UBS

UBS AG Form 6-K Summary: 2024 Sustainability Report

Business Context and Reporting Period

This Form 6-K, filed on March 17, 2025, contains the UBS Group Sustainability Report 2024. The reporting period covers January 1, 2024, to December 31, 2024. The report details UBS's progress as the largest truly global wealth manager and leading Swiss bank, following the acquisition of Credit Suisse Group AG in June 2023. The primary focus for 2024 was the integration of Credit Suisse's sustainability activities into UBS's operational structure and the advancement of the firm's "Protect, Grow, Attract" sustainability strategy.

Key Financial and Operational Metrics

Note: This filing is a Sustainability Report and does not contain audited financial statements (Revenue, Net Income, Cash Flow). Key operational and sustainability metrics are provided below.

• Invested Assets: Total UBS Group invested assets reached USD 6.1 trillion (USD 6,086.8 billion) as of December 31, 2024.
• Sustainable Investing Assets: Increased to USD 296.4 billion (up 5% year-over-year), representing 4.9% of total invested assets.
• Employee Count: 110,323 employees worldwide across 51 countries and jurisdictions.
• Scope 1 and 2 Emissions: Reduced by 35% against the 2023 baseline (46,278 metric tons CO2e), reaching 30,274 metric tons in 2024.
• Renewable Electricity: Achieved 99.8% renewable electricity usage across the global real estate portfolio.
• Philanthropy: Surpassed the 2021-2025 goal of mobilizing USD 1 billion in philanthropic capital, reaching a cumulative total of USD 1.1 billion. In 2024 alone, the UBS Optimus Foundation raised USD 366 million in donations.
• ESG Ratings: MSCI reaffirmed UBS's AA ESG rating; S&P Global Corporate Sustainability Assessment score increased to 72 (from 69 in 2023).

Material Changes vs. Prior Period

• Climate Targets Revision: UBS revised its Scope 1 and 2 net-zero target to 2035 (previously 2025) to reflect the enlarged real estate portfolio post-Credit Suisse acquisition and align with the Corporate Sustainability Reporting Directive (CSRD) definition of net-zero.
• Asset Management Target Withdrawal: The legacy target to align 20% of Asset Management's total assets under management (AuM) with net zero by 2030 was withdrawn to allow for a review of the combined firm's AuM. However, assets with a net-zero ambition grew to USD 64.4 billion.
• Integration Progress: Significant progress was made in decommissioning Credit Suisse governance bodies and integrating sustainability policies. The "Company Transition Assessment Scorecard" (CTAS) was introduced to assess client decarbonization readiness.
• Waste Target Adjustment: The "Zero Waste to Landfill" target for 2025 was retired as it was deemed operationally unfeasible in certain markets; the firm will explore new targets aligned with market reality.
• Carbon-Related Assets: The proportion of carbon-related assets in total gross lending exposure decreased to 10.9% in 2024 from 12.1% in 2023.

Guidance, Outlook, and Risks

Outlook and Strategy: UBS aims to substantially complete the integration of Credit Suisse by the end of 2026. The firm continues to focus on supporting clients in the transition to a low-carbon economy, with a specific emphasis on Swiss real estate decarbonization and fossil fuel financing reduction. The firm plans to deploy a fully cloud-based toolset for climate metrics in 2025.

Risks and Contingencies:

• Regulatory Divergence: The report highlights risks from conflicting ESG regulations across jurisdictions (e.g., "anti-ESG" rules in certain US states vs. strict labeling regimes in Europe).
• Climate Transition Risks: Transition risks (policy, market sentiment, technology) are rated as higher potential impact than physical risks in the short term. Credit risk is identified as a primary transmission channel for climate impacts.
• Data Limitations: Progress on Scope 3 (financed emissions) targets depends on client data quality and availability, which remains a challenge.
• Financial Crime: Ongoing risks related to money laundering and sanctions compliance, particularly in the context of the war in Ukraine, require continuous monitoring and investment in controls.

Key Facts for Investor Verification

• Verify the 2035 net-zero target for Scope 1 and 2 emissions and the interim 2030 target (57% reduction) against the 2023 baseline.
• Monitor the integration timeline for Credit Suisse portfolios into UBS's sustainable investing framework, which is expected to continue through 2025.
• Review the lending sector decarbonization targets for Swiss real estate, power generation, and fossil fuels, noting the 2023 data lag for emissions reporting.
• Assess the impact of regulatory conflicts on UBS's ability to market sustainable products globally, particularly in the US versus Europe.
• Track the progress on Scope 3 financed emissions, specifically the 80% reduction in absolute financed emissions for fossil fuels (2023 data vs. 2021 baseline).