Our approach to responsible and sustainable investment

Regulators globally are increasingly mandating that publicly traded companies include non-financial data—about environmental, social, and governance (ESG) concerns—in their annual reports. These ESG factors, which traditional financial metrics do not easily capture, provide insights into issues that may affect an investment's risk profile and potential for growth.

Many institutional investors now view the incorporation of ESG considerations as part of their fiduciary responsibility. Weaving ESG factors into investment strategies will become crucial to developing solutions that align with clients’ sustainability values and preferences.

The term 'greenwashing' refers to making deceptive claims about the environmental benefits of an investment practice or product, suggesting it is more sustainable than it truly is. This issue is compounded by the absence of a universally accepted definition of 'sustainable,' which leaves room for interpretation and, consequently, the risk of greenwashing.

Moreover, financial entities' perceptions of what constitutes an environmentally sound investment can differ markedly. The debate over nuclear power exemplifies this divergence, with opinions on its sustainability credentials sharply divided."

This revised version aims to provide a more precise and smooth reading experience while preserving the original meaning of your statement.

A fundamental aspect of our responsible investment strategy is the comprehensive coverage of our investment universes. However, certain asset classes remain outside our coverage due to challenges such as inaccessible raw data, companies' failure to disclose relevant information or the inherent incompatibility of the asset with sustainable investment practices. These asset classes include:

1. Unquoted corporate bonds
2. Alternative investments
3. Physical real estate
4. Commodities
5. Digital assets

The SDGs, or Sustainable Development Goals, comprise a universal set of 17 objectives adopted by the United Nations member states to promote sustainable development. While not all these goals may be directly linked to sustainable investments, our thematic certificates selectively invest in companies that contribute solutions aligned with certain SDGs. Our offerings include :

• A certificate targeting SDG 7 (Affordable and Clean Energy)
• A certificate focusing on SDG 13 (Climate Action)

Our 'Women Empowerment' thematic certificate supports:

• SDG 5 (Gender Equality)

And our 'Helv-Ethic' thematic certificate contributes to:

• SDG 16 (Peace, Justice, and Strong Institutions)"

The European Taxonomy is a classification system that establishes a list of economic activities to finance the transition to a sustainable economy. The degree of compatibility with these regulations is expressed as a percentage indicating the alignment with the taxonomy. The objective is to direct capital flows towards sustainable activities using these indicators.

The six environmental objectives that the taxonomy addresses are:

1. Climate change mitigation;
2. Adaptation to climate change;
3. Sustainable use and protection of water and marine resources;
4. Transition to a circular economy;
5. Pollution prevention and control;
6. Protection and restoration of biodiversity and ecosystems.