Ethos Services SA
Ethos, Swiss Foundation for Sustainable Development, is composed of 247 Swiss pension funds and public utility foundations. Ethos was founded in 1997 and aims at promoting socially responsible investment (SRI) as well as a stable and prosperous socio-economic environment that safeguards the interests of civil society today and in the future. Ethos joined the Net Zero Asset Managers Initiative in March 2021 and made its Initial Target Disclosure in April 2023.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
86% of total AUM (USD $1.47 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Portfolio emissions (Ethos scope 3 – Investments): 2019
Ethos emissions other than investments: 2020
Portfolio emission intensity: 322 tCO2e/CHF invested
Portfolio Decarbonisation Reference Target (portfolio carbon intensity reduction) (Ethos’s scope 3 category 15 (investments) emissions) using the EVIC metric: -35% by 2025.
Portfolio share of companies with SBTi validated targets: 50% in 2025 with fund-specific interim targets as outlined in Ethos public climate strategy (exception for the Vontobel Fund (CH)).
Portfolio Decarbonisation Reference Target (portfolio carbon intensity reduction) (Ethos’s scope 3 category 15 (investments) emissions) using the EVIC metric: -56% by 2030.
Portfolio share of companies with SBTi validated targets: 80% in 2030, 100% by 2040 with fund-specific interim targets as outlined in Ethos public climate strategy (exception for the Vontobel Fund (CH)).
Portfolio Decarbonisation Reference Target (portfolio carbon intensity reduction) (Ethos’s scope 3 category 15 (investments) emissions) using the EVIC metric: -90% by 2050.
These ambitious intensity reduction targets have been set in order to lead to absolute emissions reductions based on IPCC global absolute carbon budgets and IEA’s global growth expectations as explained in Ethos climate strategy.
In order to reach these ambitious targets, Ethos already engages directly with 100% of Swiss invested companies and will intensify its climate-related engagement with international invested companies to cover the most emitting companies within its global portfolio either directly or as part of collective engagements. In addition, Ethos votes on 100% of the invested companies based on ambitious climate requirements outlined in its voting guidelines. For instance, requirements are in relation to Say on Climate proposals or board member re-election and favour progressive climate-related shareholder proposals.
GHG scopes included:
Ethos has decided to show the complete GHG emissions balance of the companies held in Ethos equity funds which include investee companies’ scope 1, 2 and 3 emissions. Ethos takes into account all investee companies’ scope 1,2 and 3 emissions regardless of the sector, as recommended by the EU TEG from 2026 onwards.
Net Zero Investment Framework
Science Based Target initiative for Financial Institutions
IPCC WG3 AR6 absolute GHG reduction scenario to limit warming to 1.5°C (with 50% probability) with no or limited overshoot with net-zero GHGs.
Proportion of AUM committed:
At present, Ethos is focused on including listed equities which represent the majority of AUM. Fixed income funds are not included in the calculation due to the lack of an adequate methodology concerning sovereign and supranational bonds. As soon as a recognised methodology is available, Ethos will integrate these funds into the climate objectives. Corporate fixed income is not included for the time being because this asset class is included in the same funds as sovereign and supranational bonds.
Policy on coal and other fossil fuel investments:
Climate strategy (currently only available in French and German):
The reduction targets do not take into account the carbon sinks developed or financed by the invested companies. Indeed, emissions and sinks must be separated in carbon accounting because of their known limitations (non-additionality, limited global quantity, fragility, non-permanence, calculation uncertainties and the time lag between emission and absorption) and because they cannot be equivalent.