Talacker 41, 8001 Zurich, , Phone: +41 43 443 72 00, Fax: +41 43 497 22 70, [email protected], www.amcham.ch, December 2020 / No. 401

We all deserve a break! Dear members and friends A wild rodeo year comes to an end. What started with such high expectations for a perfect 20/20 year with barely a cloud on the horizon, turned into what diplomats would term “an interesting year”. The largest pandemic in the last 100 years with major upheavals in most economic sectors, a truly memorable US Presidential election, environmental catastrophes on all continents and much more. Economists have joined meteorologists in their capability to forecast the future! Still, not everything was bad this year. Most economies have proven quite resilient. Massive state interventions and especially Corporate Responsibility Initiative: The beginning of a necessary innovative and entrepreneurial energy by the private sector kept key supply chains alive process and well. And for most parts, health systems On November 29, Swiss voters rejected two initiatives detrimental to the Business were able to cope with disaster. In spite of Location Switzerland and internationally active companies based here. The Initiative many sceptics, transition from the Trump Against Weapons Export found a strong 57% “NO”, strengthening Switzerland’s in- administration to the Biden administration dustrial base and ability for self-defense. The Corporate Responsibility Initiative (CRI), seems on a good track and Inauguration on however, was a different story. January 20 will go on as planned. Business between Switzerland and the USA has also CRI was directionally right and appealed to many people who wanted to do good. done quite well, with the US being the largest Unfortunately, many people only saw the correct direction, but not the many and mas- export market for Swiss goods in the first 9 sive negatives of this wrong tool to achieve a justified goal. In a nail-biter, the initiative months, ahead of for the first time got a majority in the popular vote and was only defeated thanks to the cantonal votes in history. The two Swiss initiatives detrimen- (“Ständemehr”). Only 8.5 cantons voted “Yes” to the CRI instead of the necessary 12 tal to the Business Location Switzerland, (half vote depict the half-cantons). A mere 5953 votes in four cantons made the dif- the Swiss economy and the solidity of the ference. Way too close for comfort! Swiss Amcham would like to thank all members Swiss system were both rejected. However, and friends who took action and talked to their employees, families and friends. Your the results of the Corporate Responsibility effort was critical for success! Initiative was much too close for comfort (see The result is a relief and allows to implement the indirect counter-proposal which is text on the right)! technically convincing: It defines broad reporting and transparency obligations into The New Year will bring many challenges, law and combines progressive instruments against child labor and financing conflict familiar ones, and a few new ones: With the minerals. It is in tune with other leading countries’ legislation and will make Switzer- USA, Switzerland needs a revised double land one of the leading countries with regards to corporate responsibility. It will give taxation agreement with a 0% withholding tax internationally active companies a sufficient degree of legal certainty. and it still lacks a Free Trade Agreement. With the EU, all issues around data equivalency, But let’s not fool ourselves. This is not the end of the story. The initiators of the CRI, multilateral recognition agreements, partici- some 120 NGOs, broad parts of the Church and many progressive political parties, pation in the education program Erasmus will try again. We cannot go back to “courant normal” and wait for the next initiative. and the research program Horizon, energy We have to start a continuous campaign explaining two key elements: and health agreements are all dependent on - Swiss companies abroad overwhelmingly create positive effects where they operate. normalizing the Swiss-EU relationship, be it They create good and much needed jobs, support education and local knowledge through the Institutional Framework Agree- building, help with key infrastructure and uphold human and environmental laws. These ment or in a different way. Switzerland will be challenged to agree on what the future of companies are widely welcomed wherever they operate. We need to give specific the Swiss-EU relationship should look like. examples and personal reports from local people. But first and foremost: Yes, we all deserve a - Internationally active companies create enormous value in Switzerland. They provide break! I wish you a quiet and relaxing Holi- many high-value jobs (26% of the total), pay 47% of federal corporate taxes, contribute day break in the (small) circle of the family 36% of GDP, massively further the development of the Swiss knowledge economy and I look forward to seeing you again fully and are a major contributor to the Swiss retirement system. energized in the New Year. These truths are not self-evident. They must be factually explained and repeated Martin Naville over and over again. Swiss Amcham will continue to do its part. We encourage our CEO members and friends to join the effort.

Swiss Amcham’s favorite carrier

★★★★★★ ★★★★★ ★★★★★★ ★★★★★ ★★★★★★ ★★★★★ ★★★★★★ ★★★★★ ★★★★★★ Business News from the United States

U.S. still faces possible default wave could slow the pace of the recovery, risking Racial gap in U.S. jobless rate and asset declines according to Fed lasting damage to the women and minority narrows in October The United States may still face a wave workers most affected by job losses, Bos- The gap in unemployment rates between of debt defaults and significant declines in ton Federal Reserve Bank President Eric Blacks and Whites in the United States asset prices because of the coronavirus Rosengren said in mid-November. Since narrowed in October for a second straight pandemic and recession, the Fed warned women and Black and Hispanic workers month, a sign the improving labor market in early November. In its recent biannual are overrespresented in those industries, is reaching more Americans even as Financial Stability Report, the Fed said that they are at greater risk of losing their jobs covid-19 cases and deaths continue to as many households continue to struggle, or dropping out of the labor force when rise. The pandemic ended a record-long loan defaults may rise, leading to material a company fails. He stated that the U.S. U.S. economic expansion that had begun losses for lenders. Business debt has risen central bank will need to balance supporting delivering benefits to Blacks and other sharply as businesses increased borrowing the economy during the ongoing pandemic groups left behind in the earlier states of to weather the period of weak earnings. The with protecting financial stability. the recovery from the previous recession. general decline in revenues associated with In August 2019, the Black unemployment the severe reduction in economic activity Europe charges Amazon with using rate was a record-low 5.4% and the gap with has weakened the ability of businesses dominance and data to squeeze rivals the white rate was at its narrowest ever at to service these obligations. Asset prices The European Union charged Amazon 2 percentage points. The racial gap in the remain vulnerable to significant decline with damaging retail competition, alleging U.S. jobless rates has come under closer should investor risk sentiment fall or the that the U.S. company uses its size, power scrutiny in the months since the pandemic economic recovery weaken. and data to gain an unfair advantage over struck and exacerbated long-standing racial smaller merchants that sell on its online economic inequality. Uneven U.S. job market recovery platform. The move by competition chief points to need for focused fiscal aid Margarethe Vestager, the latest European United Airlines returns to New York’s The big improvement in the U.S. unemploy- salvo against U.S. tech giants, comes at a JFK after five-year absence ment rate in October suggested that the time when the covid-19 pandemic has ampli- United Airlines is returning to New York’s economy needs less a broad pandemic relief fied Amazon’s role in the global economy, John F. Kennedy Airport on February 1, 2021, package than targeted support for hard-hit with online sales soaring in lockdowns. ending a five-year absence. The U.S. carrier sectors, even as the unprecendented surge The European Commission has been is re-launching service with daily flights to in Covid-19 cases raises questions about investigating Amazon’s position as both Los Angeles and San Francisco from JFK. Air the durability of the job market rebound. a marektplace for merchants and a rival travel demand has been severely bruised by Overall, more people returned to work in seller, while the firm also faces scrutiny in the the covid-19 crisis and is expected to remain October and the share of people either United States over its alleged mistreatment depressed until there is a widely distributed employed or looking for work increased, of sellers, as well as its dual role. The EU treatment of vaccines, forcing airlines to data from the U.S. Labor Department regulator looked into how Amazon collects drastically scale back their flight schedules. showed in early November. But the report data on competitors that sell on its platform, U.S. travel to the New York City area, where also showed new hiring is slowing, long- offering everything from electronics and United currently operates out of La Guardia term unemployment is on the rise and toys to food and kitchenware. It says that and Newark Liberty International, has been employment in some struggling industries Amazon uses that sensitive information, particularly hard hit in the pandemic. is still far below pre-pandemic levels. The which shows what is proving popular or sharpening picture of an uneven recovery not, to better target its own products. A EU wants new start in the labor market opens a new chapter in U.S. Congressional antitrust report earlier in trade policy with the U.S. what is already a political battle over how this year into the alleged abuse of market power by Amazon also raised the concerns The EU and its member states want to reset much more stimulus is needed, and for what trade relations with the next U.S. administra- parts of the economy. highlighted by the EU and is likely to influ- ence the case U.S. regulators bring against tion following Democrat Joe Biden’s victory, the company. The EU charges are the according to German Economy Minister Importance of preventing Peter Altmaier. After a virtual meeting of buildup of financial imbalances latest example of how watchdogs around the world, led by Europe, are grappling trade ministers from EU member states, The debt some service-sector firms built up with the challenges of regulating Big Tech, Altmaier has been quoted that they will try before the coronavirus pandemic makes companies that have achieved dominance to get a new start in the trade policy between the U.S. economy more vulnerable and in their fields and vast troves of user data. the United States and all EU member states.

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Pictet North America Advisors Geneva and Zurich +41 22 307 9000 www.pictetadvisors.com

2 ★★★★★★ ★★★★★ ★★★★★★ ★★★★★ ★★★★★★ ★★★★★ ★★★★★★ ★★★★★ ★★★★★★ Business News from Switzerland

Swiss tourism sector to suffer little or no influence of the coronavirus pan- the making. The Circle is co-owned by the until 2023-2024 due to Covid-19 demic on corporate strategies so far. 51% airport operators and Swiss Life. Switzerland’s hard-hit tourism sector is set to of the companies believe that liquidity and continue to suffer due to the new coronavirus capital management are becoming more Prospects are grim for another three to four years, according important and 27% said the pandemic was for Swiss watch industry to Erik Jacob of the State Secretariat for strengthening the integration of corporate A survey of the Swiss watch industry by Economic Affairs (Seco). In an interview in social responsibility into corporate strategy. consultants Deloitte has found wide ranging late October he described a historic decline and deep pessimism. The sector has been in overnight stays in Switzerland in 2020 Swiss organizers plan beset by the same pandemic woes as other and huge differences in tourism between for fanless World Cup ski season industries. Watch exports, which had risen cities and mountain regions. Urban tourism In mid-October, the Swiss ski federation from CHF 9 billion to CHF 21 billion over the is suffering most with a drop in sales of up said that it was working with local organizers last 20 years, have been drastically reduced to 60%. But certain tourist regions, such to have competitions without the public as in 2020. Only China recorded positive figures as cantons Valais, Ticino and Grisons, coronavirus cases were peaking ahead of and is poised to take over from Hong Kong as benefited from numerous domestic guests the winter sports season. Crowds of about the single most important export market. The in summer to ease the pain. In October, the 30’000 typically attend Switzerland’s sig- worst hit segment is mass produced, lower Federal Statistical Office reported a 15.6% nature races in January - the men’s races cost watches. The report’s authors believe increase in the number of overnight stays in Adelboden and Wengen. The upcoming that the high-end segment will be most likely by domestic visitors in August, compared season also includes women’s races in to lead a recovery. But executives fear that to last year. This mitigated the persistent St. Moritz and Crans-Montana, the World the industry will be hit by more problems than desertion of guests from abroad (down Cup finals week for men and women in the pandemic. Even when tourism resumes in 60.3%). Tourism officials are meanwhile Lenzerheide, and a ski jumping event in large numbers, many countries will be reeling anxiously observing the upcoming winter Engelberg. Swiss-Ski said no grandstands from the economic aftershock of Covid-19. season, which typically brings in around would be built at those venues, nor fan Geopolitical tensions, such as Brexit or trade CHF 2 billion a year. villages at the races and in resort cen- disputes between the U.S. and China, could ters. Some invited guests could attend in also hinder recovery. Shareholders call for new priorities restricted zones separated from athletes, for manager salaries coaches and officials. Swiss bacon, ham and According to a corporate government study cherry liqueur cake get EU protection by Zurich-based consultants SWIPRA, Zurich airport opens Valais raw ham and bacon, as well as Zug- investors consider compensation systems flagship commercial project to public style Kirsch cake, will be protected from not to be sufficiently aligned with social and In early November, Zurich airport has imitation in the European Union. These three environmental priorities and judge adjust- opened its CHF 1.2 billion conferencing, Swiss regional specialities will be protected ments to bonus payments due to Covid-19 leisure and retail complex to the public in the EU by an agreement that entered into highly controversial. Two-thirds of Swiss - right in the middle of the coronavirus force on November 1. In return, Switzerland shareholders feel that environmental or pandemic that has reduced air travel will protect 77 additional traditional products social goals, such as equal pay, are currently massively. “The Circle” project, designed from the EU. The delicacies, which already given too little consideration in the assess- by Japanese architect Riken Yamamoto, enjoy Protected Geographical Indication ment of managers’ salaries. Nearly half of contains two hotels, a medical center, a (PGI) status in Switzerland, will now also be them also say that financial goals continue large conferencing center, office space, safe against imitation and fraudulent use in to be given too much weight in existing restaurants, an area for retailers to show the EU. Since December 1, 2011, Bern and remuneration systems. The shareholders off products and engage with customers, Brussels have agreed to mutually recognise were also asked for this study, whether the plus leisure facilities. In the first six months products with Protected Designation of original targets for bonuses for 2020 should of this year, passenger numbers fell 64.3% Origin (PDO) and Protected Geographical be kept, given the Covid-19 crisis. Some with little prospect of business returning to Indication (PGI) status. Dry-cured beef 44% of non-Swiss shareholders think the normal until 2024. But this has not stopped from eastern Switzerland (Bündnerfleisch) original targets should be maintained; only the airport from opening the doors to the and the circular Monk’s head cheese (Tête 17% of Swiss shareholders share this view. public for its 200’000 square meter flag- de Moine) from western Switzerland are The majority of the companies (60%) see ship project, that has been many years in already part of this agreement.

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3 Chamber Events: Best of 2020

Toto Wolff (Mercedes-AMG Petronas Motorsport), Bettina Schaller (Adecco), André Kudelski (Kudelski), Swiss Ambassador Jacques Pitteloud, Isabelle Silvio Napoli (Schindler Holding / Swiss Amcham Moret (President, National Council), Thomas D. Meyer (Accenture), Christa Markwalder (National Chairman), Markus Diethelm (UBS) [MS] (1) Council), U.S. Ambassador Edward T. McMullen, Jr., Martin Naville (Swiss Amcham) [AK] (2)

U.S. Ambassador Edward T. McMullen, Jr., Martin Thomas Jordan (Swiss National Bank), Sergio P. Ermotti (UBS), Peter Friedli (Friedli Naville (Swiss Amcham), State Secretary Marie- Françoise Kudelski, André Kudelski (Kudelski) Corporate Finance) [AK] (2) Gabrielle Ineichen-Fleisch, Swiss Ambassador [AK] (2) Jacques Pitteloud [AK] (2)

Silvio Napoli (Schindler Holding / Swiss Amcham Chairman), Michael R. Wade Markus R. Neuhaus (), Antoine de Saint-Affrique (IMD), Bertrand Bodson (Novartis), Kamel Ouadi (KO&CO), Antonio Carriero (Barry Callebaut), Andreas Staubli (PwC) [MS] (4) (Breitling) [MS] (3)

175 years of making an impact that matters Deloitte.ch

© 2020 Deloitte AG. All rights reserved.

4 510262 AMCHAM Ad 02.indd 1 7/31/2020 1:32:08 PM Chamber Events

Björn Johansson (Dr. Björn Johansson Ass.), Grégoire Andreas Müller (Georg Fischer), Lars van der Haegen (Belimo Holding), Heinz O. Poux-Guillaume (Sulzer) (5) Baumgartner (Schweiter Technologies), Thomas Ebinger (PwC), Matthias P. Huenerwadel (Zehnder Group) (6)

Event highlights of a very challenging year

Franco Polloni (EFG Bank / former Ticino Chapter Board Martin Naville (Swiss Amcham), J. Erik Fyrwald Chairman), Silvio Napoli (Schindler Holding / Swiss (Syngenta Group), Andreas Staubli (PwC) [MS] (8) Amcham Chairman), Demis Stucki (EFG Bank / Ticino Chapter Board Chairman) (7)

1. Zurich, Jan. 14: Fireside Chat with Toto Wolff, Team Principal & CEO, Mercedes-AMG Petronas Motorsport 2. Davos, Jan. 23: WEF Swiss-American Friendship Cocktail 3. Zurich, Feb. 3: Panel Meeting on Digital Transformation with Prof. Michael R. Wade, Professor of Innovation and Strategy, Director of the Global Center of Digital Business Transformation, IMD 4. Zurich, Feb. 26: Antoine de Saint-Affrique, CEO, Barry Callebaut. Topic: “Doing Well by Doing Good” 5. Zurich, Mar. 10: Grégoire Poux-Guillaume, CEO, Sulzer 6. Zurich, Sept. 16: Hidden Swiss Champions - Profitable Nachhaltigkeit als Erfolgsmodell 7. Lugano, Sept. 17: Ticino Annual Dinner with Guest of Honor Silvio Napoli, Chairman Schindler Holding and Swiss Amcham 8. Zurich, Sept. 29: J. Erik Fyrwald, CEO, Syngenta Group. Topic: “Syngenta - 256 years of Swiss innovation to safely nourish the world and address climate change” Pictures: [MS] Markus Senn & [AK] Andrea Kammermann

Today your customers are front of your mind. Tomorrow you’ll be front of their mind.

#IntelligentDigital #CustomerCentricTransformation www.pwc.ch/CustomerCentricTransformation

© 2020 PricewaterhouseCoopers AG. All rights reserved.

5 The Chamber & You

Chamber Members in the News she is Senior Vice President, Head of Digi- tal Transformation in the CTO Division, in ABB Ebikon. She will be joining Belimo on June New Members ABB has launched its new “Global Diversity 1, 2021. Axpo, Baden & Inclusion Strategy 2030” through which Energy sector it plans to double the proportion of female Cembra managers worldwide over the next ten After more than eleven successful years Fracht FWO Inc., Houston, TX years. With this step, ABB aims at reaching as CEO of Cembra Money Bank, Robert International freight forwarder and Oudmayer has expressed his wish to step customs broker, tracking, ware- a 25% share of women in senior manage- down as CEO and take early retirement housing, distribution ment positions from currently 12.5%. The target forms part of ABB’s broader ambition in the course of 2021. The Board of Direc- Huba Control AG, Würenlos to foster inclusion and equality across all tors has initiated the search process for Manufacturing pressure and flow areas of diversity, including gender, abili- a successor. The bank will inform about sensors ties, generations, ethnicity, and LGBTQ+. the appointment in due course. Robert ABB will be offering employees inclusive Oudmayer will lead Cembra until the hand- leadership trainings and development pro- over, ensuring a smooth transition phase. grams, mentoring programs and learning The Board of Directors will propose Susanne interventions to foster an inclusive culture. Klöss-Braekler and Martin Blessing as new members of the Board of Directors at the Axpo next Annual General Meeting in 2021. They The Axpo U.S. team participated in a com- will replace Prof. Dr. Peter Athanas and Urs plex hedging structure for the Long Ridge Baumann who will not stand for re-election. gas-fired power project in Ohio, which was awarded “Conventional Power Deal of Credit Suisse the Year” by Power Finance & Risk (PFR Credit Suisse has announced the appoint- magazine). The natural gas-fired power ment of Christian Meissner as Co-Head of plant is currently under construction in International Wealth Management Invest- Hannibal, Ohio. The Long Ridge project ment Banking Advisory (IWM IBA) and has two fixed-price power agreements with Vice Chairman of Investment Banking as different tenors, collectively covering 94% of of October 26, 2020. Together with Babak its capacity. Axpo U.S. was selected as one Dastmaltschi, Chairman of Strategic Clients of the counterparties to provide a long-term IWM and Co-Head of IWM IBA, Christian hedge for the project’s output. Meissner will further develop and execute IWM’s strategy for entrepreneurial high net Belimo worth clients. The Board of Directors of Belimo Holding AG has appointed Dr. Elena Cortona as the DKSH new CTO, Head of Group Division Innova- DKSH has successfully completed the tion and Member of the Group Executive integration of Axieo in Australia and New Committee. Elena Cortona takes over from Zealand. This step is in line with the Group’s Louis Scheidegger, Head of Group Division strategy to further strengthen and expand its Production, who is leading the Group Divi- market position and geographical footprint sion Innovation ad interim. Elena Cortona in Business Unit Performance Materials in has been working for the Asia Pacific. The expansion includes two in various positions since 2001; currently innovation centers in collaboration with the

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6 The Chamber & You renowned Monash University in Melbourne, Nestlé. He has worked in various positions bringing the DKSH global network of innova- on three different continents, most notably tion centers to 46 worldwide. as the head of key markets like China, Germany and South Africa. In his current Ecolab position, Patrice Bula has successfully Ecolab announced that Christophe Beck, led the Group’s brand strategies, digital currently Ecolab’s President and Chief marketing transformation and the Nes- Operating Officer, will succeed Douglas presso business. The Board of Directors has Switzerland appointed Bernard Meunier, currently Head Talacker 41, 8001 Zurich Baker, Jr. as the company’s Chief Executive Phone 043 443 72 00, Fax 043 497 22 70 Officer effective January 1, 2021, becoming of Nestlé Purina PetCare EMENA, to suc- www.amcham.ch President and Chief Executive Officer. Beck ceed Patrice Bula as Head of Strategic CEO: Martin Naville has also been elected to Ecolab’s Board Business Units, Marketing and Sales. He Editor Business News: Bettina Asaf E-mail: [email protected] of Directors. Baker will retire as CEO but will assume this role as of March 1, 2021. Publisher: Ileana Garriga continue as Board Chairman. E-mail: [email protected] SIG Combibloc Group Firmenich After 12 years as Chief Executive Officer, Boston Chapter 420 Broadway Firmenich announced that Patrick Rolf Stangl has decided to leave the com- Cambridge, MA 02138 Firmenich, Chairman of the Board, has pany to pursue personal interests. Samuel E-mail: [email protected] won the EY Entrepreneur Of The Year Sigrist, currently Chief Financial Officer, will award 2020 Switzerland in the Family Busi- take over as Chief Executive Officer with California - Los Angeles Chapter 9461 Charleville Boulevard, #537 ness category. The EY award recognizes effect from January 1, 2021. Beverly Hills, CA 90212 Patrick Firmenich’s excellence in areas Phone 626/252-2834 such as innovation, financial performance Swiss International Air Lines E-mail: [email protected] and personal commitment, whilst continuing Thomas Klühr, CEO of Swiss International California - San Francisco Chapter the family legacy and positioning the Group Air Lines since 2016, has decided to step 601 Montgomery Street, STE 1400 as a global leader in the food, nutrition and down at the end of 2020. As his successor, San Francisco, CA 94111 health industry. Dieter Vranckx has been appointed as the Phone 415/433-6679 new CEO. He will assume his new duties on E-mail: [email protected] Helsinn January 1, 2021. Vrancks has held various New York Chapter Helsinn announced that it has received one management positions within the airline in- 500 Fifth Avenue, Room 1800 of Swiss Biotech Association’s Success Sto- dustry since 1998, 13 years of which within New York, NY 10110 Swiss and Swissair respectively. Phone 212/246-7789, Fax 212/246-1366 ries Awards 2020. Helsinn was recognized E-mail: [email protected] for its broad portfolio of on-market cancer care products and its deep development Syngenta Southeast USA Chapter E-mail: [email protected] pipeline, as well as for its development and Syngenta Group announced the acquisition manufacturing capabilities and contribution of Valagro, a leading Biologicals company, to employment in Ticino. Carolina Division by its business unit Syngenta Crop Protec- E-mail: [email protected] tion. The investment positions Syngenta Nestlé Crop Protection as one of the key gobal Florida Division Patrice Bula, head of Strategic Business companies poised to shape the rapidly E-mail: [email protected] Units, Marketing, Sales and Nespresso, growing Biologicals market, which is set and a member of the Nestlé Group Execu- to nearly double in size over the next five tive Board, will retire at the end of February years. Valagro will continue to operate as Opinions expressed do not necessarily reflect 2021. Patrice Bula has had a long and an independent brand in the market within those of the Chamber‘s Board of Directors. distinguished career of over 40 years at the Syngenta Crop Protection business. 5 issues p.a.; membership publication

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7 Liana Ileana

Lucia

Bettina

Martin

Amanda

We would like to thank you, dear member, for your much appreciated support and look forward to continuing to work with you towards our common goals. Wishing you a merry Christmas and a happy, successful New Year! The entire Chamber Team

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