House with photovoltaic installations

From lending to environmental impact: Three levers for more sustainability

Zurich Invest Ltd. pursues a comprehensive sustainability strategy based on three key principles: ESG integration, impact investing and shared progress.

One strategic focus is on climate protection measures across all asset classes: This includes analyzing climate-related risks, actively influencing companies to reduce CO₂ and setting ambitious targets for net zero portfolios by 2050.

Graphik, Anteil gestrandeter Vermögenswerte
Source: Wüest Partner

Investment foundations facilitate access

Switzerland is pursuing ambitious climate targets with its current CO₂ legislation. The building sector offers great potential for reducing emissions. However, it is challenging to manage the CO₂ footprint of a mortgage portfolio: Property owners make their own decisions about renovation measures. Willingness to renovate depends heavily on regulatory requirements, financial incentives and individual decisions. At the same time, there is an increased risk that real estate with inadequate energy efficiency will lose market value.

This risk is real: By 2050 at the latest, mortgage portfolios must comply with the permissible emission limits according to the 1.5-degree target of the CRREM. If they do not, the portfolios would be considered “stranded.” This would pose significant risks to performance, the collateral quality of the mortgaged properties, and regulatory compliance.

Zurich Invest has developed a three-stage action plan to manage the climate risks in Swiss mortgage investments. This is how sustainability becomes an integral part of the portfolio:

  1. CO₂ portfolio analysis for more transparency
    In November 2024, the entire mortgage portfolio was analyzed for the first time with respect to CO₂ emissions and energy status. This was based on publicly available building data and internal mortgage information. This analysis has created transparency with regard to the ecological footprint of the financed properties. It forms the basis for measuring the achievement of sustainability goals. It also makes it possible to identify potential and risks.
  2. Renovation calculator for borrowers
    To actively promote energy-efficient renovations, Zurich Invest provides its borrowers with an individual renovation plan each time a product matures. This is created using a digital tool from Wüest Partner and forms the core of impact-oriented engagement: Zurich Invest Ltd. provides its customers with targeted support on the way to more climate-friendly properties. 
    The plan shows the current CO₂ emissions, forecasts their reduction over time as a result of refurbishment measures and shows when threshold values are undercut and better energy efficiency classes are achieved. Heat requirements, subsidies and tax savings are also shown. This creates a holistic overview that facilitates investment decisions and strengthens the sustainability and value retention of the portfolio.
  3. Mortgage benefits for energy-efficient properties
    From January 2026, mortgage borrowers will benefit from a financial advantage if their properties are in energy efficiency classes A to C. This creates strong incentives for energy improvements, regardless of the term or mortgage model. The criteria are based on the Wüest Partner Refurb standard, which is already used for portfolio evaluation.

With this action plan, Zurich Invest Ltd goes beyond traditional ESG integration: It creates concrete incentives and actively promotes climate protection measures.

All information in this article has been compiled with care and to the best of our knowledge and belief. Zurich Invest Ltd. and Zurich Investment Foundation assume no responsibility for the accuracy and completeness of the information and disclaim any liability for losses arising from the use of this information. The opinions expressed in this article are those of Zurich Invest Ltd. and Zurich Investment Foundation at the time of writing and are subject to change without notice. This article is for information purposes only and is intended solely for the recipient. This article constitutes neither a solicitation nor an invitation to make an offer, to conclude a contract or to buy or sell investment instruments and is no substitute for detailed advice or a tax review. A purchase decision must be made on the basis of the articles of association, the regulations and the investment guidelines as well as the latest annual report of the Zurich Investment Foundation. This article may not be reproduced in whole or in part without the written permission of the Zurich Investment Foundation or Zurich Invest Ltd. It is expressly not intended for persons whose nationality or domicile prohibits access to such information under the applicable legislation. Every investment involves risks, in particular fluctuations in value and income. In the case of foreign currencies, there is an additional risk that the foreign currency may lose value against the investor's reference currency. Historical performance is not an indicator of current or future performance. The performance data does not take into account any commissions and costs charged on the issue and redemption of units. The issuer and manager of the investment groups is Zurich Investment Foundation, Hagenholzstrasse 60, 8050 Zurich. The custodian bank is State Street Bank International GmbH, Munich, Zurich branch. The managing director of the Zurich Investment Foundation is Zurich Invest Ltd, Hagenholzstrasse 60, 8050 Zurich. The articles of association, regulations and investment guidelines as well as the current annual report and factsheets can be obtained free of charge from the Zurich Investment Foundation. They can also be viewed at www.zurich-anlagestiftung.ch. Only tax-exempt pension funds domiciled in Switzerland are authorised as investors in the Zurich Investment Foundation.
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