels.
No
6
The undertaking carries out, funds or has exposures to construction, refurbishment
and operation of heat generation facilities that produce
heat/cool using fossil gaseous fuels.
No
Annual Report 2024 |
Sustainability Statement | Information pursuant to Art. 8 of the EU
Taxonomy Regulation | UBS Europe SE consolidated
166
Nuclear and fossil gas related activities – Flow AuM
Row
Nuclear energy related activities
31.12.24
1
The undertaking carries out, funds or has exposures to research, development,
demonstration and deployment of innovative electricity generation
facilities that produce energy from nuclear processes
with minimal waste from the fuel cycle.
Yes
2
The undertaking carries out, funds or has exposures to construction and safe
operation of new nuclear installations to produce
electricity or process
heat, including for the purposes of district heating or industrial
processes such as hydrogen production, as well
as their safety upgrades, using best
available technologies.
Yes
3
The undertaking carries out, funds or has exposures to safe operation of existing
nuclear installations that produce electricity or process
heat,
including for the purposes of district heating or industrial processes
such as hydrogen production from nuclear energy, as well as their
safety
upgrades.
Yes
Row
Fossil gas related activities
4
The undertaking carries out, funds or has exposures to construction or operation
of electricity generation facilities that produce electricity
using
fossil gaseous fuels.
Yes
5
The undertaking carries out, funds or has exposures to construction, refurbishment,
and operation of combined heat/cool and power generation
facilities using fossil gaseous fuels.
Yes
6
The undertaking carries out, funds or has exposures to construction, refurbishment
and operation of heat generation facilities that produce
heat/cool using fossil gaseous fuels.
Yes
Taxonomy-aligned economic activities (denominator)
– Flow AuM (Turnover)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
1
0.0
1
0.0
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
3
0.1
3
0.1
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
0
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1
to 6 above in the denominator of the applicable KPI
125
4.6
123
4.6
2
0.1
8
Total of the applicable KPI
129
4.8
127
4.7
2
0.1
Taxonomy-aligned economic activities (denominator)
– Flow AuM (CapEx)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
2
0.1
2
0.1
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
3
0.1
3
0.1
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0
0.0
0
0.0
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1
to 6 above in the denominator of the applicable KPI
229
8.5
223
8.3
6
0.2
8
Total of the applicable KPI
234
8.7
228
8.4
6
0.2
Annual Report 2024 |
Sustainability Statement | Information pursuant to Art. 8 of the EU
Taxonomy Regulation | UBS Europe SE consolidated
167
Taxonomy-aligned economic activities (numerator)
– Flow AuM (Turnover)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
1
0.7
1
0.7
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
3
2.6
3
2.6
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
0
0.0
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1
to 6 above in the numerator of the applicable KPI
125
96.6
123
95.0
2
1.6
8
Total amount and proportion of taxonomy-aligned economic activities
in the numerator of the
applicable KPI
129
100.0
127
98.4
2
1.6
Taxonomy-aligned economic activities (numerator)
– Flow AuM (CapEx)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
2
0.8
2
0.8
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
3
1.3
3
1.3
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0
0.0
0
0.0
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1
to 6 above in the numerator of the applicable KPI
229
97.8
223
95.2
6
2.6
8
Total amount and proportion of taxonomy-aligned economic activities
in the numerator of the
applicable KPI
234
100.0
228
97.4
6
2.6
Taxonomy-eligible but not taxonomy-aligned economic
activities – Flow AuM (Turnover)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
0
0.0
0
0.0
2
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
0
0.0
0
0.0
3
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
0
0.0
0
0.0
4
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
3
0.1
3
0.1
5
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
1
0.0
1
0.0
0
0.0
6
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
0
0.0
0
0.0
7
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities
not referred to in rows 1 to 6 above in the denominator of the applicable KPI
394
14.6
359
13.3
35
1.3
8
Total amount and proportion of taxonomy-eligible but not Taxonomy
-aligned economic activities
in the denominator of the applicable KPI
398
14.8
363
13.4
35
1.3
Annual Report 2024 |
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168
Taxonomy-eligible but not taxonomy-aligned economic
activities – Flow AuM (CapEx)
Line
Economic activities
CCM + CCA
Climate change mitigation
Climate change adaptation
USD m
%
USD m
%
USD m
%
1
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
0
0.0
0
0.0
2
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
0
0.0
0
0.0
3
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
0
0.0
0
0.0
4
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
0
0.0
0
0.0
5
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
0
0.0
0
0.0
6
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
0
0.0
0
0.0
7
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities
not referred to in rows 1 to 6 above in the denominator of the applicable KPI
409
15.2
383
14.2
26
1.0
8
Total amount and proportion of taxonomy-eligible but not Taxonomy
-aligned economic activities
in the denominator of the applicable KPI
410
15.2
384
14.2
26
1.0
Taxonomy non-eligible economic activities – Flow AuM
(Turnover)
Line
Economic activities
USD m
%
1
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.26 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
2
Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.27 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
3
Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
1
0.0
4
Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.29 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
5
Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.30 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
6
Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.31 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
7
Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI
1,815
67.2
8
Total amount and proportion of taxonomy-non-eligible economic activities
in the denominator of the applicable KPI
1,817
67.3
Taxonomy non-eligible economic activities – Flow AuM
(CapEx)
Line
Economic activities
USD m
%
1
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.26 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
2
Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.27 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
1
0.1
3
Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
4
Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.29 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
5
Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.30 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
1
0.0
6
Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible
in accordance with Section 4.31 of Annexes I and II to
Delegated Regulation 2021/2139 of the applicable KPI
0
0.0
7
Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI
1,548
57.4
8
Total amount and proportion of taxonomy-non-eligible economic activities
in the denominator of the applicable KPI
1,550
57.4
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly authorized.
UBS AG
By: _/s/ David Kelly _____________
Name:
David Kelly
Title:
Managing Director
By: _/s/ Ella Copetti-Campi________
Name:
Ella Copetti-Campi
Title:
Executive Director
Date:
March 17, 2025