Publica, Switzerland’s largest pension fund, plans to overweight its portfolio in companies with “promising and high-quality patents” in the renewable energy sector against other companies, based on its climate efficient equity index, deputy chief investment officer Patrick Uelfeti told IPE.
A recently developed MSCI index takes into account expected tax costs on CO2 emissions over a period of 30 years against the market capitalization of a company, patents for the reduction of greenhouse gas emissions, and costs caused by climate change on business operations.
“The patents are classified and evaluated according to their relevance and their market potential,” Uelfeti added.
In its report on climate-related opportunities and risks for 2019, Publica said it excluded investing in the coal sector, preferring renewable energies, wind farms or photovoltaic systems, through a strategic asset allocation of 3.5%.
