Finance

Investments have an impact, whether it’s easily recognisable or not. Even if the investment only affects a tiny part of a company on the other side of the planet – if that company pollutes the drinking water, the investor is partly responsible. It is imperative that investors are aware of the impact, but that’s not enough these days. That’s why we at Velux Stiftung strive to invest in a way that achieves a positive outcome for people and nature. Of course, we aim for a financial return, but every investment we make must be inline with the foundation’s mission.

Impact investing

Investing for a better future for all
At Velux Stiftung we are constantly working to improve the management of our own investments, because the impact of investments is at the very heart of any charitable foundation:

ESG policy & screening

Since 2008, Velux Stiftung follows the ESG investment principles. All investments must comply with the principles of the UN Global Compact, a United Nations initiative encouraging businesses worldwide to adopt sustainable and socially responsible policies in the areas of human rights, labour, the environment, and anti-corruption. Since 2020, we’ve applied additional ESG-exclusions and exclude investments in controversial weapons, tobacco or coal.

Climate divest-invest pledge
In accordance with the above stated principles, the foundation defined its own carbon divest strategy in 2017. The goals laid out in this document were achieved in 2022 and exceeded the following year, with fossil fuel investments reported at 0.5% of the portfolio in 2023, well below the original 3% threshold. Additionally, the foundation also invests up to 10% of its portfolio in climate relevant impact investments and consequently reduces its exposure to fossil fuels.

Asset allocation

Executing on our investment goals
Velux Stiftung’s assets are managed in mostly active mandates by carefully selected fund managers. These are chosen by the foundation’s investment committee. The committee consists of two independent investment professionals and two foundation representatives. The board approves both the investment policy and strategy. The investment committee is responsible for implementation.

The foundation’s investment managers are monitored and evaluated regularly. Managers who invest in companies breaching the ESG principles on a continuous basis are excluded from the investment universe of Velux Stiftung if they cannot justify the action.

Velux Stiftung’s asset portfolio was valued at MCHF 229.9 by year-end of 2023 with a return on investment of 6.9%.