If the world is to reach the Paris Climate Agreement goals, greenhouse gas emissions need to be drastically reduced. Many countries and businesses aim to reach net-zero greenhouse gas emissions by 2050. This means that global emissions will have to be reduced by at least 90%, and any other remaining emissions should be removed from the atmosphere through nature- or tech-based solutions.
Julius Baer has also committed to help achieve this goal through concrete action. In 2022 we launched our climate strategy with clear targets: at its core, it’s a commitment to achieve net-zero greenhouse gas emissions in our own operations by 2030 and in our treasury, lending, and mortgage books by 2050.
To achieve these goals, Julius Baer has defined near-term targets to address our own emissions and part of the emissions financed by Julius Baer, both externally validated by the Science Based Targets initiative (SBTi). To achieve these targets, Julius Baer is working on tangible actions with measurable outcomes.
One example has been Julius Baer’s introduction of an internal carbon price on air travel. To help achieve reduction targets, an internal carbon price on air travel of CHF 100 per metric tonne (t) of CO2 was introduced as well as targeting to reduce business travel emissions by 30% by 2025 versus its 2019 emissions. Julius Baer was one of the first in the wealth management industry to introduce such an internal carbon price. This not only encourages more conscious travelling, but the proceeds are also being used to directly support decarbonisation projects as part of our efforts to reduce our carbon footprint. Additionally, in 2023 Julius Baer entered into a partnership with Swiss International Airlines and Lufthansa Group to purchase sustainable aviation fuel to help develop this alternative energy resource into a mainstream market.
Counting on nature
To counteract global warming, the top priority is to reduce carbon emissions. However, for the remaining emissions, nature is currently the only viable way to capture carbon at scale from the atmosphere. Julius Baer has therefore decided to help by supporting projects in Indonesia and Panama that work towards the restoration of local forests.
The Indonesian mangrove project aims to restore 500 hectares of severely degraded mangroves in North Sumatra, which were damaged by the disastrous tsunami in 2004. Mangroves, a vital part of the local ecosystem, are also highly effective in absorbing carbon. By 2037, the project is expected to capture close to 300 000t of CO2. This amounts to twice the amount of carbon emissions from Julius Baer’s global operations over the same period. Furthermore, to ensure the long-term sustainability of the project, local communities are being closely engaged in the restoration activities and will benefit from several social aspects around the project, including employment, education, and additional regular sources of income such as eco-tourism.
In Panama, Julius Baer is supporting a 40-year long project to restore tropical forests covering around 350 hectares. This project is expected to capture more than 400 000t of CO2 over its lifespan. Julius Baer’s local partner on the project has over 30 years of in-depth experience restoring and managing forests in a sustainable way that promotes biodiversity. Moreover, the project also brings benefits to the local communities, especially women, through employment opportunities and social benefits.
Further reducing Julius Baer’s own and financed emissions
One important lever to achieve our climate targets on financed emissions includes our stewardship strategy. This involves engaging with companies and exercising voting rights as shareholders to support more sustainable practices. Julius Baer also strives to empower clients to make a positive impact by providing access to transparent portfolio information and in-depth thought leadership and research.
For its own operations, Julius Baer is transitioning to renewable energy across its offices globally, and already sources 100% renewable electricity in Switzerland. When selecting locations for new premises, energy-efficiency is a key criterion. In 2023, Julius Baer moved into state-of-the-art green buildings in Hong Kong and London, resulting in significant improvements in energy efficiencies.
These measures are motivated by a deep sense of responsibility, and commitment to community and clients. It is borne from Julius Baer’s roots as a family business with a foresighted approach to its own sustainability as an organisation – an experience that forged our conviction that today’s actions determine the reality of tomorrow.