We use in-house analyses to conductnegative screening, where we exclude companies whose activities do not comply with regulations or whose practices we deem incompatible with our SRI approach.

In applying this approach, we exclude:

• controversial weapons
• thermal coal
• unconventional fossil fuels
• companies that do not comply with the UN Global Compact
• adult entertainment.

We integrate ESG risks and opportunities into traditional financial analysis and investment decisions drawing on carefully chosen information sources.

We base our investment decisions on quantitative ESG scores or metrics, with the aim of favoring companies that meet high ESG standards in various areas. This is done in two different ways:

• Positive screening: we select companies with good ESG scores in order to build a portfolio with an ESG score higher than that of the benchmark index.
• Best-in-class selection: we select companies that outperform their peers on ESG metrics with respect to a given threshold.
   

We invest in companies that provide solutions to either environmental issues (such as renewable energy and energy efficiency) or social issues (such as education, healthcare, and poverty reduction), in line with the UN Sustainable Development Goals.

We exercise our shareholder voting rights in order to encourage companies to improve their ESG-related practices, as well as to protect our investors’ capital over the long term. In our view, this approach can be a major driver of positive change in the overall direction of a company.

At the general meetings of both Swiss and non-Swiss companies, our ballot decisions are based on proxy voting recommendations provided by our partner Ethos. Today, we exercise our voting rights for companies whose stocks are held by 16 investment funds representing total assets of some CHF 3.8bn.