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Client Testimonial: Nest

Dec 1, 2022

Interview with Nest
Interview with Ulla Enne, Head Operations & Responsible Investing

How did you hear about Inrate and what convinced you to choose Inrate?
As a pioneer in sustainable investing, Nest wanted to consider sustainability in its investments from the very beginning. Compared to today, the market looked very different, there were no sustainable solutions for sustainable equities or bond portfolios. In other words, the entrepreneurial spirit was required. Nest co-founded Inrate together with INFRAS which continues to translate our understanding of sustainability into an investable, sustainable investment universe. This is how the cooperation with Inrate as sustainability analyst, Vontobel as asset manager and Raiffeisen as fund manager came out: It was the birth of the Raiffeisen Futura funds, and Nest acted as the initiator (seed investor) for the launch.

What services do you use today and has it evolved over time?
We use Inrate’s ESG Impact Ratings and have developed a tailor-made universe based on the best-in-service approach. Inrate also supports us with reporting solutions, e.g. on climate or SDGs, and to determine the results after years of implementation. Thanks to Inrate’s climate data and report, we are able to assess the climate impact of our portfolio. The data allows comparison with benchmarks and sector assessments. Most importantly, we need to see the impact of each part of the value chain (upstream and downstream) to fully understand climate-related risks. In fact, their model makes it possible to identify indirect emissions, which in our view are crucial when it comes to contributing to sustainable development. The same applies to SDGs. Thanks to inrate’s SDG portfolio analysis, we are able to report on the contribution of our portfolios to the Sustainable Development Goals and to what extent. It provides full transparency for each SDG. We use it to report top and bottom companies in the portfolio and compare the SDG contribution to the benchmark. The data makes it possible to address specific SDGs and highlight the most positive and negative companies.

 

Can you highlight how Inrate has helped you?
Today, we are still convinced by Inrate’s ESG Impact Rating and Best-in-Service approach. It is aligned with our understanding of sustainability: A company rating should assess the impact of business activities on the environment and society, along the entire value chain. If you only look at CSR criteria, i.e. at companies’ operations and management, it is not enough from a sustainability perspective.

What did you appreciate the most in working with us?
We have always appreciated cooperative partnership and access to the analysts’ team. Plus the passion for sustainability like at Nest.

Portrait: Since its foundation in 1983, Nest has remained true to its guiding principle as the first ecological-ethical pension fund in Switzerland: the optimal provision of our affiliated companies and their employees. This is ensured by our transparent and sustainable investment policy and professional client service. We invest the capital entrusted to us responsibly according to ecological and ethical criteria.

More on Nest

Financial market infrastructure provider SIX announced today the launch of a new climate data offering, aimed at supporting investors in reporting and monitoring of climate factors, and in climate-related investment and risk decision making.

The climate data sets, from various data providers in a range of industries, will provide clients with modelled and reported emissions data, covering over 33,000 companies globally, and bringing together multiple data sets on regulatory, historical and forward-looking climate impacts from providers including MSCI and Inrate. SIX also announced that it has recently entered into an agreement with environmental disclosure platform CDP to offer access to its global Greenhouse Gas (GHG) Emissions Dataset across various industries.

According to SIX, the new data sets come as investors increasingly require ESG and climate data to monitor investment decisions and to meet growing regulatory disclosure requirements, including the EU’s SFDR and the U.S.’ upcoming SEC Climate Disclosure Rules.

Martina Macpherson, Head ESG Product Strategy and Management, Financial Information, SIX, said:

“Understanding, measuring and managing climate risk and opportunities, as well as the impact that these can have on investment decisions, is a critical area of focus for market participants and policy makers alike. As more climate risk monitoring and reporting is required globally, the cost of compliance is increasing – both in operations and in terms of specialist ESG resources. SIX works with established providers of basic and specific ESG and climate data in the market.”