Digital library on sustainable finance
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WWF is addressing the issue of the increasing insurance protection gap. It points out that risks caused by degrading nature caused by GHG emissions are becoming less predictable and more destructive. The unpredictability of the likelihood and the financial damage make risks unattractive for insurers and unaffordable for the insured. Including indirect and ecosystem costs, the UN Office for Disaster Risk Reduction estimates the costs of natural disasters at USD 2.3 trillion averaging 2% of the global GDP. For developing countries, the situation is even more severe as their exposure to nature risks is typically higher. Governments are commencing to implement solutions such as publicly supported insurances. However, they only fight the symptoms instead of the root of the problem. The WWF suggests a strategy that advocates for a holistic approach that is built around nature based solutions.
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The UNEP’s State of Finance for Nature 2026 introduces the Nature Transition X-Curve. It is a conceptual framework based on transition pathways setting the direction towards a nature positive economy. At the moment, USD 7.3 trillion of nature negative capital must be reallocated in activities with nature positive outcomes. To put it in perspective, for every USD flowing into nature positive economic activities more than USD 30 flow into nature negative activities. The paper stresses that without a balanced ecosystem every economic activity will be harmed. It considers the private sector, the public sector, and policy makers and suggests according recommendations.
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IIGCC’s new guidance is designed as a complement to the Net Zero Investment Framework (NZIF). It can be seen as a toolkit for investors to develop their individual net-zero strategy. It supports investors to identify and act on material risks. Regarding deforestation the recognition can vary depending on the geography of the investment. The starting point contains of 5 actions: assessing exposure, developing a deforestation policy, integrating considerations of deforestation and associated risks into investment decision-making, addressing material exposure to deforestation and associated risks through portfolio stewardship, and conducting systems-level stewardship by advocating for regulation and policies that aim to curb deforestation globally and scale deforestation- and conversion-free supply chains.
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Guidance on Integrating Deforestation into Net Zero Strategies - EN
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Published by the Swiss Federal Office for the Environment (FOEN) and planval, this new best-practice booklet offers a clear and practical overview of nature-based solutions in Switzerland. It presents 23 well-researched and evaluated examples across key ecosystems, highlighting their benefits for biodiversity and climate action. The publication serves as a valuable source of inspiration and guidance for municipalities, regions, and companies seeking to implement effective, integrated solutions.
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Naturbasierte Lösungen: Chancen für Gemeinden, Regionen und Unternehmen - DE
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Five years after launching the Finance for Biodiversity (FfB) Pledge the FfB Foundation published its first impact report. 126 actors in the financial sector filled in a self-assessment at the beginning of the year 2025. In total there are more than 200 signatories across 29 countries of which many signed the pledge after 2020. 98% of respondents report that biodiversity is integrated into their ESG or sustainability policy and 90% are engaged in intra-industry working groups discussing challenges and opportunities related to biodiversity. The paper shows that the awareness of nature risks creates a shift in behaviour leading to measurement of impacts and dependencies, or financing nature-positive transition.
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BNP Paribas’ Investment Outlook 2026 highlights the resilience of the global economy with growth forecasts being revised upward. The IMF is expecting 3.2% global growth despite political tensions. Europe is on the forefoot thanks to more clarity regarding policies and fiscal spending on infrastructure and defence. The US is the most unpredictable region due to the shifts in tariffs and looser fiscal stance. Furthermore, the role of the federal reserve remains unclear as it is focusing on labour market risks. Asias main economic driver, China, is not expected to alter its proven strategy and further supports the local industry. National banks are expected to further lower interest rates and sovereign debt yields are facing upward pressure creating an investor friendly environment. Finally, artificial intelligence acts as catalyst in equity markets resulting in increasing capital expenditure and productivity.
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The paper, published by the World Business Council for Sustainable Development (WBCSD), finds that financial markets are increasingly recognizing sustainability as a driver of value and risk mitigation, though pricing remains uneven. Evidence is strongest in debt markets, where credible sustainability performance can lower borrowing costs, with green bonds showing an average 2–4 basis point premium. At the company level, integrated sustainability strategies can improve performance, with studies indicating EBITDA uplifts of 5–20% and typical returns on sustainability investments of 2–14x. Crucially, markets reward credibility and alignment between sustainability, strategy, and capital allocation, while inaction is increasingly viewed as a high-risk choice for long-term resilience and valuation.
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The Swiss Sustainable Lending Market Study 2025 provides a comprehensive overview of the progress made by Swiss banks in integrating sustainability into their lending and mortgage practices, as well as the challenges involved. A positive trend is emerging: banks have increasingly introduced sustainability strategies and guidelines in lending. The hiring of internal sustainability specialists and the establishment of sustainability departments are providing effective support to the credit and mortgage sector.
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SSF_Pub_Lending_Market_Study_2025_EN (pdf 9.1 MB)Summary
Lucerne University of Applied Sciences and Arts (HSLU) published the IFZ Sustainable Investments Studie 2025. Among other interesting findings, the study observes that, although fund inflows into sustainable funds have overall declined considerably. Only 110 from 237 sustainable funds registers net inflows. Although, the net inflows (+ CHF 49 Billion) outperform the net outflows (CHF -45 Billion) the share of sustainable funds with positive net inflows has declined from roughly 75% to below 50% in the past two years. However, at the same time 69% of newly invested money flows of Swiss Retail Banks flow into sustainable funds.
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The guide prepared by CSP in collaboration with The ImPact and University of St. Gallen finds that the 13 wealth managers reflected in this medium on average allocate 30% of client assets to sustainable strategies, though impact investing remains far smaller at just 3.3%. However, these results are not representative and a huge variance has been detected across the wealth managers. Furthermore, the report highlights that impact measurement and ongoing values alignment vary widely across firms, underscoring the importance of robust governance, transparent reporting, and organizational commitment to impact.
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The paper published by the UN Environment Program Finance Initiative and the Principles for Responsible Investment (PRI) appeals to the responsibility of the asset owners. It argues that asset owners must account for climate risk and invest in mitigating action in order to ensure long-term economic growth and build resilience. Therefore, it is crucial that asset managers identify these long-term risks and act in the best interest of their clients by allocating the assets accordingly.
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Die Biodiversitätskrise erfordert entschlossenes Handeln. Entscheidend hierfür ist die Frage, welche Mittel sich in welcher Form am besten eignen. Daher ist es bedeutsam, konkrete Maßnahmen wie Nature-based Solutions und die derzeit intensiv diskutierten Biodiversity Credits möglichst sorgfältig zu analysieren. Die Handreichungen sollen hierzu einen Beitrag leisten und gleichermaßen die Chancen und Potenziale sowie die Risiken und Grenzen in den Blick nehmen. Darüber hinaus ist es essenziell, mögliche globale Auswirkungen auf die nachhaltige Entwicklung, soziale Ungleichheiten und bestehende Machtverhältnisse mitzudenken.
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Die Biodiversitätskrise erfordert entschlossenes Handeln. Entscheidend hierfür ist die Frage, welche Mittel sich in welcher Form am besten eignen. Daher ist es bedeutsam, konkrete Maßnahmen wie Nature-based Solutions und die derzeit intensiv diskutierten Biodiversity Credits möglichst sorgfältig zu analysieren. Die Handreichungen sollen hierzu einen Beitrag leisten und gleichermaßen die Chancen und Potenziale sowie die Risiken und Grenzen in den Blick nehmen. Darüber hinaus ist es essenziell, mögliche globale Auswirkungen auf die nachhaltige Entwicklung, soziale Ungleichheiten und bestehende Machtverhältnisse mitzudenken.
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The Swiss Finance Institute (SFI) constructed nature dependency scores on firm level (NatDep scores) for almost 32’000 firms between 2010 and 2023 based on data from ENCORE and firm-level financial disclosures. Two findings support the approach of integrating nature risk in the risk assessment of the investment process. On the one hand, the authors found a positive correlation between the downside risk of firms and the scores highlighting an increased financial risk, mostly explainable with the dependency on water-related ecosystems. On the other hand, the scores predict nature-related incidents such as damage to nature, overuse of resources, or disputes with the local communities. Unlike corporates, investors commence building an awareness regarding nature dependency.
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Swiss Finance Institute: Paper Firm Level Nature Dependence - EN
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The Asset Management Association Switzerland (AMAS) and Principles for Responsible Investing (PRI) published a paper based on roundtables they held on the Swiss Stewardship Code published with SSF. It contains a summary of real world applications of stewardship from the perspective of asset owners, investment managers and service providers. It covers each step from setting up a stewardship policy over different types of engagements to escalation strategies.
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Picard Angst analysed 71 institutional asset owners' portfolios in Switzerland on ESG metrics by comparing the individual asset allocation to an aggregated market view. The total AuM of the 71 asset owners was at roughly CHF 150 billion and therefore represents a relevant sample. From the gained insights the authors draw actionable conclusions based on an ex ante risk and return analysis. Thus, it provides data based decision making options enabling the adaption of the climate profile.
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The paper conducted by the UNDP, Rule of Law and Peacebuilding Hub, and Sustainable Finance Hub found that human rights and business are not a trade off. According to their research that included the analysis of 235 corporates over 5 years, it is the opposite and a positive effect of investments in human rights on operational efficiency and a neutral-to-positive effect on market reaction was found. More specifically, they found that improvements in a corporate’s human rights conduct have a positive effect on their return on assets and leads to a more resilient supply chain and a more productive work force. The paper refutes the narrative of cost efficiency regarding lacking human rights conduct in corporates.
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The report of the World Resources Institute and Google builds upon the contrary developments of artificial intelligence (AI) and biodiversity. 22 expert interviews as well as several case studies and research in the field point out how AI could potentially accelerate nature action. The paper examines various sectors and geographical areas. A key conclusion is that nature data must be produced at a higher scale and speed. In order to make better informed decisions it is essential that the information is democratized. AI can be a catalyst for this development since it is able to process and structure large amounts of data. The paper advocates a collective approach consisting of sharing knowledge and data.
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Working Paper from WRI: AI for Nature: How AI Can Democratize and Scale Action on Nature - EN
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The State of the Banking Transition 2025 report, published by the TPI Global Climate Transition Centre, a collaboration of the Transition Pathway Initiative (TPI) and London School of Economics (LSE), analyses the progress of 36 large multinational banks on the low-carbon transition. It measures the progress based on two parameters: the Net Zero Banking Assessment Framework and Carbon Performance for Banks. The results show that the vast majority of the banks are still at the beginning of their transition process and have not made any progress during the past year.
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In response to the narrative that nature finance does not provide market returns, the Cambridge Institute of Sustainable Leadership (CISL) published the paper: Scaling finance for nature. Authors argue that by assessing nature impacts and then choosing an appropriate lever for change, it is possible to scale nature finance across the economy. They identify four key levers for catalyzing nature finance: through stewardship activities, strategic financial decision making, the use of financial incentives, and targeted political dialogues.
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The paper shows in a retrospective that in emerging and frontier markets unhedged local currency investments can be a driver of diversification strengthening the portfolio rather than a risk that must be covered through expensive hedging. The clue is that these markets show a very low correlation between the currencies whereas hedging is relatively expensive. Over a period of 17 years, from 2008 to 2025, the unhedged strategy outperformed hedged strategies. Thus, it is concluded that this is a long-term investment strategy for investors seeking portfolio diversification.
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Local Currency Investing in Emerging and Frontier Markets - EN
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The Pensionskassen-Jahrbuch 2025 highlights that half of Swiss pension funds now report on their sustainability efforts, a level that stabilized in recent years. Since the introduction of the ASIP ESG reporting standard, the quality of reporting has improved, with a noticeable increase in qualitative disclosures. Roughly one in four pension funds are publishing quantitative ESG indicators for their equity and bond portfolios – showing that there remains room for better transparency and comparability.
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The Investors Guide to Multicapital Strategies explores how wealth holders can leverage both economic and non-economic resources—such as relationships, knowledge, and reputation—to maximize positive social and environmental impact. Drawing on academic research and 27 in-depth interviews with experienced investors worldwide, it offers practical insights and a framework for strategically deploying diverse forms of capital. The guide emphasizes transparency, inclusivity, and accountability as essential principles for ethical and effective impact.
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The IFC’s Blue Finance Guidelines 2.0 provide updated guidance for financial institutions to identify, structure, and scale investments that support sustainable ocean and water resource use. They aim to promote transparency, align with global standards, and accelerate growth in the blue economy.
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The Ethos Engagement Paper on Nature 2025 examines how the twin crises of climate change and nature loss create systemic risks for companies and investors. It outlines Ethos’ expectations for companies to assess their impacts, dependencies, and risks related to biodiversity and natural capital. Companies are encouraged to establish nature transition plans consistent with the Global Biodiversity Framework. The paper also recommends using frameworks such as TNFD and adopting the Do No Significant Harm principle to strengthen disclosure and risk management.
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Ethos_Engagement_Paper_Natur_2025_DE (pdf 2.6 MB)Ethos_Engagement_Paper_Nature_2025_FR (pdf 3.0 MB)
Ethos_Engagement_Paper_Nature_2025_EN (pdf 2.8 MB)
