Each time the Julius Baer Foundation assembles its Board, the Chairman reads out the number of the meeting. CEO Laura Hemrika says it’s a reminder of the legacy that she now stewards. “The most recent meeting was the 146th in the series – which shows the long tradition of philanthropy at the Bank that my colleagues and I are now upholding.” 

Laura says it’s a great honour to carry the baton forward. “I’m only a small part of this series, continuing the work of those who’ve come before. I’m inspired by all the Baer family members who’ve continued the philanthropic tradition started by Walter J. Bär back in 1965. The family remains actively involved in the Foundation to this day, with one member also serving on the Board. That’s why I’m determined to live out the role responsibly and play whatever part I can in ensuring that we continue to have a positive social impact on society.” Laura says her stewardship of the Foundation is similar to what they say about having a famously durable Swiss watch: “It’s not yours, you’re merely looking after it for the next generation.” 

Greater wealth equality creates a benefit for all

Over the years, the Foundation has evolved from supporting art, culture and various sciences to actively responding to the most pressing needs of society. “We’re proud of the impact we’ve achieved so far, which has been made possible by the collective efforts of Bank Julius Baer, the Baer family, our colleagues, clients, and partners worldwide,” says Laura. “Through donations, volunteering, or activism efforts, their contribution has strengthened our current projects, enabled new initiatives, and amplified our collective impact.” 

The Foundation’s evolution has continued since Laura joined as CEO in 2023, marked by a sharpened strategic focus that now places the reduction of wealth inequality at the very heart of its mission. “Wealth inequality results in lost economic opportunities and a lack of growth, both for communities and companies,” says Laura. “That’s extremely relevant if you run a business in a local community or country, as many of our clients do. It has an impact on the resilience of the community, of households and of individuals to any economic or social shock. It also impacts the rule of law and the strength of institutions and systems. All of these matter economically, socially but also personally if you call this community home.”

While the consequences of wealth inequality for those from disadvantaged socio-economic backgrounds – such as limited access to education, healthcare, income or opportunities – are widely recognised, the implications across the wealth spectrum are often less acknowledged.

Laura cites findings by researchers indicating that all individuals in more equal societies, including the wealthy, tend to enjoy a better overall quality of life than those in more unequal societies. “In some parts of the world, the wealthy enjoy what we might term a ‘luxurious’ lifestyle, but often without basic wellbeing factors such as freedom of movement or security.” 

She notes that societies marked by high levels of wealth inequality show higher levels of ill health, stress, and potential for social unrest – all of which contribute to a sense of instability. “There’s also lower social cohesion and diminished trust, in addition to economic loss and the fragility of institutions. Ultimately, wealth inequality harms everyone within a society.”

Convening role strengthens impact

This desire to ensure a better quality of life for all is a driving force for many of the Foundation’s clients and partners. Laura draws inspiration from people like Oliver Rust, founder of the Jojoba for Namibia Trust. “Oliver is a fifth-generation Namibian, of German heritage, who speaks about the importance of having a safe and prosperous society so that people from all walks of life – from rural farmers and tribespeople to his own daughters – can flourish in Namibia.”

Laura wants to see a shift in the narrative around how we perceive wealth inequality. “In the Foundation, we don’t talk about ‘poor versus rich’ – we view wealth inequality as a shared problem that we need to address together. It goes beyond a wealthy person funding an NGO or a community implementing a project – it’s about building true collaboration across the wealth divide. To move the needle on wealth inequality, we have to play to our strengths.” 

As the philanthropic arm of Julius Baer, the Foundation has a unique opportunity to act as a convener. “We sit at the nexus of many stakeholders: affluent clients, NGOs, social enterprises, philanthropists, industry and government organisations, which enables us to bring organisations, partners and funders together,” says Laura. “We want to show that if you work across the wealth divide within projects, you’re going to have a more sustainable and successful impact.”

Generating social impact isn’t exclusively about providing funds. “It’s also about the other forms of capital you can bring – knowledge capital, human capital, institutional capital, as well as philanthropic to investment capital,” she says. “That’s what motivates me most: how can we put the full spectrum of capital to use to create the impact we’re looking for?”

Philanthropic engagement generates a ripple effect

Laura gives the example of a philanthropist who wanted to devote the early inheritance she had received to support women in Africa. The philanthropist chose to support TAWAH, an NGO in Tanzania that empowers women with the skills to thrive in the sustainable construction business. “During discussions with TAWAH, the philanthropist asked the organisation’s leader how she planned to grow its activities if more funding arrived,” says Laura. “The CEO replied, very honestly, that she would need help to reexamine the organisation’s strategy.” 

This is where the multiplier effect of relationships came to the fore. “It turned out that the philanthropist’s husband is a professor of business strategy,” says Laura. “Not only did he contribute his own expertise, he brought a group of his MBA students to Tanzania to hold a series of strategy workshops for the organisation.” 

The project is now in its second phase with an aim to train 50 more women and build more houses for the local community. “Because one philanthropist had the courage and belief to start funding the project, it became a lot easier to convince others to do likewise,” says Laura. 

Forging ties between stakeholders adds value on the supply side

The Foundation has identified three key areas of intervention to reduce wealth inequality. One of these is income generation and enterprise development, through which it promotes more inclusive supply chains. For instance, its partner organisation CODESPA connects smallholder seaweed farmers in the Philippines with a large seaweed processing company to mutually develop the market for locally grown seaweed. 

“By enabling this direct communication between the two, the farmers become a relevant part of the seaweed value chain, which allows wealth to flow from the international private sector to the local communities,” says Laura. Here too, a multiplier effect takes hold. “The farmers not only increase their own income and wealth but provide a stimulus to the local community, by assisting other farmers outside the community to improve their livelihood as well.”

Relationship-building is vital to ensuring future impact

As the ‘Swiss watch’ strikes 60 on the Foundation’s history, what would Laura like to achieve during her time as its custodian? “I’d like us to increase our impact not only on the ground through our various projects and their funding, but also in terms of our ability to ignite other people’s passion for social impact, their awareness of wealth inequality, and their own ability to have an impact.”

She comes back to the importance of partnership. “Individuals and communities can only thrive when there’s genuine collaboration across the wealth divide. As soon as we recognise one another for our potential and shared purpose, we can open the door for dialogue and collaboration. Once that door is open, we can put the innovation into action to address local – and even potentially global – challenges.”

If you would like to make a donation to the Foundation or have a conversation with Laura and her team about the unique ways you can contribute, please visit the Julius Baer Foundation. You are also invited to explore the Wealth Inequality Initiative, launched by the Foundation in 2021 to raise awareness about the topic and drive action. It offers a comprehensive overview of the Foundation’s and its partners’ activities and ongoing efforts in this area.