has partnered with Cathay Pacific to promote the use of sustainable aviation fuel (SAF), the first time the Swiss private bank has forged such a pact outside Europe.
In 2023, Julius Baer collaborated with Swiss International Airlines and Lufthansa Group.
Such a move highlights how private banks – whose staff have often flown to and from major financial centres to see clients – are keen to burnish their ESG credentials. Working practices have changed in recent years, however, in part because of the pandemic, and rising fuel costs.
SAF, which is made from biogenic waste such as used cooking oil and animal fat waste, emits roughly 80 per cent less lifecycle CO2 emissions compared with conventional jet fuel. Although SAF faces certain limitations such as production volumes, it is an important lever for the aviation industry to reduce its emissions, Julius Baer said in a statement.
“By supporting the use of SAF, we are taking an important step as a responsible wealth manager in reducing our carbon footprint and contributing to the aviation industry’s transition towards net zero,” Yvonne Suter, (pictured) head of sustainability at Julius Baer, said.
Yvonne Suter
“Together with like-minded partners such as Julius Baer, we are paving the way for a greener aviation industry and reinforcing the importance of collective action across various sectors to act ‘Greener Together’ to achieve long-term climate goals,” Grace Cheung, general manager sustainability at Cathay Pacific, said.
Julius Baer said it is has committed to achieving net-zero emissions in its operations by 2030 and to cut air travel by 30 per cent by 2025 compared with 2019.
In 2022, the Zurich-listed bank introduced an internal carbon price on air travel. The proceeds from this initiative are used to buy SAF from global airline partners, including Cathay Pacific, SWISS, and the Lufthansa Group. It also funds two projects in Indonesia and Panama to restore mangroves and tropical forests respectively.
In 2023, the bank said it became one of the first Swiss financial institutions to have its near-term climate targets validated by the Science Based Targets initiative (SBTi).
This news service has interviewed Airbus Corporate Jets, part of European aviation conglomerate , about issues such as sustainability in jet engines and aircraft design. (See more here and here.)