Fund Size: £4841.00m

Total screened & themed / SRI assets: £49415.00

Total Responsible Ownership assets: £174795.00

Total assets under management: £638000.00

As at: 30/04/25

Contact: Contact us: lrichards@pictet.com

Overview

Filters

Fund information

Policy

The investment theme defines our long-term strategic orientation and sustainability objectives.

Investment themes are identified based on our megatrend framework.

The strategy aims to capture investment opportunities across all areas of the global industry, whilst making a positive contribution towards a more sustainable world. The strategy focuses on the following areas:

• Energy efficiency
• Pollution control
• Water supply & technology
• Waste management & recycling
• Sustainable agriculture & forestry
• Dematerialized economy

The companies’ business models must have a low environmental impact, as well as driving & benefitting from development of environmental solutions. We only select companies that make a substantial ‘active’ contribution to solving environmental challenges. This is measured by the strategic importance of environmentally related products and services within the company and by the quality and amount of R&D spent in the environmental domain.

In order to be eligible in the portfolio, at least 20% of the activities of the firm must be related to products and services actively solving environmental challenges.

A dedicated Advisory Board helps the investment managers to track the evolution of the theme and to identify future trends in technology, public policy, and consumption patterns. The Board also helps defining new theme segments.

Board members are recognized experts in their respective domain; they often come from academia, NGOs or the private sector.

Process

Our investment approach uses a unique scientific framework for the purpose of universe construction. The  framework – Planetary Boundaries – was first published in Nature magazine in 2009 (by Johan Rockström (Stockholm Resilience Centre)). It represents the state of the art in terms of the current scientific consensus regarding which environmental challenges matter most. The planetary boundaries framework identifies nine key environmental dimensions (water, climate change, biodiversity, landuse, nitrogen & phosphorous cycle, ocean acidification, ozone depletion, aerosol loading and chemical pollution) and specifies the respective thresholds that humanity shall not cross, lest it is to cause irreversible environmental damage with potentially catastrophic consequences. The area within the boundaries, where human activities can take place safely is called the ‘safe operating space’. We relate planetary boundaries and safe operating space to subindustries and to individual companies.

This allows us to understand how a company’s products and services, taken over their entire life cycle, impact on the nine key environmental dimensions. We can thus see whether a company’s activities lie within the safe operating space, and whether its business model is rather forfeited or favoured by stricter environmental constraints in the future. We only invest in companies within the safe operating space that provide at the same time make an ‘active’ contribution to solving environmental challenges.

We identify an initial universe of listed companies active in the environmental value chain. Out of 40’000 global companies, approx. 3’500 operate within the safe operating space as defined by the Planetary Boundaries framework.

Only companies with sufficient exposure to environmental solutions are eligible for investment. This includes areas such as energy efficiency, pollution control, water supply & technology, waste management & recycling, sustainable agriculture & forestry and the dematerialized economy. 400 of the firms operating within the safe operating space also make an active contribution to solving environmental challenges. These 400 companies are our investable universe.

We include companies in the investable universe only if at least 20% of the enterprise value (or sales, EBIT, EBITDA, or similar measures) is derived from theme-related activities (“purity” to the theme).

When defining the investment universe of Thematic strategies, we systematically exclude stocks that have negative impacts on the environment or society. If a company’s revenues generated by such activities are above the threshold, the company is excluded from the universe.

We also exclude companies in severe material breach of UN Global Compact Principles on human rights, labour standards, environmental protection and anti-bribery/corruption.

Exclusions are based on reliable sources gathered from reputable third-party research providers. Pictet AM retains full discretion over exclusions and always reserves the right to deviate from third party information on a case by case basis.

We monitor the exposure to all activities that might be perceived as controversial by some investors. We use Sustainalytics as our external data provider and enhance it with company disclosures and our own research.

Resources, Affiliations & Corporate Strategies

Pictet Asset Management has a dedicated ESG Team which leads and co-ordinates implementation of our responsible investment policy, including ESG integration in investment processes, ownership practices, risk management and reporting tools. The ESG Team reports directly to Sébastien Eisinger, Managing Partner Pictet Group, Co-CEO Pictet Asset Management and Head of Investments.

Key responsibilities include:
 

Investments

• Selection and due-diligence of external data providers in collaboration with investment teams and other B/Ls
• Development of proprietary assessment methodologies (eg sector-specific “E&S Deep Dives”, sovereign issuers)
• Integration of relevant ESG datasets in IT systems and definition of quality checks
• Training and awareness raising of investment teams

Active Ownership

• Definition of engagement strategy and proxy voting policy
• Co-ordinate targeted engagements and participation in collaborative initiatives
• Consensus building between investment teams on specific resolutions

Pictet Asset Management has been a signatory of the UNPRI since 2007. In addition, Pictet Asset Management actively participates in several investor initiatives aimed at sharing best practices between asset managers and owners and encouraging corporate disclosure on ESG issues. We are notably involved in the IIGCC (Institutional Investors Group on Climate Change), SSF (Swiss Sustainable Finance) and similar organisation in the UK, Germany and Spain.

 Pictet Group and / or Pictet Asset Management supports and actively participates in international and national initiatives, organisations and partnerships including:

Organisation / Initiatives / Partnerships, Pictet's involvement,  year, and key areas of focus: 

• FNG, SpainSIF: Member, 2006 - Transparency on ESG
• UNPRI: Signatory, 2007 - Transparency on ESG
• Copenhagen Institute for Futures Studies (CIFS): Member, Research Partnership: Megatrends Research, 2007 - Interdisciplinary academic disciplines
• CDP: Member, 2007 - Carbon
• Swiss Climate Foundation: Corporate sponsor, 2008 - Climate
• Sustainable Finance Geneva (SFG): Institutional Partner (Pictet Group), President Strategy and Surveillance Committee, 2008 - Promotion of sustainable finance
• EFAMA (European Fund and Asset Management Association): Member of the Stewardship Market Integrity & ESG Investment Standing Committee, 2010 - Fund and Asset Management
• Climate Bond Initiative: Member of the Standards Board, 2013 - Climate
• IIGCC (Institutional Investors Group on Climate Change): Member of the Adaptation & Resilience Working Group, 2013 - Climate
• FTSE Environmental Markets: Member of the Advisory Committee, 2013 - Environment
• Swiss Sustainable Finance (SSF): Founding member, 2014 - Promotion of the integration of sustainability in the financial industry
• JP Stewardship Code: Signatory, 2014 - Stewardship standards
• Stockholm Resilience Centre (SRC): Research Partnership: Planetary Boundaries Framework (from 2014-ongoing), Mistra Biodiversity Finance programme (from 2022), 2014 - Core focus is to advance research in the frontier of biosphere-based sustainability science, applying a social ecological approach and resilience thinking
• Investment Association: Member of the Sustainability and Responsible Investment Committee , 2018 - Stewardship and Corporate governance
• Climate Action 100+: Collaborative Engagement, 2018 - Climate
• Access to Nutrition Initiative (ATNI): Signatory (Pictet Group), 2018 - Delivery of nutritious, affordable foods.
• Empower: Partnership, 2019 - Youth at Risk
• UNEP Finance Initiative: Signatory (Pictet Group), 2019 - Environment
• Task Force on Climate-related Financial Disclosures (TCFD): Signatory, 2020 - Consistent climate-related financial risk disclosures
• FAIRR: Member, 2021 - Animal agriculture
• ICGN (International Corporate Governance Network): Member, 2021 - Governance
• Science Based Targets Initiative (SBTI): Signatory (Pictet Group), 2021 - Climate
• Net Zero Asset Managers Initiative: Signatory (Pictet Group), 2021 - Climate
• ESG Data Convergence Project: Steering Committee member (Pictet Group), 2021 - ESG metrics
• UN Principles on Responsible Banking: Signatory (Pictet Group), 2021 - Sustainable/responsible banking
• UK Stewardship Code 2020: Signatory, 2022 - Stewardship standards
• Institute of International Finance (IIF) : Research Partnership: Bonds that build back better, 2022 - Green, transition, social, sustainability & sustainability-linked bonds
• Responsible Investing Association (RIA): Member, 2022 - Canada's industry association for responsible investment
• Ceres Valuing Water Finance Initiative: Signatory (Pictet Group), 2022 - Water
• Finance for Biodiversity Foundation: Member (Pictet Group); participants in the Impact Assessment and Engagement Working Groups, 2022 - Biodiversity
• Taskforce for Nature-related Financial Disclosures (TNFD): Member of TNFD Forum (Pictet Group), 2022 - Risk management and disclosure framework on nature-related issues
• UN Global Compact: Signatory (Pictet Group), 2022 - Global sustainability principles

Source: Pictet Asset Management (April 2023)

Other industry associations:

Name, Involvement of Pictet Asset Management, Year and Scope

• Asset Management Association Switzerland (AMAS): Member (Pictet Group), Member of the Distribution, Taxes Specialist Committees , 1993 - Swiss Asset Management industry development
• German Investment Funds Association (BVI): Member, 2004 - German Asset Management industry development
• International Capital Markets Association (ICMA): Member, xxxx - Securities market

Furthermore, Pictet, together with Swiss Sustainable Finance, was leading an initiative to put pressure on index providers to remove controversial weapon manufacturers from mainstream indices. The initiative, launched in August 2018, secured the backing of 174 signatories controlling over USD 9.7 trillion and including international asset owners and managers (as of January 2020). This initiative has now been closed due to inclusion of controversial weapons exposure disclosures in draft RTS and EU Benchmarking regulation.

Literature

• Fund overview & literature (including factsheet)
• PAM Responsible Investment Policy

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The information and data presented in this document are not to be considered as an offer or solicitation to buy, sell or subscribe to any securities or financial instruments or services.  

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This material does not contain sufficient information to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any products or services offered or distributed by Pictet Asset Management. Pictet Asset Management has not ensured the suitability of the securities mentioned in this document for any specific investor, and it should not be relied upon as a substitute for independent judgment; investors are advised to determine the suitability of the investment based on their financial knowledge, experience, goals and situation, or to seek specific advice from an industry professional before making any investment decisions. Investors should read the prospectus or offering memorandum before investing in any Pictet managed funds. Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future.

Past performance is not a guide to future performance.  The value of investments and the income from them can fall as well as rise and is not guaranteed. Investors may not get back the amount originally invested. This document has been issued in Switzerland by Pictet Asset Management S.A. and in the rest of the world by Pictet Asset Management (Europe) S.A., and may not be reproduced or distributed, either in part or in full, without their prior authorisation.

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The latest version of the fund‘s prospectus, Pre-Contractual Disclosure (PCD) when applicable, Key Investor Information Document (KIID), annual and semi-annual reports must be read before investing. They are available free of charge in English on pictet.com/assetmanagement or in paper copy at Pictet Asset Management (Europe) S.A., 6B, rue du Fort Niedergruenewald, L-2226 Luxembourg, or at the office of the fund local agent, distributor or centralizing agent if any. The KIID is also available in the local language of each country where the compartment is registered. The prospectus, the PCD when applicable, and the annual and semi-annual reports may also be available in other languages, please refer to the website for other available languages.  Only the latest version of these documents may be relied upon as the basis for investment decisions.

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The mentioned financial instruments are provided for illustrative purposes only and shall not be considered as a direct offering, investment recommendation or investment advice. Reference to a specific security is not a recommendation to buy or sell that security.

Past performance is not a guarantee or a reliable indicator of future performance. Performance data does not include the commissions and fees charged at the time of subscribing for or redeeming shares.

This document is not in scope for any MiFID II/MiFIR requirements specifically related to investment research.

As part of its sustainable investing efforts, Pictet Asset Management (“Pictet”) utilises the SDG logos, icons and colour wheel as illustrations to advance the firm’s sustainable targets and goals. The SDG logos, icons and colour wheel are and remain the intellectual property of the United Nations. The United Nations is in no way affiliated with Pictet. This material contains certain artistic or designed elements for which copyrighted materials shall be used for illustrative purposes only. The content of this publication has not been approved by the United Nations and does not reflect the views of the United Nations or its officials or Member States and further the United Nations did not endorse the content or data behind the SDG logos, icons and colour wheel. All content and data have been compiled by Pictet for the advancement of the goals and should not be considered as a direct offering, investment recommendation or investment advice. Pictet makes no ownership claims for the colours, shapes, or names as shown in the illustrations. All design rights remain the design rights of the United Nations. For more information on United Nations Sustainable Development Goals please go to: https://www.un.org/sustainabledevelopment. 

Last amended: 25/01/24 10:45