11th March, 2008

Trucost’s world-leading data and analysis of business’ carbon emissions underpins the first carbon tracker index, launched by UBS today. The UBS Europe Carbon Optimized Index will provide investors with returns matching the underlying DJ STOXX 600 index on a lower portfolio carbon footprint.

Existing “green” investments either exclude high carbon sectors such as oil & gas, or focus on solution providers, e.g. renewable energy. Instead, the UBS Europe Carbon Optimized Index maintains neutral sector weightings to preserve financial efficiency relative to the benchmark but over-weights the carbon-efficient companies and under-weights the carbon-inefficient companies in each sector, using data from Trucost. Back testing has shown the UBS index would have produced positive relative returns since December 2006 versus the DJ STOXX 600, with approximately 37% lower carbon emissions.

Trucost’s patented models and tools allow measurement of greenhouse gas emissions and other environmental impacts of companies from the world’s major investible indices (including MSCI World Developed, MSCI Europe, FTSE All Share, Russell 1000 and S&P 500).

UBS developed the product using analysis from Trucost tools which can ‘carbon optimise’ investment portfolios to replicate the returns of the originals but with carbon footprints which are typically lower by 25%.

Simon Thomas, Chief Executive of Trucost, said, “As the cost to business of carbon emissions and other environmental factors increases, mainstream investment decisions will increasingly have to factor in companies' carbon exposure. Trucost’s work with UBS on the carbon optimized index shows that by favouring carbon-efficient companies investors can have market returns with a much lower exposure to carbon risk.”

Julie Hudson, Head of Socially Responsible Investment (SRI) research at UBS said, “In an environment where governments are increasingly taxing and regulating GHG emissions, which has a real financial impact on businesses, there is a growing investor appetite for products that can capitalise on carbon-efficiency. In general, firms having a low carbon footprint compared with that of their peers are expected to have a financial advantage, all being equal.”

About Trucost

Trucost is an environmental research company, which enables clients to understand the environmental impacts of business activities in financial terms.

Trucost provides data, analysis and advice for companies, institutional investors and governments, helping:

• companies measure, report and manage their direct environmental impacts and also the indirect impacts from their supply chain;
• investors reduce their portfolios’ carbon footprint without reducing returns;
• governments and regulators develop environmental impact metrics and reporting systems relevant to business.

About UBS

UBS is one of the world’s leading financial firms, serving a discerning international client base. Its business, global in scale, is focused on growth. As an integrated firm, UBS creates added value for clients by drawing on the combined resources and expertise of all its businesses.

UBS is the leading global wealth manager, a top tier investment banking and securities firm, and one of the largest global asset managers. In Switzerland, UBS is the market leader in retail and commercial banking.

UBS is present in all major financial centers worldwide. It has offices in 50 countries, with about 39% of its employees working in the Americas, 33% in Switzerland, 16% in the rest of Europe and 12% in Asia pacific. UBS's financial businesses employ more than 80,000 people around the world. Its shares are listed on the SWX Swiss Stock Exchange, the New York Stock Exchange (NYSE) and the Tokyo Stock Exchange (TSE).

For more information on Trucost please contact:

Theo Moore, Brunswick Group
Matt O’Leary, Brunswick Group
Tel: 0207 404 5959
Email: Theo Moore

For more information on UBS please contact:

Richard Morton, UBS EMEA
Tel: 020 7568 0175
Email: Richard Morton