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Objectives & Achievements 2019
Continue our efforts to drive a robust compliance culture throughout the bank through targeted measures that take account of the changing operating environment.
Through our Conduct and Financial Crime Control Committee, we continued to actively monitor and assess financial crime compliance risks and drive initiatives focused on vigilance within the context of combating financial crime.
We continued to focus on developing and enhancing our data and technology platforms that contribute to mitigating employee and client risk.
Take steps to address the implications of the UK’s decision to leave the EU in order to minimize disruption to the business and to clients.
In order to provide continued services to EU clients and access to EU markets, we are leveraging our existing legal entity network and, where necessary, transferring our EU clients and EU venue-facing broker-dealer business to Group entities, including those incorporated in Spain, Credit Suisse Securities Sociedad de Valores S.A., and Germany, Credit Suisse (Deutschland) AG.
Focus on generating capital in order to return it to shareholders; our long-term objective is to distribute around 50% of profits to shareholders for 2019 and 2020.
We continued to generate capital and reported an increased common equity tier 1 (CET1) ratio of 12.7% at end-2019. We distributed CHF 1.7 billion of capital to our shareholders last year – including through the successful completion of our CHF 1 billion share buyback program for 2019. We commenced a similar program for 2020 and, prior to the spread of COVID-19, had expected to buy back at least CHF 1 billion of shares this year, subject to market and economic conditions. Having completed the initial share purchases under the 2020 program earlier this year, the Board of Directors will review its expectation for the balance of the program when there is greater certainty over the economic, financial and market outlook.
Develop methodologies and tools for the alignment of credit portfolios with the Paris Climate Agreement, working with other banks.
In 2019, we joined the Paris Agreement Capital Transition Assessment (PACTA) pilot project, recognizing that financial flows also need to be brought in line with the objectives set out in the Paris Agreement. Within that project, Credit Suisse is working with other international banks to develop and test methodologies for measuring the alignment of corporate lending portfolios with the Paris Agreement. We are also participating in Phase II of the Task Force on Climate-related Financial Disclosures (TCFD) Banking pilot under the United Nations Environment Programme, wherein a systematic, repeatable, and comprehensive approach to assess transition and physical risks in accordance with the TCFD recommendations is being developed.
Launch pilot phase to define internal climate risk terminology and measure certain sector exposures against defined climate scenarios.
We have identified several key risks and opportunities, originating from either the physical or transition effects of climate change.
Climate-related risks are embedded in our Group-wide risk taxonomy. They could manifest themselves through existing risk types such as credit risk, market risk, non-financial risk, business risk or reputational risk.
The Group has enhanced its internal reports and is developing further climate risk-related scenario analysis in addition to the 2°C and 4°C scenarios introduced in 2018.
Review and further develop Credit Suisse’s sector policies and guidelines for sensitive industries.
In 2019, we made the following updates to our sector policies and guidelines for sensitive industries:
Update of the Power Sector Guidelines to exclude any form of financing specifically related to the development of new coal-fired power plants.
Inclusion of the concept of Free, Prior and Informed Consent (FPIC) in our policies on oil and gas, mining as well as forestry and agribusiness in order to better respect the rights of indigenous peoples that may be affected by project-related transactions.
Continue to engage with peers and industry groups for the development of environmental and social (E&S) due diligence approaches and the improvement of E&S disclosure.
We continued our active participation in industry initiatives such as the Equator Principles and the Thun Group.
Credit Suisse played an active role in the update process of the Equator Principles and in the ongoing management of the Equator Principles Association.
At the 2019 Thun Group meeting, Credit Suisse discussed topics such as the OECD Responsible Business Conduct guidelines, effective human rights due diligence and performance measurement and measures to combat modern slavery and human trafficking with representatives from banks, governments, academia, civil society and other actors.
We served as a member of the multi-stakeholder Advisory Group established by the OECD, which aims to develop best practice guidance for human rights and environmental due diligence based on the provisions of the OECD Guidelines for Multinational Enterprises. In 2018 and 2019, the advisory group worked to develop the OECD Due Diligence Guidance for Responsible Corporate Lending and Securities Underwriting, published in October 2019.
In Singapore, we held our ninth annual roundtable on environmental and social risk management practices in investment banking, with participants from 12 different banks.