Environmental, Social, and Governance (ESG) criteria
©2019 MSCI ESG Research LLC. Reproduced by permission
Integrating ESG criteria into asset management
Our ESG value proposition is built around five core measures, which enable us to take a comprehensive approach to socially responsible investing.
1. Signatory to the United Nations Principles for Responsible Investment
BCV is a signatory to the United Nations Principles for Responsible Investment (UNPRI), which seek to promote a sustainable financial system. The UNPRI, which are geared towards asset owners, asset managers, and intermediaries, are the most comprehensive and credible set of principles out there and the most widely recognized standard within the financial community.
2. Negative screening
Our negative screening policy excludes companies involved in illegal activities or serious controversies. We use two main sources to draw up our list of excluded companies: the Swiss Association for Responsible Investments (SVVK/ASIR) and the MSCI Research list of serious controversies.
3. AGM voting
We have drawn up guidelines based on the principles of good governance on how to vote at the AGMs of Swiss companies whose stocks are held by our investment funds.
4. ESG-centric portfolio management
We factor ESG criteria into our investment processes by rebalancing our portfolios to prioritize companies with good ESG practices. To do this, we draw on analyses produced by MSCI Research, an international firm that evaluates and scores major stocks using a tried-and-tested methodology. Selecting stocks in this way enables us to significantly improve our investment products' ESG scores. In addition, our analyses have shown that we can achieve this without worsening our products' risk-return profiles.