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The Pension Fund sees exercising its ownership and voting rights and engaging in dialogue with companies as key elements of its sustainability strategy for its equity and bond investments. Our Pension Fund believes that these are two important tools for making a real impact on the companies and their actions.

Exercise of voting rights

The Pension Fund fulfills its obligations as a shareholder and influences corporate management by exercising the voting rights from its equity investments.

The ESG Committee of the Pension Fund defines the criteria and principles applicable to how voting rights are exercised to ensure that this is done uniformly across all companies in line with its sustainability strategy and climate strategy. The Pension Fund exercises its voting rights in all Swiss firms listed either in Switzerland or abroad, and therefore complies with the legal requirements (Verordnung gegen übermässige Vergütungen bei börsenkotierten Aktiengesellschaften – Ordinance against Excessive Remuneration with Respect to Listed Stock Corporations). In addition to ensuring compliance with the legal requirements, voting rights are also exercised by larger foreign companies, which can significantly increase the effectiveness of voting rights. The ESG Committee reviews the established voting policy at least once a year and assesses whether to expand voting right activities to additional companies and/or markets on an ongoing basis.

For the purposes of transparent communication with our insured, the Pension Fund publishes a summarized version of its voting rights criteria, the individual voting instructions for each company two days after its annual general meeting, and an annual active ownership report with the most important key data for the past year.

Engagement

The Pension Fund believes that active dialogue with companies is an important part of a sustainable investment strategy. The Pension Fund engages in active dialogue to address topics that are not dealt with (to a sufficient extent) during an annual general meeting and pursues these topics on a long-term basis outside of the annual general meeting. Rather than excluding companies, engagement enables solutions to be sought in collaboration with the companies and promotes best practice standards.

The Pension Fund pursues a structured, long-term engagement strategy with the companies it invests in. The Pension Fund works with Federated Hermes, an external engagement specialist, to enhance the effectiveness and influence of its engagement. On behalf of and in line with the objectives of the Pension Fund and other investors, Federated Hermes maintains a structured dialogue with companies on environmental, social, and governance topics. The dialogue on behalf of several investors increases the influence on the company and consequently the effectiveness of the engagement. The Pension Fund's ESG Committee manages the collaboration with Federated Hermes and is actively involved in formulating the strategy. Further information on Federated Hermes and the annual report on our engagement activities can be found at the adjacent link.

Other topics

Sustainability strategy and climate strategy

Sustainability strategy and climate strategy

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Exclusion

Exclusion

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