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 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 are convinced 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 the entire spectrum of risks to achieve what is economically profitable for our clients in the long-run.
Aiming 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. Julius Baer has set up a Responsible Investment Board to ensure governance of this integration.
In addition, Julius Baer strongly believes in the importance of sustainable investment. We aim to offer our clients a diversified portfolio of sustainable investments in various asset classes and currencies in line with their individual requirements. Julius Baer introduced a dedicated sustainability mandate over ten years ago, highlighting a longstanding dedication to sustainable investment. As a specific sub-category of our discretionary management offering, the sustainability mandate also applies the best-in-class filter in addition to the ESG integration. It offers our clients the possibility to participate in a globally diversified universe of forward-thinking, responsible and innovative companies. The top 30% companies related to each sub-sector become part of the investable universe. The investments are made according to themes, specifically addressing the relevant challenges of the near future, such as energy efficiency, education, mobility, biodiversity or water.