Sustainability and climate change are of global concern. They have been increasingly moving up political agendas, even if at times in opposing ways along the political spectrum. The topics have creeped further into discussions around family dinner tables. Businesses have to be aware that sustainability is not simply a label or a potentially attractive and growing opportunity, but a set of criteria that needs to be part of their strategies. This is a prerequisite to maintain their reputations and credibility with clients and stakeholders. This also applies to banks and the wider financial sector.
Julius Baer, steadfast in its commitment, has developed a dual focus on sustainability: we support clients to grow, protect, and pass on wealth to the next generation while achieving their sustainability goals, but also ensure to ‘walk the talk’ in our own activities.
To better address these two focal points, Julius Baer has structured its sustainability framework around two pillars: responsible wealth management and responsible citizenship. In the first we aim to offer clients transparency, choice, and trust, while enabling them to contribute to a more equitable future and a healthier planet. The second pillar is based on ensuring that Julius Baer leads by example and acts as a responsible citizen.
Responsible wealth management
Julius Baer’s approach to responsible wealth management encompasses responsible investing, sustainable investing, impact investing, and philanthropy services. Our goal is to provide transparent and reliable insights required to make informed investment choices. This has long been true to our purpose, but it is also increasingly a matter of regulatory significance. The popularity boom in sustainable investments following the COP26 climate conference in 2021 triggered calls for greater transparency and regulation of this sphere of investment activity.
To better accompany clients in achieving their goals, Julius Baer has developed a comprehensive ecosystem that goes beyond financial solutions. It extends to providing clients with a community to exchange experiences and expertise, and access to facts and information to help them make informed decisions.
“Every client’s needs are personal and unique, and we want to help them identify and invest in what matters most to them. That’s why we’ve developed a variety of services and solutions, to help guide them on their sustainability journeys,” said Yvonne Suter, Head of Sustainability at Julius Baer.
For instance, clients have access to in-depth research and thought leadership on pertinent sustainability topics, such as sustainable food systems, the future of urban mobility, and the decarbonisation of real estate. They can receive transparent and detailed reports on their portfolio investments, which include thematic scores and climate metrics.
“We also want to empower clients to exercise their role as shareholders in their investee companies. One way we do that is by facilitating their voting at Annual General Meetings along sustainability guidelines, with the aim to encourage active ownership and thereby support the transition to a more sustainable future,” added Suter.
Responsible citizenship
The other part of Julius Baer’s sustainability focus is its own responsible citizenship, as a way to ‘walk the talk’ and to respect the society in which we exist and work. Responsible citizenship includes our approach to conduct and risk, our role as a caring employer and as a community partner, as well as a commitment to conserving natural resources.
In 2022 Julius Baer launched its climate strategy. At its core it’s a commitment to achieving net-zero greenhouse gas emissions for its own operations by 2030 and achieving net-zero greenhouse gas emissions on treasury, lending and mortgage books by 2050. To achieve this, it is also important to define near-term targets and work on concrete actions with measurable outcomes. As proof of the soundness of these efforts, in 2023 Julius Baer became one of the first financial institutions in Switzerland to receive validation for its near-term climate targets by the Science Based Targets initiative, a globally recognised independent body that validates climate commitments and targets. Targets are considered ‘science-based’ if they are in line with what the latest climate science deems necessary to meet the goals of the Paris Agreement – limiting global warming to 1.5°C above pre-industrial levels.
Some of these actions were introduced in 2023 and included a partnership with Swiss International Airlines and Lufthansa Group to purchase sustainable aviation fuel. Other measures were to move into more energy-efficient and state-of-the-art offices in Hong Kong and London.
Shifting to renewable energy, purchasing renewable energy certificates, and switching to biogas in Julius Baer’s Swiss offices has also allowed the Bank to reduce net emissions significantly compared to 2019.
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. That is why in 2024 Julius Baer also announced it was funding projects in Panama and Indonesia that work towards the restoration of tropical forests and mangroves that play an important role in capturing carbon naturally.
Another key focus area? Internal sustainability trainings. Julius Baer has successfully built up a community of Sustainability Ambassadors, which consists of 270 experienced client-facing employees. The objective is to further increase their knowledge of the positive impact and business potential of sustainability. Ambassadors are empowered to address the topic in client meetings, and with the Ambassador community they have a platform to exchange ideas and experiences. In addition, all new joiners at Julius Baer complete a sustainability e-learning module, and, last year, close to 1,000 employees received training on regulatory developments in sustainable finance.
This dual approach of responsible wealth management and responsible citizenship is needed to realise Julius Baer’s ambition of shaping the future together with clients and shareholders. Sustainability is a journey built one step at a time together.