UBS details 2025 sustainability and climate progress
UBS AG filed its 2025 Sustainability Statement, outlining business model, governance and a detailed climate transition plan.
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Form Type
6-K
Rhea-AI Filing Summary
UBS AG filed its 2025 Sustainability Statement, outlining business model, governance and a detailed climate transition plan. The bank targets net-zero scope 1 and 2 emissions by 2035, having already cut these by 48% versus 2023 and reduced energy use by 18.8% while sourcing 99.7% renewable electricity.
UBS has set 2030 lending decarbonization goals across Swiss real estate, power, fossil fuels, iron and steel, and cement, reporting an 83% reduction in financed fossil-fuel emissions versus 2021. The group manages over USD 7 trillion of invested assets globally and surpassed USD 1 trillion in Asia Pacific invested assets in 2025.
The report describes group-wide sustainability governance, including Board oversight via the Corporate Culture and Responsibility Committee and a dedicated Group Sustainability and Impact organization. UBS also highlights social impact ambitions, philanthropy through the UBS Optimus network of foundations, and strong ESG ratings from MSCI and S&P Global.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What are UBS (AMUB) key climate targets in the 2025 Sustainability Statement?
UBS aims to reach net-zero scope 1 and 2 emissions by 2035, targeting a 90% reduction from 2023 levels and neutralizing the remainder. It also sets 2030 sectoral decarbonization targets for Swiss real estate, power, fossil fuels, iron and steel, and cement, aligned with Paris-consistent scenarios.
How much has UBS (AMUB) reduced its operational emissions and energy use?
UBS reports scope 1 and market-based scope 2 emissions of 24,151 metric tons CO2e for 2025, a 48% reduction versus its 2023 baseline. Absolute energy consumption fell 18.8% versus 2023 to 613 GWh, and 99.7% of electricity came from renewable sources aligned with the RE100 framework.
What progress has UBS (AMUB) made on financed emissions in high-impact sectors?
UBS discloses lending-based emissions cuts from 2021 levels, including an 83% reduction in fossil-fuel financed emissions and a 55% reduction in power generation emissions intensity. Swiss residential real estate intensity fell 15% and commercial real estate 10%, reflecting client engagement, portfolio management, and transition-focused financing efforts.
How large is UBS (AMUB) global wealth and asset base according to the report?
UBS reports more than USD 7 trillion of invested assets, diversified across the Americas, Asia Pacific, EMEA and Switzerland. In 2025, invested assets in Asia Pacific surpassed USD 1 trillion for the first time, underlining the region’s role as the group’s fastest-growing wealth market and a strategic growth focus.
What governance structures oversee sustainability at UBS (AMUB)?
Sustainability is overseen by the UBS Group Board’s Corporate Culture and Responsibility Committee, which approves group-wide sustainability and impact objectives annually. Execution is led by Group Sustainability and Impact under the Group Chief Operating Officer, supported by risk, compliance and climate-risk teams integrated into UBS’s three-lines-of-defense framework.
What social impact and philanthropy goals does UBS (AMUB) report for 2021–2025?
UBS set a goal to raise USD 1 billion in donations to its client philanthropy foundations and funds from 2021–2025 and surpassed it, reaching USD 1.6 billion cumulatively. Its UBS Optimus network of foundations reached 33.5 million beneficiaries cumulatively over 2021–2025 through social impact projects and partnerships.
How does UBS (AMUB) manage climate impacts in its supply chain?
UBS tracks supply-chain-related scope 3 emissions in selected categories, reporting vendor-related emissions of 0.84 million metric tons CO2e in 2025, up 3% year-on-year. It designates greenhouse-gas key vendors and notes that 88% of these disclosed emissions and stated net-zero targets, integrating expectations via supplier policies and monitoring.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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 9, 2026
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
☒
☐
This Form 6-K consists of UBS AG Sustainability Statement 2025 and related disclosures prepared pursuant to the
EU Taxonomy Regulation, which appears immediately following this page.
Annual Report 2025 |
Sustainability Statement 3
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
4
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
24
Strategy
24
Our sustainability and impact strategy
25
Our key aspirations and progress
27
Environmental information
27
Our climate transition plan
29
Supporting our clients’ low-carbon transition
42
Reducing our own climate impact
51
Managing the climate impact of our supply chain
52
Supporting our transition plan: key enablers
56
Social information
56
People and culture make the difference
60
Respecting human rights
61
Managing sustainability and climate risks
61
Sustainability and climate risk management framework
62
Risk identification and measurement
67
Monitoring and risk appetite setting
69
Risk management and control
70
Risk reporting and disclosure
70
Our investment management approach to sustainability
and climate risks
73
Resilience of UBS’s strategy and business model
75
Other supplemental information
75
Additional UBS Europe SE considerations for
sustainability and climate risk management
88
Climate-related risk methodologies and scenarios
91
Information on non-financial disclosures
92
Information on UBS AG standalone and UBS Europe SE
consolidated pursuant to Art. 8 of the EU Taxonomy
Regulation
96
UBS Europe SE consolidated
97
Assets for the calculation of the GAR
105
GAR sector information
106
GAR KPI stock
107
GAR KPI flow
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General information
Our business model
UBS – who we are
We are the world’s only truly global wealth manager and the leading bank in Switzerland. These key pillars of our strategy
are enhanced by our focused and competitive asset management and investment banking 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 at the heart of what we do. We have a capital-generative and well-diversified global
business model with strong competitive positions in our target markets and the regions in which we operate.
Our business model, including our regional diversification, with our deep-rooted, risk-aware culture, superior client service
and prudent capital management, is built on our respected brand and has made it possible to sustainably grow profits
and deliver attractive capital returns to shareholders over the long term.
We are focused on driving sustainable long-term growth while maintaining risk and cost discipline
Our objective is to generate value for our stakeholders 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 a foundation of our success and a significant
source of strength and resilience. This provides us with the capacity to invest strategically and enables 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 competitive strength, and are supported
by collaboration between our businesses. Our asset-gathering businesses generate close to 60% of our revenues
1
are characterized by being structurally attractive from a capital consumption perspective, representing around 39% of
our risk-weighted assets (RWA).
1
1
our home market and an attractive, stable and well-diversified economy, with low historic credit losses. Furthermore, we
operate a capital-efficient Investment Bank, which is limited to 25% of Group RWA.
1
Our aim is to create long-term sustainable value. We also have a responsibility to the communities in which we live and
operate, and to our employees. We have outlined selected environmental, social and governance (ESG) aspirations, which
are aligned with our financial targets and ambitions.
We have a global, diversified business model
Our invested assets of more than USD 7trn 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.
We are among the market leaders in the Americas, the world’s largest wealth pool and one of the fastest-growing wealth
markets. Around half of the invested assets our wealth management clients entrusted us with are booked in that region.
Following the acquisition of Credit Suisse, the Investment Bank has invested in growing its Global Banking and Global
Markets capabilities in the region, and is focused on cross-regional and cross-divisional collaboration to drive growth.
Asia Pacific is our fastest-growing region, and where we continue to lead as the largest wealth manager
2
consistent top-tier investment bank. We are further investing in and growing our businesses to deliver leading capabilities,
capitalizing on market momentum in the Hong Kong SAR and the mainland of China, leveraging strong cross-divisional
collaboration and global connectivity, and driving growth through a diversified footprint, with the Hong Kong SAR and
Singapore as the regional hubs, as well as strategic partnerships in markets such as Japan and India. In 2025, our total
invested assets in Asia Pacific surpassed the USD 1trn milestone for the first time.
In EMEA, we are one of the largest wealth managers, and we are focused on deepening our share of wallet with EMEA-
domiciled global clients, while further driving profitability in select key markets, including the Middle East.
Finally, in Switzerland we have a highly integrated business model 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 growth opportunities. In 2025, UBS was again named Best Bank in Switzerland by Euromoney, for the eleventh
time since 2012. Our role as a trusted partner to the Swiss economy remains central to our strategy. This is reflected in
our substantial contribution to the Swiss economy, including, among other aspects, a lending volume commitment of
CHF 350bn.
Annual Report 2025 |
Sustainability Statement | General information 12
We deliver integrated coverage for clients by collaborating as one UBS
We are committed to serving 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 full value of the firm to clients. For example, our asset-gathering
businesses work in synergy to offer clients a comprehensive product suite paired with exclusive, personalized services.
The Investment Bank complements these by delivering insights, execution capabilities and risk management expertise to
both wealth management clients with complex needs and Swiss corporate clients.
In today’s interconnected world, our wealth management clients are becoming increasingly global and mobile in both
their business and personal lives, demanding comprehensive, seamless, multi-jurisdictional financial solutions. With our
unmatched global footprint and best-in-class solutions, we are well positioned to connect our clients to the firm across
jurisdictions in a systematic and integrated manner.
We are investing in our technology to improve the client experience and enhance employee productivity
We continue to focus on investing in a resilient and secure technology infrastructure that is designed to help ensure the
stability of our services for our clients and employees worldwide. This includes investments to strengthen our core
platforms, modernize applications and enhance system reliability, in an increasingly complex environment.
Since our acquisition of the Credit Suisse Group in 2023, one of our key focus areas has been the integration of
technology and operations. We continue to rapidly advance in this space, with approximately 1,600 Credit Suisse business
applications decommissioned by the end of 2025 (55% of those in scope) and around 85% of Swiss-booked client
accounts transferred. In addition, our strong technology foundation has facilitated an overall seamless integration across
the Group, including the migration of businesses and client accounts to the UBS platforms.
›
Refer to the “Integration of Credit Suisse” section of this report for more information
We also continue to strengthen our technology position, with a focus on accelerating our Group artificial intelligence (AI)
strategy to achieve impactful outcomes more quickly and incrementally. In 2025, we appointed a Chief Artificial
Intelligence Officer to support UBS’s transformation into a fully AI-enabled institution. We are moving quickly to adopt
AI throughout the Group to reshape business capabilities and enhance employee productivity, and we are constantly
developing and exploring new opportunities, from more traditional automation to agentic AI solutions. Our AI strategy
is centered around nine large-scale transformational AI initiatives. These initiatives are designed to have a broad impact
across the Group, increasing efficiency and improving processes and systems. For example, we are implementing the next
generation of software development, which includes the widespread deployment of AI-augmented development tools,
enabling engineers to deliver faster, more innovative and scalable solutions and streamlining UBS’s software development
cycle.
To support our employees, we are upskilling and reskilling employees in AI and adjacent technologies through specific AI
training to ensure innovation is embedded responsibly and effectively. We also continue to invest in partnerships with
leading academic institutions worldwide and other key players, to develop ideas, drive positive outcomes across the
Group and foster pioneering AI research. For example, we have announced the launch of the Oxford-UBS Centre for
Applied Artificial Intelligence, focusing on three key research areas (society, economy and the future of AI). This enables
us to explore pioneering applications and practical solutions that can be implemented at scale across the Group.
These efforts are underpinned by an AI framework and policy that have been designed to safeguard the interests of
clients, employees and stakeholders. In parallel, we maintain a strong focus on operational resilience, cybersecurity and
data protection to support keeping our platforms secure, stable and available at all times.
›
Refer to the ”Risk management and control” section of this report for more information
In addition, we are actively building out foundational digital asset infrastructure to launch a range of new products
addressing evolving client needs. For example, we are investing in our solutions for the tokenization of real-world assets,
such as
UBS Tokenize
. We are also developing digital money offerings, such as our
UBS Digital Cash
solution, and we are evaluating stablecoins. Finally, we are also exploring access to cryptocurrencies.
Supporting sustainability
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.
1
Excluding Non-core and Legacy.
2
Asian Private Banker (April 2025) and UBS estimate.
Annual Report 2025 |
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.
Clients
Our clients’ preferred communication channels continually evolve, and we strive to engage with them in the most
convenient way. We use a variety of channels, in particular digital channels and regular client relationship and service
meetings, as well as various corporate road shows and dedicated events, with a mix of hybrid and in-person events.
Global Wealth Management engages with clients through a broad range of forums and channels, 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 to drive
a greater awareness of the firm among prospective clients and reinforced trust-based relationships between advisors and
clients. We have continued to deliver capabilities to clients, for example through digitally enabled e-banking and advisory
tools, while also bringing the best of UBS to our clients via units such as Unified Global Alternatives, Unified Global
Banking and Unified Global Markets. We have also continued to leverage artificial intelligence (AI) to positively impact
our business and serve our clients more efficiently. Examples include
STAAT Insights
, which assisted our US financial
advisors in their client interactions through the delivery of over 20 million insights in 2025, and our AI-powered chatbots,
available across regions. We believe AI will continue to enable more personalized advice and solutions more quickly,
ensuring a more efficient experience for our clients around the globe. It does not replace trust or human interaction,
which are the cornerstones of our business.
Personal & Corporate Banking engages with clients via various means of communication, including regular client events
(leveraging a number of formats, such as webcasts and in-person, virtual or hybrid events), as well as sustaining many
events formerly led by Credit Suisse. In 2025, 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 use various channels to bring our clients the ideas, understanding and clarity to support their
investment decisions. Our regular investor publications provide thematic perspectives and actionable insights,
supplemented by our global program of events, which includes our annual
The Red Thread
key international locations, as well as our flagship
UBS Reserve Management Seminar (RMS)
Sovereign
Investment Circle
best practices, while the annual RMS survey provides an authoritative insight into central bank, sovereign and investor
sentiment and trends. We also continued to host a broad range of hybrid and online events to help our clients better
understand market challenges and opportunities, as well as our ongoing engagement through our social media and
digital platforms.
The Investment Bank hosted more than 240 conferences globally in 2025, providing clients with access to corporations,
experts, research and capital introductions. The events covered a diverse range of topics, including macroeconomic,
geopolitical, technology and AI, 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
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.
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Sustainability Statement | General information 14
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 these as
best possible. The Annual General Meeting is also an open forum through which to hear our shareholders’ concerns or
inquiries, which may then feed into our approach on material topics.
Employees
Our employees want to have an impact and to help shape their daily experience. Therefore, they have opportunities
throughout the year to connect with leadership and share their views on strategic alignment, the work environment, line
manager effectiveness, culture and well-being. In 2025, initiatives such as our regular “Ask the GEB” and Group CEO
townhall events supported two-way conversations on topics including the firm’s strategy and direction. Our multi-faceted
employee listening strategy, including short pulse surveys, employee life cycle surveys and focus groups on topics such as
employee sentiment on AI, enabled us to gather insights from all business divisions. Our Group-wide employee survey,
conducted in September 2025, assessed organizational health indicators such as line manager effectiveness, employee
engagement, empowerment and culture.
Governments and regulators
Financial market stability and the transition toward a more sustainable world are largely dependent on the overall
economic, regulatory and political environment and the conduct of firms. We actively participate in political and
regulatory discussions to share our expertise on proposed regulatory and supervisory changes. The dialogue is coordinated
by our Governmental Affairs team and organized regionally under the leadership of the globally responsible Head
Governmental Affairs. Our advocacy priorities and engagements, both direct and indirect through trade associations, are
determined based on the UBS Group’s strategy and priorities and aligned with UBS’s senior management. In Switzerland,
they must be aligned with the general political engagement approach defined by UBS’s internal Political Board Swiss
Chapter. In the US, our advocacy priorities are presented to and approved by the Management Committee for the US
Combined Operations at the beginning of every year.
Regarding the stability of the financial system, UBS advocates for an internationally aligned regulatory framework,
including for anti-money laundering and digital regulation, as well as sustainability disclosures. Moreover, in the wake of
the acquisition of the Credit Suisse Group, UBS supports in principle most of the regulatory proposals from the Swiss
Federal Council, as long as they are implemented in a targeted, internationally aligned and proportionate way. UBS is
contributing its perspectives throughout the public consultation process. UBS has submitted a consultation response to
the proposed changes to the Capital Adequacy Ordinance, including changes to the valuation of assets, and a
consultation response to the proposed changes to the Banking Act regarding the capital treatment of foreign
participations. Both responses are publicly available.
In recognition of the essential role played by Switzerland’s political parties, UBS provided a total of CHF 1.2m in relation
to 2025 (2024: CHF 1.2m), as a contribution to support 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 levels.
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. In addition, we are a member of several organizations,
including industry groups, that fund their activities from membership fees or other member contributions. Political
contributions, if any, provided by these industry groups are subject to the disclosure requirements as per the Swiss
transparency requirements for political funding on the part of the recipient (Art. 76 ff. of the Federal Act on Political
Rights and the Ordinance on Transparency in Political Funding). Beyond the above, there were no additional material
contributions, including in kind.
›
Refer to UBS’s response to the 6 June 2025 Capital Adequacy Ordinance consultation and UBS’s response to the 26 September
2025 consultation on the capitalization of foreign participations by parent companies of systemically important banks, available
under “Investor presentations” at
ubs.com/presentations
, for more information
Other key societal stakeholders
Communities
We aim to maximize our impact in local communities. We recognize that our long-term success depends on the health
and prosperity of the communities that we are part of. Our social impact strategy guides the firm’s charitable
contributions toward strategic partners and initiatives that align with the firm’s priorities in the communities where we
operate. Through local measures and partnerships (including with academia), operating within a global framework and
coordinated across regions, we endeavor to deliver business and community impact by identifying innovative and high-
quality programs that are aligned to our business. We provide focused financial and human support, including employee
volunteering programs and client participation where appropriate. In addition, our partnerships in academia contribute
to our efforts to engage with thought leaders at universities and other academic institutions.
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Sustainability Statement | General information 15
Non-governmental organizations
We regularly interact with NGOs and appreciate their input and insight, as they help us consider our approach to, and
understanding of, societal issues and concerns. These may then be considered as part of relevant topic discussions.
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 2025, 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.
Rating agencies
We also actively engage in dialogue with analysts at rating and research agencies, including on environmental, social and
governance (ESG) matters, which helps us to evaluate our sustainability performance and activities and provides a useful
means of benchmarking. In 2025, for example, we provided detailed information about our sustainability-related
performance to a range of agencies, either in response to questionnaires or via calls (with ESG analysts) and the UBS
Group Sustainability Report regularly serves as a key source of information for these agencies.
Media
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.
Annual Report 2025 |
Sustainability Statement | Governance 16
Governance
Our sustainability governance
The role of the Board of Directors of the UBS Group and its committees
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 determines the
Group’s strategy and the necessary financial and human resources, at 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 2025, the BoD of the UBS Group consisted of 12 non-executive members, of whom 41.7% were
women, and the Board of Directors of UBS AG consisted of the same 12 non-executive members, of whom 41.7% were
women. The numbers and percentages are unchanged from 2024.
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 environmental, social and governance (ESG) matters. For
example, the Corporate Culture and Responsibility Committee (the CCRC) is primarily responsible for corporate culture
and sustainability, the Compensation Committee is responsible for financial and non-financial compensation topics, the
Risk Committee (the RC) supervises the integration of sustainability-related matters in risk management, the Governance
and Nominating Committee supports the Board in establishing best practices in corporate governance, and the Audit
Committee has oversight of the control framework underpinning sustainability metrics.
›
Refer to the “Corporate Governance” section of this report for more information about BoD committees
The CCRC is the supervisory body primarily responsible for corporate culture and sustainability. It is chaired by the
Chairman of the BoD, with four BoD members as committee members. Permanent guests include the Group CEO, the
Group Chief Operating Officer, the Group Chief Risk Officer, the Chief Sustainability Officer 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 Group-wide
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 UBS 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 Group Executive Board
(the GEB) and the BoD. The CCRC is also responsible for conducting the annual review process for the Code of Conduct
and Ethics of UBS (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 executive management
As of 31 December 2025, the GEB consisted of 15 executive members, of whom 26.7% were women, and the UBS AG
Executive Board consisted of 14 executive members, of whom 21.4% were women. Except for the President of UBS
Switzerland AG, all the members of the GEB are members of the Executive Board of UBS AG. For both the GEB and the
UBS AG Executive Board, the number of members and the percentage of women are unchanged from 2024.
The GEB has executive management responsibility for steering the Group and its business. It develops the strategies for
the Group, the business divisions and Group functions and it implements the BoD-approved strategies. The GEB develops,
implements and maintains an appropriate and adequate business organization designed to ensure compliance with
applicable laws and regulations and an appropriate management information system.
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Sustainability Statement | Governance 17
The GEB also acts as the risk council of the Group. It has overall responsibility for establishing and implementing risk
management and control in the Group. It manages the risk profile of the Group as a whole as determined by the BoD
and the RC and manages the Group’s reputation. The GEB determines its requirements for risk reporting, including
improvements and changes to the reports, and receives periodic updates on risk data limitations. For the management
of risks, UBS maintains a risk governance framework. This framework governs risks including those related to
sustainability and climate, its own workforce, consumers and end users, and business conduct.
Our risk governance framework operates along three lines of defense.
Our first line of defense, business and Group functions 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 and reports directly to the Group CEO.
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, reports to the Chairman 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
Annual Report 2025 |
Sustainability Statement | Governance 18
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 Head of Sustainability and Climate Risk supports the GEB by
providing leadership on sustainability risk in collaboration with the business divisions and Group functions. Our
sustainability and climate risk policy framework is applied Group-wide to relevant activities, including client and supplier
relationships.
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 Group Chief Operating Officer
(since 1 January 2026) by the Group CEO, the Group Chief Operating Officer is responsible for setting the Group-wide
sustainability and impact strategy and developing Group-wide sustainability and impact objectives in alignment with the
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 sustainability and
impact objectives is reported as part of UBS’s annual sustainability disclosures including the UBS Group Sustainability
Report. Objectives are considered and approved annually by the GEB and the CCRC and progress toward them is tracked
and reported internally on a quarterly basis.
Swiss law requires Swiss companies to achieve net-zero greenhouse emissions in their own operations by 2050. In line
with Swiss law, and as set out in this report, UBS has announced a climate plan to achieve net zero by 2035 across its
own operations (scope 1 and 2), well ahead of the 2050 deadline. This plan is integrated into the firm’s methodologies
and approaches. Adherence is primarily driven by three GEB members: the Group Chief Operating Officer, along with risk
teams led by the Group Chief Risk Officer, and compliance teams under the Group Chief Compliance and Operational
Risk Control Officer and is considered in the annual GEB performance assessments. UBS considers the performance
assessments in determining the performance award decisions. However, there is no direct link between senior
management compensation and specific climate goals.
Ensuring (the availability of) appropriate skills and expertise
We consider the continuous education of the members of the BoD and the GEB to be an important priority and support
their participation in various training sessions. In addition to an induction program for new BoD members, continuous
training and topical deep dives are part of the agendas of the BoD and the GEB. 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.
Our sustainability governance
Our sustainability and corporate culture activities are grounded in our Principles and Behaviors and overseen at the highest
level of the 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, including
by fulfilling our respective compliance obligations. Among
other topics, the sustainability governance of UBS Group
oversees matters related to climate, nature and human rights.
Annual Report 2025 |
Sustainability Statement | Governance 19
Group Sustainability and Impact
Group Sustainability and Impact develops the Group-wide sustainability and impact strategy and oversees the strategy’s
implementation by the business divisions and Group functions responsible for execution. Group Sustainability and Impact
operates under the leadership of the Group Chief Operating Officer. Each of the Group Sustainability and Impact senior
managers listed below, specifically the Chief Sustainability Officer, the Head of Social Impact and Philanthropy and the
Group Sustainability and Impact Chief Operating Officer, report directly to the Group Chief Operating Officer
(since 1 January 2026). Senior managers may hold more than one role and, where required, may have additional
responsibilities and reporting lines in the Group’s legal entities.
Group Chief Operating Officer
Effective from 1 January 2026, the responsibilities previously held by the GEB Lead for Sustainability and Impact have
been integrated into the broader remit of the Group Chief Operating Officer. The Group Chief Operating Officer now
has overall responsibility for overseeing and managing Group Sustainability and Impact. In particular, the Group Chief
Operating Officer 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
Group Chief Operating Officer 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 Group Chief Operating Officer is responsible for the annual UBS Group
Sustainability Report and associated disclosures process, jointly with the Group Chief Financial Officer.
GSI Business Development and Client Forum
The GSI Business Development and Client Forum (the GSI BDCF) is the most senior administrative body overseeing the
Group-wide sustainability and impact activities. The forum is focused on client, product and impact approaches in relation
to the overall UBS sustainability and impact implementation activities, together with the business divisions, operating
under the oversight of the Group Chief Operating Officer.
Chief Sustainability Officer
The Chief Sustainability Officer, jointly with the Head of Social Impact and Philanthropy, supports the Group Chief
Operating Officer in setting the Group-wide sustainability and impact strategy, in alignment with the business divisions
and Group functions. The Chief Sustainability Officer develops and maintains frameworks and methodologies to drive
Group-wide consistency. In addition, the Chief Sustainability Officer manages the annual UBS sustainability reporting
process jointly with Group Finance.
Head of Social Impact and Philanthropy
The Head of Social Impact and Philanthropy oversees the UBS-governed charitable entities, including UBS Optimus
network of foundations entities and donor-advised fund entities. The remit of the Head of Social Impact and Philanthropy
includes overseeing the strategy, corporate structure and governance, financial matters and relevant risks and controls.
The Head of Social Impact and Philanthropy also manages the social impact and philanthropy client and employee offering
through the provision of philanthropic insights, advice and execution services to existing and prospective clients and
volunteering opportunities to UBS employees.
Group Sustainability and Impact Chief Operating Officer
The Group Sustainability and Impact Chief Operating Officer manages the end-to-end processes and the operating and
control environment of Group Sustainability and Impact, together with the business divisions and Group functions. The
Group Sustainability and Impact Chief Operating Officer ensures effective oversight of operational performance and
timely escalation of relevant matters impacting Group Sustainability and Impact. Furthermore, the Group Sustainability
and Impact Chief Operating Officer supports the Group Chief Operating Officer in developing Group-wide sustainability
and impact objectives, in alignment with the business divisions and Group functions, to implement the Group-wide
sustainability and impact strategy and monitor the progress against these objectives.
GSI Execution Forum
The Group Sustainability and Impact Chief Operating Officer is supported by the GSI Execution Forum. This forum reports
to the GSI BDCF and is responsible for the day-to-day oversight of the front-to-back operating environment and for the
implementation of the Group-wide sustainability and impact strategy through Group-wide strategic objectives and
outcomes.
In addition to the roles outlined above, the following senior managers also hold responsibilities related to Group-wide
sustainability: the Head of Sustainability and Climate Risk, the Sustainability Chief Financial Officer, the Group Head
Compliance & Investigations, the Global Head of Sustainability Regulatory Strategy and the Head of Sustainability and
Impact Legal.
Annual Report 2025 |
Sustainability Statement | Governance 20
Business conduct and corporate culture
The Code of Conduct and Ethics of UBS
UBS recognizes the value of having a strong and inclusive culture to define how we work together every day. Our culture
is based on our three keys to success: our Pillars, Principles and Behaviors. These keys drive our business decisions and
people management processes. Culture-building behavior is promoted through a number of Group-wide, divisional and
regional initiatives. Examples of Group-wide actions that are promoted through regular communications include (but are
not limited to) our risk culture campaign (including a focus on speaking up and whistleblowing), the Three Keys on Air
series of events (in 2025, this highlighted key aspects of our culture, including developing a winning mindset, lifelong
learning, and artificial intelligence and ethics), and learning and development for employees and line managers (including
mandatory training). We are also continuing our core culture programs, such as Kudos (peer-to-peer recognition) to
support connectivity and collaboration and the One UBS program, formerly known as our Group Franchise Awards, which
rewards cross-divisional business collaboration and recognizes employees for sharing simplification and innovation ideas
across the firm. An important global initiative launched in 2024, and continued in 2025, was “Crafting our future”,
interactive in-person sessions to ensure leaders and line managers were aligned around our strategic priorities and our
culture to effectively contribute to our success.
In the Code of Conduct and Ethics of UBS (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 is responsible for conducting the
annual review of 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, the committee reviews stakeholder
concerns and expectations pertaining to the societal performance of UBS and to the development of UBS’s corporate
culture.
The Code sets out the principles and commitments that define our ethical standards and the way we do business. It
constitutes a commitment to respecting the laws, rules and regulations that are designed to create a level playing field
for all – including competition and antitrust laws and fair access requirements. The Code commits all UBS employees to
do whatever they can to combat money laundering, fraud, corruption and terrorist financing. It also requires that UBS
employees do not help or advise our clients, or any other party, to evade taxes or misreport taxable income and gains.
Furthermore, the Code 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
, 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 the following.
–
Above all, our culture and our Principles and Behaviors are the strongest mitigants to our exposure to conduct risk.
–
be crystallizing.
–
Identifying actual or potential conduct risks is the responsibility of every UBS employee. Employees 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 role model UBS’s Behaviors and support its risk culture of ”see something, say something”.
Roles and responsibilities for management and governance of conduct are defined in the Group Policy on Conduct Risk
Management. They include reviewing employee, market and client-related conduct risk information, performing periodic
reviews, and considering employee and client feedback.
Ongoing monitoring covers the activities of both the firm and employees, to detect issues that may have a potential
impact on clients and markets, and to detect individual cases of employee misconduct. Conduct risk reporting and
management information included in the Group Risk Report provides the GEB with actionable insights and visibility on
relevant trends and themes.
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.
Breaches of our Code, UBS policies or external laws, rules or regulations may result in disciplinary action, up to and
including dismissal. In addition, employee conduct is considered in year-end performance and reward decisions.
Annual Report 2025 |
Sustainability Statement | Governance 21
Conduct and culture training
We have a global mandatory training module titled “Conduct and Culture”, which educates all employees on adherence
to the three keys. The training explains how our culture and the Code guide business decisions, clarifies standards and
expectations regarding employee behavior and accountability, and helps employees identify and respond to conduct risks.
Additionally, all employees must annually affirm 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.
Group-wide Escalation Framework
Significant matters requiring immediate senior management awareness and action are managed in accordance with our
Group-wide Escalation Framework. This 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 divisional / regional / legal entity annexes detailing specific escalation requirements outlining
taxonomies, thresholds, processes and protocols. The framework ensures that significant matters are escalated promptly
and appropriately, without replacing day-to-day governance, line management responsibilities (e.g. determining
preliminary severity and appropriate initial reaction), monitoring / reporting or regular risk assessments.
Whistleblowing protection for employees
Employees are encouraged to escalate any potential issues and violations to line managers and control functions.
Alternatively, our Whistleblowing Protection for Employees policy and related procedures enable employees to raise
concerns or to escalate potential breaches of laws, regulations, rules or other legal requirements, policies or professional
standards, sexual harassment or misconduct, or any violation of the Code, without fear of retaliation. Whistleblowing
concerns may be raised confidentially or, if preferred, anonymously, via our dedicated whistleblowing channels, which
are made available Group-wide to all employees. These channels, including the whistleblowing intranet form and hotline,
are available at all times. All concerns raised are taken seriously and reviewed.
All employees are required to complete mandatory “Speaking Up at UBS” training every two years, with new joiners
required to complete it during onboarding. This training aligns with the Whistleblowing Protection for Employees policy,
raising awareness of available reporting channels and providing line managers with guidelines for handling employee
concerns. In addition, we encourage a speak-up culture through Group-wide awareness activities, such as
communications from the GEB, newsletters, whistleblowing campaigns and regular employee surveys. These initiatives
reinforce our commitment to non-retaliation and promote safe reporting options.
For staff receiving whistleblowing reports, there are procedures and guidance on handling such reports to ensure each
whistleblowing concern is taken seriously and reviewed. Whistleblowing reports made through the dedicated
whistleblowing channels (intranet form and hotline) 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 reports.
We also maintain controls and processes to check for potential retaliation against known whistleblowers.
Group Investigations
We maintain an investigations framework and the Group Investigations Policy, defining clear roles and responsibilities at
two levels: (i) cross-functional governance bodies that have responsibilities across the investigations portfolio; and
(ii) those with prescribed roles and responsibilities over specific investigations.
Our Group Investigations function is responsible for conducting and overseeing all investigations, including incidents of
corruption and bribery. The investigations must be conducted and governed in a way that ensures they are independent,
objective and reliable, as defined in our Group Investigations Policy, which governs the conduct of all investigations,
including whistleblowing investigations.
The investigations framework also covers reporting requirements, to ensure accurate and complete quarterly reporting
to the BoD and the GEB, as well as to regulators.
Annual Report 2025 |
Sustainability Statement | Governance 22
Combating financial crime
The Group Executive Board (the GEB) oversees our efforts to combat money laundering, corruption and terrorist financing.
The 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 the second line of
defense support the organization in developing, maintaining and implementing Group financial crime programs,
including control and oversight. The 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. By taking measures to prevent and detect non-compliance
with laws and regulations, the firm does not tolerate or facilitate criminal activity or breaches of the latter or spirit of
applicable laws, regulations, rules and policies designed to prevent such activities.
UBS does not knowingly engage in business activities that present unacceptable money laundering, fraud, sanctions or
corruption risks. Money laundering, fraud, sanctions, and bribery and corruption risks associated with all of our business
operations are assessed annually against our control framework and as a firm we take action, where appropriate, to
further mitigate these risks through appropriate policies, procedures and controls.
In 2025, all employees of UBS, including its senior management and governance bodies, received adequate training on
financial crime prevention matters, covering AML / know your client (KYC), sanctions, fraud and anti-corruption topics.
All staff are required to complete the Global Financial Crime Prevention refresher module on an annual basis.
Public–private partnerships
UBS is a founding member of the Wolfsberg Group,
1
the financial services sector to prevent financial crimes, such as money laundering, fraud, corruption and terrorist
financing, and to develop industry standards for 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 officers and works on guidance papers in related key areas of financial crime. UBS is actively involved with
this group.
UBS is 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.
Prevention and detection of corruption and bribery
The Group Policy Against Bribery and Corruption (ABC) is consistent with the principles of the United Nations Convention
against Corruption.
The ABC policy provides the following definitions of bribery and corruption.
–
indirectly, to or from any person, for that person to act improperly or refrain from acting or to act in breach of
performance of official or fiduciary duties, or in breach of contractual or other obligations in order that UBS may obtain
or retain business, or gain any other improper advantage.
–
public officials) or commercial (involving private parties).
The ABC policy sets out a zero-tolerance approach for bribery and corruption; the Group is committed to detecting and
preventing bribery and corruption and requires employees and associated persons (defined as persons that perform
services for, or on behalf of, a commercial organization) to do business in a fair and transparent manner, in compliance
with the principles of the policy.
Each employee is responsible for:
–
policy and related procedures;
–
–
–
channels defined in the Group’s policy on whistleblowing protection for employees.
Delegated by the Global Head Financial Crime Prevention, the Global Head Anti-Bribery and Corruption, supported by
the specialized teams, is responsible for establishing and maintaining an ABC program that incorporates the principles of
the ABC policy as minimum global standards. The BoD Risk Committee and the GEB oversee the Financial Crime program
(including ABC) through regular reviews and reporting. We have adequate systems and controls in place and hold
ourselves accountable for detecting, stopping and reporting bribery and corruption matters.
1
Annual Report 2025 |
Sustainability Statement | Governance 23
The ABC framework comprises tone from the top communications, policies, procedures, training, risk assessments,
controls across all key risk areas, investigations and incident management, and monitoring and assurance (including
independent audit). The program aligns with globally recognized standards and legal and regulatory requirements
designed to prevent and mitigate bribery and corruption risks across all jurisdictions in which we operate, e.g. the UK
Bribery Act and the US Foreign Corrupt Practices Act. The GEB and senior management set the policy and risk appetite
and all employees are accountable for complying with the policy. 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, joint ventures and acquisitions, and client-related ABC risk. There is regular control
testing to ensure that the framework and controls are appropriately designed and operating effectively.
Where corruption or bribery incidents arise, these are identified through controls monitoring, self-declaration or reporting
(e.g. use of the whistleblower hotline), or ongoing due diligence, risk assessment and approval processes. Incident
response is based on the assessed severity and impact, with senior management involved for more serious incidents.
Incidents that are breaches of UBS policies, including the ABC policy, are dealt with pursuant to the Employee Incidents
Policy and framework and may result in disciplinary action, including dismissal, in serious cases.
Risk assessments are conducted under the ABC program, at a minimum annually, and are designed to ensure that the
framework is appropriately designed and operating effectively to address both current and any emerging ABC risks.
Regular updates on the ABC program’s operating effectiveness and incident management reporting are shared with first-
and second-line management committees. They are also reported to the BoD and the Audit Committee. Reporting
includes provision of qualitative and quantitative risk indicators, which cover both inherent and control risk.
The ABC policy is accessible to all employees through our internal policy repository and relevant ABC intranet page. In
addition, an annual declaration and commitment to this policy is required from all UBS staff that includes a statement of
compliance toward any past or current bribery- or corruption-related incidents.
Additionally, our suppliers must comply with anti-bribery and corruption laws at all times, with expectations outlined
within our suppliers’ policy: the Anti-bribery and Corruption, Sanctions, Fraud and Anti-Facilitation of Tax Evasion Policy.
›
Refer to
ubs.com/suppliers
, for more information
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 comprehensive training course within 30 days of starting employment
with the firm and annually thereafter a refresher course is required to be completed by all employees.
Onboarding and ongoing monitoring
UBS performs risk-based initial due diligence on all clients, 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 Anti Money Laundering and Know Your
Client Policy, enhanced due diligence is performed.
As per the Code of Conduct and Ethics, UBS is committed to respecting the laws, rules and regulations that are designed
to create a level playing field with fair access requirements. We act fairly, respectfully and honestly toward everyone with
whom we deal.
After a client onboarding is completed, ongoing due diligence and name screening are performed during the life cycle
of the client relationship. Clients are assigned a risk rating and client activities and transactions are subject to AML
transaction monitoring in accordance with this risk rating. In addition, ongoing periodic KYC reviews are conducted with
varied frequency, driven by the client risk rating.
The Group Anti Money Laundering and Know Your Client 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, along with other clients who have links with jurisdictions or industries that pose elevated levels of
financial crime risk.
Red flags must be referred to Financial Crime Prevention if any UBS staff become aware of potentially suspicious activities
during the client life cycle and this may result in internal reviews, suspicious activity report filing and / or client exit, as
appropriate.
UBS adheres to the global Financial Action Task Force standards and local laws and regulations with regard to record-
keeping.
The financial crime framework is subject to regular independent controls testing, in both the first and second lines of
defense. The Group Internal Audit team performs a 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.
Annual Report 2025 |
Sustainability Statement | Strategy 24
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.
Sustainability and impact vision: be 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 with the sustainable long-term Group strategy and evolving standards. We maintain a strong
control and risk framework to support our risk management processes and product offering, as well as complying with
regulatory requirements. In addition, we have a climate transition plan in place to support our clients in the transition to
a low-carbon world and to reduce their exposure to transition risks while also mitigating related risks to UBS.
›
Refer to the “Environmental information” section of this Sustainability statement for more information about our
decarbonization approach and efforts
›
Refer to the “Managing sustainability and climate risks” section of this Sustainability statement for more information about our
sustainability and climate risk management approach
Grow
We are continuing to expand our sustainability and impact product offering across all business divisions to meet our
clients’ evolving needs and to support them through the world’s transition to a low-carbon economy. Innovation in
product development, client reporting and engagement, as well as exploring artificial-intelligence-driven use cases to
streamline processes are key to delivering competitive solutions. To facilitate this, we have a dedicated Group
Sustainability and Impact Business Development & Client Forum, which focuses on client, product and impact approaches.
›
Refer to the “Governance” section of this Sustainability statement for more information about the Group Sustainability and
Impact Business Development & Client Forum and our sustainability governance
Attract
We aspire to be the bank of choice for clients and employees alike, maintaining top-quartile sustainability ratings and
positioning the firm as a go-to employer through our engagement and education programs. In 2025, our MSCI AA rating
was reaffirmed
1
2
›
Refer to the “Social information” section of this Sustainability statement for more information about UBS’s employees and its
philanthropic activities
1
.
2
Annual Report 2025 |
Sustainability Statement | Strategy 25
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 report. All information
and data provided in this section relates to the UBS Group, unless explicitly stated.
Ambitions
Topics
Our aspirations, goals or targets
Progress
1. 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
(current period: end of 2024 vs 2021
baseline, prior period: end of 2023 vs 2021 baseline).
2
Changes in emissions intensity associated with UBS in-scope lending:
–
Swiss residential real estate reduced 15% (Prior period: 11%);
–
Swiss commercial real estate reduced 10% (Prior period: 9%);
–
power generation reduced 55% (Prior period: 33%);
–
iron and steel reduced 14% (Prior period: 20%); and
–
cement reduced 4% (Prior period: 3%).
Changes in absolute financed emissions associated with UBS in-
scope lending:
–
fossil fuels reduced 83% (Prior period: 80%).
Asset Management provides choice to enable clients to pursue their
climate goals. We commit that all clients’ net-zero-ambition
portfolios align with the Paris Agreement with interim targets by
latest 2035.
3
Asset Management had a combined invested assets value of
USD 111.5bn in net-zero-ambition portfolios (2024: USD 64.4bn).
4
Reduce our scope 1 and 2 emissions to net zero by 2035 (90%
reduction of scope 1 and market-based scope 2 emissions by 2035
vs 2023 baseline, neutralizing the remaining 10% with high-quality
carbon removals).
Scope 1 and market-based scope 2 emissions reduced
by 48% vs 2023 baseline (2024: reduced by 35% vs 2023 baseline).
Reduce our absolute energy consumption by 35% by 2030 vs 2023
baseline.
Absolute energy consumption reduced by 18.8% vs 2023 baseline
(2024: reduced by 9% vs 2023 baseline).
5
Achieve 100% renewable electricity aligned to RE100 in markets
where feasible by 2026.
6
Achieved 99.7% renewable electricity aligned with RE100
(2024: 99.8%).
Environment
Paper:
–
Reduce office printing per FTE by 25% by
2030 vs 2023 baseline.
–
Achieve 90% of recycled paper used for office printing by 2030.
–
Office printing per FTE increased by 2% vs 2023 baseline
(2024: increased by 15% vs 2023 baseline).
–
Achieved 18.1% of recycled paper used for office printing
(2024: 15.5%).
Waste: Achieve a 60% recycling rate for our office waste by 2030.
Achieved 54.0% waste recycling rate (2024: 52.9%).
Water: Reduce water consumption by 7% by 2030 vs 2023
baseline.
Water consumption reduced by 12% vs 2023 baseline
(2024: increased by 2% vs 2023 baseline).
Annual Report 2025 |
Sustainability Statement | Strategy 26
Ambitions
Topics
Our aspirations, goals or targets
Progress
2. 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 network of foundations donation volume of
USD 472m in 2025 (2024: USD 366m), totaling USD 1.6bn since
2021, thus surpassing our goal (all figures include UBS matching
contributions).
Reach 26.5 million beneficiaries by 2025 (cumulative for
2021– 2025).
Reached 9.3 million beneficiaries in 2025 (2024: 7.1 million) and
33.5 million beneficiaries through UBS Optimus network of
foundations activities since 2021.
7,8
3. Attract
Bank of choice
Maintain top quartile position in key environment, social and
governance (ESG) ratings by the end of 2026.
Achieved top quartile position vs direct peers as defined in UBS
compensation report in ESG ratings including but not limited to:
–
MSCI: AA rating, “Leader” in industry group;
–
S&P Global Corporate Sustainability Assessment: score of 71.
Constituent of the Dow Jones Best-in-Class indices.
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
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. Refer to the “Basis of
preparation 2025” document, available at ubs.com/sustainability -reporting for more information about progress calculations, exclusions and parts of the value chain within sectors covered by metrics and targets.
2
Refer to the “Environmental information” section of this Sustainability statement for further information. Our corporate emissions reporting process involves two distinct one-year time lags. Firstly, emissions for a given
year are published the following year (e.g. 2024 emissions are reported in 2025), reflecting the time required to collect, validate and assure the completeness and accuracy of the underlying data prior to disclosure.
Secondly, due to the timing of corporate emissions disclosures and third-party data processing, our year-end 2024 lending exposures are mapped to 2023 emissions data – the most recent available – since companies
typically release emissions figures several months after year-end and data providers require additional time to aggregate and verify this information. As a result, reported 2024 financed emissions are based on 2024
exposures and 2023 emissions data. For Swiss residential and commercial real estate, this lag does not apply, as exposure and emissions data align to the same reporting year (2024).
3
commitment is portfolio-based in line with client agreements and not linked to invested-assets-based targets.
4
portfolios were in the process of being assessed in the context of Asset Management’s net-zero alignment framework and were therefore excluded from this metrics reporting.
5
due to improved data availability. As a result of this revision, our previously reported 2024 progress against target decreased from 10% to 9%.
6
are not yet available.
7
as they are considered to have received different levels of support over the period.
8
Comparative figures have been revised to reflect beneficiaries reached solely through UBS Optimus network of foundations activities.
Annual Report 2025 |
Sustainability Statement | Environmental information 27
Environmental information
Our climate transition plan
In 2025, we further developed our UBS Group climate transition plan and advanced its implementation. This plan
underpins our ambition to support our clients in the transition to a low-carbon world and embeds considerations of
climate-related risks and opportunities across our governance, strategy and operations to ensure their integration
throughout the firm. Our transition plan relates to the UBS Group and is structured around the key pillars outlined below.
Targets and actions
By 2050, the global economy aims to transition to net zero. As part of that, 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:
Scope 3:
Addressing our financed emissions by aligning specified sectors to decarbonization pathways (lending sector
decarbonization targets).
›
Refer to “Reducing our own climate impact” in this section of this Sustainability Statement for details about our scope 1 and 2
net-zero target
›
Refer to “Supporting our clients’ low-carbon transition” in this section of this Sustainability Statement for more details about our
lending sector decarbonization targets
These targets are based on the methodologies, data and assumptions described in this report and are aligned with a
1.5°C scenario, except for our lending sector decarbonization targets for Swiss residential and commercial real estate,
which follow a below 2°C pathway.
1
We will continue to disclose our progress on an annual basis and we will regularly
review and update our targets to reflect evolving regulations, best practices and climate science. Adjustments may be
made to voluntary commitments and underlying metrics and methodologies.
Underpinning our targets, we pursue specific objectives and implement actions across our business:
Supporting our clients’ low-carbon transition
In 2025, we continued to work toward our objectives of supporting the transition of our financing and investing clients to low-
carbon and climate-resilient business models and mobilizing private and institutional capital to facilitate an orderly transition.
Financing:
measurable reductions in financed absolute emissions and emission intensity across key sectors through client
engagement, sustainable and transition finance solutions, and portfolio management.
Investing:
support clients with education and portfolio transparency, reflecting the responsibilities associated with our investment
mandates agreed with clients and evolving climate ambitions.
›
Refer to “Supporting our clients’ low-carbon transition” in this section of this Sustainability Statement for more details
Reducing our own climate impact
We continued to work toward our objectives of minimizing our operational footprint and promoting efficient, sustainable
resource use.
We made significant progress toward our scope 1 and 2 net-zero target, which is supported by our energy reduction and
renewable electricity targets. We reduced our scope 1 and market-based scope 2 emissions from 30,287
2
CO
2
e reported in 2024 to 24,151 metric tons of CO
2
e reported in 2025, resulting in a 48% reduction against our 2023
baseline. Our energy consumption fell by 18.8% against the 2023 baseline, totaling 613 GWh, compared with 684 GWh
2
in 2024. In addition, we sourced 99.7% of our electricity from renewable sources, compared with 99.8% in 2024.
›
Refer to “Reducing our own climate impact” in this section of this Sustainability Statement for more details
1
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.
2
GHG emissions and certain activity data for 2024 were revised, mainly due to improved data availability. As a result of this revision our previously reported 2024 direct greenhouse gas emissions (scope 1) and indirect
market-based greenhouse gas emissions scope 2) increased from 30,274 t CO
2
e to 30,287 t CO
2
e and energy consumption in GWh increased from 679 GWh to 684 GWh.
Annual Report 2025 |
Sustainability Statement | Environmental information 28
Managing the climate impact of our supply chain
In 2025, we continued to manage the climate impact of our supply chain and work toward responsible supply chain
practices. Our activities included tracking supply chain vendor-related scope 3 emissions
1
emissions reporting of our vendors. In 2025, vendor-related emissions increased by 3%, reaching
0.84 million
metric
tons
of
CO
2
e, compared with 0.81 million
metric
tons of
CO
2
e in 2024. In addition, 88% of our GHG key
vendors
2
›
Refer to “Managing the climate impact of our supply chain” in this section of this Sustainability Statement for more details
Managing the risks of climate change to our business
In 2025, we continued to manage climate-related risks by identifying, measuring, monitoring, managing and reporting
these risks, while further integrating regulatory requirements into our financial risk management and stress-testing
frameworks. Our firm-wide sustainability and climate risk policy framework is underpinned by proprietary methodologies
for transition and physical risk assessment, scenario analysis and stress testing. In 2025, we enhanced these tools and
embedded sustainability and climate risk considerations into our various financial and non-financial risk management
frameworks.
›
Refer to the “Managing sustainability and climate risks” section of this Sustainability Statement for more details
Integration into strategy and financial planning
Our climate transition plan is aligned with our Group sustainability and impact strategy, which is based on three overarching
pillars: protect, grow and attract. In relation to our climate transition plan, our strategic ambition manifests as follows.
–
Protect
our business by managing climate risks and supporting our clients’ low-carbon transition to protect their
assets.
–
Grow
–
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.
UBS runs an annual strategy review and objective-setting process related to sustainability and impact matters, including
climate-related topics, to identify priorities and strategic focus areas across the Group. The agreed objectives are
subsequently integrated into our standard multi-year financial planning process.
By embedding climate-related insights into our business strategy and financial planning process, and regularly assessing
climate-related risks and opportunities, we also aim to continuously enhance our resilience to climate change.
Environmental and sustainability objectives continue to be an integral part of our compensation determination process.
We have explicit sustainability-related objectives in the non-financial goal category of the Group CEO and Group Executive
Board (the GEB) scorecards. This structure, with two out of five non-financial categories covering ESG-related objectives,
underscores the importance and impact of sustainability on GEB compensation.
›
Refer to the “Strategy” section of this Sustainability Statement for more information about our Group sustainability and impact
strategy
›
Refer to the “Governance” section of this Sustainability Statement for more information about our strategy review and objective-
setting process
›
Refer to the “Managing sustainability and climate risks” section of this Sustainability Statement for more information about our
analysis of the resilience of our strategy and business model to climate change and how we integrate climate-related impacts in
our financial planning
›
Refer to the UBS Compensation Report 2025, available at
ubs.com/annualreporting
, for more information about our
compensation process
Governance and oversight
Our climate transition plan has been approved and is supervised by the BoD’s Corporate Culture and Responsibility
Committee (the CCRC). The CCRC oversees our Group sustainability and impact strategy and annually approves the
firm’s sustainability and impact objectives.
Group Sustainability and Impact developed and continues to enhance UBS’s climate transition plan, overseeing its
implementation by the business divisions and Group functions through the underlying objectives of the plan. Group Real
Estate and Supply Chain is responsible for steering our in-house environmental management program, covering climate-
related activities within our own operations and supply chain.
›
Refer to the “Governance” section of this Sustainability Statement for more information about our sustainability and climate
governance
›
Refer to “Reducing our own climate impact” in this section of this Sustainability Statement for more information about our in-
house environmental management program and associated governance
1
2
Annual Report 2025 |
Sustainability Statement | Environmental information 29
Dependencies and external enablers
Currently, our climate transition plan does not cover all our business activities. Over time, we may expand our ambitions
to include additional scope 3 activities, subject to the availability of appropriate measurement frameworks, reliable data
and materiality to UBS. It is important to note that progress toward our climate ambitions and targets may not be linear
and depends not only on our internal actions but also on broader systemic developments across sectors and geographies.
Key external enablers include cross-sector collaboration between private and public stakeholders, clear guidance from
governments through thoughtful regulations, policies and incentives, the development and scaling of low-carbon
technologies, and shifts in consumer behavior and market dynamics.
Supporting our clients in their low-carbon transition across our financing and investing activities remains a strategic
priority for us. In the area of client investments, our ability to meet climate-related ambitions is shaped by various factors,
including, where applicable, our fiduciary responsibilities and the terms of client mandates. We continue to embed
sustainability and climate considerations into our operating model, which involves ongoing refinement of our evaluation
and decision-making frameworks, governance structures, control processes and underlying systems.
Supporting our clients’ low-carbon transition
Supporting our clients in their low-carbon transition remains a strategic priority for us. To this end, we have defined
climate-related targets and actions across our financing and investing activities, which are outlined below.
In 2025, we enhanced our approach to transition finance. Beyond increasing investment in activities with sustainability-
related objectives, we recognize that the transition also requires increased support for companies in carbon-intensive
sectors in executing their transition.
To ensure consistency and integrity in our approach, we reviewed the latest international standards, regulations and
guidance
1
on financing and investing in the transition, and took the following actions:
–
defined transition finance –
2
transition”,
4
–
developed criteria for assessing the credibility of transition plans –
transition finance definition to support, where relevant, the assessment of transactions in scope of our sustainability
and climate risk policy framework; and
–
enhanced transparency –
with our definition and supported by international standards, internal sustainability scoring, fund due diligence and
others.
Supporting our financing clients’ low-carbon transition
Our lending sector decarbonization targets
We remain committed to our 2030 lending sector decarbonization targets. This section outlines the methodological
choices underlying our target-setting process and the calculation of our climate-related lending metrics.
Our approach to target-setting is aligned with industry guidance and best practices, and our financed emissions
calculations follow globally recognized standards, including the Greenhouse Gas (GHG) Protocol Corporate Accounting
and Reporting Standard
5
6
As part of our assurance activities in 2024, we engaged Ernst & Young Ltd, Basel 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. These
agreed-upon procedures remain relevant for 2025.
›
Refer to the Lending sector decarbonization targets agreed-upon procedures, available at
ubs.com/sustainability-reporting
, for
more information
1
and of the Council, the IIGCC’s Net Zero Investment Framework 2.0, the UK government’s Transition Finance Market Review (independent review commissioned by HMT and DESNZ) and the ICMA’s Climate Transition
Finance Handbook. These sources were used as reference points and not applied prescriptively.
2
The use of the term “transition”, particularly when used in product naming, marketing or promotion, may be subject to additional regulatory requirements depending on the relevant jurisdiction.
3
4
5
6
PCAF (2022). The Global GHG Accounting and Reporting Standard Part A: Financed Emissions. Second Edition and PCAF (2023). The Global GHG Accounting and Reporting Standard Part B: Facilitated Emissions.
First Edition.
Annual Report 2025 |
Sustainability Statement | Environmental information 30
Financed emissions calculations (1)
Lending activities fall under scope 3, category 15 (financed emissions), as defined in the GHG Protocol Corporate
Accounting and Reporting Standard.
Our financed emissions calculations include the seven gases mandated under the Kyoto Protocol, reported as CO₂e,
except for iron and steel and cement physical intensities, which are reported as CO
2
.
1
We include apportioned scope 1 and 2 emissions of financed counterparties or assets. In addition, scope 3 emissions of
financed counterparties are included for the fossil fuels (coal, oil and gas), automotive and agriculture sectors. This year’s
reporting newly includes financed emissions associated with the agriculture sector;
2
updated accordingly, and comparative values are included. For financed counterparties in other sectors, scope 3 emissions
are excluded due to data quality limitations.
Emissions estimates rely on client disclosures, third-party sources and internal data. Where company- or asset-level
emissions data is unavailable, we use estimates in our calculations, following the PCAF hierarchy.
Our corporate emissions reporting process involves two distinct one-year time lags. First, emissions for a given year are
published the following year (e.g. 2024 emissions are reported in 2025), reflecting the time required to collect, validate
and assure the completeness and accuracy of the underlying data prior to disclosure. Second, due to the timing of
corporate emissions disclosures and third-party data processing, our year-end 2024 lending exposures are mapped to
2023 emissions data – the most recent available – since companies typically release emissions figures several months after
year-end and data providers require additional time to aggregate and verify this information. As a result, reported 2024
financed emissions are based on 2024 exposures and 2023 emissions data. For Swiss residential and commercial real
estate, this lag does not apply, as exposure and emissions data align to the same reporting year (2024).
Scope of targets and baseline year (2)
Our lending sector decarbonization targets cover Swiss real estate mortgages (residential and commercial real estate) and
financing of in-scope activities in the fossil fuels (coal, oil and gas), power generation, iron and steel and cement corporate
sectors.
For real estate, we include loans secured by 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 corporate sectors, we focus on borrowers in sub-sectors or parts of the value chain with the greatest climate impact.
We conduct an annual assessment of all key sectors – both those with established targets and those without – to prioritize
sectors and confirm the scope of our target setting activities. This assessment is guided by a robust internal methodology
that incorporates quantitative and qualitative indicators, including financed emissions and financial exposure materiality,
the availability of relevant data and methodologies, market expectations and alignment with our business strategy.
The sectors for which decarbonization targets have been set represent USD 303.2bn, or 43% of the USD 701.8bn in
total gross lending exposure for 2024 and 70% of the USD 430.9bn in gross lending exposure for which data and
methodologies are available to estimate emissions.
3
improve.
In-scope emissions for our targets are fully aligned with the inventory boundaries used in our financed emissions reporting
for the sectors covered by those targets. Our target sectors account for 67% of total financed emissions (6.9 million
metric tons out of 10.4 million metric tons) for which data and methodologies are available to estimate emissions. All
targets are stated on a gross basis and therefore exclude greenhouse gas removals, carbon credits and avoided emissions.
2021 was selected as the baseline year for our targets set in 2023, in line with industry guidance and best practices. It
was chosen due to being both recent and relevant, with high-quality data available to support robust target-setting.
Scenario selection (3)
For 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, science-based,
country-specific pathway that reflects the government’s climate strategy and guides Switzerland’s decarbonization
ambitions for real estate as set out in the Swiss Climate and Innovation Act. We have chosen this pathway instead of a
1.5°C-aligned scenario because the entire exposure covered by this target is located in Switzerland. Aligning with the
Swiss pathway ensures our targets are consistent with national policy objectives and regulatory requirements, providing
a realistic and locally relevant benchmark for decarbonization in this sector.
1
Guidelines (Vol. 3, IPPU) provide default emission factors with detailed CO₂ quantification for iron and steel and cement process and fuel-related emissions, while non-CO₂ gases are comparatively minor and receive
less emphasis in sector guidance. Refer to IPCC 2006 Guidelines (Vol. 3, IPPU), available at ipcc-nggip.iges.or.jp/public/2006gl/vol3.html for more information. Likewise, the Cement CO₂ and Energy Protocol (WBCSD/CSI)
prioritizes CO₂ reporting for the cement industry and treats non-CO₂ gases as supplemental, to be reported using dedicated tools only where material. This approach aligns with IPCC AR6 sector reporting conventions,
which frame cement process emissions primarily in CO₂ terms. Refer to the document titled “The Cement CO
2
and Energy Protocol” available at docs.wbcsd.org/2011/05/CSI-CO2-Protocol.pdf for more information.
2
3
on consolidated IFRS numbers (inclusive of purchase price allocation adjustments recorded in the UBS Group as a result of the acquisition of the Credit Suisse Group in compliance with IFRS 3, Business Combinations).
Annual Report 2025 |
Sustainability Statement | Environmental information 31
For corporate sectors, we use the percentage decarbonization rate implied by the International Energy Agency (the IEA)
Net Zero Emission (NZE) by 2050 (the IEA’s World Energy Outlook of October 2023 update) scenario
1
to be followed. This scenario is one of the most recent, science-based and widely accepted models that achieves a
temperature increase of no more than 1.5°C by end of the century.
Sector pathways may be updated 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
utilization and storage). Until that point, the possibility of overshoot is factored into certain sector pathways due to the
heavy reliance on external factors outside our direct influence.
Target-setting approach (4)
Targets are based on the full-lending commitment made to our clients. This includes outstanding loans, along with
undrawn irrevocable commitments and guarantees, i.e. amounts we are required to provide upon request by a
counterparty. In contrast, our calculation of total financed emissions for non-financial corporates and real estate
mortgages is based solely on outstanding lending exposure, in accordance with PCAF guidance.
2
For fossil fuels, we set an absolute emissions reduction target using the Absolute Contraction Approach.
3
sectors, we use physical emissions intensity targets, applying the Sector Decarbonization Approach (SDA), which assumes
global convergence of sector emissions intensities by 2050.
4
Physical emissions intensity is preferred for most sectors as it normalizes emissions by output enabling fairer comparison
between corporate clients of different sizes and supporting assessment of their emissions regardless of their growth.
Setting absolute emissions targets could limit our ability to lend to clients, including those with lower carbon intensity,
potentially restricting support for their transition. For transparency, we disclose total absolute financed emissions for the
sectors covered by trajectories.
Governance and disclosure (5)
Targets are set at the UBS Group level, approved and overseen by the BoD’s Corporate Culture and Responsibility
Committee (the CCRC), and managed by business divisions in collaboration with Group Sustainability and Impact and
Group functions under the Group Chief Operating Officer.
Progress is disclosed annually, targets are reviewed at least every five years, and from 2030 onward base years and target
values will be updated every five years to reflect the latest climate science and best practices. Progress may not be linear
and year-on-year volatility is expected due to portfolio changes.
All related metrics shown in the tables below, including financed emissions, are reported at UBS Group level for
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
in compliance with IFRS 3, Business Combinations. A reconciliation table for both entities is provided below.
Parameters and definitions for our 2030 lending sector decarbonization targets (UBS Group)
Sectors
Targets scope
GHG emission
scope
Scenario
Type of target
Residential real estate
1
Region Switzerland only
1,2
2
Energy Perspectives 2050+ ZERO basis for residential buildings (below 2°C)
Intensity
Commercial real estate
1
Region Switzerland only
1,2
2
Energy Perspectives 2050+ ZERO basis for residential buildings & services (below 2°C)
Intensity
Fossil fuels (coal, oil and gas)
B.05, B.06, C.19
3
1,2,3
IEA NZE 2050 - WEO 2023 (1.5°C)
4
Absolute
Power generation
D.35.1.1, D.35.1.3
3
1
IEA NZE 2050 - WEO 2023 (1.5°C)
Intensity
Iron and steel
C.24.1
3
1,2
IEA NZE 2050 - WEO 2023 adjusted for scope 2 (1.5°C)
Intensity
Cement
C.23.5.1
3
1,2
IEA NZE 2050 - WEO 2023 adjusted for scope 2 (1.5°C)
Intensity
1
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.
2
Residential real estate emissions scope covers owners' energy consumption only. Commercial real estate emissions scope covers owners' or tenants'
energy consumption only.
3
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. The scope includes corporate borrowers where more than 25% of their revenues are derived from in-scope activities (except for coal, which is 5%). Revenue percentages are evaluated only at the
pre-deal assessment stage. The materiality assessment may also include counterparties whose production represents a significant share of global output.
4
IEA NZE by 2050 as a reference to base our 2030 target. Our 2030 target (70% reduction) is exceeding the percentage reduction implied by this scenario (34% reduction).
1
reduction).
2
3
The Absolute Contraction Approach requires all companies to reduce emissions by the same absolute percentage, regardless of sector or growth trajectory.
4
The Sector Decarbonization Approach (SDA) allocates emission reductions based on sector-specific decarbonization pathways aligned with technology and activity levels.
Annual Report 2025 |
Sustainability Statement | Environmental information 32
Progress reporting for our 2030 lending sector decarbonization targets (UBS Group)
For the year ended 31.12.24
Gross lending exposure
Progress
5
Targets
2024
2023
2024
2023
2021
2021–24
2030
2021–30
Sectors
Full value
chain
(USD bn)
1
Covered
by targets
(USD bn)
1
Full value
chain
(USD bn)
1
Covered
by targets
(USD bn)
1
Unit
Actuals
Actuals
Baseline
% change
vs
baseline
Value
% change
vs
baseline
Residential real estate
3
336.7
213.3
384.7
242.4
kg CO
2
e / m
2
2
33.0
34.4
38.7
(15%)
21.1
(45%)
Commercial real estate
3
84.1
102.1
kg CO
2
e / m
2
2
28.0
28.5
31.3
(10%)
16.2
(48%)
Fossil fuels (coal, oil and gas)
4
9.4
2.3
10.6
2.8
million metric t CO
2
e
10.9
12.9
64.7
(83%)
19.4
(70%)
Power generation
3.3
2.6
5.0
3.9
kg CO
2
e / MWh
152
227
339
(55%)
136
(60%)
Iron and steel
0.5
0.3
0.7
0.5
metric t CO
2
1.50
1.41
1.75
(14%)
1.28
(27%)
Cement
0.7
0.6
1.1
1.0
metric t CO
2
0.61
0.62
0.64
(4%)
0.48
(24%)
1
Full value chain includes all activities within each sector. Refer to the "Parameters and definitions for our 2030 lending sector decarbonization targets (UBS Group)” table above 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 the UBS Group as a result of the acquisition of the Credit Suisse Group in compliance
with IFRS 3, Business Combinations). Refer to the Basis of preparation 2025 document, available at ubs.com/sustainability-reporting, for more information about exclusions and parts of the value chain within sectors
covered by metrics and targets.
2
3
4
gross lending exposure not covered by this target is commodity trade financing for which guidelines and methodologies have yet to be developed.
5
ubs.com/sustainability-reporting, for more information about progress calculations.
Progress reporting for our 2030 lending sector decarbonization targets (UBS Group – UBS AG reconciliation)
1
For the year ended 31.12.24
UBS Group
UBS AG
Sectors
Unit
2021 baseline
2024 actuals
2024 actuals
Swiss residential real estate
kg CO
2
e / m
2
38.7
33.0
33.1
Swiss commercial real estate
kg CO
2
e / m
2
31.3
28.0
28.1
Fossil fuels (coal, oil and gas)
million metric t CO
2
e
64.7
10.9
11.1
Power generation
kg CO
2
e / MWh
339
152
154
Iron and steel
metric t CO
2
1.75
1.50
1.47
Cement
metric t CO
2
0.64
0.61
0.61
1
Refer to table ‘Parameters and definitions for our 2030 lending sector decarbonization targets (UBS Group)’ above for details on sector coverage. Metrics are calculated based on gross exposures. 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 the UBS Group as a result of the acquisition of the Credit Suisse Group in compliance with IFRS 3, Business Combinations).
Financed emissions reporting – 2024 (UBS Group)
For the year ended 31.12.24
Gross lending
exposure
(USD bn)
1
Outstanding
exposure
(USD bn)
1
Financed
emissions,
scopes 1 and 2
(million metric
t CO
2
e)
2
Financed
emissions,
scope 3
(million metric
t CO
2
e)
2
PCAF score,
scopes 1 and
2
3
PCAF score,
scope 3
3
Economic
intensity
(million metric
t CO
2
e /
USD bn)
2
Exposure to non-financial corporates and real estate mortgages
covered by targets
Swiss residential real estate
4
213.3
212.1
1.1
4.1
0.01
Swiss commercial real estate
4
84.1
83.7
0.6
4.1
0.01
Fossil fuels (coal, oil and gas)
2.3
0.9
0.2
3.9
2.1
2.0
4.80
Power generation
2.6
0.7
0.7
2.1
1.04
Iron and steel
0.3
0.1
0.2
1.6
1.65
Cement
0.6
0.0
0.1
2.8
2.10
Exposure to non-financial corporates and real estate mortgages not
covered by targets
127.7
74.4
2.1
1.4
5
4.7
2.5
0.05
Total non-financial corporates and real estate mortgages
430.9
371.9
5.1
5.3
Financial services firms, private individuals and other
270.9
210.0
Total exposure
701.8
581.9
1
Gross lending exposure includes total on-balance sheet loans and advances to customers and off-balance sheet guarantees and irrevocable loan commitments. Outstanding exposure includes total on-balance sheet
loans and advances to customers. Both gross and outstanding exposures are within the scope of expected credit loss and are based on consolidated IFRS numbers (inclusive of purchase price allocation adjustments
recorded in the UBS Group as a result of the acquisition of the Credit Suisse Group in compliance with IFRS 3, Business Combinations).
2
reporting, for more information about financed emissions calculations.
3
used to calculate financed emissions of corporate loans and real estate mortgages. It is calculated in accordance with PCAF reporting guidance: PCAF (2022). The Global GHG Accounting and Reporting Standard Part
A: Financed Emissions. Second Edition.
4
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.
5
for “Other non-financial corporates and real estate mortgages” are only reported for the agriculture and automotive sectors.
Annual Report 2025 |
Sustainability Statement | Environmental information 33
Financed emissions reporting – 2023 (UBS Group)
For the year ended 31.12.23
Gross lending
exposure
(USD bn)
1
Outstanding
exposure
(USD bn)
1
Financed
emissions,
scopes 1 and 2
(million metric
t CO
2
e)
2
Financed
emissions,
scope 3
(million metric
t CO
2
e)
2
PCAF score,
scopes 1 and
2
3
PCAF score,
scope 3
3
Economic
intensity
(million metric
t CO
2
e /
USD bn)
2
Exposure to non-financial corporates and real estate mortgages
covered by targets
Swiss residential real estate
4
242.4
240.6
1.2
4.1
0.01
Swiss commercial real estate
4
102.1
101.4
0.8
4.1
0.01
Fossil fuels (coal, oil and gas)
2.8
0.8
0.2
3.3
2.0
8
2.2
8
4.60
Power generation
3.9
0.9
1.1
2.3
8
1.15
Iron and steel
0.5
0.2
0.2
2.3
8
0.90
Cement
1.0
0.1
0.4
4.3
8
3.74
Exposure to non-financial corporates and real estate mortgages not
covered by targets
141.4
81.0
2.5
2.0
5
4.7
7
2.5
9
0.06
10
Total non-financial corporates and real estate mortgages
494.1
425.0
6.4
5.3
6
Financial services firms, private individuals and other
285.3
216.5
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. Outstanding exposure includes total on-balance sheet
loans and advances to customers. Both gross and outstanding exposures are within the scope of expected credit loss and are based on consolidated IFRS numbers (inclusive of purchase price allocation adjustments
recorded in the UBS Group as a result of the acquisition of the Credit Suisse Group in compliance with IFRS 3, Business Combinations).
2
Refer to the Basis of preparation 2025, available at ubs.com/sustainability-
reporting, for more information about financed emissions calculations.
3
PCAF scores represent weighted average based on outstanding exposures. The PCAF quality score measures the reliability and quality of data
used to calculate financed emissions of corporate loans and real estate mortgages. It is calculated in accordance with PCAF reporting guidance: PCAF (2022). The Global GHG Accounting and Reporting Standard Part
A: Financed Emissions. Second Edition.
4
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.
5
for “Other non-financial corporates and real estate mortgages” have been updated to include agriculture in addition to the previously reported automotive sector. The 2023 reported values have been updated
accordingly. The previous value reported was 0.2 million metric t CO
2
e.
6
the scope used for prior disclosures. 2023 data has been updated accordingly. The previously reported value was 3.5 million metric t CO
2
e.
7
methodology change from our third-party data provider. Previously reported values were: fossil fuels 1.3; power generation 2.1; iron and steel 1.7; cement 4.1 and “Others non-financial corporates and real
estate mortgages” 4.8.
8
9
From 2024 reporting,
the disclosure has been expanded to include financed emissions associated with the agriculture sector, in addition to the scope used in prior disclosures. 2023 data has been updated accordingly. The previously
reported value was 5.0.
10
From 2024 reporting, the disclosure has been expanded to include financed emissions associated with the agriculture sector, in addition to the scope used in prior disclosures. 2023 data
has been updated accordingly. The previously reported value was 0.03 million metric t CO
2
e / USD bn.
Decarbonization levers and key actions underpinning our lending sector decarbonization targets
To underpin our lending sector decarbonization targets, we identified two decarbonization levers and underlying actions.
While these levers and actions may not always result in directly measurable emissions reductions, they are designed to
support our clients in their decarbonization efforts and to ensure continuous progress toward our targets.
Lever 1: supporting our clients’ low-carbon transition
Achieving our sector decarbonization targets depends on our clients successfully delivering on their own transition plans.
While we have limited direct influence over the pace or success of these transitions, we can make an effective contribution
by enabling and supporting our clients. We do this by understanding their transition objectives and needs, through
engagement and by offering tailored solutions.
Understanding our clients
Understanding our clients is the foundation of how we support their transition, whether or not they have formal
decarbonization targets. We regularly monitor clients’ transition objectives and progress, and evaluate how their delivery
on commitments affects our own decarbonization trajectory.
We conduct an annual review of clients’ disclosed decarbonization commitments in key sectors (power generation, iron
and steel, and cement) and evaluate their potential impact on our own targets. By factoring in the expected emissions
reductions from these commitments, we estimate how much our portfolio’s carbon intensity could decrease and the
expected progress toward our targets if clients deliver on their plans. Based on our current portfolio composition, if these
commitments are fully realized by 2030, the resulting reductions would be sufficient to meet our own sector targets.
Engaging with clients
Building on these insights, we engage with clients to understand their priorities and assist with their climate transition
efforts. Our engagement approach combines strategic and operational elements and is aimed at anticipating and meeting
client needs while aligning with our own decarbonization objectives. Each interaction is tailored to the client’s unique
circumstances.
We selectively integrate sustainability and transition insights into client dialogues and embed them in our risk
management processes. This enables us to track progress, inform decision-making and maintain an ongoing, proactive
dialogue that aligns the decarbonization objectives of both clients and UBS.
We also facilitate engagement through client conferences and workshops featuring sustainability experts.
Our client engagement approach remains flexible, ensuring alignment with evolving regulations, market trends and
jurisdiction-specific considerations. Where appropriate, we are exploring opportunities to make our engagement
strategies more structured and proactive, further aligning them with both clients’ and our own decarbonization goals.
Offering sustainable finance products and services
To support clients in achieving their stated sustainability and transition priorities including their decarbonization
ambitions, we offer targeted sustainable financing solutions.
Annual Report 2025 |
Sustainability Statement | Environmental information 34
Sustainable financing is an important element of the Grow pillar within our Group sustainability and impact strategy,
encompassing both on-balance sheet lending (such as sustainability-linked loans and mortgages) and off-balance sheet,
capital market and private market financing solutions. We provide transaction structuring to help clients across business
divisions integrate sustainability objectives into their financing strategies.
Key products include sustainability-linked loans (SLLs) offered to corporate clients across sectors in Switzerland,
representing general-purpose loans that incorporate tailored sustainability-related key performance indicators (KPIs),
agreed upon with each client, to incentivize progress toward their specific targets. Additionally, we offer use-of-proceeds
financing instruments, such as labeled capital market instruments (e.g. bonds), which dedicate funding to eligible
sustainable projects and initiatives.
We continuously refine and expand our sustainable financing capabilities in line with evolving regulatory requirements,
client needs and best practice.
Lever 2: lending portfolio management
In addition to supporting our clients’ low-carbon transition, and to deliver any remaining reductions in our portfolio
intensities required to meet our lending sector decarbonization targets, we aim to manage our portfolio through a set of
targeted actions.
Applying enhanced due diligence for transactions in carbon-intensive sectors
At the business selection stage, in line with our sustainability risk process, enhanced due diligence may be triggered for
transactions in carbon-intensive sectors with higher climate-related impacts and risks. This process ensures we identify
and assess potential exposures early and integrate risk considerations into our decision-making.
Conducting pre-deal assessments
As part of our established pre-deal assessment processes, we actively assess clients and significant transactions to
determine their alignment with our decarbonization targets, estimate the impact on our financed emissions and
document the projected figures and transaction rationale accordingly. This process has supported greater awareness
among business divisions in the proactive engagement on decarbonization assessments and wider climate considerations
when reviewing transactions.
Allowing maturity of loans or existing positions through our non-core and legacy division
We also allow loans to mature, resulting in adjusted lending exposure and associated carbon intensity. In addition, our
Non-core and Legacy division has materially exited positions and reduced exposures, including those not aligned with
our long-term strategy and risk appetite,
which also resulted in adjusted associated carbon intensity.
›
Refer to “Non-core and Legacy” in the “Our businesses” section of this report for more information
Monitoring progress against targets
In addition to the above, we track our progress against targets. For in-scope sectors, the performance and associated
changes in the lending portfolio are discussed during quarterly performance reviews with business division representatives
from the Investment Bank, Personal & Corporate Banking and Global Wealth Management and our Sustainability and
Climate Risk unit. Reviews include an analysis of trends and significant changes in exposures and emissions, and criteria
that are deemed to influence the target metrics.
We recognize that our ability to achieve these targets and our clients’ realization of their own decarbonization
commitments are influenced by external factors beyond our direct control, such as regulatory developments,
technological advancements and the pace of market transitions. Financial institutions have limited direct influence over
clients’ transition abilities or the speed at which the transition happens. As a result, progress may not be linear. We
continuously monitor our clients’ advancement toward their disclosed commitments and assess how their achievement
of these commitments impacts our own trajectories.
Performance against targets and outlook
For each lending sector decarbonization target, we outline the relevance to our business divisions, report on progress
achieved and indicative trend lines, and outline the key drivers behind changes in absolute emissions or emissions
intensity. Where applicable, we describe the levers and actions we are deploying to advance toward these targets,
acknowledging that not all measures apply uniformly across sectors. Finally, we highlight critical external dependencies
that may influence our ability to meet these targets, ensuring transparency around relevant factors shaping our transition
pathway.
Swiss residential real estate
Relevance:
across Personal & Corporate Banking and Global Wealth Management.
Progress:
by the Swiss government’s Energy Perspectives 2050+ ZERO Basis (EP 2050+) scenario for residential buildings. By the
end of 2024, our estimated portfolio emissions intensity decreased by 15% against the 2021 baseline, reaching 33.0 kg
CO
2
e per m
2
fuel heating. Additionally, starting in 2024, we began accounting for the impact from photovoltaic systems installed on
the roofs of financed properties. Although this effect is currently limited, it is expected to grow in significance over time.
Our estimated emissions intensity is 0.6% above the 2024 level of our indicative trend line to 2030 (32.8kg CO
2
e per m
2
ERA).
Annual Report 2025 |
Sustainability Statement | Environmental information 35
Outlook:
On the one hand, we provide self-service tools and advice – such as the digital renovation calculator launched in e-
Banking and on
ubs.com
2
e
footprint and energy consumption level before and after renovation. On the other hand, we offer products for renovations
or acquisitions of energy-efficient properties.
Dependencies:
building efficiency and non-fossil-fuel heating systems. We will continue collaborating with government and industry
peers to align on required actions.
Swiss commercial real estate
Relevance:
The decarbonization pathway for commercial real estate lending covers financing activity in Switzerland
across Personal & Corporate Banking and Global Wealth Management.
Progress:
by the Swiss government’s EP 2050+ scenario for residential buildings and services. By the end of 2024, our estimated
portfolio emissions intensity decreased by 10% against the 2021 baseline, reaching 28.0 kg CO
2
e per m
2
driven by an increased share of financed properties with non-fossil-fuel heating and an increase in financed properties
with high-quality building envelopes that reduce heat loss. Additionally, starting in 2024, we began accounting for the
impact from photovoltaic systems installed on the roofs of financed properties. Although this effect is currently limited,
it is expected to grow in significance over time. Our estimated emissions intensity is 6.7% above the 2024 level of our
indicative trend line to 2030 (26.3kg CO
2
e per m
2
Outlook:
solutions. UBS Loan Green continues to be a key product for clients planning low-energy new constructions, energy-
efficient renovations or the acquisition of sustainable properties, offering customized financing and guidance.
Dependencies:
building efficiency and non-fossil-fuel heating systems. We will continue collaborating with government and industry
peers to align on required actions.
Fossil fuels (coal, oil and gas)
Relevance:
Our fossil fuel portfolio is concentrated among a small number of corporate clients in the Investment Bank
and Personal & Corporate Banking, with limited exposure from Global Wealth Management.
Progress:
reduction implied by the IEA NZE by 2050 scenario (34% reduction by 2030). By the end of 2024, our estimated financed
emissions decreased by 83% against the 2021 baseline, totaling 10.9 million metric tons of CO
2
e. Between 2021 and
2022, emissions fell by 29%, primarily driven by an overall reduction in the financed portfolio and a significant decrease
in coal exposure. In 2023, several loans were classified as non-core and, by 31 December 2023, were no longer held in
line with the Group’s strategy, driving the remaining reduction for that year. In 2024, the additional reduction was mainly
driven by an overall reduction in the financed portfolio. Our estimated financed emissions are 78.1% below the 2024
level of our indicative trend line to 2030 (49.6 million metric tons of CO
2
e).
Outlook:
continue to finance clients in line with our sustainability and climate risk policy framework.
Dependencies:
on fossil fuels for energy security and affordability in many regions.
Power generation
Relevance:
Our power generation portfolio spans corporate clients across the Investment Bank, Personal & Corporate
Banking and Global Wealth Management.
Progress:
by the IEA NZE by 2050 scenario. By the end of 2024, our estimated portfolio emissions intensity decreased by 55%
against the 2021 baseline, reaching 152 kg CO
2
e per MWh, primarily driven by a reduced exposure to high carbon-
intensity clients. In Personal & Corporate Banking, clients with a significant share of renewable energy production in
Switzerland also contributed to our emissions intensity being below the IEA benchmark. Our estimated emission intensity
is 43.8% below the 2024 level of our indicative trend line to 2030 (271.3 kg CO
2
e per MWh).
Outlook:
those plans are fully implemented. We aim to support our clients in their low-carbon transition and continue to provide
financing in line with our sustainability and climate risk policy framework. We expect the reduction of non-core loans to
contribute to a further decrease in portfolio intensity.
Dependencies:
in clean energy. Recent data indicates that investments of around USD 2.2trn per annum are going toward clean energy,
representing two thirds of global energy investments. Spending on low-emissions power generation has almost doubled
over the past five years. This increase is driven not only by emissions reduction targets but also a variety of economic,
technology, industrial and energy security considerations.
›
Refer to “World Energy Investment 2025” available at
iea.org/reports/world-energy-investment-2025,
Annual Report 2025 |
Sustainability Statement | Environmental information 36
Iron and steel
Relevance:
Our iron and steel portfolio is concentrated among a small number of corporate clients in the Investment
Bank and Personal & Corporate Banking, with limited exposure from Global Wealth Management.
Progress:
by the IEA NZE by 2050 scenario. By the end of 2024, our estimated portfolio emissions intensity decreased by 14%
against the 2021 baseline, reaching 1.50 metric tons of CO₂ per metric ton of steel. This represents a higher intensity
than in 2023, when the portfolio was 20% below the baseline. The year-on-year increase results from a shift in portfolio
composition, where exposure decreased to clients with comparatively lower emissions intensity. Our estimated emissions
intensity is 5.7% below the 2024 level of our indicative trend line to 2030 (1.59 metric tons CO
2
Outlook:
those plans are fully implemented. We aim to support our clients in their low-carbon transition and continue to provide
financing in line with our sustainability and climate risk policy framework. This can include supporting production shifts
that reduce reliance on coal and by promoting increased scrap use, direct reduction processes and electric arc furnace
technologies.
Dependencies:
steelmaking technologies, supported by research, development and robust policy incentives.
Cement
Relevance:
Our cement portfolio consists of corporate clients in Personal & Corporate Banking and the Investment Bank.
Progress:
by the IEA NZE by 2050 scenario. By the end of 2024, our estimated portfolio emissions intensity decreased by 4% against
the 2021 baseline, reaching 0.61 metric tons of CO
2
improvements among existing clients. Our estimated emissions intensity is 4.2% above the 2024 level of our indicative
trend line to 2030 (0.59 metric tons of CO
2
Outlook:
with strong disclosures and externally verified emissions reduction targets, including interim 2030 goals. We aim to
support our clients in their low-carbon transition and continue to provide financing in line with our sustainability and
climate risk policy framework. This can include increasing exposure through sustainability-linked products or project ring-
fencing and providing advisory support on transactions such as asset acquisitions, business line disposals, equity raising
and share buybacks.
Dependencies:
intensity has remained largely flat in recent years, underscoring the need for disruptive solutions.
Our approach to measuring facilitated emissions from our capital markets business
Our role in capital market transactions helps our clients access capital for their businesses. We recognize that these
activities can influence real-economy emissions and therefore we consider it important to monitor and disclose the
emissions associated with transactions we facilitate. 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: they are off-balance sheet, reflecting services rather
than financing, and they relate to short-term transaction involvement rather than long-term loan exposure. In line with
industry guidance, we distinguish between on-balance sheet “financed” and off-balance sheet “facilitated” emissions.
By disclosing facilitated emissions for public capital markets transactions, we aim to provide transparency on the emissions
linked to our capital market activities. These emissions are calculated in accordance with the PCAF Global GHG
Accounting and Reporting Standard – Part B Facilitated Emissions (first version, December 2023), which covers primary
capital market issuance activities including public equity capital markets and public debt capital markets where we acted
as, among others, lead bookrunner, lead manager or co-manager. We continue to monitor emerging industry guidance
and target-setting methodologies for facilitated emissions. Facilitated emissions for the 2025 reporting year are not
presented due to the inherent time lag in emissions data availability.
In 2025, we expanded our coverage beyond carbon-intensive sectors to include all non-financial corporate sectors,
revising 2023 figures accordingly, aligning the scope of our facilitated emissions reporting with that of our financed
emissions disclosures. This provides a more complete view of the emissions associated with our capital markets activities.
We include apportioned scope 1 and 2 emissions of facilitated counterparties. In addition, scope 3 emissions of facilitated
counterparties are included for the fossil fuels (coal, oil and gas), automotive and agriculture sectors. For facilitated
counterparties in other sectors, scope 3 emissions are excluded due to data quality limitations.
It is important to note that facilitated emissions are influenced by annual transaction volumes and our market share,
which can vary year to year. In 2024, for the selected carbon intensive sectors where we report scope 1 and 2 facilitated
emissions, the overall facilitated amount declined, resulting in a corresponding decrease in scope 1 and 2 facilitated
emissions. For the sectors where scope 3 emissions are included, specifically fossil fuels (coal, oil and gas) and automotive,
the underlying facilitated amount increased, leading to a rise in scope 3 facilitated emissions.
Annual Report 2025 |
Sustainability Statement | Environmental information 37
Beyond reporting our facilitated emissions, we review and assess Global Banking transactions, employing a robust
business selection process for mandates that are accepted. We conduct an annual assessment of the proximity of our
products and services to sustainability and climate risks as part of risk control self-assessment. Capital markets activities
fall within our sustainability and climate risk policy framework, enabling us to identify and manage potential adverse
impacts on climate, nature, the environment and human rights, as well as associated risks that may affect us and our
clients.
Facilitated emissions reporting (UBS Group)
1
For the year ended
31.12.24
31.12.23
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
3
PCAF
score,
scope 3
3,4
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)
4
PCAF
score,
scopes 1
and 2
3
PCAF
score,
scope 3
3,4
Facilitated
intensity
(million
metric t
CO
2
e / USD
bn)
Selected carbon-intensive
sectors
2
4.8
0.6
2.1
2.4
2.5
0.55
6.5
1.3
1.8
2.2
6
2.5
6
0.46
Other non-financial
corporates
5
36.7
0.5
0.4
2.7
2.5
0.02
33.8
0.5
0.3
3.0
2.4
0.02
Total non-financial
corporates
5
41.5
1.1
2.5
2.7
4.2
0.09
40.4
1.8
2.1
2.9
4.2
0.10
Public administration,
financial and insurance
activities
87.0
83.8
Total facilitated amount
128.5
124.2
1
This table includes data derived from data provided under license by ION. ION retains and reserves all rights in such data.
2
generation, iron and steel, aluminum, cement, automotive and air transportation. Refer to the sector approach in the “Supporting our financing clients’ low-carbon transition” in this section of this Sustainability
statement for more information about the parts of the value chain within the relevant scope of the sectors.
3
4
for fossil fuels, agriculture and automotive sectors.
5
facilitated emissions reporting with that of our financed emissions disclosures. Facilitated emissions, PCAF scores and facilitated intensity have been calculated for 2023 for comparative purposes.
6
scores for scopes 1 and 2 and for scope 3 were updated following a methodology change introduced by our third-party data provider; the previously reported values were 1.6 (scopes 1 and 2) and 1.7 (scope 3).
›
Refer to the Sustainability and climate risk policy framework, available at
ubs.com/sustainability-reporting
, for more information
›
Refer to the Basis of preparation 2025, available at
ubs.com/sustainability-reporting
, for more information about our
methodology to calculate facilitated emissions
Supporting our investing clients’ low-carbon transition
We remain committed to supporting our investing clients in the transition to a low-carbon world, in line with the
obligations to our clients. These include our fiduciary duties as an investment manager and the terms of the mandates
agreed with clients. In 2025, we continued to deliver on the key strategic actions identified in 2024, presented below.
Our approach focuses on providing our clients with choices through our climate-related solutions and engagement
activities. It should be noted that not all these actions are relevant to both Asset Management and Global Wealth
Management, or to all regions within these divisions, and progress on these actions may not be linear or simultaneous.
1. Expanding climate-related strategies, products and solutions
We develop and enhance our platform of climate-focused investment strategies and products, offering clients access to
solutions that align with their transition goals and enabling the shift of capital toward opportunities that align with or
support the transition to a low-carbon economy.
2a. Engaging investee companies (Asset Management only)
Through stewardship, we encourage companies to adopt credible transition plans and manage financially material
climate-related risks and opportunities.
2b. Collaborating with third-party fund managers
1
We work with third-party fund managers to understand their climate transition plans and approaches to climate-related
risks and opportunities and collaborate on the development of climate-related solutions, where the legal framework
allows.
3. Supporting clients through education and portfolio transparency
We provide thought leadership, education sessions, portfolio construction tools and transparency tools to help clients
identify climate risks and transition opportunities, enabling informed investment decisions aligned with their climate
objectives.
4. Providing employees with training, tools and information
We offer training to our employees to integrate climate considerations into client advice and portfolio management,
ensuring support for clients navigating the transition in accordance with their climate objectives.
1
Detailed actions for Asset Management are not presented separately, as these activities are embedded within its broader investment and oversight processes.
Annual Report 2025 |
Sustainability Statement | Environmental information 38
5. Engaging with policymakers
1
We participate in discussions on key topics such as regulations and policy development, advocating for standards that
support effective investment approaches to climate issues and the broader transition economy.
Details by business division on each strategic action are provided below.
›
Refer to “Supporting our transition plan: key enablers” in this section of this Sustainability statement for an overview of our
relevant Group initiatives, beyond the specific actions outlined below for Asset Management and Global Wealth Management
Asset Management
Asset Management provides choice to enable clients to pursue their climate goals. We commit that all clients’ net-zero
ambition portfolios align with the Paris Agreement with interim targets by latest 2035.
2
Asset Management manages
USD 111.5bn in net-zero ambition portfolios as at year end 2025 (compared with USD 64.4bn in 2024).
3
Our climate-related policies, guidelines and frameworks
In addition to the Group-wide policies, guidelines and frameworks, Asset Management also applies specific policies,
guidelines and framework.
The
Asset Management Approach to Sustainable Investing
builds on the
Group Sustainable Investing Policy
. It determines how investment approaches relating to ESG integration
and sustainable and impact strategies are implemented across the business, including the approach to climate changes
across investment strategies. The document also describes Asset Management’s exclusion approach and the scope of
application, and the approach to stewardship, which highlights the activities undertaken to monitor and, where necessary,
intervene on matters that may affect the long-term value of investee companies. The document is owned by Asset
Management’s Sustainable Investing team and is applicable to all of Asset Management’s employees globally involved in
the processes of manufacturing, distributing, labelling, marketing or promoting investment products or services that are
positioned as sustainable investing. In addition, the
Asset Management Proxy Voting Policy
standards for employing voting rights on behalf of clients conforming with Asset Management‘s philosophy of good
corporate governance.
The
Asset Management Net Zero Alignment Framework
development of products and solutions meeting the needs of clients for net-zero ambition 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, carbon markets and private debt.
›
Refer to “Supporting our transition plan: key enablers” in this section of this Sustainability statement for an overview of our
Group-wide policies, guidelines and frameworks
›
Refer to
ubs.com/ch/en/assetmanagement/capabilities/sustainable-investing
approach to sustainable investing
Climate-related investing metrics
The table below provides metrics related to the investments of the Asset Management division. Investment-associated
emissions are provided based on the recommendations of the Task Force on Climate-related Financial Disclosures (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 in our equity,
fixed income and multi-asset portfolios, accounting for 53% of the total invested assets of Asset Management (compared
with 48% in 2024).
The table below shows the progression of carbon metrics for Asset Management and for the equities and fixed income
asset classes. Higher absolute carbon emissions reflect a combination of growth in overall invested assets and an increased
scope of portfolios for which carbon metrics can be calculated. Overall carbon intensity measures declined during 2025,
consistent with market movements reflected in major investment indices, adjustments to the portfolios offered to clients
and portfolio-level changes made on behalf of Asset Management clients.
1
also cover Global Wealth Management. Refer to “Supporting our transition plan: key enablers” in this section of this Sustainability statement for further details.
2
3
and were therefore excluded from this metric’s reporting.
Annual Report 2025 |
Sustainability Statement | Environmental information 39
Climate-related investing metrics – portfolio emissions (Asset Management)
1,2
For the year ended
31.12.25
31.12.24
Asset Management investment-associated carbon emissions
Carbon emissions (absolute in million metric tons of CO
2
e)
70.0
54.8
Carbon intensity (in metric tons of CO
2
e per USD m invested)
48.3
56.5
Carbon intensity (in metric tons of CO
2
e per USD m of revenue or GDP)
3
94.8
101.2
Equities Asset Class
Carbon intensity (in metric tons of CO
2
e per USD m invested)
33.1
38.5
Carbon intensity (in metric tons of CO
2
e per USD m revenue)
86.8
90.4
Fixed income Asset Class
Carbon intensity (in metric tons of CO
2
e per USD m invested)
93.9
108.3
Carbon intensity (in metric tons of CO
2
e per USD m revenue or GDP)
3
112.5
130.9
1
2
have been migrated onto UBS platforms. As the process was carried out in waves, these portfolios were only partially included in 2024.
3
Carbon intensity revenue measures comprise a combination based on the
revenue of corporate issuers and the share of GDP of sovereign issuers.
›
Refer to the Basis of preparation 2025, available at
ubs.com/sustainability-reporting
, for more information about our climate-
related investing metrics
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: Expanding climate-related strategies, products and solutions
Asset Management has a broad sustainable investing product shelf, which includes traditional and alternative funds,
exchange-traded funds and mandates with broad sustainability and climate orientations. Examples of such products include
strategies that invest in climate solutions, the energy transition, green bonds, transitioning real estate and more. To meet
our clients’ preferences and demands, we continuously review our suite of sustainability and climate-related portfolios.
In 2025, we expanded our offering primarily in net-zero real estate, active equities, corporate fixed income and rules-
based strategies. This included expanding our Climate Aware fund range. For Swiss institutional clients, new launches
included the Equities World ex CH Small Caps Climate Aware and the Equities Emerging Markets Climate Aware funds.
With these additions, Swiss institutional investors can now invest in four Climate Aware net-zero-aligned equity
benchmark universes: Switzerland, developed markets ex Switzerland (large caps), developed markets ex Switzerland
(small caps) and emerging markets.
We also developed customized decarbonization mandates with interim 2030 targets, designed to achieve 40%
decarbonization by 2030 compared with 2019. These mandates include a rules-based equity strategy, an active equity
strategy and an active fixed income strategy. We also collaborated with a leading index provider to create custom indices
that reflect individual client expectations. These indices combine Paris-Aligned Benchmark (PAB) criteria, activity and
norms-based exclusions, positive screening aligned with the UN Sustainable Development Goals (SDGs) and
environmental, social and governance (ESG) ratings.
The table below shows progress related to total assets with a net-zero ambition. The growth in invested assets for net-
zero ambition portfolios was mainly driven by the formalization of net-zero objectives for existing portfolios. Foreign
exchange effects, positive market performance and net new money also contributed to this increase. In 2025, we
extended the availability of net-zero ambition portfolios across additional asset classes, such as active equities and fixed
income, reflecting both the introduction of new strategies and enhancements to existing portfolios. This also included
expanding our real estate offering. As a result, our growing net-zero ambition offering is increasingly comprehensive and
better positioned to provide clients with choices across a diversified net-zero shelf of investment options.
Climate-related investing metrics: Opportunities – net-zero ambition investing (Asset Management)
For the year ended
31.12.25
31.12.24
Assets with documented net-zero ambition (USD bn)
1
111.5
64.4
Net-zero ambition assets share of total invested assets (%)
5.3
3.6
1
The scope of assets with net-zero ambition for 2025 is Asset Management. For 2024, Credit Suisse portfolios were in the process of being assessed in the context of Asset Management’s net-zero alignment
framework and were therefore excluded from this metrics reporting.
Action 2: Engaging investee companies
Asset Management has maintained a dedicated climate engagement program for over seven years, focusing on investee
companies in listed equity and corporate fixed income investment portfolios where climate change represents a potential
investment risk. This program supports our ambition to protect and enhance the value of our clients’ investment portfolios
in line with our fiduciary duty. The engagement is guided by company-specific engagement objectives, an evidenced-
based research framework and sector-specific standards addressing governance, corporate transition plans and
decarbonization levers.
In 2025, Asset Management strengthened its proxy voting approach to reinforce engagement efforts which are undertaken
to protect the financial aspects of investments in companies with elevated levels of climate change risk. This involved
identifying larger companies in selected sectors that fall short of basic expectations on managing climate transition-related
risks. In these cases Asset Management may vote against directors due to these climate strategy considerations.
Annual Report 2025 |
Sustainability Statement | Environmental information 40
In Asset Management’s real assets business, active ownership relating to climate change is integrated, where applicable,
into the management of its funds, and is implemented throughout the ownership cycle of an underlying investment,
from development or acquisition to ongoing asset management, renovation, maintenance and sale.
Action 3: Supporting clients through education and portfolio transparency
Asset Management recognizes that its approach to climate change investment is determined by clients’ choices. That is
why it aims to help clients achieve their climate objectives by partnering with them on climate risk management and by
providing information on evolving practices for portfolios with climate objectives. This includes supporting climate-
oriented portfolio construction, where applicable, through internal transition readiness assessment methodologies,
transparency on climate-relevant metrics and thought leadership.
In 2025, Asset Management supported clients in various ways, reflecting the specific needs of the clients involved. For
example, it helped a central bank in Europe to understand the complex and diverse Paris-aligned benchmark landscape
in terms of index providers and methodologies. We partnered with the client to support the design of a custom index
solution.
During the year, Asset Management also published thought pieces and guidance. They include
Oil & gas: the case for
higher returns
,
A climate-driven investment approach
,
Harnessing climate data
, and
A focus on climate can achieve
multiple investor goals
.
Action 4: Providing employees with training, tools and information
To support clients in the low-carbon transition, Asset Management equips employees with training, tools and information
aligned with its sustainable investing goals. In 2025, Asset Management delivered internal presentations on sustainable
investing topics, including climate change, and offered targeted training sessions. We continued role-specific knowledge
development through the Berkeley UBS external certification program and conducted regulatory learning sessions
educating investment professionals about sustainable investing regulatory and greenwashing risks.
Action 5: Engaging with policymakers
Asset Management engages with policymakers such as regulators and governments to provide input into policy and
regulation ultimately seeking to support the development of well-functioning markets.
With respect to climate issues, Asset Management engages with key stakeholders such as national and international
policymakers through industry forums such as: The European Fund and Asset Management Association’s ESG &
Stewardship Standing Committee, the UK Investment Association’s Sustainability & Responsible Investment Committee
and the Asset Management Association Switzerland’s Expert Committee Sustainable Finance. In the Asia Pacific region,
Asset Management is a member of the Asia Securities Industry and Financial Markets Association’s ESG Committee and
the Australian Financial Services Council’s ESG Working Group. Recent focus topics included the EU’s Omnibus
Regulation, the Swiss Stewardship Code and Swiss Climate Scores, and the evolution of sustainable investing / ESG
product regulations and regimes.
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. That is why 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.
Our approach combines offering a range of credible solutions with building investor awareness, driving innovation across
asset classes and strategies and equipping 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.
Aligned to our overall approach to supporting our investing clients, Global Wealth Management has implemented Group-
wide policies, guidelines and frameworks, supported by targeted actions.
›
Refer to “Supporting our transition plan: key enablers” in this section of this Sustainability statement for an overview of relevant
policies, guidelines and frameworks
Our key climate-related actions
Global Wealth Management aims to manage its climate-related impacts through the actions described below. While
these actions may not always result in directly measurable emissions reductions, they are designed to enable and support
such reductions over time.
Action 1: Expanding 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 decarbonization objectives. In 2025, Global Wealth Management continued to expand the
number of investment solutions across asset classes and strategies. Highlights included:
–
launching the third iteration of the Climate Innovation Fund, its flagship climate technologies venture capital fund of
funds;
–
onboarding a range of transition-focused long-only equity and fixed income funds; and
–
repositioning the existing transition-focused MyWay module to align with the transition framework published by our
Chief Investment Office.
Annual Report 2025 |
Sustainability Statement | Environmental information 41
We believe that the transition to a low-carbon world requires a diversified approach, where investments in clean energy
infrastructure and green technologies are complemented by effective and credible shareholder and bondholder
engagement with high-emitters. Therefore, we allocate a portion of our discretionary portfolios to impactful engagement
strategies, including those that invest in companies with the objective of driving decarbonization, and regularly
collaborate with these managers with regard to their impact measurement and reporting capabilities. In 2025, we
onboarded an engagement fund that targets decarbonization of high climate impact sectors.
Action 2: Collaborating with third-party fund managers
Global Wealth Management works closely with third-party fund managers on developing new sustainability and climate
solutions, where relevant and permitted by legal frameworks. It aims to identify relevant and compelling investment
opportunities and credible tools and support the launch of new solutions where possible and relevant for client portfolios.
In 2025, Global Wealth Management engaged with many of its fund management partners to understand how they are
expanding their transition offering. It also hosts regular “innovation sessions” with managers on its platform to discuss
market trends, development ideas and new strategies. These sessions include a focus on sustainability and transition.
Action 3: Supporting clients through education and portfolio transparency
Global Wealth Management aims to support clients advance their climate objectives and deepen their understanding of
how their portfolios align with these goals through education, investment research, thought leadership, portfolio
construction and transparency. Its 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 2025, Global Wealth Management continued to provide coverage of climate-related investing topics in publications
for private clients. Our Chief Investment Office published:
–
Its framework for investing in the transition to a low-carbon economy, identifying different ways for clients to invest
in the transition and related opportunities across sectors;
–
a publication on opportunities for climate solutions in venture capital; and
–
continued coverage of opportunities in renewable energy infrastructure.
Climate and the transition also remain a central part of the broader coverage of our Chief Investment Office, featured in:
–
The annual sustainable investing outlook, identifying key sustainable investing opportunities for 2025, highlighting the
transition as a key theme for 2025;
–
periodical sustainable investing publication and event coverage (e.g. New York Climate Week, COP30, Hong Kong
Green Week);
–
associated with “Power and Resources”.
Global Wealth Management activated this content internally and externally through a variety of channels, including video
content, social media campaigns, podcasts in collaboration with industry partners and through UBS’s website.
To further enhance transparency, Global Wealth Management began the rollout of the Sustainable Investing Lab (the SI
Lab) in some regions, with broader availability planned for next year. The SI Lab and the reporting capabilities provide
advanced sustainability and climate-related insights for clients, advisors, portfolio managers and investment specialists.
Since the Swiss Climate Scores were introduced in 2023, Global Wealth Management has continued to provide advisors
with related content through its platform. It has also incorporated key environmental statistics into the after-sales
materials for relevant investment modules offered to clients.
Action 4: Providing employees with training, tools and information
Global Wealth Management continues to strengthen employee capabilities on climate and transition topics by offering
an education curriculum covering sustainability and sustainable investing topics in certain regions and access to our newly
launched SI Lab providing tools to better understand sustainability and climate-related data on investee companies, funds
and portfolios.
Annual Report 2025 |
Sustainability Statement | Environmental information 42
Reducing our own climate impact
To reduce our own climate impact, we have implemented clear governance, policies, guidelines and frameworks, targets
and actions.
Governance
Responsibility for managing environmental and climate-related impacts across our operations and supply chain is held by
Group Real Estate and Supply Chain (GRESC), which reports to the Head Group Human Resources and Corporate Services.
GRESC collaborates closely with the Group Technology, responsible for minimizing technology-related environmental
impacts from hardware, data centers and cloud environments.
GRESC ensures that all activities comply with local legislation and are aligned with international standards, specifically
ISO 14001 globally and ISO 50001 in the EMEA region, as outlined in our manual for our environmental and energy
management systems. Through these efforts, and with Group Technology’s focus on optimizing technology infrastructure
and implementing energy efficiency measures, we continue to reduce our overall environmental footprint and advance
our sustainability objectives.
›
Refer to “Supporting our transition plan: key enablers” in this section of this Sustainability statement for further information
about our manual for our environmental and energy management systems and additional Group -wide policies, guidelines and
frameworks
Our operational climate-related targets
Our scope 1 and 2 net-zero target
Established in 2024, the scope 1 and 2 net-zero target remains central to our climate transition plan. Across all our global
own operations, we aim to reduce our scope 1 and market-based scope 2 emissions by at least 90% against our 2023
baseline of 46,278 metric tons of CO
2
e by 2035, before neutralizing any residual emissions through the purchase of
carbon removal credits. As part of the pathway toward 2035, we set a 2030 interim target to reduce scope 1 and market-
based scope 2 emissions by 57% against our 2023 baseline. This interim target is a gross target and does not include
GHG removals, carbon credits or avoided emissions. Emissions covered by our target are fully aligned with the inventory
boundaries used for our greenhouse gas emissions reporting.
For 2025, our combined scope 1 and market-based scope 2 emissions totaled 24,151 metric tons of CO
2
e, compared
with 30,287
1
2
e for 2024, representing a 48% reduction from our 2023 baseline and 20% year-on-
year. Separately:
–
scope 1 emissions totaled 14,690 metric tons of CO₂e, compared with 18,636
1
reduction of 29% from the baseline and 21% year-on-year; and
–
market-based scope 2 emissions totaled 9,462 metric tons of CO₂e, compared with 11,651
1
2024, a reduction of 63% from the baseline and 19% year-on-year.
When developing the scope 1 and 2 net-zero target, we reviewed sectoral net-zero pathways (e.g. real estate) but found
none fully reflected the structure of our operations. We followed the latest guidance from the Science Based Target
initiative (the SBTi) and use its Absolute Contraction Approach,
2
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. Although our net-zero target
and trajectory have not been externally assured, the baseline and subsequent greenhouse gas emissions inventories are
verified according to ISO 14064 standard.
It is important to note that business growth and technological advancements may lead to changes in workforce size,
which could impact real estate and service-related needs. The continued advancement of low-emission technologies for
space heating, and countries’ net-zero commitments are expected to positively impact the achievability of our target. The
impact of heating system types and building envelope quality is accounted for in our emissions calculations through the
measured energy consumption for a specific building coupled with the emission intensity for the respective heating
system. Where measured data is not available, we use estimates based on comparable information. We recognize that
the impact of such developments is difficult to quantify in the forecast 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 factor that will impact target achievement is the availability of renewable-source electricity in line
with RE100 requirements as production may not necessarily keep pace with an increase in global demand.
From 2026 onward (as part of our beyond value chain commitment), we will voluntarily retire technological carbon
removal credits annually to match our full scope 1 emissions by 2030, scaling in line with our declining emissions
trajectory.
1
GHG emissions and certain activity data for 2024 were revised, mainly due to improved data availability. As a result of this revision our previously reported 2024 direct greenhouse gas emissions (scope 1) increased
from 18,168 t CO
2
e to 18,636 t CO
2
e and indirect market-based greenhouse gas emissions (scope 2) decreased from 12,107 t CO
2
e to 11,651 t CO
2
e.
2
Annual Report 2025 |
Sustainability Statement | Environmental information 43
Our energy reduction target
Alongside our scope 1 and 2 net-zero target, we aim to reduce our absolute energy consumption by 35% by 2030
compared with our 2023 baseline of 755 GWh. The ambition level of this target was determined through forecasting
the expected energy usage reductions resulting from the implementation of the relevant decarbonization levers and
actions described below.
In 2025, our absolute energy consumption totaled 613 GWh, compared with 684 GWh
1
from our baseline and of 10.3% year-on-year. Our energy reduction efforts also help mitigate the risk of not achieving
full renewable electricity sourcing as market challenges may arise.
Our renewable electricity target
We maintain our commitment to sourcing 100% of the electricity we use from qualifying renewable generation by 2026,
in line with RE100 technical guidance, in markets where credible renewable electricity generation and tracking systems
exist. In 2025, this excluded the Bahamas and Qatar, where such systems are not yet available. In 2025, we sourced
99.7% of our electricity from renewable sources, compared with 99.8% in 2024.
Target considerations and monitoring progress
Our operational climate-related targets continue to be led and managed by GRESC in collaboration with Group
Technology. 2023 was selected as the baseline year for our net-zero and energy reduction targets, in line with industry
guidance and best practices, and reflecting material changes for the Group. The baseline year reflects the first full year
of operations following the acquisition of the Credit Suisse Group, ensuring that the organizational perimeter, activity
levels and emissions sources of the combined entity are fully and consistently represented. As a result, 2023 provides a
stable and representative reference point for measuring progress toward our targets. We actively engaged relevant
stakeholders in the development of these targets by collecting strategic assessments from topic experts, regional
representatives and real estate managers. Progress is disclosed annually, targets are reviewed at least every five years and,
from 2030 onward, base years and target values will be updated every five years to reflect the latest climate science and
best practices.
For the energy consumption and related scope 2 emissions inventory, where measured data could not be obtained,
estimates are included based on comparable measured information.
It is important to note that progress toward our targets may not be linear, as annual results can fluctuate due to changes
in operational activity, business growth, technology evolution, workforce dynamics and energy market conditions. These
factors can influence real estate and service-related needs. We regularly assess them as part of our annual planning and
monitoring process to enable timely course correction. The availability of renewable-source electricity remains a critical
enabler of our progress, and we continue to ensure procurement in line with RE100 requirements.
We continue to implement energy efficiency measures across our real estate and data centers, ensure renewable-source
electricity use and embed low-carbon practices across our operations and technology. These efforts advance our
decarbonization impact and demonstrate our ongoing commitment to achieving our operational climate-related targets.
Decarbonization levers and key actions underpinning our operational targets
To deliver on our operational climate-related targets outlined above and manage our climate-related impacts in our own
operations, we identified a set of decarbonization levers and corresponding actions across our real estate operations and
service portfolio. These levers represent categories of mitigation actions, providing the framework for structuring and
implementing our actions.
Lever 1: phasing out fossil fuels and switching to greener alternatives (scope 1)
We are making progress with the implementation of our four-part action plan to phase out fossil fuels and switch to
greener alternatives to significantly reduce our associated scope 1 emissions. This lever represents roughly one-third of
our progress toward achieving our scope 1 and 2 net-zero target, underscoring its critical role in decarbonizing our
operations.
Phasing out fossil-fuel-powered own vehicles
We are committed to phasing out fossil-fuel-powered vehicles in our global fleet by 2035. Where full transition is not yet
feasible, we will deploy the best available interim solutions, such as hybrid vehicles, while continuing to pursue greener
alternatives. This approach ensures compliance with evolving emission standards and optimizes operational efficiency,
while minimizing our carbon footprint.
Transitioning to sustainable fuels and battery technologies
In 2025, we began implementing the high-level plans developed in 2024, that extend through 2035 and focus on
reducing and replacing fossil fuels in critical engineering power systems. We aim to replace these conventional fuels with
more sustainable alternatives, such as biofuels, hydrogenated vegetable oils and battery technologies. We completed the
cross-regional market analysis of fuel alternatives initiated in 2024 and used its results to enhance procurement and
deployment planning.
1
GHG emissions and certain activity data for 2024 were revised, mainly due to improved data availability. As a result of this revision, our previously reported 2024 energy consumption in GWh increased from 679 GWh
to 684 GWh.
Annual Report 2025 |
Sustainability Statement | Environmental information 44
Eliminating heating oils and natural gas
We are replacing heating systems that are based on oil and natural gas within our operations, targeting full transition by
2035, in line with industry decarbonization efforts. This involves identifying real estate assets suitable for electrification
and switching to district heating, thereby maximizing both operational and cost efficiency throughout each asset’s
lifecycle.
Adopting refrigerants that have low global warming potential
We are progressing the replacement of traditional refrigerants with alternatives that have lower global warming potential
(GWP). This initiative is being rolled out across all regions, with completion targeted for 2035.
Lever 2: reducing our operational emissions (scopes 1 and 2)
Alongside reducing our scope 1 emissions, we are also focusing on reducing our operational emissions through strategic
enhancements to our corporate real estate portfolio and data centers. By implementing four key actions, we plan to
create more energy-efficient workspaces and real estate. The actions are part of our target achievement strategy and will
continue through 2035 and beyond. This lever represents just over a quarter of the progress toward achieving our scope 1
and 2 net-zero target, reflecting the importance of operational efficiency in achieving our climate goals.
Consolidating and optimizing our corporate real estate portfolio
In collaboration with the individual business divisions, we continued optimizing our real estate footprint by exiting from
or downsizing underutilized spaces and reducing our corporate real estate portfolio’s energy usage, either via retrofitting
or, in some cases, by relocating to more sustainable buildings.
Our data center strategy is focused on streamlining operations by consolidating primary sites and rightsizing capacity to
meet demand. Decommissioning legacy Credit Suisse sites and migrating applications to the Cloud or co-location
environments has optimized strategic locations, reduced costs and eliminated parallel run emissions.
Upgrading and retrofitting our corporate real estate portfolio
To reduce our real estate energy footprint, we intend to upgrade and retrofit our portfolio in line with internationally
recognized building standards, such as Leadership in Energy and Environmental Design (LEED) by the US Green Building
Council (USGBC). We expect to improve and extend the existing energy management system within the EMEA region,
with greater implementation of ISO 50001, driving energy efficiency across our operations.
Supporting the decarbonization of district heating and cooling systems
Although we do not have direct operational control over external district heating and cooling systems, we plan to support
their decarbonization as part of our real estate consolidation strategy. Over the next few years, we plan to establish an
engagement plan to foster partnerships and collaborate with stakeholders (including local communities and utility
companies) to promote the transition to low-carbon district heating solutions.
Improving energy efficiency and demand-side management
Complementing our renewable-source electricity strategy, we are investing in energy efficiency technologies and smart
energy management systems to further reduce electricity demand. This includes optimizing building operations,
leveraging real-time data analytics and supporting behavioral initiatives to further reduce our scope 2 emissions.
Lever 3: transitioning to renewable-source electricity generation (scope 2)
Transitioning to renewable-source electricity generation remains central to achieving our net-zero target. Building on
progress since 2020, we are advancing our efforts to source 100% of our electricity from renewable-source -qualifying
generation by 2026, in line with RE100 technical guidance and local market feasibility. This lever represents close to a
quarter of the progress toward achieving our scope 1 and 2 net-zero target, highlighting the pivotal role of clean
electricity sourcing in our strategy.
Identifying and implementing opportunities for direct power purchase agreements
We regularly assess our real estate ownership and lease arrangements to identify long-term opportunities for sourcing
electricity directly from renewable generators through power purchase agreements. This approach supports the build-
out of new electricity generation plants and strengthens 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. Where feasible and in line with
RE100 guidance, we prioritize in-country procurement and direct contracting, maximizing impact and transparency.
Improving the transparency of the chain of custody for renewable energy certificates
We continue to work closely with our key electricity suppliers to enhance the transparency and traceability of renewable
energy certificates associated with our operations. We regularly assess whether existing electricity products and tariffs
meet RE100 criteria and actively explore opportunities to support the development of new offerings that strengthen
compliance and foster a more competitive, transparent and RE100-aligned renewable-source electricity market.
Building competitive renewable energy certificate supply solutions
In electricity markets where our consumption volumes are insufficient for tariff negotiations, or where regulatory
frameworks limit available electricity tariff options, we continue to purchase additional renewable energy certificates to
cover our residual electricity needs. We conduct competitive tenders for broker services and manage these contracts
through our corporate vendor governance processes to ensure alignment with evolving RE100 standards. We also support
renewable-source electricity generators in markets where their products cannot be integrated into local energy tariffs,
helping to unlock new supply pathways and promote market inclusivity.
Annual Report 2025 |
Sustainability Statement | Environmental information 45
Advancing renewable-source electricity tracking systems
In a few countries where we operate, infrastructure for tracking renewable-source electricity volumes remains
underdeveloped or absent, compromising the availability of renewable energy certificates in line with RE100 technical
criteria. We actively engage in industry and policy consultations to promote the creation of renewable energy tracking
systems in emerging markets. Our objective is to expand access to verifiable renewable electricity sourcing in these
regions, supporting market transformation and alignment with RE100 standards.
Investing in on-site renewable generation of electricity
We regularly assess our real estate ownership and lease arrangements to identify assets where we expect to maintain
long-term operational control and where infrastructure (e.g. roof space) can support the deployment of on-site
renewable-source electricity generation. Where technically and economically feasible, we continue to invest in on-site
renewables, such as solar panels, reducing reliance on grid-based electricity and mitigating risk associated with future
market constraints that could limit access to renewable-source electricity tariffs or certificates. This approach strengthens
our energy resilience and supports our decarbonization strategy.
Beyond our scope 1 and 2 emissions
In 2025, we continued to strengthen our approach to managing travel-related emissions through enhanced reporting
and policy measures. We improved our internal carbon intensity metrics and data granularity to provide more
comprehensive insights into travel emissions before and after trips, enabling better measurement and management of
our footprint.
Our travel policy remains focused on encouraging employees to choose lower-carbon transport options where feasible.
We also expanded partnerships with hotels that meet recognized sustainability standards, which are clearly flagged at
the point of sale to support informed decision-making.
In 2025, business travel emissions totaled 60,772 tons of CO₂e, a 26% decrease compared with 2024 (81,964 tons of
CO₂e). While we recognize that the 2025 reduction is largely due to the reduction of the emission factors for air travel
published by the UK Department for Environment, Food & Rural Affairs (DEFRA), these actions reflect our commitment
to reducing the environmental impact of business travel while maintaining transparency and alignment with recognized
reporting standards.
›
Refer to “Supporting our transition plan: key enablers” in this section of this Sustainability statement for more information about
the UBS Business Travel and Expense Policy
GHG removal and GHG avoidance projects financed through carbon credits
We aim to achieve our 2035 scope 1 and 2 net-zero target by reducing emissions by at least 90% from the 2023 baseline
and neutralizing any remaining residual emissions through the purchase of high-quality, permanent technological carbon
removal credits. In addition, from 2026 onward (as part of our beyond value chain commitment), we will voluntarily retire
technological carbon removal credits annually to match our full scope 1 emissions by 2030, scaling in line with our
declining emissions trajectory.
From 2035 onward, we will retire sufficient credits to maintain net-zero status for scope 1 and market-based scope 2
emissions, not exceeding the 10% maximum against our 2023 baseline. Credits are sourced through strategic
partnerships with Climeworks and neustark, established in 2022 as part of our carbon removal strategy. Both companies
focus on developing and scaling innovative carbon removal technologies. We are also a founding buyer of the NextGen
CDR Facility, a coalition of five companies committed to scaling high-quality carbon removal solutions and catalyzing the
development of a robust market for engineered removals. These partnerships have continued to evolve and strengthen
throughout 2025, reinforcing our commitment to credible and science-based carbon removal pathways.
Since 2007, the UBS Group has matched 100% of air travel emissions with an equivalent amount of nature-based carbon
avoidance and removal credits. In 2025, in line with this commitment, we retired 49,000 credits verified under the Verra
VCS standard, rated “A” on average by the third-party carbon ratings agency BeZero Carbon at the time of retirement,
compared with 75,211 credits in 2024.
All carbon credit purchases comply with our carbon and environmental markets guideline, which sets minimum
requirements for such instruments. We only purchase credits assessed against the Integrity Council for the Voluntary
Carbon Market (the ICVCM) Core Carbon Principles and verified under recognized high-integrity standards such as Gold
Standard, Verra.
We acknowledge that standards and methodologies for carbon credits are still evolving, and we will continue to improve
our portfolio through market partnerships and industry engagement toward a standardized quality benchmark for the
future.
Carbon credits canceled outside our value chain (UBS Group)
For the year ended
31.12.25
31.12.24
Total (t CO
2
e)
49,000
75,211
Share from removal projects (%)
60%
60%
Share from avoidance projects (%)
40%
40%
Share of carbon credits verified against recognized quality standards (Verra VCS) (%)
100%
100%
Annual Report 2025 |
Sustainability Statement | Environmental information 46
Internal carbon pricing
We continue to apply a forward-looking shadow carbon price of USD 400 per metric ton of CO
2
e to all our scope 1 and
market-based scope 2 emissions at the UBS Group AG consolidated level. This price is used to incentivize the adoption
of low-emission technologies in real estate projects, including the replacement of fossil-fuel heating systems, relocation
of real estate assets and fuel transition in critical engineering power systems.
The carbon price is reviewed annually to ensure its relevance to our climate transition plan and to reflect developments
in carbon removal technologies and market dynamics. As part of setting our internal carbon price, we have considered
critical assumptions such as the expected future costs of engineered removals and insights from past purchases of removal
projects. At present, our internal carbon price is used exclusively for strategic and operational decision-making. It is not
reflected in our financial statements.
›
Refer to the “Environmental indicators” table below for more information about the volume of our scope 1 and market-based
scope 2 emissions covered by our internal carbon price, and how this relates to our total emissions
Greenhouse gas emissions reporting
Description of methodology for our greenhouse gas reporting
Our GHG emissions across scopes 1 and 2 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. For scope 3 emissions, we have considered the GHG Protocol Corporate Value Chain
(Scope 3) Accounting and Reporting Standard (Version 2011). Emissions for scope 3, category 15, are reported separately.
›
Refer to “Supporting our clients’ low-carbon transition” in this section of this Sustainability statement an overview of our
financed emissions and further methodological information
GHGs in scope and units used
All GHG emission figures are reported in metric tons of carbon dioxide equivalents (CO
2
e). For scopes 1 and 2 and scope
3, categories 3, 5 to 8 and 13, 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), sulfur hexafluoride
(SF6) or nitrogen trifluoride (NF3) emissions under our operational control. For scope 3, categories 1, 2, 4 and 9, emission
factors are used that include CO
2
, CH
4
, N
2
O, HFCs, PCFs, SF
6
3
). Scope 3, categories 10, 11,
12 and 14, are not relevant for UBS. Biogenic emissions are assessed as immaterial for our operations and are therefore
not reported separately.
Quantification of emissions
Scope 1 and 2 emissions, along with scope 3, categories 1 to 14, are calculated for UBS Group based on the operational
control approach, in accordance with the GHG Protocol Corporate Standard (version 2004). There are no entities, assets
or sites outside of the consolidated financial statements over which UBS Group has operational control. Reporting at the
UBS Group AG consolidated level is designed to ensure that material environmental impacts are captured consistently
across the entire Group, including at subsidiaries.
When possible, the most recent global warming potential (GWP) values published by the Intergovernmental Panel on
Climate Change (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, DEFRA’s Greenhouse Gas Conversion Factors for Company
Reporting and, in some cases, the US Environmental Protection Agency (the 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.
Scope 1
Scope 1 emissions include emissions from burning fossil fuels (e.g. heating oil, natural gas) in buildings, loss of refrigerants
and from use of fuels in company-owned vehicles for business travel.
Emissions are calculated using measured activity data at the building and country level across the following environmental
accounts: natural gas, heating oil, diesel / heating oil for emergency power supply, biomass, wood pellets, wood chips,
fuel consumption for company-operated vehicles and refrigerants. Activity data is converted into GHG emissions using
the latest DEFRA emission factors.
Where measured activity data is unavailable for a specific period, scope 1 emissions are estimated using prior-year intensity
factors or by gap filling with historical data adjusted for current operating conditions.
Scope
Underlying data type
Emission factor source
Scope 1 direct GHG emissions
Measured and estimated activity data
DEFRA
1
Annual Report 2025 |
Sustainability Statement | Environmental information 47
Scope 2
Scope 2 emissions include emissions from purchased electricity, including electricity used in IT infrastructure hosted in
facilities not under UBS’s operational control, and cooling, district heating and other externally provided heating systems
(e.g. steam).
Where measured activity data is unavailable for a specific period, scope 2 emissions are estimated using prior-year intensity
factors or by gap filling with historical data adjusted for current operating conditions. In cases where no measured activity
data is available, emissions are estimated based on comparable average measured data for similar locations considering
region, building use, number of full-time equivalent (FTE) staff, occupancy, net internal area, etc.
In 2025, 99.7% of the electricity used across our global corporate real estate portfolio, including data centers, came from
renewable sources (compared with 99.8% in 2024), with 44% of bundled electricity and 56% of unbundled electricity
coming from such sources (compared with 43% and 57% in 2024).
1
91% were covered by contractual instruments (compared with 91% in 2024).
Emissions are calculated using both measured and estimated activity data, converted into GHG emissions using the most
recent emission factors from DEFRA (for most categories including fuels and travel), the EPA and the IEA for global
electricity and some Swiss-specific factors where relevant. Where provider-specific information about fuel sources for
district heating is available, corresponding emission factors are applied. Our GHG emissions calculations, including the
application of emission factors, are verified under the ISO 14064 assurance process.
Scope 2 emissions are disclosed using both the market-based and location-based approaches to ensure transparency and
comparability.
Scope
Underlying data type
Emission factor source
Scope 2 indirect GHG emissions from purchased energy
Measured and estimated activity data
DEFRA, EPA, IEA
Scope 3
Scope 3 emissions are reported for each significant category. Significant scope 3 categories were determined based on
multiple inputs. Firstly, the estimated absolute GHG emissions and the estimated GHG emissions intensity informed the
importance of the category for UBS. Secondly, the availability of data was assessed to decide 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.
To calculate scope 3, category 1, 2, 4 and 9, emissions, we used a combination of spend-based and activity-based
methods, depending on the availability and quality of underlying data. Supplier-specific information is incorporated
whenever verified data is available, otherwise we relied on appropriate average-data approaches. These categories are
reported together because they are primarily driven by UBS’s annual spend with external vendors, covering both capital
and operating expenditures, and include transportation-related spending associated with the delivery of purchased goods
and services. Where full-year data is not available, estimates may be applied to reflect November and December spending.
The category 1 disclosures capture total paper procurement based on vendor spend, including packaging and sanitation
paper, resulting in higher volumes than our operational paper consumption metrics.
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 using building attributes and FTE-based intensity factors based
on prior-year measured consumption for similar assets and activities in the same region. Scope 3, category 6, includes
emissions from our business travel by air, rail and road, based on the level of detail captured in our expense reporting
systems, as well as emissions from hotel stays. Scope 3, category 7, covers employee commuting and a recognized
framework for home-working emissions.
Scope 3, categories 8 and 13, are reported for the first time in our disclosures. Category 8 emissions are estimated based
on upstream energy consumption information provided by landlords or facility operators (e.g. common area consumption
in office buildings and shared energy use in data centers), wherever this information is available. The same emission
factors are applied as for UBS’s own corresponding activities in Scopes 1 and 2. Category 13 emissions are estimated
based on the sublet area multiplied by UBS’s own GHG intensity per square meter for the same building or, where UBS
is not present in the same building, for the relevant country.
Scope 3, categories 10 to 12, are not relevant to the UBS business model, as we do not supply physical products. Scope
3, category 14, are not applicable to UBS, as we do not have franchises.
1
Comparative 2024 figures have been revised following the standardization of bundled and unbundled electricity classification across regions. As a result of this revision, the previously reported share of bundled
electricity increased from 30% to 43%, while the share of unbundled electricity decreased from 70% to 57%.
Annual Report 2025 |
Sustainability Statement | Environmental information 48
Scope 3 other indirect GHG
emission categories 1–14
Underlying data type
Emission factor source
1. Purchased goods and services
1
Combination: (i) spend-based, (ii) supplier-specific actual emissions,
(iii) average-data method
(i) supplier-specific disclosures where available, or
industry-standard environmental data sets sourced from
an external environmental performance disclosures
platform, (ii) provider’s emissions, (iii) secondary
emission factors for water
2. Capital goods
1
Not separated from category 1
Not separated from category 1
3. Fuel- and energy-related activities (not
included in scopes 1 and 2)
Measured and estimated activity data
Same as scope 1 and 2 energy / fuel indicators
4. Upstream transportation and distribution
1
Not separated from category 1
Not separated from category 1
5. Waste generated in operations
Measured and estimated activity data
DEFRA
6. Business travel
Measured activity data
DEFRA and supplier-specific factors if applicable
7. Employee commuting
Estimated activity data (commuting), United Nations Framework
Convention on Climate Change (UNFCCC model (working from home)
DEFRA
8. Upstream leased assets
Measured and estimated activity data
Same emission factors as scopes 1 and 2
9. Downstream transportation
1
Not separated from category 1
Not separated from category 1
10. Processing of solid products
n/a
n/a
11. Use of solid products
n/a
n/a
12. End-of-life treatment of sold products
n/a
n/a
13. Downstream leased assets
Estimated activity data
Same emission factors as scopes 1 and 2
14. Franchises
n/a
n/a
15. Investments
Refer to “Supporting our clients’ low-carbon transition” in this section of this Sustainability statement, for more information about
our financed emissions
1
GHG emissions from scope 3, category 1, include GHG emissions from scope 3, categories 2, 4 and 9.
Annual Report 2025 |
Sustainability Statement | Environmental information 49
Overview of our environmental indicators (UBS Group)
Environmental indicators
1
For the year ended
31.12.25
31.12.24
31.12.23
GRI
2
Absolute
3
Trend
4
Absolute
3
Absolute
3
Energy
Total direct and intermediate energy consumption
302-1-e
613 GWh
æ
684 GWh
755 GWh
Total direct energy consumption
5
302-1-e
73 GWh
æ
80 GWh
92 GWh
Natural gas
302-1-a
79.2%
à
83.2%
67.8%
Heating oil
302-1-a
9.9%
á
8.0%
18.7%
Fuels (petrol, diesel, gas, biomass)
6
302-1-a
9.7%
á
8.0%
12.9%
Renewable energy (solar power, etc.)
302-1-b
1.2%
á
0.9%
0.6%
Total intermediate energy purchased
302-1-e
540 GWh
æ
604 GWh
663 GWh
Electricity
302-1-c-i
472 GWh
æ
532 GWh
587 GWh
Heat (e.g. district heating)
7
302-1-c-ii, iii, iv
69 GWh
à
72 GWh
76 GWh
Share of electricity from renewable sources
8
302-1
99.7%
à
99.8%
95.6%
Travel
Total business travel
392 m Pkm
ä
358 m Pkm
310 m Pkm
Rail travel
9
6.1%
á
2.9%
3.6%
Road travel
9
6.2%
á
4.9%
10.1%
Air travel
87.7%
à
92.2%
86.4%
Number of flights (segments)
159,785
à
153,805
130,836
Paper
Total paper consumption
301-1-a
2,766 t
à
2,647 t
3,371 t
Post-consumer recycled
301-1-a-ii
8.4%
à
8.1%
5.3%
New fibers FSC
10
301-1-a-ii
61.8%
á
42.2%
66.2%
New fibers ECF + TCF
10
301-1-a-i
29.8%
â
49.6%
28.5%
New fibers chlorine-bleached
10
301-1-a-i
0.0%
à
0.0%
0.0%
Waste &
Water
Total waste
306-3
6,658 t
à
6,996 t
8,485 t
Valuable materials separated and recycled
306-4
54.0%
à
52.9%
57.4%
Incinerated
306-5-c-ii
22.7%
à
22.3%
20.5%
Landfilled
306-5-c-iii
23.3%
æ
24.8%
22.2%
Total water consumption
11
303-5
1.06 m m³
æ
1.23 m m³
1.21 m m³
Greenhouse gas
(GHG)
Direct GHG emissions (scope 1)
12,14
305-1
14,690 t
â
18,636 t
20,796 t
Location-based energy indirect GHG emissions (scope 2)
12
305-2
108,328 t
â
131,620 t
150,735 t
GHG reductions from renewable electricity
305-5
98,866 t
â
119,970 t
125,252 t
Market-based energy indirect GHG emissions (scope 2)
12
305-2
9,462 t
â
11,651 t
25,482 t
Other indirect GHG emissions (scope 3)
12
305-3
1,038,687 t
à
1,061,210 t
1,354,681 t
Total location-based GHG emissions
13
305-1, 305-2, 305-3
1,161,705 t
à
1,211,466 t
1,526,212 t
Total market-based GHG emissions (GHG footprint)
13
305
1,062,839 t
à
1,091,496 t
1,400,960 t
Legend: GWh = gigawatt hour; Pkm = passenger kilometer; t = metric ton; m
3
2
e = CO
2
1
Category 13) and improved data availability. As a result of this revision our previously reported 2024 Total market-based GHG emissions increased from 1,075,934 t CO
2
e to 1,091,496 t CO
2
e. Individually,
our direct greenhouse gas (GHG) emissions (scope 1) increased from 18,168 t CO
2
e to 18,636 t CO
2
e, Market-based energy indirect GHG emissions (scope 2) decreased from 12,107 t CO
2
e to 11,651 t
CO
2
e and other indirect GHG emissions (scope 3) increased from 1,045,659 t CO
2
e to 1,061,210 t CO
2
e.
2
information.
3
4
Trend indicators: stable (
→
) for variances below 5%; low decreasing / increasing (
↘
,
↗
) for variances greater than
5% and below 15%; decreasing / increasing (
↓
,
↑
) for variances above 15%. Trend arrows relate to the year-on-year change in the displayed number and not underlying figures.
5
energy purchased or produced and consumed (gas, oils, fuels and renewable sources).
6
7
8
electricity refers to electricity generated from renewable sources such as wind, hydro or solar. Nuclear energy is excluded from this definition.
9
Process enhancements in 2025 have resulted in expanded data coverage for rail and road travel.
10
Chlorine Free; TCF for Totally Chlorine Free. The UBS Group regards recycled paper and FSC-certified paper as renewable and sustainable. Our new 2030 target relates specifically to recycled paper used
for office printing. New fiber chlorine-bleached is considered non-renewable material.
11
12
Corporate Standard (ghgprotocol.org), the international standards for GHG reporting. GHG emissions are reported in metric tons of CO
2
e. Scope 1 accounts for direct GHG emissions by the UBS Group.
Scope 2 accounts for 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. Scope 3 accounts for other indirect GHG emissions for categories 1, 2, 3, 4, 5, 6, 7, 8, 9, 13. See the “Overview of GHG emissions across our scope 3 sub-
categories (UBS Group)” table below. Biogenic emissions are assessed as immaterial for our operations (23 t CO
2
e) and therefore are not reported separately from scope 1.
13
exclude scope 3, category 15 (Investments). GHG footprint equals total location-based GHG emissions minus GHG reductions from renewable electricity.
14
maintenance practices, and data quality have collectively enhanced data collection and reduced leakages, leading to lower emissions.
Annual Report 2025 |
Sustainability Statement | Environmental information 50
We continue our work to quantify and provide transparency for our value chain emissions related to our own operations.
The table below shows a more detailed view of the scope 3 greenhouse gas categories for UBS Group.
Overview of GHG emissions across our scope 3 sub-categories (UBS Group)
1
For the year ended
Category number
Scope 3 sub-category
Status
31.12.25
GHG emissions
(t CO
2
e)
31.12.24
GHG emissions
(t CO
2
e)
31.12.23
GHG emissions
(t CO
2
e)
Category 1
Purchased goods and services
Reported
835,454
810,469
1,125,611
Category 2
Capital goods
Not separated from category 1
Category 3
Fuel- and energy-related activities
Reported
29,105
42,008
47,718
Category 4
Upstream transportation and distribution
Not separated from category 1
Category 5
Waste generated in operations
Reported
929
1,068
1,405
Category 6
Business travel
Reported
60,772
81,964
61,150
Category 7
Employee commuting
Reported
102,031
110,262
118,798
Category 8
Upstream leased assets
Reported
3
9,188
13,804
Category 9
Downstream transportation and distribution
Not separated from category 1
Category 10
Processing of sold products
Not reported
Category 11
Use of sold products
Not reported
Category 12
End-of-life treatment of sold products
Not reported
Category 13
2
Downstream leased assets
Reported
3
1,209
1,635
Category 14
Franchises
No franchises
Category 15
Investments
Refer to “Supporting our clients’ low-carbon transition” in this section of this Sustainability statement, for more
information about our financed emissions
1
availability. As a result of this revision our previously reported 2024, Fuel- and energy-related emissions increased from 41,895 t CO
2
e to 42,008 t CO
2
e.
2
such as vehicles owned by UBS but operated by third parties, are not included.
3
Annual Report 2025 |
Sustainability Statement | Environmental information 51
Managing the climate impact of our supply chain
To manage the climate impact of our supply chain, we have implemented a set of dedicated policies, guidelines and
frameworks, supported by targeted actions.
›
Refer to “Supporting our transition plan: key enablers” in this section of this Sustainability statement for an overview of relevant
policies, guidelines and frameworks
Our key actions to manage the climate impact of our supply chain
Increasing transparency and reporting of climate information by vendors
We are tracking the scope 1 and 2 emissions reporting of our GHG key vendors. Vendors with the largest emissions that
collectively account for more than 50% of our calculated supply chain vendor-related scope 3 emissions
1
“GHG key vendors”. On this basis, we identified 95 such vendors in 2025.
Overview of climate-related disclosures of our GHG key vendors (UBS Group)
2023
2024
2025
% of GHG key vendors who have disclosed their emissions and
declared a stated net-zero target
1
65% (62 / 95)
78% (74 / 95)
88% (84 / 95)
1
Shows GHG key vendors that disclosed emissions and declared a stated net-zero target as a % of total GHG key vendors. The number and percentage of key vendors achieving this metric are sourced from an external
environmental performance disclosures platform. We do not independently verify our vendors’ goals or progress toward them.
In 2025, beyond our GHG key vendors, 71% (304 of 426) of vendors voluntarily submitted environmental information
on an external environmental performance disclosure platform, a percentage that remains consistent with 2024 (70%,
or 341 of 487).
Tracking supply chain vendor-related scope 3 emissions
We continuously measure and monitor our vendor-related scope 3 emissions to track progress against the reduction
trajectory initiated in 2024, when emissions decreased by 28% year on year, primarily reflecting spend consolidation
following the integration of Credit Suisse. In 2025, we broadly maintained the strong performance achieved in the prior
year, with vendor-related scope 3 emissions amounting to 0.84
million
metric
tons
of
CO
2
e, compared with
0.81 million
metric
tons of
CO
2
e in 2024. The 3% increase observed in 2025 was driven mainly by higher relevant spend,
particularly in construction execution and IT services (e.g. cloud services), as well as a reduction in the availability of supplier-
specific emissions factors, leading to an increased use of more conservative standard industry parameters.
›
Refer to “Reducing our own climate impact“ in this section of this Sustainability statement for more information about our
greenhouse gas emissions reporting
Assessing and improving high-ESG-impact vendors’ practices
In line with our Responsible Supply Chain Management (RSCM) policy, we identify, assess and monitor vendor practices
across key ESG 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 assessed against our
RSCM policy and are required to provide disclosures about their management practices along with corresponding
evidence, which is then evaluated by a specialist team. We also undertake such assessments on some non-high-ESG-
impact vendors where we have significant ongoing relationships.
Actual and potential negative impacts considered in the assessment of vendor practices include, but are not limited to,
the following:
–
adverse environmental impacts due to inefficient use of resources (e.g. water and energy);
–
hazardous substances, emissions, pollutants and the limited recyclability of products that adversely affect people,
nature and the environment; and
–
modern slavery, forced labor, child labor, unfair employment practices and anti-corruption.
Should our assessment reveal any non-compliance with our policy, we define and agree, together with the vendor, on
vendor-specific improvement measures and closely monitor the implementation progress of these remediation actions. A
lack of improvement may lead to the termination of the vendor relationship. Vendors are reassessed after 24 months to
ensure that, even in long-term contracts, our expectations regarding environmental and social aspects are being met and
continuously supervised.
In 2025, we conducted 331 risk-based due diligence assessments on high-ESG-impact vendors covering newly sourced
contracts, renewals and ongoing contracts (compared with 445 in 2024). Of those assessed, 12% were considered in
need of improving their management practices (compared with 33% in 2024). For these vendors, we agreed on specific
remediation actions and are closely monitoring implementation progress to ensure timely and effective resolution.
In addition to RSCM assessments for new contracts and renewals, we also regularly screen active vendors as part of our
sustainability and climate risk control processes.
1
Annual Report 2025 |
Sustainability Statement | Environmental information 52
In 2025, none of our vendor relationships were terminated as a result of our assessments and no human rights issues
involving active, directly contracted vendors were identified or reported. In part, this was due to having carried out our
assessment process prior to signing contracts. We have also trained our supply chain function staff on human rights and
modern slavery.
Raising awareness of environmental matters through the sustainable procurement guide
In 2024, we launched a sustainable procurement guide, which we continued sharing with vendors throughout 2025 via
the UBS supplier webpage. 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 the Climate disclosure guideline for vendors and Sustainable procurement guide for vendors, available at
ubs.com/global/en/our-firm/suppliers/supply-chain
, for more information
Supporting our transition plan: key enablers
Beyond the individual actions related to supporting our clients’ low-carbon transition and reducing the climate impact of
our own operations and supply chain as described in the above sections, we have identified five key enablers, listed
below, to support the implementation of our climate transition plan.
Governance and accountabilities (1)
Sustainability and climate-related matters are governed at the highest levels of our organization, supported by a robust,
Group-wide governance framework. This structure ensures strategic oversight, accountability and effective execution
across all sustainability and transition-related initiatives.
In 2025, we marked a significant milestone with the evolution of our climate program into a broader sustainability and
transition program. This expanded scope now integrates nature and human rights topics, reflecting our commitment to
a more holistic approach to sustainability. The program is underpinned by more targeted mandates and specialized
working groups, enhancing its depth and operational effectiveness.
Importantly, the updated program is now more closely aligned with our Group sustainability and impact strategy,
reinforcing its three strategic pillars of protect, grow and attract.
›
Refer to the “Governance” section of this Sustainability statement for more information
Industry, government and public sector engagement (2)
We actively participate in political discussions by sharing our expertise on proposed regulatory and supervisory changes
and engaging in sustainability and climate-related exchanges through trade associations such as the International Institute
of Finance, the Association for Financial Markets in Europe and the Swiss Bankers Association.
In Switzerland, our home market, we participated in 2025, along with Swiss industry associations in the Swiss Federal
Council’s consultation on proposed amendments to the Ordinance on Climate Disclosures in light of recent international
developments. Our feedback emphasized the importance of aligning revisions with global standards and considering the
EU’s initiative to simplify its sustainability reporting framework to avoid fragmentation.
Regionally, we engage with policymakers across the EU, the Americas, the UK and key Asia-Pacific jurisdictions. Notably,
we participated in several industry association initiatives in the EU to support and inform the European Commission’s
simplification efforts aimed at reducing reporting and regulatory burdens under the Corporate Sustainability Reporting
Directive, the Taxonomy Regulation and the Corporate Sustainability Due Diligence Directive.
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 2025, we continued to coordinate the delivery of sustainability training and
awareness activities across UBS through a dedicated sustainability education workstream.
In 2025, relevant training on a Group-wide basis included:
–
a series of information sessions following the publication of the UBS Sustainability Report 2024 to raise awareness and
understanding of our own progress in relation to our environmental objectives;
–
climate- and nature-related training as part of our all-staff Global Learning Week, including webinars focused on
climate and nature fundamentals, greenwashing and impact investing sessions; and
–
roll-out of the Sustainability Fundamentals training across the firm, to strengthen foundational and advanced
knowledge on sustainability, including climate, nature, social impact, governance, and how we can support our clients.
We recognize that sustainability training and education are gaining importance and may receive greater regulatory
scrutiny over time. Keeping abreast with this changing landscape is essential to develop targeted training and ensure our
employees have the skills and knowledge needed to meet emerging expectations.
›
Refer to the “Social information” section of this Sustainability statement for more information about training and culture
Annual Report 2025 |
Sustainability Statement | Environmental information 53
Data management (4)
We have implemented a Group ESG data strategy to streamline access to ESG data across the organization, ensuring
consistency and alignment. Central to this approach is an enterprise data platform that consolidates third-party ESG data
into a single authoritative source, enabling all internal systems and users to draw from it.
We aim to facilitate the creation of standardized data products that incorporate Group-level methodologies where
needed. These products, governed by a data management framework, support external disclosures and other key
outputs. We also collaborate closely with ESG data vendors to align on internal requirements, enhance data quality and
integrate new transition-focused data sets and analytics. The data strategy is overseen by the ESG Data & Methodology
Forum, which has senior representatives from our business divisions and Group functions.
To enhance due diligence on ESG data, tools such as the updated 2025 data quality questionnaire have been rolled out,
which reflect best practices and regulatory standards. Additionally, we have developed advanced calculation tools to
measure financed and facilitated emissions, ensuring regulatory compliance and transparent reporting.
Our policies, guidelines and frameworks (5)
We have established a set of climate-related policies, guidelines and frameworks that underpin our climate transition plan
and guide decision-making across our organization. Our policies are embedded within our governance structures and
operational processes, and are regularly reviewed and updated to reflect evolving regulatory requirements, market
developments and advances in climate science. This approach promotes accountability and transparency across the
Group.
Overarching policies, guidelines and frameworks
Group sustainability and impact constitutional document
Our Group sustainability and impact constitutional document serves as our primary sustainability governance guideline.
It acts as a guide to understanding the principles and practices that drive our commitment to responsible and sustainable
business operations and describes how we govern and execute the UBS Group sustainability and impact strategy.
This document applies to UBS Group AG and all its directly controlled legal entities. It is reviewed annually under the
authority of the Group Chief Operating Officer. Together with the Code of Conduct and Ethics of UBS, it serves as the
Group’s environmental policy under the ISO 14001 standard.
›
Refer to “Business conduct and corporate culture” in the “Governance” section of this Sustainability statement for more
information about the Code of Conduct and Ethics of UBS
›
Refer to the UBS Group-wide sustainability and impact constitutional document and Code of Conduct and Ethics, available at
ubs.com/sustainability-reporting
UBS’s sustainability and climate risk policy framework
We define sustainability and climate risks as the risk that we negatively impact, or are impacted by, climate change,
natural capital, human rights and other ESG matters. Climate risks can arise from either changing climate conditions
(physical risks) or from efforts to mitigate climate change (transition risks).
We conduct an annual assessment of the proximity of our products, services and supply chain to sustainability and
climate-related risks. Activities identified as high risk are subject to our firm-wide sustainability and climate risk policy
framework. This framework enables us to identify and manage potential adverse impacts on climate, nature, the
environment and human rights, as well as the associated risks that may affect us and our clients.
The framework is embedded in our corporate culture and applied consistently across the Group, including all business
divisions, Group functions, locations and legal entities. It is integrated into our management practices and control
principles and is overseen by senior management.
Additionally, to support the firm’s sustainable finance strategy and mitigate potential greenwashing risk, UBS has
developed the Group-wide Sustainable finance and carbon and environmental market guidelines. These guidelines are
part of the overarching Group sustainability and climate risk policy and set minimum requirements when labeling,
marketing and distributing sustainable finance, green equity, and carbon and environmental markets instruments,
ensuring that sustainability claims made by UBS or its clients related to these instruments can be substantiated and
consistently communicated. They apply to all UBS employees globally involved in client-facing activities for these
instruments, as well as when UBS purchases carbon and environmental markets instruments for its own operations. The
guidelines are owned by the Sustainability and Climate Risk unit, which also monitors their implementation.
›
Refer to the Sustainability and climate risk policy framework, available at
ubs.com/sustainability-reporting
, for more information
Policies, guidelines and frameworks related to our financing and investing activities
Company Transition Assessment Scorecard
The Company Transition Assessment Scorecard (CTAS) is a rules-based, sector-agnostic assessment that informs our
understanding of counterparties’ transition-related risk profiles. We use the CTAS as one input among many in
individualized, risk-based assessments that are anchored in quantifiable risk drivers, expected loss and capital
considerations. The CTAS does not operate as an eligibility or exit screen, and we do not maintain blanket no-serve lists
for lawful industries. Decisions about onboarding, pricing and relationship management are based on documented,
customer-specific analyses and are subject to oversight designed to ensure consistency across similarly situated customers.
Annual Report 2025 |
Sustainability Statement | Environmental information 54
The UBS Green Funding Framework
The UBS Green Funding Framework sets out our Group-wide green funding program through which we can issue a
variety of green funding products , including bonds, derivatives, deposits and similar financial instruments. We maintain
assets that meet the environmental criteria defined in the framework at an amount equal to the proceeds of any green
funding issuance.
The framework aligns with international market practice and guidance and is designed to meet the core pillars of the
Green Bond Principles, the recognized voluntary guidelines published by the International Capital Markets Association. It
defines criteria and processes for the use of proceeds, asset evaluation and selection, management of proceeds and
related reporting, and thereby supports the management of risks associated with our green funding program.
Currently, eligible assets under the framework are mortgage loans financing Minergie-certified real estate in Switzerland,
or equivalent real estate certifications as determined by us. These assets are tracked and reviewed quarterly for ongoing
eligibility and availability.
We publish an annual Green Funding Investor Report that provides details on our green funding activities, eligible assets
and estimated environmental impact, including energy CO₂ emissions saving, along with the methodology used. We
solicit an annual independent third-party review of the eligible asset pool to confirm compliance with our criteria and
reporting commitments, with the results disclosed in each report.
The Green Funding Framework is owned by Group Treasury and governed by a Green Funding Forum comprised of
representatives from key business divisions and second line of defense functions.
Group Sustainable Investing Policy
The Group Sustainable Investing Policy sets minimum standards to ensure transparency in the classification of
sustainability-related investment products and services across the Group, as well as in corporate and financial disclosure.
It provides the foundation for substantiating and consistently communicating ESG or sustainability-related statements,
declarations, actions or communications to stakeholders. The purpose of this policy is to mitigate potential greenwashing,
reputational, legal / liability and regulatory risks arising from overstating the ESG or sustainability credentials of an
investment product or service.
The policy is owned by Group Sustainability and Impact, which also monitors its implementation. It applies to all UBS
employees globally involved in manufacturing, distributing, labelling, marketing or promoting investment products or
services positioned as sustainable investing and made available to clients. Business divisions own and implement their
respective divisional sustainable investing frameworks, and businesses owning the relevant products and activities must
adhere to this policy.
Asset Management policies, guidelines and frameworks
In addition to the broader Group-wide policies, guidelines and frameworks outlined in this section, our Asset
Management division has established its own specific policies, guidelines and frameworks.
›
Refer to “Supporting our clients’ low-carbon transition” in this section of this Sustainability statement for more information
Policies, guidelines and frameworks related to our own operations
Manual for our environmental and energy management systems
The Manual for our environmental and energy management systems defines the framework, processes, roles and
responsibilities for implementing, maintaining and continually improving our integrated management systems, designed
to meet the requirements of ISO 14001:2015 for environmental management and, where applicable, ISO 50001:2018
for energy management. The integrated management systems cover our own operations. Accountability for
implementing this manual rests with the Global Head Group Real Estate and Supply Chain.
The environmental management system, certified to ISO 14001:2015, applies globally across all owned and leased
operated buildings and associated corporate real estate and facility management services that support our business
activities. It focuses on areas of highest environmental impact including climate change and nature, sustainable
operations, energy and resource efficiency and regulatory compliance.
The energy management system, certified to ISO 50001:2018, applies to selected locations in Europe, where it supports
compliance with the EU Energy Efficiency Directive and national energy efficiency legislation. Within this scope, regular
energy audits are performed and efficiency measures implemented in line with ISO 50001:2018 requirements.
Both systems are annually externally audited and recertified every three years to verify that appropriate policies and
processes are in place and effectively implemented. The manual is reviewed and updated annually by subject matter
experts to reflect organizational and operational changes.
In developing and maintaining this manual, we consider the interests of key stakeholders, including employees, facility
users, regulators and certification bodies. To support effective implementation, we provide targeted training for
employees and other relevant stakeholders, ensuring they understand our management systems requirements and their
roles in applying them. The manual, related policies and procedures and training materials are made available to impacted
stakeholders and those responsible for implementation via our internal document management system and corporate
intranet, ensuring easy access, transparency and continuous learning opportunities.
Annual Report 2025 |
Sustainability Statement | Environmental information 55
UBS Business Travel & Expense Policy
The UBS Business Travel & Expense policy operationalizes our commitment to reducing unnecessary business travel and
the associated carbon footprint by encouraging employees to consider the environmental impact of their travel choices.
Key initiatives include avoiding short trips, planning flights efficiently and choosing sustainable transportation options,
such as public transport, rail travel, electric vehicles and eco-friendly accommodation.
The Global Head Group Real Estate and Supply Chain and the Global Operating Manager Group Real Estate and Supply
Chain are accountable for the implementation of this policy. It applies globally to all roles, business divisions, Group
functions, business units, business areas, legal entities and locations. The Global Travel and Expense Management
Function is responsible for the collection of travel and environmental impact data and provides reporting to management
to inform decision-making. Annual audits and business reviews consider the interests of key stakeholders to ensure the
policy remains relevant and aligned with sustainability objectives. The policy is made available to all affected stakeholders
and those responsible for implementation through the corporate intranet and the global travel booking platform,
ensuring transparency and ease of access.
Policies, guidelines and frameworks related to our supply chain
We manage our supply chain and procurement activities through a set of policies and guidelines that embed ESG
standards and promote transparency, accountability and sustainability across vendor relationships.
Accountability for these policies rests with the Global Head Group Real Estate and Supply Chain and the Head Supply
Chain. All relevant policies and supporting guidelines are available to vendors through the UBS supplier portal and
communicated during onboarding and engagement processes.
›
Refer to
ubs.com/global/en/our-firm/suppliers/supply-chain
, for an overview of our supply chain-related policies, guidelines and
frameworks
Responsible Supply Chain Management Framework, Policy and Guideline
Our Group-wide
Responsible Supply Chain Management (RSCM) Framework
activities. The framework is based on identifying, assessing and monitoring vendor practices in the areas of human and
labor rights, environment and nature, health and safety and anti-corruption. It applies to all vendors across business
divisions, Group functions, locations and legal entities and is supported by procedural controls.
Central to the framework is the RSCM Policy, to which our direct suppliers are bound by contract. It serves as a benchmark
for assessing sustainable practices of our suppliers and outlines our expectations across key areas.
The RSCM
Guideline outlines the implementation of the policy and sets out a risk-based due diligence approach to
evaluate potentially high-ESG-impact vendors. These vendors (defined as those providing goods and services with
potential substantial environmental or social impact) are identified during onboarding and contract renewals.
Global Procurement and Vendor Management Policy
This Global Procurement and Vendor Management Policy sets out the minimum requirements for official purchases and
the management of vendor relationships. It applies globally to all vendor-related purchases made by UBS.
It establishes mandatory requirements for the UBS vendor risk framework, which also applies globally. The policy also
defines key responsibilities for sourcing roles, such as vendor relationship manager, executive sponsor and vendor contract
manager, to ensure effective supplier management and compliance with risk controls.
By integrating robust risk management practices, the policy supports our commitment to responsible procurement and
promotes transparency and sustainability in vendor engagements.
Climate disclosure guideline for vendors
As part of our strategy to reduce greenhouse gas emissions across our operations and the supply chain, the Climate
disclosure guideline for vendors establishes climate-related disclosure expectations for all vendors, with enhanced
expectations for GHG key vendors
1
, who contribute to over 50% of our calculated scope 3 emissions.
1
Annual Report 2025 |
Sustainability Statement | Social information 56
Social information
People and culture make the difference
Strategy as it relates to people management
UBS AG’s organization regulations cover principles, organizational structures and control over subsidiaries, including
control over UBS AG, which is 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 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, all references are 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” (TBTF) regulatory
requirements;
1
subject to the same employment conditions and employment requirements.
Engagement with our employees
Employee engagement
Our employees want to have an impact and to help shape their daily experience. Therefore, they have opportunities
throughout the year to connect with leadership and share their views on strategic alignment, their work environment,
line manager effectiveness, culture and well-being. In 2025, initiatives such as our regular “Ask the GEB” and Group
CEO Townhall events supported two-way conversations on topics such as the firm’s strategy and direction. Our multi-
faceted employee listening strategy, including short pulse surveys, employee life cycle surveys and focus groups on topics
such as employee sentiment on artificial intelligence (AI), enabled us to gather insights from all business divisions. The
results of the Group-wide employee survey, conducted in September 2025, are compared against industry benchmarks
2
and reaffirm our commitment to remaining an employer of choice in the financial services sector.
Employee concerns and whistleblowing
There are many ways to raise concerns at UBS. If employees see or suspect any wrongdoing, they are encouraged to
speak up. Raising concerns with their line manager is the most common option; however, if they are 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 reviewed. Defined 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 the available reporting channels. Throughout the year, there are activities encouraging employees to speak
up, such as communications from the Group Executive Board, newsletters, whistleblowing campaigns and regular
employee surveys.
›
Refer to “Business conduct and corporate culture” in the “Governance” section of this Sustainability statement for more
information about the UBS whistleblowing process available to employees
1
resolution of such institutions in response to the financial crisis of 2007/2008. UBS restructured its business, reducing risky activities and focusing more on wealth management and less on investment banking.
2
Benchmarks provided by Ipsos Karian and Box as of the third quarter of 2025.
Annual Report 2025 |
Sustainability Statement | Social information 57
Workforce metrics
Characteristics of our workforce
1
As of 31 December 2025, the UBS Group had 103,177 employees as full-time equivalents (FTEs) (2024: 108,648) and
UBS AG consolidated had 61,899 (2024: 68,982) FTEs. FTE is measured as a percentage of the local standard hours /
days normally worked by permanent full-time staff. For the most accurate view of our global workforce, Human Resources
(HR) reporting considers one person (working full time or part time) as one headcount. As of the end of 2025, the UBS
Group had a total of 105,236 headcount (HC) (2024: 110,323 employees). UBS AG consolidated had 63,041 HC
(2024: 69,891 employees).
In addition, the UBS Group had a total of 16,412 (2024: 20,335) contractors, consultants and outsourcers employed at
the end of 2025. For UBS AG consolidated, it was a total of 6,845 (2024: 9,107) contractors, consultants and outsourcers.
The percentage of employees by geographical areas is summarized in the following tables.
Employees by region
UBS Group
31.12.25
31.12.24
%
%
Americas
23.0%
23.2%
APAC
24.5%
24.0%
EMEA
19.8%
20.4%
Switzerland
32.7%
32.4%
Total
100%
100%
Employees by region
UBS AG consolidated
31.12.25
31.12.24
%
%
Americas
38.5%
36.7%
APAC
16.4%
16.1%
EMEA
12.1%
11.9%
Switzerland
33.0%
35.3%
Total
100%
100%
1
Center
subsidiaries. For UBS AG consolidated, all quantitative headcount-related disclosures include all UBS employees except the employees in the Ausbildungszentrum Schloss Wolfsberg AG, Fides and Card
Center subsidiaries.
Annual Report 2025 |
Sustainability Statement | Social information 58
Employee representation
UBS respects and complies with all EU, national and local labor laws. As part of the people transition following the
integration of Credit Suisse, the UBS European Employee Forum, which operates under a formal agreement, now
represents employees in the countries in the EU where the UBS Group has a presence. It generally meets monthly and
considers topics related to our performance and operations. Local employee representative bodies discuss topics such as
workplace conditions, benefits and reorganizations. Collectively, these groups represent 51.8% (2024: 52.0%) of the
global workforce of the UBS Group and 44.0% (2024: 46.1%) of that of UBS AG consolidated. UBS does not have a
presence in any country within the European Economic Area that 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.
Workforce inclusion
We are committed to being an 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. We 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, our global workforce has 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 are 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.
Our governance framework enables leaders and employees to deliver the strategy and play a part in delivering an inclusive
environment. We leverage communications channels, workplace forums and councils and engagement plans to drive
awareness and accountability.
This 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. In 2025, we strengthened disability inclusion by embedding
a dedicated social media strategy and an accommodation request form into our recruitment processes, introducing
additional resources such as our guide to accommodation conversations and company-wide digital accessibility e-
learning, and expanding our employee ability network membership support of employees with disabilities and allies. We
also conducted an external vendor-led assessment of our branches and offices to evaluate physical accessibility. These
efforts led to our first-time recognition as a top scorer in the 2025 Best Place to Work for Disability Inclusion by the
Disability Index
®
.
Fair and equitable pay
We pay for performance and we take pay equity seriously. Across all our locations, we apply the same fair pay standards,
reinforced by annual reviews of our approach and policies in line with established equal pay methodologies. In 2025, our
statistical pay gap analyses reaffirmed that pay differences between male and female employees in similar roles across
our core financial hubs remained below 1%, a difference consistent with that for 2024. 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 latest review showed that all employees’
salaries were at or above the respective benchmarks.
›
Refer to the UBS Compensation Report 2025, available at
ubs.com/annualreporting,
for more information
Talent management and development
Our Group-wide talent offering is supplemented by programs in the business divisions, functions and regions. Their aim
is to create a culture of cross-divisional and international mobility, developing versatile leaders at all levels of the
organization. Central to this approach is an annual talent and succession review to identify future leaders, ensure business
continuity and proactively manage employee development. Our leadership development framework ensures we address
their unique needs. Flagship initiatives, such as the Regional Leadership Forum, the AI Senior Leadership Journey and the
AI for Leaders series, foster innovation and prepare leaders to thrive in an AI-enabled world.
Internal training is delivered via our UBS University platform. Our offering includes client advisor certification and
regulatory, business and line manager training, along with modules on culture, sustainable finance, AI, data literacy,
language learning, well-being and other topics. In 2025, we expanded AI learning for all employees with interactive and
self-guided modules to support the responsible and effective use of AI. In addition, our partnership with a leading external
provider continued to offer employees access to thousands of additional learning opportunities.
All employees are required to meet initial and ongoing training and competency requirements appropriate to the activities
they undertake on the firm’s behalf. We may also require employees to complete mandatory or business-required training,
including risk-management-related training, in line with our mandatory learning policy.
Annual Report 2025 |
Sustainability Statement | Social information 59
Performance management
Our performance management approach reflects our strategy and supports our high-performance culture. Performance
and behavior objectives help the firm assess both what an employee accomplishes and how our Behaviors (accountability
with integrity, collaboration and innovation) are demonstrated. Regular check-ins, along with an embedded feedback
tool, enable employees to give and receive real-time feedback throughout the year, supporting continuous improvement.
Although each line manager retains the decision and ownership of the performance review, they are supported by AI-
enabled tools, including a summarization of the employee’s feedback, to support more holistic and complete evaluations.
Employee support, including benefits and work-life balance
We are committed to being a responsible employer. 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 specialized e-learning curriculums and toolkits 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 2025, employees across the firm participated in global well-being sessions, mental health initiatives, volunteering
activities and financial education events. We also made progress with our #WorkingWithCancer commitment by
supporting a “time off for screening” initiative that helps ensure our employees have the flexibility and support they need
to plan health checkups and screenings.
All our employees have access to competitive benefits, such as health care, 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. Additionally, parental leave is available to all employees, as
indicated in local HR policies. Benefits are aligned with local markets and often exceed legal requirements. 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 professional
reorientation 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 them prepare for this transition.
Annual Report 2025 |
Sustainability Statement | Social information 60
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
(clients, employees and vendors), as well as society at large.
›
Refer to “Our Stakeholder engagement” in the “General information” section of this Sustainability Statement for more
information about our interactions with stakeholders, including civil society groups
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 and climate risk
policy framework (including human rights). Our clients also have access to solutions that help them to realize their
philanthropy goals, including those related to human rights.
›
Refer to the “Strategy” section in this Sustainability statement for more details 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
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 the “Social information” section in this Sustainability statement for more information about UBS’s human resources
policies and principles
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 Responsible Supply Chain Management Policy including the UBS Supplier Code of Conduct for more details about our
responsible supply chain management and assessments, 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 Human Rights Statement 2026, available at
ubs.com/sustainability-reporting,
for more information
›
Refer to the Modern Slavery and Human Trafficking Statement 2026, which will be available as of 30 June 2026 at
ubs.com/sustainability-reporting
, for more information
Annual Report 2025 |
Sustainability Statement | Managing sustainability and climate risk 61
Managing sustainability and climate risks
Introduction
Managing sustainability and climate risks is a key component of our corporate responsibility. We define these risks as the
risks that UBS negatively impacts, or is impacted by, climate change, nature, human rights and other environmental and
social matters. Such risks may materialize as credit, market, liquidity, business or non-financial risks for UBS, potentially
leading to adverse financial, liability or reputational impacts.
Sustainability and climate risk management framework
Our firm-wide sustainability and climate risk management framework, supported by dedicated policies, standards and
guidelines, forms the basis of our approach to identifying, assessing and managing environmental and social risks. It
enables us to address potential adverse impacts on the climate, the environment and human rights, while also managing
related risks that may affect UBS and our clients, and supporting the transition to a low-carbon economy.
Overseen by senior management, the framework is applied across client onboarding, transaction due diligence, product
development, our own operations and our supply chain. It is a continuous process, consisting of four phases described
in the following sections: (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
›
Refer to “Our investment management approach to sustainability and climate risks” in this section of this Sustainability statement
for a description of our sustainability and climate risk investment approach
Governance and strategic oversight
Group Risk Control is responsible for our firm-wide sustainability and climate risk framework and for managing financial
exposure to these risks as a second line of defense. Group Compliance and Operational Risk Control provides independent
oversight of our non-financial risk control environment, ensuring its adequacy and effectiveness. We manage
sustainability and climate risks through a dedicated risk management framework, which continues to evolve and is
focused on meeting emerging regulatory requirements and enhancing core processes, such as reporting and disclosures.
The Group Chief Risk Officer is responsible for the development of the sustainability and climate risk framework, including
the definition of risk appetite and its integration into existing Group-wide risk management frameworks. The Head of
Sustainability and Climate Risk supports the Group Executive Board by providing leadership on sustainability in
collaboration with the business divisions and Group functions. Oversight of our sustainability and climate risk efforts is
conducted jointly by the Risk Committee and the Corporate Culture and Responsibility Committee of the Board of
Directors. These bodies monitor the progress of our efforts to address sustainability and climate risks.
›
Refer to the “Governance” section of this Sustainability statement for further details on sustainability governance at UBS
Annual Report 2025 |
Sustainability Statement | Managing sustainability and climate risk 62
Risk identification and measurement
Sustainability and climate risks are identified at divisional and cross-divisional levels. Our climate-related risk identification
methodologies and materiality assessment collectively define key focus areas and risk drivers. The insights gained
contribute to our overall sustainability and climate risk strategy by:
–
identifying concentrations of climate-sensitive exposure, which may increase vulnerability to financial and non-financial
risks, thereby guiding resource prioritization for enhanced risk quantification and management; and
–
enabling us to assist clients with their low-carbon transition and identify those who may benefit from our sustainability-
focused products and services.
The outcomes of this process guide senior management decision-making and provide stakeholders with valuable insights
through our external disclosures.
Our approach to climate-related risk identification
Our methodologies are designed to assess how susceptible clients and assets are to climate risks, focusing on the potential
financial impacts that could arise from policy changes, technological shifts, market evolution in the context of transition
risk and climate-related hazard events in the context of physical risk. These assessments evaluate the magnitude of
climate-related risk drivers affecting a counterparty or asset class, helping us determine how such risks may influence
creditworthiness, collateral values and broader portfolio exposure.
1
For corporate clients, when counterparty-level information is available and of sufficient quality, a bottom-up methodology
is used. The methodology includes the counterparty’s measures and actions in place to mitigate transition risks
summarized through UBS’s internal Company Transition Assessment Scorecard and the exposure of their assets to physical
hazards. When counterparty-level information is not available, a top-down methodology is used for transition and
physical risks based on both the country of risk domicile and the internal UBS industry classification (Group Industry Code
2).
For Lombard lending, an overall portfolio rating is assigned based on the average riskiness of the collaterals that are
posted securing the loans. In 2025, UBS developed a global real estate (GRE) model to provide a counterparty-level rating
across transition and physical risks in the real estate portfolio. Together, these methodologies enable UBS to assess how
transition and physical risks may influence the risk profiles of clients and provide a consolidated view of the UBS Group
exposure to climate-related risks.
Transition risk
Climate-driven transition risks arise from the transition to a sustainable economy, in particular its decarbonization, for
example due to changes in policy, case law, technology or in the behavior of market participants. This may contribute to
a structural change across economies and consequently affect banks and the stability of the wider financial sector. The
climate-driven transition risk profile chart shows that, in 2025, the key sectors contributing to the UBS Group’s transition-
risk-sensitive exposure continued to be real estate, industrials and transportation, unchanged from 2024.
Physical risk
Climate-driven physical risks arise from acute hazards, which are increasing in severity and frequency, and chronic risks,
which 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 wider financial sector.
The climate-driven physical risk profile chart shows that, in 2025, Switzerland and the Americas were the largest
contributors to the UBS Group’s physical-risk-sensitive exposure, with both regions demonstrating relatively high adaptive
capacity to manage physical risk hazards, resulting in a moderately low overall physical risk rating. Countries are grouped
into regions according to the UBS Country and Region Data Standard.
›
Refer to the Basis of preparation 2025, available at
ubs.com/sustainability-reporting
, for details about methodologies
1
develop our risk identification and measurement approaches.
Annual Report 2025 |
Sustainability Statement | Managing sustainability and climate risk 63
High 50.97 (6.49%)
Real estate
45.72
Utilities
1.44
Fossil fuels
0.28
Private clients with mortgages
39.72
Power production: regulated & high-carbon
fuels
1.44
Wholesale & trading: refined petroleum products
0.17
Real estate financing
6.00
Sovereigns
0.32
Refining and marketing
0.10
Industrials
2.74
Government agencies
0.30
Agriculture
0.11
Chemicals
2.13
Sovereigns
0.02
Food and beverage production
0.10
Machinery and related parts manufacturing
0.32
Services and Technology
0.31
Livestock – beef extensive grazing
0.02
Cement or concrete manufacture
0.29
Business services
0.31
Transportation
0.04
Electronics manufacture
0.01
Land-based shipping high-carbon (trucks)
0.04
Moderately high 69.58 (8.86%)
Real estate
32.20
Transportation (cont.)
Services and technology
1.29
Private clients with mortgages
19.96
Land-based shipping high-carbon (trucks)
1.03
Business services
1.26
Development and management of real estate
6.66
Airlines – commercial
0.87
Media, information technology
0.02
Real estate financing
5.57
Automobile manufacture (high-carbon fuels)
0.10
Fossil fuels
1.27
Industrials
13.64
Transit systems
0.05
Wholesale & trading: crude oil and natural gas
1.02
Machinery and related parts manufacturing
6.34
Metals and mining
3.87
Conventional oil (on- / off-shore)
0.14
Pharmaceuticals
3.00
Mining conglomerates (incl. trading)
3.04
Integrated oil and gas
0.07
Plastics and petrochemicals manufacture
2.02
Production of other mined metals and raw
materials
0.57
Gas processing (including LNG)
0.05
Consumer durables manufacturing
1.60
Production of steel and iron
0.27
Utilities
0.53
Chemicals
0.60
Agriculture
2.22
Power production: regulated & high-carbon fuels
0.36
Other consumer goods manufacturing
0.07
Food and beverage production
2.22
Waste water treatment
0.17
Clothing manufacture
0.02
Financial services
1.63
Sovereigns
0.16
Transportation
12.76
Banks
1.17
Sovereigns
0.16
Sea-based shipping (high-carbon fuels)
7.35
Other financial services
0.20
Airlines – cargo
2.00
Asset managers and asset owners
0.19
Transportation parts and equipment supply
1.36
Brokers and other intermediaries
0.07
Moderate 72.34 (9.21%)
Real estate
39.69
Fossil fuels
5.69
Utilities
1.49
Private clients with mortgages
29.82
Wholesale & trading: refined petroleum
products
5.32
Waste disposal and recycling
0.59
Real estate financing
7.08
Transportation and storage (gas)
0.19
Power production: regulated & high-carbon fuels
0.49
Construction – non-infrastructure
2.68
Downstream oil and gas distribution
0.17
Grid operation and transmission
0.27
Development and management of real estate
0.07
Wholesale & trading: crude oil and natural gas
0.01
Wholesale & trading: electricity and power
0.13
Construction of buildings and related activities
0.04
Agriculture
4.30
Metals and mining
0.56
Services and technology
9.00
Food and beverage wholesale / retail
2.92
Metal or mining not elsewhere classified
0.45
Media, information technology
8.59
Food and beverage production
1.14
Production of steel and iron
0.07
Business services
0.25
Crops – high emissions intensity
0.14
Production of other mined metals and raw
materials
0.04
Entertainment, leisure, retail not elsewhere
classified
0.11
Other agricultural services
0.07
Financial services
0.27
Education
0.05
Livestock – other
0.02
Asset managers and asset owners
0.15
Industrials
8.76
Transportation
2.43
Banks
0.11
Electronics manufacture
4.07
Passenger ships
1.71
Sovereigns
0.16
Other consumer goods manufacturing
1.51
Airlines – cargo
0.38
Government agencies
0.11
Clothing manufacture
1.46
Sea-based shipping (high-carbon fuels)
0.16
Sovereigns
0.05
Aerospace and defence activities
1.19
Automobile manufacture (high-carbon fuels)
0.10
Pharmaceuticals
0.26
Airlines – commercial
0.08
Machinery and related parts manufacturing
0.14
Plastics and petrochemicals manufacture
0.13
1
loss) and is based on consolidated information reported under IFRS Accounting Standards (inclusive of purchase price allocation adjustments recorded in the UBS Group as a result of the acquisition of
the Credit Suisse Group in compliance with IFRS 3, Business Combinations).
2
are defined as those business activities that are rated as high, moderately high or moderate, whereas those that are rated as having moderately low and low vulnerability are rated as “non-sensitive”.
The exposures that are not assessed due to lack of methodology and / or data are categorized as “not classified”.
Annual Report 2025 |
Sustainability Statement | Managing sustainability and climate risk 64
Switzerland
6
Americas
EMEA
Asia Pacific
Sensitive
53.05
Sensitive
43.07
Sensitive
3.03
Sensitive
1.95
Private clients with mortgages
19.20
Financial services
20.77
Services and technology
0.81
Financial services
0.85
Real estate financing
12.61
Services and technology
11.83
Industrials
0.66
Metals and mining
0.33
Services and technology
8.12
Industrials
4.79
Private clients with mortgages
0.48
Services and technology
0.22
Others
13.11
Others
5.68
Others
1.08
Others
0.55
Non-sensitive
376.55
Non-sensitive
161.12
Non-sensitive
89.53
Non-sensitive
37.36
Not classified
7.51
Not classified
1.00
Not classified
1.03
Not classified
0.31
1
allocation adjustments recorded in the UBS Group as a result of the acquisition of the Credit Suisse Group in compliance with IFRS 3, Business Combinations).
2
that are rated as high, moderately high or moderate, whereas those that are rated as having moderately low and low vulnerability are rated as “non-sensitive”. The exposures that are not assessed due to lack of methodology and / or data are categorized as “not classified”.
3
risk rating across all regions is “moderately low”. The world map therefore reflects the moderately low color scale as in the total exposure chart.
4
Countries are grouped into regions according to the UBS Country and Region Data Standard.
5
region. This includes exposure to countries that cannot be mapped, global funds, multi-lateral institutions, and ship and aircraft financing.
6
Annual Report 2025 |
Sustainability Statement | Managing sustainability and climate risk 65
Climate scenario analysis and stress testing
We apply scenario-based approaches to assess our exposure to transition and physical risks arising from climate change.
We have introduced several in-house assessments leveraging industry collaborations to tailor approaches for addressing
methodological and data challenges. We employ dedicated climate risk models that are designed to capture both
systematic and idiosyncratic effects to perform stress-testing exercises across short-, medium- and long-term horizons.
The work performed includes regulatory scenario analysis and stress-testing exercises. These include, for example, the
Bank of England 2021 Climate Biennial Exploratory Scenario, the 2022 European Central Bank climate risk stress test
(which assesses banks’ preparedness for dealing with financial and economic shocks stemming from climate risk) and the
2024 Swiss Financial Market Supervisory Authority (FINMA) and Swiss National Bank climate scenario analysis exercise.
These exercises facilitated the identification of financial risks from climate change. They also made it possible for UBS to
assess management actions in response to different scenario results and perform a counterparty-level analysis. Although
the results indicated mild losses and low exposure for the entities and portfolios in scope, they provided valuable insights
to strengthen UBS’s climate risk scenario analysis and stress testing.
In 2025, we further refined and expanded our internal climate risk scenarios and enhanced the dedicated climate risk
methodologies. Furthermore, we conducted a Group-wide climate scenario analysis to guide the materiality assessment
of climate-related risks, meeting the FINMA Circular 2026/1 “Nature-related financial risks” (published by FINMA in
December 2024) requirements on nature-related financial risks. A range of climate scenarios in line with UBS’s business
model were used, including a stress scenario, under which the lack of coordinated mitigation efforts places the planet on
a 3°C-warming trajectory by 2100.
Over the last few years, we have also leveraged industry-wide initiatives, such as the Paris Agreement Capital Transition
Assessment exercise launched by the Swiss Federal Office for the Environment 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.
Materiality of climate-related risks across risk categories
UBS conducts a financial risk materiality assessment of climate-related risk drivers, complementing its regular risk
identification processes described above. This climate-related materiality assessment evaluates how transition and physical
risk drivers may affect UBS’s risk categories: credit, market, liquidity, business and non-financial risks.
In 2025, the materiality assessment for climate risks was enhanced and performed based on a combination of qualitative
and quantitative inputs (including climate scenario analysis and exposures to climate-sensitive sectors), from both an
inherent and residual perspective. Inherent risk refers to the level of risk that exists in the absence of any climate-related
controls or mitigation actions, whereas residual risk refers to the level of risk after taking them into account.
Materiality was assessed across the short (one year), medium (two to five years) and long term (more than five years) to
capture the dynamic nature of climate risk exposure.
The table below summarizes whether transition and physical risks are considered material or not material on an inherent
basis, for each risk category and time horizon under a stress case scenario.
Overview of inherent material risks under stress case scenarios
Risk type
Time horizon
Credit
Market
1
Liquidity
2
Business
3
Non-financial risk
Physical risk
Short-term
Not material
Not material
Not material
Not material
Not material
Medium-term
Not material
Not material
Not material
Long-term
Material
Not material
Transition risk
Short-term
Material
Not material
Material
Material
Not material
Medium-term
Material
Material
Material
Long-term
Material
Material
1
The trading book is assessed using a short-term stress scenario time horizon due to the dynamic risk profile and high liquidity of trading book instruments, which make them sensitive to short-term shocks rather
than long-term climate transition. The banking book scenario time horizon is aligned with the liquidity portfolio (high-quality liquid assets) and existing internal liquidity adequacy assessment process (ILAAP) stress
tests, which operate on a one-year horizon. This alignment ensures consistency with regulatory expectations and reflects the relatively stable nature of banking book exposures. Therefore, market risk has not been
assessed in the medium and long terms.
2
which is considered long-term for liquidity purposes and is in alignment with the time horizon of the funding regulatory metric, the net stable funding ratio (one year). Therefore, liquidity risk has not been assessed
in the medium and long terms.
3
Inherent credit risk is assessed as material under stress-case scenarios, primarily due to the expected long-term impacts
of chronic physical hazards on macroeconomic developments in the real estate sector (physical risk) and also due to
regulatory uncertainty, which may require significant investments and impact credit quality for the real estate sector and
for corporate lending exposures to sectors deemed climate-sensitive (transition risk).
Annual Report 2025 |
Sustainability Statement | Managing sustainability and climate risk 66
Inherent liquidity risk is assessed as material under stress-case scenarios, reflecting potential for abrupt shifts in regulatory
conditions, resulting in economic disruptions that could trigger significant outflows, elevated funding costs or impaired
access to capital markets (transition risk).
Inherent business risk is assessed as material under stress-case scenarios, considering the potential financial impacts of a
sudden and disorderly climate transition resulting in economic disruptions, which could reduce the value of assets and
recurring fee income, and increased market uncertainty, which could lower deal flow and transaction-based fees
(transition risk).
All material financial risks are primarily driven by indirect climate impacts, such as macroeconomic impacts from climate
change, as opposed to direct climate impacts on counterparties or assets.
Inherent non-financial risk is assessed as material under stress-case scenarios, due to ongoing regulatory scrutiny and the
evolving legal landscape around climate and sustainability requirements and disclosures, which can expose UBS to
litigation risk, regulatory penalties and reputational damage in the event of non-compliance or perceived greenwashing
(transition risk).
Across all risk types, climate-related risks are assessed as not material on a residual basis (after considering our standard
climate-related controls / mitigation actions), with the exception of non-financial risk in the long term. The latter risk
remains material even after mitigating controls are taken into account, due to persistent political uncertainty and
diverging regulatory requirements across jurisdictions, which lead to heightened legal and litigation risks (transition risk).
Material risks were fed into the regular risk identification process, and a climate root cause driver was added, where
relevant.
Annual Report 2025 |
Sustainability Statement | Managing sustainability and climate risk 67
Monitoring and risk appetite setting
UBS has established a qualitative (e.g. exclusion of controversial activities) and quantitative (e.g. decarbonization targets)
risk appetite, which is subject to periodic monitoring and enhancements. The risk appetite guides decision-making and
supports proactive management of exposures to climate-sensitive sectors.
The climate-related risk metrics below help us monitor our exposure to key transition and physical risk drivers across
portfolios, highlighting where climate-related vulnerabilities may influence our overall risk profile. UBS will continue to
develop these metrics, ensuring alignment with regulatory expectations and industry-leading practices.
›
Refer to the Sustainability and climate risk policy framework, available at
ubs.com/sustainability-reporting
, for more details on
sustainability and climate risk standards, decarbonization control framework and assessments
Climate-related risk metrics
The table below includes climate-related risk metrics for the UBS Group, UBS AG on a standalone basis, UBS Switzerland
AG on a standalone basis and UBS Europe SE on a standalone basis. In 2025, UBS developed the global real estate (GRE)
model, enabling asset-level sensitivity assessments for real estate financing and the private clients with mortgages
portfolio, impacting both transition- and physical-risk-sensitive exposures.
Climate-driven transition-risk-sensitive exposure accounted for 24.6% of the UBS Group’s total gross lending exposure,
up from 21.0% based on the revised
1
UBS’s Swiss residential and commercial real estate decarbonization targets to identify properties that rely on fossil fuel
heating systems and are not progressing in line with UBS’s decarbonization pathway as sensitive. Climate-driven physical-
risk-sensitive exposure accounted for 13.8% of the UBS Group’s total gross lending exposure, up from 12.8% based on
the revised
1
assessing building-level exposures to a physical risk hazard. Carbon-related assets accounted for 9.7% of the UBS Group’s
total gross lending exposure, down from 10.9% in 2024. However, on an absolute basis, carbon-related assets remained
largely flat year on year.
Risk management – Climate-related metrics
For the year ended
31.12.25
31.12.24
Climate-related metrics (USD bn)
Total exposure to climate-sensitive sectors, transition risk UBS Group AG consolidated
1,2
192.9
147.5
Climate-sensitive sectors, transition risk, proportion of total gross lending exposure, UBS Group AG consolidated (%)
1,2
24.6
21.0
Total exposure to climate-sensitive sectors, transition risk UBS AG (standalone)
1,2
31.6
36.2
Total exposure to climate-sensitive sectors, transition risk UBS Switzerland AG (standalone)
1,2
154.5
103.5
Total exposure to climate-sensitive sectors, transition risk UBS Europe SE (standalone)
1,2
0.0
0.0
Exposure to climate-sensitive sectors, transition risk: Traded products, UBS Group AG consolidated
3
1.4
2.1
Exposure to climate-sensitive sectors, transition risk: Issuer risk, UBS Group AG consolidated
4
8.8
6.8
Total exposure to climate-sensitive sectors, physical risk: UBS Group AG consolidated
1,2,5
108.5
89.6
Climate-sensitive sectors, physical risk, proportion of total gross lending exposure, UBS Group AG consolidated gross (%)
1,2
13.8
12.8
Total exposure to climate-sensitive sectors, physical risk UBS AG (standalone)
1,2,5
64.4
65.0
Total exposure to climate-sensitive sectors, physical risk UBS Switzerland AG (standalone)
1,2
56.9
43.5
Total exposure to climate-sensitive sectors, physical risk UBS Europe SE (standalone)
1,2
0.0
0.0
Exposure to climate-sensitive sectors, physical risk: Traded products, UBS Group AG consolidated
3
2.9
3.3
Exposure to climate-sensitive sectors, physical risk: Issuer risk, UBS Group AG consolidated
4
14.4
12.6
Carbon-related assets: UBS Group AG consolidated
1,6
76.1
76.5
Carbon-related assets proportion of total gross lending exposure, UBS Group AG consolidated gross (%)
1,6
9.7
10.9
Carbon-related assets: UBS AG (standalone)
1,6
26.2
30.3
Carbon-related assets: UBS Switzerland AG (standalone)
1,6
51.6
46.6
Carbon-related assets: UBS Europe SE (standalone)
1,6
0.0
0.0
1
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 and standalone information reported under IFRS Accounting Standards (inclusive of purchase price allocation adjustments recorded in UBS as a result of the acquisition of the Credit Suisse
Group in compliance with IFRS 3, Business Combinations).
2
Comparative figures have been revised following the development of the global real estate model. The revision applies to the exposure booked on the
UBS platform only and not to the exposure on the legacy Credit Suisse platform. Consequently, the previously reported transition risk exposure has been revised as follows: UBS Group AG (consolidated) to USD 147.5bn
from USD
120.3bn; UBS AG (standalone) to USD 36.2bn from USD 36.6bn; UBS Switzerland AG (standalone) to USD 103.5bn from USD 83bn; and UBS Europe SE (standalone) remained unchanged following the
revision. The transition risk proportion of total gross lending exposure, UBS Group AG consolidated (%) was revised to 21% from 17.1%. In addition, the previously reported physical risk exposure has been revised
as follows: UBS Group AG (consolidated) to USD 89.6bn from USD 68.9bn; UBS AG (standalone) to USD 65.0bn from USD 65.7bn; UBS Switzerland AG (standalone) to USD 43.5bn from USD 22.6bn; and UBS Europe
SE (standalone) to USD 28.3m from USD 24.3m. The physical risk proportion of total gross lending exposure, UBS Group AG consolidated gross (%) was revised to 12.8% from 9.8%.
3
metric is calculated using over-the-counter derivatives, exchange-traded derivatives and securities financing transactions, consisting of securities borrowing and lending, and repurchase and reverse repurchase
agreements.
4
5
(standalone) includes loans and advances to UBS subsidiaries that are classified as sensitive based on its sector and country of risk in the absence of asset-level data. These subsidiaries transact with third parties and
the sensitivity of that exposure facing external counterparties is assessed and included in the banking products, traded products or issuer risk exposure metrics in the UBS Group disclosure.
6
Carbon-related assets
are defined as concentrations of credit exposure to assets tied to the four non-financial sector groups as defined by the Task Force on Climate-related Financial Disclosures (the TCFD), using the Global Industry
Classification Standard. These four groups are: (i) energy; (ii) transportation; (iii) materials and buildings; and (iv) agriculture, food and forest products. This metric is agnostic of risk rating.
›
Refer to the Basis of preparation 2025, available at
ubs.com/sustainability-reporting
, for more information on the metrics’
definitions, approaches and scope
1
Annual Report 2025 |
Sustainability Statement | Managing sustainability and climate risk 68
The table below presents a view of the UBS Group risk profile and changes year on year across sectors and sub-sectors
for both transition and physical risks. It shows our total exposure to each sector and the trend compared with 2024. For
both transition and physical risk, the exposure weighted average risk ratings, the year-on-year exposure weighted average
trends and the climate-sensitive exposure in 2025 and 2024 are presented. Overall, the UBS Group continues to have an
average rating of moderate for transition risk and moderately low for physical risk.
Risk exposures by sector for UBS Group
1,2
Transition risk
Physical risk
Sector / Sub-sector
2025
exposure
(USD bn)
YoY
exposure
trend
3
Weighted average
risk rating 2025
4
YoY
weighted
average risk
trend
3
2025
climate-
sensitive
exposure
(USD bn)
2024
climate-
sensitive
exposure
(USD bn)
5
Weighted average
risk rating 2025
4
YoY
weighted
average risk
trend
3
2025
climate-
sensitive
exposure
(USD bn)
2024
climate-
sensitive
exposure
(USD bn)
5
Agriculture
Agriculture, fishing and forestry
0.45
↓
Moderate
↑
0.25
0.42
Moderately Low
↓
0.13
0.54
Food and beverage
7.00
↑
Moderately High
↓
6.38
6.51
Moderately Low
→
3.63
3.93
Financial services
Financial services
93.59
↑
Moderately Low
→
1.89
0.03
Moderately Low
→
22.09
18.85
Fossil fuels
Downstream refining, distribution
0.32
↓
Moderately High
↑
0.32
0.54
Moderately Low
↓
0.08
0.26
Integrated oil and gas
0.07
↓
Moderately High
↑
0.07
0.32
Moderately Low
↑
0.00
0.00
Midstream transport, storage
0.19
↑
Moderate
→
0.19
0.10
Moderate
→
0.19
0.10
Trading fossil fuels
6.53
→
Moderately High
→
6.53
6.72
Moderately Low
→
0.58
0.73
Upstream extraction
0.14
↓
Moderately High
→
0.14
0.24
Moderately Low
↑
0.01
0.02
Industrials
Cement or concrete manufacture
0.29
↑
High
→
0.29
0.24
Moderately Low
→
0.04
0.03
Chemicals manufacture
2.73
↓
High
→
2.73
3.80
Moderately Low
↓
0.56
1.27
Electronics manufacture
4.56
↓
Moderate
→
4.08
4.48
Moderately Low
↑
1.14
1.47
Goods and apparel manufacture
4.74
↓
Moderately High
→
4.65
5.11
Moderately Low
→
2.86
2.94
Machinery manufacturing
8.06
→
Moderately High
→
7.99
8.02
Moderately Low
→
1.08
1.21
Pharmaceuticals manufacture
3.59
→
Moderately High
↓
3.26
3.64
Moderately Low
→
0.99
1.06
Plastics and petrochemicals manufacture
2.19
↑
Moderately High
→
2.14
1.81
Moderately Low
↑
0.92
0.69
Metals and mining
Mining conglomerates (incl. trading)
3.04
↑
Moderately High
→
3.04
2.83
Moderately Low
→
0.12
0.07
Mining and quarrying
0.98
↓
Moderate
↓
0.45
0.66
Moderately Low
↓
0.40
0.59
Production of metals
1.01
↑
Moderately High
↓
0.94
0.87
Moderately Low
↓
0.25
0.39
Private clients
Lombard
6
173.59
↑
Moderately Low
→
0.00
0.00
Moderately low
→
0.00
0.00
Real estate
Development and management
12.34
↑
Moderately High
↓
9.45
11.04
Moderately low
→
0.43
0.68
Real estate financing
93.00
↑
Moderate
↑
18.65
10.40
Moderately low
↑
12.91
9.89
Private clients with mortgages
292.27
↑
Moderate
↑
89.50
53.17
Moderately Low
→
20.85
13.24
Services and technology
↓
Services and technology
38.00
↑
Moderate
↑
10.60
9.31
Moderately Low
→
20.94
18.85
Sovereigns
Sovereigns
2.53
↓
Moderately Low
↓
0.65
0.34
Moderately low
→
0.07
0.04
Transportation
Air transport
3.41
↑
Moderately High
→
3.33
2.84
Moderate
→
2.89
2.50
Automotive
1.31
↑
Moderate
→
0.20
0.23
Moderate
→
1.21
1.08
Rail freight
1.13
↑
Low
→
0.00
0.00
Moderate
→
1.04
0.77
Road freight
1.19
↓
Moderately High
→
1.07
1.32
Moderately Low
→
0.56
0.64
Transit
0.60
↑
Moderate
↑
0.05
0.00
Moderately Low
→
0.39
0.33
Transportation parts and equipment supply
1.44
↑
Moderately High
→
1.36
1.10
Moderate
→
0.63
0.64
Water transport
9.23
↑
Moderately High
↑
9.23
8.55
Moderate
↑
9.17
5.21
Utilities
Power generation
2.78
→
High
→
2.70
2.24
Moderate
↑
2.17
1.42
Waste treatment
0.76
↑
Moderately High
→
0.76
0.68
Moderately Low
→
0.19
0.19
Not classified
12.54
↓
Not Classified
→
0.00
0.01
Not classified
→
0.02
0.02
Grand Total
785.56
↑
Moderate
→
192.89
147.55
Moderately low
→
108.54
89.61
1
based on consolidated and standalone information reported under IFRS Accounting Standards (inclusive of purchase price allocation adjustments recorded in UBS as a result of the acquisition of the Credit Suisse
Group in compliance with IFRS 3, Business Combinations).
2
rating categories: low, moderately low, moderate, moderately high and high. Sensitive exposures are defined as those business activities that are rated as high, moderately high or moderate, whereas those that are
rated as having moderately low and low vulnerability are rated as “non-sensitive”. The exposures that are not assessed due to lack of methodology and / or data are categorized as “not classified”.
3
change in 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.
4
average for a given sector scope.
5
Comparative figures have been revised following the development of the global real estate model. The revision applies to the exposure booked on the UBS platform only and not
to the legacy exposure on the Credit Suisse platform. Consequently, the previously reported transition risk was revised to USD 147.55bn from USD 120.25bn and physical risk was revised to USD 89.61bn from USD
68.94bn.
6
Annual Report 2025 |
Sustainability Statement | Managing sustainability and climate risk 69
Risk management and control
Controls in financial and non-financial risk processes
UBS has integrated sustainability and climate risk considerations into both financial and non-financial processes across all
business divisions and Group functions. This ensures that relevant risks are identified, assessed, monitored and escalated
in a timely and consistent manner. Sustainability and climate risk controls are embedded throughout key processes
including client onboarding, transaction due diligence, product development, our own operations and supply chain. To
support consistent implementation of sustainability and climate risk practices across the organization, UBS has delivered
sustainability and climate-risk training to employees across the business divisions and Group functions.
›
Refer to the Sustainability and climate risk policy framework, available at
ubs.com/sustainability-reporting
, for details about our
standards, guidelines and assessments
Integration of climate-related risks into traditional risk management framework
UBS has integrated climate risk considerations into its traditional risk management and control framework to ensure that
material risks are systematically assessed, monitored and mitigated across traditional risk categories. This integration
supports a consistent and forward-looking approach, aligned with regulatory expectations and international best
practices.
Our approach is designed to support the ongoing management of climate-related 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). As FINMA has mandated financial
institutions in categories 1 and 2 to implement material climate-related financial risks in their due diligence processes
from 1 January 2026, at the latest, (Circular 2026/1 “Nature-related financial risks“, published by FINMA in December
2024), UBS has embedded the management of these risks within each traditional risk category. The following outlines
how UBS manages climate-related risks within each risk category.
Credit risk
Credit risk refers to potential credit losses that may arise from climate-related risks (both transition and physical)
materializing due to the impacts of a changing climate and the global shift toward a low-carbon economy. These risks
can affect the financial position of UBS’s counterparties, for example when such impacts impair a borrower’s capacity to
meet its financial obligations the likelihood of credit losses increases.
At the transaction level, proprietary climate risk rating methodologies and company-specific due diligence questions
support the identification and assessment of climate-related risks in credit approvals and reviews. In 2025, integration
efforts centered on lending to corporate clients. Targeted training equipped the first and second lines of defense with
the tools and capabilities to incorporate climate-related risk into their credit assessments. Another important priority was
embedding counterparty-level climate risk rating model outputs into strategic IT systems, facilitating seamless integration
within the credit approval workflow.
At the portfolio level, an enhanced approach for concentration monitoring of collateral in climate-sensitive sectors has
been introduced for Global Wealth Management and relevant parts of the Investment Bank. We are continuing to
enhance and automate quarterly risk reporting to strengthen oversight and transparency.
Liquidity risk
Liquidity risk refers to the potential impact on liquidity adequacy driven by risks from the transition to a low-carbon
economy and a changing physical climate. These risks represent an additional driver of liquidity risk and can influence
our ability to raise funds, liquidate assets or respond to changes in clients’ liquidity demands. Such impacts could lead to
increased net cash outflows or depletion of our liquidity buffer.
Climate-related risk considerations have been integrated into UBS’s liquidity management framework by introducing
climate risk stress-testing and reporting, leveraging the heatmaps and counterparty-level climate risk rating models to
assess potential impacts. The identification and integration of material climate-related risks into our liquidity risk
management framework is an iterative process, reflecting the evolving nature of climate science, regulatory expectations
and data availability. As methodologies mature and industry-wide data quality improves, UBS continues to enhance its
approach through advanced analytics and scenario-based insights. Liquidity risk is further mitigated through the
maintenance of robust high-quality liquid asset buffers, comprehensive stress-testing under diverse scenarios and access
to diversified funding sources.
Business risk
Business risk may be affected by climate-related impacts, which can influence performance through several channels.
These include potential reduction in net interest income, decreases in asset value and recurring fee income, and
heightened market uncertainty that could lower deal flow and transaction-based fees. Such factors underscore the
potential financial implications of climate change on our business model.
Annual Report 2025 |
Sustainability Statement | Managing sustainability and climate risk 70
These risks are managed and mitigated through UBS’s Group-wide sustainability and impact strategy, which aligns long-
term commercial objectives with climate-related goals and regulatory expectations. This strategic alignment helps ensure
that UBS remains resilient in the face of evolving sustainability challenges and market dynamics. Finally, climate-related
risks, issues and opportunities and their impact on business and strategy are incorporated into the firm’s financial planning
process.
Market risk
Market risk refers to potential financial impacts arising from price shifts and market volatility. Climate change can
influence these dynamics through two main channels: (i) physical risks, where a changing environment means there are
more likely to be extreme weather events impacting supply channels and company profitability ; and (ii) transition risks,
where climate policies, technological shifts and evolving market perceptions alter asset valuations or disrupt correlations
between risk factors, potentially impacting liquidity and model assumptions.
We have been progressively embedding climate considerations into our market risk management framework. This
includes the introduction of sector- / country-level climate heatmaps and counterparty-level climate risk rating models,
enabling daily monitoring and reporting of climate-sensitive exposures across our portfolio. For selected legal entities,
this framework is complemented with quantitative risk appetite measures, such as climate risk concentration triggers. In
addition, we have advanced climate-specific stress-testing capabilities, adapting long-term scenarios to short-term market
risk analysis to assess potential climate-related stress events. These initiatives are supported by continued enhancements
of our analytical tools and governance processes, ensuring climate risk remains an integral component of our market risk
management approach.
Non-financial risk
Non-financial risk, including reputational risk, can be influenced by climate-related risks. These may stem from inadequate
or failed internal processes, systems or human error, or from external factors, such as physical climate events, stakeholder
legal actions related to climate issues or concerns about our response to climate change and the transition to a low-
carbon economy. Such risks can impact compliance, operational resilience and financial crime prevention, potentially
resulting in significant non-financial consequences for UBS.
In line with the BCBS’s principles, UBS has integrated climate-related risks into the non-financial risk framework.
Environmental, social and governance (ESG) risks, including climate, are considered within UBS’s Group-wide non-
financial risk identification model. UBS is continuing to develop this framework in alignment with its commercial strategy
and industry expectations, including the integration of ESG risks into the non-financial risk taxonomy and risk appetite
statements. Additionally, UBS maintains a reputational risk framework with clearly defined roles and responsibilities,
escalation requirements and review and approval authorities. Reputational risk (including sustainability-related
reputational risks, such as greenwashing risk) is considered across all business activities, transactions and decisions.
Risk reporting and disclosure
Sustainability and climate risk considerations are embedded in UBS’s quarterly risk reporting cycles, facilitating transparent
reporting across the firm, key legal entities and the business divisions. This process includes:
–
transactions referred to the Sustainability and Climate Risk unit;
–
climate-sensitive sector activities leveraging our proprietary climate risk heatmaps and rating models through an
automated reporting process;
–
financed emissions and emissions intensities and their utilization against defined risk tolerance thresholds at the Group,
business division and sector levels; and
–
regulatory monitoring on sustainability and climate risks.
UBS prepares annual external disclosures on sustainability and climate risks, in alignment with regulatory requirements
including the recommendations of the TCFD.
›
Refer to the Sustainability and climate risk policy framework, available at
ubs.com/sustainability-reporting
Our investment management approach to sustainability and climate risks
The following section focuses specifically on how sustainability and climate risk is addressed within the investment
approaches of Asset Management and Global Wealth Management.
Assessing climate-related financial risks in client portfolios
As a global financial institution, we aim to support our clients in the transition to a low-carbon economy. Our Asset
Management and Global Wealth Management business divisions address this by offering innovative products and services
in investment and financing, establishing climate risk monitoring and management systems and providing transparent
reporting and disclosures.
Annual Report 2025 |
Sustainability Statement | Managing sustainability and climate risk 71
Our Asset Management and Global Wealth Management business divisions 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, they demonstrate their commitment to implementing the
recommendations of the Task Force on Climate-related Financial Disclosures (the TCFD). They also perform climate risk
assessments on discretionary portfolios managed in Singapore and in-scope collective investment schemes managed in
Hong Kong, respectively, in line with the Guidelines on Environmental Risk Management for Asset Managers of the
Monetary Authority of Singapore (MAS) and the climate risk regulations of the Securities and Futures Commission of
Hong Kong respectively. They also disclose portfolio risk across climate scenarios in the UK, in line with TCFD
recommendations.
We collaborate with our industry and with our clients, ensuring they have access to best practice as it evolves, along with
robust science-based approaches, standardized methodologies and high-quality data for measuring and mitigating
climate risks.
Quantifying climate risk: data and metrics
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 risk 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. Each
physical risk score represents 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. We regard carbon earnings
at risk as one of the more directly quantifiable and comparable metrics across industries globally, and therefore more
suitable for reflecting the reach and complexity of our investments.
For both physical and transition risks, the analysis is typically based on 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. 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 continually enhance the
scope and quality of data available to us.
Application in Asset Management
Asset Management’s sustainable investing (SI) integration approach identifies climate-related risks and opportunities that
can be applied in managing existing investment strategies and new portfolio construction. Portfolio construction criteria
are applied based on the intended objectives of the given strategy and classified based on their sustainability
characteristics. Exclusion criteria address elevated sustainability risks and the scope of portfolios to which such exclusions
are applied is described in Asset Management’s approach to exclusions. The investment approach in fund documentation
describes 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.
›
Refer to “Supporting our investing clients’ low-carbon transition” in the “Environmental information” section of this
Sustainability statement for more information about Asset Management’s climate-related metrics
Asset Management includes disclosure of portfolio-level metrics for sustainable investment portfolios in its fund factsheets
and in client reporting.
Within Asset Management, the 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 SI issues based on our SI material issues framework. Asset
Management’s environmental, social and governance (ESG) material issues framework reflects a sector-based view of
exposures to physical and transition climate risks. This identifies the most relevant issues by sector, making the connection
with key value drivers that may impact the investment thesis across sectors. Asset Management’s climate risk assessment
also uses issuer-level physical risk data for a range of climate hazards and transition risk data for assessing exposure to
changes in carbon pricing. This helps to identify issuers with higher levels of risk, and they are then subjected to qualitative
assessment. This includes location and business segments at risk along with mitigation measures, including board
oversight, company risk assessment, adaptation actions, and engagement with suppliers, customers and local
stakeholders. This climate risk assessment is an additional consideration in the overall assessment of the issuer’s
sustainability performance, which informs investment decisions.
Annual Report 2025 |
Sustainability Statement | Managing sustainability and climate risk 72
Our Global Real Assets business considers key transition risks using our proprietary, in-house SI dashboard. This assesses
the environmental performance of directly controlled real estate assets against pathways and targets. On the physical risk
side, we use a third-party location risk intelligence tool to analyze asset-level physical risk for our direct investments in
both real estate and infrastructure. 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. Asset Management sees the active
ownership strategy as a powerful tool in influencing corporate and other stakeholder behavior to achieve real-economy
outcomes, while also protecting the long-term value of our clients’ assets as the transition takes place.
Asset Management has had a dedicated climate engagement program in place for over seven years, addressing financially
material climate-related risks in companies and tracking measurable progress. 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, and chemicals
sectors. The program is focused on driving credible transition strategies across portfolio holdings where these support
our overarching goal to protect and enhance the value of our clients’ investment portfolios in line with our fiduciary duty.
This means we will pursue engagement objectives that seek to address issuer-specific opportunities and risks that we
believe have the potential to enhance investment returns.
Our Global Real Assets business typically holds a majority stake in our direct real assets, so 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 alignment
on our net-zero ambitions.
Application in Global Wealth Management
Global Wealth Management actively monitors industry best practice and data developments to support product
disclosures and inform climate-specific investment solutions. We have also made continued progress on capacity building
and making climate risk assessment findings available across the investment value chain. For these core purposes, we
prioritize bottom-up, location-based datasets with sufficient breadth to cover as much of our clients’ portfolio exposures
as possible. Beyond disclosures and specific solutions, Global Wealth Management does not currently use climate risk
analyses to inform investment decisions at either the asset allocation or the instrument selection level. This reflects a
suitability mismatch between the bottom-up transparency prioritized for reporting and our top-down investment
allocation processes, meaning the data cannot be directly integrated into our investment processes without significant
use of proxies and assumptions. Moreover, based on currently available data, portfolios that are optimized for climate
risk would carry significant biases that could have a substantial impact on projected risk-adjusted returns. In sum, we
observe challenges due to investment scope, limitations of data availability, modeling uncertainties and implementation
hurdles, but remain prepared to further integrate climate risks into core investment processes, should these restrictions
be resolved.
Industry engagement
Most of our discretionary portfolios comprise investment funds from third-party fund managers, including 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.
We regularly ask investment fund partners of approved investment funds for information about their approach to climate
risk issues. This includes the extent to which climate risk management processes have been developed and implemented
within their businesses, aligned to frameworks such as the TCFD and the MAS Guidelines on Environmental Risk
Management for Asset Managers, where and as required by the relevant regulators. We are committed to maintaining
regular communication with our fund partners about the development of climate risk management processes related to
their strategies.
Annual Report 2025 |
Sustainability Statement | Managing sustainability and climate risk 73
Resilience of UBS’s strategy and business model
Identification of material risks
UBS has a structured risk identification process in place designed to support the firm’s ongoing risk management and
control efforts, which is aligned with global regulatory expectations. The process of identifying the material risks to which
our businesses at UBS are exposed is a key component of risk management. A comprehensive risk identification and
assessment process contributes to an enhanced understanding of the top vulnerabilities impacting the organization under
various conditions, enabling management to better capture, measure, monitor and control risk exposure, as appropriate.
As part of the Risk Identification process, risks identified as material are then considered within the Risk Coverage
Assessment and the development of stress scenarios. They are ultimately used in the assessment of adequacy of post-
stress capital levels and capital actions as part of the Group Internal Capital Adequacy Assessment Process (ICAAP).
Climate and environment considerations are assessed for their viability as root causes of potential risks as part of the
climate risk materiality assessment, which forms an integral part of the broader risk identification process.
Stress testing
The combined stress-testing (CST) framework is scenario-based and aims to quantify overall firm-wide income, expenses
and losses that could result from extreme yet plausible macroeconomic and geopolitical stress events. Indirect climate
risks are taken into account in these stress tests, in as much as they manifest through macro-financial shocks.
Direct climate risks are generally not addressed by existing combined stress-testing models (CST). To address their impact,
UBS has implemented a dedicated climate add-on in its three-year strategic planning and internal stress-testing exercises.
Leveraging dedicated climate stress models, the add-on is designed to capture incremental direct physical risks (e.g. flood
damage affecting property value of a mortgage loan) and direct transition risks (e.g. a company’s inability to adapt to
new climate-related regulations) over a three-year horizon. The add-on is based on a scenario consistent with the
assumption that global warming will be 2°C or less.
By integrating this add-on, UBS ensures a comprehensive assessment of climate risk in internal capital adequacy
assessments.
The climate add-on leverages the same models – dedicated climate stress models – used in the climate scenario analysis,
which assesses UBS’s exposure to climate risks across short-, medium- and long-term horizons.
Stress testing is an input into our capital management processes. We are committed to maintaining a strong common
equity tier 1 capital and total loss-absorbing capacity (TLAC) position at all times. The annual strategic planning process
includes a capital planning component that is key in defining our target capital levels and returns. This process takes into
account, among other factors, the current and potential future TLAC requirements, our aggregate risk exposure in terms
of the CST, the dedicated climate add-on, and the effect of expected policy changes. These processes ensure that UBS
remains resilient against any risks identified as material in its risk identification processes.
Integrating sustainability-related impacts in our financial planning
UBS operates a multi-year financial planning process. This process reflects our business position, corporate strategy and
prospective economic environment. Sustainability is a component of that strategy and planning process.
At divisional level, commercial opportunities including our client offerings that are subject to the Group Sustainable
Investing Policy and the Sustainable Finance Guideline, are also considered. The changing global outlook regarding
sustainability and climate change, in particular, is reflected in the process, with the risks associated with climate change
being reflected in our capital requirement planning calculations.
Formal guidance on capital-framework calculations is subject to ongoing market and regulatory discussion, and we will
continue to reflect this in our planning processes.
Business continuity management
UBS has a business continuity, resilience and crisis management (BCM) framework in place to minimize the financial,
regulatory, reputational and market impact of unplanned disruptive events, including those that are climate related. We
conduct regular BCM reviews, which include assessments of potential loss of premises, compromised buildings and data
centers, loss of staff, loss of technology, loss of third parties, and the need for risk mitigation. Additionally, enhanced
operational resilience minimizes the risk and impact of an unplanned disruption on markets and clients. It includes risk
mitigation beyond standard BCM scenarios, including cyberattacks and data integrity incidents. Department recovery
plans are in place for loss of premises and loss of staff incidents due to disruptive events, such as severe weather events.
The plans are not specifically climate-related but rather agnostic to the cause of disruption. Crisis management
committees are trained accordingly to react to any materializing threats. A country risk profiling process is in place to
identify any location-specific material risks and if any acute weather mitigating plans exist. In the case of material climate-
related exposures, that would be captured accordingly. We have conducted stress tests and climate-related scenario
analysis to assess the potential impacts of climate-related physical and transition risks on selected portfolios. Through our
comprehensive business continuity planning and physical climate risk identification process we consider the risk to our
own physical assets. We are committed to ensuring continuity of service for our clients and the broader financial markets.
Annual Report 2025 |
Sustainability Statement | Managing sustainability and climate risk 74
The aforementioned activities described are governed by the Business Continuity & Resilience Framework, which ensures
that the firm’s residual operational risk remains within its risk appetite. This framework enables divisions and functions
to analyze their services to understand the associated continuity and resilience risks and develop effective recovery
strategies and solutions.
The Group’s main hubs span across Asia Pacific (mainly Singapore, the Hong Kong and Tokyo), EMEA (mainly London,
Zurich, Frankfurt and Madrid) and the US (mainly New York City). Each of these areas are assessed for climate-related
threats and may present climate change risks in the form of extreme weather conditions and the potential for natural
disasters (earthquakes, hurricanes, typhoons, tidal anomalies, rising temperatures, etc.) and the increased threat of
disease outbreaks. Where vulnerabilities have been identified, additional assessments are carried out and appropriate
planning is put in place to mitigate the risk of impact. Key first-level-of-defense controls are in the form of key procedural
controls that monitor the overall conformance of divisions and functions to the BCM program, as well as process controls
designed to identify more specific threats.
Annual Report 2025 |
Sustainability Statement | Other supplemental information 75
Other supplemental information
Additional UBS Europe SE considerations for sustainability and climate risk
management
UBS Europe SE is a significant entity of the UBS Group. Therefore, the 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 conducts
explicit management and assessment of sustainability and climate risks. This includes a tailored risk strategy and business
strategy, review of UBS’s decarbonization commitments at the level of UBS Europe SE, 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 drivers (climate risk, both transition risk and physical risks, as well as environmental risk / nature-related risk, and
social and governance risks).
The materiality assessment for sustainability and climate risks is performed by leveraging different analyses and
capabilities, ranging from sensitivity analyses based on the heatmap methodologies and the climate risk rating models 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 the materiality assessment performed, and as reflected below, sustainability and climate risk as a whole is
currently assessed as material for UBS Europe SE in the medium and long-term after considering sustainability and climate
risk-mitigating measures. Materiality is driven by non-financial risk 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.
Risk type
Short-term
Medium-term
Long-term
Credit risk
Gross
1
Not material
Not material
Not material
Residual
Not material
Not material
Not material
Market risk
2
Gross
1
Not material
Residual
Not material
Liquidity and funding risk
3
Gross
1
Not material
Residual
Not material
Non-financial risk
Gross
1
Material
Material
Material
Residual
Not material
Material
Material
Reputational risk
Gross
1
Material
Material
Material
Residual
Not material
Material
Material
Business risk
Gross
1
Material
Material
Material
Residual
Not material
Not material
Not material
1
Gross risk also referred to as inherent risk, refers to the level of risk that exists in the absence of UBS Europe SE's standard climate-related risk controls or mitigation actions, whereas residual risk refers to the level
of risk after taking them into account.
2
The trading book is assessed using a short-term stress scenario horizon due to the dynamic risk profile and high liquidity of trading book instruments, which makes them
sensitive to short-term shocks rather than long-term climate transition. The banking book scenario horizon is aligned with the liquidity portfolio (high-quality liquid assets) and existing internal liquidity adequacy
assessment process (ILAAP) stress tests, which operate on a one-year horizon. This alignment ensures consistency with regulatory expectations and reflects the relatively stable nature of banking book exposures.
Therefore, market risk has not been assessed in the medium and long terms.
3
based on a one-year stress horizon, which is considered long-term for liquidity purposes and is in alignment with the time horizon of the funding regulatory metric, the net stable funding ratio (one year). Therefore,
liquidity risk has not been assessed in the medium and long terms.
Annual Report 2025 |
Sustainability Statement | Other supplemental information 76
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, enables UBS Europe SE to understand the risks and impacts on the business
environment and to guide the risk appetite, as established in the risk strategy.
In line with the UBS Group, sustainability is managed as a key strategic imperative in UBS Europe SE’s business strategy,
and, where applicable, business activities related to sustainability and measures are established, monitored and annually
reviewed at the entity level. Assessing the different risks and opportunities that are linked to sustainability is crucial to
developing a consistent sustainability business strategy. Therefore, UBS Europe SE analyzes topics such as market trends,
regulatory frameworks, environmental, social and governance (ESG) risks and aspects, 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 following the UBS
Group sustainability and impact strategy across environmental, social and product-related areas.
Among other priorities, UBS Europe SE has identified the following key sustainability focus areas:
–
supporting the transition of financing and investing clients to low-carbon and climate-resilient business models;
–
minimizing the operational footprint and utilizing resources in an efficient and sustainable way; and
–
identifying, measuring, monitoring, managing and reporting sustainability and climate risks.
UBS Europe SE is fully aligned with the UBS Group sustainability and impact strategy, including its ambitions and
implementation timeline. 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.
›
Refer to the “Strategy” section in this Sustainability statement for more information about UBS’s sustainability and impact
strategy, which fully applies to UBS Europe SE
Globally, the UBS Group is a member of several associations and networks, supporting sustainable finance principles
based on international standards. At the level of UBS Europe SE this includes: the Association of German Banks
(
Bundesverband deutscher Banken e.V.
), the European Bank Federation and the Association for Financial Markets in
Europe. In 2022, UBS Europe SE became a member and sponsor of the International Sustainability Standards Board to
support consistent corporate reporting on sustainability matters and the integration of sustainability factors into financial
markets and decision-making.
Governance
The members of the management board UBS Europe SE are overall responsible for adequate risk management and for
establishing an integrated and institution-wide risk culture. This includes determining UBS Europe SE’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 risk policies
of UBS Europe SE. 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 of its members 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 UBS Europe SE’s risk profile and the
implementation of the risk framework as approved by the management board, as well as monitoring the key risk
measurement methodologies, including sustainability and climate risks.
UBS Europe SE’s risk management organization is based on the three lines of defense model, fulfilling the general risk
management requirements set by
Mindestanforderungen an das Risikomanagement (MaRisk) AT°4.3.1
Requirements for Risk Management). Furthermore, it is embedded into the broader risk governance framework of the
UBS Group.
To ensure sustainability has dedicated senior management oversight, the UBS Europe SE’s Chief Risk Officer (the CRO) is
formally the management board member responsible for sustainability risks at UBS Europe SE, while the Chief Financial
Officer (the CFO) is responsible for sustainability.
The management board of UBS Europe SE 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 2025 |
Sustainability Statement | Other supplemental information 77
According to the sustainability and climate risk policy framework, the business divisions, as the first line of defense (the
first LoD) identify sustainability and climate risks in in-scope products, services, activities, transactions, onboardings or
periodic reviews and refer them to the Sustainability and Climate Risk (SCR) unit, as a second line of defense (a second
LoD), or business-aligned second LoD (e.g. credit risk controllers), where applicable.
The SCR unit (as a second LoD) approves or declines the cases referred to it after assessing their compliance with the risk
appetite standards defined by UBS Europe SE’s management board. The SCR unit also measures, monitors and reports
the exposure to sustainability and climate risks. Moreover, the unit supports the CRO in overseeing sustainability topics.
It develops and implements UBS Europe SE’s risk framework, specifically its risk appetite, for sustainability and climate
risk topics, monitors emerging issues and reviews UBS Europe SE’s exposure to sustainability and climate risks.
Furthermore, it ensures the sustainability and climate risk policy framework is embedded in UBS Europe SE’s culture,
management practices and control principles across the firm, and it conducts sustainability and climate-risk-specific
assessments of transactions and client and supplier onboarding.
The compliance framework applied by the Group Compliance and Operational Risk Control (GCORC) function as part of
the second LoD includes (but is not limited to) standards set for the appropriate consideration of ESG-related non-financial
risks in (i) the product service life cycle through the New Business Enablement (NBE) framework; (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.
As part of its mandate, GCORC undertakes assurance activities (monitoring and testing) of sustainability-related activities,
which includes a periodic sample based greenwashing monitoring control on investment products. Further, an ESG
category flag facilitates the mapping of ESG-relevant first and second LoD controls to support a focused assessment of
ESG as taxonomy risk driver. Additionally, GCORC monitors ESG non-financial risk metrics on a quarterly basis with
reporting to the management board.
From a third line of defense (third LoD) perspective, Internal Audit assures the design and operating effectiveness of UBS
Europe SE's internal risk and control framework and escalates / reports to relevant governance forums (e.g. the risk
control committee) and UBS Europe SE’s audit committee of the supervisory board.
From a more detailed sustainability and climate risk governance set-up perspective, UBS Europe SE has developed a robust
and evolving governance structure around sustainability. In this sense, the dedicated Sustainability & SCR Steering Forum,
established in June 2021, meets monthly and oversees the strategy and implementation of plans to address regulatory
expectations concerning the impact of sustainability and climate risk on the legal entity. To ensure management
coordination and escalation, when needed, the forum is co-chaired by the CRO and the CFO, in alignment with UBS
Europe SE’s schedule of responsibilities. Furthermore, they are supported by the roles of the UBS Europe SE sustainability
and climate risk lead (second LoD), as Head of the SCR unit and part of GRC, and the UBS Europe SE sustainability lead
(first LoD). Additionally, the management board formally receives quarterly and, when required, bespoke updates,
ensuring overall priorization and alignment regarding sustainability topics. In addition, a semi-annual report is presented
to the management and the supervisory board on the monitoring of UBS’s decarbonization commitment. This enables
sustainability to be addressed and monitored at the highest level in the entity.
Finally, material changes to the business model of UBS Europe SE are subject to strategic review in accordance with the
entity’s governance principles. New products and changes of existing businesses are subject to the NBE framework, while
the sustainability and impact offer is mainly channeled through the sustainability and impact mandates that are subject
to an enhanced overview and monitoring.
›
Refer to “Our sustainability governance” in the “Governance” section of this Sustainability statement for more information about
sustainability governance at UBS
Risk management
UBS’s sustainability and climate risk policy framework is embedded in the UBS Europe SE risk control framework. UBS
has integrated sustainability and climate risk considerations into its traditional risk management and control frameworks
to ensure that risks are systematically assessed, monitored and mitigated across traditional risk categories. This integration
is aligned with regulatory expectations and international best practices.
›
Refer to the “Managing sustainability and climate risks” section in this Sustainability statement for more information about the
integration of sustainability and climate-related risks into traditional risk management frameworks
›
Refer to the Sustainability and climate risk policy framework, available at
ubs.com/sustainability-reporting
, for more information
Climate scenario analysis is part of UBS Europe SE’s stress-testing framework. Climate scenario analysis enables 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 2025 |
Sustainability Statement | Other supplemental information 78
Generally, the material residual risk categories are capitalized within the internal capital adequacy assessment process
(ICAAP). As material residual risks have been identified for the impact of sustainability and climate risk on non-financial
risks and reputational risk, these risks are considered in both the normative and economic ICAAP perspective.
›
Refer to “Risk identification and measurement” in the “Managing sustainability and climate risks” section of this Sustainability
statement for more information about climate scenario analysis
›
Refer to “Climate-related risk methodologies and scenarios” in the “Other supplemental information” section of this Sustainability
statement for more information about climate scenario analysis
Metrics and targets
Regarding metrics, UBS Europe SE standalone 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 information
on UBS Europe SE pursuant to Art. 8 of the EU Taxonomy Regulation, is disclosed in the sections referred to below.
›
Refer to “Monitoring and risk appetite setting” in the “Managing sustainability and climate risks” section of this Sustainability
statement for information about the Risk management – climate-related metrics table
›
Refer to the Sustainability and climate risk policy framework, available at
, for more information
about the sustainability and climate risk assessments table
›
Refer to the “Information on UBS AG standalone and UBS Europe SE consolidated pursuant to Art. 8 of the EU Taxonomy
Regulation” section of this Sustainability statement
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 the “Environmental information” section of this Sustainability statement for more information about financed emissions
and targets
›
Refer to the “Environmental information” section of this Sustainability statement for more information about financed emissions
methodologies (with UBS Europe SE fully embedded in these)
With regard to 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 a
reduced exposure to the power generation sector, which is being tracked at the Group level. In relation to exposure to
the residential real estate sector, the mortgages portfolio is also very limited.
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 the “Managing sustainability and climate risks” section of this Sustainability statement, in particular the transition and
physical risks sections and ”Risk identification and measurement“ for more information
›
Refer to “Climate-related risk methodologies and scenarios” in the “Other supplemental information” section of this
Sustainability statement 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. Lending exposure data is categorized by risk ratings based on the current state of the world.
UBS Europe SE standalone climate transition and physical risks exposures and nature-related risk exposures are shown
below. In 2025, the carbon-related assets, climate-sensitive exposure to transition risk and nature-related risk increased,
due to general portfolio moves. The decrease in climate-sensitive exposure to physical risk was mainly due to the reduction
of sensitive exposure in the services and technology portfolio.
Annual Report 2025 |
Sustainability Statement | Other supplemental information 79
Risk management – Climate- and nature-related metrics
For the year ended
31.12.25
31.12.24
Climate- and nature-related metrics for UBS Europe SE (standalone) (USD m)
Exposure to climate-sensitive sectors, transition risk: gross lending exposure
1,2
35.8
25.2
Exposure to climate-sensitive sectors, transition risk: Traded products
3
46.8
92.9
Exposure to climate-sensitive sectors, transition risk: Issuer risk
4
43.1
96.5
Exposure to climate-sensitive sectors, physical risk: gross lending exposure
1,2
10.4
28.3
Exposure to climate-sensitive sectors, physical risk: Traded products
3
258.6
237.3
Exposure to climate-sensitive sectors, physical risk: Issuer risk
4
12.4
54.4
Exposure to nature-related risks: gross lending exposure
1
33.9
24.8
Exposure to nature-related risks: Traded products
3
7.9
11.0
Exposure to nature-related risks: Issuer risk
4
8.3
2.7
Carbon-related assets
1,5
34.1
24.9
1
based on standalone information reported under IFRS Accounting Standards.
2
booked on the UBS platform only and not to the legacy exposure on the Credit Suisse platform. Consequently, the previously reported physical risk exposure was revised to USD 28.3m from USD 24m, while transition
risk remained unchanged following the revision.
3
securities borrowing and lending, and repurchase and reverse repurchase agreements.
4
5
the Global Industry Classification Standard. These four groups are: (i) energy; (ii) transportation; (iii) materials and buildings; and (iv) agriculture, food and forest products. This metric is agnostic of risk rating.
›
Refer to “Basis of preparation – UBS Europe SE standalone climate- and nature -related metrics” in this section of this
Sustainability statement for more information on the metrics definitions, approaches and scope
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 the share of sensitive risk exposure for each risk type.
Climate- and nature-related risk exposures by sector for UBS Europe SE standalone
1
Transition risk
Physical risk
Nature-related risk
Sector / Sub-sector
2025
exposure
(USD m)
2024
exposure
(USD m)
2025
sensitive
exposure
(USD m)
2024
sensitive
exposure
(USD m)
2
2025
sensitive
exposure
(USD m)
2024
sensitive
exposure
(USD m)
2
2025
sensitive
exposure
(USD m)
2024
sensitive
exposure
(USD m)
Agriculture
Agriculture, fishing and forestry
0.00
1.32
0.00
0.00
0.00
1.31
0.00
1.26
Food and beverage
1.40
1.54
1.40
1.54
0.11
0.79
0.00
0.01
Financial services
Financial services
265.31
247.59
0.00
0.00
0.08
0.01
0.00
0.00
Industrials
Electronics manufacture
0.06
0.05
0.06
0.05
0.00
0.00
0.00
0.00
Goods and apparel manufacture
0.35
1.15
0.35
1.15
0.35
0.00
0.00
1.15
Machinery manufacturing
0.29
0.83
0.29
0.83
0.00
0.00
0.29
0.83
Metals and mining
Production of metals
6.51
0.00
6.51
0.00
0.00
0.00
6.51
0.00
Private lending
Lombard
3
10,011.22
8,041.92
0.00
0.00
0.00
0.00
0.00
0.00
Real estate
Development and management
27.14
20.41
27.14
20.41
0.00
0.00
27.14
20.41
Private clients with mortgages
322.70
315.24
0.00
0.00
4.88
3.96
0.00
0.00
Services and technology
Services and technology
182.36
85.63
0.01
0.13
4.93
22.17
0.00
0.00
Utilities
Power Generation
0.00
1.13
0.00
1.13
0.00
0.00
0.00
1.13
Not classified
112.56
185.82
0.00
0.00
0.00
0.00
0.00
0.00
Grand Total
10,929.90
8,902.62
35.77
25.25
10.36
28.26
33.95
24.78
1
based on standalone information reported under IFRS Accounting Standards.
2
booked on the UBS platform only and not to the legacy exposure on the Credit Suisse platform. Consequently, the previously reported physical risk exposure was revised to USD 28.26m from USD 24.29m, while
transition risk remained unchanged following the revision.
3
Lombard lending rating is assigned based on the average riskiness of the collateral that is posted securing the loans.
Annual Report 2025 |
Sustainability Statement | Other supplemental information 80
Transition risk
The climate-driven transition risk profile chart below shows that at year-end 2025, the majority of UBS Europe SE
standalone exposure is rated as moderately low (93.76%), whereas the share of climate-sensitive exposure is immaterial
(0.33%). The majority of the climate-sensitive exposure is concentrated in the real estate sector.
Climate-driven transition risk profile chart for UBS Europe SE standalone
1,2
In USD million
Moderately high 35.23 (0.32%)
Real estate
27.14
Development and management of real estate
27.14
Metals and Mining
6.51
Production of other mined metals and raw materials
6.51
Agriculture
1.29
Food and beverage production
1.29
Industrials
0.29
Machinery and related parts manufacturing
0.29
Moderate 0.54 (0.01%)
Industrials
0.41
Other consumer goods manufacturing
0.35
Electronics manufacture
0.06
Agriculture
0.11
Food and beverage wholesale / retail
0.11
Services and technology
0.01
Media, information technology
0.01
1
guarantees and irrevocable loan commitments (within the scope of expected credit loss) and is based on standalone
information reported under IFRS Accounting Standards.
2
one, based on climate risk transmission channels. Sensitive exposures are defined as those business activities that are rated
as high, moderately high or moderate, whereas those that are rated as having moderately low and low vulnerability are
rated as “non-sensitive”. The exposures that are not assessed due to lack of methodology and / or data are categorized as
“not classified”.
Physical risk
The climate-driven physical risk profile chart below shows that at year-end 2025, the majority of UBS Europe SE
standalone exposure is rated at moderately low (93.25%), whereas the share of climate-sensitive exposure is immaterial
(0.09%).
Annual Report 2025 |
Sustainability Statement | Other supplemental information 81
Country breakdown
Regional breakdown
France
Italy
Rest of the World
EMEA
Americas
Switzerland
6
Asia Pacific
Sensitive
0.03
4.58
5.75
Sensitive
4.94
5.42
0.00
0.00
Non-sensitive
3,338.05
1,544.93
5,924.00
Non-sensitive
9,125.42
1,351.15
207.68
16.55
Not classified
71.35
0.68
40.53
Not classified
94.87
0.36
5.15
2.97
1
2
risks are scored between zero and one, based on climate risk transmission channels. Sensitive exposures are defined as those business activities that are rated as high, moderately high or moderate, whereas those that are rated as having moderately low and low vulnerability are rated as “non-sensitive”. The exposures
that are not assessed due to lack of methodology and / or data are categorized as “not classified”.
3
The exposure weighted average physical risk rating across all regions is “moderately low”. The world map therefore reflects the moderately low color scale as in the total exposure chart.
4
into regions according to the UBS Country and Region Data Standard.
5
6
very small exposure (<1%) booked in Liechtenstein.
Annual Report 2025 |
Sustainability Statement | Other supplemental information 82
Nature-related risk
The nature-related risk profile chart below shows that at year-end 2025, the majority of UBS Europe SE standalone
exposure is rated as moderately low (93.28%), whereas the share of nature-sensitive exposure is immaterial (0.31%).
The majority of the nature-sensitive exposure is concentrated in the real estate sector.
Nature-related risk profile chart for UBS Europe SE standalone
1,2
In USD million
High 6.51 (0.06%)
Metals and mining
6.51
Production of other mined metals and raw materials
6.51
Moderate 27.44 (0.25%)
Real estate
27.14
Development and management of real estate
27.14
Industrials
0.29
Machinery and related parts manufacturing
0.29
1
sheet guarantees and irrevocable loan commitments (within the scope of expected credit loss) and is based on
standalone information reported under IFRS Accounting Standards.
2
scored between zero and one, based on climate risk transmission channels. Sensitive exposures are defined as
those business activities that are rated as high, moderately high or moderate, whereas those that are rated as
having moderately low and low vulnerability are classified as “non-sensitive”. The exposures that are not assessed
due to lack of methodology and / or data are categorized as “not classified”.
Annual Report 2025 |
Sustainability Statement | Other supplemental information 83
Basis of preparation – UBS Europe SE standalone climate- and nature-related metrics
Carbon-related assets
Metric
Units
Legal entity
Carbon-related assets
USD bn
Definition
Carbon-related assets are defined as concentrations of credit exposure to assets tied to the four non-financial sector
groups as defined by the Task Force on Climate-related Financial Disclosures (the TCFD) (using the 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.
Calculation process
The metric is calculated for in-scope UBS legal entities on the total of on-balance sheet loans and advances to customers
and off-balance sheet guarantees and irrevocable loan commitments within the scope of expected credit loss (ECL), gross
of ECL allowances based on standalone IFRS numbers, hereafter referred to as “total gross customer lending exposure”.
The carbon-related assets metric is the total gross exposure to the four non-financial groups as defined by the TCFD in
its expanded definition published in 2021. UBS applies this definition across the relevant non-financial sectors, including,
but not limited to, fossil fuel extraction, carbon-based power generation, transportation (air, sea, rail and automotive
manufacturing), 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, and also includes 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 sector methodologies, which take a risk-based approach to defining material exposure to climate effects.
Economic sectors are classified according to the UBS Group Industry Code 2.0 (GIC 2.0) which comprises a hierarchical
structure.
Sources
The mapping of external taxonomies (e.g. North American Industry Classification System (NAIC), General Classification
of Economic Activities (NOGA), Global Industry Classification Standard (GICS)) to internal taxonomies (GIC 2.0) is provided
by the Group Data Management Office.
Key assumptions, approximations and judgments
The carbon-related assets metric relies on internal GIC 2.0 codes that are assigned by business-division-specific
onboarding processes based on the company’s legal incorporation or its economic activity.
Some segments within the in-scope sectors contribute to low-carbon transition and are therefore excluded from the in-
scope list. For example, while the utilities sector is within scope, segments like nuclear and other renewables are
considered out of scope.
Total exposure to climate-sensitive sectors – transition risk
Metric
Units
Legal entity
Total exposure to climate-sensitive sectors, transition risk
USD bn
Definition
Climate-driven transition risks arise from the transition to a sustainable economy, in particular its decarbonization, due
to, for example, changes in policy, case law, technology or changes in the behavior of market participants. 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.
Calculation process
The metric is calculated for in-scope UBS legal entities for banking products, traded products and issuer risk exposures.
For banking products, the metric is calculated on the total of on-balance sheet loans and advances to customers and off-
balance sheet guarantees and irrevocable loan commitments within the scope of expected credit loss, gross of ECL
allowances based on standalone IFRS numbers, hereafter referred to as “total gross customer lending exposure”.
For traded products, the metric includes 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 exposure, refers to the risk resulting from the changes in the financial
condition of a specific issuer that cannot be attributed to general market and liquidity risk. For issuer risk exposures, the
metric includes high-quality liquid assets, debt securities, bonds and liquidity buffer securities.
Annual Report 2025 |
Sustainability Statement | Other supplemental information 84
Methodologies for assessing climate risks are emerging and may change over time. As the methodologies, tools and
industry-wide data availability improve, UBS will further develop its risk identification and measurement approaches.
When counterparty-level information is available and is of sufficient quality, a bottom-up transition risk rating model (TR
RM) is used to assess transition risk. The model leverages the Company Transition Assessment Scorecard (CTAS), which
evaluates a firm’s alignment with net-zero objectives, ensuring a more granular and company-specific view of transition
risk. Where such detailed data is not available, a top-down transition risk heatmap model (TR HM) is used based on the
counterparty’s country of risk domicile and internal UBS industry classification (GIC 2.0). Additionally, to increase the
granularity of risk ratings and coverage of financial institutions and corporate clients booked in certain legal entities, a
bespoke company-level assessment is carried out.
For real estate financing and private clients with mortgages, hereafter referred to as “real estate exposure”, UBS
developed the Global Real Estate (GRE) model in 2025 for exposures onboarded to UBS target systems.
For Lombard lending, a moderately low rating is assigned based on the average riskiness of the collateral portfolio that
is posted securing the loans.
UBS lending exposure is mapped to the counterparty-level rating (TR RM) or else to the TR HM based on the counterparty’s
country of risk domicile and sector classification (GIC 2.0). Exposures that are not mapped due to the absence of
counterparty-level ratings and sector- / country-based risk ratings are treated as “not classified”. UBS real estate exposure
is mapped to the client-level rating (GRE) or else assigned a real estate portfolio rating. UBS Lombard lending exposure is
assigned a Lombard portfolio rating.
Sources
The TR HM methodology is based on a risk segmentation process, first dividing financing types and then rating economic
sectors and sub-industry segments that share similar climate risk vulnerability characteristics. The risk ratings can be used
to support the identification of potential climate-sensitive concentrations and further analysis. The ratings 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 or emerging markets countries, as per UBS country risk policy.
The TR RM methodology relies on two inputs: the output of the TR HM, which is based on the counterparty’s sectoral
classification and country group, and CTAS. CTAS is an internal UBS tool that 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
toward 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 CTAS. Whenever CTAS does not provide an
assessment for a company, the model relies exclusively on the TR HM. The coverage of the TR RM depends on CTAS,
which in turn depends on the data collected from external providers. The coverage of the TR RM will continue to improve
as wider sets of companies are covered by CTAS.
The GRE model developed by UBS generates counterparty-level risk ratings, with a fallback approach applied when
counterparty-specific information is unavailable. The model calculates a transition risk rating by assessing building-level
estimated CO
2
Lombard lending is assigned an overall expert-based portfolio rating based on the average riskiness of the collaterals that
are posted securing the loans.
All rating models (GRE, TR RM), the heatmap (TR HM) and portfolio ratings rely on a five-point rating scale: low,
moderately low, moderate, moderately high and high. Climate-sensitive exposures are defined as those business activities
that are rated as having high, moderately high or moderate vulnerability to transition risks, whereas those that are rated
as having moderately low or low vulnerability to transition risk are rated as “non-sensitive”. The exposures that are not
assessed due to lack of methodology and / or data are classified as “not classified”.
The mapping of external taxonomies (e.g. NAIC, NOGA, GICS) to internal taxonomies (GIC 2.0) is provided by the Group
Data Management Office.
Key assumptions, approximations and judgments
Transition risk models (TR HM, TR RM) and methodologies assume the same underlying scenario, i.e. an immediate and
disorderly transition and a time horizon of 0–3 years. For GRE, the same scenario is used as for UBS decarbonization
targets.
The TR RM uses the overall CTAS rating as a key driver of the company’s transition risk instead of using its individual
subcomponents to remain consistent with the firm’s transition risk assessment of the company.
The TR HM rating is based on the accumulated expert knowledge within the firm and applying rigorous expert judgment
is a crucial dimension of the transition risk assessment.
The transition risk rating assignment relies on internal GIC 2.0 codes that are assigned by business-division-specific
onboarding processes based on the company’s legal incorporation or its economic activity.
The transition risk assessment for financial institutions, which uses a look-through method, relies on expert-based
mapping of publicly disclosed industry exposures to UBS defined sectors and associated risk scores.
Annual Report 2025 |
Sustainability Statement | Other supplemental information 85
For real estate that could not be assessed due to missing emissions data, a fallback value representing the median
emissions of a relevant set of real estate properties is applied.
The Lombard portfolio rating is based solely on the characteristics of the collateral portfolio, i.e. the issuers of collateral
rather than UBS’s counterparties. This reflects the reliance on collateral liquidation as the primary source of repayment.
Total exposure to climate-sensitive sectors – physical risk
Metric
Units
Legal entity
Total exposure to climate-sensitive sectors, physical risk
USD bn
UBS Europe SE standalone
Definition
Climate-driven physical risks arise from acute hazards, which are increasing in severity and frequency, and chronic
risks, which 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 wider financial sector. These risks extend
to the value of investments and may also affect the value of collateral (e.g. real estate). UBS physical risk models measure
how four acute physical risk hazards (wildfires, heatwave, floods and tropical cyclones) may drive current physical risk, by
rating sectoral and geographical vulnerabilities of counterparties to these hazards.
Calculation process
The metric is calculated for in-scope UBS legal entities for banking products, traded products and issuer risk exposures.
For banking products, the metric is calculated on the total of on-balance sheet loans and advances to customers and off-
balance sheet guarantees and irrevocable loan commitments within the scope of expected credit loss, gross of ECL
allowances based on standalone IFRS numbers, herea
er referred to as “total gross customer lending exposure”.
For traded products, the metric includes 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 exposure, refers to the risk resulting from the changes in the financial
condition of a specific issuer that cannot be attributed to general market and liquidity risk. For issuer risk exposures, the
metric includes high-quality liquid assets, debt securities, bonds and liquidity buffer securities.
Methodologies for assessing climate risks are emerging and may change over time. As the methodologies, tools and
industry-wide data availability improve, UBS will further develop its risk identification and measurement approaches.
When counterparty-level information is available and is of sufficient quality, a bottom-up physical risk rating model (PR
RM) is used to assess physical risk, or else a top-down physical risk heatmap model (PR HM) is used based on
counterparty’s country of risk domicile and internal UBS industry classification (GIC 2.0).
For real estate financing and private clients with mortgages, hereafter referred as “real estate exposure”, UBS developed
the GRE Model in 2025 for exposure onboarded to UBS target systems.
For Lombard lending, an expert-based portfolio rating of moderately low is assigned based on the average riskiness of
the collateral portfolio that is posted securing the loans.
UBS lending exposure is mapped to the counterparty-level rating (PR RM) or else to the PR HM based on the counterparty’s
country of risk domicile and sector classification (GIC 2.0). Exposures that are not mapped due to the absence of
counterparty-level ratings and sector- / country-based risk ratings are treated as “not classified”. UBS real estate exposure
is mapped to the client-level rating (GRE) or else assigned a real estate portfolio rating. UBS Lombard lending exposure is
assigned a Lombard portfolio rating.
Sources
The PR HM isolates assets falling under the same sector and location (country of risk domicile) to calculate a sector
country-level physical risk exposure score for each of the four hazards. The sector country exposure score is calculated by
combining a physical risk hazard exposure metric derived from asset level data sourced from ESG data vendors. To
account for variation in vendor data when aggregated at sector and location level, a penalization factor is applied to
sector country exposure scores. The hazard-specific physical risk exposure scores are further amplified or mitigated by
considering the extent to which each sector is vulnerable or resilient to a particular hazard.
The PR RM applies a similar logic to the PR HM while leveraging company specific asset level data when available from
ESG vendor sources. For the PR RM, sufficient geographic diversification of a counterparty’s assets serves as a mitigant
to physical risk exposure scores.
Both the PR RM and the PR HM consider the type of company. They do not take into account the type of collateral or the
nature of the bank’s relationship with the company. The PR HM has a broader scope than the PR RM. It aggregates data
across relevant sector country combinations to produce average ratings for all companies, while the PR RM assigns a
company specific rating when asset level data is available.
The GRE model developed by UBS assigns counterparty level physical risk ratings and uses a fallback approach when
asset-specific information is missing. The model assesses building level exposure to flood risk.
Annual Report 2025 |
Sustainability Statement | Other supplemental information 86
Lombard lending is assigned an overall expert-based portfolio rating based on the average riskiness of the collaterals that
are posted securing the loan.
All rating models (GRE, PR RM, PR HM) and portfolio ratings use a five-point scale: low, moderately low, moderate,
moderately high, and high. Exposures rated high, moderately high, or moderate are considered climate sensitive.
Exposures rated moderately low or low are considered non sensitive. Exposures that are not rated due insufficient data
and/or lack of methodology are classified as “not classified”.
The mapping of external taxonomies (e.g. NAIC, NOGA, GICS) to internal taxonomies (GIC 2.0) is provided by the Group
Data Management Office.
Key assumptions, approximations and judgments
All physical risk methodologies assume the same underlying scenario i.e. the current state of world.
For the PR RM, the main driver of physical risk is the direct geographical exposure of companies to climate
-
related hazards.
Consequently, other types of assets (e.g. financial assets) are not considered.
For the PR HM, physical risk is measured via bottom
-
up aggregation of highly granular and localized data. Physical risk
materializes via highly localized events affecting the firm’s counterparties via their assets (operations, business continuity
and book valuations) and interconnectedness. In this framework, direct geographical exposure to physical
-
risk hazards is
treated as the primary driver of physical risk.
The PR HM rating assignment relies on internal GIC 2.0 codes that are assigned by business-division-specific onboarding
processes based on the company’s legal incorporation or its economic activity.
In the GRE model, acute physical risk is proxied by flood risk. Although other hazards exist (e.g. wildfires, tropical
cyclones), flooding risk is so predominant that it is assumed to be a good proxy for acute physical risk.
The Lombard portfolio rating is based solely on the characteristics of the collateral portfolio, i.e. the issuers of collateral
rather than UBS’s counterparties. This reflects the reliance on collateral liquidation as the primary source of repayment.
Nature-related risks
Metric
Units
Legal entity
Total exposure to nature-related risks
USD m
UBS Europe SE standalone
Definition
Nature-related risks can arise from economic and human dependency upon ever-changing environmental conditions
(physical risks) and / or the way human activities (and economies) may adversely impact those very conditions, which we
rely on (transition risks). A degrading environment and its ecosystem services (such as biodiversity, clean air and fresh
water, among other things) may contribute to a structural change across economies and can consequently affect banks
and the stability of the wider financial sector through financial and non-financial impacts.
Calculation process
The metric is calculated for banking products, traded products and issuer risk exposures for in-scope UBS legal entities.
For banking products, the metric is calculated on the total of on-balance sheet loans and advances to customers and
guarantees and off-balance sheet irrevocable loan commitments within the scope of expected credit loss, gross of ECL
allowances based on standalone IFRS numbers, hereafter referred as “total gross customer lending exposure”.
For traded products, the metric includes 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 tradeable single name exposure, refers to the risk resulting from the changes in the financial
condition of a specific issuer that cannot be attributed to general market and liquidity risk. For issuer risk exposures, the
metric includes high-quality liquid assets, debt securities, bonds and 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 (physical
risks) or impacts on the environment (transition risks). As with climate-related risks, “sensitive” is defined as the top three
ratings on a five-point scale (high, moderately high or moderate), whereas moderately low or low ratings are defined as
“non-sensitive”. Exposures that are not assessed due to lack of methodology and / or data are classified as “not
classified”.
The driving methodology is derived from the Exploring Natural Capital Opportunities, Risks and Exposure (ENCORE)
methodology (2018–2023).
Annual Report 2025 |
Sustainability Statement | Other supplemental information 87
ENCORE is based on a four-tier system:
1.
Natural capital assets: defined as the most basic unit of the environment (e.g. geology, soil, air, water).
2.
Ecosystem services: assets combine to form services (i.e. air and trees combine to purify carbon dioxide and provide
oxygen).
3.
Economic production processes: these are grouped into more traditional economic subsectors.
4.
The scientifically informed ratings given by ENCORE on how production processes may impact and / or depend on
ecosystem services.
The UBS GIC 2.0 codes were mapped to the ENCORE database through the link to the GICS code provided by ENCORE.
The ratings for a sector’s nature-related risk dependencies 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 subsector, the worst (highest risk, highest value) dependency score and the worst impact
score are mapped to the subsector. For each UBS GIC 2.0 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 (NR HM) based on the counterparty’s GIC 2.0.
Sources
For real estate financing and private clients with mortgages, an expert-based portfolio overall rating is assigned based on
internal analyses of UBS real estate portfolios, yielding an overall low-risk rating.
Lombard lending is assigned an overall expert-based portfolio rating based on the average riskiness of the collaterals that
are posted securing the loans, yielding an overall moderately low-risk rating.
The mapping of external taxonomies (e.g. NAIC, NOGA, GICS) to internal taxonomies (GIC 2.0) is also provided by the
Group Data Management Office.
Key assumptions, approximations and judgments
All economic activities are assumed to have some dependency or impact on natural capital stock or flows of ecosystem
services.
The NR HM rating assignment relies on internal GIC 2.0 codes that are assigned by business-division-specific onboarding
processes based on the company’s legal incorporation or its economic activity.
The Lombard portfolio rating is based solely on the characteristics of the collateral portfolio, i.e. the issuers of risk rather
than the UBS’s counterparties. This reflects the reliance on collateral liquidation as the primary source of repayment.
Annual Report 2025 |
Sustainability Statement | Other supplemental information 88
Climate-related risk methodologies and scenarios
This section provides an overview of our scenario analysis and of the methodological approaches taken in developing our
climate risk analytics.
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 US dollars) over the total lending
exposure to customers (on- and off-balance sheet, percent). As part of methodology enhancements, in 2025, a global
real estate (GRE) model has been developed to produce counterparty-level risk ratings within real estate financing and
private clients with mortgages portfolios. The model assesses physical risk based on expected damage caused by flood
risk and transition risk based on the estimated CO
2
heatmaps, counterparty-level climate risk rating models and GRE model support our risk management strategy through:
–
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 climate-related 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.
Transition risk
Physical risk
Methodology (heatmap)
Originally developed in collaboration with the United Nations Environment
Programme Finance Initiative and Oliver Wyman, our expert-based
transition risk ratings have been further refined in-house. These ratings
and risk segmentation processes now reflect changes in risk profiles,
evolving views on climate-related risk materiality and UBS’s business
footprint. Climate transition risk scores (0–1) and ratings (low to high) are
assigned to sectors. Geographic information is captured by distinguishing
between emerging and industrialized countries. As a result, 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 industry 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
mapped to a rating (low / moderately low / moderate / moderately high /
high). As a result, exposure data is categorized by risk ratings, through
their sectoral and country designation.
Methodology (rating
models)
The transition risk rating model produces a counterparty-level assessment
by adjusting the heatmap rating using data on a company’s alignment to
net-zero targets, captured via the Company Transition Assessment
Scorecard (the CTAS), where available.
The physical risk rating model generates counterparty-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 counterparty-level rating based
on asset-level data.
Methodology (global real
estate model)
Developed in 2025, the GRE model produces a counterparty-level
assessment of transition risk in UBS’s commercial and residential real
estate portfolio based on the estimated CO
2
emissions.
Developed in 2025, the GRE model produces a counterparty-level
assessment of physical risk in UBS’s commercial and residential real estate
portfolio based on expected damage caused by flood risk.
Scenario
Ambitious and disorderly approach to meeting the <2˚C goal of the Paris
Agreement.
Current state of world
Interpretation
Reflect level of risk and likelihood of financial impact and exposure based
on the defined scenario above.
Reflect level of risk and likelihood of financial impact and exposure based
on a current state of world scenario.
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).
›
Refer to the Basis of preparation 2025, available at
ubs.com/sustainability-reporting
, for more information
Annual Report 2025 |
Sustainability Statement | Other supplemental information 89
Climate-related metrics
The climate-related metrics in the table below provide information on climate-driven transition- and physical-risk-sensitive
exposure linked to traded products and issuer risk specifically for UBS AG (standalone), UBS Switzerland AG (standalone)
and UBS Europe SE (standalone).
Risk management – Climate-related metrics
For the year ended
31.12.25
31.12.24
Climate-related metrics (USD bn)
Exposure to climate-sensitive sectors, transition risk: Traded products, UBS AG (standalone)
1
0.55
0.70
Exposure to climate-sensitive sectors, transition risk: Traded products, UBS Switzerland AG (standalone)
1
0.80
1.27
Exposure to climate-sensitive sectors, transition risk: Traded products, UBS Europe SE (standalone)
1
0.05
0.09
Exposure to climate-sensitive sectors, transition risk: Issuer risk, UBS AG (standalone)
2
6.98
6.05
Exposure to climate-sensitive sectors, transition risk: Issuer risk, UBS Switzerland AG (standalone)
2
0.51
0.25
Exposure to climate-sensitive sectors, transition risk: Issuer risk, UBS Europe SE (standalone)
2
0.04
0.10
Exposure to climate-sensitive sectors, physical risk: Traded products, UBS AG (standalone)
1
1.24
1.23
Exposure to climate-sensitive sectors, physical risk: Traded products, UBS Switzerland AG (standalone)
1
0.09
0.21
Exposure to climate-sensitive sectors, physical risk: Traded products, UBS Europe SE (standalone)
1
0.26
0.24
Exposure to climate-sensitive sectors, physical risk: Issuer risk, UBS AG (standalone)
2
7.10
7.76
Exposure to climate-sensitive sectors, physical risk: Issuer risk, UBS Switzerland AG (standalone)
2
0.50
0.40
Exposure to climate-sensitive sectors, physical risk: Issuer risk, UBS Europe SE (standalone)
2
0.01
0.05
1
reverse repurchase agreements.
2
›
Refer to the Basis of preparation 2025, available at
ubs.com/sustainability-reporting
, for more information on the metrics’
definitions, approaches and scope
Scenario analysis
UBS has been using scenario-based approaches since 2014 to assess its exposure to climate-related transition and physical
risks. The table below summarizes scenarios used by UBS.
Scenario name
Developed
by
Used by
End of century
warming
Type
Description (as provided by the developing organization)
Early Action
UBS
UBS Group,
UBS Europe SE
+1.5°C by
2100. In
alignment with
the Paris
Agreement
Orderly
An ambitious transition begins immediately, with stringent climate policies limiting
global warming to 1.5°C. Carbon prices and regulations rise predictably, allowing
most firms to adjust smoothly, although carbon-intensive sectors face higher
costs. This creates short-term inflation and growth headwinds. Over the long term,
the effective transition substantially reduces physical risks and supports
sustainable economic growth. Benchmark: NGFS Net Zero 2050 scenario.
Current
Commitments
UBS
UBS Group
Above +2.0 °C
by 2100. NDCs
are insufficient
to limit global
warming to
below 2°C
Hot house
world
Under current climate pledges, emissions decline only modestly, driving global
warming beyond +2°C, resulting in moderate to severe physical risks. The modest
policy tightening limits transition impacts and does little to reduce fossil-fuel
dependence. Near
-
term macroeconomic effects remain mild, with minor growth
headwinds. As physical risks intensify, economies face increasing volatility,
persistent inflation pressures, and modest long
-
run productivity growth.
Benchmark: NGFS Nationally Determined Contributions scenario.
Failed Transition
UBS
UBS Group,
UBS Europe SE
+3.0°C by
2100. Due to a
lack of
coordinated
mitigation.
Hot house
world
A series of severe weather events triggers strong public and political pressure for
rapid action, leading to an abrupt tightening of climate policies. Carbon prices and
regulations rise sharply, causing a sudden repricing of exposed assets, particularly
in emission
-
intensive sectors. This combination of acute physical risks and abrupt
transition measures creates an inflationary shock, major market disruption, and a
global downturn as central banks raise rates. Public support then reverses, policies
are rolled back, and - over the long term - the lack of sustained climate action
leads to rising physical risks, persistent inflation pressures, and subdued economic
performance. Benchmark: NGFS Fragmented World, NGFS Current Policies.
30-year Baseline
UBS
UBS Europe SE
Above +2.0 °C
by 2100. NDCs
are insufficient
to limit global
warming to
below 2 °C.
Hot house
world
An outlook that outlines the most likely economic and financial developments over
the next ten years, complemented by long-term projections that reflect the macro
financial impacts of climate pledges over a 30-year horizon. Benchmark: NGFS
Nationally Determined Contributions.
Late Action
UBS
UBS Europe SE
Below + 2.0 °C
by 2100. Thanks
to delayed but
effective
policies.
Disorderly
A delayed and disorderly transition keeps climate policies unchanged for a decade,
despite rising physical risks. Strong growth, low inflation, and solid market
performance continue through these early years, while physical damages remain
manageable. In the second decade, abrupt and radical policies are introduced to
limit warming to below 2°C. Carbon prices surge, halting GDP growth, raising
unemployment, and pushing inflation higher. Tighter monetary policy follows.
After this turbulent adjustment, economic and financial conditions stabilize and
begin to recover. Benchmark: NGFS Delayed Transition.
Annual Report 2025 |
Sustainability Statement | Other supplemental information 90
Scenario name
Developed
by
Used by
End of century
warming
Type
Description (as provided by the developing organization)
Net Zero 2050
Network
for
Greening
the
Financial
System
(NGFS)
UBS Group,
UBS Europe SE
+1.4°C
Orderly
Net Zero 2050 limits global warming to 1.5°C through stringent climate policies
and innovation, reaching global net-zero CO₂ emissions around 2050. This
scenario assumes that ambitious climate policies are introduced immediately.
Carbon dioxide removal (CDR) is used to accelerate decarbonization but is kept to
the minimum level 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
limited overshoot (<
0.2°C) of 1.5°C in earlier years. Physical risks are relatively
low, but transition risks are high.
1
Delayed
Transition
NGFS
UBS Europe SE
+1.7°C
Disorderly
Delayed Transition assumes that global annual emissions do not decrease until
2030. 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 a well-below 2°C scenario 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 the Net Zero 2050 and Below 2°C scenarios.
1
Fragmented
World
NGFS
UBS Group,
UBS Europe SE
+2.4°C
Too little
too late
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.
1
Nationally
Determined
Contributions
NGFS
UBS Group,
UBS Europe SE
~2.3°C
Hot house
world
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 continues over the course
of the 21st century. Emissions decline but lead nonetheless to 2.3°C of warming
associated with moderate to severe physical risks. Transition risks are relatively
low.
1
Current Policies
NGFS
UBS Group,
UBS Europe SE
+3.0°C
Hot house
world
“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 “hot house world”.
1
1
Network for Greening the Financial System (2024). NGFS Climate Scenarios Technical Documentation.
Annual Report 2025 |
Sustainability Statement | Other supplemental information 91
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.
We are subject to separate, and sometimes conflicting, ESG regulations and regulator expectations in the various
jurisdictions in which UBS 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 further 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. 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 and deployment of artificial intelligence, 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, our compensation framework includes deferral periods for
stock awards, forfeiture provisions and clawback provisions for certain awards linked to business performance. We also
have individual caps on the proportion of fixed to variable pay for the members of the Group Executive Board (GEB), as
well as certain other employees. UBS is also required to maintain and enforce provisions requiring UBS to recover from
GEB members 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 2025 |
Sustainability Statement | Information pursuant to Art. 8 of the EU Taxonomy Regulation 92
Information on UBS AG standalone and UBS
Europe SE consolidated pursuant to Art. 8 of the EU
Taxonomy Regulation
The European Commission established the EU Taxonomy classification system through the adoption of the EU Taxonomy
Regulation (the Regulation).
1
information pursuant to Art. 19a or Art. 29a of Accounting Directive, to disclose how and to what extent their activities
are associated with environmentally sustainable activities. For financial institutions, this disclosure covers on-balance-
sheet, and off-balance-sheet exposures, trading book as well as certain income streams such as fees and commissions.
These disclosures are assessed 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 report EU Taxonomy key performance indicators (KPIs),
specifically taxonomy-eligible and taxonomy-aligned activities to demonstrate the extent to which their exposures relate
to environmentally sustainable economic activities, as defined by the Regulation. The EU Taxonomy reporting is based on
the prudential scope of consolidation, which for UBS AG is on a standalone basis as the prudential scope of consolidation
does not apply to UBS AG 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, neither of which meet the definition of a financial
conglomerate as set out in Directive 2002/87/EC.
Taxonomy-eligible activities are activities identified as being within the scope of Taxonomy’s technical screening under
the Regulation. Taxonomy-aligned activities represent the proportion of taxonomy-eligible activities that contribute
substantially to one or more environmental objectives, do not significantly harm any other environmental objectives and
comply with minimum safeguards, to the extent these apply to credit institutions.
The Green Asset Ratio (GAR) is a KPI calculated as the proportion of Taxonomy-aligned assets to total covered assets,
whereby:
–
the numerator is determined based on loans and advances, debt securities, equity instruments, repossessed collaterals,
and relevant KPIs reported by counterparties or issuers, or where applicable, information on the use of proceeds;
–
the denominator comprises total covered assets, and excludes expected credit loss allowance reported under IFRS
Accounting Standards. The denominator excludes financial assets held for trading, exposures to central banks, central
governments and supranational issuers, derivatives, cash and cash equivalents, on demand interbank loans, exposures
to entities not subject to CSRD
2
commodities.
Credit institutions are required to calculate KPIs based on turnover KPIs and, separately, the capital expenditure (CapEx)
KPIs reported by counterparties and investees, for on-balance-sheet and off-balance sheet exposures, including financial
guarantees provided, but excluding loan commitments, and also for assets under management (AuM), fees and
commissions income derived from products or services other than lending and asset management, and the trading book
portfolio. Consequently, all pre-defined templates are presented twice.
GAR KPI stock is calculated on period-end exposures, and GAR KPI flow is calculated for newly originated exposures
during the period (as detailed further below). The Regulation also requires disclosure of prior
-
year KPIs for comparison.
The Trading book KPI and Fees and Commission KPI are not required to be reported until 2028 pursuant to the Omnibus
Delegated Act
3
.
Because EU Taxonomy disclosures for financial institutions rely on information reported by counterparties, there is inherent
dependency on data availability and data quality of information reported by the counterparties. With the ongoing
implementation and improvements in reporting practices, the basis of preparation and disclosures may evolve in future
periods as data availability improves.
Limitations in implementation of the amended Disclosure Delegated Act and draft FAQs
In July 2025, the European Commission adopted a delegated act (’the Omnibus Delegated Act’) amending the Taxonomy
Disclosures, Climate and Environmental Delegated Acts, to simplify the application of the Regulation, by introducing
materiality considerations, revised KPI calculation methodologies, and deferral of the Trading Book KPI and Fees and
Commission KPI until 2028. These disclosures consider the guidance provided in the Omnibus Delegated Act and to the
extent practicable, draft FAQs
4
Annual Report 2025 |
Sustainability Statement | Information pursuant to Art. 8 of the EU Taxonomy Regulation 93
Basis of preparation for EU Taxonomy disclosures
Following the Omnibus Delegated Act, UBS AG (standalone) and UBS Europe SE (consolidated) opted to follow amended
Disclosures Delegated Act of 2025 and performed materiality assessments as specified in Article 4(1f) for their EU
Taxonomy Article 8 disclosures. For each relevant KPI, an evaluation was conducted to determine whether the cumulative
net turnover (total revenues determined based on IFRS Accounting Standards) related to the economic activities covered
by that KPI, constitutes at least 10% of the institution’s total net turnover. This assessment is performed individually for
each KPI. Where this threshold is not met, the KPI is not required to be disclosed. If total revenue at the counterparty
level is unavailable, KPI-relevant revenue is calculated using KPI-relevant counterparty exposures for the respective KPIs.
UBS AG (standalone) concluded that net turnover attributable to KPI-relevant revenues based on exposures to
counterparties subject to CSRD/EU Taxonomy does not exceed the 10% materiality threshold for any KPI (GAR stock,
GAR flow, FinGuar KPI, and AuM KPI). These KPIs are therefore not required and not disclosed accordingly. UBS Europe
SE (consolidated) determined that exposures to counterparties subject to CSRD/EU Taxonomy are material and therefore
reports relevant KPIs assessed as material (GAR stock, GAR flow) for the financial year 2025. This approach aligns with
regulatory expectations to focus reporting on information that is materially relevant to the institution.
The classification and total gross carrying amounts of the assets of UBS Europe SE consolidated were determined based
on IFRS Accounting Standards and attributed to the Taxonomy-eligible and Taxonomy-aligned activities of relevant
investees and counterparties.
Where use-of-proceeds information is unknown, eligibility and alignment are based on counterparties and investees
turnover or CapEx-based KPIs. If KPIs are not available, KPIs of the closest reporting parent are used, consistent with
Commission guidance
5
.
Non-climate-related environmental objectives (
Water and marine resources
,
Circular economy, Pollution
, and
Biodiversity
and ecosystems)
from 1 January 2026. As a result, limited counterparty information was available for earlier reporting years. EU Taxonomy
alignment for non-climate-related environmental objectives has been disclosed where counterparties have adopted the
relevant requirements.
EU Taxonomy data is sourced from an independent data provider and supplemented by manual searches where necessary.
Residential mortgages to households are considered Taxonomy-eligible regardless of property location or borrower
domicile. Due to current data limitations, these exposures are treated as not Taxonomy-aligned.
In the absence of specific guidance in the Regulation, and with reporting practice still evolving, these disclosures have
been prepared based on certain practical interpretations.
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 based on the following.
–
Where counterparties do not provide disaggregated alignment per environmental objective, amounts are shown only
in the “of which Taxonomy-aligned” column. As a result, the sum of the amounts presented under “substantial
contribution to each environmental objective” may differ from the “of which Taxonomy-aligned” column.
–
Where detailed use-of-proceeds data is unavailable, including in respect of environmentally sustainable bonds, the
assessment of taxonomy eligibility and taxonomy alignment are made at issuer level.
–
For the purposes of “GAR (flow)”, balance sheet positions, 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.
The “Summary of KPIs” table for UBS Europe SE consolidated summarizes UBS Europe SE KPIs for the year ended
31 December 2025, with further details disclosed in the tables below.
Annual Report 2025 |
Sustainability Statement | Information pursuant to Art. 8 of the EU Taxonomy Regulation 94
UBS Europe SE consolidated – Summary of KPIs
1
31.12.25
Total exposure to Taxonomy-aligned
activities (USD m)
KPI (%)
KPI (%)
% coverage (over
total assets) (%)
2
Non assessed
exposure (% of
covered assets)
(%)
Non assessed
exposure (% of
covered assets)
(%)
Turnover-based
CapEx-based
Turnover-based
CapEx-based
Turnover-based
CapEx-based
Main KPI
GAR stock
52
68
0.6
0.9
12.5
Total exposure to Taxonomy-aligned
activities (USD m)
KPI (%)
KPI (%)
% coverage (over
total assets) (%)
2
Non assessed
exposure (% of
covered assets)
(%)
Non assessed
exposure (% of
covered assets)
(%)
Turnover-based
CapEx-based
Turnover-based
CapEx-based
Turnover-based
CapEx-based
Additional KPIs
GAR (flow)
53
68
1.3
1.6
9.5
Trading book
Financial guarantees
Assets under management
Fees and commissions income
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 (%)
2
Assets excluded
from the
numerator of the
GAR (%)
3
Assets excluded
from the
denominator of
the GAR (%)
4
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 (%)
5
Assets excluded
from the
numerator of the
GAR (%)
5
Assets excluded
from the
denominator of
the GAR (%)
5
Additional KPIs
GAR flow
50
56
0.3
0.4
Financial guarantees
0.0
0.0
Assets under management
2,511
5,101
4.1
8.2
1 Within this table, 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 Proportion calculated as a percentage of the gross carrying amount of assets covered by KPI, relative to the banks’ total assets. 3 Article 7(2) and (3) and Section
1.1.2. of Annex V of the Disclosures Delegated Act. 4 Article 7(1) and Section 1.2.4 of Annex V of the Disclosures Delegated Act. 5 Left blank, as calculation implies determination of flows for amounts that are
not otherwise explicitly included by regulation in the flow KPI calculations.
Annual Report 2025 |
Sustainability Statement | Information pursuant to Art. 8 of the EU Taxonomy Regulation 95
The 2024 KPIs were prepared based on reporting requirements of the Disclosures Delegated Act that were applicable
before the amendments introduced by the Omnibus Delegated Act. Differences in denominator composition under the
Disclosures Delegated Act would have resulted in different GAR values had the amended rules applied. UBS Europe SE's
2024 GAR KPI would have been 0.4% (Turnover) and 0.4% (CapEx) under the Omnibus Delegated Act.
UBS Europe SE consolidated contributed 3.1% to the total assets of the UBS AG consolidated scope under IFRS
Accounting Standards. UBS Europe SE consolidated have had low KPIs for balance sheet stock and flow, because:
–
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.).
–
a significant proportion of the business, and, correspondingly, the total assets of UBS Europe SE, 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, due to the nature of their underlying business activity, such as Global Wealth Management
Lombard lending to private individuals.
–
exposures to financial undertakings typically show a low average reported GAR, attributable to data limitations,
restricted taxonomy coverage, and stringent alignment criteria.
Exposures to fossil gas and nuclear energy sectors were immaterial as of 31 December 2025.
Business strategy
As the EU taxonomy reporting evolves, and 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 insights into UBS’s climate strategy.
UBS’s approach to climate is guided by its climate transition plan. This plan underpins the firm’s ambition to support its
clients in the transition to a low-carbon world and embeds the consideration of climate-related risks and opportunities
across the organization. UBS aims to support the transition of its financing and investing clients toward low-carbon and
climate-resilient business models and while mobilizing private and institutional capital to facilitate an orderly transition.
UBS has set climate-related targets, including reducing scope 1 and 2 emissions to net zero by 2035 and addressing
financed emissions by aligning specified sectors with decarbonization pathways. The climate transition plan is included
in the annual objective-setting process and is overseen by the Board of Directors’ Corporate Culture and Responsibility
Committee. Currently, UBS’s climate transition plan does not cover all its business activities.
1
;
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; Commission
Delegated Regulation (EU) 2026/73 amending Disclosures Delegated Act, Climate Delegated Act and Environmental Delegated Act.
2
Directive, once transposed into national law.
3
Commission Delegated Regulation (EU) 2026/73 of 4 July 2025 amending Delegated Regulation (EU) 2021/2178 as regards the simplification
of the content and presentation of information to be disclosed concerning environmentally sustainable activities and Delegated Regulations
(EU) 2021/2139 and (EU) 2023/2486 as regards simplification of certain technical screening criteria for determining whether economic
activities cause no significant harm to environmental objectives.
4
8 of the EU Taxonomy Regulation, as amended by the Omnibus Delegated Act, on the reporting of Taxonomy-eligible and Taxonomy-aligned
economic activities and assets (draft fourth Commission notice).
5
the EU Taxonomy Regulation on the reporting of Taxonomy -eligible and Taxonomy-aligned economic activities and assets (third Commission
notice).
Annual Report 2025 |
Sustainability Statement | Information pursuant to Art. 8 of the EU Taxonomy Regulation | UBS Europe SE consolidated 96
UBS Europe SE consolidated
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.
Annual Report 2025 |
Sustainability Statement | Information pursuant to Art. 8 of the EU Taxonomy Regulation | UBS Europe SE consolidated 97
Assets for the calculation of the GAR
Assets for the calculation of the GAR stock (Turnover)
31.12.25
Total
[gross]
carrying
amount
Of which
Taxonomy-
eligible
Of which Taxonomy-aligned
Breakdown per environmental objective
Of which
Use of
Proceeds
Of which
transitional
Of
which
enabling
USD m
Climate
Change
Mitigation
(CCM)
Climate
Change
Adaptation
(CCA)
Water
and
marine
resources
(WTR)
Circular
economy
(CE)
Pollution
(PPC)
Biodiversity
and
Ecosystems
(BIO)
GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity instruments not
HfT eligible for GAR calculation
Financial undertakings
Loans and advances
Debt securities, including UoP
Equity instruments
Non-financial undertakings
Loans and advances
Debt securities, including UoP
Equity instruments
Households
of which loans collateralised by residential immovable
property
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
Exposures included on voluntary basis
Total GAR assets
Assets not covered for GAR calculation
Central governments and Supranational issuers
Central banks exposure
Trading book
Undertakings and entities not subjected to CSRD
SMEs and undertakings (other than SMEs) not subject to
CSRD disclosure obligations
Loans and advances
1
of which loans collateralised by commercial immovable
property
of which building renovation loans
Debt securities
Equity instruments
Non-EU country counterparties not subject to CSRD
disclosure obligations
Loans and advances
1
Debt securities
Equity instruments
Derivatives
On demand interbank loans
Cash and cash-related assets
Other categories of assets (e.g. Goodwill, commodities etc.)
Total assets
Off-balance sheet exposures (stock) to Undertakings subject to CSRD
disclosure obligations and local governments
Financial guarantees
Assets under management
of which debt securities
of which equity instruments
1 Includes unknown use of proceed financing to households and local governments.
Annual Report 2025 |
Sustainability Statement | Information pursuant to Art. 8 of the EU Taxonomy Regulation | UBS Europe SE consolidated 98
31.12.25
Non-assessed exposures
Of which financing
non-material activities
of counterparties
Of which exposures
financing
counterparties
reporting in accordance
with Article 7(9)
Of which not assessed
considered non-
material by the credit
institution
USD m
GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity instruments not HfT
eligible for GAR calculation
Financial undertakings
Loans and advances
Debt securities, including UoP
Equity instruments
Non-financial undertakings
Loans and advances
Debt securities, including UoP
Equity instruments
Households
of which loans collateralised by residential immovable
property
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
Exposures included on voluntary basis
Total GAR assets
Assets not covered for GAR calculation
Central governments and Supranational issuers
Central banks exposure
Trading book
Undertakings and entities not subjected to CSRD
SMEs and undertakings (other than SMEs) not subject to CSRD
disclosure obligations
Loans and advances
of which loans collateralised by commercial immovable
property
of which building renovation loans
Debt securities
Equity instruments
Non-EU country counterparties not subject to CSRD disclosure
obligations
Loans and advances
Debt securities
Equity instruments
Derivatives
On demand interbank loans
Cash and cash-related assets
Other categories of assets (e.g. Goodwill, commodities etc.)
Total assets
Off-balance sheet exposures (stock) to Undertakings subject to CSRD
disclosure obligations and local governments
Financial guarantees
Assets under management
of which debt securities
of which equity instruments
Annual Report 2025 |
Sustainability Statement | Information pursuant to Art. 8 of the EU Taxonomy Regulation | UBS Europe SE consolidated 99
Assets for the calculation of the GAR stock (CapEx)
USD m
31.12.25
Total [gross]
carrying
amount
Of which
Taxonomy-
eligible
Of which Taxonomy-aligned
Breakdown per environmental objective
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
Climate
Change
Mitigation
(CCM)
Climate
Change
Adaptation
(CCA)
Water
and
marine
resources
(WTR)
Circular
economy
(CE)
Pollution
(PPC)
Biodiversity
and
Ecosystems
(BIO)
GAR - Covered assets in both numerator and denominator
0
Loans and advances, debt securities and equity instruments not HfT
eligible for GAR calculation
Financial undertakings
Loans and advances
Debt securities, including UoP
Equity instruments
Non-financial undertakings
Loans and advances
Debt securities, including UoP
Equity instruments
Households
of which loans collateralised by residential immovable property
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
Exposures included on voluntary basis
Total GAR assets
Assets not covered for GAR calculation
Central governments and Supranational issuers
Central banks exposure
Trading book
Undertakings and entities not subjected to CSRD
SMEs and undertakings (other than SMEs) not subject to CSRD
disclosure obligations
Loans and advances
2
of which loans collateralised by commercial immovable
property
of which building renovation loans
Debt securities
Equity instruments
Non-EU country counterparties not subject to CSRD disclosure
obligations
Loans and advances
2
Debt securities
Equity instruments
Derivatives
On demand interbank loans
Cash and cash-related assets
Other categories of assets (e.g. Goodwill, commodities etc.)
Total assets
Off-balance sheet exposures (stock) to Undertakings subject to CSRD
disclosure obligations and local governments
Financial guarantees
Assets under management
of which debt securities
of which equity instruments
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 unknown use of proceed financing to households and local governments.
Annual Report 2025 |
Sustainability Statement | Information pursuant to Art. 8 of the EU Taxonomy Regulation | UBS Europe SE consolidated 100
31.12.25
Non-assessed exposures
Of which financing non-
material activities of
counterparties
Of which exposures
financing counterparties
reporting in accordance
with Article 7(9)
Of which not assessed
considered non-material
by the credit institution
USD m
GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity instruments not HfT
eligible for GAR calculation
Financial undertakings
Loans and advances
Debt securities, including UoP
Equity instruments
Non-financial undertakings
Loans and advances
Debt securities, including UoP
Equity instruments
Households
of which loans collateralised by residential immovable property
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
Exposures included on voluntary basis
Total GAR assets
Assets not covered for GAR calculation
Central governments and Supranational issuers
Central banks exposure
Trading book
Undertakings and entities not subjected to CSRD
SMEs and undertakings (other than SMEs) not subject to CSRD
disclosure obligations
Loans and advances
of which loans collateralised by commercial immovable
property
of which building renovation loans
Debt securities
Equity instruments
Non-EU country counterparties not subject to CSRD disclosure
obligations
Loans and advances
Debt securities
Equity instruments
Derivatives
On demand interbank loans
Cash and cash-related assets
Other categories of assets (e.g. Goodwill, commodities etc.)
Total assets
Off-balance sheet exposures (stock) to Undertakings subject to CSRD
disclosure obligations and local governments
Financial guarantees
Assets under management
of which debt securities
of which equity instruments
Annual Report 2025 |
Sustainability Statement | Information pursuant to Art. 8 of the EU Taxonomy Regulation | UBS Europe SE consolidated 101
Assets for the calculation of the GAR flow (Turnover)
For the year ended
31.12.25
Total
[gross]
carrying
amount
Of which
Taxonomy-
eligible
Of which Taxonomy-aligned
Breakdown per environmental objective
Of which
Use of
Proceeds
Of which
transitional
Of
which
enabling
USD m
Climate
Change
Mitigation
(CCM)
Climate
Change
Adaptation
(CCA)
Water
and
marine
resources
(WTR)
Circular
economy
(CE)
Pollution
(PPC)
Biodiversity
and
Ecosystems
(BIO)
GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity instruments not
HfT eligible for GAR calculation
Financial undertakings
Loans and advances
Debt securities, including UoP
Equity instruments
Non-financial undertakings
Loans and advances
Debt securities, including UoP
Equity instruments
Households
of which loans collateralised by residential immovable
property
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
Exposures included on voluntary basis
Total GAR assets
Assets not covered for GAR calculation
Central governments and Supranational issuers
Central banks exposure
Trading book
Undertakings and entities not subjected to CSRD
SMEs and undertakings (other than SMEs) not subject to
CSRD disclosure obligations
Loans and advances
2
of which loans collateralised by commercial immovable
property
of which building renovation loans
Debt securities
Equity instruments
Non-EU country counterparties not subject to CSRD
disclosure obligations
Loans and advances
2
Debt securities
Equity instruments
Derivatives
On demand interbank loans
Cash and cash-related assets
Other categories of assets (e.g. Goodwill, commodities etc.)
Total assets
Off-balance sheet exposures (stock) to Undertakings subject to CSRD
disclosure obligations and local governments
Financial guarantees
Assets under management
of which debt securities
of which equity instruments
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 unknown use of proceed financing to households and local governments.
Annual Report 2025 |
Sustainability Statement | Information pursuant to Art. 8 of the EU Taxonomy Regulation | UBS Europe SE consolidated 102
For the year ended
31.12.25
Non-assessed exposures
Of which financing
non-material activities
of counterparties
Of which exposures
financing
counterparties
reporting in accordance
with Article 7(9)
Of which not assessed
considered non-
material by the credit
institution
USD m
GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity instruments not HfT
eligible for GAR calculation
Financial undertakings
Loans and advances
Debt securities, including UoP
Equity instruments
Non-financial undertakings
Loans and advances
Debt securities, including UoP
Equity instruments
Households
of which loans collateralised by residential immovable
property
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
Exposures included on voluntary basis
Total GAR assets
Assets not covered for GAR calculation
Central governments and Supranational issuers
Central banks exposure
Trading book
Undertakings and entities not subjected to CSRD
SMEs and undertakings (other than SMEs) not subject to CSRD
disclosure obligations
Loans and advances
of which loans collateralised by commercial immovable
property
of which building renovation loans
Debt securities
Equity instruments
Non-EU country counterparties not subject to CSRD disclosure
obligations
Loans and advances
Debt securities
Equity instruments
Derivatives
On demand interbank loans
Cash and cash-related assets
Other categories of assets (e.g. Goodwill, commodities etc.)
Total assets
Off-balance sheet exposures (stock) to Undertakings subject to CSRD
disclosure obligations and local governments
Financial guarantees
Assets under management
of which debt securities
of which equity instruments
Annual Report 2025 |
Sustainability Statement | Information pursuant to Art. 8 of the EU Taxonomy Regulation | UBS Europe SE consolidated 103
Assets for the calculation of the GAR flow (CapEx)
USD m
For the year ended
31.12.25
Total [gross]
carrying
amount
Of which
Taxonomy-
eligible
Of which Taxonomy-aligned
Breakdown per environmental objective
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
Climate
Change
Mitigation
(CCM)
Climate
Change
Adaptation
(CCA)
Water
and
marine
resources
(WTR)
Circular
economy
(CE)
Pollution
(PPC)
Biodiversity
and
Ecosystems
(BIO)
GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity instruments not HfT
eligible for GAR calculation
Financial undertakings
Loans and advances
Debt securities, including UoP
Equity instruments
Non-financial undertakings
Loans and advances
Debt securities, including UoP
Equity instruments
Households
of which loans collateralised by residential immovable property
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
Exposures included on voluntary basis
Total GAR assets
Assets not covered for GAR calculation
Central governments and Supranational issuers
Central banks exposure
Trading book
Undertakings and entities not subjected to CSRD
SMEs and undertakings (other than SMEs) not subject to CSRD
disclosure obligations
Loans and advances
2
of which loans collateralised by commercial immovable
property
of which building renovation loans
Debt securities
Equity instruments
Non-EU country counterparties not subject to CSRD disclosure
obligations
Loans and advances
2
Debt securities
Equity instruments
Derivatives
On demand interbank loans
Cash and cash-related assets
Other categories of assets (e.g. Goodwill, commodities etc.)
Total assets
Off-balance sheet exposures (stock) to Undertakings subject to CSRD
disclosure obligations and local governments
Financial guarantees
Assets under management
of which debt securities
of which equity instruments
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 unknown use of proceed financing to households and local governments.
Annual Report 2025 |
Sustainability Statement | Information pursuant to Art. 8 of the EU Taxonomy Regulation | UBS Europe SE consolidated 104
For the year ended
31.12.25
Non-assessed exposures
Of which financing non-
material activities of
counterparties
Of which exposures
financing counterparties
reporting in accordance
with Article 7(9)
Of which not assessed
considered non-material
by the credit institution
USD m
GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity instruments not HfT
eligible for GAR calculation
Financial undertakings
Loans and advances
Debt securities, including UoP
Equity instruments
Non-financial undertakings
Loans and advances
Debt securities, including UoP
Equity instruments
Households
of which loans collateralised by residential immovable property
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
Exposures included on voluntary basis
Total GAR assets
Assets not covered for GAR calculation
Central governments and Supranational issuers
Central banks exposure
Trading book
Undertakings and entities not subjected to CSRD
SMEs and undertakings (other than SMEs) not subject to CSRD
disclosure obligations
Loans and advances
of which loans collateralised by commercial immovable
property
of which building renovation loans
Debt securities
Equity instruments
Non-EU country counterparties not subject to CSRD disclosure
obligations
Loans and advances
Debt securities
Equity instruments
Derivatives
On demand interbank loans
Cash and cash-related assets
Other categories of assets (e.g. Goodwill, commodities etc.)
Total assets
Off-balance sheet exposures (stock) to Undertakings subject to CSRD
disclosure obligations and local governments
Financial guarantees
Assets under management
of which debt securities
of which equity instruments
Annual Report 2025 |
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GAR sector information
GAR sector information (Turnover)
Breakdown by sector - NACE 4 digits level
(code and label)
(USD m)
1
31.12.25
Total [Gross]
carrying
amount
Of which
Taxonomy
eligible
Of which
Taxonomy
aligned
Climate
Change
Mitigation
(CCM)
Climate
Change
Adaptation
(CCA)
Water and
marine
resources
(WTR)
Circular
economy (CE)
Pollution
(PPC)
Biodiversity
and
Ecosystems
(BIO)
6419 - Other monetary intermediation
6492 - Other credit granting
6810 - Buying and selling of own real estate
2
6499 - Other financial service activities, except insurance and pension funding n.e.c.
6612 - Security and commodity contracts brokerage
Nuclear Activities
Fossil Gas Activities
Of which non-assessed exposures
1 The information included in this table represents exposures in banking book as reported in table Assets for the calculation of the GAR stock (Turnover). 2 Loans to households.
GAR sector information (CapEx)
Breakdown by sector - NACE 4 digits level
(code and label)
(USDm)
1
31.12.25
Total [Gross]
carrying
amount
Of which
Taxonomy
eligible
Of which
Taxonomy
aligned
Climate
Change
Mitigation
(CCM)
Climate
Change
Adaptation
(CCA)
Water and
marine
resources
(WTR)
Circular
economy (CE)
Pollution
(PPC)
Biodiversity
and
Ecosystems
(BIO)
6419 - Other monetary intermediation
6492 - Other credit granting
6810- Buying and selling of own real estate
2
6499 - Other financial service activities, except insurance and pension funding n.e.c.
6612 - Security and commodity contracts brokerage
Nuclear Activities
Fossil Gas Activities
Of which non-assessed exposures
1 The information included in this table represents exposures in banking book as reported in table Assets for the calculation of the GAR stock (CapEx). 2 Loans to households.
Annual Report 2025 |
Sustainability Statement | Information pursuant to Art. 8 of the EU Taxonomy Regulation | UBS Europe SE consolidated 106
GAR KPI stock
GAR KPI stock (Turnover)
% (compared to corresponding total covered assets in the
denominator)
1
31.12.25
Taxonomy-
eligible
Taxonomy aligned
Proportion of
Taxonomy
aligned in
Taxonomy
eligible
Non-
assessed
exposures
Breakdown per environmental objective
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
Climate
Change
Mitigation
(CCM)
Climate
Change
Adaptation
(CCA)
Water
and
marine
resources
(WTR)
Circular
economy
(CE)
Pollution
(PPC)
Biodiversity
and
Ecosystems
(BIO)
GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
Financial undertakings
Loans and advances
Debt securities, including UoP
Equity instruments
Non-financial undertakings
Loans and advances
Debt securities, including UoP
Equity instruments
Households
of which loans collateralised by residential
immovable property
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
Exposures included on voluntary basis
GAR - Total GAR assets
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 stock (Turnover).
GAR KPI stock (CapEx)
% (compared to corresponding total covered assets in the
denominator)
1
31.12.25
Taxonomy-
eligible
Taxonomy aligned
Proportion
of Taxonomy
aligned in
Taxonomy
eligible
Non-
assessed
exposures
Breakdown per environmental objective
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
Climate
Change
Mitigation
(CCM)
Climate
Change
Adaptation
(CCA)
Water
and
marine
resources
(WTR)
Circular
economy
(CE)
Pollution
(PPC)
Biodiversity
and
Ecosystems
(BIO)
GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
Financial undertakings
Loans and advances
Debt securities, including UoP
Equity instruments
Non-financial undertakings
Loans and advances
Debt securities, including UoP
Equity instruments
Households
of which loans collateralised by residential
immovable property
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
Exposures included on voluntary basis
GAR - Total GAR assets
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 stock (CapEx).
Annual Report 2025 |
Sustainability Statement | Information pursuant to Art. 8 of the EU Taxonomy Regulation | UBS Europe SE consolidated 107
GAR KPI flow
GAR KPI flow (Turnover)
% (compared to corresponding total covered assets in the
denominator)
1
For the year ended
31.12.25
Taxonomy-
eligible
Taxonomy aligned
Proportion of
Taxonomy
aligned in
Taxonomy
eligible
Non-
assessed
exposures
Breakdown per environmental objective
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
Climate
Change
Mitigation
(CCM)
Climate
Change
Adaptation
(CCA)
Water and
marine
resources
(WTR)
Circular
economy
(CE)
Pollution
(PPC)
Biodiversity
and
Ecosystems
(BIO)
GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity instruments
not HfT eligible for GAR calculation
Financial undertakings
Loans and advances
Debt securities, including UoP
Equity instruments
Non-financial undertakings
Loans and advances
Debt securities, including UoP
Equity instruments
Households
of which loans collateralised by residential immovable
property
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
Exposures included on voluntary basis
GAR - Total GAR assets
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 flow (Turnover).
GAR KPI flow (CapEx)
% (compared to corresponding total covered assets in the
denominator)
1
For the year ended
31.12.25
Taxonomy-
eligible
Taxonomy aligned
Proportion of
Taxonomy
aligned in
Taxonomy
eligible
Non-
assessed
exposures
Breakdown per environmental objective
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
Climate
Change
Mitigation
(CCM)
Climate
Change
Adaptation
(CCA)
Water and
marine
resources
(WTR)
Circular
economy
(CE)
Pollution
(PPC)
Biodiversity
and
Ecosystems
(BIO)
GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity instruments
not HfT eligible for GAR calculation
Financial undertakings
Loans and advances
Debt securities, including UoP
Equity instruments
Non-financial undertakings
Loans and advances
Debt securities, including UoP
Equity instruments
Households
of which loans collateralised by residential immovable
property
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
Exposures included on voluntary basis
GAR - Total GAR assets
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 flow (CapEx).
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 9, 2026