Our Climate Action Plan

“It is our fiduciary responsibility to play an active role in accelerating the transition of the global economy towards a net-zero emissions future in line with the climate science.”

— Renaud de Planta, former Managing Partner

Commitments and convictions

Our convictions reflected in our Climate Investment Principles, referred to throughout this plan, underpin our commitments to the Net Zero Asset Managers and Science Based Targets initiatives.

1.

Climate change will have a material impact on asset prices and investment returns.
2.

The investment decisions taken today will have a strong bearing on how climate change and its consequences ultimately unfold.
3.

No economic system will be immune to the impacts of severe climate change, therefore such a risk cannot be easily diversified or hedged.
4.

Our governance and risk management systems must be fit to enable the delivery of this climate action plan.

Pictet's estimated GHG emissions footprint, 2021 (1,000 tonnes CO2e)¹

As climate change is a financial risk that will affect all of our assets, it is our fiduciary responsibility to play an active role in reducing global emissions. Given the magnitude of our financed emissions through our investments, we must help accelerate the transition of the global economy towards net zero emissions in line with 1.5°C. We also have a direct responsibility to reduce our operational footprint.

¹ CO₂e, or carbon dioxide equivalent, is a metric used to compare different greenhouse gases depending on their global warming potential. It is calculated by converting emissions from other gases into the equivalent amount of CO2 in terms of global warming potential.

² Scope 3 category 15 - includes financed scope 1 and 2 emissions of issuers of listed securities and real estate assets owned by our discretionary solutions; it excludes other asset classes (i.e. commodities, alternative investments) and all financed emissions from our Advisory mandates.

³ Scope 1

⁴ Scope 2

⁵ Scope 3 categories 1 – 14, pre-pandemic levels closer to 52.2

Low-carbon transition targets for our investments

Pictet’s target for listed equity and fixed income

The current baseline and expected future progress will differ by asset class and geography.
SBTi validated

How we will achieve these targets

Active ownership

Engage with the issuers of our investments to set science-based targets.

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Responsible products and solutions

Grow and launch new investment solutions that foster the low-carbon transition.

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Advocacy and partnerships

Motivate other stakeholders join the net-zero transition.

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Assets covered by current and future targets¹

For 2022, we have set targets on 70% of assets we manage on behalf of our clients and on our balance sheet, or CHF 254 billion. Over time, we plan to include targets covering 100% of our managed assets, as methodologies and guidance from SBTi become available.

These numbers exclude our advisory, execution-only and custody-businesses, as the investment decision remains firmly with our clients. As things stand, these assets will remain excluded from any future targets, as we cannot materially influence those investment decisions. We nonetheless aim to provide ample awareness on climate dependencies and impacts, suitable investment alternatives, and transparent disclosure on climate metrics to these clients.

¹The percentage shown for today is conditional on our asset class allocation remaining the same

²Includes private equity fund selection, hedge funds, private debt, direct real estate fund selection

³Includes structured products and derivatives and commodities

Percentage of assets covered by managed target

Low-carbon transition targets for our operations

SBTi validated

We commit to reducing our absolute scope 1 and 2 emissions by 55% by 2030 from 2019 levels.

Our key levers of action:

Build a cutting-edge low-carbon HQ in Geneva and move to less fossil-intensive offices abroad
Decarbonise our electricity consumption through Energy Attribute Certificates
Raise awareness of climate change and improve eco-friendly behaviours

Pictet's levers of Climate Action

Clients' assets

Own assets

Our progress on climate change

For the past several years, we have made ongoing efforts around climate action, with this plan serving as a roadmap to continue and expand upon these in the years to come. We will also continue to be transparent on our progress on climate change.

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Our governance

Tackling the climate challenge is very complex, partly because its worst effects are felt over the long term. Pictet’s governance and core business model are well suited to managing the required transition. The average tenure of our Managing Partners is 21 years, making them accountable over multiple decades for decisions taken today.

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