Sustainability Report 2020 - UBS

1 Sustainability Report 2020 Based on GRI StandardsServing clients sustainable fi nance needs USD 793 billion in core sustainableinvestment assets (62% increase) USD billion directed into SDG-relatedimpact investments USD billion in Climate Awarestrategies 33 green, social and Sustainability bondtransactions supported 100% of assets of UBS retirement savingsfunds converted into sustainableinvestments (~ USD 9 billion)Shaping a high-performing organization 26% of Directors and above are women of UK / of US employeesare from underrepresented ethnicities atDirector level & above EQUAL-SALARY certifi cation for equalpay practices in Switzerland, US, UK,Hong Kong and SingaporeTransitioning to a low-carbon economy share of carbon-related assets onbanking balance sheet USD 161 billion climate-relatedsustainable investment assets(49% increase) 49 oil and gas, and utilities companieswere actively engaged on climate topics 100% of our electricity consumptionsourced from renewable sourcesLeader in key Sustainability ratings Industry group leader (Dow JonesSustainability Indices) Climate A List (CDP) AA rating (MSCI)

2 Top 50 World s Most AttractiveEmployers (Universum)Addressing societal challenges USD 168 million in donations raised byUBS Optimus Foundation (74% increase) USD 30 million committed to COVID-19-related aid projects supporting thecommunities 519,534 benefi ciaries reached throughstrategic community affairs activities million people s well-being improvedthrough UBS Optimus FoundationactivitiesWhat we achieved in 20202020 Key terms and defi nitionsSDGs: The 17 United Nations (UN) Sustainable Development Goals (SDGs) of the 2030 Agenda for Sustainable Development apply universally to all. With the SDGs, countries are mobilizing efforts to end all forms of poverty, fi ght inequalities and tackle climate change, while ensuring that no one is left fi nanceCore sustainable investments: Sustainable investment (SI) products that involve a strict and diligent asset selection process through either exclusions (of companies / sectors from portfolios where the companies / sectors are not aligned to an investor s values) or positive selections (such as best-in-class, thematic or ESG integration and impact investing).

3 Core SI categories: Integration Sustainability focus: Strategies where Sustainability is an explicit part of the investment guidelines, universe, selection, and / or investment ESG Integration: Strategies that integrate environmental, social, and governance (ESG) factors into fundamental fi nancial analysis to improve risk / return. Impact investing: Strategies where the intention is to generate measurable environmental and social impact alongside fi nancial : SI products from third-party providers applying a strict and diligent asset selection : Strategies that exclude companies from portfolios where they are not aligned to an investor s values. Includes customized screening services (single or multiple exclusion criteria).

4 Other SI categories: Norms-based screening assets: Invested assets that fall under the application of a UBS policy on the prohibition of investment in and indirect fi nancing of companies involved in the development, production or purchase of anti-personnel mines and cluster munitions, and do not otherwise qualify as a core , social and Sustainability bonds: Debt instruments with a commitment to use the proceeds to (re-)fi nance green or sustainable projects, aligned with the voluntary guidelines in the pertinent International Capital Market Association (ICMA) Principles. Climate actionCarbon-related assets: Assets tied to the energy and utilities sectors (Global Industry Classifi cation Standard), excluding renewables, utilities, and nuclear 1: accounts for direct greenhouse gas (GHG) emissions by UBS.

5 Scope 2: accounts for indirect GHG emissions associated with the generation of imported / purchased electricity (grid average emission factor), heat or on sustainabilityOur achievements, progress and goals at a glanceServing clients sustainablefinance needs USD 793 billion in core sustainableinvestment assets (62% increase) USD billion directed into SDG-relatedimpact investments USD billion in Climate Awarestrategies 33 green, social and Sustainability bondtransactions supported 100% of assets of UBS retirement savingsfunds converted into sustainableinvestments (~ USD 9 billion)Shaping a high-performingorganization 26% of Directors and above are women of UK / of US employeesare from underrepresented ethnicities atDirector level & above EQUAL-SALARY certifi cation for equalpay practices in Switzerland, US, UK,Hong Kong and SingaporeTransitioning to alow-carbon economy share of carbon-related assets onbanking balance sheet USD 161 billion climate-relatedsustainable investment assets(49% increase) 49 oil and gas, and utilities companieswere actively engaged on climate topics 100% of our electricity consumptionsourced from renewable sourcesLeader in keysustainability ratings Industry group leader (Dow JonesSustainability Indices) Climate A List (CDP) AA rating (MSCI)

6 Top 50 World s Most AttractiveEmployers (Universum)Addressing societalchallenges USD 168 million in donations raised byUBS Optimus Foundation (74% increase) USD 30 million committed to COVID-19-related aid projects supporting thecommunities 519,534 benefi ciaries reached throughstrategic community affairs activities million people s well-being improvedthrough UBS Optimus FoundationactivitiesWhat we achieved in 20202020 Key terms and definitionsSDGs: The 17 United Nations (UN) Sustainable Development Goals (SDGs) of the 2030 Agendafor Sustainable Development apply universally to all. With the SDGs, countries are mobilizingefforts to end all forms of poverty, fight inequalities and tackle climate change, while ensuringthat no one is left financeCore sustainable investments: Sustainable investment (SI) products that involve a strict anddiligent asset selection process through either exclusions (of companies / sectors from portfolioswhere the companies / sectors are not aligned to an investor s values) or positive selections (suchas best-in-class, thematic or ESG integration and impact investing).

7 Core SI categories: Integration Sustainability focus: Strategies where Sustainability is an explicitpart of the investment guidelines, universe, selection, and / or investment ESG Integration: Strategies that integrate environmental, social, and governance(ESG) factors into fundamental fi nancial analysis to improve risk / investing: Strategies where the intention is to generate measurable environmental andsocial impact alongside fi nancial : SI products from third-party providers applying a strict and diligent asset : Strategies that exclude companies from portfolios where they are not aligned to aninvestor s values. Includes customized screening services (single or multiple exclusion criteria).Other SI categories: Norms-based screening assets: Invested assets that fall under the applicationof a UBS policy on the prohibition of investment in and indirect financing of companies involvedin the development, production or purchase of anti-personnel mines and cluster munitions, anddo not otherwise qualify as a core , social and Sustainability bonds: Debt instruments with a commitment to use the proceedsto (re-)fi nance green or sustainable projects, aligned with the voluntary guidelines in thepertinent International Capital Market Association (ICMA) actionCarbon-related assets.

8 Assets tied to the energy and utilities sectors (Global Industry ClassificationStandard), excluding renewables, utilities, and nuclear 1: accounts for direct greenhouse gas (GHG) emissions by 2: accounts for indirect GHG emissions associated with the generation of imported /purchased electricity (grid average emission factor), heat or on sustainabilityOur achievements, progress and goals at a glanceTo be a leader in sustainable fi nanceacross all client segments To be a recognized innovator and thought leader in philanthropy To be an industry leader for sustainable business practices To be an employer of choice Sustainable fi nanceSustainable fi nancePhilantropyPhilantropyBusiness practicesBusiness practicesEmployer of choiceEmployer of choiceWe want to be the fi nancial provider of choice for clients who wish to mobilize capital towards the achievement of the 17 Sustainable Development Goals and the orderly transition to a low-carbon economy.

9 Goals (select)Goals (select)Our commitment:Our ambition:Full implementation of Task Force on Climate-related Financial Disclosures recommendationsFull implementation of the Principles for Responsible Banking Full implementation of Net Zero Asset Managers initiative20212022202320252050 Global Wealth Management to continue to mainstream sustainable and impact investmentsAdd USD 70 billion of invested assets classifi ed as impact investing or with Sustainability focusRaise USD 150 million in donations and improve the lives of million benefi ciaries through community investment and client philanthropyRaise USD 1 billion in donations and reach 26 million benefi ciaries through community investment and client philanthropyAdvance biodiversity and human rights strategiesAchieve net zero

10 Emissions for all scope 1 and 2 activities Continue leadership in key HR rankingsIncrease the percentage of Director level and above positions fi lled by women (aspiration to reach 30%) Sustainability disclosureGRI (Global Reporting Initiative): Provider of the world s most widely used Sustainability disclosure standards (the GRI Standards).TCFD (Task Force on Climate-relate Financial Disclosures): Provider of climate-related fi nancial disclosure recommendations designed to help companies provide better information to support informed capital allocation. SASB ( Sustainability Accounting Standards Board): Provider of disclosure standards (the SASB Standards) to guide the disclosure of fi nancially material Sustainability information by companies to their investors.