Switzerland’s Pension Fund SBB (PF SBB) is “well on the way” to achieving its climate-related targets within its portfolio, according to its Sustainability Report 2025/26.

In 2025, the pension fund achieved an overall reduction in CO2 emissions in its equity and corporate bond portfolio of around 30 per cent compared to the respective benchmark.

It also continued to focus on the continuation of its climate strategy for directly-held real estate, building on its target of reducing CO2 emissions in the portfolio by 50 per cent by 2030 compared to 2020.

In the report, PF SBB highlighted that 2025 was characterised by geopolitical tensions, economic uncertainty and an increasingly polarised debate on ESG-related themes.

Noting the impact of heatwaves, drought and floods in Europe and the wider world, alongside social and geopolitical tensions, the pension fund said sustainability risks now extend well beyond individual sectors and regions.

“For investors such as the PF SBB, with a long-term view to investing on a global basis, these developments highlight the importance of robust ESG processes,” the report stated.

“Sustainability risks must be systematically identified, analysed and incorporated into investment decisions.

“The aim is to identify risks at an early stage, strengthen the resilience of the portfolio, reduce reputational risks and ensure long-term, stable returns for the members, while upholding responsibility towards the environment and society.”

Against a backdrop of continued global warming, the pension fund said it was looking at further measures to help address these issues.

Alongside the decarbonisation of its portfolio, PF SBB said it was also making a contribution towards the actual reduction in global CO2 emissions.

Its management office, investment committee, and board of trustees were placing a “special focus” on engagement activities.

“Partnerships and participation in various sustainability initiatives are of crucial importance when implementing the sustainability strategy of the PF SBB,” the report said.

“We work together with global asset managers and network partners in order to make ESG-compliant investments and to support and promote sustainability standards.”

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