Our achievements in 2007

UBS successfully passed the annual surveillance audit of its environmental management system. The auditors from SGS Société Générale de Surveillance confirmed that a well-performing environmental management system is in place – integrated in the normal organization, and suitable to manage environmental risks and to improve environmental performance on a continual basis.

A pilot metals & mining sector guideline has been developed and tested with sample transactions. Guidelines for other sensitive sectors, e.g. chemicals, oil & gas, infrastructure and timber will be developed in 2008

In 2007 UBS's SRI invested assets increased by 116% (to CHF 38.9 billion). UBS launched new SRI products in Japan and Taiwan and launched strategy certificates for climate change, water and demographics.

Global Wealth Management & Business Banking has decided to integrate SRI into the UBS Client Experience framework by adapting relevant client profiling tools, adding new proprietary and selected third-party products to its SRI offering and enhancing internal platforms that provide information and sales documentation. After a successful pilot in Switzerland in 2007, which contributed to the overall increase of SRI invested assets, this approach will also be rolled out to the other regions.

For 2007 the Investment Bank focused on increasing environmentally related products and services to our client base. The UBS Greenhouse Index, the UBS Global Warming Index and the UBS Europe Carbon Optimized Index were released to our clients as well as integrating aspects of SRI into mainstream research.

Energy efficiency: while FTEs increased by 10%, energy consumption rose at a lower, 3% rate. This can be partly attributed to the effect of in-house energy efficiency gains. Going forward, UBS has adopted a technical standard supporting worldwide oversight of measures taken to improve energy efficiency in fields such as building operation, replacement investments and rehabilitations.

Green energy: The share of renewable energy increased from 34% to 45% due to shift to hydro in Switzerland and a new renewable contract in the US.

Offsets: Air travel increased by 12% compared to 2006, emitting 113'000 tons of CO2. 100% of UBS's air travel was offset by purchasing carbon offsets from projects in Brazil, India, China and Germany.

In 2007 the share of recycled paper increased from 6.2% in 2006 to 10.5% in 2007, FSC paper accounted for 10.7% of total paper consumption, and waste per FTE decreased by 1%. Paper consumption per FTE increased by 1% and the waste recycling ratio decreased from 58% in 2006 to 56%.

UBS has developed a supply chain guideline that provides guidance for identifying, assessing and monitoring environmental and human rights risks of suppliers and in support of consistent decision-making throughout all business groups and regions. This guideline focuses on suppliers that are more likely to be exposed to human and labor rights, environmental and corruption issues.

Significant specialized training and awareness raising was conducted in all business groups (6,000 employees trained in 2007).