ESG investing Our ESG approach
We at Credit Suisse Asset Management holistically engage in sustainable investing. Our aim is to comprehensively adapt our product offerings to adhere to ESG (environmental, social and governance) norms by the end of 2020.
“Holistic” means that ESG criteria will get taken into account at various points throughout the investment process. We employ ESG criteria when defining the investment universe (exclusions), consider ESG-related risks and opportunities as supplementary information in investment cases and portfolio construction (integration), and advance sustainability through dialogue with companies (proxy voting and engagement). ESG criteria will get factored into specific investment decisions and incorporated into risk management. Finally, we provide detailed monthly ESG reporting to enhance portfolio transparency for our clients.
Holistic integration of ESG criteria
The four core elements of our approach to sustainability:
- Norm-based exclusions
- Values-based exclusions
- Exclusions due to involvement in controversies
- Country exclusions
- ESG data and ratings
- ESG-related risks and opportunities
- Contribution to the Sustainable Development Goals (SDG) of the United Nations
- Exercising of shareholders' rights (proxy voting)
- Dialogue with companies on ESG matters (engagement)
- Monthly reporting on portfolios’ sustainability qualities
- Portfolios’ alignment with ESG criteria
- Involvements in controversies
To us, “holistic” also means revising our existing range of products across all traditional investment areas. This means putting investment portfolios on a more sustainable footing. Companies whose business models we believe are not sustainable will vanish from our portfolios, just like we steer clear of companies that are rated as being overvalued on traditional fundamental analysis metrics. We seek dialogue with companies that show signs of changing in a positive way and actively support them in effectuating such change.