Legal Documents and Notes SFDR - Sustainable Finance Disclosure Regulation
Information on transparency of adverse sustainability impacts at entity level in connection with the Sustainable Finance Disclosure Regulation of the European Union (EU) 2019/2088.
At Credit Suisse, we consider sustainability-related factors when defining the investment universe, and identify environmental, social and governance (ESG) related risks and opportunities in investment strategies.
Our approach to sustainable investing begins with clearly defined exclusion criteria and the Credit Suisse Exclusion Policy. At Credit Suisse, sectors and companies that are proven to have a detrimental impact on society or the environment are excluded from the investment universe. Credit Suisse considers three categories of exclusions: norms-based, business conduct-based, and values-based exclusions. The first two categories present a material risk to investment portfolios and are therefore universally applied across all ESG-integrated portfolios directly managed by Credit Suisse (unless otherwise specified by clients). Credit Suisse categorically excludes firms that are not compliant with international treaties on controversial weapons and expects companies to meet their fundamental obligations in line with the UN Global Compact Principles, such as respecting human rights, practicing environmental responsibility, and avoiding corruption in all its forms. Credit Suisse partners with research firms to identify companies in possible breach of these norms, and places them on a watchlist for potential exclusion from our sustainable investment universe. The third category – values-based exclusions – may not present a material risk to investors, but it could nonetheless be of interest for certain sustainability-focused investors. Credit Suisse continues to monitor regulatory developments that have an impact on our adverse sustainability impact assessment.
Importantly, our ESG integration strategies incorporate material ESG factors into investment processes for the purpose of delivering superior risk-adjusted returns. Growing environmental and demographic pressures make it clear that ESG must be integrated systematically across the investment process in order to be effective. With our Sustainable Investment Framework, we believe we have set out a more intentional and systematic approach to ESG integration. For more information, please read the Sustainable Investment Framework report.
Furthermore, Sustainability Strategy, Advisory and Finance (SSAF), headed by Chief Sustainability Officer Marisa Drew, was established in July 2020 and combines all of Credit Suisse’s strategy and sustainable investment activities worldwide into one organization. The SSAF devises an appropriate sustainability strategy. The unit's aim is to facilitate investable projects and initiatives that have a positive economic and social impact and support clients on their sustainability journeys while generating a market financial return. For more information on the SSAF, please visit the Credit Suisse Sustainable Investing website.
Currently, the extent to which principal adverse sustainability impact indicators can be taken into consideration in investment decision making by a financial market participant, and financial advice provided by a financial advisor, is not yet definitively determined. Credit Suisse Ltd. (LEI ANGGYXNX0JLX3X63JN86) and Credit Suisse (Switzerland) Ltd. (LEI 549300CWR0W0BCS9Q144) in their role as financial market participant and financial advisor in accordance with the Regulation (EU) 2019/2088, put great efforts to fully consider adverse sustainability impacts in their investment decisions and advisory processes once the final implementation standards are applicable.
It is also important to note that, in accordance to Article 3g of the Directive (EC) 2007/36 of the European Parliament and of the Council, as amended by Directive (EU) 2017/828 of the European Parliament and of the Council of 17 May 2017 (Shareholder Rights Directive II – SRD II), Credit Suisse aims to actively bring about positive change in the companies in which we are invested by adopting active ownership practices. The Credit Suisse Engagement Policy applies to entities that invest in equities of companies domiciled in the European Economic Area (EEA) and are listed on a recognized trading venue in the EEA. At Credit Suisse, we exert influence on companies’ business operations through proxy voting, i.e. the fiduciary exercise of our voting rights at general shareholder meetings, and through active engagement, i.e. maintaining permanent dialogue with companies and boards on sustainability-related topics. For Credit Suisse and our clients, we believe active ownership increases the value of the companies in which we invest, over the long term, and ultimately improves the risk/return profile of our portfolios. Moreover, by accelerating the transition to a more sustainable economy, active ownership can create tangible benefits for people and the planet. For more information, please refer to the Credit Suisse Engagement Policy Statement.
Finally, at Credit Suisse, we have long recognized the role we can and should play in addressing the ESG challenges. We strive to facilitate investment products and services that generate environmental and social benefits in line with the United Nations’ Sustainable Development Goals (SDGs) as well as financial returns for our clients. Credit Suisse believes that the most effective way to foster sustainable long-term change is through collective action. With this in mind, Credit Suisse supports industry initiatives and engages with stakeholders and policy makers on key sustainability topics by actively participating in a number of sustainability networks and initiatives worldwide. In 1992, Credit Suisse was one of the first signatories of the Finance Initiative of the UN Environment Programme (UNEP FI), a global partnership of more than 300 banks, insurers and investors with the aim of promoting a sustainable approach to business within the financial sector. Credit Suisse was one of the first banks to sign up to the Equator Principles in 2003, playing an active role in the recent amendment process and was involved in the management of the Equator Principles Association. As a signatory to the UN’s Principles for Responsible Investment (PRI), we emphasize our commitment to acting in the best long-term interest of our clients by incorporating ESG criteria into our investment process and decisions. In 2019, Credit Suisse became a founding signatory to the Principles for Responsible Banking (PRB) of the UNEP FI, calling for the alignment of the banking sector with the objectives of the UN Sustainable Development Goals and the Paris Agreement. Furthermore, Credit Suisse believes that transparency and a common understanding of standards in impact investing are crucial to developing this market, and is a founding signatory of the International Finance Corporation’s (IFC) Operating Principles for Impact Management. We have also publicly expressed our support for the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) as well as the Task Force on Nature-Related Financial Disclosures (TNFD) and continue working on their implementation. Credit Suisse has launched a partnership with the Climate Bonds Initiative, is a member of numerous industry bodies, including Climate Action 100+ and the Roundtable on Sustainable Palm Oil, amongst others.