Responsible Investment involves looking not only at the financial matrix of a company, but also at qualitative matrices that assess companies based on longer-term risk factors.

Julius Baer’s definition of Responsible Investment

Responsible Investment ensures Julius Baer’s overall investment process takes financial material Environmental, Social, and Governance (ESG) risks into consideration in order to achieve long-term economic benefits for our clients and raise awareness and transparency of these risks.

Responsible Investment Matters

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Achieving long-term economic benefits for our clients

Responsible Investment combines financial assessment with information regarding ESG risks, and is built upon the understanding that key extra-financial factors, such as corporate governance, vulnerability to climate change, water supply stress, product safety and quality, and corruption and instability can have a significant influence on a company’s financial success. We strongly believe that firms recognising the importance of these factors manage industry-specific risks more efficiently than their competitors and will be able to report more perennial profitability and creditworthiness. In doing so, the underlying goal is to capture various risks to achieve what is economically profitable for our clients in the long run.

Integrating Responsible Investment into the investment process

In order to minimise ESG risks in the investments of our clients, Julius Baer uses company ESG ratings to assist research analysts, portfolio managers, and investment advisors to identify financial material ESG risks in the investment process. Julius Baer takes an inclusive approach by actively screening our investment universe and challenging companies with the lowest ESG ratings in order to fully understand the entailed ESG risks in addition to traditional financial analyses.

Thus, Responsible Investment serves as a basis for a number of specialised investment strategies, such as sustainable investment, next generation, as well as impact investing.

  • Sustainable investment builds upon the Responsible Investment approach with a focus on best-in-class ESG companies alongside capturing financial returns.
  • Next generation is a forward-looking investment philosophy that identifies the secular growth areas linked to global megatrends and seeks the winning companies of the future.
  • Impact investing aims to generate specific social and/or environmental benefits in addition to potential financial returns.

Raising awareness and transparency of ESG risks

To assist our clients in making informed investment decisions we include MSCI ESG Ratings and MSCI ESG Controversies for equities and fixed income in research reports and marketing material. The Julius Baer Funds team also conducts in-depth analysis to provide the Julius Baer Responsible Investment Fund Rating (JB RIFR) with recommended fund marketing material.

A signatory of the Principles for Responsible Investment (PRI)

Julius Baer signed the United Nations-supported Principles for Responsible Investment (PRI) Initiative in September 2014, and we are in the process of incorporating the Principles throughout Julius Baer. As a signatory, we are committed to following the PRI guidelines by incorporating ESG metrics into our investment decision-making and ownership practices and reporting our activities under the annual reporting framework.

Further information

Are you interested in learning more about Julius Baer's approach to Responsible Investment? Your Julius Baer relationship manager would be happy to discuss our approach in detail with you and what it means for your portfolio.