Passion for Swiss equities
ESG Policy
zCapital is firmly committed to responsible investing and actively promotes environmental, social and corporate governance (ESG) issues. They are key drivers of a company's long-term prospects. As such, zCapital believes that taking sustainability issues into account leads to more comprehensive analysis and better investment decisions. Based on this conviction, ESG analysis has been an integral part of zCapital's investment process since its inception.
ESG integration
zCapital systematically takes environmental, social and governance (ESG) aspects into account when investing. The Integration of the ESG analysis is done at company level and aims to identify sustainability related risks and chances. Risks should be avoided, or if avoidance is not possible, mitigated and managed. Shares of companies with higher ESG risks are likely to experience higher volatility and possibly weaker share performance in the longer term.
zCapital assesses the sustainability by its own and does not rely on external ESG rating agencies. We have one of the largest research teams for the analysis of Swiss equities and are in close contact with the executives of the companies in the investment universe. The knowledge built up over years forms the basis for being able to comprehensively assess the sustainability of a company. The structured analysis process is supported by a proprietary ESG monitor, which takes into account data from Inrate, ISS, MSCI, RepRisk and Glassdoor. In addition, zCapital collects its own data.
The zCapital Swiss ESG Fund has a stronger focus on ESG risks and opportunities.This is taken into account in the selection and weighting of the individual positions. The companies in the fund are intended to support the achievement of the Paris climate goals and the sustainability goals of the United Nations.
Exclusions
zCapital bases its exclusion criteria on the guidelines of the SVVK (Swiss association for responsible investments). Currently, manufacturers of controversial weapons are excluded.
The zCapital Swiss ESG Fund excludes further companies, whose conduct or products fundamentally contradict the ESG concept. Currently, these are companies which significantly violate the principles of the UN Global Compact or generate more than 5% of sales with the production of nuclear or coal-fired power, coal mining, fracking, oil sands, tobacco, pornography, gambling, armaments or civilian weapons.
Engagement
IzCapital raises shareholder concerns and addresses relevant ESG issues in over 600 meetings with senior executives each year. Through concrete recommendations and exertion of influence, corporate strategy is to be scrutinised and relevant ESG aspects discussed. The aim is to motivate companies to act in a sustainable manner.
zCapital maintains a constructive dialogue with companies in the Swiss equities investment universe, usually with management. If necessary, members of the board of directors are contacted, written enquiries are made, the opportunity to speak at the general meeting is used or requests for items to be included on the annual general meeting agenda are submitted.
Voting
zCapital does not lend securities and always has the shares entered in the share register. Voting rights are exercised systematically. Voting decisions are subject to internal guidelines. Voting recommendations and corporate governance analyses by ISS and Inrate as well as analyses by internal investment specialists are available as information tools.
On this basis, votes are exercised according to the longer-term interests of the company and the shareholders. In addition to financial aspects, ESG criteria are also taken into account. A summary report on the exercise of voting rights is published in the annual report of the zCapital Funds.
Guidelines for the exercise of voting and participation rights (German)
Sustainability report
zCapital publishes a detailed sustainability report on all three zCapital investment funds every six months. In addition to key figures on environmental, social and governance aspects, the report also contains a detailed description of zCapital's engagement activities.
Sustainability report 2022 of the zCapital investment funds (German)