The Asset Management Association of Switzerland (AMAS) urges Swiss companies to adopt strong corporate governance and sustainability practices to align with international standards and contribute to a climate-neutral economy. This engagement is driven by Switzerland's commitments to the UN's 2030 Agenda for Sustainable Development and the Paris Climate Agreement, aiming for net-zero emissions by 2050.

AMAS emphasizes the importance of active ownership and engagement with companies to achieve long-term financial, environmental, and societal value. In collaboration with Swiss Sustainable Finance, AMAS published the Swiss Stewardship Code in 2023, promoting corporate engagement to support sustainable outcomes.

The letter encourages AMAS members to engage with Swiss companies on a voluntary basis to help them meet international governance and sustainability standards. These standards include robust corporate governance, sustainability accountability at the board level, enhanced environmental disclosures (such as climate-related risks and greenhouse gas (GHG) emissions), and the adoption of decarbonization strategies in line with the Paris Agreement.

AMAS expects companies to adopt a responsible business conduct framework, disclose their GHG emissions, and commit to science-based targets. Furthermore, companies should ensure a just transition, protecting human rights and worker livelihoods in their decarbonization plans.

While the letter is not legally binding, asset managers will review companies' progress annually and may take escalation actions, such as voting against company proposals, if engagement does not lead to satisfactory outcomes. Individual companies may be approached based on this engagement letter.

The letter has already been endorsed by the following asset managers:

• Baloise
• Basellandschaftliche Kantonalbank
• BCV Banque Cantonale Vaudoise
• Graubündner Kantonalbank
• Lombard Odier
• Pictet
• Robeco
• UBS
• Zürcher Kantonalbank

This demonstrates the strong industry support. To become an endorser of the Engagement Letter, kindly reach out to aurelia.faeh@am-switzerland.ch

AMAS now calls on all its members to incorporate these standards into their engagement practices, furthering the collective effort towards a sustainable and climate-neutral economy.