With the challenges the world is now facing, we need to move swiftly to a more resilient and sustainable economy. Pictet has long believed that the financial system has a role to play in this transition — investing in those firms committed to building a better future, using our influence to advocate for positive change and advising our clients accordingly.
We have to embrace new models that are based on solid science and innovative partnerships and also take account of environmental, social and governance factors in investment decisions and active ownership practices.
It also means further developing solutions that redirect capital flows to issuers best positioned to tackle these challenges.
Before 2025, we want to have:
- Significantly reduce the environmental impact of our activities and investments.
- Fully integrate ESG factors and active ownership into all investment processes.
- Become a leading provider of responsible products and solutions.
10 levers of action
To achieve our ambitions, we have identified key levers of action for conducting our own activities and for managing assets on behalf of our clients. We are convinced these levers of action will make us better investors and corporate citizens and help us play our part in designing a thriving system for future generations.
1. Investing our balance sheet
As we have full control over our balance sheet, we have committed to portfolio decarbonisation and investing in activities that help speed up the transition to a low-carbon economy. This includes our corporate treasury as well as seed investments.
2. Employee engagement to foster responsibility
Our employees are our most crucial asset and a key amplifier when it comes to sustainability and responsible behaviour. We continue to engage with our colleagues on sustainability topics and encourage them to be involved in local actions, especially where we have a strong presence.
3. Managing our environmental impact
In our own business activities we are taking every possible step to cut our carbon footprint by employing the most advanced building technology, reviewing every aspect of our operations and reducing the environmental impacts of our infrastructure and employee mobility.
As the ultimate “risk capital”, philanthropy can be an important part of tackling some of the world’s most intractable problems. Through our initiatives and supported projects, we seek to stimulate action on environmental and social issues.
5. Advocacy and partnerships
We strive to encourage all our stakeholders and partners to implement sustainability and responsible investment. We have therefore signed the UN Principles for Responsible Investment for all business lines, including our pension fund, and committed to the UN Principles for Responsible Banking.
6. ESG integration into investment processes and risk management
Across research, investment decisions, risk management and advisory services, we continue to place emphasis on the inclusion of environmental, social and governance factors when evaluating corporate and sovereign issuers.
7. Responsible products and solutions
We continue to develop investment strategies that provide capital to companies which help to have a positive impact on society or the environment. We also support those companies that plan to mitigate the negative externalities of their products, services, operations and supply chain.
8. Active ownership
We strive to engage with issuers that fall short of our expectations – either directly or through collaborations with other investors. Where necessary, we will escalate to Board representatives, vote against management or support shareholder resolutions. Depending on the severity of the concern and the issuers’ capacity or willingness to adopt generally accepted standards of best practice, we may choose to sell the investment.
9. Client disclosure
Where relevant data are available, we strengthen reporting on the ESG characteristics of client portfolios and the impact of active ownership activities. Where data are missing, we encourage issuers to report according to international standards. When relevant, we report on our strategies’ exposure to the United Nations Sustainable Development Goals and Planetary boundaries.
10. Research and Thought-leadership
We will use our substantial experience across key environmental and social themes to publish targeted research and help raise awareness and capital for a sustainable transition.
Our approach to responsibility
Our actions to tackle climate change
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. Pictet contributes to tackling climate change through a set of business and investment targets, supported by initiatives across our 10 levers of action.
The Pictet Group Foundation
As a responsible actor, we support impactful societal and environmental initiatives, mainly in the field of Water and Nutrition, through the Pictet Group Foundation, which provides a corporate framework for the Group’s philanthropic activities.
The Pictet Group Foundation strives to improve the lives and well-being of the most vulnerable, fostering a more resilient and sustainable future for all. It supports projects that help mitigate pressing challenges for the environment and youth.
The partners of the Pictet Group created the Prix Pictet prize to draw worldwide attention to and stimulate action on issues of sustainability through the medium of photography.
A focus on environmental themes
To date, there have been nine cycles of the award, each of which has highlighted a particular facet of sustainability, beginning with Water, followed by Earth, Growth, Power, Consumption, Disorder, Space, Hope, and Fire.
About the photographs on this page
On 20 April 2010, BP’s Deepwater Horizon drilling rig exploded in the Gulf of Mexico, killing eleven crew-men and injuring seventeen, making it the world’s largest marine oil spill. More than 600 miles of coastline were affected and still show lingering signs of oil and dispersant. Layers of crude oil are spread thick on the ocean floor, radiating far from the wellhead site. Scientists have determined that up to 75 per cent of the oil from BP’s disaster remains in the Gulf environment.
Daniel Beltrá was born in 1964 in Madrid, Spain. His passion for conservation is evident in images of our environment that are evocatively poignant. In 2011 he received the Wildlife Photographer of the Year Award for his work on the Gulf Oil Spill. His images published on this page were shortlisted for the fourth cycle of the Prix Pictet Power in 2012.