The number of Swiss Pensionskassen continuing to decarbonise thier investment portfolios and investing assets according to ESG criteria has grown from 25% in March to 29% in November, according to the latest climate rating published by Climate Alliance, a league of civil society organisations.

The firm’s latest research showed that the Pensionskassen rated as light green – which meant having improved ESG quality of their investments and decarbonisation of portfolios – included BVK, the pension fund of the canton of Zurich BVK, the largest in the country, the pension fund of Switzerland’s federal railways SBB, Bernische Pensionskasse (BPK), and the pension fund for the employees of the Aargau canton APK, among others.

Climate Alliance analysed invested assets worth CHF411bn (€417bn) of the Pensionskassen whose ESG strategies are on the path to decarbonisation in line with the Paris Agreement to limit global warning, and to fulfill the UN Sustainable Development Goals, up from CHF329bn in March.

The Pensionskassen rated in orange, with potential to be rated green, included AXA Sammelstiftungen, Allianz Sammelstiftungen, the pension fund for the Swiss canton of Geneva CPEG, Sammelstiftung Vita, St Gallen Pensionskasse, Basellandschaftliche Pensionskasse, and the Pensionskasse of the Zurich Cantonal Bank, among others, for total assets amounting to CHF159.9bn, up from CHF130.3bn in March.

Climate Alliance rated orange Pensionskassen that made sufficient steps to decarbonise thier investment portfolios, opting to exclude or underweight coal, oil and gas companies, or sectors or stocks with “worst-in-class” ESG qualities.

The Pensionskassen rated orange have on the other hand opted to an overweight in industries that have a positive impact on climate, investing in renewable energies. Assets of Pensionskassen rated orange amounted to CHF44.2bn in November this year, down from CHF77.5 in March, according to the rating.

Assets of Pensionskassen rated red, which meant having a lack of transparency in ESG investment strategies and lack of efforts on green investments, amounted to CHF600bn in November, down from CHF647.4 in March, according to Climate Alliance.

The research showed that 1% of the Swiss Pensionskassen rated is considered as visionary, only investing according to ESG criteria, focusing at the same time on positive impacts on society, the environment and the climate, with total assets allocated worth CHF8bn in November, up from CHF7.2bn in March.

According to Climate Alliance, a high share of Pensionskassen still does not take advantage of the benefit of investing according to ESG criteria, and financial products with well reported data on CO2 emission, or of the opportunities given by green impact investing, for example in infrastructure and green bonds.

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Luigi is IPE's Berlin-based DACH correspondent. His coverage includes regulation and the latest pensions and investments trends, and, being a native Italian, he also covers Italy’s pensions market. He has reported from Italy and Germany on international politics and business for European and US publications including USA Today, Bloomberg BNA and for the investigative magazine L’Espresso. He was previously Germany correspondent for Mergermarket covering M&A.View full Profile

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