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How we do business


The Board of Directors (BoD) is responsible for setting our firm's values and standards and ensuring we meet our obligations to our stakeholders. Both the Chairman of the BoD and the Group Chief Executive Officer (Group CEO) play a key role in safeguarding our reputation and ensuring we communicate effectively with all our stakeholders.

All BoD committees have responsibilities and authorities of direct relevance to our goal of creating sustainable value. The Governance and Nominating Committee, for instance, addresses all relevant corporate governance issues affecting the UBS Group. The Human Resources and Compensation Committee annually reviews our "Compensation and Benefits Principles" and proposes any amendments to the Board for approval. It also evaluates the effectiveness of pay for performance across the firm. The Risk Committee's function is to oversee and support the BoD in fulfilling its duty to supervise and set appropriate risk management and control principles.

The Corporate Culture and Responsibility Committee (CCRC) shoulders the main undertaking for corporate responsibility. As set out in its charter, the CCRC focuses specifically on assessing how we meet our stakeholders’ expectations with regard to corporate responsibility. It also monitors and reviews our policies and regulations as well as the implementation of our stated commitments from a corporate responsibility perspective. For areas such as UBS and Society, environmental and human rights, or community investment, the Corporate Culture and Responsibility Committee even defines the strategic direction and goals.

Various senior-level committees are in charge of particular aspects of corporate responsibility and sustainability. They include the Global Environmental & Social Risk Committee, chaired by the Group Chief Risk Officer, who manages the development and implementation of principles and appropriate independent control frameworks related to environmental and social risks within UBS. This committee resolves transactional and policy matters relating to environmental and social risks and their associated reputational risks. Additionally, our Environmental & Human Rights Committee supervises the operational execution of UBS’s Environmental and Human Rights Policy, which we revised at the beginning of 2014 to incorporate commitments made in the areas of climate change and human rights.

The GEB oversees our efforts to combat money laundering, corruption and terrorist financing. These efforts are led by a dedicated financial crime team of anti-money laundering (AML) compliance experts. Also overseen by the GEB is our approach to diversity and inclusion. In 2014, we appointed a global head of diversity and inclusion to drive a group-wide strategy complemented by divisional and regional initiatives. Our Community Affairs activities are coordinated globally and overseen by the Corporate Culture and Responsibility Committee, while our initiatives are implemented regionally and based on local needs. 

Sustainability Disclosure 2014

UBS strives to report openly and transparently about the firm's corporate responsibility strategy and activities both via a section in the UBS annual report and, in more detail, on the UBS corporate responsibility website. Additional relevant information is provided in an employees section in the annual report and on the UBS employees website.

We use the Global Reporting Initiative (GRI) as the basis for our corporate responsibility reporting and apply a careful process weighing up the materiality and relevance of the information reported and the expectations of all our stakeholders.

UBS's reporting has been reviewed by Ernst & Young Ltd (EY) against the GRI Sustainability Reporting Guidelines. The content has been prepared in accordance with the comprehensive option of GRI G4 as evidenced in the EY assurance report. This assurance was conducted by EY.


Corporate responsibility

Environmental reports

Our employees

CR online report

2013 PDF   PDF PDF (PDF, 18 MB)
2012 PDF (PDF, 613 KB)   PDF (PDF, 560 KB) PDF (PDF, 12 MB)
2011 PDF (PDF, 455 KB)   PDF (PDF, 372 KB) PDF (PDF, 3 MB)
2010 PDF (PDF, 3 MB)   PDF (PDF, 367 KB) PDF (PDF, 3 MB)


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UBS acknowledges that climate change represents one of the most significant environmental challenges of our time.

UBS is a founding member of the CDP that encourages organizations to measure, manage and reduce emissions and climate change impacts. The CDP issues annual climate change Information Requests on behalf of institutional investors to almost 6,000 corporations across the globe. UBS also annually responds to the questionnaire.

UBS is globally certified according to the international environmental management standard ISO 14001

In 1999, UBS was the first bank to obtain ISO 14001 certification for its worldwide environmental management system. The management system covers the entire scope of UBS's products, services and in-house operations which may give rise to an environmental impact. It is audited annually and re-certified every three years by Société Générale de Surveillance (SGS). These comprehensive audits verify that appropriate policies and processes are in place to manage environmental issues, and that they are executed in day-to-day practice.

In July 2014 UBS successfully passed the ISO 14001 re-certification audit on its environmental management system.


The content index refers to the 2013 Global Reporting Initiative (GRI) Guidelines 'G4' and the Financial Services Sector Supplements which form together a voluntary reporting framework that provides guidance on how organizations can disclose their sustainability performance.

UBS's reporting has been reviewed by Ernst & Young Ltd (EY) against the GRI Sustainability Reporting Guidelines. The content has been prepared in accordance with the comprehensive option of GRI G4 as evidenced in the EY assurance report. The assurance by EY covered all items of the GRI Content Index.



Total operating income


Tax expense / (benefit)


Personnel expenses


Dividends paid on UBS shares


Community investments

54.3 (incl. UBS Education Initiative)

Procurement of products and services


Materiality assessment process

Annually, we conduct a materiality assessment to collate the views of our stakeholders to a wide range of topics. In 2014 we conducted for the first time an online survey (from 6 October to 31 December) which allowed our stakeholders and targeted experts to directly provide their views. We received about 1,000 replies from around the globe. The survey gave participants the opportunity to assess a total of 30 topics according to their perceived relevance to our firm, and to also propose additional topics deemed to be relevant.

The results of the online survey were subsequently verified by UBS experts and the overall result of this analysis incorporated in a materiality matrix. As in previous years, the overall result of the analysis was reviewed by the Corporate Culture and Responsibility Committee. It also becomes part of the decision-making processes of this Board of Directors committee with a particular focus on those topics that were assessed as very relevant or have considerably increased their relevance since last year.

Results 2014

For the GRI G4 materiality assessment the GRI indicators were mapped with the materiality matrix and rated material/immaterial (decision factors were: significance to stakeholders and impact on sustainable performance). We have identified the following material aspects:
Economic Performance
Indirect Economic Impacts
Effluents and Waste
Supplier Environmental Assessment
Labor/Management Relations
Occupational Health and Safety
Training and Education
Diversity and Equal Opportunities
Equal Remuneration for Women and Men
Supplier Assessment for Labor Practices
Labor Practice Grievance Mechanisms
Supplier Human Rights Assessment
Public Policy
Anti-competitive Behavior
Supplier Assessment for Impacts on Society
Grievance Mechanisms for Impacts on Society
Product and Service Labeling
Marketing Communications
Customer Privacy
Product Portfolio
Active Ownership

All material aspects are relevant to all entities consolidated within UBS. Information describing any relevant impacts of the aspects outside UBS is provided as part of the description of the respective GRI indicator/aspects.

Our stakeholders

Clients are at the center of our activities. We are committed to building and sustaining relationships with clients based on trust and integrity. Regular dialogue with clients and their feedback ensures that we understand their expectations.

Collecting client feedback (including via our Quality Feedback management system) enables the firm to act and continuously improve products and client service standards in order to provide the best client experience.

Sustainability topics are considered in client interactions across UBS globally. In 2014, we talked with clients about values-based investing at venues such as the UBS Global Philanthropy Forum (on the theme of “scaling up: building on success and maximizing impact”), the APAC Family Legacy and Philanthropy Forum, the 2014 Young Successors Program conference “Passion to Action”, the Women’s Symposium, UBS Roundtables and the annual Private Wealth Management Conference dedicated to Sustainable Investing in the US.

For additional topics of relevance to clients see

Our senior management and the Investor Relations team regularly communicate with the investment community to ensure accurate and timely distribution of our financial results and latest developments.

We believe that our financial disclosures rank amongst the best in the industry and that we are a recognized leader in disclosures in several areas, including capital and strategy. In 2014, we continued to reduce risk-weighted assets, improve our leverage ratio and maintain the best fully applied Basel III CET1 ratio in our peer group. Further, our Group net profit for the year rose by 9% to CHF 3.5 billion. Our achievements in 2014 enabled us to deliver attractive returns to our shareholders.

We also used individual meetings and discussions with shareholder groups focused on sustainability to discuss topics such as compliance, corporate culture, climate change. Such direct dialog with our shareholders helps us with improving our services and with addressing the expectations of our stakeholders.

Find out more about topics of relevance to shareholders:

Our employees' drive, skill, insight and experience are fundamental to delivering superior services to our clients. We communicate with our employees every day to help ensure that they are well informed and engaged with management as key stakeholders for the firm's long-term success.

UBS communicates with employees through a diversity of channels such as internet, intranet, UBS Connections (internal social network), UBStv, e-mail and interactive employee "help and information sites". These channels are used to inform about the firm's strategy, policies and processes, to raise awareness, or simply to share know-how, research and matters of broad interest. As an example of specific relevance to societal topics, extensive communication during UBS's annual environmental month raises awareness about UBS's environmental activities regarding issues such as climate change.

We interact directly with our employees and request feedback through personal meetings, emails, town halls and the Quality Feedback system. In 2014, employees attended town halls and small group meetings, directly or via UBS TV, and thus had the opportunity to discuss relevant issues directly with UBS's senior management. An important example constituted "Ask the CEO" events, at which a large number of employees was able to discuss a broad range of topical issues such as the firm's strategy.

On an alternate-year basis, we conduct a Group-wide survey to get employees’ views on where we stand in relation to living up to our principles, achieving our strategy and providing a work environment where employees can succeed. We openly communicate the findings to our employees and use theresults as a benchmark for continuous improvement.

Our employee networks are key change agents, partnering with other stakeholders to deliver on our strategy. In 2014, nearly 17,000 employees across UBS were members of 27 employee networks. These inclusive groups, representing elements such as gender, culture, life stage and sexual orientation, foster cross-business relationships and an open workplace. The Women's Business Network (WBN), for instance, is a group of more than 1,400 UBS employees in Switzerland committed to the personal and professional development of women at UBS. The WBN provides networking opportunities, mentoring support and leadership development.

The UBS Future Panels organize evening and lunch events involving senior management and external speakers featuring panel discussions on important trends.

All employees can access a broad range of development and learning opportunities related to their jobs. Our eLearning portfolio contains more than 5,100 courses on topics such as communication skills, management and leadership, financial markets and information technology. Specialized learning modules on risk, finance and compliance topics help employees work effectively in their roles and within evolving business and regulatory environments.

Find out more about topics of relevance to employees or potential employees:

Financial market stability and efficiency is largely dependent on the regulatory and political environment. We actively participate in political discussions to share our expertise surrounding regulatory changes and corporate responsibility-related issues.

In 2014, discussions regarding the future regulatory framework for financial institutions continued to figure prominently among the major topics of the intense dialogue between UBS senior management and specialized functions, governments and regulators.  Topics included the specification of loss absorbing capacity (i.e. bail-in debt) to support resolution of global systemically important financial institutions as proposed by the Financial Stability Board and on-going market structure reforms including the Volcker Rule, OTC Derivative Reforms, US FATCA and the EU Markets in Financial Instruments Directive and Regulation (MIFID/R).

With regard to corporate responsibility issues we actively participated in discussions with government bodies. A key example is the meeting of the Thun Group of Banks at the UBS conference center in the Swiss town of Thun which, in June 2014, brought together a large group of diverse stakeholders, including representatives from various governments. We also support the work of key private sector groups such as the World Economic Forum through its "The Role of Financial Services in Society" project.

For more information on governmental and regulatory topics see UBS's quarterly reports or annual report

We maintain a regular dialogue with politicians globally and strive to establish long-term relationships with political representatives. This dialogue contributes to promoting the interests of UBS and enhancing the firm’s reputation.

Support of the Swiss militia system

UBS values the important role of political parties in the Swiss political system, which is the foundation of state, politics and society in Switzerland. Swiss citizens engage voluntarily at all three levels of the Swiss state (federal, cantonal, local) both as public officials and in the country's parliaments, alongside their regular professions. Switzerland refers to this arrangement - where representatives take on public tasks and mandates on a part-time basis - as militia system.

In Switzerland, political parties do not receive state funding while members of parliament in Switzerland are not professional politicians. It is for this important reason that UBS views the support of the militia system as a crucial component of its societal responsibility in its home market Switzerland. Recognizing the vital function of Switzerland's political parties, UBS provided a total of CHF 1.8 million to political parties in 2013 and 2014 as a contribution to their operational costs, providing they committed to competition and the market economy. Any financial contribution for a party is calculated on the basis of the number of parliamentary mandates it holds at federal and cantonal level. Swiss parties applying for a financial contribution must either form a parliamentary group in the federal parliament or be represented in at least one cantonal government. Any financial contribution is provided without additional conditions attached to it. UBS views its contribution to political parties in Switzerland as a long-term commitment (though subject to regular reviews).

UBS complies with legal requirements on disclosing political donations, as applicable in the relevant jurisdiction. However, UBS does not provide financial support to political parties outside Switzerland. In the US, eligible employees may make financial contributions through a federal Political Action Committee (PAC), the UBS Americas Fund for Better Government. The PAC then makes contributions to federal candidates. These contributions do therefore not constitute political donations by UBS.

Annual "Political Forum" for employees who hold elected public office in Switzerland

UBS provides express support for the political commitments of its employees. Currently, more than 350 employees serve as political office holders at federal, cantonal and local level. If necessary employees are allowed to take a certain amount of working time to exercise their public function. UBS holds an annual "Political Forum" at which senior management and political office holders discuss topics of key relevance to the bank in Switzerland.

We actively engage in regular discussions on corporate responsibility issues with specialists in peer banks, and more widely through trade bodies and associations. Sharing experiences and assessments of corporate responsibility issues helps us to compare and improve our strategy, approach and tools.

UBS is a founding member of the Wolfsberg Group, an association of global banks, which aims to develop financial services industry standards regarding anti money laundering, know-your-client and counter-terrorist financing policies. Meeting regularly, the Wolfsberg Group also works closely with the Financial Action Task Force, an inter-governmental body that helps to develop international and national policies to combat money laundering and terrorist financing in consultation with the private sector.

In October 2013, we co-launched the Thun Group of Banks’ discussion paper on banking and human rights, which aims to support banks in mapping and analyzing their potentially adverse impacts on human rights, and also looks at related risks, including reputational, legal, operational and financial risks. The paper was very positively received and the Thun Group has continued its discussions since, notably in a meeting with a large group of diverse stakeholders (including supranational organizations, governments and civil society) in June 2014 at the UBS Conference Center in Thun, Switzerland.

UBS is also an active member of the London Benchmarking Group, an internationally recognized standard for measuring corporate community investment.

We actively engage with our communities for example through our community investment program. The community investment program aims to overcome disadvantages in our local communities by supporting education and entrepreneurship through a combination of targeted funding and the commitment and skills of our employees.

Our longstanding Community Affairs program aims to overcome disadvantage in our local communities through a combination of targeted funding and the commitment and skills of our employees. Globally, we focus on education and entrepreneurship, both of which align to our business and resonate with employees and stakeholders. We help people develop the skills and attainment they need to reach their potential and work with our communities to support local enterprises. Our approach is longterm and founded on building sustainable and successful partnerships with non-profit organizations and social enterprises to ensure that our contribution has a lasting impact. Proximity to our partners allows us to better understand the needs and requirements of our communities.

Furthermore, we expanded the measurement of the impact of our Community Affairs activities across all regions using the London Benchmarking Group model. Understanding where we make an impact helps us evaluate and focus our program. In 2013, we measured our impact across the globe. UBS supported over 75,000 people across both our education and entrepreneurship programs. We work with young people globally to help increase their educational attainment, and to acquire workplace skills. Also, we work with entrepreneurs to help them build businesses.

For further information and data of relevance to the communities we do business in, see

In 2014 UBS spent CHF 7.6 billion on a broad range of products and services.

A large proportion of this expenditure comprises real estate, outsourcing, IT as well as consultancy and legal fees.  In 2014, our sourcing and procurement services units were transferred to Chain IQ, a newly-founded company that will continue to apply UBS’s unchanged RSCM framework and processes. In the new setting, the experienced procurement and sourcing specialists at Chain IQ perform supplier due diligence and establish remediation measures, supported by a centralized team of experts within UBS.

We aim to ensure that our social and environmental values are being followed throughout the supply chain. Since 2008 a firm-wide guideline provides systematic assistance on identifying, assessing and monitoring supplier practices in the areas of human and labor rights, the environmental protection and corruption. A central component of this guideline is the UBS Responsible Supply Chain Standard to which our direct suppliers are bound by contract. UBS expects its suppliers to apply the same standards in the relationships with their suppliers.

We actively engage in dialogue with analysts in rating and research agencies. The evaluation of specialized agencies helps to evaluate our corporate responsibility performance and activities, and provides a useful means for benchmarking.

In 2014, we provided detailed information on our sustainability performance to a range of agencies either in response to questionnaires or via meetings or calls (with environmental, social and governance analysts). Our corporate responsibility website regularly serves as a key source of information for these agencies.

We regularly interact with non-governmental organizations (NGOs) and appreciate their input and insight, as it helps the firm consider its approach to, and understanding of, societal issues and concerns.

NGOs have long established themselves as the most critical "watchdogs" of companies, both scrutinizing and challenging how we address a broad range of environmental, social and human rights concerns. In 2014 discussions with NGOs focused on the subjects of human rights, mountaintop removal coal mining, food speculation and climate change, particularly in relation to coal. On the human rights topic NGOs actively participated in the stakeholder dialogue at the Thun Group of Banks' meeting in June 2014.

UBS participates actively in several organizations and initiatives that promote the advancement of corporate responsibility and sustainability. We are among the thought leaders in corporate responsibility in banking.

These memberships and commitments include the United Nations Global Compact, the Global Reporting Initiative, the United Nations Environment Program Finance Initiative, the CDP and the Principles for Responsible Investment. Our representatives participate in external meetings, events and conferences and use these platforms to exchange ideas, promote joint actions among participants and gain valuable input for the development of our corporate responsibility approach and strategy.

In 2014, UBS representatives participated in major corporate responsibility events such as the UN Forum on Business and Human Rights in December.

We conduct an active and consistent dialogue with media in all of our major locations worldwide.

Our media teams have established direct and long-term relations with media representatives across all our business regions and provide timely information on a wide range of global, regional and local topics of relevance to the firm. Senior management (BoD and GEB-level) also regularly gives account to journalists, predominantly through interviews. In addition to the interviews at our firm's major corporate events (i.e. quarterly and annual reporting and annual general meeting) senior management conducted many other interviews in 2014.

We also communicated with media representatives - through interviews or background talks - on a broad range of corporate responsibility or sustainability topics such as human rights (Thun Group), food speculation and environmental and social risks.

Ratings and recognitions

UBS has been included in "The A List: The CDP Climate Performance Leadership Index 2014" for its actions to reduce carbon emissions and mitigate the business risks of climate change. UBS is the only Swiss bank to appear on the list. The index presents 187 listed companies - out of a total of nearly 2,000 companies independently assessed - identified as demonstrating a superior approach to climate change mitigation. It has been produced at the request of 767 investors, who represent more than a third of the world’s invested capital, by CDP. The international not-for-profit organization provides the only global system for companies and cities to measure, disclose, manage and share vital climate change-related information.

UBS is a constituent of the FTSE4Good Index Series, an index designed to measure the performance of companies demonstrating strong environmental, social and governance (ESG) practices. UBS was given a Top Level ICB Supersector percentile rating of 91 percent out of a full 100 percent.

oekom research AG is one of the world's leading sustainability rating agencies and has actively helped to shape the market for sustainable investments since 1993. oekom research has awarded UBS corporate responsibility prime status, which, according to the oekom Corporate Rating, recognizes industry leaders that have met industry-specific requirements.

The Dow Jones Sustainability Indexes (DJSI) track the social, environmental and financial performance of companies in the Dow Jones Global Index. UBS has been recognized as one of the leaders in its industry group in the 2014 DJSI with a 97% ranking.  This acknowledgement underscores UBS`s comprehensive commitments and activities across the wide-ranging economic, environmental and social criteria of this Corporate Sustainability Assessment.

We received the American Foreign Policy Association 2014 Corporate Social Responsibility award in acknowledgment of our firm’s support of projects focusing on education and entrepreneurship in communities around the world. We were also awarded the CommunityMark accreditation, the UK’s highest award for businesses that demonstrate how they maximize positive and minimize negative community impacts.

Training and raising awareness

We actively engage in internal and external education and awareness-raising on corporate responsibility topics and issues. Through induction, education and broader awareness-raising activities, we ensure that our employees understand their responsibilities in complying with our policies and the importance of our societal commitments. General information is published on our intranet and on our corporate responsibility website.

In 2014, we continued training and raising the awareness of employees, embracing the Code. All employees have to confirm annually that they have read UBS's key documents and policies, including the Code. Employees were also informed of the firm’s corporate responsibility strategy and activities through other training and awareness-raising activities. Community Affairs engagement forms part of our key internal leadership programs, while skills-based employee volunteering further contributes towards staff development.

Employees are required to undergo regular refresher training in issues relating to anti-money laundering, sanctions compliance and anti-corruption. This includes online training, awareness campaigns and seminars.
The Code also focuses on preventing the misuse of the financial system, including in relation to bribery. The specific anti-corruption standards of conduct that apply to all employees are also set out in the Group Policy Against Corruption. The policy sets out our zero-tolerance stance towards corruption and prohibits all forms of bribery by the firm and our employees, including so-called facilitation payments.
The business divisions regularly refresh their web-based training modules to address compliance issues, including anti-corruption standards. All Compliance & Operational Risk employees receive comprehensive mandatory training. Employees in specific areas also receive targeted training on client-related corruption, including the bank's own corruption risks in relation to intermediaries, gifts and entertainment, or when major new developments require additional training (e.g. UK Bribery Act).

Approximately 2,800 employees received training on environmental issues; 1,400 of them received general training on our environmental policy and programs and 1,400 participated in specialist training targeted at their respective areas of expertise and influence. Employee speaker sessions, exhibitions and lunchtime training sessions were delivered in all regions alongside specific technical training for the regional environmental teams

Sustainable performance and compensation

We strive to find the right balance of return for both our employees and our shareholders. We offer our employees competitive base salaries and variable performance awards that reflect their overall contributions. Our approach recognizes the need to compensate individuals for their performance within the context of market conditions, risk considerations, a fast-changing commercial environment and evolving regulatory requirements. We seek to encourage and reward behavior that contributes to the firm’s long-term success.

Our compensation structures and programs are designed to be appropriately balanced between fixed and variable elements. We emphasize the variable component as an incentive to excel and to foster a performance-driven culture, while supporting appropriate and controlled risk-taking. Employee compensation is viewed within a total reward framework that takes into account base salaries, discretionary performance awards and benefits.

Our compensation framework is based on our Total Reward Principles, particularly in terms of integrating risk control and managing performance, as well as in specifying how we structure our compensation and performance award pool funding. The Principles reflect our long-standing focus on pay for performance, sustained profitability, risk awareness and sound governance.

We have Group-wide ranks and country-specific salary ranges applicable to all employees, as well as a global role classification model. Human resource processes based on these global role profiles support clearly defined career paths and development plans for all employees.

Our global performance management framework provides regular opportunities for employee-manager dialog and consistent assessment processes that link performance, behavior, demonstrated achievement and compensation. It enables employees to set clear performance and development goals, to be effective in their roles and to advance their careers. It also provides a platform for managers to support their employees in contributing their full potential towards the firm’s success. In 2014, 100% of the employees eligible to participate in the firm’s performance assessment processes were reviewed.

Objectives focusing on our key corporate responsibility and sustainability commitments are set for managers and employees in pertinent departments or units. Most notably, this would include managers and employees in UBS and Society, corporate responsibility, anti-money laundering, human resources, environmental, and community affairs functions.

We believe UBS has one of the most demanding performance award frameworks relative to its peers. This framework has remained broadly unchanged in 2014. We have built a robust compensation model premised on generating attractive and sustainable returns for shareholders. The firm’s performance awards are designed to support this philosophy by emphasizing appropriate risk-taking and long-term performance, and by placing a substantial portion of compensation at risk. For instance, for 2014, we have over 5,000 employees with 54% of their performance award in deferred compensation that vests over two to five years.

Group Executive Board

The Human Resources and Compensation Committee (HRCC) reviews the performance of our Group CEO and other GEB members against the Group’s performance targets. The GEB’s performance awards are based on quantitative and qualitative performance Measures and consider performance of the individual and the Group overall.

  • The Group CEO / GEB performance scorecard is based on a set of quantitative and qualitative measures, and provides a framework for a balanced assessment. Group level, business division, regional, functional and qualitative performance measures are included in combination, depending on the individual GEB member’s remit.
  • Compensation plan forfeiture provisions enable the firm to reduce the unvested deferred portion if the compensation plans’ relevant performance conditions are not achieved.

    This means
  • the vesting of Equity Ownership Plan awards depends on both Group and divisional performance
  • Deferred Contingent Capital Plan awards only vest in full if the firm delivers an adjusted profit before tax and our phase-in tier 1 capital ratio does not fall below 10%. The firm may, at its discretion, elect to cancel any interest payments.

Board of Directors (BoD)

As set out in the Organization Regulations of UBS, BoD committee members must have the necessary knowledge and experience to fulfill their respective functions. Performance and effectiveness of the Chairman, the Board as a whole and each BoD Committee are assessed annually, a process overseen by the Governance and Nominating Committee (GNC). All BoD committees perform a self-assessment of their activities and report back to the full BoD.

The Corporate Culture and Responsibility Committee and its members as a group, are expected to: (i) commit such time to the role as may be necessary for the proper discharge of their duties. An indication of the time expected for this purpose will be set out in each of the CRC members' letter of appointment; and (ii) have good knowledge of corporate responsibility and relevant political issues and such other experiences in order to perform their duties. The CCRC's chairman is expected to have good knowledge of the relevant committee's area of responsibility together with experiences that the Board considers desirable in the context of that committee's work.

BoD members receive fixed fees for their services, 50% of which they must use to purchase blocked UBS shares. Alternatively, they may elect to purchase blocked UBS shares using 100% of their fees. BoD members do not receive variable compensation. This reinforces their focus on long-term strategy, supervision and governance, and helps them remain independent of the firm’s senior management. The Chairman, as a non-independent BoD member, receives a cash payment, UBS blocked shares and benefits.

History of corporate responsibility at UBS


Beginnings of Community Affairs at Wealth Management US


Establishment of Union Bank of Switzerland's 100th anniversary foundation (since 1999: UBS Culture Foundation)


Launch of "A Helping Hand from UBS Employees" (UBS Mitarbeiter helfen) in Switzerland


Establishment of Swiss Bank Corporation's 100th anniversary foundation (since 1999: UBS Foundation for Social Issues and Education)


Beginnings of Community Affairs in EMEA
Establishment of first energy functional unit


Co-founder member of Business in the Community in the UK


First bank in Switzerland with the position of environmental officer


First formal energy guidelines


Among the first signatories of the UNEP bank declaration (UNEP FI)


Introduction of first Environmental Policy


Publication of first environmental report and introduction of environmental credit assessment procedure for Swiss corporate clients


Introduction of employee volunteering at Wealth Management US and of matched-giving scheme for London employees


Launch of first cohesive and branded Community Affairs programme, "Tomorrow's Adults"


Launch of Socially Responsible Investment (SRI) Funds
Establishment of IB Community Affairs in Stamford (monetary and in-kind donations, and employee volunteering).


Merger of Union Bank of Switzerland and Swiss Bank Corporation to create UBS


Founding member of Wolfsberg Group
First bank to obtain ISO 14001 certification for worldwide environmental management system in banking business and launch of Environmental Risk Policy in IB
Establishment of UBS Optimus Foundation


UBS among first companies to sign UN Global Compact
Wolfsberg Group Anti-Money Laundering (AML) Principles for Private Banking (revised 2002)
UBS commences reporting on corporate responsibility in Annual Report


Establishment of Corporate Responsibility Committee, a Board of Directors committee, and publication of first Corporate Responsibility section in Annual Report
Establishment of a Global Diversity Steering Committee within the Investment Bank
Founding member of European Social Investment Forum (Eurosif)
Wolfsberg Group Commitment against Terrorism
Employee volunteering time off policy introduced for London employees


Wolfsberg Group Statement on Fight against Financing of Terrorism and AML Principles for Correspondent Banking
Launch of group-wide Diversity initiative
Founding signatory of CDP (originally known as Carbon Disclosure Project)
Commencement of joint WM and IB Community Affairs programme in Chicago
Expansion of in-house environmental program to Corporate Services outside Switzerland


First financial services firm to formally register interest as an Academy sponsor in the UK (leads to the opening of the The Bridge Academy, Hackney, in 2007)

Institution of NGO communications & analysis function


Establishment of SRI Equity Research in Investment Bank


Establishment of coordination function for Community Affairs in Switzerland
Setting up of UBS Tsunami Relief Fund
UBS commences social reporting in Annual Report (section on employees)


Introduction of Climate Change Strategy
Adoption of UBS Statement on Human Rights
Wolfsberg Group releases Investment Banking FAQs, Guidance for Mutual Funds and Pooled Vehicles, Correspondent Banking FAQs, and Guidance on the Risk Based Approach


Establishment of SRI Research in Global WMBB
Wolfsberg Group Statement against Corruption and Wolfsberg Group Statement on Transparency in International Payments
First company-wide volunteering at Wealth Management US


Introduction of group-wide Responsible Supply Chain Guideline
Wolfsberg Group Revised PEP FAQs


UBS applies Global Reporting Initiative (GRI) framework to its 2008 non-financial disclosure

UBS's Sustainability Disclosure 2008 meets the requirements of level A+ of the GRI (continued in subsequent years)
UBS Global Asset Management becomes a signatory to the Principles for Responsible Investment (PRI)


Launch of UBS's new Code of Business Conduct & Ethics

Publication of UBS Position on Controversial Activities


Convener of Thun Group of Banks on banking of human rights

Establishment of UBS Environmental & Social Risk Committee

Awarded with UK Big Society Award (established by the UK Prime Minister)


UBS celebrates its 150th anniversary (see

Setting up of the UBS International Center of Economics in Society at the University of Zurich

Global roll-out of the Investment Bank’s ESG Analyzer


Thun Group launches discussion paper on banking and human rights

Renewal of Climate Change Strategy


Introduction of UBS Environmental and Human Rights Policy

Launch of "UBS and Society", a dedicated, industry-leading platform for sustainable investing & philanthropy

Publication of UBS's comprehensive Environmental & Social Risk framework document

UBS's Sustainability Disclosure 2013 meets the requirements of GRI G4 comprehensive

Protecting people and planet

In-house environmental management - statistics

Environmental targets and performance in our operations 1
  GRI 2 2014 Target 2016 Baseline % change from baseline Progress /
Achievement 6
2013 2012
Total net greenhouse gas emissions (GHG footprint) in t CO2e 3 EN15-17 177,695 -50% 360,501 4 -50.7 On track 190,977 222,710
Energy consumption in GWh EN3 700 -10% 774 5 -9.6 On track 751 774
Share of renewable energy EN3 48.9% increase 23.9% 4 104.8 On track 47.9% 40.9%
GHG offsetting (business air travel) in t CO2e EN18 75,305 100% 0 4 100 On track 72,612 73,024
Paper consumption in kg per FTE 7 EN1 121 -5% 122 5 -0.8 Behind schedule 121 122
Share of recycled and FSC paper EN2 61.8% 60% 55.8% 5 10.6 On track 57.6% 55.8%
Waste in kg per FTE 7 EN23 213 -5% 232 5 -8.2 On track 214 232
Waste recycling ratio EN23 54.7% 60% 53.9% 5 1.4 Behind schedule 55.3% 53.9%
Water consumption in m m3 8 EN8 1.08 -5% 1.22 5 -11.6 On track 1.09 1.22

Legend: CO2e = CO2 equivalents; FTE = full-time employee; GWh = giga watt hour; kWh = kilo watt hour; km = kilometer; kg = kilogram; m m3 = million cubic meter; t = tonne

1 Detailed environmental indicators are available on the internet Reporting period 2014 (1 July 2013 - 30 June 2014).
2 Related to Global Reporting Initiative (see also EN stands for the environmental performance indicators as defined in the GRI.
3 GHG footprint equals gross GHG emissions minus GHG reductions from renewable energy and GHG offsets (gross GHG emissions include: direct GHG emissions by UBS; indirect GHG emissions associated with the generation of imported / purchased electricity (grid average emission factor), heat or steam and other indirect GHG emissions associated with business travel, paper consumption and waste disposal).
4 Baseline year 2004
5 Baseline year 2012
6 Green: on track / amber: behind schedule
7 FTEs are calculated on an average basis including contractors.
8 Change in methodology (new: drinking water consumption only), 2013 and 2012 data restated accordingly.

Environmental indicators1
    2014 2     2013 2 2012 2
  GRI 3 Absolute normalized 4 Data quality 5 Trend 6 Absolute normalized 4 Absolute normalized 4
Total direct and intermediate energy consumption 7   700 GWh *** Low decreasing 751 GWh 774 GWh
Total direct energy consumption 8 EN3 101 GWh ** Decreasing 119 GWh 112 GWh
natural gas   80.7% ** Stable 77.7% 84.8%
heating oil   15.8% *** Stable 16.3% 12.3%
fuels (petrol, diesel, gas)   3.4% *** Decreasing 5.9% 2.9%
renewable energy (solar power, etc.)   0.13% *** Increasing 0.10% 0.03%
Total intermediate energy purchased 9 EN3 599 GWh *** Low decreasing 632 GWh 662 GWh
electricity from gas-fired power stations   16.1% ** Stable 15.9% 19.9%
electricity from oil-fired power stations   2.7% *** Stable 2.6% 2.6%
electricity from coal-fired power stations   14.2% ** Stable 14.4% 17.4%
electricity from nuclear power stations   9.8% ** Stable 10.2% 12.2%
electricity from hydroelectric power stations   30.5% *** Stable 29.8% 29.5%
electricity from other renewable resources   17.0% *** Stable 17.0% 10.7%
district heating   9.7% *** Stable 10.1% 7.6%
Share of renewable energy and district heating   49% *** Stable 48% 41%
Total business travel EN30 684 m Pkm *** Stable 658 m Pkm 649 m Pkm
rail travel 10   1.8% *** Stable 1.7% 1.7%
road travel 10   1.0% ** Stable 1.1% 1.1%
air travel   97.1% *** Stable 97.2% 97.2%
Number of flights (segments)   296,067 *** Stable 287,481 308,555
Total paper consumption EN1 7,471 t *** Stable 7,693 t 8,083 t
post-consumer recycled EN2 18.8% *** Stable 18.7% 21.1%
new fibers FSC 11   42.9% *** Increasing 38.9% 34.7%
new fibers ECF + TCF 11   38.1% *** Low decreasing 42.3% 43.9%
new fibers chlorine bleached   0.2% ** Stable 0.2% 0.2%
Total waste EN23 13,133 t *** Stable 13,626 t 15,355 t
valuable materials separated and recycled   54.7% *** Stable 55.3% 53.9%
incinerated   19.8% *** Stable 19.8% 18.4%
landfilled   25.5% ** Stable 24.8% 27.7%
Total water consumption EN8 1.08 m m3 ** Stable 1.09 m m3 1.22 m m3
Greenhouse Gas (GHG) Emissions in CO2e            
Direct GHG emissions (Scope 1) 12 EN15 20,121 t *** Low decreasing 24,122 t 21,838 t
Gross indirect GHG emissions (Gross Scope 2) 12 EN16 188,474 t *** Stable 203,025 t 215,053 t
Gross other indirect GHG emissions (Gross Scope 3) 12 EN17 94,634 t *** Stable 92,817 t 94,052 t
Total Gross GHG Emissions   303,229 t *** Stable 319,964 t 330,943 t
GHG reductions from renewable energy 13   50,230 t *** Stable 56,375 t 35,209 t
CO2e offsets (business air travel) 14   75,305 t *** Stable 72,612 t 73,024 t
Total Net GHG Emissions (GHG Footprint) 15   177,695 t *** Low decreaing 190,977 t 222,710 t

Legend: GWh = giga watt hour; Pkm = person kilometer; t = ton; m3 = cubic meter; m = million; CO2e = CO2 equivalents

1 All figures are based on the level of knowledge as of January 2015.
2 Reporting period: 2014 (1 July 2013 - 30 June 2014), 2013
(1 July 2012 - 30 June 2013), 2012 (1 July 2011 - 30 June 2012)
3 Global Reporting Initiative (see also EN stands for the Environmental Performance Indicators as defined in the GRI.
4 Non-significant discrepancies from 100% are possible due to roundings.
5 Specifies the estimated reliability of the aggregated data and corresponds approximately to the following uncertainty (confidence level 95%): up to 5% - ***, up to 15% - **, up to 30% - *. Uncertainty is the likely difference between a reported value and a real value.
6 Trend: at a *** /**/ * data quality, the respective trend is stable (à) if the variance equals 5/10/15%, low decreasing/increasing (æ,ä) if it equals 10 /20/30% and decreasing/increasing if the variance is bigger than 10/20/30% (â,á).
7 Refers to energy consumed within the operational boundaries of UBS.
8 Refers to primary energy purchased which is consumed within the operational boundaries of UBS (oil, gas, fuels).
9 Refers to energy purchased that is produced by converting primary energy and consumed within the operational boundaries of UBS (electricity and district heating).
10 Rail and road travel: Switzerland only.
11 Paper produced from new fibers. FSC stands for Forest Stewardship Council, ECF for Elementary Chlorine Free and TCF for Totally Chlorine Free.
12 Refers to ISO 14064 and the “GHG (greenhouse gas) protocol initiative” (, the international standards for GHG reporting: scope 1 accounts for direct GHG emissions by UBS; gross scope 2 accounts for indirect GHG emissions associated with the generation of imported/purchased electricity (grid average emission factor), heat or steam; gross scope 3 accounts for other indirect GHG emissions associated with business travel, paper consumption and waste disposal.
13 GHG savings by consuming electricity from renewable sources
14 Offsets from third-party GHG reduction projects measured in CO2 equivalents (CO2e). These offsets neutralize GHG emission from our business air travel.
15 GHG footprint equals gross GHG emissions minus GHG reductions from renewable energy and CO2e offsets.

Environmental indicators per full-time employee
  Unit 2014 Trend 2013 2012
Direct and intermediate energy kWh / FTE 11,337 Stable 11,784 11,628
Business travel Pkm / FTE 11,086 Low increasing 10,318 9,805
Paper consumption kg / FTE 121 Stable 121 122
Waste kg / FTE 213 Stable 214 232
Water consumption m3 / FTE 17.5 Stable 17.1 18.5
CO2 footprint t / FTE 2.88 Stable 3.00 3.36

Legend: FTE = full-time employee; kWh = kilo watt hour; Pkm = person kilometer; kg = kilogram; m3 = cubic meter; t = ton

Environmental management indicators
    For the year ended %change from
Full-time equivalent, except where indicated GRI1 31.12.14 31.12.13 31.12.12 31.12.13
Personnel financial businesses   60,155 60,205 62,628 (0)
Personnel in specialized environmental units/functions   27 34 31 (22)
Environmental awareness raising          
Employees trained FS4 1,435 7,136 3,548 (80)
Specialized environmental training          
Employees trained FS4 1,371 2,135 966 (36)
External environmental audits2          
Employees audited FS9 116 58 63 100
Auditing time (days) FS9 16 11 11 45
Internal environmental audits3          
Employees audited FS9 93 160 249 (42)
Auditing time (days) FS9 29 47 51 (39)

1 Global Reporting Initiative (see also FS stands for the Environmental Performance Indicators defined in the GRI Financial Services Sector Supplement.
2 Audits carried out by SGS Société Générale de Surveillance SA. Surveillance audits took place in 2012 and 2013. The more comprehensive Re-Certification Audit was done in 2014.
3 Audits / reviews carried out by specialized environmental units. The implementation of Environmental and Social Risk Policies is also audited by Group Internal Audit.

Environmental and social risk management

Environmental and social risk assessments
    For the year ended % change from
  GRI 1 31.12.14 31.12.13 31.12.12 31.12.13
Cases referred for assessment 2 FS2 1,812 1,716 1,039 6
by region          
Americas FS2 354 367 288 (4)
Asia Pacific FS2 317 296 222 7
Europe, Middle East and Africa FS2 297 373 225 (20)
Switzerland FS2 844 680 304 24
by business division          
Wealth Management FS2 291 298 157 (2)
Wealth Management Americas FS2 21 46 5 (54)
Retail & Corporate FS2 749 598 223 25
Global Asset Management FS2 7 14 12 (50)
Investment Bank FS2 654 657 533 (0)
Corporate Center 3 FS2 90 103 109 (13)
by sector          
Metals and mining FS2 375 418 217 (10)
Oil and gas FS2 357 239 136 49
Agribusiness 4 FS2 178 155 45 15
Utilities FS2 89 95 38 (6)
Chemicals FS2 56 67 29 (16)
Infrastructure FS2 31 51 15 (39)
Other 5 FS2 726 691 559 5
by outcome          
Approved 6 FS2 1,560 1,465 812 6
approved with qualifications 7 FS2/FS3 186 197 171 (6)
rejected or not further pursued 8 FS2 56 54 56 4
pending 9 FS2 10 0 0 n/a

1 Global Reporting Initiative (see also FS stands for the Performance Indicators defined in the GRI Financial Services Sector Supplement.
2 Transactions and onboarding requests referred to environmental and social risk (ESR) functions.
3 Relates to procurement / sourcing of products and services.
4 includes since 2013 e.g. forestry products, biofuels, food and beverage.
5 Include e.g. financial institutions, aerospace and defence, telecom, technology.
6 Client / transaction / supplier subject to an ESR assessment and considered in compliance with UBS's ESR framework.
7 Client / transaction / supplier subject to an ESR assessment and approved with qualifications. Qualifications may include ring-fencing of certain assets, conditions towards client / supplier or internal recommendations.
8 Client / transaction / supplier subject to an ESR assessment and rejected or not further pursued.
9 Decision pending. Pending cases 2013 have been closed and realocated to the other outcome categories.

Responsible supply chain management

Responsible Supply Chain Management

We embed environmental and social standards into our sourcing and procurement activities. Our responsible supply chain management (RSCM) framework is based on identifying, assessing and monitoring supplier practices in the areas of human and labor rights, the environment, health and safety and anti-corruption, in line with our commitment to the UN Global Compact and the UBS Environmental and Human Rights Policy.

Committing suppliers to comply with our standards

We aim to ensure that our social and environmental values are being followed throughout the supply chain. Since 2008 a firm-wide guideline has provided systematic assistance on identifying, assessing and monitoring supplier practices in the areas of human and labor rights, the environmental protection and corruption. A central component of this guideline is the UBS Responsible Supply Chain Standard to which our direct suppliers are bound by contract. The standard defines our expectations towards suppliers and their subcontractors regarding legal compliance, environmental protection, avoidance of child and forced labor, non-discrimination, remuneration, hours of work, freedom of association, humane treatment, health and safety and anti-corruption issues.

The UBS Responsible Supply Chain Standard (documents)

Responsible Supply Chain Standards in:

Identifying, assessing and monitoring high-impact suppliers

We identify high-impact suppliers when establishing new contracts or renewals based on the suppliers’ provision of goods and services that have either a substantial environmental and social impact or are sourced in markets with potentially high social risks. Such high-impact suppliers are requested to fulfill further requirements towards product and service provision and are assessed against the UBS Responsible Supply Chain Standard. If this assessment reveals any non-compliance with our standard, UBS defines and agrees, together with the supplier, on specific improvement measures which we monitor. Lack of improvement may lead to the termination of the supplier relationship. We also regularly screen active suppliers as part of our environmental and social risk control processes.

2014 changes and reporting

In 2014, our sourcing and procurement services units were transferred to Chain IQ, a newly-founded company that will continue to apply UBS’s unchanged RSCM framework and processes. In the new set up, the RSCM framework is operated by experienced and specifically trained procurement and sourcing specialists (in 2014 176 such specialists were trained globally) and supported by internal and external experts.

The RSCM framework includes an impact assessment of newly sourced goods and services, which takes into account potential environmental and social impacts along the lifecycle of a product or a service, and all purchased goods and services are categorized accordingly.

Suppliers of potentially high-impact goods or services, are requested to conduct a self-assessment on their responsible management practices and to provide corresponding evidence. Actual and potential negative impacts that are considered in the impact assessment of purchased goods and services include:

  • Adverse environmental impacts due to inefficient use of resources (e.g. water, energy, biomass) and emissions during the lifecycle of the product
  • Hazardous substances, emissions, pollutants and limited biodegradability of products, adversely affecting people and the environment
  • Unfair employment practices, e.g. low wages, excessive overtime, absence of occupational health & safety measures
  • Risks for consumer health and safety, e.g. low indoor air quality, inappropriate warning signage
  • Procurement and use of materials with a strongly negative environmental and/or social impact
  • Insufficient management of subcontractors regarding sustainability aspects

In 2014, 134 suppliers have been classified as suppliers of newly sourced goods or services with potentially high impacts. 56% of these suppliers were considered as in need of improving their management practices. Specific remediation actions were agreed with all of them and the implementation progress has been closely monitored.

We also screened all our significant active suppliers for environmental and human rights issues and 90 suppliers with potential material risks were referred to a specialized environmental and social risk unit for enhanced due diligence. In 2014, no UBS supplier relationship was terminated as a result of RSCM assessments. This can partly be related to the fact that we assess the supplier's potential risks before signing a contract.

How we support our clients:

Our sustainable products and services

Sustainable investments 1
      For the year ended % change from
CHF billion, except where indicated GRI 2 31.12.14 31.12.13 31.12.12 31.12.13
UBS total invested assets   2,734 2,390 2,230 14
UBS SI products and mandates          
positive criteria FS11 2.62 2.18 1.60 20
positive criteria / RPI 3 FS11 43.57 39.00 32.15 12
exclusion criteria 4 FS11 68.60 56.09 35.68 22
policy based restrictions 5 FS11 466.52 444.62 6 181.64 5
Third-party 7 FS11 4.34 3.70 2.66 17
Total Sustainable investments FS11 585.65 545.60 253.73 7
Proportion of total invested assets (%) 8   21.42% 22.83% 11.38%  

1 All figures are based on the level of knowledge as of January 2015.
2 FS stands for the Performance Indicators defined in the Global Reporting Initiative Financial Services Sector Supplement.
3 UBS Global Asset Management Responsible Property Investment strategy.
4 Includes customized screening services (single or multiple exclusion criteria).
5 Assets subject to restrictions under UBS policy on the prohibition of investments in companies related to anti-personnel mines and cluster munitions (includes all invested assets held in Global Asset Management actively managed discretionary segregated mandates and all actively managed funds (retail and institutional) held by Global Asset Management, Wealth Management, Wealth Management Americas and Retail & Corporate).
6 Invested assets, subject to policy-based restrictions in 2013, have been restated.
7 SRI products from third-party providers apply either positive and exclusion criteria or a combination thereof.
8 Total SI / UBS's invested assets.

Sustainable investing is an approach that seeks to incorporate environmental, social and/or governance considerations into investment decisions. SI strategies seek to achieve one or several of the following objectives: achieve a positive environmental or social impact, align investments with personal values, or improve portfolio risk/return characteristics.

Positive criteria Positive criteria apply to the active selection of companies, focusing on how a company’s strategies, processes and products impact its financial success, the environment and society. This includes best-in-class, thematic investments or environmental, social and governance (ESG) integration.

Exclusion criteria one or several sectors are excluded based on environmental, social or ethical criteria, for example, companies involved in weapons, tobacco, gambling, or companies with high negative environmental impacts. This also includes faith-based investing consistent with principles and values of a particular religion.

In our Annual Report we report that in 2014 the Investment Bank supported 175 clients contribute to climate change mitigation and adaptation, either in equity or debt capital market transactions (total deal value CHF 17 billion) or as financial advisor (total deal value CHF 14 billion).

The methodology behind these numbers consists first in identifying clients who, through the products and services they offer, work to mitigate the effects of global climate change and help to adapt to changing climate impacts. Using internal expertise from UBS's Global Asset Management Sustainable Equities team and external third party sources, we identified 175 such clients to which we provided capital market or financial advisory services in 2014. The activities of these clients span all industry sectors, including renewable energy generation and clean tech but also energy efficiency, waste management, transport, infrastructure renewal and development or water management. They reach from small-cap and pure play startups to large international and diversified companies.

We then aggregated total CHF deal value of all global capital market deals in which UBS acted as lead manager or bookrunner for these companies and aggregate total CHF value of deals where UBS acted as either buy-side or sell-side financial adviser. Note that the data represents all our transactions with these clients and not only to transactions that can be classified as directly climate-related.


To meet both client expectations and regulatory requirements, Wealth Management (WM) and Retail & Corporate (R&C) have established a Suitability Framework. This framework is supported by the UBS Client Experience with its structured advisory process, followed by the implementation of agreed solutions and by the proper documentation of the steps taken during this process.

Suitability Framework

In nearly all countries this expectation has been turned into a legal or regulatory requirement for banks acting as financial advisers. Most jurisdictions also require the systematic assessment and documentation of the suitability of products (including 3rd party products) and services, including compliance with applicable eligibility criteria and sales restrictions. These standards are reflected in local policies and procedures as well as the respective local control framework. The European Union's Markets in Financial Instruments Directive (MiFID) is one example of the reflection and implementation by UBS of specific standards required by a regulator in the applicable local control framework. Other locations apply similar standards as required by the relevant local regulators.

To meet both client expectations and regulatory requirements, Wealth Management (WM) and Retail & Corporate (R&C) have established a Suitability Framework. This framework is supported by the UBS Client Experience with its structured advisory process, followed by the implementation of agreed solutions and by the proper documentation of the steps taken during this process. It is completed by requirements for monitoring and control activities which target - amongst others - at capturing tail-risks. The existing global WM and R&C Suitability Framework is currently being revised to reflect the evolving legal and regulatory landscape.

Within the frame of its UBS Client Experience (Understand - Propose - Agree & Implement - Review), WM and R&C have established a structured advisory process, which is supported by a number of forms and tools at the disposal of the client advisors: In a first step, these forms and tools support the initial identification of a client's investor profile, including - amongst others - investment objectives and risk ability. In a second step, they serve the identification of an appropriate investment strategy for a specific client portfolio. Furthermore, a number of tools and platforms have been established, which allow for matching a client's investment strategy with appropriate investment proposals as well as to support client advisors in the review step.

Advisory platforms and tools segment products along the lines of their risk characteristics and thereby help clients and client advisors properly assess the impact of investment products and services on a client's portfolio. Additional processes provide for checks, that product documentation made available to both client advisors and clients contains adequate and easy-to understand information on product characteristics, balanced presentation of opportunities and risks, target audiences as well as scenarios for which a product could be used. Finally, specific legal documentation is required for certain products with specific risks (e.g. hedge funds).

Primary ownership of suitability risk and the responsibility for addressing suitability risk is owned by the business. Divisional policies in WM and R&C, WMA, IB, and Global AM (EMEA) make this clear. UBS has accordingly pursued a divisional approach to ensure compliance with rapidly changing regulatory regimes, as well as to address particular suitability obligations and remediation of identified gaps relating to the divisions.

Monitoring and controls for suitability follow a three tiered approach: the first level controls are conducted by origination under its Origination Control Framework, which is largely a set of controls designed to prevent/detect operational risks that arise in Origination and to ensure that residual risk corresponds to risk appetite. The second level controls are performed by Compliance & Operational Risk Control as a Global Key Control, which is part of the overall Compliance & Operational Risk Control Framework. These controls focus on both a "check the checker" approach, plus thematic, deep dive reviews. The third level controls sit with Group Internal Audit, as part of its annual Audit plan.

The UBS Client Experience also includes after-sales communication. These communications are, again, supported by a number of tools and platforms, including ready-to-use reporting and presentation material.

*Client Suitability means the consistency between the assets in the client's portfolio and the risk profile of the client, and the appropriateness of the advice including risk information and disclosure.
** Product Suitability means the opportunities and risks of individual products or services, which determines the categories of investors for which they are suitable.