Case Study: CAP Prévoyance A public pension fund aligns its investments with long-term sustainability criteria. Information on the organisation Type of organisation
Assets under management (as of 31.12.2016)
Approximate asset allocation (as of 31.12.2016)
Public pension fund. Occupational pension fund for the City of Geneva, SIG (Geneva’s industrial service provider), 41 Geneva municipalities, six external institutions, and CAP Prévoyance. CHF4.1 billion
Allocation by asset class CHF bonds: 5.7%
Foreign currency bonds: 13% Swiss equities: 15.7%
International equities: 20.3% Real estate: 33% Other: 12.3%
Information on sustainable investment policy Who initiated the drafting of a sustainable investment policy?
What was the main motivation for this step?
What are the main components/content of the sustainable investment policy?
CAP Prévoyance (“Caisse d’assurance du personnel de la Ville et des Services Industriels de Genève” until late 2013) has been active in sustainable investment since 2001. Both the foundation’s Board of Trustees and the executive management support and carry forward the issue.
The approach was mainly driven by the Board of Trustees, which felt that especially a public pension fund should be concerned about and evaluating issues of good corporate governance and sustainable development. In line with the values and principles set out by the City of Geneva, the Board and executive management expressed their intention to invest responsibly so as to finance a sustainable economy.
Another reason was long-term vision. Board members are convinced that the incorporation of environmental, social, and corporate governance (ESG) factors is likely to increase the value of the capital on a risk-adjusted return basis. Broadly speaking, the 2010 adopted Responsible Investment Charter recommends: • • • •
88
incorporating ESG issues into the management of movable and immovable assets, exercising voting rights and shareholder dialogue,
excluding companies involved in arms and pornography, and that CAP does not invest in commodities and hedge funds.
