ESG
Seeking to generate returns. Sustainably.
What is ESG?
ESG is the recognition that an investment is more than a purely financial transaction. In a world of finite resources and complex societies, every decision matters. Investors and companies who realize this have the advantage.
ESG is the future. With our ESG approach, you become part of it.
ESG stands for ...
ESG stands for environmental, social and governance and has gained currency in the financial industry as a basis for judging the sustainability of investments. Integration of material ESG criteria can potentially improve the risk/return attributes of investment portfolios. The selection of the relevant criteria can vary greatly from one industry to another.
ESG factors are vital for assessing the sustainability and relevant risks of an investment position, even outside an explicitly sustainable investment philosophy.
E as in environmental
- CO2 emissions and climate change
- Pollution
- Biodiversity
- Food security
S as in social
- Human rights
- Labor conditions and standards
- Child labor
- Equality
G as in governance
- Quality and diversity of board directors
- Good governance
- Remuneration of executive board and board of directors
- Shareholders' rights
Our approach
Our sustainable investing approach is comprehensive and transparent. Sustainability applies to many asset classes, investment styles, and portfolios, with different methods applied across the investment process and detailed ESG reporting to provide transparency. Our ESG focus is not just about doing the right thing – it’s an imperative for identifying quality investments.
Through our funds and client portfolios, we hold shares in many companies in Switzerland, Europe, and across the globe. As shareholders, we have the opportunity, on behalf of our clients, to engage with companies, communicate our goals and expectations, and exert concrete influence with our voting power at annual shareholder meetings.
Discover more about our Sustainable Investing Policy
(Note to fund investors and prospects: The information in this section is complementary to information provided in fund prospectuses.)
Memberships
Net Zero Asset Managers Initiative
Net zero is a core sustainability ambition for Credit Suisse, a founding member of the Net Zero Banking Alliance (NZAM). By joining the NZAM initiative, we are reaffirming – and reinforcing – this commitment. The commitment sets out a range of actions that we will take forward which are key components required to accelerate the transition to net zero and achieve emissions reductions in the real economy: engaging with clients, setting targets for assets managed in line with net zero pathways, policy advocacy, corporate engagement and stewardship.
Climate Action 100+
Credit Suisse Asset Management is a member of the Climate Action 100+ plan, an industry-wide investor initiative committed to reducing greenhouse gas emissions and fighting climate change. This membership is a logical next step in advancing our active ownership activities, which are an integral part of our overarching sustainability approach. By teaming up with a group of investors with more than USD 40 trillion in assets under management, we aim to significantly leverage our impact for the topic.
ICGN
Credit Suisse Asset Management is a member of the International Corporate Governance Network (ICGN), which aims to promote effective standards of corporate governance and investor stewardship to advance efficient markets and sustainable economies worldwide. As a member, Credit Suisse Asset Management champions the long-term benefits of good governance and strives to make this an integral part of its approach to business and investment.
Opportunities and risks
Arguments in favor of sustainable investing
- ESG investments can curb risk and exert positive impacts at the same time.
- ESG investments tend to exhibit better risk/return attributes than equivalent traditional investments.
- ESG provides space to consider both financial and non-financial objectives, and to balance these according to client preferences and needs.
Potential risks
- Actual asset value performance depends on the chosen investment strategy and the market environment.
- Sustainability investment strategies present a risk of higher tracking errors if they are managed against traditional (non-ESG-compliant) benchmarks.
- Your relationship manager will be happy to explain the risks of individual investments to you.
Get in touch with Asset Management
Contact us to learn about exciting investment opportunities. We are here to help you achieve your investment goals.
Source: Credit Suisse, unless otherwise specified.
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