## Julius Baer and Cathay Pacific Join Forces to Promote Sustainable Aviation Fuel in Asia
In a significant move towards a greener future for air travel in Asia, Julius Baer, a leading global wealth management group, has announced a partnership with Cathay Pacific, a prominent Hong Kong-based airline, to support the use of Sustainable Aviation Fuel (SAF). This marks Julius Baer’s first SAF partnership outside of Europe, following collaborations with Swiss International Airlines (SWISS) and Lufthansa Group, demonstrating the bank’s growing commitment to sustainability across the globe.
The partnership reflects Julius Baer’s expanding sustainability efforts, particularly in the fast-growing Asian market, and underscores the importance of SAF as a key element in reducing aviation-related emissions. Sustainable Aviation Fuel (SAF), produced from biogenic waste such as used cooking oil and animal fat waste, produces up to 80% fewer lifecycle carbon emissions compared to conventional jet fuel. As the aviation industry strives for a more sustainable future, SAF is considered one of the most promising solutions to reduce its carbon footprint.
While challenges remain, including limited production volumes, partnerships like the one between Julius Baer and Cathay Pacific highlight how financial institutions and airlines can work collaboratively to drive the demand and adoption of greener fuels.
“This partnership with Cathay Pacific underscores the importance of Asia to Julius Baer and reinforces our commitment to sustainability and reducing the environmental impact of our air travel,” said David Shick, Market Head Greater China Hong Kong and Branch Manager Hong Kong at Julius Baer. Cathay Pacific, a pioneer in the adoption of SAF in Asia, is thrilled to partner with Julius Baer as the bank becomes its first Swiss-headquartered partner in the Corporate SAF Programme. This collaboration aligns with both companies’ shared goals of reducing carbon emissions and promoting sustainable business travel.
Grace Cheung, General Manager of Sustainability at Cathay Pacific, expressed the airline’s enthusiasm about the partnership: “Together with like-minded partners such as Julius Baer, we are paving the way for a greener aviation industry and reinforcing the importance of collective action across various sectors to act ‘Greener Together’ to achieve long-term climate goals.”
The partnership is a part of a broader strategy by both companies to meet their sustainability targets. Julius Baer has pledged to achieve net-zero emissions in its operations by 2030 and aims to reduce air travel by 30% by 2025 compared to 2019 levels. Integrating SAF into its travel operations helps reduce emissions from one of its largest contributors to its carbon footprint—business air travel.
SAF is crucial in helping the aviation industry transition towards net-zero emissions. Unlike traditional fossil fuels, SAF is derived from renewable sources and can significantly reduce the overall carbon intensity of air travel by up to 80%. However, the current production capacity of SAF remains limited, posing a challenge to scaling up its adoption. By joining Cathay Pacific’s Corporate SAF Programme, Julius Baer is not only supporting the use of SAF for its own travel needs but is also contributing to the industry-wide push for greater investment in SAF production.
This partnership, combined with Julius Baer’s prior collaborations with SWISS and Lufthansa, showcases the bank’s proactive approach to working with global airlines to promote greener air travel solutions. “We are thrilled to have obtained IATA’s GoGlobal Accreditation as it affirms our capability to comply with multi-country financial criteria. As we continue to innovate and collaborate with IATA, we aim to enhance connectivity and convenience, providing an exceptional travel experience for everyone,” said Yvonne Suter, Head of Sustainability at Julius Baer.
Julius Baer’s partnership with Cathay Pacific builds upon the bank’s existing decarbonization initiatives, which form part of its broader climate strategy. The bank has set ambitious targets to reach net-zero emissions across its operations by 2030. To achieve these goals, the company is working to reduce its reliance on traditional air travel and promote more sustainable practices, including the introduction of an internal carbon price on air travel. The proceeds from this initiative are directed towards purchasing SAF and funding restoration projects, including mangrove and tropical forest restoration efforts in Indonesia and Panama.
Julius Baer’s commitment to sustainability is further evidenced by its alignment with the Science Based Targets initiative (SBTi). In 2023, the bank became one of the first Swiss financial institutions to have its near-term climate targets validated by SBTi, ensuring that its efforts are consistent with the latest climate science and the goals of the Paris Agreement to limit global warming to 1.5°C above pre-industrial levels.
The aviation industry plays a crucial role in addressing global climate change, and partnerships like the one between Julius Baer and Cathay Pacific demonstrate the importance of cross-sector collaboration in achieving sustainability goals. By working together, financial institutions and airlines can accelerate the adoption of sustainable technologies, including SAF, and help drive the industry towards a greener future.
Julius Baer’s leadership in promoting sustainable practices within the aviation sector highlights the bank’s broader commitment to reducing its carbon footprint and acting as a responsible global citizen. As the world continues to grapple with the challenges of climate change, partnerships like this one provide a roadmap for how industries can work together to create a more sustainable future for all.
With initiatives like these, both Julius Baer and Cathay Pacific are showing that collective action across sectors is key to advancing the use of sustainable technologies and achieving long-term climate goals. As air travel remains essential for global business, finding greener alternatives like SAF is critical in reducing the industry’s environmental impact and creating a sustainable pathway for future growth.
