Digital library on sustainable finance
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The SVVK-ASIR Engagement Report provides information on the association's engagement activities. In the last two years, it has intensified its dialogue with companies, particularly in the Swiss domestic market. In 2022 and 2023, the association conducted 176 and 170 engagement dialogues respectively, more than half of them on human and labour rights. 19 cases were successfully concluded, but climate change remained a key issue and the focus was also increasingly on Switzerland. In summer 2023, SVVK surveyed around 20 property fund providers on their net zero plans, revealing major differences in sustainability reports and measures.
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Engagement Report 2022/23 - DE
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Financial institutions are reshaping their business models to address the challenge of sustainability. In this roundup, scholars and practitioners explore the progress made and the obstacles that remain. Banks and investors are increasingly incorporating climate risks into their decision-making processes. Yet today, these risks are not always correctly priced in financial markets. Greater coordination between public and private initiatives could help ensure sufficient capital flows toward sustainable investments to meet global targets. The insights shared by the experts shed light on the part that sustainable finance can play in enabling the shift to a sustainable economy
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Climate-Related Risks— A Focus on Banks and Credit Risk - DE
Climate-Related Risks— A Focus on Banks and Credit Risk - FR
Climate-Related Risks— A Focus on Banks and Credit Risk - IT
Climate-Related Risks— A Focus on Banks and Credit Risk - EN
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This guide sheds light on how the financial sector contributes to deforestation and conversion of other ecosystems than forests, calling on central banks, financial regulators and supervisors to put in place adequate monetary, regulatory and supervisory measures. In its first section, the report sets out the importance of forests and other threatened terrestrial ecosystems to life on Earth in general, and humanity in particular. The second section explains why deforestation and conversion are critical for central banks, financial regulators and supervisors and the third section describes the actions taken by some of these players.
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At the request of G20 Finance Ministers and Central Bank Governors, this report takes stock of regulatory and supervisory initiatives associated with the identification and assessment of nature-related financial risks. The stocktake also enquires about the perceptions of central banks and supervisors regarding whether nature degradation, such as biodiversity loss, is a relevant financial risk. It draws on a survey of participating Financial Stability Board members and the work done by international organisations, including the conceptual framework developed by the Network for Greening the Financial System and work done by the Organisation for Economic Co-operation and Development, and funded by the European Union, on nature-related risks.
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Energy-efficient refurbishments require considerable financial resources. They result in market appreciation due to the refurbishment, improved convertibility of the property and additional rental income. Wüest Partner has comprehensively modelled how often and under what conditions this is economically worthwhile for property owners for the Swiss residential building stock.
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Wirtschaftlichkeit der energetischen Sanierung des Wohngebäudeparks - DE
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This publication adapts established valuation techniques in an innovative way to assess how the value of global equities can be affected by physical climate damage and by transition costs for different degrees of aggressiveness of the abatement policy. The topic is not only relevant for investors, but also to regulators, who want to understand how the climate-sensitive assets held by systemically important financial institutions may deteriorate in value and, by so doing, endanger the liquidity and solvency of the institutions, and threaten financial stability.
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How does Climate Risk Affect Global Equity Valuations? - A Novel Approach - EN
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The Swisscanto by ZKB (Zürcher Kantonalbank) report on Swiss Pension funds is published in its 2024 edition. The second pillar is stable just before the vote on the BVG reform. The 24th edition of the Swiss Pension Fund Study confirms: the long-term reduction in occupational pension benefits has been halted. After a good year on the stock market in 2023, the financial situation of the pension funds is solid, and for the first time, benefit improvements are in sight again. According to the study, 39% of all respondents have anchored ESG criteria in their investment policy, a plus of 2 percentage points compared to the previous year.
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The 2024 edition of the Swiss Sustainable Investment Market Study not only provides an overview of sustainability-related investment volumes but also offers invaluable insights into the Swiss sustainable investment landscape, regulatory updates, sustainable investment approaches and much more.
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This document provides additional guidance for financial institutions to apply the TNFD Recommendations. The guidance applies to banks, re/insurance companies, asset managers and owners, and development finance institutions.
Version 1.0 of this guidance was published in September 2023 alongside the TNFD Recommendations
Key focus areas:
- Guidance for financial institutions on the TNFD Recommendations
- Guidance on the TNFD metrics architecture for financial institutions, including a set of final TNFD disclosure metrics for financial institutions
- A list of reference sectors to support the application of the core disclosure metric for financial institutions on exposure to sectors
- A mapping to the TNFD core global metrics of the European Sustainable Finance Disclosure Regulation (SFDR) Principal Adverse Impact metrics
- Additional resources and references on nature-related issues for financial institutions
Key outcomes:
- Overview of the TNFD’s disclosure guidance for financial institutions
- Overview of TNFD metrics guidance for the financial sector
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The ESG Reporting Survey examines how Swiss companies anticipate regulatory developments to prepare for new disclosure requirements and how they integrate these developments strategically and organizationally. The first study analyzed responses from around 100 predominantly Swiss-based companies on the incorporation of ESG topics into strategy and governance, the determinants of ESG reporting implementation, and the maturity and diversity of companies regarding the digitization of reporting processes.
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This report explores why and how corporate impact actors create synergies between impact investing and other corporate areas including philanthropy, sustainability, corporate venture capital, supply chain, product and service innovation, human resources and sustainability. These synergies present opportunities for both impact and business audiences. The report concludes with five essential steps to get started with impact investing.
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The authors of this public discussion note argue that criticism of ESG investing, often referred to as 'woke capitalism', is based on misconceptions about its financial value, such as increasing company value and reducing risk. They emphasise that managing ESG risks, such as climate and biodiversity, is critical for institutional investors. By addressing these risks, investors can create financial value and contribute to societal challenges, underscoring the importance of their role in the green transition amid growing backlash.
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SFI Public Discussion Note The Value of ESG: Where and Why It Matters - DE
SFI Public Discussion Note The Value of ESG: Where and Why It Matters - FR
SFI Public Discussion Note The Value of ESG: Where and Why It Matters - IT
SFI Public Discussion Note The Value of ESG: Where and Why It Matters - EN
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This report was commissioned as part of the PRI's Active Ownership 2.0 programme, and aims to promote industry discussions on stewardship resourcing issues and how to address them. Based on a survey of global stewardship resourcing with over 69 organisations managing a total of $16 trillion AUM, this report goes on to present a Stewardship Resources Assessment Framework to assist asset owners and asset managers in their collaboration and provide reference points.
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As of the 1 January 2024, large Swiss companies must report on their climate risks and business impacts and submit a transition plan to reach net-zero goals by 2050. In this Minergie report, guidance is given for incorporating sustainable buildings, both mortgages and real estate investments which are part of financial portfolios, into these climate reports. The report also includes sample reports that illustrate how best to incorporate this information into reports.
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Vorlage für den Klimabericht: Wie bringe ich meine Minergie-Gebäude in den Klimabericht? - DE
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This report from Clarity AI looks at the implications of ESMA’s new rule restricting the use of ESG and sustainability-related terms in the funds’ names, which suggest that over 44% of funds may need to adjust their name.
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Study: Implications of ESMA's New Guidelines on Fund Names - EN
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This working paper examines the potential of European institutional investors to meet emerging markets and developing economy (EMDE) investment needs, focusing on the largest insurance companies and pension funds (ICPFs) in France, Germany, the Netherlands, Switzerland, and the United Kingdom, which collectively manage $17.56 trillion in assets. It assesses the mobilisation potential across changes in stakeholder expectations, financial market conditions, and legal and regulatory frameworks.
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In the present report, submitted to the Human Rights Council pursuant to Council resolutions 17/4 and 53/3, the Working Group on the issue of human rights and transnational corporations and other business enterprises clarifies the responsibilities of investors with regard to respecting human rights under the Guiding Principles on Business and Human Rights. It also outlines how investors can align the environmental, social and governance, and sustainability, approaches they take with their responsibilities under the Guiding Principles.
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A/HRC/56/55: Investors, environmental, social and governance approaches and human rights - EN
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This first edition of the Swiss Sustainable Lending Market Study provides in-depth insights about current practices in taking ESG factors into account in the lending business in Switzerland. This publication aims to provide a comprehensive overview of the lending market by making available self-reported data on current market practices and the application of sustainable financing approaches, thereby providing transparency to both the financial sector and the broader public.
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This study examines sustainable finance literacy among Swiss households by surveying a large sample. Sustainable finance literacy is defined as the ability to assess financial products based on their sustainability-related attributes. Multiple-choice questions are employed for measurement, along with open-ended questions to gauge awareness among private investors. Despite Switzerland's high financial literacy, households demonstrate low levels of sustainable finance literacy. However, knowledge in this area positively correlates with ownership of sustainable products. The findings underscore the importance of transparent regulations and increased awareness campaigns for sustainable financial products.
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Sustainable finance literacy and the determinants of sustainable investing - EN
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The Glasgow Financial Alliance for Net Zero (GFANZ) estimates that USD 3.2 trillion is needed annually to stop global warming. Private investments are crucial to fill this gap, but they often lack profitability, particularly in developing countries. Blended finance has the potential to leverage public capital and attract private investments, but it must become more scalable. This discussion paper does not provide a detailed examination of individual products or specific regulatory proposals. Instead, it highlights the necessity for private capital, the potential of mixed financing structures, and existing obstacles.
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The Swiss financial sector significantly contributes to the country’s economy, making up 9.1% of Switzerland's GDP in 2023. It maintains strong global connections, with Swiss banks playing a crucial role in financial services. Additionally, insurers, the stock exchange, and emerging areas like sustainability, blockchain, and fintech contribute to the sector’s adaptability and innovation.
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Swiss Financial Sector - Key Figures 2024 - DE
Swiss Financial Sector - Key Figures 2024 - FR
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The authors investigate more than 1,000 investment funds that are classified under Article 9 of the EU Sustainable Finance Disclosure Regulation (SFDR). Using the G7’s new typology of sustainable
investments, we show that Article 9 funds pursue varying degrees of ambition: while 60 % follow an impact-oriented strategy, we identify 40 % that instead pursue a general Environment, Social, and Governance (ESG) strategy. We do not find significant differences in ESG scores between ESG-related and impact-related funds. Yet, impact-related funds have higher SDG impact scores and
higher management fees. Downgraded funds that changed SFDR status, however, tend to be less
focused on impact.
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The biodiversity crisis, alongside the climate crisis, threatens Earth's life-support systems and human well-being. Significant financial investment is essential to halt and reverse biodiversity loss, with resources applied effectively. WWF Switzerland and The Biodiversity Consultancy developed this Biodiversity Impact Assessment Framework (BIAF) to evaluate investment impacts on biodiversity. BIAF assesses biodiversity through extent, condition, and significance, addressing drivers of biodiversity loss. Pilot applications show promising results for decision-making, with further development needed for automation and uncertainty representation.
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Impact investing – i.e., investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return – attracts growing interest from investors. It is, thus, important for the sustainable finance work of ESMA and forms part of a specific workstream on greenwashing, as impact investing – while essential for progressing on the EU’s sustainability objectives – may be prone to misleading, inaccurate or unsubstantiated claims. Impact investing – and ESG investing overall – have a key role to play in achieving sustainability objectives, thus the topic requires particular attention to ensure that products and strategies that aim to foster such objectives stand true to their claims. Impact claims are often based on well-known sustainability frameworks, including the United Nations Sustainable Development Goals (SDGs), which are a significant pillar of the international development agenda. Here specifically, these impact claims suggest a positive contribution to the fulfilment of the SDGs. Their achievement requires substantial financial resources, which can, at least partly, be sourced from private sector actors through the issuance of dedicated financial products. Increasing investor appetite for sustainable financial products has boosted the growth of investment funds claiming to contribute to achieving the SDGs (SDG funds). This article proposes and summarises a methodological approach towards identifying SDG funds and assessing the extent to which their holdings align with their claims by bringing together a unique set of different data sources. Our results highlight some of the challenges in assessing real-world impact claims and show that SDG funds do not significantly differ from non-SDG counterparts or ESG peers regarding their alignment with the United Nations SDGs. This raises questions as to whether funds claiming to contribute to the SDGs are actually fulfilling their promise to investors.
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The purpose of this paper is to present a new methodology for market studies on sustainability-related investments. The paper is based on an earlier white paper by the University of Hamburg and Eurosif (Busch et al. 2022). The updated methodology was developed by Eurosif’s SRI Study Group (SSG) in cooperation with the University of Hamburg, the Sustainable Finance Research Group (SFRG) and Advanced Impact Research (AIR). Over the course of 2023, feedback from both SSG members and other practitioners was taken into account to make the methodology practicable.
Past market studies on sustainability-related investments typically gathered data on a range of different sustainability-related investment approaches and aggregated them to one of a number of “sustainable investments”. However, these statistics did not differentiate between investments based on their investment strategy and/or objectives to actively support the transition towards a more sustainable economy.
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2024.02.15 Final Report Eurosif Classification_2024 (pdf 416.3 kB)
