Company mission
Bank Sarasin is a leading Swiss private bank whose many years of banking experience has made it consciously opt for sustainability as a key component of its corporate philosophy. It provides a high level of service and expertise when acting as investment advisor and asset manager for private and institutional clients.
As an international financial service provider committed to sustainability, the Group is now represented in 22 locations in Europe, the Middle East, and Asia. By end of 2009 it managed total client assets of CHF 93.7 billion and employed around 1,500 staff. Its majority shareholder is the AAA-rated Dutch Rabobank.
Legal form
Limited Company (Aktiengesellschaft)
Ownership
Majority stakeholder, Rabobank, owned as of 12/31/2009 68,6% of voting rights and 46,1% of the equity capital in Bank Sarasin.
Foundation:
1841
Executive Board
Executive Committee: J. H. Strähle, F. M. Götz, T. Müller, P. Sami, E. G. Sarasin, Dr. B. P. Varnholt, P. Wild
Number/qualification of employees
Bank Sarasin has an expert team of 11 sustainability analysts. The interdis-ciplinary team, which performs the sustainability research consists e.g. of an industrial engineer, a geographer, a bioengineer and an environmental scientist. Because of their qualifications, they have special knowledge and therefore have a well-founded insight into their assigned industry groups. The professional experience of the team is on average 14 years.
Advisory Board/Council
An interdisciplinary Advisory Committee provides advice for the Sarasin funds (except third party funds). Central task of this Advisory Committee is the periodical re-assessment of the applied sustainability criteria, exclusion criteria and investment strategy from a sustainability perspective. In case of the Sarasin OekoSar Equity – Global the Advisory Committee also discusses individual companies proposed for investment. In this special case the Advisory Committee has a de facto (but not de jure) right to veto the inclusion into the investment universe.
Members of the Advisory Committee are: Mrs. Margit Huber, Mrs. Heike Leitschuh, Mr. Klaus Günther, Prof. Dr. Volker Hoffmann, Prof. Dr. Stefan Schaltegger, Mr. Christian Speich.
Cooperations/Memberships
Forum für nachhaltige Geldanlagen, Schweizerische Vereinigung für ökologische bewusste Unternehmensführung, Centre of Sustainability Management an der Universität Lüneburg, Zentrum für Nachhaltigkeit der ETH Zürich, Association for Responsible & Sustainable Investment Asia, European and UK Social Investment Forum, Carbon Disclosure Project, Emerging Market Disclosure Project, UNEP Finance Initiative, London Accord, Principles for Responsible Investment (PRI), Forest Footprint Discolsure Project, CDP Water Discolsure Project, Social Investment Forum ESG Disclosure Project (USA), Access to Medicine Index, Investors' Statement on Payments Transparency in the Extractive Sectors (EITI), 2008 Investor Statement on a Global Agreement on Climate Change, 2009 Investor Statement on the Urgent Need for a Global Agreement on Climate Change.
Background
Our basic investment philosophy for sustainable investments is based on the assumption that sustainability (ecological and social criteria) has a strong correlation to the competitiveness of a company or a country. In this context, sustainability influences also the financial risks of equities and fixed income securities.
Sarasin defines Sustainable Management as the production of goods and services with broad social acceptance using production methods with a low potential for conflict.
Especially, the interdependency of ecological, social and economical aspects.
Research
Gathering information is the basis of every sustainability assessment. Sarasin Sustainable Investment uses the following sources, amongst others:
- generally accessible company information and reports (e.g. annual report. sustainability report)
- company visits and management contacts
- information from specialised data providers (e.g. Asset4 - www.asset4.com)
- systematic monitoring of the print media
- specialised electronic media and the Internet
- research reports
- contacts with non-governmental organisations
The analyst responsible interprets this information on the basis of a comprehensive list of criteria. The results for each criterion are converted into a value (score) and (along with the documentation used) entered into a proprietary database (Sustainable Value Builder). The data are then assessed using a numerical scoring system. The analyst conducts a plausibility check on the result and refines it where required. Finally, there is a peer review.
The selection of non-Sarasin investment vehicles (funds, structured products etc.) for the sustainable fund-of-funds Sarasin OekoFlex (EUR) is based on product presentations and information gathered through direct contact with the fund provider. The selection of funds and other financial instruments is based on an assessment by the sustainability analysts as to whether an investment can be regarded as acceptable from a sustainability perspective. In the case of external fund providers, their sustainability strategy and the corresponding sustainability research processes are analysed, and the decision whether our quality standards are satisfied is taken on this basis. This analysis is conducted in particular detail where the inclusion of new asset classes is considered. Details on the methodological approach adopted by the funds in question can be drawn from their reporting – if any - under the European Transparency Code.
Criteria
Negative: Companies that are generating more than 5% of consolidated revenues with activities in the following areas are excluded from in the investment universe: Nuclear power, armaments, chlorine and agrochemicals, tobacco, genetic engineering used in farming, pornography.
Also excluded are – independent of its share of sales – the 30 biggest military contractors globally, as well as the 10 companies with the biggest global sales in GMO seeds.
For the Sarasin OekoSar Equity – Global substantial infringements of ILO core conventions are an additional exclusion criterion.
The sustainability rating of investments is each composed of two constituents.
For companies, these are:
- the sector rating: Every sector is given a rating that shows its contribution to environmental and social risks. The main benchmark here is the industry’s environmental relevance (for example: airlines consume a lot of energy, while financial service providers consume far less) and social relevance. The assessment is based on the environmental and social impact along the entire life cycle of products and services. The valuation criteria are: resource consumption, emissions, degree of centralisation as well as internal and external potential for conflicts.
- the company rating: Here the effective performance of each company relative to its industry is analysed. This is based on the life cycle concept, where we examine the environmental aspects of pre-production sourcing, production processes, products and services, as well as the environmental strategy/policy and environmental management systems. This analysis focuses on seven key environmental criteria: energy intensity, material intensity, toxicity, revalorisation, use of renewables, durability and service intensity. Our assess-ment of the social rating is based on the stakeholder approach and examines the company’s relationship with its suppliers, investors, the public sector, and its employees, clients and competitors. The analysis examines four key as-pects: public health, participation, distribution of wealth and know-how.
The scales used for the evaluation of companies are based on international conventions or on recommendations made by international organisations.
For countries (issuer of bonds), two dimensions are distinguished and rated:
- in the first dimension, we measure the availability of resources. Here, using a grid with a total of four criteria (ecological capital; climate change gains/losses; human, material and immaterial capital; financial assets/liabilities), we take into account in the first place the current data but also the future availability of natural, social and financial resources. Together these resources constitute the basis of any kind of economic activity.
- in the second dimension the efficiency of the transformation of resources into quality of life and the efficiency of the economical, political and social processes. For this assessment we divide the data into six principal criteria: material wealth, education, health, economic structure, sovereign governance and social conditions. The first three measure how efficient resources are transformed into quality of life. The last three measure the efficiency of the economical, political and social processes which are necessary for an efficient use of resources.
Ranking-/Rating-System
The analyst responsible interprets this information on the basis of a comprehensive list of criteria. The results for each criterion are converted into a value (score) and (along with the documentation used) entered into a proprietary database (Sustainable Value Builder). The data are then assessed using a numerical scoring system. The analyst conducts a plausibility check on the result and refines it where required. Finally, there is a peer review.
The findings go into the ratings and are finally plotted in the below shown Sarasin Sustainability-Matrix.
Further information you will find in our European Transparency Code for sustainable retail funds and in documents beneath the respectable funds under the following link: www.sarasin.ch private clients products investment funds sustainable funds.
Quality Management:
The research process is continuously reviewed and adapted if necessary. The process employed since 1998 still meets our high internal quality standards and so far only minor details have been refined.
Products & services
Sarasin Sustainable Investment offers a variety of sustainable investment vehicles and taylormade asset management for different needs.
In addition, the following sustainable retail funds of Bank Sarasin are available:
Clients
Besides the private and institutional mandates, Sarasin Sustainabe Investment manages the following third party funds:
Third party funds (available Germany, Austria and/or Switzerland):
other third party funds:
- CF 7IM - Sustainable Balance Fund OEIC
