Zürcher Kantonalbank (ZKB) joins the Net-Zero Banking Alliance

Zürcher Kantonalbank (ZKB) joined the Net-Zero Banking Alliance on December 12, 2022, to make its contribution to reducing greenhouse gas emissions to net zero by 2050. It is committing to interim targets for 2030 and every five years thereafter until 2050. ZKB is aware of the key role the financial sector plays in efforts to achieve sustainable development worldwide, which is why it has anchored the principles of sustainability as an integrated principle in its business operations and is constantly developing them further, according to a statement. In doing so, it says it is guided by science-based international, national and cantonal net-zero reduction paths. "By joining the Net-Zero Banking Alliance, we want to set an example: We want to make an active and impact-oriented contribution to the transition to net zero 2050 with our banking services for the economy and society," says Urs Baumann, CEO of Zürcher Kantonalbank.

Sustainability as an integral part of the ZKB business model

Zürcher Kantonalbank says it is one of the pioneers in Switzerland in the field of sustainability. Back in 1992, for example, the bank produced a product innovation for the important decarbonization of the building sector in the form of the environmental loan - a low-interest mortgage for environmentally friendly construction and renovation - which celebrates its 30th anniversary this year. This offer was supplemented in 2020 with free heating replacement advice. ZKB has also been running its own sustainability research since 1996. Building on this, it launched its first sustainable equity fund in 1998. In addition, since 2005 it has been supporting innovative solutions that drive the transition to net zero through targeted investments in start-ups and is now one of Switzerland's most important promoters in this field. In 2020, to mark the fifth anniversary of the Paris Climate Agreement, its asset management business set active investment solutions on the 2-degree reduction path by default and joined the Net-Zero Asset Managers Initiative in 2021, steadily increasing its commitment to the 1.5-degree reduction path.

ZKB aims to expand leading position in the field of sustainability

By joining the Net-Zero Banking Alliance, Zürcher Kantonalbank will further strengthen its leading position in the field of sustainability and steadily expand its range of products and services to accompany customers into a sustainable future. In addition, it will continue to support innovations needed to decarbonize the global economy and drive active dialog at the national level as an important cornerstone of its efforts for net zero by 2050.

"We are proud to join the Net Zero Banking Alliance. As a bank that has deeply embedded a commitment to the environment, the economy and society in its business activities, our commitment to the net zero target by 2050 is central," says CEO Urs Baumann. "We are pleased to be able to contribute together with like-minded banks, our customers and our employees - to international, national and cantonal net zero targets. Achieving these is both a major challenge and an opportunity for society as a whole. We will only achieve this if all players from business, science, politics and the population work closely together."

Alliance of over 120 banks

The UN-convened Net-Zero Banking Alliance brings together over 120 banks from more than 40 countries, currently accounting for around 40 percent of global bank assets under management. Among other things, members have pledged to move their operations to net zero by 2050. This ambitious commitment calls for banks to set interim targets for 2030 or earlier, following sound, science-based recommendations. The Net-Zero Banking Alliance underscores the important role banks play in supporting the global real economy's transition to net-zero greenhouse gas emissions.

Source: Zurich Cantonal Bank