UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington,

D.C. 20549

_________________

FORM 6-K

REPORT OF FOREIGN PRIVATE

ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

Date: March 9, 2026

UBS AG

(Registrant's Name)

Bahnhofstrasse 45, 8001 Zurich, Switzerland

Aeschenvorstadt 1, 4051 Basel, Switzerland

(Address of principal executive offices)

Commission File Number: 1-15060

Indicate by check mark whether the registrant files or will file annual reports under cover of

Form 20-F or Form 40-F.

Form 20-F

☒

Form 40-F

☐

This Form 6-K

consists of UBS

AG Sustainability Statement

2025 and related

disclosures prepared pursuant

to the

EU Taxonomy Regulation, which

appears immediately following this page.

Annual Report 2025 |

Sustainability Statement

Management report

The following disclosures

are required for

UBS AG by

the German law

implementing EU

directive 2014/95 (CSR

Richtlinie-

Umsetzungsgesetz / CSR-RUG) (nichtfinanzieller

Konzernbericht) (the EU Non-Financial

Reporting Directive) and

the EU

Taxonomy Regulation.

This Sustainability Statement has been

prepared with reference to

the Global Reporting Initiative (GRI)

and in accordance

with our Basis of preparation.

›

Refer to the Basis of preparation document, available at

ubs.com/sustainability-reporting

, for more information on the metrics

definitions, approaches and scope

›

Refer to the GRI Content index, available at

ubs.com/sustainability-reporting

, for more information on the metrics with references

to GRI standards

Independent assurance report on selected sustainability

metrics and disclosures

General information

Our business model

Our stakeholder engagement

Governance

Our sustainability governance

Business conduct and corporate culture

Strategy

Our sustainability and impact strategy

Our key aspirations and progress

Environmental information

Our climate transition plan

Supporting our clients’ low-carbon transition

Reducing our own climate impact

Managing the climate impact of our supply chain

Supporting our transition plan: key enablers

Social information

People and culture make the difference

Respecting human rights

Managing sustainability and climate risks

Sustainability and climate risk management framework

Risk identification and measurement

Monitoring and risk appetite setting

Risk management and control

Risk reporting and disclosure

Our investment management approach to sustainability

and climate risks

Resilience of UBS’s strategy and business model

Other supplemental information

Additional UBS Europe SE considerations for

sustainability and climate risk management

Information on non-financial disclosures

Information on UBS AG standalone and UBS Europe SE

consolidated pursuant to Art. 8 of the EU Taxonomy

Regulation

UBS Europe SE consolidated

Assets for the calculation of the GAR

105

GAR sector information

Annual Report 2025 |

Sustainability Statement

Annual Report 2025 |

Sustainability Statement

Annual Report 2025 |

Sustainability Statement

Annual Report 2025 |

Sustainability Statement

Annual Report 2025 |

Sustainability Statement

Annual Report 2025 |

Sustainability Statement

Annual Report 2025 |

Sustainability Statement

Annual Report 2025 |

Sustainability Statement | General information

General information

Our business model

UBS – who we are

We are

the world’s

only truly

global wealth

manager and

the leading

bank in

Switzerland. These

key pillars

of our

strategy

are enhanced by our

focused and competitive asset

management and investment banking capabilities.

Staying close to

our clients, whether they

are individuals, institutions or

businesses, and providing financial

advice and solutions to

help

them

achieve

their

goals

the

heart

what

do.

have

capital-generative

and

well-diversified

global

business model with strong competitive positions in our target markets and the regions in which we operate.

Our business

model, including

our regional

diversification, with

our deep-rooted,

risk-aware culture,

superior client

service

and prudent capital

management, is built

on our respected

brand and has

made it possible

to sustainably grow

profits

and deliver attractive capital returns to shareholders over the long term.

We are focused on driving sustainable long-term growth while maintaining risk and cost discipline

Our objective is to generate value for our stakeholders by driving sustainable long-term structural growth and

attractive

capital returns. To

accomplish this, we

are building on

our scale, content

and solutions, while

remaining disciplined on

capital, risk and costs. Maintaining a balance sheet for all seasons remains a foundation of our success and a significant

source of

strength and

resilience. This

provides us

with the

capacity to

invest strategically

and enables

us to

deliver against

our financial targets and

ambitions, which are outlined in

the “Targets, capital guidance and

ambitions” section of this

report.

Our growth plans

are rooted

in an attractive

business mix,

that is also

a source of

competitive strength,

and are supported

by collaboration between

our businesses. Our

asset-gathering businesses generate

close to

60% of

our revenues

and

are characterized

by being

structurally attractive

from a

capital consumption

perspective, representing around

39% of

our risk-weighted assets (RWA).

Around another third of our RWA

are in Personal & Corporate Banking in Switzerland,

our home market and an attractive, stable and

well-diversified economy, with low historic credit losses.

Furthermore, we

operate a capital-efficient Investment Bank, which is limited to 25% of Group RWA.

Our aim is to create long-term sustainable value.

We also have a responsibility to the communities in

which we live and

operate, and

to our

employees. We

have outlined

selected environmental,

social and

governance (ESG)

aspirations, which

are aligned with our financial targets and ambitions.

We have a global, diversified business model

Our invested

assets of

more than

USD 7trn are

regionally diversified

across the

globe. We

give our

clients access

to a

broad,

relevant

and

customizable

range

solutions,

which,

together

with

our

thought

leadership

and

capabilities,

position us well

to become their

partner of choice.

Our strategic ambitions

reflect the long-term

outlook on demographic

and social trends affecting wealth distribution, product demand and client experience.

We are among

the market leaders

in the

Americas, the

world’s largest

wealth pool

and one of

the fastest-growing

wealth

markets. Around half of the

invested assets our wealth management

clients entrusted us with are

booked in that region.

Following the acquisition

of Credit Suisse,

the Investment

Bank has

invested in growing

its Global Banking

and Global

Markets capabilities in the region, and is focused on cross-regional and cross-divisional collaboration to drive growth.

Asia Pacific is our fastest-growing

region, and where we continue

to lead as the

largest wealth manager

and remain a

consistent top-tier

investment bank.

We are

further investing

in and

growing our

businesses to

deliver leading

capabilities,

capitalizing on market momentum in the Hong Kong SAR and the mainland of China, leveraging strong cross-divisional

collaboration and global connectivity, and

driving growth through a diversified

footprint, with the Hong Kong

SAR and

Singapore as the regional

hubs, as well

as strategic partnerships in

markets such as Japan

and India. In

2025, our total

invested assets in Asia Pacific surpassed the USD 1trn milestone for the first time.

In EMEA, we are one of the largest wealth

managers, and we are focused on deepening our

share of wallet with EMEA-

domiciled global clients, while further driving profitability in select key markets, including the Middle East.

Finally, in Switzerland we have a highly integrated

business model and aim to reinforce our position

as the leading bank.

We are

driving our

digital transformation, enhancing

the client

experience and improving

efficiency, while

focusing on

capturing growth opportunities.

In 2025, UBS

was again named

Best Bank in

Switzerland by Euromoney,

for the eleventh

time since 2012. Our

role as a trusted

partner to the Swiss

economy remains central to

our strategy. This is

reflected in

our substantial

contribution to

the Swiss

economy, including,

among other

aspects, a

lending volume

commitment of

CHF 350bn.

Annual Report 2025 |

Sustainability Statement | General information

We deliver integrated coverage for clients by collaborating as one UBS

We are committed to

serving our clients as

one firm, with collaboration

across our business divisions

being a cornerstone

of our strategy

and a key

differentiator, as we

deliver the full

value of the

firm to clients.

For example, our

asset-gathering

businesses work

in synergy

to offer

clients a

comprehensive product

suite paired

with exclusive,

personalized services.

The Investment Bank complements these by delivering insights, execution capabilities and risk management expertise to

both wealth management clients with complex needs and Swiss corporate clients.

In today’s

interconnected world, our

wealth management

clients are

becoming increasingly

global and

mobile in

both

their business and personal

lives, demanding comprehensive, seamless,

multi-jurisdictional financial solutions. With

our

unmatched global footprint and

best-in-class solutions, we are well

positioned to connect our clients

to the firm across

jurisdictions in a systematic and integrated manner.

We are investing in our technology to improve the client experience and enhance employee productivity

We continue to focus on investing in a resilient and secure technology infrastructure that is designed to help ensure the

stability

our

services

for

our

clients

and

employees

worldwide.

This

includes

investments

strengthen

our

core

platforms, modernize applications and enhance system reliability, in an increasingly complex environment.

Since

our

acquisition

the

Credit

Suisse

Group

2023,

one

our

key

focus

areas

has

been

the

integration

technology and

operations. We

continue to

rapidly advance

in this

space, with

approximately 1,600

Credit Suisse

business

applications

decommissioned

the

end

2025

(55%

those

scope)

and

around

85%

Swiss-booked

client

accounts transferred. In addition, our strong

technology foundation has facilitated an overall

seamless integration across

the Group, including the migration of businesses and client accounts to the UBS platforms.

›

Refer to the “Integration of Credit Suisse” section of this report for more information

We also continue

to strengthen our

technology position, with

a focus on

accelerating our Group

artificial intelligence (AI)

strategy

achieve

impactful

outcomes

quickly

and

incrementally.

2025,

appointed

Chief

Artificial

Intelligence Officer to

support UBS’s transformation into

a fully AI-enabled

institution. We are

moving quickly to adopt

AI throughout

the Group

to reshape

business capabilities

and enhance

employee productivity,

and

we are

constantly

developing and exploring new

opportunities, from more traditional automation

to agentic AI solutions.

Our AI strategy

is centered around nine large-scale

transformational AI initiatives. These initiatives are

designed to have a broad

impact

across the Group,

increasing efficiency and

improving processes and

systems. For example,

we are implementing

the next

generation of software development,

which includes the widespread

deployment of AI-augmented development

tools,

enabling engineers

to deliver faster,

more innovative

and scalable solutions

and streamlining UBS’s

software development

cycle.

To support our employees, we

are upskilling and reskilling employees

in AI and adjacent technologies

through specific AI

training to

ensure innovation

is embedded

responsibly and

effectively. We

also continue

to invest

in partnerships

with

leading

academic

institutions

worldwide

and

other

key

players,

develop

ideas,

drive

positive

outcomes

across

the

Group and

foster pioneering

AI research.

For example,

we have

announced the

launch of

the Oxford-UBS

Centre for

Applied Artificial Intelligence, focusing on three key research areas (society, economy and the

future of AI). This enables

us to explore pioneering applications and practical solutions that can be implemented at scale across the Group.

These efforts

are

underpinned by

AI framework

and policy

that have

been designed

to safeguard

the interests

clients, employees and stakeholders. In parallel,

we maintain a strong focus

on operational resilience, cybersecurity and

data protection to support keeping our platforms secure, stable and available at all times.

›

Refer to the ”Risk management and control” section of this report for more

information

addition,

are

actively

building

out

foundational

digital

asset

infrastructure

launch

range

new

products

addressing evolving client needs. For example,

we are investing in our solutions

for the tokenization of real-world assets,

such as

UBS Tokenize

. We are

also developing digital

money offerings, such

as our

UBS Digital Cash

tokenized deposit

solution, and we are evaluating stablecoins. Finally, we are also exploring access to cryptocurrencies.

Supporting sustainability

We are guided by our ambition to

be a leader in sustainability. This is

reflected in our vision to be

the bank for the next

generation. To help

us realize that

vision, our sustainability

and impact strategy

is based on

three overarching strategic

pillars: Protect, Grow and Attract.

Excluding Non-core and Legacy.

Asian Private Banker (April 2025) and UBS estimate.

Annual Report 2025 |

Sustainability Statement | General information

Our stakeholder engagement

We engage with

UBS’s stakeholders, such

as clients, employees,

investors, policymakers, legislators

and regulators, along

with representatives of the business community, society and non-governmental organizations (NGOs), on a regular

basis

and on a

wide range of

topics. This engagement

helps us to

better understand stakeholder expectations

and concerns

and to manage

pertinent issues and

challenges. In recent

years, the exchange

of views and

ideas with stakeholders

sustainability-related

issues

has

grown

importance.

Such

interactions

are

undertaken

through

various

dedicated

channels.

Clients

Our

clients’

preferred

communication

channels

continually

evolve,

and

strive

engage

with

them

the

most

convenient way.

We use

a variety

of channels,

in particular

digital channels

and regular

client relationship

and service

meetings, as well as various corporate road shows and dedicated events, with a mix of hybrid and in-person events.

Global Wealth

Management engages

with clients

through a

broad range

of forums

and channels,

from personalized

private briefings with subject

matter experts to segment-specific

virtual and in-person events

and large-scale initiatives.

Through marketing and media

campaigns, events, advertising,

publications and digital-only

solutions, we helped

to drive

a greater awareness of

the firm among prospective

clients and reinforced trust-based

relationships between advisors and

clients. We have continued

to deliver capabilities

to clients, for example

through digitally enabled

e-banking and advisory

tools,

while

also

bringing

the

best

UBS

our

clients

via

units

such

Unified

Global

Alternatives, Unified

Global

Banking and Unified

Global Markets. We

have also

continued to leverage

artificial intelligence (AI)

to positively impact

our

business

and

serve

our

clients

efficiently.

Examples

include

STAAT

Insights

which

assisted

our

financial

advisors in their

client interactions through

the delivery of over

20 million insights in

2025, and our

AI-powered chatbots,

available

across

regions.

believe

will

continue

enable

personalized

advice

and

solutions

quickly,

ensuring a

more efficient

experience for

our clients

around the

globe. It

does not

replace trust

or human

interaction,

which are the cornerstones of our business.

Personal & Corporate Banking engages with clients via various means of communication, including regular client events

(leveraging a number

of formats, such

as webcasts and

in-person, virtual or

hybrid events), as

well as sustaining

many

events formerly

led

by Credit

Suisse. In

2025, we

further enhanced

our

digital engagement

strategies to

reach more

clients and

strengthen relationships

with existing

ones. We

utilize various

channels, including

social media,

online displays,

search engines and helplines, as well as our branch network.

In Asset Management, we use various channels to bring our clients the ideas, understanding and clarity to support their

investment

decisions.

Our

regular

investor

publications

provide

thematic

perspectives

and

actionable

insights,

supplemented by our global

program of events, which includes

our annual

The Red Thread

market outlook road show

key international

locations, as

well as

our flagship

UBS Reserve

Management Seminar

(RMS)

in Switzerland

and

Sovereign

Investment Circle

in Singapore.

These events

bring together

institutional investors

to debate

relevant topics

and share

best practices, while

the annual

RMS survey provides

an authoritative insight

into central bank,

sovereign and investor

sentiment and

trends. We

also continued

to host

a broad

range of

hybrid and

online events

to help

our clients

better

understand

market

challenges

and

opportunities, as

well

our

ongoing

engagement

through

our

social

media

and

digital platforms.

The Investment Bank hosted more than 240 conferences globally in 2025, providing clients with access to corporations,

experts,

research

and

capital

introductions.

The

events

covered

diverse

range

topics,

including

macroeconomic,

geopolitical, technology

and AI,

and sector-

and region-specific

themes, in

addition to

regulatory, product

and market

trends.

than

50,000

clients

took

part

such

events

over

the

year.

leverage

our

intellectual

capital

and

relationships and

use our

execution capabilities,

differentiated research

content, bespoke

solutions, client

franchise model

and global platform to expand coverage across a broad set of clients.

UBS Live Desk

, built within the

UBS Neo

platform,

provides

clients with

stream

fast-paced

commentary from

UBS traders.

The

UBS

Analytical Research

Community

(UBS-ARC)

is a

proprietary, interconnected

research network

of industry

leaders, subject

matter specialists,

executives,

academics and analysts in the Americas region.

Client feedback and surveys

engage

with

our

clients

regular

basis

and

wide

range

topics.

This

engagement

helps

better

understand

clients’

expectations

and

concerns, including

those

pertaining

sustainability,

and

manage

pertinent

issues

and

challenges.

Feedback

received

from

clients

relevant

our

policies

considered

the

regular

reviews

policies

and

incorporated where

applicable. Our

client insight

and

feedback

teams

are

responsible

for

gathering and

processing all demands and issues raised through our central channel, available online.

Annual Report 2025 |

Sustainability Statement | General information

Investors

We have regular interactions with

institutional investors, financial analysts and

other market participants, such as credit

rating agencies, including

on sustainability topics.

These interactions take place

through the UBS Investor

Relations team,

with subject

matter experts

engaged as

required, and

help us

to learn

about investors’

concerns and

address these

best possible. The Annual General Meeting is

also an open forum through which

to hear our shareholders’ concerns or

inquiries, which may then feed into our approach on material topics.

Employees

Our

employees want

have an

impact and

help

shape their

daily experience.

Therefore, they

have

opportunities

throughout the year to

connect with leadership and

share their views on

strategic alignment, the work

environment, line

manager effectiveness,

culture and

well-being. In

2025, initiatives

such as

our regular

“Ask the

GEB” and

Group CEO

townhall events

supported two-way

conversations on

topics including

the firm’s

strategy and

direction. Our

multi-faceted

employee listening strategy, including

short pulse surveys, employee

life cycle surveys and

focus groups on topics such

employee sentiment on

AI, enabled us

to gather insights

from all business

divisions. Our Group-wide

employee survey,

conducted in September

2025, assessed organizational

health indicators such

as line manager

effectiveness, employee

engagement, empowerment and culture.

Governments and regulators

Financial

market

stability

and

the

transition

toward

sustainable

world

are

largely

dependent

the

overall

economic,

regulatory

and

political

environment

and

the

conduct

firms.

actively

participate

political

and

regulatory discussions

to share

our expertise

on proposed

regulatory and

supervisory changes.

The dialogue

is coordinated

our

Governmental

Affairs

team

and

organized

regionally

under

the

leadership

the

globally

responsible

Head

Governmental Affairs. Our advocacy priorities

and engagements, both direct and

indirect through trade associations,

are

determined based on

the UBS Group’s

strategy and priorities

and aligned with

UBS’s senior management.

In Switzerland,

they must

be aligned

with the

general political

engagement approach

defined by

UBS’s internal

Political Board

Swiss

Chapter. In

the US,

our advocacy

priorities are

presented to

and approved

by the

Management Committee for

the US

Combined Operations at the beginning of every year.

Regarding

the

stability

the

financial

system,

UBS

advocates

for

internationally

aligned

regulatory

framework,

including for anti-money laundering and digital regulation,

as well as sustainability disclosures. Moreover, in the

wake of

the acquisition

of the

Credit Suisse

Group, UBS

supports in

principle most

of the

regulatory proposals

from the

Swiss

Federal Council,

as long

as they

are implemented

in a

targeted, internationally

aligned and

proportionate way.

UBS is

contributing its perspectives throughout

the public consultation process.

UBS has submitted a

consultation response to

the

proposed

changes

the

Capital

Adequacy

Ordinance,

including

changes

the

valuation

assets,

and

consultation

response

the

proposed

changes

the

Banking

Act

regarding

the

capital

treatment

foreign

participations. Both responses are publicly available.

In recognition of the essential role played by Switzerland’s political parties, UBS provided a total of CHF 1.2m in relation

to 2025 (2024: CHF

1.2m), as a

contribution to support their

operational costs. These financial

contributions are direct

and calculated based on the number of parliamentary seats the respective

party holds at the federal and cantonal levels.

Swiss parties

are eligible

to apply

for a

financial contribution

if they

commit to

free competition,

the market

economy

and the

Swiss financial

center. They

should also

have a

national focus

and either

form a

parliamentary group

in the

federal

parliament or

be represented in

at least one

cantonal government.

In addition, we

are a member

of several organizations,

including

industry

groups,

that

fund

their

activities

from

membership

fees

other

member

contributions.

Political

contributions,

any,

provided

these

industry

groups

are

subject

the

disclosure

requirements

per

the

Swiss

transparency requirements

for political

funding on

the part

of the

recipient (Art.

76 ff.

of the

Federal Act

on Political

Rights and

the Ordinance

on Transparency

in Political

Funding). Beyond

the above,

there were

no additional

material

contributions, including in kind.

›

Refer to UBS’s response to the

6 June 2025 Capital Adequacy Ordinance consultation and UBS’s

response to the 26 September

2025 consultation on the capitalization of foreign participations by parent companies

of systemically important banks, available

under “Investor presentations” at

ubs.com/presentations

, for more information

Other key societal stakeholders

Communities

We aim to maximize

our impact in local communities.

We recognize that

our long-term success depends on

the health

and

prosperity

the

communities

that

are

part

of.

Our

social

impact

strategy

guides

the

firm’s

charitable

contributions toward strategic

partners and initiatives that

align with the firm’s

priorities in the communities

where we

operate. Through local measures

and partnerships (including with academia), operating

within a global framework and

coordinated across regions,

we endeavor to deliver business and

community impact by identifying innovative and high-

quality programs that are aligned to

our business. We provide focused

financial and human support,

including employee

volunteering programs and client

participation where appropriate.

In addition, our partnerships

in academia contribute

to our efforts to engage with thought leaders at universities and other academic institutions.

Annual Report 2025 |

Sustainability Statement | General information

Non-governmental organizations

We regularly

interact with NGOs

and appreciate their

input and insight,

as they help

us consider our

approach to, and

understanding of, societal issues and concerns. These may then be considered as part of relevant topic discussions.

NGOs have long established

themselves as critical

watchdogs of companies, both

scrutinizing and challenging how

address a

broad range

of environmental, social

and human

rights concerns.

In 2025,

discussions with

NGOs remained

particularly focused

on climate

change, including

the transition

to a

low-carbon economy.

Other topics

discussed included

sustainable finance, human rights and nature.

Rating agencies

We also actively engage

in dialogue with

analysts at rating

and research agencies, including

on environmental, social

and

governance (ESG) matters, which helps us to evaluate

our sustainability performance and activities and provides a useful

means

benchmarking.

2025,

for

example,

provided

detailed

information

about

our

sustainability-related

performance to

a range

of agencies,

either in

response to

questionnaires or

via calls

(with ESG

analysts) and

the UBS

Group Sustainability Report regularly serves as a key source of information for these agencies.

Media

Our media teams maintain direct and long-term relationships

with media representatives across all our

business regions

and provide them with timely information on a wide range of global, regional and local topics.

Annual Report 2025 |

Sustainability Statement | Governance

Governance

Our sustainability governance

The role of the Board of Directors of the UBS Group and its committees

The

Board

Directors

the

UBS

Group

(the

BoD)

has

ultimate

responsibility

for

the

success

the

Group

and

for

delivering sustainable shareholder value within a

framework of prudent and effective controls.

The BoD determines the

Group’s strategy and the

necessary financial and human

resources, at the recommendation

of the Group Chief

Executive

Officer (the

Group CEO),

and also

sets the

Group’s values

and standards

to ensure

its obligations

to shareholders

and

other

stakeholders

are

met.

The

BoD

oversees

the

overall

direction,

supervision

and

control

the

Group

and

its

management.

also

supervises

compliance

with

applicable

laws,

rules

and

regulations.

The

Chairman

the

BoD,

together with

the Group

CEO, takes

responsibility for

UBS’s reputation

and is

closely involved

in, and

responsible for,

ensuring

effective

communication with

shareholders and

stakeholders, including

government officials,

regulators and

public organizations.

As of

31 December

2025, the

BoD of

the UBS

Group consisted

of 12

non-executive members,

of whom

41.7% were

women, and the Board of Directors

of UBS AG consisted of the

same 12 non-executive members, of whom

41.7% were

women. The numbers and percentages are unchanged from 2024.

Five committees support the BoD in fulfilling its duty through the respective responsibilities and authority

given to them.

All BoD committees have

specific responsibilities pertaining to environmental,

social and governance (ESG)

matters. For

example, the Corporate Culture

and Responsibility Committee (the

CCRC) is primarily responsible

for corporate culture

and sustainability, the Compensation Committee is responsible

for financial and non-financial compensation topics, the

Risk Committee (the RC)

supervises the integration of

sustainability-related matters in

risk management, the Governance

and Nominating

Committee supports

the Board

in establishing

best practices

in corporate

governance, and

the Audit

Committee has oversight of the control framework underpinning sustainability metrics.

›

Refer to the “Corporate Governance” section of this report for more information about BoD committees

The

CCRC

the

supervisory

body

primarily

responsible

for

corporate

culture

and

sustainability.

chaired

the

Chairman of the

BoD, with four

BoD members as

committee members. Permanent guests

include the Group CEO,

the

Group

Chief

Operating

Officer,

the

Group

Chief

Risk

Officer,

the

Chief

Sustainability

Officer

and

the

Group

General

Counsel. The CCRC oversees

our Group-wide sustainability and

impact strategy and key

activities across environmental

and social topics.

These include climate,

nature and human

rights. Annually, it

considers and approves the

Group-wide

sustainability

and

impact

objectives.

part

this

process,

also

considers

the

impact

and

financial

materiality

climate- and sustainability-related risks and opportunities on UBS.

The CCRC’s

function is

forward-looking in

that it

monitors and

reviews societal

trends and

transformational developments

and assesses their potential

relevance for the UBS

Group. In undertaking

this assessment, it

reviews stakeholder concerns

and expectations pertaining to

the societal performance of

UBS and the

development of its corporate

culture. UBS has

various

mechanisms

(including

complaint

and

feedback

procedures)

place

ensure

that

such

concerns

and

expectations

are

received,

managed

and,

where

necessary,

brought

the

attention

the

Group

Executive

Board

(the GEB) and the BoD. The CCRC is also responsible for

conducting the annual review process for the Code of Conduct

and Ethics of

UBS (the Code)

and for proposing

amendments to the

BoD. This process

includes a prior

review of the

Code

by the GEB and is led by the Group CEO.

The role of our executive management

As of 31 December 2025, the GEB consisted of 15 executive members, of whom 26.7% were women, and the UBS AG

Executive Board

consisted of

executive members,

of whom

21.4% were

women. Except

for the

President of

UBS

Switzerland AG, all the members of the GEB are members of the Executive Board of UBS AG. For both the GEB and the

UBS AG Executive Board, the number of members and the percentage of women are unchanged from 2024.

The GEB has executive management responsibility for

steering the Group and its business. It

develops the strategies for

the Group,

the business

divisions and

Group functions

and it

implements the

BoD-approved strategies.

The GEB

develops,

implements

and

maintains

appropriate

and

adequate

business

organization

designed

ensure

compliance

with

applicable laws and regulations and an appropriate management information system.

Annual Report 2025 |

Sustainability Statement | Governance

The GEB

also acts

as the

risk council

of the

Group. It

has overall

responsibility for

establishing and

implementing risk

management and control

in the Group.

It manages the

risk profile of

the Group as

a whole as

determined by the

BoD

and

the

and

manages

the

Group’s

reputation.

The

GEB

determines

its

requirements

for

risk

reporting,

including

improvements and changes to

the reports, and

receives periodic updates

on risk data

limitations. For the

management

risks,

UBS

maintains

risk

governance

framework.

This

framework

governs

risks

including

those

sustainability and climate, its own workforce, consumers and end users, and business conduct.

Our risk governance framework operates along three lines of defense.

Our first line of

defense, business and Group

functions management, owns its

risks and is accountable

for maintaining

effective processes

and systems

to manage

them in

compliance with

applicable laws,

rules and

regulations, as

well as

internal standards, including identifying control weaknesses and inadequate processes.

Our

second

line

defense,

control

functions,

separate

from

the

business

and

reports

directly

the

Group

CEO.

Control

functions

provide

independent

oversight,

challenge

financial

and

non-financial

risks

arising

from

the

firm’s

business activities, and

establish independent frameworks

for risk

assessment, measurement, aggregation,

control and

reporting, protecting against non-compliance with applicable laws, rules and regulations.

Our

third

line of

defense, Group

Internal Audit,

reports to

the

Chairman and

the

Audit

Committee. This

function

assesses the design

and operating effectiveness

and sustainability of

processes to define

risk appetite, governance,

risk

management, internal

controls, remediation

activities and

processes to

comply with

legal and

regulatory requirements

and internal governance standards.

›

Refer to the “Non-financial risk framework” in the “Risk management and control” section of

this report for information about

our approach to managing non-financial risks

Annual Report 2025 |

Sustainability Statement | Governance

The

Group

Chief

Risk

Officer

responsible

for

developing

and

implementing

control

principles

and

appropriate

independent control framework for sustainability and climate

risk within UBS, together with integrating it into

the firm’s

overall risk management and risk appetite frameworks. The

Head of Sustainability and Climate Risk supports the GEB by

providing

leadership

sustainability

risk

collaboration

with

the

business

divisions

and

Group

functions.

Our

sustainability and climate risk policy framework is applied Group-wide to relevant activities, including client and supplier

relationships.

Oversight of objective-setting and monitoring processes

UBS runs an annual

objective-setting process for objectives

related to sustainability and

impact matters, which includes

environmental

(including

climate-related)

and

social

topics.

delegated

the

Group

Chief

Operating

Officer

(since 1 January 2026) by the

Group CEO, the Group

Chief Operating Officer is

responsible for setting

the Group-wide

sustainability and impact strategy and developing Group-wide sustainability and impact objectives in alignment with

the

business

divisions

and

Group

functions.

The

annual

strategy

review

and

objective-setting

process

done

identify

priorities

and

strategic

focus

areas

across

the

Group.

Progress

made

implementing

Group-wide

sustainability

and

impact objectives

is reported

part of

UBS’s annual

sustainability disclosures

including the

UBS Group

Sustainability

Report. Objectives are considered

and approved annually by

the GEB and the

CCRC and progress toward

them is tracked

and reported internally on a quarterly basis.

Swiss law requires

Swiss companies to

achieve net-zero greenhouse

emissions in their

own operations by

2050. In line

with Swiss law,

and as set

out in this

report, UBS has

announced a climate

plan to achieve

net zero by

2035 across its

own operations (scope 1 and 2), well ahead

of the 2050 deadline. This plan is

integrated into the firm’s methodologies

and approaches. Adherence

is primarily driven

by three GEB

members: the Group

Chief Operating Officer,

along with risk

teams led by

the Group Chief

Risk Officer, and

compliance teams under

the Group Chief

Compliance and Operational

Risk

Control

Officer

and

considered

the

annual

GEB

performance

assessments.

UBS

considers

the

performance

assessments

determining

the

performance

award

decisions.

However,

there

direct

link

between

senior

management compensation and specific climate goals.

Ensuring (the availability of) appropriate skills and expertise

We consider the continuous education of the members of the BoD and the GEB to be an important priority and support

their participation

in various training

sessions. In addition

to an

induction program for

new BoD

members, continuous

training and topical

deep dives are

part of the

agendas of the

BoD and the

GEB. The BoD

and the GEB

are well diversified

and composed of

members with a

broad spectrum of

skills, educational backgrounds, experience

and expertise from a

range of sectors

that reflect the

nature and scope

of the firm’s

business. The Governance

and Nominating Committee

maintains a competencies and experience matrix to identify gaps

in the competencies and experiences considered most

relevant to the BoD,

taking into consideration the

firm’s business exposure, risk

profile, strategy and geographic

reach.

In recent years, the composition of the BoD has been systematically shaped in response to the identified requirements.

Our sustainability governance

Our sustainability

and corporate

culture activities

are grounded

in our

Principles and

Behaviors and

overseen at

the highest

level of the organization. Our Code covers our commitment to acting with the long term in mind and creating value for

clients, employees, communities and

investors. This includes our

commitment to protecting the

environment, including

fulfilling

our

respective

compliance

obligations.

Among

other

topics,

the

sustainability

governance

UBS

Group

oversees matters related to climate, nature and human rights.

Annual Report 2025 |

Sustainability Statement | Governance

Group Sustainability and Impact

Group Sustainability and Impact develops the Group-wide sustainability and impact strategy and oversees the strategy’s

implementation by the

business divisions and

Group functions responsible

for execution. Group

Sustainability and Impact

operates under the leadership of the Group Chief Operating Officer.

Each of the Group Sustainability and Impact senior

managers listed below,

specifically the Chief Sustainability

Officer,

the Head of

Social Impact and Philanthropy

and the

Group

Sustainability

and

Impact

Chief

Operating

Officer,

report

directly

the

Group

Chief

Operating

Officer

(since 1 January

2026).

Senior

managers

may

hold

than

one

role

and,

where

required,

may

have

additional

responsibilities and reporting lines in the Group’s legal entities.

Group Chief Operating Officer

Effective from

1 January

2026, the

responsibilities previously

held by

the GEB

Lead for

Sustainability and

Impact have

been integrated into

the broader

remit of

the Group

Chief Operating Officer.

The Group

Chief Operating Officer

now

has overall

responsibility for

overseeing and

managing Group

Sustainability and

Impact.

In particular,

the Group

Chief

Operating Officer is responsible for

the oversight of matters

such as maintaining an

appropriate and adequate functional

organization designed

to ensure

compliance with

applicable laws

and regulations.

Additionally,

where

necessary,

the

Group Chief

Operating Officer

represents UBS

in interactions with

regulatory authorities

on Group-wide

sustainability-

and

impact-related

topics

coordination

with

the

Group

CEO,

other

GEB

members

and

Governmental

and

Regulatory Affairs. In relation to disclosures, the Group Chief Operating Officer is responsible for the annual UBS Group

Sustainability Report and associated disclosures process, jointly with the Group Chief Financial Officer.

GSI Business Development and Client Forum

The GSI Business

Development and Client

Forum (the GSI

BDCF) is the

most senior administrative

body overseeing the

Group-wide sustainability

and impact

activities. The

forum is

focused on

client, product

and impact

approaches in

relation

to the

overall UBS

sustainability and

impact implementation

activities, together

with the

business divisions,

operating

under the oversight of the Group Chief Operating Officer.

Chief Sustainability Officer

The

Chief

Sustainability

Officer,

jointly

with

the

Head

Social

Impact

and

Philanthropy,

supports

the

Group

Chief

Operating Officer in setting

the Group-wide sustainability and

impact strategy,

in alignment with the

business divisions

and Group

functions. The

Chief Sustainability

Officer develops

and maintains

frameworks and

methodologies to

drive

Group-wide

consistency.

In addition,

the Chief

Sustainability Officer

manages the

annual UBS

sustainability reporting

process jointly with Group Finance.

Head of Social Impact and Philanthropy

The

Head

Social

Impact

and

Philanthropy

oversees

the

UBS-governed

charitable

entities,

including

UBS

Optimus

network of foundations

entities and

donor-advised fund entities.

The remit of

the Head

of Social Impact

and Philanthropy

includes overseeing the strategy,

corporate structure and governance, financial

matters and relevant

risks and controls.

The Head

of Social

Impact and

Philanthropy also

manages

the social

impact and

philanthropy client

and employee

offering

through

the

provision

philanthropic

insights,

advice

and

execution

services

existing

and

prospective

clients

and

volunteering opportunities to UBS employees.

Group Sustainability and Impact Chief Operating Officer

The Group Sustainability and Impact Chief Operating

Officer manages the end-to-end processes and

the operating and

control environment of Group

Sustainability and Impact, together with the

business divisions and Group functions. The

Group

Sustainability

and

Impact

Chief

Operating

Officer

ensures

effective

oversight

operational

performance

and

timely escalation of

relevant matters impacting

Group Sustainability and

Impact. Furthermore, the

Group Sustainability

and Impact Chief Operating Officer supports the Group Chief Operating Officer in developing Group-wide sustainability

and

impact

objectives,

alignment

with

the

business

divisions

and

Group

functions,

implement

the

Group-wide

sustainability and impact strategy and monitor the progress against these objectives.

GSI Execution Forum

The Group Sustainability

and Impact Chief

Operating Officer is

supported by the

GSI Execution Forum.

This forum reports

to the GSI BDCF and is responsible for the day-to-day oversight

of the front-to-back operating environment and for the

implementation

the

Group-wide

sustainability

and

impact

strategy

through

Group-wide

strategic

objectives

and

outcomes.

In addition

to the

roles outlined

above, the

following senior

managers also

hold responsibilities related

to Group-wide

sustainability:

the

Head

Sustainability

and

Climate

Risk,

the

Sustainability

Chief

Financial

Officer,

the

Group

Head

Compliance &

Investigations, the

Global Head

of Sustainability

Regulatory Strategy and

the Head

of Sustainability

and

Impact Legal.

Annual Report 2025 |

Sustainability Statement | Governance

Business conduct and corporate culture

The Code of Conduct and Ethics of UBS

UBS recognizes the value of

having a strong and inclusive

culture to define how we

work together every day. Our

culture

is based on

our three keys

to success: our

Pillars, Principles and

Behaviors. These keys

drive our business

decisions and

people management processes. Culture-building behavior is promoted through a number of Group-wide, divisional and

regional initiatives. Examples of Group-wide

actions that are promoted through

regular communications include (but are

not limited to) our

risk culture campaign (including

a focus on speaking

up and whistleblowing), the

Three Keys on Air

series of

events (in

2025, this

highlighted key

aspects of

our culture,

including developing

a winning

mindset, lifelong

learning, and

artificial intelligence

and ethics),

and learning and

development for

employees and

line managers

(including

mandatory

training).

are

also

continuing

our

core

culture

programs,

such

Kudos

(peer-to-peer

recognition)

support connectivity

and collaboration

and the

One UBS

program, formerly

known as

our Group

Franchise Awards,

which

rewards cross-divisional business collaboration and recognizes employees for sharing simplification and innovation ideas

across the

firm. An

important

global initiative

launched in

2024,

and continued

in 2025,

was

“Crafting our

future”,

interactive in-person sessions

to ensure leaders

and line managers

were aligned around

our strategic priorities

and our

culture to effectively contribute to our success.

In the Code of

Conduct and Ethics of

UBS (the Code), the

Board of Directors (the BoD)

and the Group Executive

Board

(the GEB) set out the principles and practices that define

our ethical standards and the way we do business,

which apply

to all

aspects of

our business.

The

Corporate Culture

and Responsibility

Committee is

responsible for

conducting the

annual review of the Code and

for proposing amendments to the

BoD. This review process includes

a prior review of the

Code

the

GEB

and

led

the

Group

CEO.

undertaking

this

assessment,

the

committee

reviews

stakeholder

concerns and

expectations pertaining

to the

societal performance

of UBS

and to

the development

of UBS’s

corporate

culture.

The Code

sets out

the principles

and commitments

that define

our ethical

standards and

the way

we do

business. It

constitutes a commitment to

respecting the laws,

rules and regulations that

are designed to

create a level

playing field

for all – including competition and antitrust laws and fair

access requirements. The Code commits all UBS employees to

do whatever they

can to combat

money laundering, fraud,

corruption and terrorist

financing. It also

requires that UBS

employees do not

help or advise

our clients, or

any other party,

to evade taxes

or misreport taxable

income and gains.

Furthermore, the

Code states

that

we should

not contract

with

third parties

who provide

services for

UBS

or on

our

behalf, where those services help others improperly evade taxes.

›

Refer to the Code of Conduct and Ethics of UBS, available at

ubs.com/code

, for more information

Principles for identifying, preventing, escalating and managing conduct risks are established

in the Group-wide conduct

risk management framework. These

principles are aligned

to the Code

and the Group-wide

Escalation Framework and

include the following.

–

Our

strategy and

business models,

and

our

incentives and

rewards, are

designed to

actively

manage conduct

risk.

Above all, our culture and our Principles and Behaviors are the strongest mitigants to our exposure to conduct risk.

–

Reviewing relevant management information is critical to providing a view

of the risk landscape and where risks may

be crystallizing.

–

Policy, appetite and

governance are key

components of our

conduct risk framework

and contribute to

its sustainability.

Identifying actual or

potential conduct risks

is the responsibility

of every UBS

employee. Employees must

take appropriate

steps to identify and escalate any actual or potential conduct risks they may see

in their day-to-day activities and have a

duty to role model UBS’s Behaviors and support its risk culture of ”see something, say something”.

Roles and responsibilities for management and governance of conduct are defined

in the Group Policy on Conduct Risk

Management. They include

reviewing employee, market

and client-related conduct

risk information, performing

periodic

reviews, and considering

employee and client feedback.

Ongoing monitoring

covers the

activities of

both the

firm and

employees, to

detect issues

that may

have a

potential

impact

clients

and

markets,

and

detect

individual

cases

employee

misconduct.

Conduct

risk

reporting

and

management information included

in the Group

Risk Report provides

the GEB with

actionable insights and

visibility on

relevant trends and themes.

We are committed to incentivizing

the right behavior by establishing

reward principles and internal control

frameworks

to support adherence to internal and external standards, laws, rules and regulations.

Breaches

our

Code,

UBS

policies

external

laws,

rules

regulations

may

result

disciplinary action,

and

including dismissal. In addition, employee conduct is considered in year-end performance and reward decisions.

Annual Report 2025 |

Sustainability Statement | Governance

Conduct and culture training

We have a global

mandatory training module titled

“Conduct and Culture”, which

educates all employees on

adherence

to the three

keys. The training

explains how our

culture and the

Code guide business decisions,

clarifies standards and

expectations regarding

employee behavior

and accountability,

and helps

employees identify

and respond

to conduct

risks.

Additionally, all employees must annually affirm that they have read and will adhere to the Code and other key policies,

supporting a

culture where

ethical and

responsible behavior

is part

of our

everyday operations.

By following

and affirming

the Code, we foster a culture where responsible behavior is ingrained in a way that protects our clients, our people and

our reputation and

ensures stability and

sustainable performance. This

safeguards our ability

to create lasting

value for

our shareholders, clients and societies.

Group-wide Escalation Framework

Significant matters requiring immediate senior management awareness and action are managed in accordance with our

Group-wide Escalation Framework.

This lays out:

(i) minimum requirements

for escalations; (ii)

applicable escalation paths

for

distinct

governance

dimensions;

and

(iii)

the

interplay

between

governance

dimensions.

The

framework

complemented

divisional

regional

legal

entity

annexes

detailing

specific

escalation

requirements

outlining

taxonomies, thresholds, processes and protocols. The framework ensures that significant

matters are escalated promptly

and

appropriately,

without

replacing

day-to-day

governance,

line

management

responsibilities

(e.g.

determining

preliminary severity and appropriate initial reaction), monitoring / reporting or regular risk assessments.

Whistleblowing protection for employees

Employees

are

encouraged

escalate

any

potential

issues

and

violations

line

managers

and

control

functions.

Alternatively,

our

Whistleblowing

Protection

for

Employees

policy

and

procedures

enable

employees

raise

concerns or to escalate potential breaches of laws, regulations,

rules or other legal requirements, policies or professional

standards, sexual

harassment or

misconduct, or

any violation

of the

Code, without

fear of

retaliation. Whistleblowing

concerns may

be raised

confidentially or,

if preferred,

anonymously, via

our dedicated

whistleblowing channels,

which

are made available

Group-wide to all

employees. These channels,

including the whistleblowing

intranet form

and hotline,

are available at all times. All concerns raised are taken seriously and reviewed.

All employees

are required

to complete

mandatory “Speaking

Up at

UBS” training

every two

years, with

new joiners

required to complete it during onboarding. This training aligns with the Whistleblowing Protection for Employees policy,

raising awareness

of available

reporting channels

and providing

line managers

with guidelines

for handling

employee

concerns.

addition,

encourage

speak-up

culture

through

Group-wide

awareness

activities,

such

communications from the

GEB, newsletters, whistleblowing

campaigns and regular

employee surveys. These

initiatives

reinforce our commitment to non-retaliation and promote safe reporting options.

For staff receiving

whistleblowing reports, there

are procedures and

guidance on handling

such reports to

ensure each

whistleblowing

concern

taken

seriously

and

reviewed.

Whistleblowing

reports

made

through

the

dedicated

whistleblowing channels (intranet

form and hotline)

are received and

appropriately triaged by

the relevant Regional

Head

of Investigations

and their

delegates (selected

investigators in

their team),

who are

trained on

how to

handle such

reports.

We also maintain controls and processes to check for potential retaliation against known whistleblowers.

Group Investigations

We maintain an investigations framework and the Group Investigations Policy, defining clear roles and responsibilities at

two

levels:

(i)

cross-functional

governance

bodies

that

have

responsibilities

across

the

investigations

portfolio;

and

(ii) those with prescribed roles and responsibilities over specific investigations.

Our Group Investigations function is

responsible for conducting and overseeing all

investigations, including incidents of

corruption and bribery. The investigations

must be conducted and governed

in a way that ensures

they are independent,

objective

and

reliable,

defined

our

Group

Investigations

Policy,

which

governs

the

conduct

all

investigations,

including whistleblowing investigations.

The investigations framework

also covers reporting

requirements, to ensure

accurate and

complete quarterly reporting

to the BoD and the GEB, as well as to regulators.

Annual Report 2025 |

Sustainability Statement | Governance

Combating financial crime

The Group

Executive Board

(the GEB)

oversees our

efforts to

combat money

laundering, corruption

and terrorist

financing.

The first line

of defense owns

the anti-money-laundering (AML)

and terrorist-financing risk

front to back

for its respective

clients and their activities and has the primary responsibility for managing that risk. Dedicated staff in the second line of

defense

support

the

organization

developing,

maintaining

and

implementing

Group

financial

crime

programs,

including control and

oversight. The

third line of

defense is

the reinforcement

component led by

Group Internal

Audit

and independently evaluates the financial crime control frameworks.

UBS complies

with applicable

laws and

regulations and

is committed

to meeting

industry standards

regarding the

effective

prevention of money

laundering and financing of

terrorism. By taking

measures to prevent and

detect non-compliance

with laws

and regulations,

the firm

does not

tolerate or

facilitate criminal

activity or

breaches of

the latter

or spirit

applicable laws, regulations, rules and policies designed to prevent such activities.

UBS does not knowingly

engage in business activities

that present unacceptable money

laundering, fraud, sanctions or

corruption risks. Money laundering, fraud, sanctions, and bribery

and corruption risks associated with all of our business

operations are

assessed annually

against our

control framework

and as

a firm

we take

action, where

appropriate, to

further mitigate these risks through appropriate policies, procedures and controls.

In 2025, all employees of

UBS, including its senior management and

governance bodies, received adequate training on

financial crime prevention matters,

covering AML / know

your client (KYC), sanctions, fraud

and anti-corruption topics.

All staff are required to complete the Global Financial Crime Prevention refresher module on an annual basis.

Public–private partnerships

UBS is a founding

member of the Wolfsberg Group,

an association of global banks

that aims to develop

standards for

the

financial

services

sector

prevent

financial

crimes,

such

money

laundering,

fraud,

corruption

and

terrorist

financing, and to develop industry standards for KYC due diligence and ongoing transaction monitoring.

The Wolfsberg Group brings together banks from around the world at its annual forum and regional outreach meetings

focused on financial

crime topics. It

also delivers an

annual academy to

support the development

of junior financial

crime

prevention officers

and works

on guidance

papers in

related key

areas of

financial crime.

UBS is

actively involved

with

this group.

UBS is a member of various

public–private partnerships operating globally that

have been set up to foster

closer working

relationships between financial institutions and law enforcement.

Prevention and detection of corruption and bribery

The Group Policy

Against Bribery and

Corruption (ABC)

is consistent with

the principles of

the United Nations

Convention

against Corruption.

The ABC policy provides the following definitions of bribery and corruption.

–

A bribe

or bribery

is the

intentional offering,

promising, giving

or receipt

of anything

of value,

whether directly

indirectly,

from

any

person,

for

that

person

act

improperly

refrain

from

acting

act

breach

performance of

official or

fiduciary duties,

or in breach

of contractual

or other

obligations in

order that

UBS may

obtain

or retain business, or gain any other improper advantage.

–

Corruption involves the

misuse of public

office or entrusted

power for private

gain. Corruption can

be public (involving

public officials) or commercial (involving private parties).

The ABC policy sets out a zero-tolerance approach for bribery and corruption; the Group is committed to detecting and

preventing

bribery

and

corruption

and

requires

employees

and

associated

persons

(defined

persons

that

perform

services for, or on behalf

of, a commercial organization) to do

business in a fair and

transparent manner, in compliance

with the principles of the policy.

Each employee is responsible for:

–

complying with UBS’s

zero-tolerance approach to

bribery and corruption

and the requirements

set forth in

the ABC

policy and related procedures;

–

taking reasonable steps to detect and prevent bribery;

–

maintaining accurate books and records that fairly reflect employees’ expenditure; and

–

reporting

cases of

concern or

doubt to

the

Anti-Bribery and

Corruption team

in the

second line

defense or

via

channels defined in the Group’s policy on whistleblowing protection for employees.

Delegated by the

Global Head

Financial Crime Prevention,

the Global Head

Anti-Bribery and Corruption,

supported by

the specialized teams, is

responsible for establishing and

maintaining an ABC program

that incorporates the principles

the ABC policy

as minimum global

standards. The BoD

Risk Committee and

the GEB oversee

the Financial Crime

program

(including

ABC)

through

regular

reviews

and

reporting.

have

adequate

systems

and

controls

place

and

hold

ourselves accountable for detecting, stopping and reporting bribery and corruption matters.

Refer to wolfsberg-group.org for more information.

Annual Report 2025 |

Sustainability Statement | Governance

The

ABC

framework

comprises

tone

from

the

top

communications,

policies,

procedures,

training,

risk

assessments,

controls

across

all

key

risk

areas,

investigations

and

incident

management,

and

monitoring

and

assurance

(including

independent

audit).

The

program

aligns

with

globally

recognized

standards

and

legal

and

regulatory

requirements

designed to

prevent and

mitigate bribery

and corruption

risks across

all jurisdictions

in which

we operate,

e.g. the

Bribery Act and the US

Foreign Corrupt Practices Act. The

GEB and senior management set

the policy and risk appetite

and all employees are

accountable for complying with

the policy. The ABC

framework includes controls across

all key risk

areas: employees, third parties (vendors and intermediaries), charitable and political donations and

sponsorships, hiring,

gifts and

business entertainment,

joint ventures

and acquisitions,

and client-related

ABC risk.

There is

regular control

testing to ensure that the framework and controls are appropriately designed and operating effectively.

Where corruption

or bribery

incidents arise,

these are

identified through

controls monitoring,

self-declaration or

reporting

(e.g.

use

the

whistleblower

hotline),

ongoing

due

diligence,

risk

assessment

and

approval

processes.

Incident

response is

based on

the assessed

severity and

impact, with

senior management

involved for

more serious

incidents.

Incidents that are breaches of UBS policies,

including the ABC policy, are dealt

with pursuant to the Employee Incidents

Policy and framework and may result in disciplinary action, including dismissal, in serious cases.

Risk assessments are

conducted under the

ABC program, at

a minimum annually,

and are

designed to ensure

that the

framework

appropriately

designed

and

operating

effectively

address

both

current

and

any

emerging

ABC

risks.

Regular updates on

the ABC program’s

operating effectiveness and

incident management

reporting are shared

with first-

and

second-line

management

committees.

They

are

also

reported

the

BoD

and

the

Audit

Committee.

Reporting

includes provision of qualitative and quantitative risk indicators, which cover both inherent and control risk.

The ABC policy

is accessible to

all employees through

our internal policy

repository and relevant

ABC intranet page.

addition, an annual declaration and commitment to this

policy is required from all UBS staff that includes

a statement of

compliance toward any past or current bribery- or corruption-related incidents.

Additionally, our

suppliers must

comply with

anti-bribery and

corruption laws

at all

times, with

expectations outlined

within our suppliers’ policy: the Anti-bribery and Corruption, Sanctions, Fraud and Anti-Facilitation of Tax Evasion Policy.

›

Refer to

ubs.com/suppliers

, for more information

ABC training is mandatory for all UBS Group employees, including the GEB and the BoD, and is rolled out on an annual

basis. All new joiners

are required to complete

a comprehensive training course within

30 days of starting

employment

with the firm and annually thereafter a refresher course is required to be completed by all employees.

Onboarding and ongoing monitoring

UBS performs risk-based

initial due diligence

on all clients,

which is designed

to establish their

identity and ownership,

the

nature

their

business activities

and

the

source(s) of

their

wealth

and

funds.

This

includes

formal

processes

for

mitigating the

risk of

impersonation fraud

in circumstances

where we

are not

doing business

on a

face-to-face basis.

Where the client

represents a potentially

elevated risk according

to the Group

Anti Money Laundering

and Know Your

Client Policy, enhanced due diligence is performed.

As per the Code

of Conduct and Ethics,

UBS is committed to

respecting the laws, rules

and regulations that are

designed

to create a level playing field

with fair access requirements. We act

fairly, respectfully and honestly toward

everyone with

whom we deal.

After a client

onboarding is completed,

ongoing due diligence

and name screening

are performed during

the life cycle

the

client

relationship.

Clients

are

assigned

risk

rating

and

client

activities

and

transactions

are

subject

AML

transaction monitoring in accordance

with this risk rating.

In addition, ongoing periodic

KYC reviews are conducted

with

varied frequency, driven by the client risk rating.

The

Group

Anti

Money

Laundering

and

Know

Your

Client

Policy

sets

out

the

process

and

criteria

relating

the

identification, senior management sign-off,

periodic review and

ongoing monitoring of

clients deemed to

be politically

exposed

persons, along

with

other

clients

who

have

links

with

jurisdictions

industries

that

pose

elevated

levels

financial crime risk.

Red flags must

be referred to

Financial Crime Prevention

if any UBS staff

become aware of

potentially suspicious activities

during the

client life cycle

and this

may result in

internal reviews, suspicious

activity report filing

and / or

client exit, as

appropriate.

UBS adheres

to the

global Financial

Action Task

Force standards

and local

laws and

regulations with

regard to

record-

keeping.

The financial

crime framework

is subject

to regular

independent controls

testing, in

both the

first and

second lines

defense.

The

Group

Internal

Audit

team

performs

cycle

independent

audit

reviews

covering

the

financial

crime

framework globally and

cross-divisionally and we

are subject to

ongoing supervision by

regulatory authorities in

all the

markets in which we operate.

Annual Report 2025 |

Sustainability Statement | Strategy

Strategy

Our sustainability and impact strategy

We are guided by our ambition to

be a leader in sustainability. This is

reflected in our vision to be

the bank for the next

generation. To help

us realize that

vision, our sustainability

and impact strategy

is based on

three overarching strategic

pillars: Protect, Grow and Attract.

Sustainability and impact vision: be the bank for the next generation

Protect

Manage our business in alignment with our

sustainable, long-term Group strategy and

evolving standards.

Grow

Embed an innovative sustainability and impact

offering across all our business divisions.

Attract

Be the bank of choice for clients and employees.

Protect

As part of our continued commitment to protect our clients’ assets and those of our firm, we are focused

on managing

our business

by aligning

with the

sustainable long-term

Group strategy

and evolving

standards. We

maintain a

strong

control and risk framework to

support our risk management processes

and product offering, as well

as complying with

regulatory requirements. In addition, we have a climate transition plan in place to support our clients in the transition to

a low-carbon world and to reduce their exposure to transition risks while also mitigating related risks to UBS.

›

Refer to the “Environmental information”

section of this Sustainability statement for more information about our

decarbonization approach and efforts

›

Refer to the “Managing sustainability and climate risks” section of this Sustainability statement for more information

about our

sustainability and climate risk management approach

Grow

are continuing

to expand

our

sustainability and

impact product

offering across

all

business divisions

to meet

our

clients’

evolving

needs

and

support

them

through

the

world’s

transition

low-carbon

economy.

Innovation

product

development, client

reporting and

engagement, as

well as

exploring artificial-intelligence-driven

use cases

streamline

processes

are

key

delivering

competitive

solutions.

facilitate

this,

have

dedicated

Group

Sustainability and

Impact Business

Development &

Client Forum,

which focuses

on client,

product and

impact approaches.

›

Refer to the “Governance” section of this Sustainability statement for more information about the Group

Sustainability and

Impact Business Development & Client Forum and our sustainability governance

Attract

We aspire

to be

the bank

of choice

for clients

and employees

alike, maintaining

top-quartile sustainability

ratings and

positioning the firm

as a go-to

employer through our

engagement and education

programs. In 2025,

our MSCI AA

rating

was reaffirmed

and our S&P Global Corporate Sustainability Assessment (CSA) score remained at a high level.

›

Refer to the “Social information”

section of this Sustainability statement for more information about UBS’s

employees and its

philanthropic activities

Source: MSCI ESG Ratings & Climate Search Tool, UBS Group AG ESG Rating 2025

Source: S&P Global, UBS Group AG CSA Score 2024 and 2025.

Annual Report 2025 |

Sustainability Statement | Strategy

Our key aspirations and progress

We work with a long-term focus on providing appropriate returns to our stakeholders in a responsible manner.

We are committed

to providing transparent

aspirations, goals and

targets and reporting

on the progress

made against

them. This table provides an

overview, with more detailed information

provided throughout this report. All

information

and data provided in this section relates to the UBS Group, unless explicitly stated.

Ambitions

Topics

Our aspirations, goals or targets

Progress

1. Protect

Climate

Lending sector decarbonization targets have been established to

address our financed emissions by aligning specified sectors to

decarbonization pathways.

Reduce emissions intensity associated with UBS in-scope lending by

2030 from 2021 levels for:

–

Swiss residential real estate by 45%;

–

Swiss commercial real estate by 48%;

–

power generation by 60%;

–

iron and steel by 27%; and

–

cement by 24%.

Reduce absolute financed emissions associated with UBS in-scope

lending by 2030 from 2021 levels for:

–

fossil fuels by 70%.

Calculated progress against pathways for lending sector

decarbonization targets

(current period: end of 2024 vs 2021

baseline, prior period: end of 2023 vs 2021 baseline).

Changes in emissions intensity associated with UBS in-scope lending:

–

Swiss residential real estate reduced 15% (Prior period: 11%);

–

Swiss commercial real estate reduced 10% (Prior period: 9%);

–

power generation reduced 55% (Prior period: 33%);

–

iron and steel reduced 14% (Prior period: 20%); and

–

cement reduced 4% (Prior period: 3%).

Changes in absolute financed emissions associated with UBS in-

scope lending:

–

fossil fuels reduced 83% (Prior period: 80%).

Asset Management provides choice to enable clients to pursue their

climate goals. We commit that all clients’ net-zero-ambition

portfolios align with the Paris Agreement with interim targets by

latest 2035.

Asset Management had a combined invested assets value of

USD 111.5bn in net-zero-ambition portfolios (2024: USD 64.4bn).

Reduce our scope 1 and 2 emissions to net zero by 2035 (90%

reduction of scope 1 and market-based scope 2 emissions by 2035

vs 2023 baseline, neutralizing the remaining 10% with high-quality

carbon removals).

Scope 1 and market-based scope 2 emissions reduced

by 48% vs 2023 baseline (2024: reduced by 35% vs 2023 baseline).

Reduce our absolute energy consumption by 35% by 2030 vs 2023

baseline.

Absolute energy consumption reduced by 18.8% vs 2023 baseline

(2024: reduced by 9% vs 2023 baseline).

Achieve 100% renewable electricity aligned to RE100 in markets

where feasible by 2026.

Achieved 99.7% renewable electricity aligned with RE100

(2024: 99.8%).

Environment

Paper:

–

Reduce office printing per FTE by 25% by

2030 vs 2023 baseline.

–

Achieve 90% of recycled paper used for office printing by 2030.

–

Office printing per FTE increased by 2% vs 2023 baseline

(2024: increased by 15% vs 2023 baseline).

–

Achieved 18.1% of recycled paper used for office printing

(2024: 15.5%).

Waste: Achieve a 60% recycling rate for our office waste by 2030.

Achieved 54.0% waste recycling rate (2024: 52.9%).

Water: Reduce water consumption by 7% by 2030 vs 2023

baseline.

Water consumption reduced by 12% vs 2023 baseline

(2024: increased by 2% vs 2023 baseline).

Annual Report 2025 |

Sustainability Statement | Strategy

Ambitions

Topics

Our aspirations, goals or targets

Progress

2. Grow

Social impact

and

philanthropy

Raise USD 1bn in donations to our client philanthropy foundations

and funds (cumulative for 2021

2025).

Achieved a UBS Optimus network of foundations donation volume of

USD 472m in 2025 (2024: USD 366m), totaling USD 1.6bn since

2021, thus surpassing our goal (all figures include UBS matching

contributions).

Reach 26.5 million beneficiaries by 2025 (cumulative for

2021– 2025).

Reached 9.3 million beneficiaries in 2025 (2024: 7.1 million) and

33.5 million beneficiaries through UBS Optimus network of

foundations activities since 2021.

7,8

3. Attract

Bank of choice

Maintain top quartile position in key environment, social and

governance (ESG) ratings by the end of 2026.

Achieved top quartile position vs direct peers as defined in UBS

compensation report in ESG ratings including but not limited to:

–

MSCI: AA rating, “Leader” in industry group;

–

S&P Global Corporate Sustainability Assessment: score of 71.

Constituent of the Dow Jones Best-in-Class indices.

Cautionary note:

We have developed methodologies that we use to set our climate-related targets and identify climate-related risks and that underly the metrics that are disclosed in

this report. Standard-setting organizations and regulators continue to provide new or revised guidance and standards, as well as new or enhanced regulatory requirements for climate

disclosures. Our disclosed metrics are based upon data available to us, including estimates and approximations where actual or specific data is not available.

We intend to update our

disclosures to comply with new guidance and regulatory requirements as they become applicable to UBS. Such updates may result in revisions to our disclosed metrics, our

methodologies and related disclosures, which may be substantial, as well as changes to the metrics we disclose.

Our climate transition plan does not cover all our business activities. We may add ambitions for additional scope 3 activities over time and

on a best-efforts basis based on the availability of appropriate measurement

frameworks and data,

and the materiality

of the relevant

activity to UBS.

We will continue

to publicly disclose

our progress on

an annual basis

and, while we

continue to take

steps to align

our in-scope business

activities with the ambitions set out above, it is important

to note that progress toward our targets may not be

linear. We regularly review our targets and update our disclosures in line with new

or enhanced regulatory

developments, evolving

best practices for

the financial sector

and climate science.

Such reviews may

lead us to

revise previously agreed

voluntary commitments,

metrics and methodologies.

Refer to the

“Basis of

preparation 2025” document, available at ubs.com/sustainability

-reporting for more information about progress calculations, exclusions and

parts of the value chain within sectors covered by metrics and targets.

Refer to the “Environmental information” section of this Sustainability statement

for further information. Our corporate emissions reporting process involves two distinct one-year time

lags. Firstly, emissions for a given

year are published the following year

(e.g. 2024 emissions are reported

in 2025), reflecting the time required

to collect, validate and assure

the completeness and accuracy of

the underlying data prior to disclosure.

Secondly, due to the timing of corporate emissions disclosures and third-party data processing, our year-end 2024 lending exposures are mapped to 2023 emissions data – the most recent available – since companies

typically release emissions figures several months

after year-end and data providers

require additional time to aggregate and verify

this information. As a result, reported 2024

financed emissions are based on 2024

exposures and

2023 emissions

data. For

Swiss residential

and commercial

real estate,

this lag

does not

apply, as

exposure and

emissions data

align to

the same

reporting year

(2024).

The stated

net-zero

commitment is portfolio-based in line

with client agreements and not

linked to invested-assets-based targets.

The scope of assets with

net-zero ambition for 2025 is

Asset Management. For 2024,

Credit Suisse

portfolios were in the process of

being assessed in the context of

Asset Management’s net-zero

alignment framework and were therefore

excluded from this metrics reporting.

Activity data for 2024 was revised

due to improved data availability. As a result of this revision, our previously reported 2024

progress against target decreased from 10% to 9%.

In 2025, this excludes the Bahamas and Qatar, where such

systems

are not yet available.

The cumulative reported figure does not represent unique beneficiaries.

Where the same individual was enrolled in a program in

the previous year, they are still

counted in the following year

as they are considered to have received different levels of support over the period.

Figures previously published from 2021 to 2024 additionally included beneficiaries reached through

UBS Social Impact activities.

Comparative figures have been revised to reflect beneficiaries reached solely through UBS Optimus network of foundations activities.

Annual Report 2025 |

Sustainability Statement | Environmental information

Environmental information

Our climate transition plan

2025,

further

developed

our

UBS

Group

climate

transition

plan

and

advanced

its

implementation.

This

plan

underpins our

ambition

to support

our clients

in the

transition to

a low-carbon

world

and embeds

considerations of

climate-related

risks

and

opportunities

across

our

governance,

strategy

and

operations

ensure

their

integration

throughout the firm.

Our transition plan

relates to the

UBS Group and

is structured around

the key pillars

outlined below.

Targets and actions

By 2050, the global economy aims to transition

to net zero. As part of that, across

our own operations (scopes 1 and 2),

UBS plans to achieve net zero by 2035, well ahead of 2050.

We have defined the following targets:

Scopes 1 and 2:

Reducing our scope 1 and 2 emissions to net zero by 2035.

Scope 3:

Addressing our

financed emissions

by aligning

specified sectors

to decarbonization

pathways (lending

sector

decarbonization targets).

›

Refer to “Reducing our own climate impact” in this section of this Sustainability Statement for details about our

scope 1 and 2

net-zero target

›

Refer to “Supporting our clients’ low-carbon transition” in this section of this Sustainability Statement for more

details about our

lending sector decarbonization targets

These targets

are based

on the

methodologies, data

and assumptions

described in

this report

and are

aligned with

1.5°C scenario,

except for

our lending

sector decarbonization

targets for

Swiss residential

and commercial

real estate,

which follow a below 2°C

pathway.

We will continue to disclose

our progress on an annual

basis and we will

regularly

review and

update our

targets to

reflect evolving

regulations, best

practices and

climate science.

Adjustments may

made to voluntary commitments and underlying metrics and methodologies.

Underpinning our targets, we pursue specific objectives and implement actions across our business:

Supporting our clients’ low-carbon transition

In 2025,

we continued

to work

toward our

objectives of

supporting the

transition of

our financing

and investing

clients to

low-

carbon and climate-resilient business models

and mobilizing private and institutional

capital to facilitate an orderly

transition.

Financing:

We remain committed to

aligning in-scope activities

to the objectives

of the Paris

Agreement and achieved

measurable

reductions

financed

absolute

emissions

and

emission

intensity

across

key

sectors

through

client

engagement, sustainable and transition finance solutions, and portfolio management.

Investing:

We continued to expand climate-related

offerings, engage with investee

companies and fund managers,

and

support clients with

education and portfolio transparency,

reflecting the responsibilities

associated with our

investment

mandates agreed with clients and evolving climate ambitions.

›

Refer to “Supporting our clients’ low-carbon transition” in this section of this Sustainability Statement for more

details

Reducing our own climate impact

We continued to

work toward our

objectives of

minimizing our

operational footprint

and promoting

efficient, sustainable

resource use.

We made significant

progress toward our

scope 1 and 2 net-zero target,

which is supported by our energy

reduction and

renewable electricity targets.

We reduced our scope 1 and market-based scope 2 emissions from 30,287

metric tons of

e reported in 2024 to

24,151 metric tons of CO

e reported in 2025, resulting in a

48% reduction against our 2023

baseline.

Our energy consumption

fell by 18.8%

against the 2023

baseline, totaling

613 GWh, compared

with 684 GWh

in 2024.

In addition,

we sourced

99.7%

of our electricity

from renewable

sources,

compared with

99.8%

in 2024.

›

Refer to “Reducing our own climate impact” in this section of this Sustainability Statement for more

details

For Swiss mortgage lending (commercial and residential real estate), our targets are using the percentage decarbonization

rate implied by the Energy Perspectives 2050+ ZERO Basis scenario (below 2°C scenario) as

a minimum rate to be followed. This

scenario is a representative, country-specific

pathway, reflective of the government’s

climate strategy. It also informs

Switzerland’s decarbonization ambitions for

real estate as set

out in the Swiss Climate and Innovation Act.

GHG emissions and certain activity data for 2024 were revised, mainly due to improved data availability. As a result of this revision our previously reported 2024 direct greenhouse gas emissions (scope 1) and indirect

market-based greenhouse gas emissions scope 2) increased from 30,274 t CO

e to 30,287 t CO

e and energy consumption in GWh increased from 679 GWh to 684 GWh.

Annual Report 2025 |

Sustainability Statement | Environmental information

Managing the climate impact of our supply chain

2025, we

continued to

manage the

climate impact

our

supply chain

and

work toward

responsible supply

chain

practices.

Our activities

included

tracking

supply chain

vendor-related

scope 3

emissions

and monitoring

the scope

1 and

emissions

reporting

our

vendors.

2025,

vendor-related

emissions

increased

3%,

reaching

0.84 million

metric

tons

e, compared

with 0.81

million

metric

tons of

e in

2024. In

addition,

88% of

our GHG

key

vendors

disclosed

emissions

and declared

a stated net-zero

target, up

from 78% in

2024.

›

Refer to “Managing the climate impact of our supply chain” in this section of this Sustainability Statement

for more details

Managing the risks of climate change to our business

In 2025, we continued

to manage climate-related risks

by identifying, measuring, monitoring, managing

and reporting

these

risks,

while

further

integrating

regulatory

requirements

into

our

financial

risk

management

and

stress-testing

frameworks. Our firm-wide

sustainability and climate

risk policy framework

is underpinned by

proprietary methodologies

for transition

and physical

risk assessment,

scenario analysis

and stress

testing. In

2025, we

enhanced these

tools and

embedded sustainability

and climate

risk considerations

into our

various financial

and non-financial

risk management

frameworks.

›

Refer to the “Managing sustainability and climate risks” section of this Sustainability Statement for more

details

Integration into strategy and financial planning

Our climate

transition

plan is

aligned

with our

Group sustainability

and impact

strategy,

which is

based on

three overarching

pillars: protect,

grow and attract. In

relation to our climate

transition plan,

our strategic ambition

manifests as follows.

–

Protect

our

business

managing

climate

risks

and

supporting

our

clients’

low-carbon

transition

protect

their

assets.

–

Grow

our business by embedding an innovative UBS climate transition offering across all business divisions.

–

Attract

and be the bank

of choice for clients

and employees by being

recognized as a leader

in climate and leading

by example in our own operations.

UBS runs an annual strategy review and

objective-setting process related to sustainability and impact matters,

including

climate-related

topics,

identify

priorities

and

strategic

focus

areas

across

the

Group.

The

agreed

objectives

are

subsequently integrated into our standard multi-year financial planning process.

By embedding climate-related insights into our business strategy and financial

planning process, and regularly assessing

climate-related risks and opportunities, we also aim to continuously enhance our resilience to climate change.

Environmental and sustainability objectives continue

to be an integral part

of our compensation determination process.

We have

explicit sustainability-related

objectives in

the non-financial

goal category

of the

Group CEO

and Group

Executive

Board (the GEB) scorecards. This structure, with two out of five non-financial

categories covering ESG-related objectives,

underscores the importance and impact of sustainability on GEB compensation.

›

Refer to the “Strategy” section of this Sustainability Statement for more information about our Group

sustainability and impact

strategy

›

Refer to the “Governance” section of this Sustainability Statement for more information about our strategy review

and objective-

setting process

›

Refer to the “Managing sustainability and climate risks” section of this Sustainability Statement for more

information about our

analysis of the resilience of our strategy and business model to climate change and how we integrate

climate-related impacts in

our financial planning

›

Refer to the UBS Compensation Report 2025, available at

ubs.com/annualreporting

, for more information about our

compensation process

Governance and oversight

Our

climate

transition

plan

has

been

approved

and

supervised

the

BoD’s

Corporate

Culture

and

Responsibility

Committee

(the

CCRC).

The

CCRC

oversees

our

Group

sustainability

and

impact

strategy

and

annually

approves

the

firm’s sustainability and impact objectives.

Group

Sustainability

and

Impact

developed

and

continues

enhance

UBS’s

climate

transition

plan,

overseeing

its

implementation by the business divisions

and Group functions through the

underlying objectives of the plan.

Group Real

Estate and Supply Chain is responsible for

steering our in-house environmental management program,

covering climate-

related activities within our own operations and supply chain.

›

Refer to the “Governance” section of this Sustainability Statement for more information about our sustainability

and climate

governance

›

Refer to “Reducing our own climate impact” in this section of this Sustainability Statement for more

information about our in-

house environmental management program and associated governance

Supply chain vendor-related scope 3 emissions refer to scope 3, categories 1, 2, 4 and 9, excluding water

-consumption-related emissions.

Vendors with the largest emissions that collectively account for more than 50% of our calculated supply chain-related scope

3 emissions are classified as “GHG key vendors”.

Annual Report 2025 |

Sustainability Statement | Environmental information

Dependencies and external enablers

Currently, our climate transition plan does not cover all our business activities. Over time, we may expand our ambitions

to include additional scope 3 activities, subject to the availability

of appropriate measurement frameworks, reliable data

and materiality to UBS. It is important to note that progress toward our climate ambitions and targets may not be linear

and depends not

only on our

internal actions but

also on broader

systemic developments across

sectors and geographies.

Key external

enablers include

cross-sector collaboration

between private

and public

stakeholders, clear

guidance from

governments

through

thoughtful

regulations,

policies

and

incentives,

the

development

and

scaling

low-carbon

technologies, and shifts in consumer behavior and market dynamics.

Supporting

our

clients

their

low-carbon

transition

across

our

financing

and

investing

activities

remains

strategic

priority for us. In

the area of client

investments, our ability

to meet climate-related ambitions

is shaped by various

factors,

including,

where

applicable,

our

fiduciary

responsibilities

and

the

terms

client

mandates.

continue

embed

sustainability and climate considerations into our operating model,

which involves ongoing refinement of our evaluation

and decision-making frameworks, governance structures, control processes and underlying systems.

Supporting our clients’ low-carbon transition

Supporting our

clients

in their

low-carbon transition

remains

strategic priority

for

us.

this end,

have defined

climate-related targets and actions across our financing and investing activities, which are outlined below.

In 2025, we enhanced our approach to transition

finance. Beyond increasing investment in activities with sustainability-

objectives, we

recognize that

the transition

also requires

increased support

for

companies in

carbon-intensive

sectors in executing their transition.

ensure

consistency

and

integrity

our

approach,

reviewed

the

latest

international

standards,

regulations

and

guidance

on financing and investing in the transition, and took the following actions:

–

defined transition finance

–

we established a

Group definition,

based on our

review, which includes

“financing the

transition”,

“investing in the transition”

and labeled transition products (e.g. corporate loans and bonds);

–

developed criteria for assessing the credibility

of transition plans –

we created a set of criteria

aligned with our

transition finance definition to

support, where relevant, the

assessment of transactions in

scope of our

sustainability

and climate risk policy framework;

and

–

enhanced transparency

–

we developed

an approach to

enhance internal

transparency on

transition finance,

aligned

with our

definition and supported

by international

standards, internal sustainability

scoring, fund

due diligence

and

others.

Supporting our financing clients’ low-carbon transition

Our lending sector decarbonization targets

remain

committed

our

2030

lending

sector

decarbonization

targets.

This

section

outlines

the

methodological

choices underlying our target-setting process and the calculation of our climate-related lending metrics.

Our

approach

target-setting

aligned

with

industry

guidance

and

best

practices,

and

our

financed

emissions

calculations follow globally recognized standards,

including the Greenhouse Gas

(GHG) Protocol Corporate Accounting

and Reporting Standard

and the Partnership for Carbon Accounting Financials (the PCAF) methodology.

As part of our assurance

activities in 2024, we engaged

Ernst & Young Ltd, Basel

to perform agreed-upon procedures

our lending sector decarbonization targets

to assist us in determining whether

these have been set in line with

reference

scenarios mentioned and informed by certain

requirements taken from pertinent global standards

and initiatives. These

agreed-upon procedures remain relevant for 2025.

›

Refer to the Lending sector decarbonization targets agreed-upon procedures,

available at

ubs.com/sustainability-reporting

, for

more information

Our transition finance definition

was guided by a range

of international standards and

guidelines, including GFANZ’s Financial Institution Net-zero Transition Plans, Regulation (EU) 2020/852 of

the European Parliament

and of the Council, the IIGCC’s Net Zero Investment Framework 2.0, the UK government’s

Transition Finance Market Review

(independent review commissioned by HMT and DESNZ) and the ICMA’s

Climate Transition

Finance Handbook. These sources were used as reference points and not applied prescriptively.

The use of the term “transition”, particularly when used in product naming, marketing

or promotion, may be subject to additional regulatory requirements depending on the relevant jurisdiction.

Covers financing to companies.

Covers investing strategies, portfolios and assets.

GHG Protocol Corporate Standard (version 2004).

PCAF (2022). The

Global GHG Accounting and

Reporting Standard Part

A: Financed Emissions.

Second Edition and PCAF

(2023). The Global

GHG Accounting and Reporting

Standard Part B:

Facilitated Emissions.

First Edition.

Annual Report 2025 |

Sustainability Statement | Environmental information

Financed emissions calculations (1)

Lending

activities

fall

under

scope

UBS AG 6-K