“ESG criteria are not a trend but a key component of a long-term successful investment strategy.”

Christoph Riniker, ESG-Analyst

Christoph, what does responsible investing mean at Zuger Kantonalbank?

Christoph Riniker: We assess companies and investments according to specific ESG criteria. ESG stands for environmental, social and governance. This involves not only ethical aspects but also opportunities and risks. Companies that operate sustainably often have a more stable performance and a lower risk. Our approach is systematic and fact-based. We deliberately speak of responsible investing because we take equal account of economic, environmental and social aspects.

So “sustainable” doesn't always have to be green?

Sometimes, but not always. There are various terms to describe different characteristics, but they are often mixed up. ESG is a term that combines the most important topics. Nowadays, the focus for investors and the regulator is mainly on the environment, in other words, the E in ESG. This is why one often sees the misleading term “green investments”.

“We support our clients with customised advice that reconciles their values with their financial goals.”

Andrea Boog, Private Banking Client Advisor

How do clients react to the topic, Andrea?

Andrea Boog: The reactions vary. Some clients are specifically interested in ESG criteria, others less so. Our task is to focus on the individual needs of our clients. It’s important that each decision is based on solid information and fits their personal goals.

What role does ESG play in stock selection?

Christoph Riniker: With traditional investments, only the characteristics of classic financial analysis come into play, but with responsible investments there is also the possibility of steering the portfolio in a constructive direction. We rely on a comprehensive screening and select companies that meet our ESG criteria. For this, we analyse various indicators and are in close contact with fund issuers and data providers.

Andrea, what can clients pay attention to, the first time they take up the topic?

Andrea Boog: The first step is always a personal consultation. We take a look together to see which values are important to clients and how they portray themselves in an investment strategy. We then develop a solution that takes both their individual needs and a sustainable return into account.

Why is responsible investment worthwhile in the long term?

Christoph Riniker: ESG factors affect a company’s long-term success. People who invest in companies that adhere to environmental standards and act in a socially responsible manner can reduce risks and increase the stability of their portfolio. In addition, this approach promotes innovation and sustainable growth.

Andrea, what does Zuger Kantonalbank offer specifically?

Andrea Boog: Our clients can choose from a range of investment products and mandates that take account of ESG criteria. The combination of individual advice and specific investment strategies ensures that our clients can derive the maximum benefit from the opportunities offered by responsible investment.