Socially and environmentally responsible investment
What is Socially Responsible Investment (SRI) ?
SRI (Socially Responsible Investment) is a form of investment which seeks to reconcile economic performance and social and environmental impact by financing companies and public entities that contribute to sustainable development. By influencing the governance and conduct of the players involved, SRI serves to promote a responsible economy. Translation of the French Responsible Investment Forum’s (FIR) definition.
What is the approach adopted by CPIC’s Foundation Board
CPIC’s Foundation Board is aware of the importance of being able to report good annual performances to the beneficiaries. However, the investment performance ought not to be obtained regardless of the price and ought not to cause risks of economic, social or ecological imbalance. That is why we at CPIC have the desire to act as responsible investors. In order to put that wish into practice, our asset management considers not only performance but also the criteria of sustainable investments.
Responsible asset management is based on three main approaches:
-systematic exclusion of certain areas of activity – in particular companies that produce or market controversial weapons or agricultural raw materials essential fo basic foodstuffs;
-participation of our managing banks in SRI platforms, such as Sustainanalytics, and the inclusion of their ratings in the choice of investments;
-appliaction by our managing banks of their internal SRI policy in the choice of investments.
At each General Assembly, the managers present the specific position held by SRI investments in the CPIC portfolios, with these investments accounting for a steadily increasing share from one year to the next.
CPIC is a member of Ethos
Moreover, CPIC is a member of Ethos – Swiss Foundation for Sustainable Development, a grouping of nearly 220 institutional investors. The purpose of this foundation is to promote consideration of sustainable development principles in investment activities and also to promote a stable and prosperous environment that serves society as a whole.
We are members of the Ethos Engagement Pool Switzerland and of the Ethos Engagement Pool International and entrust them with shaholder engagement for our investments in Swiss and International equities. This commitment is aimed at strengthening the social and environmental responsabiliy of the companies in question and enhancing their governance. In this way, it will be possible, over the long term, to reduce the level of controversy concerning certain investments included in the porfolios.
Link to Ehtos, Prestations, Ethos Engagement Pool suisse and Ethos Engagement Pool international