Coal-related topics
Climate-related portfolio ambitions of the Swiss Life Group
Thresholds for coal
Swiss Life has adopted a thermal coal phase-out strategy for its PAM corporate bond portfolio. It is not making any new investments in companies which derive more than 10% of their revenue from the mining, extraction and sale of coal for power stations to external parties.
In its responsible investment approach, Swiss Life Asset Managers has defined a coal threshold for its infrastructure equity investments in the context of infrastructure funds: no investments are made in companies or projects with a valuation contribution from coal exceeding 10%. This means that the present value of cash flows from extracting, selling and trading coal or generating electricity and heat from coal must be below 10% of the company’s or project’s valuation.
The limits for coal relate to the areas in which Swiss Life can in principle make corresponding investments.
A thermal coal phase-out strategy for the PAM corporate bond portfolio has been formalised in order to contribute to the transition towards a more sustainable and low-carbon economy and mitigate the risk of stranded assets. In the course of 2020, Swiss Life’s investment in companies that derive 10% or more of their revenues from the mining, extraction or sale of thermal coal to external parties was reduced to 0%. As at the end of 2023, this position remains unchanged at 0%. Swiss Life also does not hold any items in its PAM equity portfolio that exceed this threshold. As Swiss Life pursues a partially passive investment strategy for equities, these limit values may be exceeded.
In connection with Article 29 of the French regulation “Loi Énergie-Climat”, Swiss Life France has implemented a more comprehensive coal phase-out strategy.
As at the end of 2023, the exposure of infrastructure equity investments made within the framework of all infrastructure funds to companies or projects with a valuation contribution of 10% or more from extracting, selling and trading coal or generating electricity and heat from coal was 0%. The exposure at the end of 2023 with respect to the same threshold was also 0% for investments within the PAM infrastructure equity portfolio.