Coal-related topics

Screening relating to coal and corresponding thresholds can potentially reduce the risk of stranded assets. However, regional and global developments must also be taken into account.

Swiss Life Asset Managers’ responsible investment approach therefore includes a thermal coal threshold for corporate bonds. Swiss Life Asset Managers is committed to ensuring that its clients’ assets comply with the appropriate threshold. Accordingly, no new investments are made in companies that derive 10% or more of their revenues from the mining, extraction or sale of thermal coal to external parties. In the course of 2020, with regard to portfolios and mandates subject to the coal threshold, investments in companies that derive 10% or more of their revenues from the mining, extraction or sale of thermal coal to external parties were reduced to 0%. As at the end of 2024, this position remains unchanged at 0%.

In addition, as part of its responsible investment approach, Swiss Life Asset Managers has defined a coal threshold for 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. As at the end of 2024, 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%.