The starting point for the three impact funds is the UN’s 17 Sustainable Development Goals (SDGs). They apply to all member states of the United Nations and were drawn up in September 2015 as part of the 2030 Agenda for Sustainable Development. For Pando, we have selected those goals that we can best support with financial investments and have derived our sustainability topics from them.

Each topic thus offers you the opportunity to achieve the greatest possible sustainable impact with up to 30% of your equity component – without compromising on returns. At the same time, we ensure that ESG factors are taken into account for the remaining component amounting to at least 70%. Let us start by examining the topics in turn:

Sustainability topic 1: Climate

The challenge:

Global warming is on the rise, with problems ranging from rising sea levels to difficulties in farming land. The main driver of these developments is CO2 emissions.

Your impact:

You invest via the impact fund Swiss Life Funds (LUX) Equity Climate Impact in companies active in the field of alternative energy generation. In doing so you promote products and services for renewable energies, energy-efficient solutions and zero-emission vehicles. Specifically, you support the following:

• Wind energy
• Solar energy
• Small-scale hydropower
• Geothermal energy

Companies in which your fund may invest:

• Vestas Wind Systems (manufacture and maintenance of turbines)
• First Solar Inc (one of the leading companies in the solar industry)
• Novozymes (biotech company that speeds up industrial processes, conserves raw materials and reduces energy consumption)

In doing so, you support the following UN sustainability goals:

1. SDG 7: Sustainable and modern energy for all
2. SDG 13: Take urgent action to combat climate change

Sustainability topic 2: Environment & Biodiversity

The challenge:

We humans are overexploiting our planet by at least 56%. Around one million species are consequently threatened with extinction. Animals, plants, fungi and microorganisms maintain our habitats, purify water and air and serve as food. It is important to preserve strong biodiversity.

Your impact:

Through the impact fund Swiss Life Funds (LUX) Equity Environment & Biodiversity Impact, you support the conservation of natural habitats on land and in water. Specifically, you support the following:

• Waste control systems
• Recycling solutions
• Wastewater treatment
• Desalination plants
• Drought-resistant systems
• Rainwater harvesting
• Sustainable agriculture

Companies in which your fund may invest:

1. Kingspan Group (energy-efficient and insulating construction materials, rainwater collection systems)
2. West Fraser Timber (sustainable wood processing)
3. Kurita Water Industries (water treatment)

In doing so, you support the following UN sustainability goals:

1. SDG 6: Water and sanitation for all
2. SDG 12: Ensure sustainable consumption and production patterns.

Sustainability topic 3: Green Buildings & Infrastructure

The challenge:

More and more people are living in cities. At the same time, many places lack clean infrastructure and there are not enough energy-efficient buildings. The construction sector has a major impact on global CO2 emissions and is therefore a strong driver of global warming.

Your impact:

Through the impact fund Swiss Life Funds (LUX) Equity Green Buildings & Infrastructure Impact, you invest in measures to make the construction and maintenance of buildings sustainable and in energy-efficient infrastructure. Here are some specific examples:

1. Sustainable construction solutions
2. Management of sustainable buildings
3. Improved insulation
4. LED and CFL solutions
5. Sustainable transport infrastructure
6. Energy-efficient IT solutions
7. Smart grids

Companies in which your fund may invest:

1. East Japan Railways (sustainable public transport)
2. Acuity Brands (energy-efficient lighting solutions)
3. MTR Corporation (sustainable public transport)

In doing so, you support the following UN sustainability goals:

1. SDG 9: Resilient infrastructure and sustainable industrialisation
2. SDG 11: Sustainable cities and human settlements

Pando’s approach: the core-satellite strategy

Your core share is invested in the broad market via ESG funds. This way you are better protected against country and sector-specific fluctuations. Through the ESG criteria, you invest in companies with above-average performance in terms of sustainability, social issues and corporate responsibility. We use 20-30% of your equity component to invest specifically in your sustainability topics (satellites) via impact funds. A detailed overview of the funds you invest in with Pando can be found here.

Please note that your impact fund share depends heavily on a number of factors: how long you invest for, how many sustainability topics you select and with what degree of risk you invest. If you invest with low risk, the share of bonds rises in proportion to the equity component. Your 20-30% share in impact funds will therefore also decrease. You will find a detailed overview of all 35 Pando investment products in our investment regulations.

If you would like to read more about our sustainability approach, we recommend this content.

More topics, more impact

With Pando, you can select one or more sustainability topics. Depending on how many topics you include in your portfolio, the impact share of your equities will increase from 20% (one topic) to 25% (two topics) or 30% (all three topics). This is because your share of impact funds is better diversified with three topics and can therefore be higher. If you don’t have a clear preference for a particular topic, we therefore recommend selecting multiple topics.

Whatever you decide, you can rest assured that Pando will factor in strict ESG factors if you should opt for a lower share of impact funds. For a detailed overview of the weighting of the share of impact funds, we recommend you take a look at our investment regulations.