Portfolio and funds sustainability screenings

In order to invest in a socially responsible manner, investors need more than strictly financial information. Information regarding a company’s environmental and social responsibility and corporate governance is a key element of inherent risk evaluation towards investments.

Ethos analyses all Swiss listed companies of the SPI and all companies included in the MSCI World Index ex CH and MSCI EM (250) indexes. Issuers included in the Swiss Bond Index AAA-BBB are also part of the Ethos analysis universe.

Ethos offers a full range of advisory services to foster socially responsible investment.

Portfolio screening

Ethos conducts screenings of existing portfolios based on environmental, social and corporate governance (ESG) criteria. Ethos establishes a detailed report providing a consolidated overview of the portfolio as well as in-depth analyses by region and asset class. The report is completed with analyses in relation to the portfolio’s exposition to sectorial exclusions, to major controversies or to green-house gas emissions. ESG ratings of listed companies and fund analysis are also included in this service. 

Fund screening

Ethos performs sustainability analyses in relation to funds and issues a sustainability factsheet for each fund. The spread of ESG ratings as well as extra-financial performances is compared to the fund’s benchmark. The factsheet also highlights the fund’s exposition to ESG controversies as well as to sensitive sectors or companies in which  the fund is invested.

ESG analyses

An in-depth sustainability analysis covers all environmental, social and governance criteria related to the company. The environmental and social assessment covers themes as varied as corporate strategy and environmental management system, human resources, product sustainability, human rights, suppliers and relations with civil society. The governance dimension includes such subjects as transparency, capital structure, board composition and functioning, the remuneration system, shareholders’ rights and business ethics. The definition of the analysis criteria depends on good practices in regards to ESG, sectorial stakes as well as practices in different markets.

Ethos’ ESG ratings are performed based on the ESG assessment in comparison to the ratings of companies in similar industries. The quantitative analysis is supplemented with qualitative analyses of the company’s products as well as it exposition to serious or major controversies.

As part of the ESG analysis, Ethos evaluates companies to check whether they should be excluded from a sustainable portfolio. This might be the case for instance if a significant part of the company's sales is derived from a sensitive sector (armament, tobacco, nuclear industry, genetically modified organisms…). Another exclusion factor could be related to the existence of serious controversies (breach of human rights, major damage to the natural environment…).