The Academic Association of Scientific Staff at ETH university in Zurich (AVETH) is urging the CHF45bn (€48bn) Swiss pension fund Publica to reinforce its responsible investment policy.
AVETH is asking Publica to define a “firm, non-negotiable requirement” for its climate-efficient equity index, to require all asset managers to set net-zero targets, and to establish a clear timeline for engagement with companies before excluding them from the investments, the association said in a statement.
Of the 19 managers, including five for corporate, infrastructure and real estate debt investments, and 14 international real estate funds, 15 have set net-zero targets at portfolio manager level by 2050, according to Publica’s responsible investment report for 2025.
Closing the gap transforms a quasi-standard into a single, uniform requirement, according to AVETH.
The request relating to the equity index, which underweights companies exposed to climate risks, follows the decision taken by Publica last year to scale back requirements as a result of changing market conditions in Switzerland and Europe.
Further requests from the academics, who make up 15% of Publica’s members still working, include reinforcing the decarbonisation of real estate assets held by the pension fund abroad, using the standards provided by Carbon Risk Real Estate Monitor (CRREM) Foundation, and sourcing gold exclusively from members of Swiss Precious Metals Association (ASMP), instead of relying on the standards of the London Bullion Market Association (LBMA).
“We expect a response, either publicly or privately, on whether they [Publica] agree or disagree with our proposals, why or why not and their planned [or not planned] actions moving forward. This response is expected at the latest by our next annual meeting,” the association told IPE.
In its statement, Publica said it is aware of AVETH’s demands, but declined to comment further.
Going forward, however, the pension fund intends to deepen the engagement with asset managers and to review its responsible investment strategy to potentially include Sustainable Development Goals (SDGs), and impact investment principles, according to AVETH’s statement.
