AVENA’s portfolio earns an A– score on ESG issues

A report by third-party ESG verifier Conser shows that AVENA’s portfolio is outperforming the benchmark on ESG issues. The strategies we’ve implemented are paying off, and we’ll continue building on them as we take the next steps – which include publishing a sustainability report, as recommended by the Swiss Pension Fund Association (ASIP).

So how are we doing? In 2022, AVENA’s Pension Board decided to have our responsible investment practices evaluated to better prepare for the future. After assessing our portfolio according to environmental, social, and governance (ESG) criteria, Conser awarded us an overall score of A–. This places us above the benchmark of B, on a scale that ranges from D (poor) to A+ (very good).

Conser has developed a methodology (ESG Consensus®) that it uses to compare different portfolios and produce a broad picture of a portfolio’s sustainability. “We assess all underlying assets and the final score reflects the portfolio’s average level of sustainability. We also evaluate the portfolio’s exposure to major controversies, sensitive sectors, and climate change,” said a Conser spokesperson. For AVENA’s portfolio, Conser only analyzed stocks and bonds, which make up two thirds of the portfolio. We received a score of A for the bond component and A– for the stock component. Our direct real-estate investments are being evaluated by real-estate specialist SignaTerre.

According to the report, AVENA is above the benchmark when it comes to adhering to international standards on issues like corruption, environmental damage, and human rights. This is also the case for controversial sectors like the alcohol industry, GMOs, nuclear energy, and adult entertainment. As for the portfolio’s impact on the environment, our exposure to fossil fuels is below the benchmark, and our exposure to carbon-intensive companies and sectors – which reflects the ratio between our holdings’ emissions and revenues – sits below 12%.

These scores “show how productive discussions have been between the AVENA Pension Board and BCV, the fund manager,” said Francis Bouvier, the director of AVENA. “The report will be used to define and assess our long-term sustainability strategy.”

Continuing along this positive trajectory, AVENA intends to come up with a sustainability charter and will begin publishing a sustainability report this year, in keeping with ASIP recommendations.

 

 

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If I decide to work at 80% rather than full-time, can I make voluntary contributions to make up for the difference in pension savings?

Submitted by tanguy.nicole@bcv.ch on Mon, 03/04/2024 - 14:23

If you are over 58, you can maintain the same pensionable salary as when you were working full-time. If you are under 58, or if you are already working part-time, your pensionable salary will be based on 80% of your full-time salary. Depending on your personal situation, you can make up for the loss in pension savings by making voluntary contributions.

Is it better to make voluntary contributions to my occupational pension or larger contributions to my private pension? How will it affect my taxes?

Submitted by tanguy.nicole@bcv.ch on Mon, 03/04/2024 - 14:21

Both voluntary contributions to your occupational pension and contributions to your private pension are tax-deductible. In 2023, it was possible to deduct up to CHF 7,056 for private pension contributions. If you have an occupational pension plan with AVENA, your maximum voluntary contributions will depend on your personal situation.

Can I withdraw the full amount of my occupational pension if I’m leaving Switzerland for good? If so, how do I let AVENA know?

Submitted by tanguy.nicole@bcv.ch on Mon, 03/04/2024 - 14:08

Your employer will inform us that your employment contract is ending. We will send you an addendum to the termination notice, which you can use to let us know that you will be leaving Switzerland for good. You will have to send us the necessary supporting documents, including a certificate of departure issued by the local resident registration office, proof that your work permit has been cancelled, and proof of residence issued by your new country of residence.

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