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PRI reporting framework 2020

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

          Governance of the policy

01.3. Indicate if the investment policy covers any of the following

01.4. Describe your organisation’s investment principles and overall investment strategy, interpretation of fiduciary (or equivalent) duties,and how they consider ESG factors and real economy impact.

We are convinced that Environmental, Social and Governance (ESG) considerations can help us make better long-term investment decisions for our clients.

For decades, sustainability has been central to our way of thinking. Since the Pictet Group was founded in 1805, we have aimed to ensure the prosperity of our clients over the long term. In doing so, we have instinctively considered the interests of future generations.

The Pictet Group believes in responsible capitalism and takes an enlarged view of the economy and its interactions with civil society and the natural environment.

Consistent with our fiduciary duty to act in the best interests of our clients and our adherence to the UN Principles for Responsible Investment (UN PRI), we are committed to integrating material ESG criteria in our investment processes and ownership practices with a view to enhance returns and/or mitigate risks. We also aim to embed ESG in our risk management and reporting tools in order to maintain high standards of transparency and accountability.

Our commitment to Sustainability and responsible investment covers 10 levers of action across our own assets, and those managed on behalf of our clients.

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

Our commitment to responsible investment is supported by a set of basic principles covering 5 areas which are part of the 10 action levers listed above:

1. Responsible products and solutions: We will continue to develop investment strategies that provide capital to companies contributing to positive impacts on society or the environment, as well as to those that have a plan to successfully mitigate the negative externalities of their products, services, operations & supply chain.

2. ESG integration into investment processes and risk management: Across research, investment decisions, risk management, and advisory, we will continue to strengthen the integration of material and emerging environmental, social and governance factors in the evaluation of corporate and sovereign issuers.

3. Active ownership: We will strive to engage with issuers that fall short of our expectations – either directly or through collaborations with other investors. Where necessary we will escalate to Board representatives, vote against management or support shareholder resolutions. Depending on the severity of the concern, and the issuers capacity or willingness to adopt generally accepted standards of best practice, we may choose to exit the position.

4. Client engagement: Where relevant data is available, we will strengthen reporting on the ESG characteristics of client portfolios and the impact of active ownership activities. Where data is missing, we will encourage issuers to report against international standards.

5. Thought-leadership and research on sustainability: We will leverage our rich experience across key environmental and social themes to publish targeted research and help raise awareness and capital for a sustainable transition.


01.6. Additional information [Optional].


SG 01 CC. Climate risk (Private)

SG 02. Publicly available RI policy or guidance documents


02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.


02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

02.3. Additional information [Optional].

SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

Clients trust that PAA and the Pictet Group will treat them fairly and act in their best interests. However, as with any firm where one business line could profit from a client relationship with another business line, there is the potential for a conflict of interest. We believe that the best way to deal with conflicts of interest, potential and real, is firstly to ensure that processes and procedures are in place to prevent the possibility of the conflict occurring and secondly that the best approach to deal with any conflict arising is to disclose it.

PAA and the Pictet Group have developed administrative and organisational measures to ensure that all reasonable steps are taken to prevent and identify situations where conflicts of interest may arise. Each employee has to detect and identify possible conflicts of interest in the exercise of his activity and to report it to his hierarchy and PAA Compliance function.

03.3. Additional information. [Optional]

SG 04. Identifying incidents occurring within portfolios (Private)