Approach & Reporting Objectives & Achievements
Objectives & Achievements
Overview of our objectives in the areas of banking, society and the environment, in our role as an employer and in the dialogue with all our stakeholders.
- Continue to execute the legal entity program with the start of operations of the new Swiss legal entity Credit Suisse (Schweiz) AG expected in the second half of 2016, subject to final approvals from the relevant authorities, especially FINMA. At the same time, ensure that clients of the Swiss legal entity can access the high-quality services, product offering and comprehensive expertise of our global bank. In the US, we intend to establish the Intermediate Holding Company (IHC) by the July 2016 deadline.
- Continue to right-size our investment banking businesses to optimize their profitability and capital usage, reduce volatility of earnings and support the needs of our wealth management clients. This includes rebalancing our activities towards advisory and equity underwriting and towards investment grade corporates in our Investment Banking & Capital Markets division and enhancing capital efficiency in our Global Markets division.
- Further develop our compliance risk and controls governance, including defined roles and responsibilities within a clear framework, as well as providing transparency on the level of effectiveness and efficiency of the controls delivered.
- Continue to actively engage in dialogue with regulators to strengthen our relationships and shape the regulatory agenda.
- Enhance sustainability risk management by expanding training and developing additional guidance tools for use by the front office.
- Develop a suitable approach to monitor portfolio-level sustainability risks for certain sectors.
Objectives & Achievements 2015
|Pursue systematic efforts to implement “Too Big to Fail” regulations that apply to Credit Suisse through 2015.
||We made further progress in the execution of the program to evolve the Group’s legal entity structure in order to meet emerging and future regulatory requirements. In particular, in April 2015 we incorporated a new Swiss legal entity, Credit Suisse (Schweiz) AG, a wholly owned subsidiary of Credit Suisse AG and registered it in the Commercial Register of the Canton of Zurich. We have applied for a banking license and expect that this entity, which will largely include the business of the Swiss Universal Bank division, will become operational in the second half of 2016, pending regulatory approvals, especially from FINMA. In addition to completing a capital increase, we issued USD 15 billion of senior unsecured bail-in instruments in 2015, which we expect to be eligible for future capital treatment under total loss-absorbing capacity (TLAC) rules proposed by the Financial Stability Board to facilitate a single point of entry bail-in resolution strategy.
|Continue to actively shape current and new regulatory projects in 2015 at a national and international level.||Credit Suisse strives to ensure the prompt and effective implementation of and compliance with legal and regulatory requirements and international standards. As part of our forward-looking approach, we analyze regulatory developments and assess their implications for our banking business, and we play an active role in the definition of new regulations. In this context, we worked closely with regulators and participated in working groups and consultations at an international level (e.g. FSB TLAC and FRTB, standardized approach for credit risk, development of an inclusive regulatory equivalence framework) and at a national level (e.g. “Too Big to Fail”, automatic exchange of information in tax matters, and the Swiss Federal Financial Services Act and Financial Institutions Act [FFSA/FinIA]) once again in 2015.|
|Continue to raise awareness about human rights and broader sustainability risk issues relating to potential business transactions.||In order to further embed the expertise required to deal with environmental and human rights risks within the bank, we trained a total of 1,066 employees in sustainability management.|
|Make updates and refinements to Credit Suisse’s guidance on how to manage environmental and social risks in power sector finance.||In 2015, we drafted new guidelines on managing environmental and social risks in connection with financing in the power generation sector, focusing on coal, hydro and nuclear power generation. We also updated our sector policies on controversial weapons and on oil and gas.|
|Develop further solutions and new products in the area of responsible investment, such as social entrepreneurship and higher education. Expand into new impact investment themes.
||In 2015, we launched our second Higher Education Note, which is expected to allow more than 1,000 underprivileged students to access best-in-class higher education. In Asia, the Credit Suisse Asia Impact Investment Fund allows Ultra High Net Worth clients to invest in rapidly growing small and medium-sized enterprises, and in Switzerland, we launched the Credit Suisse (CH) Sustainable International Bond Fund and the Credit Suisse (LUX) Sustainable Bond Fund. We also developed new index products in conjunction with Finreon and RobecoSAM.
|Launch of a European real estate sustainability fund.
||Credit Suisse Real Estate Investment Management launched the CS (Lux) European Climate Value Property Fund on July 31, 2015, one of the first climate-neutral real estate funds in the industry. The fund aims to improve the energy efficiency and to reduce the carbon footprint of its portfolio through selected refurbishments, offsetting remaining carbon emissions through compensation certificates.
- Continue to engage in a dialogue with political representatives and regulators, and actively participate in industry associations and working groups.
- Make a meaningful contribution to inclusive growth and global initiatives, such as the UN Sustainable Development Goals (SDGs), through our role as a financial intermediary, employer and client and through our combined Corporate Citizenship programs and initiatives as well as the collaboration with our business – continuing to leverage the skills of our employees through engagement opportunities.
Objectives & Achievements 2015
|Active participation in the further development of Swiss financial market regulation – particularly the measures to implement the recommendations of the Brunetti II group of experts for the further development of financial market strategy.||Credit Suisse was actively involved in formulating amendments to the “Too Big to Fail” regime and contributed both its expertise and practical experience to the discussion. We also liaised closely with the Swiss federal authorities and other stakeholders to support the implementation of measures in further areas such as depositor protection.
|Ensure successful implementation of the new cycles of the Global Education Initiative, primarily providing financial education for girls, and the Microfinance Capacity Building Initiative, offering targeted financial services that more specifically address the needs of microfinance clients, helping our partners to expand their impact.
||In the second year of the realigned Global Education Initiative, we further intensified our cooperation with our partners Plan International and Aflatoun, taking into account country-specific differences in the financial education of girls and continuously improving programs to promote financial literacy. In addition, all programs under the newly launched Microfinance Capacity Building Initiative have completed their first year – with financial support and the exchange of specialist know-how through employee engagement.
|Contribute to the strengthening of Credit Suisse’s corporate culture and make a broader social contribution by offering employees volunteering opportunities where they can use their expertise to help build capacity at our partner organizations. This allows our employees to develop their own personal and professional skills while raising their awareness for social and economic challenges in other sectors of society.
||In 2015, more than 20,300 employees volunteered over 217,600 hours of their time to support our partners. Employees thus had a positive social impact and gained a deeper understanding of social issues affecting the communities they live and work in. Skills-based volunteering assignments such as the Global Citizens Program and Virtual Volunteering are also particularly important in developing our employees professionally and personally in a very different environment by supporting our partners.
- Acquire, develop and retain employees to optimally support our business.
- Support the implementation and the preparation of the partial initial public offering (IPO1) of Credit Suisse (Schweiz) AG.
- Ensure a sound liaison with organizations that represent employee interests and the Credit Suisse Staff Council in Switzerland on employment terms and conditions.
Objectives & Achievements 2015
|Continue to use compensation programs that focus on aligning the long-term interests of employees with the interests of shareholders and our obligations to regulators, e.g. by deferring a significant proportion of discretionary variable incentive compensation and by using instruments that are subject to malus or clawback provisions based on performance and conduct criteria.
||In 2015, we continued to deliver compensation in line with the philosophy of aligning the interests of employees and shareholders by taking account of the performance of the bank and the need to deliver market-competitive levels of compensation. Both share awards and Contingent Capital Awards (CCAs) were the predominant form of deferred compensation instruments awarded in respect of the performance year 2015, and thus we continued to address shareholders’ concerns regarding the dilution impact of share awards while also offering employees attractive diversification. At the 2015 Annual General Meeting (AGM), we implemented binding votes on compensation for the Board of Directors and the Executive Board and submitted the compensation report for a consultative vote by shareholders.
|Roll out the refreshed competency model which forms part of our performance management system so that it reflects our set of Business Conduct Behaviors; define the basis to assess competencies, development needs, appropriate awareness and management of all types of risk in the actions and personal conduct that each of our employees exhibits in daily interactions with clients and colleagues.
||A refreshed competency model was rolled out in 2015 that takes account of the Business Conduct Behaviors. The competency model forms the basis for the future assessment of the actions and personal conduct of our employees in their daily interactions with clients and colleagues with a focus on performance, development needs, and appropriate awareness and management of all types of risk.
 Any such IPO would involve the sale of a minority stake and would be subject to, among other things, all necessary approvals and would be intended to generate/raise additional capital for Credit Suisse AG or Credit Suisse (Schweiz) AG.
- Further strengthen the ISO14001-certified global environmental management system (EMS) through successful completion of the 2016 control audit and adjustment of the EMS to new processes and responsibilities, including preparation for the new ISO standard, to be implemented as of 2018.
- Revision of the sustainability strategy for operational processes, including development of longer-term operational ecology targets for environmental aspects.
- Develop a new conservation finance product to further strengthen our impact investment offering.
Objectives & Achievements 2015
|Ensure successful ISO 14001 recertification on a global basis and adapt our environmental management system to the new processes and responsibilities by defining appropriate measures based on our new facility management contracts in all of our regions.||We successfully passed the ISO 14001 recertification process under the direction of the certification company SGS in 2015 without a single corrective measure. We were able to further reduce our ecological footprint compared to 2014 by 2.3% to 240,300 tons of CO2 equivalents through the ongoing optimization of energy efficiency in our building portfolio, in the IT infrastructure and through targeted investments. We made further improvements to our environmental performance through the use of electricity from renewable energy sources, which currently accounts for 57% of our global electricity consumption, and through other operational measures. We also realized global greenhouse gas neutrality for the Group for the sixth year in a row.
|On an ongoing basis, explore opportunities for conservation finance engagement, research activities and product development.
||We continued our activities in the area of conservation finance in 2015 and made further progress in developing investment products that help to protect land and maritime ecosystems.