Second-Party Opinion Download

USE OF PROCEEDS

The eligible category for the use of proceeds, Green Buildings, is aligned with those recognized by the Green Bond Principles 2021. Sustainalytics considers that the investments in the eligible category are expected to reduce the carbon footprint of the commercial and residential building stock in Switzerland and advance the UN Sustainable Development Goals, specifically SDG 11.

PROJECT EVALUATION / SELECTION

UBS’s internal Group Risk Control department will assess and approve the asset selection in line with the eligibility criteria in consultation with relevant environmental experts. UBS’s environmental and social risk management processes and standards are applicable to all allocation decisions made under the UBS Green Funding Framework. Sustainalytics considers these risk management systems to be adequate and the project selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

UBS’s Group Treasury will be responsible for managing and tracking the proceeds, with the executing unit using a portfolio approach through a dedicated booking structure. UBS intends to allocate an amount equivalent to the net proceeds to eligible assets at issuance. UBS’s Group Treasury will temporarily hold proceeds that are not allocated to eligible assets in cash, cash equivalents, high-quality liquid assets and other money market instruments. UBS intends to track and review the eligible assets included in the portfolio for ongoing eligibility and availability on a quarterly basis. This process is in line with market practice.

REPORTING

UBS intends to publish on its website a Green Funding Investor Report on an annual basis. Allocation reporting will include information on the amount of proceeds allocated, the share of new financing and refinancing, and the balance of unallocated proceeds. In addition, UBS is committed to reporting on relevant impact metrics. Sustainalytics views UBS’s allocation and impact reporting as aligned with market practice.

Alignment of Deposits with Market Expectations 

The UBS Green Funding Framework also includes deposits as eligible financial products. Sustainalytics is of the opinion that the principles of impact and transparency that underlie the sustainable investment industry, are applicable to deposits, and that UBS’s internal processes for deposits and the use of funds align with those principles.