What is the Ethos Project?
The Ethos Foundation is a Swiss initiative created by and for pension funds, aiming to enable sustainable and responsible investment. At its core, Ethos Services acts as the operational arm, offering a comprehensive range of socially responsible investment (SRI) services. These include sustainable investment funds, stock indices, and tools for active shareholding. The goal? To empower both institutional and private investors to exercise their shareholder rights and encourage companies to improve their environmental, social, and governance (ESG) practices. In short, Ethos is about making investments that align with values and drive positive change.
Main Benefits of the Ethos Project
Ethos delivers a powerful blend of expertise and tools that help investors make a real difference. Here are some key figures and facts that highlight its impact:
- Over 2,000 analyses and ratings of listed companies and bond issuers, covering Swiss SPI index companies, MSCI World ex-CH, MSCI EM indices, and Swiss Bond Index AAA-BBB issuers.
- Annual voting recommendations for more than 200 general meetings in Switzerland and 500 abroad, based on detailed corporate governance reviews.
- Active engagement pools that amplify investor influence in shareholder dialogues, focusing on improving ESG practices.
- Launch of the “BCV FUND (LUX) – Ethos Climate ESG Ambition” fund, celebrating its first anniversary in 2025, investing in companies contributing to ecological transition.
- Online training modules available in French, English, and German, designed to deepen knowledge of sustainable finance and socially responsible investment.
Engagement and Dialogue: Driving Change Through Shareholder Action
Ethos believes in the power of active ownership. The shareholder dialogue, or engagement, is a cornerstone of its approach. By joining collective engagement initiatives and pools, investors gain greater weight and influence when interacting with company management. The aim? To encourage companies to enhance their environmental, social, and governance practices. This dialogue isn’t just about pressure—it’s about creating sustainable value for shareholders and all stakeholders involved. It’s a constructive but demanding conversation, especially on critical topics like biodiversity and climate change.
Voting Rights: Exercising Influence at General Meetings
One of the most effective tools for shareholders is the exercise of voting rights. Ethos supports this by issuing annual voting recommendations for hundreds of general meetings, both in Switzerland and internationally. These recommendations are grounded in thorough analyses of agenda items, corporate governance principles, and Ethos’ own voting guidelines, which are updated every year. The information provided includes insights into company boards and executive compensation, helping investors make informed decisions that align with sustainable and responsible investment goals.
Climate and Sustainability Analysis: Measuring Impact and Risks
Ethos has developed a unique methodology called “Ethos climate transition ratings” to evaluate the credibility of companies’ climate transition plans and assess how climate change impacts their activities. This tool helps institutional investors measure how well their portfolios align with climate objectives and manage exposure to climate risks. Beyond measurement, it also serves as a platform for engaging companies on climate issues. Complementing this, Ethos offers detailed sustainability analyses and reporting solutions that support voting and engagement efforts, making climate considerations an integral part of investment decisions.
Project Impact: Linking to Sustainable Development Goals (SDGs)
- SDG 13: Climate Action – through climate transition ratings and investments in ecological transition.
- SDG 15: Life on Land – via engagement on biodiversity management and minimizing company impacts.
- SDG 8: Decent Work and Economic Growth – by promoting fair executive compensation and governance.
- SDG 12: Responsible Consumption and Production – through sustainable investment funds and ESG screening.
- SDG 17: Partnerships for the Goals – by fostering collective shareholder engagement and dialogue.
Training and Education: Building Knowledge for Sustainable Finance
Ethos also places a strong emphasis on education. Its online training platform offers five foundational modules on sustainable finance fundamentals, available in French, English, and German. These courses are tailored for pension sector representatives and anyone interested in socially responsible investment and governance issues. The modular design allows participants to learn at their own pace, adapting to their needs and prior knowledge. This educational approach ensures that investors and stakeholders are well-equipped to navigate the complexities of sustainable investment and active ownership.
