UBS

The financial institution publishes an engagement report on sustainability impact topics and has a publicly available policy statement requiring suppliers to respect ILO core labour rights. Decision-making and oversight for the sustainability strategy are assigned to the highest governance body, with performance criteria for senior executive remuneration linked to specific sustainability targets. Responsibility for implementing the sustainability strategy is delegated to various functions, teams, or committees within the institution.

The institution has a stewardship policy that encompasses client and stakeholder engagement, advocacy, and partnerships, including criteria for successful stewardship outcomes, escalation routes for unsuccessful engagements, and guidelines for when escalations should occur. It has a publicly available policy statement that commits the institution to respect human rights. Furthermore, the institution transparently identifies key sectors, clients, and investees for engagement on climate and nature-related impacts, prioritising those with the highest impact. Also, it engages in partnerships to influence sectors, clients, and investees regarding their nature-related impacts and monitors its Scope 1-2 emissions.

The institution has a publicly available policy statement committing to respect specific workers’ rights but could reference all ILO fundamental rights at work. It states it does not make political contributions, with an opportunity to formalise this in a public policy document. It identifies material sustainability impacts across its value chain, considering objective criteria for prioritisation, yet could disclose its own impacts on these identified sustainability issues. The institution discloses plans to phase out products and services related to fossil fuel projects lacking a strategy aligned with a 1.5°C trajectory but could present a timebound strategy. Targets for climate solutions could be more defined regarding time and measurability. While it refers to nature protection and restoration, a strategy covering priority sectors is needed.

It monitors scope 3 emissions beyond financed emissions but could include additional categories and rationale for exclusions. Recommendations include disclosing the breakdown of clients by income group, ensuring the risk assessment process includes risks related to ILO fundamental rights, and providing a process for mitigating identified risks.

Additionally, it is recommended to provide an example of conclusions and actions taken regarding at least one salient human rights issue from the last three years.

This scorecard refers to information in English which was publicly available by July 15 2024. AuM and Total assets are stated in USD for comparability and have been calculated based on reported local currency values multiplied by applicable IMF currency converter values.