Swiss private bank Julius Baer and Hong Kong-based airline Cathay Pacific have teamed up to promote the use of sustainable aviation fuel (SAF) as part of the airline’s corporate SAF programme.

This is the bank’s first SAF partnership outside Europe, following its collaboration with Swiss International Airlines (SWISS) and German carrier Lufthansa, launched in 2023.

The collaboration with Cathay, the bank says, marks another significant milestone in the aviation industry’s transition to a more sustainable future in Asia.

SAF is made from biogenic waste, such as used cooking oil and animal fat waste, and it emits roughly 80% less lifecycle carbon dioxide (CO2) emissions compared with conventional jet fuel. Although SAF faces certain limitations, such as production volumes, it is an important lever for the aviation industry to reduce its emissions. 

This partnership, the bank adds, builds on its existing decarbonization initiatives and contributes towards achieving its climate targets. These include its commitment to achieve net-zero emissions in its operations by 2030 and to reduce air travel by 30% by 2025 compared with 2019.

As air travel makes up a significant portion of its operational emissions, the bank aims to promote more conscious travelling; and in 2022, it introduced an internal carbon price on air travel. The proceeds from this initiative go towards purchasing SAF for global airline partners, including Cathay Pacific, SWISS and Lufthansa, as well as funding two projects in Indonesia and Panama to restore mangroves and tropical forests respectively.

The bank became one of the first Swiss financial institutions to have its near-term climate targets validated by the Science Based Targets initiative (SBTi). SBTi validation confirms that the bank’s targets are aligned with what the latest climate science deems necessary to meet the goals of the Paris agreement – limiting global warming to 1.5 degrees Celsius above pre-industrial levels.

“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,” says David Shick, the bank’s market head for Greater China and Hong Kong, and Hong Kong branch manager.

Yvonne Suter, the bank’s head of sustainability, adds: “By supporting the use of SAF, we are taking an important step as a responsible wealth manager in reducing our carbon footprint and contributing to the aviation industry’s transition towards net zero.”