One of the best ESG asset managers gives Switzerland top marks in terms of sustainability. Even a new assessment method does not change this finding.
Asset manager Candriam regularly appears in the top ranks of asset managers with the best and broadest ESG fund offerings. So when Candriam publishes an ESG country report, it is safe to assume that a carefully chosen methodology has provided the basis for the ranking.
Candriam has once again refined its methodology compared to the last country report, in which Switzerland achieved the top ESG score. The European fund provider, which is part of New York-based Life Investment Management, weighted each country's natural capital management much more heavily.
Natural Capital Is Finite
This is because Candriam assumes that a large part of the environmental impact in the coming decade will be the direct result of past and current economic activities. Moreover, there is no substitute for natural capital, says Candriam. This is in contrast to other forms of capital considered in the scoring model, such as human capital, social capital, as well as economic capital.
Conclusion: The change in methodology had no impact on the top performer in the overall list, Switzerland.
The country achieved very high scores for natural capital in particular. For other countries, however, the natural capital component had a strong impact: Norway fell behind because of its oil and gas industry, the Netherlands because of the high proportion of fossil fuels used in energy production, and Australia because of its poor carbon footprint.
