New sustainability reports offer clear decision-making support
Investor information from 8. March 2024
At the end of June 2022 the Confederation launched the Swiss Climate Score. They are intended to make the climate-friendly orientation of financial investments visible. The ESG reporting standards of the Swiss Pension Fund Association ASIP also apply to pension funds. Two new sustainability reports from Zürcher Kantonalbank Asset Management summarize the required data in a clear and transparent manner.
Fridge labels instead of reference books, clear information in a small space instead of confusion caused by excess. Thanks to this pragmatic approach, the "Swiss Climate Scores" launched by the Federal Council in 2022 and the ESG reporting standards expanded as an industry solution by the Swiss Pension Fund Association (ASIP) are set to become the simple and transparent benchmark for sustainability indicators for financial products.
The most important metrics on one page, clearly structured, graphically presented and easy to understand - this is exactly what the new reports from Zürcher Kantonalbank Asset Management are like (see image below). As a pioneer in the Swiss financial centre, ZKB offers its institutional clients automatic PDF reports on all active and passive funds and, on request, for individual assetmanagement mandates. Both new publications contain the sustainability key figures as at the end of 2023.
The new sustainability reports are aimed in particular at pension funds. After all, they bear the fiduciary responsibility for the sustainable and future-oriented management of their policyholders' assets. In addition to a return in line with the market, the focus is on risks, which also include environmental, social and corporate governance aspects. This makes transparent sustainability information on the individual financial investments all the more important in this context. The "Swiss Climate Scores" and ASIP's ESG reporting standards are intended to support investors and encourage them to realise their own sustainability goals and align their capital investments with the climate goals of the Paris Agreement. To this end, sustainability factors such as environmental, climate, social and corporate governance aspects are included in the investment considerations alongside standard investment criteria such as strategy, risk and return.
Key sustainability indicators at a glance
The non-binding "Swiss Climate Scores" provide investors with information such as the CO2e intensity of the portfolios or the extent to which they are exposed to fossil fuels such as coal and whether they generate more than
5 per cent of their income from fossil fuels. Investors also receive information on the climate dialogue between the companies and the financial institution, which is an important prerequisite for the transition to more sustainable business models. The data is divided into a current status quo and a section on the topic of "Transition to net zero".
The sectorsolution of the Swiss pension funds goes even further, also including information on property investments and governmentbonds. The ASIP standards with a recommendatory character were developed in collaboration with the Asset Management Association (AMAS), Swiss Sustainable Finance and the investment foundations, among others.
In the two new reports – the "Swiss Climate Scores" report and the ASIP ESG report – ZKB has for the first time summarised the key sustainability indicators of its financial products in accordance with the respective standards and offers them to its clients as a clear basis for decision-making. The "Swiss Climate Scores" reports are available on the website for the respective funds. The new ASIP ESG reports on the Swisscanto investment solutions for pension funds are available on request. In addition, the more detailed sustainability reports are also available from Zürcher Kantonalbank.
About Zürcher Kantonalbank Asset Management
Zürcher Kantonalbank is a leading universal bank in the Zurich economic region with national roots and international reach. It is an independent public-law institution of the Canton of Zurich. Proven asset management specialists at Zürcher Kantonalbank develop high-quality investment and pension solutions for private investors, companies and institutions. It is known for its pioneering role in sustainable investments, and the Swisscanto funds it manages as asset manager regularly receive national and international awards.
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Please note that any information on historical performance is not an indicator of current or future performance and that any performance data shown may not take into account the commissions and costs charged on the issue and redemption of fund units. Any estimates of future returns and risks contained in the document are for information purposes only. Zürcher Kantonalbank does not provide any guarantee in this regard. Every investment is associated with risks, in particular those of fluctuations in value, returns and possibly exchange rates. With regard to any statements concerning sustainability, it is pointed out that there is no generally accepted framework in Switzerland and no generally applicable list of factors to be taken into account in order to ensure the sustainability of investments.
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