The goods and services we buy, how, from where and from whom we buy them are all crucial elements of our sustainability impact. This is why we’ve embedded Environmental, Social and Governance (ESG) practices into our sourcing and procurement activities. We’re committed to making a positive environmental and social impact and we expect the same from our suppliers.
We apply a sustainability and climate risk policy framework to all our activities and have set standards for supply chain management decisions. We’ve identified certain controversial activities we won’t engage in, and certain areas of concern where we’ll only engage in under stringent criteria.
Responsible Supply Chain Standards
Responsible Supply Chain Standards
Our firm-wide Responsible Supply Chain Management (RSCM) framework is a key component of our procurement activities. The framework is based on identifying, assessing and monitoring vendor practices in the areas of human and labor rights, environment and nature, health and safety, and anti-corruption.
Central to RSCM framework are our Responsible Supply Chain Standards (RSCS), to which our direct suppliers are bound by contract. We expect our suppliers to apply the same standards to their own suppliers and subcontractors as well. These standards set out our expectations from suppliers in relation to legal compliance, environmental and nature protection, avoidance of child and forced labor, non-discrimination, diversity, equity and inclusion, remuneration, hours of work, freedom of association, humane treatment, health and safety, anti-corruption measures, and whistleblowing protection.
Recognizing that there are different legal, competitive and cultural environments in which UBS's suppliers operate throughout the world, the RSCS serves as a benchmark for assessing sustainable practices of our suppliers.
Our high-impact vendors, that are identified when establishing new contracts or renewals, are assessed against our RSCS and are required to provide disclosures about their management practices along with corresponding evidence.
As a part of our vendor evaluation and selection process, we’ve included minimum weighting for ESG criteria in our tenders. This ensures that we award business to vendors with strong ESG performance and incentivize vendors who want to work with us to show commitment and improvement in these areas.
We’re unlocking the power of our supply chain to drive environmental action at scale. We engage with our suppliers on climate disclosures to create transparency and commitment towards the reduction of greenhouse gas emissions (GHG) in our supply chain.
Our climate disclosure expectations
Our climate disclosure expectations
We expect our suppliers to join our net zero journey and disclose their climate information through CDP, a non-profit, global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts. Being part of the CDP Supply Chain membership enables us to understand the environmental impact across our upstream value chain and strengthens our collective transition to a low-carbon economy and a sustainable future.
As we advance along the net zero journey, we’ve strengthened our vendor requirements in 2024 with an update to the Climate Disclosure Guideline for vendors. The updated guideline details requirements and expectations for suppliers on topics including disclosure, target setting, and emissions reduction. The guideline empowers our suppliers to understand and align with our sustainability goals. We regularly conduct webinars and guide suppliers through the disclosure process and requirements.
