Balance sheet exposure includes positions in Treasury, in a hedging book of derivatives and structured products, as well as seed investments.
We believe that, irrespective of collective public sector action on moving to a carbon-neutral economy, companies in the private sector should also advance this objective independently. As we have full control of our balance sheet, this is one undertaking that we can make now.
For more than 20 years Pictet has been a pioneer in sustainable investments with a range of specific investment funds. For all Group-wide assets over which we have full discretion, we are aiming for an 80% integration of environmental, social and governance (ESG) criteria by the end of the year, rising to 100% by 2025. For assets advised or held in custody, we will be increasing awareness of ESG and other impact characteristics by including these factors in reporting to clients.
Throughout our investment activities for private and institutional clients we also have a programme of active ownership and engagement that aims to improve the ESG performance of select issuers. Ambitions and precise targets for both our investment activities and our own operations will be published by end of December 2020, in line with our commitments to the UN Principles for Responsible Banking, signed in October 2019.
In our own business activities we are taking every step possible to cut our carbon footprint by employing the most advanced building technology, reviewing every aspect of our operations and steadily cutting the greenhouse gas emissions of our infrastructure and employee mobility.
The Pictet Group has survived and prospered for over two centuries by taking a responsible, long-term approach to business and to the management of its clients’ wealth. In doing so, we have always considered not only the interests of the present, but also of future generations. This is the essence of responsible thinking, and the best contribution we can make to the future of sustainable life on the planet.
The Managing Partners
On behalf of the Pictet Group
1 Defined as companies deriving more that 25% of their revenues from the relevant carbon-intensive activities