In principle, Sächsische Ärzteversorgung does not focus on individual issues such as climate change and, in particular, CO₂, but always takes a holistic view of E, S and G. Nevertheless, the need to reduce CO₂ emissions is always factored into the assessment of opportunities and risks. To this end, we examine whether clear decarbonisation targets have been formulated (e.g. commitment to the Paris Climate Agreement) and whether strategies for reducing CO₂ have been developed. Standardised procedures for calculating a carbon footprint are largely still at the development stage, and measurement methods exhibit systematic weaknesses, particularly regarding the attribution of CO₂ consumption. Consequently, the pension fund does not use a carbon footprint as a management tool for its overall investment portfolio.
Particularly where it has its own scope for control – which is especially the case with SÄV’s own properties – Sächsische Ärzteversorgung responds by conducting a comprehensive data collection on resource consumption and, in a subsequent step, by adjusting this consumption to consistently save resources and thereby reduce its own carbon footprint in the long term. The Greenhouse Gas Protocol, with its Scope model, is applied in this process.

Exclusion criteria determine which investments are excluded from a portfolio. They serve to minimise risks to performance and usually relate to specific business sectors or practices.
For direct investments, for example, Sächsische Ärzteversorgung excludes manufacturers of controversial weapons, civilian firearms, tobacco companies and producers of pornographic content. In addition, companies are excluded if they demonstrably derive a high proportion of their turnover from controversial extraction methods such as oil sands or fracking.
Not all potentially risky sectors are excluded across the board. For instance, Sächsische Ärzteversorgung also invests in fossil fuel companies if they are actively transitioning to renewable energy. As an investor, the pension fund can support this transition through the exercise of voting rights and dialogue.
The definition of exclusion criteria is complex and not always clear from an ESG perspective. Therefore, sustainability aspects are carefully assessed for every new investment and incorporated into the investment process.

Sustainability is more than that. It is more than just measuring a CO₂ footprint, more than non-discriminatory recruitment processes, and more than transparent administration. The term ‘ESG’ combines three perspectives on sustainability standards and has established itself globally as a framework for categorising sustainability measures. The ‘E’ stands for ‘Environment’ and covers all environmental issues, from greenhouse gas emissions to energy efficiency. “Social” (S), on the other hand, refers to social aspects such as the health and safety of the company’s own employees, demographic change or equality. All aspects of exemplary corporate governance with appropriate supervisory structures are subsumed under the term “Governance” (G). Issues such as corruption, risk and reputation management or compliance are examples of this.

The term ‘green investments’ is often understood to refer to investments with an environmental focus, such as renewable energy. For reasons of risk diversification, the Saxon Medical Pension Fund does not focus on thematic investments. Indirectly, however, investments are made via bonds and shares in companies that can be classified within the renewable energy sector. In particular, in the area of infrastructure investments, the appointed managers have included such investments in their portfolios. These include, for example, investments in solar and wind farms, as well as companies specialising in hydrogen technology.