Credit Suisse : 2023 UBS Sustainability Report

Sustainability Report 2023

Thinking and acting with the long term in mind

Table of contents

Page

Introduction .................................................................................................................................................................................... 3

The importance of sustainability and culture to UBS ................................................................................................................... 3

About this report ....................................................................................................................................................................... 5

Banking on sustainability ........................................................................................................................................................... 8

Our integration journey - at a glance ......................................................................................................................................... 9

Our business model ................................................................................................................................................................. 11

Sustainability drives our ambitions ........................................................................................................................................... 13

Strategy ......................................................................................................................................................................................... 14

Our sustainability and impact strategy ...................................................................................................................................... 14

Our aspirations and progress ................................................................................................................................................... 15

Governance ................................................................................................................................................................................... 17

Our sustainability governance .................................................................................................................................................. 17

Environment .................................................................................................................................................................................. 21

Contributing to a low-carbon economy ................................................................................................................................... 21

Supporting our clients' low-carbon transition ........................................................................................................................... 27

Reducing our environmental impact ......................................................................................................................................... 38

Monitoring the environmental impact of our supply chain ....................................................................................................... 42

Managing the risks of climate change to our business .............................................................................................................. 44

Social .............................................................................................................................................................................................. 45

People and culture make the difference ................................................................................................................................... 45

Driving social impact ................................................................................................................................................................ 54

Respecting human rights ......................................................................................................................................................... 57

Managing our supply chain responsibly .................................................................................................................................... 58

Supporting opportunities ............................................................................................................................................................ 61

Global Wealth Management .................................................................................................................................................... 66

Asset Management .................................................................................................................................................................. 68

Investment Bank ...................................................................................................................................................................... 71

Personal & Corporate Banking ................................................................................................................................................. 73

Managing sustainability and climate risks ................................................................................................................................. 75

Sustainability and climate risk management framework ........................................................................................................... 76

Appendix ..................................................................................................................................................................................... 100

Appendix 1 - Governance ...................................................................................................................................................... 100

Appendix 2 - Environment ..................................................................................................................................................... 104

Appendix 3 - Entity-specific disclosures for Credit Suisse AG .................................................................................................. 116

Appendix 4 - Other supplemental information ....................................................................................................................... 130

2

Introduction

The importance of sustainability and culture to UBS

The acquisition of the Credit Suisse Group made 2023 an exceptional year in our firm's history. We completed the first-ever combination of two global systemically important financial institutions (G-SIFIs) and have embarked on a major program to integrate the two banks. Our sustainability frameworks are no exception. We have made significant progress in aligning our frameworks for the combined firm and will continue with this alignment in 2024 and beyond. 2023 also saw significant developments in corporate disclosure requirements, particularly the European Union's Corporate Sustainability Reporting Directive (the CSRD), as well as in the availability of emissions data and standards. In addition, market volatility and the conflicts in Ukraine and the Middle East presented new challenges for sustainable investing.

Integration of Credit Suisse

We have made significant progress in integrating UBS and Credit Suisse's sustainability policy frameworks and processes:

• - We have implemented a revised sustainability and climate risk policy framework and associated processes to reflect the full suite of activities of the combined business and a consistent approach.

• - We are minimizing our scope 1 and 2 greenhouse gas (GHG) emissions through energy efficiencies and by switching to more sustainable energy sources, across the combined firm.

• - We have developed updated scope 3 emissions targets reflecting the combined profile of the combined firm and evolving regulatory and data standards. We have updated our previous emissions targets for real estate mortgage lending, as well as the fossil fuels, power generation and cement sectors, reflecting both the combined portfolios of the two firms and methodology changes. We have added targets for shipping, and iron and steel based on the materiality of these sectors in our combined financing portfolio and have dropped sectors that are not material.

• - We have made progress towards the alignment of our sustainable investing products standards across the firm and will benchmark Credit Suisse's products against these standards. We expect to incorporate products that meet our standards across our platforms in 2024.

- We have integrated our performance evaluation and compensation structures, including our fair pay practice.

We are also aligning social plans or severance payments at UBS and Credit Suisse in the respective country to ensure that all employees are treated equally.

We still have significant milestones to deliver in 2024 and beyond. We firmly believe, however, that our activities are already strengthening our creation of long-term value for our shareholders, clients and other stakeholders. As we progress with the integration, we aim to leverage the most effective ideas and capabilities of both organizations as we strive to build a highly dependable and trustworthy firm globally.

We strongly believe that institutions are defined by their culture and, with our "three keys to success", we have an established concept for advancing the culture across our combined organization. Our culture is decisive in achieving our ambitions, and client centricity, accountability with integrity, collaboration, and risk management are all areas where our combined strengths can make the biggest difference and as such, are a key priority.

We continued to make good progress on the execution of our Group-wide sustainability and impact strategy in 2023, as outlined in this Sustainability Report. While market volatility and rising geopolitical tensions over the course of 2023 proved challenging, flows into sustainable funds and ETFs remained positive. Sustainable investing also gained ground in alternative markets, including real estate and hedge funds. Against this backdrop, we saw sustainable assets under management increase. Overall, our efforts across sustainability and culture have been reflected in solid results in key environmental, social, governance (ESG) ratings.

Trends

Policymakers and regulators increasingly require corporations to embed ESG considerations within their own operations and value chains, and to disclose them. One example of this is the CSRD, which came into effect in 2023 and will require compliant reporting within annual financial reporting for the first wave of in-scope entities for fiscal year 2024, with reporting in 2025. While we welcome this move toward greater transparency and reliability of information, we continue to seek greater alignment across existing and emerging disclosure requirements in order to enable greater comparability.

While climate continues to dominate the sustainable finance landscape, there has been a notable shift in emphasis. After two years of formulating and refining net-zero commitments across industries, the ongoing progress in methodologies, data and transition finance frameworks has allowed discussions to shift toward the quality and ambition level of net-zero targets. Transition has become more widely recognized as a requisite path. As our clients look to a shift in their business models to prepare for the future, the fast pace of technological innovation, along with high inflation and input costs, are key considerations as they develop their transition strategies.

Emerging trends which have all gained momentum in 2023 include nature, impact transparency and blended finance. The most advanced of these is nature where there has been a growing awareness of the impact of society on the world's biodiversity and natural capital. New frameworks are being rolled out to enhance transparency, including the release of the recommendations of the Taskforce on Nature-related Financial Disclosures (the TNFD). This will improve the availability of good, economy-wide nature and biodiversity data, contributing toward greater transparency and providing an important tool for investors and companies alike.

Turning to impact, the increasing disclosure requirements and growing demand for transparency from clients are encouraging the development of new measurement methodologies. In the last year, we have also seen governments and development finance institutions launch blended finance initiatives, using capital from public or philanthropic sources to increase private sector investment in sustainable development. In the past decade, such initiatives have mobilized over USD 200 billion in capital toward sustainable development in developing countries and we see significant opportunity for this to grow further.

Our commitment

By 2050, our ambition is to achieve net-zero greenhouse gas emissions across our scope 1 and 2, and specified scope 3 activities. We recognize there is more to do and aim to phase in additional scope 3 activities over time. It is, however, important to note that the decarbonization of the global economy, emissions reductions by clients, and the realization of our own targets and ambitions all depend on a variety of factors, some of which are beyond our direct influence.

The decarbonization of the global economy will require governments, regulators, all industries and consumers to move in the same direction. Clear guidance by governments through thoughtful regulations, policies and incentives, including mechanisms to factor in the price of carbon, as well as the development and scaling of key technologies and broader changes in the behavior of our society, will be critical.

Our ambition to be a global leader in sustainability remains unchanged. We are committed to supporting our clients in the transition to a low-carbon world, leading by example in our own operations, and sharing our lessons learned along the way with the rest of the world. We hope you will join us on the journey.

Colm Kelleher

Sergio P. Ermotti

Chairman of the Board of Directors

Group Chief Executive OfficerUBS was among the 43 companies that first signed the UN Global Compact in 2000 and is also a member of the UN Global Compact Network Switzerland, meaning we are committed to its principles on human rights, labor standards, the environment and anti-corruption. As reflected in detail in this report, we have a comprehensive set of goals and activities in place pertaining to the principles of the UN Global Compact.

About this report

Overview

The reporting period for this UBS Group Sustainability Report, which also covers Credit Suisse, is 1 January to 31 December 2023, which is aligned with the financial reporting period of UBS Group AG. All 2023 data included in the report is therefore for this period. Historical data (for e.g., 2022 and 2021) pertains to Pre-acquisition UBS, unless otherwise stated. For UBS's own environmental footprint, the reporting period has changed from July to June (as applied in the UBS Sustainability Report 2022) to January to December (for this report) to align with the UBS financial reporting year. 2022 data is restated in the relevant tables. Data showing progress against our decarbonization sectorial targets, including net-zero ones, pertains to 31 December 2022 (due to the unavailability of relevant 2023 data, as explained in the respective section of this report).

Unless otherwise noted, the information included in this report is presented at the consolidated level for UBS Group AG, UBS AG and Credit Suisse AG.

› Refer to "Note 29 Interests in subsidiaries and other entities" in the UBS Group AG Annual Report 2023 for supplementary information regarding certain significant subsidiaries

This report comprises the "non-financial" disclosures required for UBS Group AG, and its subsidiaries, including UBS AG and Credit Suisse AG, under the Swiss Code of Obligations Art. 964b. It also comprises disclosures 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). A table at the end of this report (Appendix 4) provides the references to such non-financial information. This report also contains information on UBS AG and UBS Europe SE pursuant to Art. 8 of the EU Taxonomy Regulation (Appendix 4).

UBS is in the process of implementing a combined and aligned sustainability-and-climate-risk dataset across UBS Group and including Credit Suisse AG. For this reason, UBS will publish UBS Group and Credit Suisse AG sustainability and climate risk metrics required pursuant to FINMA Circular 2016/1 "Disclosure - banks", Annex 5, in a supplement to the UBS Group Annual Report and the UBS Group Sustainability Report in line with the publication timeline for the semi-annual Pillar 3 disclosures in the third quarter of 2024. The current inventory of quantitative sustainability and climate risk metrics, including exposure to carbon-related assets, climate-sensitive sectors and nature-related risks for UBS AG, is disclosed in this report.

Additional information pertaining to the content of this report is provided in a supplementary document. All climate- and nature-related information contained in this report and in the supplementary document is also made available through a separate UBS Group Climate and Nature Report 2023. The latter report follows the structure recommended by the Task Force on Climate-related Financial Disclosures (the TCFD)1 and also leverages the framework of the Taskforce on Nature-related Financial Disclosures.

› Refer to the "Supplement to Managing sustainability and climate risks" section of the Supplement to this report, available atubs.com/sustainability-reporting, for information on the implementation of the environmental risk regulations in Singapore and the Hong Kong SAR by both UBS AG and Credit Suisse AG and disclosures in connection with the legal entity reporting requirements of the ESG Sourcebook in the Business Standards section of the UK Financial Conduct Authority Handbook, and for information pertaining to UBS Group AG's approach to the "Swiss Ordinance on Due Diligence and Transparency in relation to Minerals and Metals from Conflict-Affected Areas and Child Labor"

Our Sustainability Accounting Standards Board (SASB) index and our Principles for Responsible Banking (PRB) reporting and self-assessment are available atubs.com/sustainability-reporting.

› Refer to "Key terms and definitions" in the appendices to this report for terms and abbreviations used in this report

Credit Suisse integration - explanations and related assumptions

On 12 June 2023, UBS Group AG acquired Credit Suisse Group AG, succeeding by operation of Swiss law to all assets and liabilities of Credit Suisse Group AG, and became the direct or indirect shareholder of all of the former direct and indirect subsidiaries of Credit Suisse Group AG. UBS Group AG is a holding company and conducts substantially all of its operations through UBS AG and Credit Suisse AG, and subsidiaries thereof. UBS aims to substantially complete the integration of Credit Suisse into UBS by the end of 2026. As part of the integration of Credit Suisse, UBS plans to simplify the legal structure, including the merger of UBS AG and Credit Suisse AG planned for 2024.

1 In June 2023, the International Sustainability Standards Board (the ISSB) finalized its first set of requirements for corporate disclosures regarding sustainability matters: IFRS S1 and IFRS S2. The standards incorporate the recommendations of the Task Force on Climate-related Financial Disclosures (the TCFD).

In compliance with applicable regulatory requirements, information on Credit Suisse AG has been included in the UBS Group Sustainability Report 2023.

› Refer to "Appendix 3 - Entity-specific disclosures for Credit Suisse AG" in the appendices to this report for more information about Credit Suisse AG disclosures.

The legal structure of the UBS Group

The chart below gives an overview of our principal legal entities and our legal entity structure.

UBS Group AG 100%

› Refer to the "Risk factors" and "Regulatory and legal developments" sections and the "Acquisition and integration of Credit Suisse" section of the UBS Group AG Annual Report 2023 for more information

Assurance

This report has been reviewed by Ernst & Young Ltd (EY). The content has been prepared in accordance with the Global Reporting Initiative (GRI) Standards. We use the GRI as the basis for this report and apply a careful process weighing up the materiality and relevance of the information reported and the expectations of our stakeholders. We also apply our firm's information policy and disclosure principles. The GRI content index, supplementary information, and EY's assurance report can be downloaded fromubs.com/sustainability-report. Selected metrics in this report have been subject to reasonable or limited assurance by EY. A list of these metrics and level of assurance can be found in the assurance report.

› Refer to "Appendix 4 - Other supplemental information" in the appendices to this report for the assurance report › Refer to the Supplement to this report available atubs.com/sustainability-reporting, for more information on the metrics definitions, approaches and scope (Basis of Reporting)

Explanation of dependencies

Certain activities of UBS that pertain to the implementation of its sustainability and impact strategy are directly impacted by factors that UBS cannot influence directly or can only influence in part. These include pertinent governmental actions (e.g., when it comes to the achievement of the Paris Agreement and thus the achievement of our firm's net-zero ambitions); the quality and availability of (standardized) data (e.g., in such areas as emissions); the development and enhancement of required methodologies and methodological tools (e.g., on climate- and nature-related risks); the ongoing evolution of relevant definitions (e.g., sustainable finance); and the furthering of transparency (e.g., pertaining to company disclosures of data). Areas where these dependencies are of particular relevance (including in particular regarding the examples noted above) are explained in the relevant sections of this report.

28 March 2024 UBS Group AG

Contacts

Our Sustainability Chief Financial Officer (the sCFO) and our Corporate Responsibility (CR) teams manage UBS's sustainability disclosures. Information to stakeholders about the content of this report is provided by the CR team, part of the UBS Group Chief Sustainability Office (CSO).

cr@ubs.com

Terms used in this report, unless the context requires otherwiseDescription

"UBS," "UBS Group," "UBS Group AG consolidated," "Group," "the Group", "we", "us" and "our"

UBS Group AG and its consolidated subsidiaries

"UBS Group excluding the Credit Suisse AG sub-group"

All UBS Group entities, excluding the Credit Suisse AG sub-group

"UBS Group excluding Credit Suisse"

All UBS Group entities, excluding Credit Suisse AG and its consolidated subsidiaries, Credit Suisse Services AG, and other small former Credit Suisse Group entities now directly held by UBS Group AG

"UBS AG" and "UBS AG consolidated", "UBS AG sub-group"

UBS AG and its consolidated subsidiaries

"Pre-acquisition UBS"

UBS before the acquisition of the Credit Suisse Group

"Credit Suisse AG", "Credit Suisse AG consolidated" and "Credit Suisse AG sub-group"

Credit Suisse AG and its consolidated subsidiaries

"Credit Suisse Group" and "Credit Suisse Group AG consolidated"

Credit Suisse Group AG and its consolidated subsidiaries, before the acquisition by UBS

"Credit Suisse"

Credit Suisse AG, its consolidated subsidiaries, Credit Suisse Services AG, and other small former Credit Suisse Group entities now directly held by UBS Group AG

"UBS Group AG" and "UBS Group AG standalone"

UBS Group AG on a standalone basis

"Credit Suisse Group AG" and "Credit Suisse Group AG standalone"

Credit Suisse Group AG on a standalone basis

"UBS AG standalone"

UBS AG on a standalone basis

"Credit Suisse AG standalone"

Credit Suisse AG on a standalone basis

"UBS Switzerland AG"

UBS Switzerland AG on a standalone basis

"UBS Europe SE consolidated"

UBS Europe SE and its consolidated subsidiaries

"UBS Americas Holding LCC"

UBS Americas Holding LLC and its consolidated subsidiaries

"Pre-acquisition Global Wealth Management"

The UBS Global Wealth Management business division before the acquisition of the Credit Suisse Group (data, if any, from before the date of the acquisition of the Credit Suisse Group)

"UBS AG Global Wealth Management"

The Global Wealth Management business division of UBS AG and its consolidated subsidiaries

"Wealth Management (Credit Suisse)"

The Wealth Management business division of Credit Suisse AG and its consolidated subsidiaries

"Pre-acquisition Personal & Corporate Banking"

The Personal & Corporate Banking business division before the acquisition of the Credit Suisse Group (data, if any, from before the date of the acquisition of the Credit Suisse Group)

"UBS AG Personal & Corporate Banking"

The Personal & Corporate Banking business division of UBS AG and its consolidated subsidiaries

"Swiss Bank (Credit Suisse)"

The Swiss Bank business division of Credit Suisse AG and its consolidated subsidiaries

"Pre-acquisition Asset Management"

The Asset Management business division before the acquisition of the Credit Suisse Group (data, if any, from before the date of the acquisition of the Credit Suisse Group)

"UBS AG Asset Management"

The Asset Management business division of UBS AG and its consolidated subsidiaries

"Asset Management (Credit Suisse)"

The Asset Management business division of Credit Suisse and its consolidated subsidiaries

"Pre-acquisition Investment Bank"

The Investment Bank business division before the acquisition of the Credit Suisse Group (data, if any, from before the date of the acquisition of the Credit Suisse Group)

UBS AG Investment Bank

The Investment Banking business division of UBS AG and its consolidated subsidiaries

Investment Bank (Credit Suisse)

The Investment Bank business division of Credit Suisse AG and its consolidated subsidiaries

"Non-core and Legacy"

The Non-core and Legacy Portfolio

Banking on sustainability

Our commitment

We want to be the financial provider of choice for clients who wish to mobilize capital toward the achievement of the 17 United Nations Sustainable Development Goals (the SDGs) and the orderly transition to a low-carbon economy. We are supporting our clients in the transition to a low-carbon economy, leading by example in our own operations, and sharing our lessons learned along the way with the rest of the world. By 2050, our ambition is to achieve net-zero greenhouse gas (GHG) emissions across our scope 1 and 2, and specified scope 3 activities.

Continued ambition to be a global leader in sustainability

The acquisition of the Credit Suisse Group enlarged our exposure to sustainability matters, as reflected in the increased qualitative and quantitative content we are disclosing in this Sustainability Report. Since the acquisition, we have been working to progressively align governance, policies, methodologies and frameworks. We expect to complete this work during 2024. Our ongoing alignment includes making UBS sustainable product standards the benchmark, with Credit Suisse's sustainable financing and investment products undergoing a detailed assessment to ensure compliance with our standards, frameworks and expectations. Our revised sustainability and climate risk policy framework and associated processes reflect the full suite of activities of the combined organization and ensure a consistent approach.

Our priorities

Planet

Making climate a clear priority as we shift toward a low-carbon economy

People

Addressing societal challenges through client and corporate philanthropy, as well as employee engagement.

Partnerships

Working with other thought leaders to achieve impact on a truly global scale.

Our achievements in 2023

Serving clients' sustainable finance needs

• - USD 292.3 billion of sustainability focus and impact investments (UBS AG) (10% increase)

• - USD 11.2 billion clients' impact investing assets (UBS AG Global Wealth Management)

• - 1,611 ESG resolutions voted upon (UBS AG Asset Management)

• - 46.5% sustainable investments share of assets under custody reached (UBS AG Personal & Corporate Banking)

• - 102 green, social, sustainability or sustainability-linked bond deals facilitated1

Among the leaders in key sustainability ratings

• - Dow Jones Sustainability Index member (S&P Global)

• - A- rating and included in Leadership band (CDP)

• - AA rating (MSCI ESG)

• - Medium risk rating (Sustainalytics)

Addressing societal challenges

- USD 328 million in donations raised by the UBS Optimus network of foundations

-

7 million beneficiaries reached across our social impact activities (UBS AG)

Transitioning to a low-carbon economy

• - Made progress toward our ambition of achieving net-zero GHG emissions by 2050 across our scope 1 and 2, and specified scope 3 activities and undertook an extensive review of the decarbonization targets of the UBS Group, as part of the integration of Credit Suisse

• - Established decarbonization targets to address the emissions of our in-scope lending activities for specified sectors and made progress toward them

• - Analyzed the facilitated emissions from capital markets activities for select carbon-intensive sectors

• - Decreased carbon-related assets proportion of total customer lending exposure to 7.2% in 2023 from 7.5% in 2022 (UBS Group excluding Credit Suisse)

• - Share of climate-sensitive sectors at 12.1% (transition risk) and 9.7% (physical risk) of our total customer lending exposure (UBS Group excluding Credit Suisse)

• - Exposure to nature-sensitive sectors at 15.1% of our total customer lending exposure (UBS Group excluding Credit Suisse)

• - 57.3% positive progress against climate corporate engagement objectives

• - 157 companies at which we voted upon climate-related resolutions

• - Reduced net GHG footprint for scope 1 and 2 emissions by 21%

• - 65% of our GHG key vendors declared their emissions on CDP and also set 2050-aligned net-zero goals

Shaping a high-performing organization

• - 29.5% of all Director level staff and above are women

• - 24.3% of UK / 25.1% of US staff at Director level and above are held by employees from ethnic minorities

• - EQUAL-SALARY Foundation certification for equal pay practices in Switzerland, the US, the UK, the Hong Kong SAR and Singapore (UBS Group excluding Credit Suisse)

1 Investment Bank figure is 102 of which UBS AG figure is 93 and Credit Suisse figure is 16. The metrics include transactions such as, but not limited to, Investment Bank Global Banking bonds issued under the voluntary ICMA Green Bond Principles, Sustainability Bond Principles, and Sustainability-Linked Bond Principles. The principles include a recommendation that the issuer appoints an external review provider to undertake an independent external review (e.g., second-party opinion). This is consistent with market practice. The metrics also include sustainability-themed bonds (e.g., Transition). Transactions are counted only once, there is no double counting (e.g., if and where UBS AG and Credit Suisse were involved in the same transaction). UBS has performed an assessment for Credit Suisse green, social, sustainability and sustainability-linked bonds reported in this report and deemed them to be aligned to UBS sustainable bond guidelines.

Our integration journey - at a glance

Following the acquisition of Credit Suisse Group AG by UBS Group AG on 12 June 2023, we implemented integration measures across our sustainability and culture activities. We have set out key measures in the table below.

Strategy

Sustainability and impact strategy applies Group-wide

- The sustainability and impact strategy of Pre-acquisition UBS applies to UBS Group, including Credit Suisse. While certain sustainability-related policies, processes and activities continued at Credit Suisse AG, they are applied within the overarching strategy of UBS Group.

GovernanceSenior level governance spans the entire Group

• - The responsibility for sustainability of UBS Group AG's Board of Directors (the BoD) spans the entire Group, including Credit Suisse AG. The five committees that support the BoD each have specific ESG (environmental, social, governance)-related responsibilities, with the Corporate Culture and Responsibility Committee (the CCRC) having primary responsibility for overseeing our Group-wide sustainability and impact strategy.

• - The Group CEO has delegated responsibility for setting the sustainability and impact strategy and developing Group-wide sustainability and impact objectives, in agreement with fellow GEB members, to the Group Executive Board (GEB) Lead for Sustainability and Impact. The GEB Lead for Sustainability and Impact manages the UBS Group Sustainability and Impact (GSI) organization and, together with the Chief Sustainability Officer (the CSO), co-chairs the Group-wide Sustainability and Climate Task Force (the SCTF).

• - In 2023, alignment with the Group's strategies, objectives and guidelines was ensured by UBS personnel being represented on the governance bodies of Credit Suisse. The overarching governance of sustainability at Credit Suisse AG was integrated into UBS Group and certain CS governance bodies were retired. In 2024, we aim to complete the integration of Credit Suisse sustainability governance bodies into the UBS Group sustainability governance.

Environment Group-wide ambition to achieve net-zero greenhouse gas emissions across our scope 1 and 2, and specified scope 3 activities, by 2050

Financing:

• - In 2023, we revised our decarbonization targets to reflect the combined lending portfolios and resulting exposures to carbon-intensive sectors.

• - In 2023, we calculated the emissions metrics shown for 31 December 2021 and 31 December 2022 on the basis of the joint loan books of UBS AG and Credit Suisse AG on those dates, on a pro forma basis.

Investing:

• - In 2023, we undertook an extensive review of our approaches to setting decarbonization targets, to reflect the activities of the combined organization and evolving standards and methodologies.

• - In 2023, UBS AG Asset Management made progress toward delivering its 2030 target of aiming to align 20% of UBS AG Asset Management's total assets under management (AuM) with net zero, using science-based portfolio alignment approaches. This Pre-acquisition UBS aspiration will be reassessed in 2024.

Own operations:

- For 2023, we disclosed the environmental footprint of the joint operations of UBS Group, including Credit Suisse, unless otherwise stated.

• - We integrated the greenhouse gas (GHG) emissions calculations for the combined firm, with a new joint base year set to 2019.

• - We integrated Credit Suisse energy consumption in UBS's 15% reduction target by 2025.

• - For UBS Group excluding Credit Suisse, we continued to apply an internal carbon price of USD 400 per metric ton for scope 1 and 2 emissions in our capital investment business cases in order to incentivize carbon reductions.

Supply chain:

• - In 2023, we revised and updated the list of GHG key vendors (defined by us as those vendors that collectively account for more than 50% of our estimated vendor GHG emissions) from 83 to 95 to include Credit Suisse vendors.

• - In 2024 and 2025, our requirements to reduce the environmental impact of vendors that provide services from offshore development centers (ODCs), as currently applied to UBS ODC vendors, will be rolled out to Credit Suisse ODC vendors.

Social

Building a unified culture Workforce

• - In 2023, we achieved the implementation of a combined and fully integrated performance management approach for all employees, including Credit Suisse.

• - In 2023, we fully integrated former Credit Suisse Group employees into our fair pay practices and continued to monitor and improve our pay equity position in our leading countries.

• - For 2023, we are reporting consolidated workforce figures, unless otherwise stated.

• - In 2023, we continued with our DE&I aspirations (for the combined organization) and retired the Credit Suisse DE&I aspirations.

Responsible supply chain:

- In 2023, we established a combined spend and vendor inventory for UBS AG and Credit Suisse AG. In 2024, the UBS Responsible

Supply Chain Management framework will be rolled out to Credit Suisse AG (which, in 2023, continued to apply its Third-Party Risk Management due diligence approach.

Supporting opportunities

Leveraging the power of the combined firm for the benefit of clients

• - In 2023, we made UBS sustainable product standards the benchmark going forward, with Credit Suisse AG's sustainable financing and investment products undergoing a detailed assessment to ensure compliance with our standards, frameworks and expectations. In 2024, we intend to fully incorporate Credit Suisse data into our sustainable finance and investing disclosures.

• - For 2023, we reported sustainable investments (SI) for UBS AG. Credit Suisse AG sustainable investing products and associated invested assets continued to be classified under the Credit Suisse AG Sustainable Investing Framework (SIF) and reported separately. All Credit Suisse AG green, social, sustainability and sustainability-linked bonds reported were aligned to UBS guidelines.

• - In 2023, the Investment Bank, operating under a single consolidated governance at end-of-year, has combined sustainability expertise from Credit Suisse AG to strengthen UBS Group's offering across Global Markets, Global Banking and Research. New sustainable finance content, products and other services taken over from Credit Suisse AG follow UBS Group standards and approval process. The Credit Suisse Sustainable Activities Framework, as well as its related external USD 300 billion sustainable finance commitment, was retired.

• - In 2023, Credit Suisse (Schweiz) AG continued to offer its sustainable products to its clients. The development of new products was paused, in light of our review and vetting of the sustainable products of Credit Suisse (Schweiz) AG against the UBS sustainable product frameworks.

• - In 2024 and 2025, we will bring selected Credit Suisse sustainable and impact investing solutions onto the merged Global Wealth Management platform. These solutions will be subject to existing UBS Global Wealth Management sustainable investing frameworks, diligence, and instrument selection approaches. During the migration of solutions, clients, and assets, we will phase down dual governance, with the aim of aligning under the existing UBS Global Wealth Management sustainable investing governance.

• - In 2024, the UBS AG Asset Management SI product classification framework will be applied to the Credit Suisse AG Asset Management products when onboarded to the UBS shelf. A joint governance forum is in place to support the alignment of policies, methodologies and frameworks.

Managing risksCombined sustainability and climate risk appetite

• - In 2023, we revised our sustainability and climate risk policy framework and associated processes across UBS Group to reflect the full suite of activities of the combined business and ensure a consistent approach. We enhanced these by adding Credit Suisse standards relevant to the combined bank, for shipping, project finance, and mining.

• - In 2023, Credit Suisse AG's sector-specific client energy transition framework (CETF) underpinned its climate risk management, until its decommissioning at end of year. A Group-wide approach is being developed by the combined firm to assess clients' energy transition readiness.

- For 2023, we disclosed climate risk metrics for UBS AG, with Credit Suisse AG climate risk metrics to be published in 2024 when aligned data is fully available. In 2024, we will also progressively align Credit Suisse AG's approach to the assessment of climate risk materiality and its risk reporting cycles and metrics with those of UBS AG, in parallel with the integration of underlying processes and controls.

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Credit Suisse Group AG published this content on 27 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 March 2024 06:11:08 UTC.