Responsible investing

In 2018, the Fund adopted a responsible investing policy through which it aims to generate sustainable performance and manage the inherent risks of its investments more effectively by taking into account environmental, social and governance (ESG) criteria. In 2023, that policy was supplemented by a climate policy intended to set out formally the Fund’s commitment, through its investments, to the Paris Agreement[1]. These two policies, developed in collaboration with the Nestlé Group, are aligned with the Fund’s ESG values and climate commitments.

In 2024, the Fund continued its regular monitoring of the asset managers tasked with managing the Fund’s investments, in terms of both financial criteria (returns, risks and costs) and ESG criteria, with the support of specialist consultants. ESG assessments look at how asset managers incorporate ESG criteria explicitly into their investment processes, including their performance regarding shareholder engagement, voting in annual general meetings and the human and material resources they devote to ESG. Over the years, we have seen our asset managers make increasing efforts to factor in ESG criteria. They have expanded their teams working on these matters, exercised their voting rights more consistently and increased their commitments. On that basis, and as in previous years, the ESG policies of the Fund’s asset managers were deemed satisfactory in 2024.

The Fund also monitored developments regarding its climate commitments. In its portfolio of listed equities and bonds, the number of companies with which the Fund’s asset managers engaged credibly in support of the climate increased. Particular attention was paid to companies on the Climate Action 100+[2] list, in which the Fund invests via its listed equities and corporate bond mandates. According to our analysis, over 90% of those companies have committed publicly to achieving net zero in 2050, along with verified interim targets, or have seen the Fund’s asset managers engage with them in a way compatible with the 2050 net zero target.

In addition, the Fund’s three unlisted Swiss real estate managers adopted credible interim targets in 2024 in addition to their commitment to reaching net zero in 2050. Finally, the portfolio of infrastructure investments contained a larger proportion of climate solutions in 2024. This trend is likely to continue in 2025 with the launch of a new infrastructure investment programme of which more than two thirds will be allocated to climate solutions and social infrastructure. Among those climate solutions, investments have already been made in companies involved in the development of wind farms in Germany and solar power generation and storage in the United States.

In 2024, the indicators recommended by ASIP[3] were included for the first time in the ESG report produced for the Pension Board. These indicators provide additional information, allowing the Pension Board to monitor the carbon intensity and footprint of the Fund’s investment portfolio and to assess whether the application of net-zero policies by investee companies is leading to an improvement in indicators over time.

We regard the Fund’s results in terms of the ESG dimension of its investments as encouraging. Those results must now be maintained over the long term. To achieve that, we will continue to collect data and monitor our asset managers carefully.

[1] The aim of the Paris Agreement (COP 21) is to limit global warming to 2°C (and to 1.5°C if possible) compared with pre-industrial temperatures by reducing greenhouse gas emissions. To achieve that target, the world needs to achieve net zero greenhouse gas emissions by 2050.

[2] https://www.climateaction100.org/whos-involved/companies/

[3] HOME | Association Suisse des Institutions de Prévoyance ASIP