Sustainability

Ethos has implemented a number of measures to reduce its environmental and climate impact. In particular, business travel within Switzerland is made by public transport, season tickets for public transport and bicycle parking are reimbursed, greenhouse gas emissions from flights that cannot be avoided are offset, all publications are printed on recycled paper, the Geneva head office is located in a Minergie building (100% renewable energy), and preference is given to service providers using renewable energy.

As part of its climate strategy, Ethos has committed itself to: to strengthening its responsible purchasing policy and introducing a list of requirements for its service providers in terms of environmental responsibility; reducing paper consumption (in kg per employee) by 50% by 2025; applying the principle of sobriety to all consumption (IT equipment, water, waste); and always favouring short circuits and the circular economy.

Ethos uses the following means of action to reduce the emissions associated with  the investment funds it offers its clients (financed emissions):

• ESG analyses and carbon rating: to eliminate companies with a high carbon intensity and, conversely, to favour those that take into account the energy transition, that have set credible climate targets, or whose products and services contribute to the fight against climate change.
• Ethos climate transition ratings: to assess companies' climate commitments as well as the measures they have implemented and the results they have achieved in to containing and reducing their GHG emissions. Each company evaluated is given a temperature score based on its past emissions, its reduction targets and the level of credibility of its climate strategy.
• Engagement: through its dialogue programmes, Ethos raises companies' awareness of climate issues and the need to reduce their GHG emissions. One of the main aims is to encourage them to set ambitious and credible climate targets to limit global warming to 1.5°C. As part of its climate strategy, Ethos has decided to intensify its dialogue with companies in the funds that have not yet set scientifically validated reduction targets. 
• Exercising shareholder rights: Ethos supports items on the agenda of a general meeting aimed at increasing transparency or climate strategy. Ethos also calls on companies with the highest greenhouse gas emissions to submit their climate strategy to a shareholder vote. Finally, Ethos opposes the re-election of the chairperson of the sustainability committee - or of the board of directors if there is no such committee - of a company with high emissions that has not put in place a sufficiently convincing climate strategy or set scientifically validated reduction targets.
• Exclusions: companies that derive more than 5% of their turnover from coal or non-conventional oil and gas are excluded from Ethos funds. Companies that contribute significantly to global warming without taking convincing measures to reduce their impact are also excluded. From 2025 onwards, companies active in fossil fuels that have not set scientifically validated reduction targets will also be excluded from Ethos funds.
• Positive Impact Methodology: In order to contribute to the solutions needed for the real economy to achieve the global "Net Zero" objective, Ethos has developed its own positive impact methodology that identifies companies active in sectors or activities that have a positive impact on the environment or society. This methodology makes it possible to target companies that offer innovative solutions to the challenges of sustainable development, particularly with regard to the energy and ecological transition.

Ethos' objective is to help its members and clients manage all the effects of climate change and, consequently, reduce their greenhous gas emissions:

• Services 100% dedicated to sustainable investment: the analyses (ESG, climate, positive impact) offered by Ethos enable investors to better manage climate risks and to prioritise investments in companies that take climate issues into account or whose activities have a positive impact on the environment. Active shareholding tools (engagement, voting at general meetings, filing of shareholder resolutions) enable investors to encourage companies of which they are co-owners to reduce their GHG emissions. 
• Knowledge sharing: through the development and publication of its positive impact and climate transition ratings methodologies, Ethos aims to actively contribute to a scientific and accessible understanding of the climate protection performance of major companies. Ethos is committed to sharing publicly relevant information on the results and methodology of its analytical approach. 
• Raising awareness: whether through position papers, participation in conferences and the publication of studies and reports, Ethos regularly communicates on the importance of integrating climate change issues in investment policies. Ethos also offers training to pension fund board members on sustainable development and climate protection. Finally, Ethos actively cooperates with financial market regulators, whether through participation in consultations or by taking a public stance on climate change issues.