Credit Suisse To Include ESG Criteria in Fund Assets Worth CHF 100 Billion By 2020
Credit Suisse Asset Management is set to introduce an ‘environmental, social, and corporate governance (ESG)’ investing framework across its funds
The Credit Suisse ESG initiative will initially include 30 funds carrying assets more than CHF 20 billion. These funds will therefore need to reposition by end-October 2019 under the Credit Suisse Sustainable Investing Framework.
Ultimately, however, Credit Suisse plans to have over CHF 100 billion of ESG-positioned fund assets by end-2020.
The ESG Framework
The bank further set up an Impact Advisory and Finance (IAF) Department in 2017 to accelerate its ESG investment practices.
Meanwhile, the Suisse framework will:
- Define the investment universe, using if required negative screening
- Define the dialogue with portfolio companies via direct engagement and proxy voting
- Ensure ESG data, including financials, are integrated into the decision making
- Combine ESG into financial analysis and risk management
- Enable transparent ESG reporting
ESG Exclusion criteria
Finally, the Framework will exclude investments in companies that:
- Damage the environment
- Make weapons
- Engage in nuclear energy, tobacco, gambling or adult entertainment
- Engage in child labor, bribery or fatal accidents
- Mine coal (revenue limit of 30%)
“The integration of ESG criteria into our investment process will create lasting performance benefits,” said Michel Degen, head of Credit Suisse Asset Management Switzerland and EMEA.
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