Gen.T+
The well-being of the planet is in the hands of the next generation. Here’s how Credit Suisse is embracing both
Credit Suisse takes sustainability seriously—and not just because it’s the right thing to do. Going green is a business imperative as much as it’s an ethical responsibility, according to Benjamin Cavalli, the bank’s head of wealth management Asia Pacific and APAC sustainability leader.
“As a global financial institution, Credit Suisse recognises the important role that we play in sustainability,” he says. “It is our desire to harness the power of finance to help address pressing social and environmental issues and create a future that is fair, inclusive and sustainable for all.
“We see it very rationally. In our view, sustainability has a responsibility perspective and a risk perspective but also a business opportunity perspective: it is key that we seek ways to transition to more sustainable business models that address the risks but also leverage the potential of this economic and market transformation.”
The bank has committed to achieving net zero across its operations, supply chain and financing activities by 2050, with interim science-based goals for 2030. It will also provide at least CHF300 billion (US$312 billion) in sustainable finance by 2030, underpinned by its Sustainable Investment Framework and Sustainable Activities Framework, which ensure that only appropriate transactions qualify towards that goal.
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The work has already started. Credit Suisse was a joint lead manager for the issuance of South Korea’s first green bonds, which were used to refinance rail projects; while in March 2022, it was the sole bond structurer for the World Bank’s Wildlife Conservation Bond, aka the Rhino Bond, which aims to help grow the black rhinoceros population in South Africa. “This innovative outcome-driven conservation funding model not only benefits the wider ecosystem but produces a blueprint to use capital markets for impactful conservation projects,” says Cavalli.
There are also huge opportunities in impact investing, he adds. “Our global research found that over 80 percent of ESG financial assets are located in developed countries. In contrast, 70 percent of the spending needs related to the UN Sustainable Development Goals and more than 80 percent of the global population are in developing countries, primarily in Asia. This points to a huge opportunity for ESG leaders in the region. Credit Suisse was the first to launch an institutional-grade impact investing private equity fund dedicated to Asia, in 2015.”
The growth in ESG-related investing, he says, is being driven primarily by the younger generation, who view it not as an add-on to their core business activities, but as an integral part of them.
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[The] generational shift taking place is changing the order of managing wealth and putting purpose first