Ethos published the annual summary reports of its engagement programmes, the Ethos Engagement Pool (EEP) Switzerland and International. These reports present the dialogue activities carried out during the past year with listed companies on environmental, social and governance issues. While the summary reports are available on the Ethos website, the detailed reports are reserved for members of the two pools.
The shareholder dialogue programme of Ethos continued to attract new members in 2023. The Ethos Engagement Pool (EEP) Switzerland, which focuses on the 150 largest listed companies in the country, had 179 members at the end of 2023 (total assets of CHF 346 billion), compared with 167 members a year earlier.
EEP International, launched in 2017, had 111 members, 11 more than a year earlier. This pool has a total of CHF 280 billion in assets under management, which gives it a certain influence when it comes to discussing and, above all, advocating ESG best practice with listed companies.
Climate reporting requirements
Diversity, climate change, remuneration, fiscal and digital responsibility, respect for working conditions. In 2023, Ethos held numerous discussions and dialogues activities with companies listed in Switzerland. Ethos has recorded more than 400 written or oral contacts with companies included in the universe covered by the EEP Switzerland.
The second half of the year was also an opportunity to discuss the new provisions of the Swiss Code of Obligations, in particular the fact that companies listed in Switzerland must now prepare a sustainability report and submit it to a shareholder vote. Ethos took the opportunity to remind the companies concerned of its requirements, in particular the importance of following a reporting standard, submitting the report to external verification, and publishing quantitative indicators for social issues (turnover rate, accident rate, pay gap, etc.).
Ethos also asks companies to set credible and ambitious targets for the various relevant indicators, particularly in relation to climate change. In this respect, we note that 26 companies in the universe covered by EEP Switzerland now have climate objectives that have been validated by a third party as being compatible with a global warming scenario of 1.5°C or much less than 2°C (compared with 19 companies a year earlier).
Biodiversity and regulations
In addition to the recurring themes of dialogue, the EEP International has also focused on issues related to biodiversity and the circularity of the economy in its activities in 2023. In particular, Ethos and the members of EEP International participated in the launch of the "Nature Action 100" initiative, which aims to address the issue of the destruction of nature and its impact on the long-term value of business. Ethos is also responsible for direct dialogue with the three Swiss companies targeted by this campaign: Nestlé, Novartis and Roche.
Ethos and the members of EEP International have also supported campaigns that aim to further regulate companies' ESG practices, whether to better regulate climate reporting or the use of artificial intelligence, for example. The dialogue with organisations and authorities is based on the conviction that sustainability challenges must also be tackled systemically.
EEP Switzerland: Activity report summary 2023 (in French)
