2022 was a turbulent year in many respects. What has this meant for the sustainability agenda?
Yvonne Suter: "In a year of geopolitical fragility, energy insecurity and economic volatility, sustainability may not have been at the forefront of everyone’s mind. Additionally, we face challenges such as an increasing number of regulations in this field, and discussions on greenwashing.

However, I think overall awareness of the topic remains very high. Climate change impacts in particular are becoming more and more tangible, while the war in Ukraine has hampered energy security. Both put a spotlight on the critical need to accelerate the transition to renewable energy sources. That is why I strongly believe that sustainability is a catalyst of change, and we should seize the opportunity and use the momentum. We continue to implement our sustainability strategy with efforts made throughout the business to reach our goals. In fact, we consider sustainability a key enabler of Julius Baer’s recently refined Group strategy, and of our purpose to create value beyond wealth."

Where do you see the main opportunities for sustainability to contribute to the bank’s overall strategy?
"The integration of sustainability into our business strategy reflects how the topic has entered the mainstream. In finance, an ever-growing number of investors are placing greater importance on so-called ‘non-financial’ factors, recognising opportunities and risk mitigation strategies in addressing these issues responsibly. We consider sustainability as an important business lever for prompting and intensifying client interaction and strengthening trusted relationships. To meet our clients’ expectations, we propose a range of sustainability solutions and services.

In addition, growing awareness of sustainability shows that the topic is increasingly a prerequisite for a business to be credible and maintain its reputation. This is reflected in our sustainability framework, which depicts our priorities across two strategic pillars, responsible wealth management and responsible citizenship. And it is confirmed by the new materiality assessment, which we conducted in 2022 to identify the most important sustainability-related issues for us as a company."

The framework defines your ambition as empowering clients to make a positive impact. How will you achieve this?
"There are a number of points to consider when interacting with clients on sustainability. Initially, the key question is always what matters to them personally. Clients have their own preferences, and our aim is to accompany them on their sustainability journey. Therefore, we guide them towards sound metrics and transparent information that allows them to invest in line with their values, and of course by offering products and solutions. These span responsible, sustainable and impact investing, as well as philanthropy.

We also know that many clients are looking for more than products on their sustainability journey, so we go beyond these and offer an entire ecosystem of services in responsible wealth management. This ecosystem includes our rigorous ESG investment rating methodology and client reports, access to research and thought leadership, and opportunities for networking and acquiring ESG knowledge."

What would be some of your recent efforts across the ecosystem?
"In 2022, we further refined our ESG investment rating methodology for equities, funds and bonds. We also issued ESG client reports to selected clients for the first time, a further step in our commitment to ensure transparency on the sustainability performance of investments. The client report includes a view at an aggregated portfolio level as well as scores on climate or human-capital metrics.

We also enable insight and dialogue, by working with Julius Baer research, topic experts and external thought leaders. Another key activity in 2022 was building up our Sustainability Circle, a dedicated client community that brings together investors, entrepreneurs and business leaders motivated to support the shift towards a more equitable future and a healthier planet. Members share insights, join forces, and use their experience to encourage positive change. In its first year, the Sustainability Circle offered a range of activities, including digital educational sessions, expert speeches, and events in London, Berlin and Zurich."

Beyond its interaction with clients, Julius Baer has a duty to operate responsibly as corporate citizen. What are some key recent examples of this?
"We do indeed have a dual responsibility, both as a wealth manager and in our own corporate activities. We are committed to ‘walking the talk’ on sustainability and to fully integrating it into our organisation.

An important milestone in 2022 was the launch of our new climate strategy. At its core is a commitment to achieving net-zero greenhouse gas emissions. In our own operations, we strive to do this by 2030.

Shifting to renewable energy, purchasing renewable energy certificates, and switching to biogas in our Swiss offices has allowed us to already significantly reduce our net emissions, compared to 2019. On our treasury, mortgage and lending book, we aim to achieve net-zero emissions by 2050. Supporting these efforts, we have defined a stewardship strategy that includes engagement and sustainability voting practices to foster change within high emitting companies. Last but not least, we aim to limit air travel and have introduced an internal carbon price on it.

Another key focus area of our internal sustainability efforts is training. We have successfully built up our community of Sustainability Ambassadors, which consists of 200 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 the bank complete a sustainability e-learning module, and, last year, over 3,000 employees received training on regulatory developments in sustainable finance."

Where do you think Julius Baer stands on its sustainability journey?
“I believe that external benchmarks are an important indicator, recognising our efforts. This includes MSCI ESG, who increased our rating from A to AA in 2022, validating our sustainability strategy. Such accolades are testament to our continued commitment and work. However, there is much work ahead of us and, while we have laid solid foundations, challenges are continual and evolving. We want to maintain the trust of our stakeholders, and to keep empowering for positive change. I think it is important to always bear in mind that sustainability is an ongoing journey, and we want to collaborate with our clients and broader stakeholder groups to shape the future together.”