Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Concerns over counterfeit luxury goods in China.
• Slowdown in the Chinese luxury goods sector (2015-2016).
• Weakening of Asian currencies against the US dollar.
• Structural break in the global labor market with a rise in part-time jobs.
• Slowdown in global export growth.
• Concerns about asset bubbles and speculative activity in the property market.

Mitigation Strategies

• Luxury brands harmonizing prices to reduce arbitrage opportunities.
• Chinese government cutting duties on some luxury goods and cracking down on grey markets.
• Government initiatives to boost infrastructure spending and create jobs.
• Development of new technologies in financial services (P2P lending, data analytics).
• Government measures to reduce stamp duties in some property markets.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Natural resource efficiency
• Climate change
• Biodiversity
• Ocean conservation
• Sustainable agriculture
• Sustainable urban development
• Impact investing

Environmental Achievements

• Reduced carbon emissions through various initiatives (quantified data not provided)
• Supported ocean conservation efforts leading to the protection of 6.5 million square kilometers of ocean (Pristine Seas)
• Developed sustainable products using upcycled ocean plastics (#tide)
• Implemented sustainable design strategies in buildings (WOHA), reducing energy and water consumption

Social Achievements

• Created more than 350 jobs and indirectly supported over 3,000 people through Sanergy's sanitation and waste management projects
• Promoted community ownership in Sanergy projects
• Developed high-density, high-amenity developments to improve urban living (WOHA)
• Increased awareness of ocean sustainability through education programs (Oceano Azul Foundation)

Governance Achievements

• Supported responsible investment and capital flow into conservation and sustainable initiatives
• Promoted transparency and accountability in supply chains (#tide)
• Engaged with governments, investors, and entrepreneurs to build a sustainable ocean economy (Oceano Azul Foundation)

Climate Goals & Targets

Environmental Challenges

• Overuse of natural capital leading to unhealthy oceans, biodiversity loss, and climate pollution
• Increasing wealth disparity and lack of equal opportunities
• Unsustainable production and consumption behaviors
• Lack of funding for ocean conservation
• Unsustainable land use in food and agriculture systems
• Food waste
• Inadequate waste management in developing countries
• Greenwashing in the sustainability sector

Mitigation Strategies

• Promoting impact investing to align economic models with planetary boundaries
• Investing in nature-based solutions
• Phasing out fossil fuels and transitioning to renewable energies
• Implementing sustainable fishing practices and establishing marine protected areas
• Protecting at least 30% of the ocean by 2030
• Transitioning to sustainable agricultural systems
• Developing and implementing circular economy approaches to waste management (Sanergy, #tide)
• Creating high-density, high-amenity urban developments (WOHA)
• Promoting transparency and traceability in supply chains (#tide)
• Educating the public about ocean sustainability (Oceano Azul Foundation)

Supply Chain Management

Responsible Procurement

• Sustainable sourcing of materials (#tide)
• Fair wages for suppliers (#tide)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding
• Droughts
• Wildfires

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Renewable energy
• Nature-based solutions
• Sustainable agriculture

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 14 (Life Below Water)
• Goal 15 (Life On Land)
• Goal 2 (Zero Hunger)

Initiatives contribute to these goals through various sustainable practices and investments.

Sustainable Products & Innovation

• #tide ocean material
• Sustainable design in buildings (WOHA)
• Insect-based animal feed (Sanergy)

Awards & Recognition

• Kampung Admiralty won 'World Building of the Year' in 2018

Environmental Metrics

ESG Focus Areas

• Responsible Wealth Management
• Responsible Citizenship

Environmental Achievements

• Considerably reduced greenhouse gas emissions from own operations compared to 2019 baseline (52% reduction)
• Implemented internal carbon pricing on air travel (CHF 100/tCO2e)
• Switched to renewable electricity or purchased renewable energy certificates globally and biogas in Swiss offices

Social Achievements

• Launched Sustainability Front Ambassador community (200 senior employees trained)
• Increased volunteering hours more than threefold since 2021 (5,968 hours)
• Increased employee engagement score to 7.9 out of 10 and net promoter score to 35

Governance Achievements

• Issued Group-wide reputational risk guidelines for environmental and social risks
• Defined a comprehensive stewardship strategy encompassing voting and engagement on climate actions with investee companies
• Improved ESG investment rating methodology covering equities, funds, and bonds

Climate Goals & Targets

Environmental Challenges

• Data availability and quality for impact analysis
• Challenges in conducting impact analysis due to data and tool limitations
• Increasing number of regulations in sustainable finance and greenwashing concerns

Mitigation Strategies

• Focused initial impact analysis on climate change mitigation using PCAF, TCFD, and PACTA
• Leveraging proprietary ESG investment rating methodology and external tools for impact analysis
• Continuous refinement of ESG investment rating methodology and client reporting

Supply Chain Management

Supplier Audits: Monitoring via IntegrityNext platform

Responsible Procurement

• Code of Conduct for Business Partners (mandatory in all supplier contracts)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, impacting operations, water and raw material availability, supply chain disruptions

Transition Risks

• Policy, legal, technology, and market changes related to climate change mitigation and adaptation

Opportunities

• Investment opportunities in low-carbon economy and related technologies

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN PRB, UN PRI, SDGs

Certifications: ISO 27001

Third-party Assurance: BDO Ltd (limited assurance on sections of UN PRB self-assessment)

UN Sustainable Development Goals

• SDG 13: Climate action
• SDG 17: Partnerships for the goals
• SDG 8: Decent work and economic growth
• SDG 4: Quality education
• SDG 10: Reduced inequalities
• SDG 9: Industry, innovation and infrastructure
• SDG 5: Gender equality
• SDG 16: Peace, justice and strong institutions
• SDG 12: Responsible consumption and production
• SDG 3: Good health and well-being

Initiatives aligned with SDGs are detailed throughout the report

Sustainable Products & Innovation

• Sustainability mandates
• Impact investing solutions
• ESG-related client reports

Awards & Recognition

• Bloomberg Gender Equality Index (2023)
• Swiss LGBTI Label (2022)

Environmental Metrics

ESG Focus Areas

• Responsible wealth management
• Responsible citizenship

Environmental Achievements

• Moved into more energy-efficient offices in Hong Kong and London.
• Partnership with Swiss International Airlines and Lufthansa Group to purchase sustainable aviation fuel (SAF).
• Near-term climate targets validated by Science Based Targets initiative (SBTi).

Social Achievements

• Expanded Sustainability Circle client community to Asia and Latin America.
• First-time inclusion in the Bloomberg Gender Equality Index.
• Increased the number of Sustainability Ambassador Club members to over 270.

Governance Achievements

• Strengthened ESG investment rating methodology.
• Enhanced ESG client reports to include climate metrics.
• Improved climate scenario model and documented how climate risks are assessed and mitigated.

Climate Goals & Targets

Environmental Challenges

• Tepid performance from ESG funds and lackluster demand.
• Increasing regulatory complexities.
• Oil and gas producers watering down their climate targets.
• Volatile markets and economic turbulences dampening demand for sustainable investments.

Mitigation Strategies

• Continued taking concrete actions towards achieving long-term goals.
• Refined ESG investment rating methodology.
• Expanded client reporting and Sustainability Circle community.
• Developed and implemented investment rating methodology for structured products and derivatives.
• Refined approach towards impact investing solutions in private equity.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Code of Conduct for Business Partners (mandatory in all supplier contracts since 2008).
• Use of IntegrityNext platform to monitor suppliers for sustainability and reputational risks.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting operations and supply chain.

Transition Risks

• Policy, legal, technology, and market changes related to low-carbon transition.

Opportunities

• Development of energy-efficient products and services.
• Investment opportunities in renewable energy and climate technologies.

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN PRB, UN PRI, SDGs

Certifications: Null

Third-party Assurance: KPMG AG

UN Sustainable Development Goals

• SDG 7
• SDG 9
• SDG 10
• SDG 12
• SDG 13
• SDG 14
• SDG 15
• SDG 17

Initiatives contribute to these goals through various programs and strategies related to climate action, responsible investing, community engagement, and employee well-being.

Sustainable Products & Innovation

• Sustainability discretionary mandates.
• Impact investing solutions (private equity).

Awards & Recognition

• 'Best Private Bank for Technology for ESG Reporting' (PWM Wealth Tech Awards).