Addressing climate change
We address the challenge of climate change at various levels. We take into account environmental and climate impacts in our risk management and product development. Our operations have been greenhouse gas neutral since 2010. We also engage with stakeholders to gain insights that can help us develop sustainable business practices.
The Paris Agreement to strengthen the global response to the threat of climate change entered into force in 2016. Its overarching objective is to limit the rise in the global temperature to well below 2° Celsius above pre-industrial levels. As a global financial institution, we recognize our share of responsibilities in combating climate change, and we acknowledge that financial flows also need to be brought in line with the objectives of the Paris Agreement. We believe that our role as a financial intermediary is to act as a reliable partner in the transition to a low-carbon and climate-resilient economy.
We have committed to underpin our 2050 net zero emissions goal through developing Science-Based Targets within 24 months. This will guide our ambition to achieve net zero emissions from our financing no later than 2050, with intermediate emissions goals to be defined for 2030.
We plan to work with the Science Based Target Initiative (SBTi) to ensure our target strategy is aligned with best practice and we have recently provided input on how to improve carbon offsets to the Taskforce on Voluntary Carbon Markets.
As part of our approach to align our financing with the objective of the Paris Agreement to limit global warming to 1.5° C we are also establishing technical capabilities to measure the degree of alignment of our portfolio with this objective in more exact terms. This will help us measure not just the direction of travel, but also the speed with which we are moving there.
To complement our own transition we intend to reposition our portfolio to mobilize capital towards our clients’ transitions.
Our principles and our approach to climate protection are set out in our Statement on Climate Change, which describes how we intend to address climate-related risks, provide solutions and advice in the area of sustainable finance to our clients and reduce our own environmental footprint.
Climate Risk Strategy program
Credit Suisse is committed to becoming a leader in sustainability in the financial industry, across our Wealth Management and Investment Bank franchises, to further drive a cohesive approach and to meet the evolving needs of our clients, investors, employees and society in general. In 2019, we introduced a Group-wide Climate Risk Strategy (CRS) program with a three-pronged approach, integrating our existing efforts as well as defining new measures. Our approach consists of:
Implementing the recommendations of the Task Force on Climate-related Financial Disclosures
The Credit Suisse Climate Risk Strategy program also consolidates our ongoing work to adopt the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) for the voluntary reporting on material risks and opportunities arising from climate change. Credit Suisse continued its TCFD implementation efforts in 2019, following the four TCFD categories of Governance, Strategy, Risk Management, and Metrics and Targets. In that context, we have worked to formalize climate-related governance and definitions in key policies and our risk taxonomy and to define the principles for climate risk strategy and management. We expect our TCFD adoption efforts to provide us with further guidance for the transition to a world that progressively minimizes its dependency on fossil fuels. Moreover, we are working with other banks to develop methodologies for the alignment of credit portfolios with the Paris Agreement. Credit Suisse's Annual Report 2019 provides an overview of the status of our implementation of the TCFD recommendations.
Credit Suisse participates actively in discussions on how to promote a more sustainable, climate-friendly approach to business, and we exchange knowledge with a variety of organizations and expert groups.
In 2019, Credit Suisse continued to participate in the dialogue about the development of strategies for sustainable, climate-friendly business practices. In Switzerland, for example, we have hosted the Lifefair Forum event series for a number of years. At the 2019 Lifefair events, experts from the business community, the political arena and NGOs engaged in discussions about sustainability-related topics such as smart climate action, and sustainable logistics and transportation.
Raising employee awareness of environmental issues
The need to make responsible use of natural resources is set out in our Code of Conduct. We actively inform employees about environmental issues and give them the opportunity to make a personal contribution to environmental protection.