Swiss approach to greater climate transparency in investments
The Swiss financial centre is considered a pioneer in terms of sustainability. The Swiss Climate Scores, which were launched a year ago, are intended to help investors better compare the numerous investment opportunities.
Within just a few years, sustainable investments have become mainstream: 1610 billion Swiss francs are already being invested in Switzerland according to ethical and ecological criteria, according to the latest market study by the Swiss Sustainable Finance Forum. This is more than twice as much as the entire Swiss gross domestic product. Since 2015 alone, when the UN adopted the 2030 Agenda and formulated 17 Sustainable Development Goals, sustainable investments have increased tenfold. In addition, there was the Paris Climate Agreement, which was also aimed at the financial sector for the first time.
There is an awareness in investor circles that investments have an impact on the real economy. Depending on where the money goes, it can contribute to reducing CO₂ in the atmosphere and help achieve climate targets. But because investments related to the environment are so popular, investors are increasingly faced with the question: How do I actually recognize the right investments for me? Which specific criteria are taken into account in the investment process varies depending on the provider. Accordingly, it is difficult for investors to keep track of everything. The Federal Council has therefore opted for an alternative path: the Swiss financial centre is to "further strengthen its position as a leading location for sustainable financial services". As a result, the authorities have developed a solution with financial service providers such as UBS, environmental organisations and scientists: meaningful and comparable scores on the climate compatibility of financial investments.
