Swisscanto by Zürcher Kantonalbank
Swisscanto is a multi-award-winning provider of a wide range of innovative, high-performance, sustainable funds and pension products with asset management made in Switzerland. Swisscanto joined the Net Zero Asset Managers Initiative in July 2021 and made its Initial Target Disclosure in November 2022.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
25% of total AUM (USD $55.6 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Baseline(s):
GHG-emissions reduction is estimated for each portfolio relative to its respective benchmark, fixed on 31.12.2019.
Target(s):
2025: 32% reduction of GHG-emissions
2030: 54% reduction of GHG-emissions
2040: 79% reduction of GHG-emissions
2050: 90% reduction of GHG-emissions
GHG scopes included:
For corporations, Swisscanto considers GHG-emission intensities, calculated as Scope 1 and Scope 2 emissions divided by sales in USD. Scope 3 are currently under evaluation and are planned to be integrated from 2023. For sovereign entities, full national GHG-emissions are used, as provided by the European Commission’s EDGAR, transformed into intensities by dividing by nominal GDP in USD. Therefore, the emissions number incorporates scope 1, 2 and 3 in parts.
Methodology:
Own/other methodology
Scenario(s):
Swisscanto’s climate strategy uses the 1.5°C IPCC 50% probability scenario as the basis for all calculations. For 2°C aligned portfolios, the IPCC 67% probability scenario is used.
Additional information
Proportion of AUM committed:
On 100% of AUM, Swisscanto applies stewardship, and through voting & engagement, corporations are pushed to align to net neutrality. Through this and asset allocation, the proportion of aligned AUM is planned to increase. In addition to the committed 25% of AUM committed to net zero along the 1.5°C pathway, Swisscanto manages another 20% of AUM committed to net zero along the 2°C pathway. 55% of AUM represent passively managed products against traditional benchmarks, which are out-of-scope, and direct real estate investments, which are guided by the SIA Energy Efficiency Path (SIA 2040), which is compatible with a 2°C net zero pathway. Evaluations are underway to increase commitments from 2°C to 1.5°C, and to reduce the proportion of out-of-scope AUM.
Policy on coal and other fossil fuel investments:
Swisscanto applies such a policy on all assets apart from the AUM that are managed passively against a traditional benchmark. All actively managed products, as well as Responsible passive products exclude companies that generate more than 5% of their revenue from coal mining, and companies with coal reserves are also excluded unless they are involved in metal production. In addition, products of the Sustainable line (~6% of AUM) from Swisscanto exclude companies involved in exploitation of oil & gas, coal mining & reserves, and those that generate a large proportion of electricity from fossil fuels. These products also exclude GHG-intensive industries, such as airlines, car manufacturers that focus on combustion engines, cruise lines, etc. More information available
Further information:
Climate strategy aligned to the Paris targets
Documentation on exclusion criteria, concerning coal and other fossil fuels
Documentation Swisscanto’s stewardship (voting and engagement)
Documentation Swisscanto’s ESG integration, specifically environmental KPIs
Documentation Swisscanto’s support of the UN Sustainable Development Goals
Documentation on reporting on the Swisscanto’s sustainability efforts
ESG