Swiss pension schemes are recommending a review of the ESG reporting standards drafted by the pension funds association ASIP, calling to focus on high-quality key data, expand the criteria range, and improve standardisation overall.
In the first analysis of the implementation of the reporting standards conducted by PwC on behalf of ASIP, Swiss schemes have emphasised the importance of qualitative statements, that reflect the credibility and quality of measures taken, especially with regard to stewardship and engagement playing a central role not measurable only through numbers.
The research also showed that 87% of ESG reports submitted provided qualitative information on sustainable investment approaches such as exclusions, climate alignment/decarbonisation, stewardship and engagement.
Social impact and governance should become an integral part of ESG reporting, the schemes added, noting that now the focus seems only to be on the environment.
Swiss pension funds have also proposed to standardise ESG reporting to better compare key figures to strengthen the consistency of reports. They suggest reducing the number of key figures and focusing more on essential indicators that offer high-added value.
The PwC study showed that Swiss pension funds have faced challenges with data collection, processing and consolidation when reporting for the first time, in 2023, according to non-mandatory ASIP’s ESG standards.
Earlier this year a couple of pension schemes – the pension fund for the employees of the canton of Aargau (APK), and the pension fund for the employees of the Swiss Broadcasting Corporation, Pensionskasse SRG SSR (PKS) – struggled to find consolidating data and key figures.
ASIP’s ESG reporting standards include key figures, split into “Basic”, considered minimum standard, and “Advanced”, which leads to more detailed and comprehensive reporting. The majority of pension funds have reported on ESG looking at basic figures, and 2% at advanced figures.
Overall, 48% of 144 pension funds analysed, with assets of CHF660bn and 2.56 million members, stated that they prepared a sustainability report in accordance with ASIP ESG reporting standards, the PwC study added.
The PwC report also showed that 45% have not yet reported according to the standards but plan to do so in the next 12 months. Furthermore, 52% of public pension funds, 41% of private pension funds, and 61% multi-employer schemes say they have used ESG reporting standards.
The analysis also noted that 46% of pension funds commission external service providers, such as PPCmetrics or Ethos, for ESG reporting, 12% go for asset managers, and 10% for global custodians.
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