The pension fund for the Swiss canton of Vaud (CPEV) is reviewing and updating its climate strategy to redefine the goals the scheme set in its responsible investment policy for this year.
CPEV will put in place two new measures with regard to so-called green housing and the deployment of photovoltaic installations, it added.
The scheme has conducted a feasibility study to deploy photovoltaic installations on a majority of roofs, launching 20 pilot projects, it said.
In light of the energy crisis, 5,000 out of 8,613 housing units in CPEV’s portfolio, managed by Retraites Populaires (the pension fund’s asset manager), were inspected by specialists to give tenants advice on the actions to take to save energy, it said.
The green housing operations, as the pension fund calls it, are co-financed by the canton of Vaud, contributing to reducing electricity, water and heating consumption, it added.
CPEV has also conducted a preliminary analysis using 15 ESG indicators to identify improvements in terms of sustainability in real estate properties.
The scheme plans to further develop its sustainable approach in real estate by integrating new criteria such as the ecology of materials, soft mobility or the protection of workers, the implementation of ESG indicators according to standards by the pension funds association ASIP, and the implementation of ESG monitoring mechanism for indirect real estate portfolios, the report added.
The scheme is also either considering, or has already taken action, for Retraites Populaires to take part in a working group for the creation of a code of good practice for shareholder engagement in Switzerland.
It is also progressing with investments in infrastructure, finalising the exclusion of the coal sector in its bond portfolios and adapting benchmark indices taking into account low carbon requirements.
CPEV adopted a climate strategy in 2020, committing to a carbon-neutral portfolio by 2050, and to a significant reduction in CO2 emissions geared by real estate holdings.
The climate strategy is an extension of the scheme’s responsible investment policy and it is aligned with the Paris Agreement’s principles.