InFocus: ČS Pension Company

Who?

Česká spořitelna – penzijní společnost, a.s. is a subsidiary of Česká spořitelna which is the biggest retail bank in the Czech Republic and a member of the Erste Bank financial group. Since 1995, ČS Pension Company operates exclusively in the Czech Republic on supplementary pension savings market. We have 915 000 clients and our total assets under management reach €3 billion across 5 pension funds.

When?

Having joined in October 2017, ČS Pension Company is Eurosif’s most recent direct member.

Why?

ČS Pension Company feels a strong commitment to society and the environment we all live in. We are aware of the growing importance of sustainable and responsible investment, which is an area we want to focus on in the coming years. We believe that the European SIF network is a unique source of know-how and information and membership will help us to make socially responsible investments available to the general public in the Czech Republic.

What?

While SRI has a long-term history in Western Europe, this trend is still underdeveloped in Central and Eastern European (CEE) countries. For many CEE retail clients, it is still unavailable or unknown. As a leading pension company in CEE, we enable our clients to choose fully SRI-orientated solutions for their savings for retirement. In October 2017, ČS Pension Company launched a new Responsible Pension Fund strictly orientated to SRI.

The traditional asset management approach considers risk, yield, and liquidity. We add yet another dimension – ESG (Environment, Social, and Governance). Each investment idea is now compared with exclusion criteria  – such as coal mining, nuclear power, tobacco, GMOs or animal testing. Issuers operating in any of these areas are no longer viable options. The second layer of the filter is a best-in-class approach of ESG rating. We rate companies in accordance with their fulfilment of ESG criteria and we choose only the best for the Responsible Pension Fund’s portfolio. The ESG filter excludes about two-thirds of issuers from our investing universe.

As a dominant stakeholder in the Czech capital market, we plan on engaging in dialogues with issuers in the coming years, to motivate them to enhance sustainability and encourage such behaviour.

We have also recently launched a cooperation with Mr Adam Podhola, co-founder of the “Save Food” movement – raising awareness of food waste problem. Feel free to watch story!

 

 

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