Securities

Securities make up the largest share of Swiss Life’s total assets under management. Swiss Life takes a large number of measures into account in the investment process for securities. These include dedicated ESG products, the systematic exclusion of certain companies and the exercise of voting rights at shareholder meetings.

In the investment process for securities – such as shares and corporate and government bonds – Swiss Life uses, among other things, analyses by various independent international ESG research and valuation service providers. ESG information on over 20 000 share and bond issuers worldwide helps Swiss Life to swiftly identify and anticipate the risks relating to environmental and social issues as well as governance aspects. This also ensures early recognition of risks arising from ESG problems such as infringements of labour law, shortcomings in corporate governance and indications of corruption or environmental risks relating to climate change. Swiss Life also tracks specific CO₂ metrics, such as carbon footprint and carbon intensity. Specific targets have been set for certain portfolios (see NZAMi commitment above).

Swiss Life sets ESG thresholds on the basis of external ratings in order to avoid issuers with a poor ESG performance when making new investments. In particular, it avoids issuers that have a low ESG rating or are involved in serious ESG controversies. As part of its credit analyses of issuers of fixed-income investments, Swiss Life takes numerous ESG factors into account, such as the carbon footprint, ESG ratings and ESG controversies. On this basis, detailed credit reports are formulated which are then analysed by the risk committees.

Unlike fixed-income investments, for which Swiss Life pursues an active investment approach, a passive approach is taken for equity investments. As a result, there is limited flexibility to exclude investments from the investment universe. In most of the equity investment strategies, however, ESG ratings or controversies are used as a factor to optimise the portfolio. Swiss Life also attaches great importance to exercising shareholder voting rights in its equity investments: during the year under review, it further expanded its engagement with portfolio companies in the context of corporate dialogues.

The Stewardship Report is available at www.swisslife-am.com/active-stewardship-report-en