Why is sustainable investing important to us?
Investing in sustainable companies is no longer a passing trend these days. We are convinced that it is important to pay attention to sustainability criteria when investing. In this way, we can contribute to a sustainable economy and create good living conditions for future generations.
Sustainability criteria can be integrated into our investment process without compromising returns. We have analyzed this topic in our Research Note «Minimum variance and sustainability: A harmonious relationship».
How does the integration of sustainability criteria work in our investment process?
We have integrated sustainability in two steps. In the first step of our investment process, we use exclusion criteria and do not invest in companies that violate key ESG criteria. In the subsequent portfolio optimization, we give preference to companies that tend to have a better sustainability rating. We use the sustainability ratings of MSCI ESG Research, a leading global data provider in the field of sustainability, as the basis for our data.
We use sustainability ratings from MSCI, a leading global data provider in the field of sustainability, adhere to the exclusion recommendations of the Swiss Association for Responsible Investment (SVVK-ASIR) and exclude companies that do not meet the UN Global Compact criteria.
What does sustainability according to ESG entail?
ESG is an acronym made up of the English terms Environment, Social and Governance. These three aspects provide the framework for assessing sustainability.
- Climate change
- Environmental pollution
- Nuclear technology
- Genetically modified organisms
- Human rights
- Consumer protection
- Shareholder rights