Recently, the private bank Pictet, based in Geneva, announced plans to eliminate all of its investments in companies actively associated with the production and extraction of fossil fuels, according to a press release.
The bank defines companies actively associated with the production and extraction of fossil fuels as those generating more than 25% of their revenue from activities with high carbon emissions.
At the end on December 2019 the bank had investments in fossil fuels of CHF 250 million. it is giving itself until the end of 2020 to reduce this balance to zero.
The motivation for the move is twofold. To show an example to clients and to send a signal to such companies that if they don’t change they will run into difficulty finding investors.
Renaud Planta, a senior associate at Pictet, said that they are convinced that companies in the private sector must contribute to a transition to a low carbon future and that the bank’s investment decisions allow them to move things in this direction.