Swisscanto

Baseline(s):

Target(s):

GHG scopes included:

For corporate issuers, Swisscanto evaluates GHG emission intensities based on Scope 1 and Scope 2 emissions, calculated as emissions divided by sales in USD. Scope 3 emissions may be assessed through fundamental analysis and are integrated into adverse impacts, and significant harm considerations, specifically for products in the “Sustainable” line.

For sovereign issuers, Swisscanto uses total national GHG emissions data provided by the European Commission’s EDGAR database. These emissions are converted into intensities by dividing by nominal GDP in USD, incorporating elements of Scope 1, 2, and 3 emissions.

Quantitative reduction targets are based on emission intensities, factoring in full nominal economic growth. This approach ensures that reduction targets reflect both real emission reductions and additional reductions compensating for nominal GDP growth.

Methodology:

Own/other methodology

Scenario(s):

Swisscanto’s climate strategy for the NZAM committed AUM is aligned with the 1.5°C IPCC scenario (50% probability), which serves as the foundation for the calculations and targets for NZAM.

25% of total AUM (USD $55.6 billion)

Proportion of AUM committed:

Swisscanto integrates climate targets as a core component of sound active portfolio management. The importance of addressing climate-related risks and opportunities as forward-looking considerations that can impact portfolio performance and risk profiles is recognised. By embedding climate targets into investment processes, we aim to enhance long-term value creation while supporting the transition to a net zero economy.

To ensure our approach remains robust and effective, we are committed to continuously refining our research methodologies. This includes adapting to new data, evolving climate science, regulatory developments, and market dynamics. By staying at the forefront of climate-related research, we aim to improve our ability to identify risks, seize opportunities, and support our clients in achieving favourable investment outcomes.

Swisscanto is committed to managing at least 25% of its total assets under management (AUM) in alignment with net zero, aligned with the 1.5°C pathway.

For the purpose of evaluating the alignment to the 1.5°C scenario for direct real estate investments, they are evaluated with respect to greenhouse gas reduction targets set by the Energy Perspectives 2050+ of the Swiss Federal Office of Energy for the building stock in Switzerland (“EP2050+ target pathway”). The EP2050+ target pathway is equivalent to the 1.5°C target pathway of the Carbon Risk Real Estate Monitor (CRREM) for Switzerland.

Policy on coal and other fossil fuel investments:

Swisscanto applies such a policy on “Responsible” and “Sustainable” investment products. Products in the “Responsible” line in the traditional asset classes follow exclusion criteria that cover companies generating more than 5% of their revenue from coal mining, and companies with coal reserves unless used for metal production. In addition, products in the “Sustainable” line follow exclusion criteria that cover companies involved in exploitation of oil and gas, coal mining and reserves, and those that generate a large proportion of electricity from fossil fuels. These products also follow exclusion criteria which exclude GHG-intensive industries, such as airlines, car manufacturers that focus on combustion engines, cruise lines, etc.