Sustainability-related disclosures for our advisory mandates
Integration of sustainability risks
At Bank Julius Baer & Co. Ltd., we consider sustainability risks (risks arising from environmental, social or governance events or conditions that could have a material negative impact on the value of an investment) as critical aspects in our overall risk management framework. For our investment advisory business, we have therefore integrated sustainability risk considerations into our advisory process. First, ESG risk factors and assessments on an instrument-level were made available to relationship managers and investment advisors via our Products and Services Platform. Second, a sustainability risk solution was integrated into our investment advisory workflow tool. Third, the application of these new process steps was underpinned by the introduction of new internal policies and guidelines. In particular, these three aspects are intertwined with the implementation of the Julius Baer sustainable investment rating methodology, which allows us to recognise financial instruments that we deem to have a material negative impact on the environment or society, or to bear severe governance-related risks. We therefore excluded such investments (so-called ESG Risk Investments) from our offering, which means that we will not provide active advice on such instruments. The asset classes currently covered by our sustainable investment rating methodology include equities, corporate and sovereign bonds, funds, structured products and unsecuritised derivatives. Please note that additional asset classes will be covered in the future as ESG data coverage evolves. The main goal of the outlined process is to provide further information to our clients, highlighting as many investment-related risks as possible, so that they can make sound and holistic decisions.
No consideration of adverse impacts of investment advice on sustainability factors
In accordance with Article 4 (5) of Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector, Bank Julius Baer & Co. Ltd. does not generally consider the adverse impacts of investment decisions on sustainability factors in its investment advice, as displayed in Annex 1 Table 1 of Commission Delegated Regulation (EU) 2022/1288. However, Bank Julius Baer & Co. Ltd. provides its clients with the option to declare an overall preference for financial instruments that to a varying degree follow good environmental, social and governance practices including the consideration of adverse environmental and/or social impacts according to the Julius Baer sustainable investment framework.
Information about our remuneration policy
At Bank Julius Baer & Co. Ltd., we recognize the importance of environmental, social and governance (“ESG”) sustainability elements throughout our business activities, including our remuneration systems. In accordance with the Julius Baer Group standards, ESG is reflected, directly or indirectly, in various aspects of our remuneration systems at regional, divisional and individual levels through proper governance, performance measurement standards (around values, client satisfaction and employee development) and risk management considerations. At Julius Baer, the compensation schemes are designed to ensure compliance with global rules and regulations and the ESG considerations embedded within them, while specifically incorporating location-specific guidelines, in support of a sound risk culture. Group-wide compensation decisions include assessments of financial-, market-, legal-, risk-, and compliance-related metrics to ensure compensation properly reflects both, internal and external factors. We also employ a compensation deferral mechanism, with risk-adjusted performance metrics, to deter excessive risk-taking. Socially, Bank Julius Baer & Co. Ltd. operates various initiatives related to talent management, workforce diversity, and employee satisfaction, which we strengthen each year to help us attain our Employer of Choice goals and support our sustainability aspirations. At the individual level, all employees are held to high conduct standards via our Code of Ethics and Business Conduct (redefined in 2020) and are specifically measured on their ability to reflect our core Values (Care, Passion, and Excellence) and Risk Behaviours in their business activities. For more information about how our remuneration policy is consistent with the integration of sustainability risks, please be referred to the Remuneration Report section of our Group’s latest Annual Report (available here).
Sustainability-related disclosures for our discretionary portfolio management mandates
Integration of sustainability risks
At Bank Julius Baer & Co. Ltd., we consider sustainability risks (risks arising from environmental, social or governance events or conditions that could have a material negative impact on the value of an investment) as critical aspects in our overall risk management framework. In our capacity as investment manager, we have therefore integrated sustainability risk considerations into our investment management process. For this purpose, ESG risk factors and assessments on an instrument-level were made available to our investment and portfolio managers. The application of this additional information and data was underpinned by the introduction of new internal policies and guidelines. In particular, this enhanced process is intertwined with the implementation of the Julius Baer sustainable investment rating methodology, which allows us to recognise financial instruments that we deem to have a material negative impact on the environment or society, or to bear severe governance-related risks. We therefore excluded such investments (so-called ESG Risk Investments) from our offering. This means that we will not invest on your behalf in such instruments, in the context of a discretionary mandate (subject to exceptions, e.g. for index tracking purposes). The asset classes currently covered by our sustainable investment rating methodology include equities, corporate and sovereign bonds, funds, structured products and unsecuritised derivatives. Please note that additional asset classes will be covered in the future as ESG data coverage evolves.
No consideration of adverse impacts of investment decisions on sustainability factors
In accordance with Article 4 (1) of Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector, Bank Julius Baer & Co. Ltd. does not generally consider the adverse impacts of its investment decisions on sustainability factors as displayed in Annex 1 Table 1 of Commission Delegated Regulation (EU) 2022/1288. The reason for not doing so is that Bank Julius Baer & Co. Ltd. has decided to first start with a selected offering of discretionary portfolio management mandates, which consider adverse environmental and/or social impacts according to its proprietary Julius Baer sustainable investment framework. Bank Julius Baer & Co. Ltd. takes the view that a general consideration of adverse impacts and quantitative disclosure over all its discretionary portfolio management mandates would require a disproportionately high administrative effort, which at this point in time is not justified, due to the still evolving regulatory baseline and data foundation. However, Bank Julius Baer & Co. Ltd. is closely monitoring these developments and re-evaluates this position on a continuous basis.
Information about our remuneration policy
At Bank Julius Baer & Co. Ltd., we recognize the importance of environmental, social and governance (“ESG”) sustainability elements throughout our business activities, including our remuneration systems. In accordance with the Julius Baer Group standards, ESG is reflected, directly or indirectly, in various aspects of our remuneration systems at regional, divisional and individual levels through proper governance, performance measurement standards (around values, client satisfaction and employee development) and risk management considerations. At Julius Baer, the compensation schemes are designed to ensure compliance with global rules and regulations and the ESG considerations embedded within them, while specifically incorporating location-specific guidelines, in support of a sound risk culture. Group-wide compensation decisions include assessments of financial-, market-, legal-, risk-, and compliance-related metrics to ensure compensation properly reflects both, internal and external factors. We also employ a compensation deferral mechanism, with risk-adjusted performance metrics, to deter excessive risk-taking. Socially, Bank Julius Baer & Co. Ltd. operates various initiatives related to talent management, workforce diversity, and employee satisfaction, which we strengthen each year to help us attain our Employer of Choice goals and support our sustainability aspirations. At the individual level, all employees are held to high conduct standards via our Code of Ethics and Business Conduct (redefined in 2020) and are specifically measured on their ability to reflect our core Values (Care, Passion, and Excellence) and Risk Behaviours in their business activities. For more information about how our remuneration policy is consistent with the integration of sustainability risks, please be referred to the Remuneration Report section of our Group’s latest Annual Report (available here).
| Version | Date | Changes |
| 4 | 12.12.2024 | Change of name: - “Julius Baer ESG Investment Rating Methodology” to “Julius Baer Sustainable Investment Rating Methodology” - “Julius Baer ESG Investment Framework” to “Julius Baer Sustainable Investment Framework” Inclusion of new asset classes into the Julius Baer Sustainable Investment Rating Methodology |
| 3 | 21.02.2024 | Update of remuneration statement: new reference to Group remuneration report |
| 2 | 20.12.2023 | Update of current position with regard to data availability and consideration of adverse impacts on sustainability factors |
| 1 | 10.03.2021 | Initial Publication |