Sustainability FAQ

The vast majority of our emissions are produced through our investments in the form of financed emissions, accounting for over 99% of our associated greenhouse gas emissions. This is why our Climate Action Plan, established in 2022, puts particular emphasis on the targets linked to our managed assets. These targets aim to ensure Pictet plays its part in limiting global warming to 1.5°C by the end of the century and validated by the Science-Based Targets initiative, a credible third party.

We set two separate targets, one on our investments and one on our operations:

• Listed equity and corporate fixed income: to increase the share of our managed assets with validated science-based targets to 40% by the end of 2025, 60% by the end of 2030 and 100% by the end of 2040. Managed assets exclude advisory, execution-only and custody businesses, as the underlying assets are not directly managed by Pictet. For our target, we measure our exposure to total single-line investments with SBTi validated 1.5° targets, as a share of actively and passively held long managed listed equities and non-securitised corporate fixed income in PAM and PWM Discretionary Portfolio Management. It also includes our corporate fixed income treasury book and equity certificates held on our balance sheet. The target excludes sovereign fixed income and advisory mandates. Third-party funds within those same asset classes are included in the 2030 and 2040 targets.
• Operations: to decrease our absolute scope 1 and 2 emissions (measured in CO2e) by 55% by the end of 2030 compared to 2019 levels. This target covers all major greenhouse gas emissions (CO2, CH4, N2O, HFC, PFC, SF6 and NF3). In line with the best available science, this is a gross greenhouse gas emissions target and Pictet does not rely on carbon credits to achieve its emissions target.

These targets will be reviewed on an ongoing basis and, at a minimum, every five years.

Pictet's targets for reducing emissions have been validated by the Science Based Targets initiative (SBTi) to ensure they are in line with climate science. Pictet aims to reduce its absolute Scope 1 and 2 emissions by 55% by 2030 from 2019 levels.

Pictet plans to reduce its emissions using a comprehensive strategy. Key aspects of their approach include:

Improving Energy Efficiency in Operations:

Efforts include transitioning offices from fossil fuel-based heating systems to more energy-efficient alternatives and enhancing building standards to reduce energy consumption.

Transitioning to Renewable Energy:

Wherever possible, Pictet purchases Energy Attribute Certificates (EACs) to ensure the electricity consumed comes from renewable sources.

Construction of Low-Carbon Buildings:

The ongoing construction of their new headquarters, Campus Pictet de Rochemont, aims to be a benchmark in energy efficiency and sustainablebuilding practices, targeting significant reductions in carbon emissions.

Reducing Commuting and Business Travel Emissions:

Encouraging sustainable commuting options and reducing air travel through policies that favor more climate-friendly travel options and use of alternative fuels.

Pictet's stance on offsetting involves a carefully structured approach focused on high-quality carbon removal and sequestration projects. Key elements include:

Transition from Emission Avoidance to Carbon Removal:

Pictet has moved away from reliance on carbon credits for emission avoidance in 2021, instead opting to finance projects that remove carbon from the atmosphere.

Focus on Scope 1 and 2 Emissions:

Pictet offsets these emissions by financing technology-based projects such as biochar production, which effectively removes carbon dioxide from the atmosphere and ensures long-term storage.

Diversified Sequestration Approach for Scope 3 Emissions:

For these emissions, Pictet employs a multi-offset strategy that includes both land-based projects like afforestation and reforestation, and ocean-based projects like blue carbon initiatives, which balance enhancing carbon sinks on land and in the ocean.

Selection of High-Quality Projects:

The projects chosen by Pictet are sourced from internationally recognized suppliers with rigorous due diligence processes to ensure efficacy and reliability.

Adaptation to Market Changes:

In response to controversies in the Voluntary Carbon Market, Pictet emphasizes purchasing carbon removal credits that are less prone to errors, maintaining confidence in continuing their offset purchases.

Overall, Pictet supports both technological and nature-based solutions to offset residual emissions while contributing to the development of innovative carbon removal methods essential for achieving their long-term goals.

Pictet doesn’t have a water policy per se, and water savings is not in the current action plan (2020-2025). However, Pictet monitors water consumption wherever we can (e.g. meters in our corporate HQ), and has installed tap aerators and double flush in restrooms.

As part of our 2025 strategy, Pictet Group is committed to strengthening the procurement process aiming to integrate environmental, social and governance criteria into product and supplier selection. Our procurement policy is factored in a framework that specifies the ESG criteria which matter to Pictet. Since June 2024 2024, Pictet has integrated a Supplier Code of Conduct in its procurement process to ensure ESG alignment.

Yes, Pictet has a responsible management policy for its office buildings. Pictet has developed a simplified score card to evaluate the performance of offices regarding energy, transport, consumption, and inclusion. This helps to make informed decision when considering an office move, as well as contributing to reducing our direct greenhouse gas emissions in 2030 by 55% compared to 2019 levels in line with our SBTi pledge.

Today, certified buildings represent 70’000 sqm out of 133’000 sqm, that is ~53%:

• HQ Geneva: BREEAM Very good
• Luxembourg BHK, OBH and Belval: BREEAM Very good
• London MoorHouse: BREEAM Very good
• Hong Kong ChaterHouse: BREEAM Platinum
• Tokyo Marunouchi: DBJ Platinum 5 stars
• New York: LEED Gold

At Pictet, we offer a broad spectrum of investment options under the umbrella of Responsible Investing. We consider Environmental, Social and Governance (ESG) integration, where ESG factors are included in traditional financial analysis, as a minimum standard across our products. So for a product to be considered as responsible, it needs to go a step further and at least promote environmental or social characteristics and/or provide impact, where meeting a goal with social benefits is prioritised ahead of financial returns.

As an active investor, we aim to exercise our voting right in the best interests of our clients. We engage with companies in which we invest to influence company management to pursue sustainable business practices. This can happen directly or in collaboration with others. Our objective is to influence a company’s ESG long-term performance and to protect or enhance the value of our clients’ investments.

Pictet adheres to the UN Principles for Responsible Investment and to the UN Principles for Responsible Banking, and partners with organisations that promote sustainability, including Swiss Sustainable Finance, the Swiss Climate Foundation, and the International Energy Agency.