Diversity, equity and inclusion

More than just words and statistics.

Our aspirations
Diversity in your business
Solving the gap

Jump to Our Diversity, Equity & Inclusion strategy section
Our aspirations
We are committed to achieving our aspirational goals, along with empowering leaders to drive our DE&I strategy forward. We believe that transparency is key to achieving our aspirations and in 2020, outlined specific intentions to enhance our female and ethnic minority representation, especially among management. Specifically, by 2025, we aspire to have 30% of director-level and above roles globally held by women and 26% of director-level and above roles in the US and 26% in the UK held by ethnic-minority talent, as well as 4% Black in the UK, along with additional regional aspirations. Our DE&I aspirations remain unchanged for the combined organization and the Credit Suisse DE&I aspirations have been retired.
Jump to Our Diversity, Equity & Inclusion strategy section
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Jump to Our Diversity, Equity & Inclusion strategy section
How we execute our strategy
At UBS, we’re building a culture of belonging, where employees from all backgrounds and identities can feel recognized and valued, and where everyone can unlock their full potential. To succeed, we need to enable UBS to deliver the greatest possible impact for our stakeholders – both external (our clients, our communities and society, and our suppliers) and internal (our employees).
Our employee diversity, equity and inclusion (DE&I) strategy is built on four pillars: 1. How we hold ourselves accountable, 2. How we hire, 3. How we develop talent, and 4. How we build a culture of belonging.
We leverage all four pillars as we move toward achieving our gender and ethnic diversity aspirations, disability integration and in creating an inclusive culture for all.
Jump to Our Diversity, Equity & Inclusion strategy section
Learn more about our DE&I strategy

The commercial imperative of DE&I

Diversity in your business means more representation and more growth. We consider why diverse workforces and inclusive corporations matter for entrepreneurs and executives.

Group of people having meeting in office space

The world is experiencing a period of profound economic and social change. The so-called ‘Fourth Industrial Revolution’ represents a period of structural change driven by technologies such as automation and robotics, artificial intelligence, and a proliferation of big data. The outcomes of this revolution-commercial, economic, environmental, and social-hinge on how people use these technologies.

As the world becomes more complex, the value of problem-solving skills and creativity will rise. More diverse workforces correlate with higher levels of innovation in knowledge-based industries. And how companies deploy people will drive success. Inclusivity will matter more for countries and companies seeking to maximize productivity.

Making the commercial case, in terms of financial benefits and costs, can complement the moral, political, and philosophical cases for diversity and inclusion.

The effects of diversity, or a lack thereof, can be measured and debated using data and personal stories. The economic and quantitative evidence may, however, help to accelerate positive economic and social change.

Evidence is particularly important in those countries and companies that are least prepared for the Fourth Industrial Revolution. Data can help drive diversity and inclusion in countries whose cultural customs have slowed or hampered greater equality of opportunity to date.

We look at three channels for diversity and inclusion to impact financial outcomes:

Labor markets
Innovation
Market access

As in all prior industrial revolutions, new technologies have the potential to replace jobs. Economists estimate that between 10% and 15% of jobs may be lost to automation over the next 20 years.

However, net jobs figures will likely show that the Fourth Industrial Revolution is positive for employment. Historically, industrial revolutions have created new industries and previously unimagined roles.

In a world where machines and humans increasingly work together, the benefit of having the right workers in the right places at the right time will likely increase.

Having strategies to attract diverse workers to fill talent gaps-regardless of background-will become more important. The costs of prejudice in the labor market may rise. While the costs will likely differ for each firm, it is possible to provide some quantitative examples. Between 1994 and 2010, the US military fired 14,000 LGBTQ+ staff if they revealed their gender or sexual orientation. Companies that encourage gender diversity and inclusion have been shown to benefit commercially compared to peers.

In a world of rapid change, the benefit of having the right ideas for the right markets at the right time will likely increase. Crucially for business owners, entrepreneurs, and executives, the costs of not being innovative in a period of profound societal change will also likely rise.

New technologies can generate commercial benefits. But it is the applications and use of those technologies that historically have generated the biggest gains to people, planet, and profits.

Research concludes that diversity-whether of thinking, gender, demography, or other attributes-can enhance innovation. One study from Deloitte Insights found diversity can boost innovation by 20% and reduce risks (which may be overlooked in “groupthink” or monocultures) by 30%.

In periods of structural change, new applications of technology can create previously unimagined risks. Diverse teams may bring a richer perspective that can identify such risks and manage them effectively. Less diverse teams may rely on their status quo thinking or be slower to change.

Diversity benefits businesses because it can bring together people to solve complex problems. These problems require different skills or approaches: analyzing evidence, weighing options, predicting and planning for outcomes, accounting for the impact on people; building of processes; and risk management. It is unlikely any person excels in each of these six fields. Collective intelligence of different abilities and a variety of social connections is therefore important.

New communication technologies have increased the benefits of diversity and inclusion as a tool to access new markets.

It is becoming more important to have the right people to appeal to diverse, values-driven customers looking for personalized goods and services.

In a world where technology allows for greater personalization of goods and services, a diverse and inclusive workforce is more likely to understand consumer problems and design personalized solutions that match the customer’s particular needs.

This is not to say, for example, that a skin care company can only design personalized skin care products if it has at least one employee in the gender, ethnicity, or race for which it wants to cater. This does not mean that designers of later-living retirement homes or lifelong learning apps need to be older people to understand particular needs.

But it does mean that companies may find it more efficient to employ a diverse workforce and build an inclusive environment to counteract the effects of standardization that seeks to satisfy the non-existent "average" consumer.

The commercial benefits of being a diverse and inclusive business are not just theoretical. A large and growing body of literature presents the evidence for more diverse businesses being more profitable.

This does not mean small and mid-sized private enterprises find building a diverse and inclusive business easy.

Becoming more diverse and inclusive can, in practice, lead business owners and entrepreneurs to make well-intentioned mistakes.

Every business is different. Each will have its own successes and points for improvement when fostering a more diverse and inclusive workplace.

What are the challenges and misconceptions around DE&I?

We discuss three types of diversity and inclusion challenges or misconceptions-and suggest some alternative perspectives and potential solutions.

Misconception 1

Diversity and inclusion strategies should look the same for every company

Companies that want to build a more diverse and inclusive workforce cannot start without considering the legal, political, and social conditions of where they operate. These conditions vary considerably across countries. Every business will therefore have a different strategy for diversity and inclusion.

Diversity and inclusion do not have equal commercial and societal impact across industries or sectors either.

The gains from diversity and inclusion from risk management, complex problem solving, or innovation may be greater for certain types of companies.

In other words, diversity and inclusion yield greater benefits in the knowledge economy-in sectors such as the legal, financial, creative, or technology industries-and in high-value-added service sectors.

Diversity and inclusion may yield fewer (commercial) benefits for businesses with homogeneous products or services or where a firm follows a consistent, repetitive process. Indeed, repetitive tasks with replicable processes-clerical roles or truck driving for example-and lower added economic value may be most ripe for automation in the Fourth Industrial Revolution.

Misconception 2

Top management is exclusively responsible for diversity and inclusion strategies’ success

Leaders will need to support efforts if a business is to become more diverse and inclusive. Corporate culture changes are likely only to endure if top managers are committed to a diversity and inclusion strategy in both word and deed.

The strategy also must be credible to stakeholders and consistent with the overall business objectives-the latter being set by top management.

A diversity and inclusion strategy should be seen and be evident-as opposed to senior managers talking about it but failing to evidence it through attending diversity events or building a diverse and inclusive management team around them.

However, business owners and entrepreneurs should not underestimate the roles of middle managers, teams, and employees in driving diversity and inclusion.

Diversity and inclusion models must listen to the needs, concerns, and aspirations of underrepresented groups
Second, overreliance on top managers and dedicated diversity and inclusion departments to drive change can be counter-productive
Third, diversity and inclusion strategies are only effective if top managers’ messages match with aligned policies for underrepresented groups that middle managers and the whole firm put into practice

Ultimately, middle managers and employees will make most business decisions where diversity and inclusion factors matter, such as hiring and managing employees.

Misconception 3

The objective of diversity and inclusion strategies is to drive equal outcomes

Diversity and inclusion strategies can support this need if they help companies to hire, promote and retain the best qualified workers, regardless of differences in personal characteristics.

However, business owners and entrepreneurs might consider the difference between equality of opportunity and equality of outcome when implementing diversity and inclusion strategies.

Unconscious biases and prejudices can mean that certain groups of people are underrepresented, overlooked, or discriminated against in hiring and promotion decisions.

These biases can be reinforcing such that it requires cultural change to break the mold of a monoculture. Diverse and inclusive companies work to reduce these biases and prejudices by designing policies that promote equality of opportunity.

There is no one-size-fits-all strategy for any business to become more commercially successful through diversity and inclusion.

Three practical tips when designing a DE&I process

Focus on diversity and inclusion awareness and education

Successful companies consist of people that understand the opportunities a diverse and inclusive workforce can bring-and the barriers or prejudices certain groups might face based on their personal characteristics.

Conversations about prejudice or exclusive environments can be difficult for underrepresented groups and privileged groups. It would be important to create the right environment for affinity groups to gather and share their experiences across the firm. But it is also important to encourage privileged groups to be their own tutors.

Rethink your organizational management structure

Diversity and inclusion depend on people, by building varied teams of employees, being open to varied ideas, having a mindset to drive innovation, and responding to the various needs of different stakeholders. But successful diversity and inclusion strategies also depend on processes. Evaluating and amending organizational management could therefore be critical to reaping the commercial benefits of diversity and inclusion.

Unconscious bias is part of the fabric of society and, indeed, of many companies. Business owners, executives, and entrepreneurs may begin by considering their hiring processes. Can more be done to find talented, diverse people for a flexible role, rather than following a traditional, restrictive approach of having a set role?

Create a healthy culture of challenge

Successfully becoming a more diverse and inclusive company that delivers better commercial results and a greater societal impact is not a one-time effort. Doing so will likely require a culture of continuous challenge.

This challenge can take several forms. It may begin by remembering that prejudice is any form of irrational discrimination.

Business owners need to distinguish between rational and irrational discrimination. It would be irrational not to hire someone with the right skills for the job simply because of their race, sexual orientation, or because they support a rival sporting team to the hiring manager. It may be rational to charge different customers different prices if, for instance, they buy different products or buy in bulk.

There is growing evidence that makes the commercial case for diversity and inclusion. But as the structural changes of the Fourth Industrial Revolution advance, it is likely that the economic and societal case for diversity and inclusion will also rise.

Diversity and equality: Our long-term view

How are diversity, equity, and inclusion connected to the actions of investors?

System-level thinking is a way to view a problem as a series of complex, dynamic, and interrelated relationships impacting one another both directly and indirectly. Inequality based on personal characteristics like gender, race, or sexual orientation is an example of a system-level challenge, one that requires examining interrelated dynamics across areas like access to education, health, housing, credit, and economic outcomes for women or minorities.

Importantly, these interrelated dynamics tied to diversity-based inequality-this system-are critical for investors to understand in order to position their portfolios for the long term.

Beyond considering impact on their investment portfolio, investors can also consider how intentionally investing to help address UN Sustainable Development Goals including:

5 (Gender Equality)
8 (Decent Work and Economic Growth)
10 (Reduced Inequalities)

In our view, there is a positive and reinforcing relationship between higher equity and inclusion, and additional opportunities for investors (all else equal).

We see three interplaying dynamics that feed into the relationship between investments and equity and inclusion:

There is a positive relationship between economic growth, equity and inclusion, and investments
There is a reinforcing relationship between increased equity and inclusion and longer-term prospects for companies, as well as investment portfolios
Investing to improve key “access” areas is critical to creating a more equitable and inclusive society, and may present comparable or improved risk-adjusted return opportunities

Our DE&I strategy

Our clients

We’re helping our clients identify and act on opportunities to create a better world by:

providing access to ideas, insights and people focused on inclusive growth;
empowering investors to support DE&I through investment choices;
offering philanthropic strategies that help clients embed DE&I in their legacy building; and
developing new business ventures and initiatives tailored for investors who typically are not well served by our industry, such as the next generation, women and ethnically diverse investors, as well as entrepreneurs, athletes and entertainers.

Our communities and society

We seek to drive inclusive growth for communities that continue to be denied equitable access to opportunity and capital, including women and ethnically diverse people, through our programs for students and entrepreneurs by:

partnering with non-profit organizations that are changing futures through education and skills-building initiatives;
engaging a multisector coalition of government, non-profit, public-sector and corporate stakeholders;
providing volunteering and mentoring programs for our employees;
sharing our expertise and insight to raise awareness; and
partnering with our clients to effect the change that they want to see.

Our suppliers and vendors

We’re committed to contributing to the economic growth of businesses that are often underrepresented as corporate suppliers by:

maintaining an internal database of diverse suppliers;
driving greater diversity and inclusion in sourcing opportunities;
partnering with diversity advocacy organizations; and
looking for additional diverse suppliers in identified areas of opportunity.

Accountable

Our accountability framework embodies the oversight of the Group Executive Board (GEB) and its commitment to achieving our aspirational goals, along with empowering leaders to drive our DE&I strategy forward. We use data monitoring, fair pay practices, management dashboards, and toolkits to support accountability.

All our GEB members and their leadership teams are evaluated on their efforts toward achieving our aspirations. Furthermore, supporting business-led DE&I councils and people forums ensures that accountability is a shared responsibility Group-wide. Externally, we engage with public and private initiatives to support the progression of women into senior roles and to publicly report on progress.

It is important to note that improving representation is rarely linear. Moreover, progress is based in part on drivers like promotion rates, as well as on various business and market conditions, employees’ willingness to self-disclose demographic information, and other factors. We therefore aim to ensure that every element of our people management process is a positive influence.

Our four pillars

Accountable

Hire

Over the past five years, we’ve put strong foundational processes in place to optimize diverse hiring even in uncertain markets and times of considerable attrition.

We continue to focus on training recruiters and hiring managers to help mitigate unconscious bias in the hiring process and hire the best-suited candidate for each role, regardless of background.

In 2023, our hiring ratios were strong for women at all levels (43.3% hired compared with 40.9% headcount representation). Our ethnicity hiring ratios improved for US talent (46.9% hired compared with 31.9% headcount representation), UK talent (40.4% hired compared with 29.2% headcount representation), and for UK Black talent (16.4% hired compared with 3.6% headcount representation).

Develop

Part of building an inclusive workplace is providing equitable access to advancement opportunities. To help ensure employees at all career stages have equitable development opportunities, we sponsor key talent and leadership development programs. As examples, in 2023, our new Growth Alignment Experience was launched for Associate Director and Director level employees of UBS Group excluding Credit Suisse in the US identified through a self-nomination process.

Over a six-month period, 50 initial participants worked with external coaching professionals to enhance their strategic planning skills, expand their networks and build connections.

The strength and potential of our development programs and talent processes were reflected in female promotion rates for 2023 at Director, Executive Director and Managing Director levels. For example, 35.6% of Director level and above promotions were female (compared with 31.5% in 2022). Similarly, the US ethnic minority rate for Director level and above promotions was 33.9% in 2023 (vs. 19.6% in 2022) and the UK ethnic minority rate for Director level and above promotions was 28.7% in 2023 (vs. 24.8% in 2022).

Belong

A sense of belonging helps drive engagement and is important for overall well-being. We strive to create an environment where every employee feels they have a place and are recognized and respected for who they are and what they add to our workplace.

Many of our policies, including fair pay and equal opportunities, along with highly valued employee options such as hybrid working arrangements, support a workplace environment that fosters belonging.

In the same way, our 64 combined employee networks are vital to building a sense of belonging and strengthening our inclusive culture. Whether the topic is gender, gender identity, sexual orientation, culture, ethnic diversity, cultural background, disability, parenting, elder care, veteran status or life stage, employee volunteers in every region host numerous events every year to promote understanding, engagement and belonging, and to support our overall DE&I strategy. All employee networks were integrated by the end of 2023 with Credit Suisse, enabling us to combine programming and resources and to extend our networks’ impact to a much larger audience.

Our aspirations

How we execute our strategy

Business case

Labor markets

Innovation

Market access