Our approach

Swiss legal norms and values

The Swiss pension funds and insurance companies that are members of SVVK-ASIR all serve a large and diverse section of the Swiss population. Therefore, our basis for action are the legal norms and values defined by democratic consensus. They are expressed in the Federal Constitution, laws and ordinances, and in the international conventions ratified by Switzerland. This approach guarantees the greatest possible objectivity.

Examples of standards violations

Sustainability issue (ESG)
Violation of norms
International convention
Incorporation in Swiss law*
Example
Human Rights
People’s right to dispose of their natural resources.
International Covenant on Economic, Social and Cultural Rights (1966)

A company operates a natural resource extraction or an infrastructure project with a major impact on the natural resources of the local population without their free consent.

Example: CK Power Public Co.

Labour rights
Forced labour
ILO Declaration on Fundamental Principles and Rights at Work (1988) and the Forced Labour Convention (1930)

A company restricts the freedom of its employees, withholds their identity documents or forces them into debt bondage by charging high fees.

Example: OFILM Group

Environment
Endangering protected areas
The World Heritage Convention (1972)

The activities of a company or its funded projects threaten a protected area (e.g. a UNESCO World Heritage Site or Biosphere Reserve).

Example: EXIM Bank of India

Governance
Corruption, bribery, extortion or money laundering.
United Nations Convention against Corruption (2003)

A company corruptly seeks to circumvent or undermine the justice system by destroying relevant evidence or by attempting to bribe or otherwise influence judges or witnesses to take certain actions or give testimony.

Example: Petróleos de Venezuela

Cluster munitions
Development, production, stockpiling and trafficking of cluster munitions, as well as support for such acts, is prohibited.
Convention on Cluster Munitions (2008)

A company produces the detonators for cluster bombs, a key component that contributes to the lethality of the weapon. In the case of producers of controversial weapons, we do not seek dialogue, as the product itself does not comply with our normative basis. SVVK-ASIR therefore recommends that the company in question be excluded.

Example: Aryt Industries

*SR: A compilation of all Swiss federal laws, ordinances, and international treaties that are in force published by the Swiss Confederation.

Portfolio monitoring

SVVK-ASIR's activites are based on close cooperation with several selected international and Swiss experts in sustainability investment research. This enables the identification and independent verification of violations of the normative basis, essentially, violations of human rights, core labour standards and environmental rights, as well as corruption and fraud.

Our partners in identifying norms violations are ISS-ESG, ECOFACT, Sustainalytics und RepRisk.

Seeking dialogue

Companies can violate our normative basis both with their products (business lines) and with how they operate (business conduct). In the first case, we seek to enter a targeted dialogue with the company in question. Demonstrable, severe and systematic violations (i.e., repeated breaches) constitute the conditions for an engagement dialogue. We consider dialogue to be the most effective instrument to achieve a positive change. Specialised external investment providers with the relevant network and expertise are appointed to engage in the dialogue (learn more about our partners).

Recommendations for exclusion

If direct dialogue has taken place with a company identified as problematic, but this has not led to any improvement, we reserve the right to recommend the company for exclusion.

In the case of producers of banned weapons such as cluster munitions, anti-personnel mines, and nuclear weapons, dialogue is unlikely to produce any change, which is why we will not seek dialogue in these cases. Their products violate Swiss laws and internationally recognised conventions, namely the Ottawa and Oslo Conventions and the Treaty on the Non-Proliferation of Nuclear Weapons.

This list is regularly updated and made available to our members and published on this website. The decision to follow a recommendation and divest a company remains entirely with each individual member of the association.

SVVK-ASIR normative basis

For more information: Normative Basis of SVVK-ASIR