Digital library on sustainable finance
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Summary
Im Sommer 2023 hat der Schweizer Verein für verantwortungsbewusste Kapitalanlagen (SVVK) die Anbieter von Immobilienfonds über ihren Weg zu Netto-Null befragt. Die daraus resultierenden Ergebnisse zeigen, wo der grösste Handlungsbedarf besteht.
In der Schweiz stammen rund 30% der inländischen CO2-Emissionen aus dem Immobiliensektor. Um die Schweizer Klimaziele zu erreichen, spielen Immobilien daher eine zentrale Rolle. Als bedeutende Investoren im Schweizer Immobilienmarkt haben sich die Mitglieder des SVVK entschieden, den aktuellen Stand der Klimaanstrengungen bei den Anbietern von indirekten Immobilienanlagen zu erheben.
Die Ergebnisse der Umfrage, an der 22 Fondsanbieter teilgenommen haben, zeigen, dass im Schweizer Immobiliensektor mittlerweile ein Bewusstsein für die Thematik vorhanden ist: Alle befragten Fonds haben mit der Datenerhebung begonnen. Die Transparenz zur Beurteilung der tatsächlichen Fortschritte ist jedoch noch nicht ausreichend. Zwar veröffentlichen immer mehr Immobilienfonds Klima- oder Nachhaltigkeitsberichte, was erfreulich ist. Diese weisen jedoch grosse Unterschiede in Qualität und Tiefe auf.
Auch bei der konkreten Umsetzung von Massnahmen der strategisch definierten Absenkziele sind die Anbieter von Immobilienfonds noch sehr unterschiedlich weit. Die Qualität der entwickelten Umsetzungspläne lässt sich nur schwer überprüfen. Wichtig ist, dass die Fondsanbieter ihre Ziele zur Reduktion von Klimaemissionen mit konkreten Massnahmen verknüpfen, damit diese nachvollzogen und verifiziert werden können.
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Indirekte Immobilienanlagen auf dem Weg zu Netto-Null: Stand und Aktivitäten - DE
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The market for carbon management and sustainability software solutions is constantly changing and is characterised by new start-ups, M&A activities and portfolio expansions by established providers. Legal regulations and new customer requirements are causing companies to continuously expand their product portfolio and place new solutions on the market. As a result, there are more solutions than companies, which which is reflected in the following market overview.
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Financial services providers play a key role in channelling capital to - or ensuring the risks of - companies that are actively facilitating the transition to a more sustainable economy. At the same time, sustainability topics are increasingly on their strategic agenda. Over the past years, many of them have sought to integrate sustainability into their operations, reviewed their investment portfolios from a sustainability perspective and offer their clients products with a sustainability angle (e.g. funds, loans or insurance products).
This report explores how sustainability considerations and practices are incorporated into mergers and acquisitions (M&A) in the financial services industry. It focuses on larger players headquartered in Switzerland and Liechtenstein – highlighting the current market status and providing insights into where the market is expected to shift.
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The Flying Blind series reports analyse whether companies and their auditors are assessing the financial impacts of climate and energy transition matters and reflecting these impacts in financial statements today. This year’s report will be published in four parts. The first, this Overview, discusses the overall results of our assessments and common themes. Management, investors, market regulators, policymakers and standard-setters can reference and use this report in the face of growing risks and company strategies. The basis for this work has not changed; accounting and auditing standard-setters are clear that climate and energy transition risks should be considered today
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The European Sustainable Finance Action Plan marked its 5th anniversary in 2023. Since its publication in 2018, the Action Plan reshaped the European sustainable finance. It has also substantially impacted the European and global sustainable finance debate.
As this book goes to publication, the Action Plan's four key regulations are now all in force. The sustainable finance market is also in the process of reaching a new level of maturity in tackling greenwashing. The new European regulatory architecture for sustainable finance is getting closer and closer to its conceptual completion.
The book offers an in-depth overview of this new emerging field of European law. It starts with a discussion of the purpose and underlying principles of the new European regulatory framework for sustainable finance, proceeds with an analysis of the four key regulations that have emerged out of the Action Plan's legislative agenda and closes with a section on tackling greenwashing.
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The TPT Asset Managers Sector Guidance adds further depth and detail for preparers of transition plans that are operating in the Asset Management sector.
The Guidance is open for consultation until 29th Dec 2023
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Transition Plan Taskforce: Asset Managers Sector Guidance - EN
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The Global Sustainable Investment Alliance (GSIA) has today published its sixth edition of the biennial Global Sustainable Investment Review (GSIR), sponsored by HSBC Global Research, finding that US$30.3 trillion is invested in sustainable assets globally.
The report shows that in non-US markets – Canada, Europe, Japan, Australia and New Zealand – there has been a 20% increase in sustainable assets under management (AUM) since the 2020 GSIR.
The report also showcases a maturing of the industry, which includes the adoption of tighter definitions of when a fund can be described as ‘sustainable’. These newly imposed standards were a direct response to growing concerns around ‘greenwashing’ and thus impacted how the US SIF has measured ‘sustainable assets’ in the period to 2022. As a result of the US SIF’s methodology change, the report finds a drop from $17tn in reported AUM in the United States in 2020 to $8.4tn in 2022.
Similarly, in Europe, the long-term trend suggests that the proportion of assets defined as ‘sustainable’ has been declining by around 5% per year. Increased requirements around disclosure regulations and the tightening of definitions around sustainable investing and its related approaches may be contributing to this decline.
A wider trend is also emerging globally highlighting the need for clearer definitions and a more shared understanding around what makes a sustainable asset ‘sustainable’. Further developments can be expected in the years to come, as the EU’s Sustainable Financial Disclosures Regulation (SFDR) continues to evolve, alongside other global disclosure and labelling approaches, and as data availability and quality increases.
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This document is a paper that responds to questions from number of G20-member governments about how addressing nature-related data challenges could enable and accelerate the uptake of corporate reporting and target-setting by business and finance, in line with Target 15 of the Global Biodiversity Framework.
Key focus areas
- An outline of nature-related data needs to respond to key nature data challenges
- An overview of solutions to nature-related data challenges: the case for a global nature-related public data facility
Key outcomes
- Providing global solutions to nature-related data challenges to enable and accelerate uptake of corporate reporting and target-setting by business and finance
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This document provides draft core sector disclosure metrics for the following sectors:
- Apparel and textiles
- Construction materials
- Infrastructure
- Real estate
Key focus areas
The discussion paper presents:
- Proposed guidance on how to apply the TNFD core global disclosure metrics in each sector, where relevant
- Proposed core sector disclosure metrics
- Proposed additional sector disclosure metrics
Key outcomes
- Enable disclosure at sector level
- Support financial institutions in comparing across organisations within that sector, who often face common nature-related issues
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This document is a discussion paper on how organisations can approach the analysis of their upstream and downstream value chains. It includes discussion of when it is appropriate to seek full traceability, and where use of secondary data may be an acceptable alternative to the direct measurement of dependencies and impacts.
Key focus areas
- Outline of value chain characteristics that can create challenges assessing nature-related issues
- How organisations can approach these issues using the LEAP approach
- An overview of data needs for assessing value chains and how to address them
- How related disclosure frameworks and standards approach value chains
Key outcomes
- An understanding of TNFD’s approach to assessment of nature-related issues along value chains
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This document is a discussion paper that outlines approaches to advanced scenario analysis. It builds on the TNFD’s foundational guidance on scenario analysis. It is primarily intended for experienced users of scenarios in financial institutions and large multinational companies interested in advanced nature scenario methods. This may include those taking action in anticipation of regulatory stress testing, as has occurred with climate-related risk assessment.
Key focus areas
- A comprehensive overview of three phases of scenario development, tailored for advanced assessments
- Practical step-by-step outline of the implementation of each phase
- Examples of scenario development and application for different use cases using the IPR FPS + Nature approach as an illustration
- Overview of recommendations and guidance on nature-related scenario in frameworks and standards
Key outcomes
- Stimulate feedback to the TNFD on the development of guidance on advanced scenarios.
- Enable financial institutions and large corporates to use advanced scenarios to explore implications of uncertainties, assess risks, set targets and transition plans and test the resilience of their strategies.
- Support action by financial institutions in anticipation of regulatory stress testing on nature-related risks, as has occurred with climate-related risk assessment.
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Discussion paper on conducting advanced scenario analysis - EN
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This document is a discussion paper that presents an overview of the current landscape of biodiversity footprinting approaches, including their limitations and sets out six steps to help market participants select and disclose these approaches appropriate for their requirements.
TNFD developed this paper in partnership with the Partnership for Biodiversity Accounting Financials (PBAF). It builds on the significant work on biodiversity footprinting of PBAF, the Align project, the Finance for Biodiversity Foundation and others to help companies and financial institutions make informed decisions on where to start and the approaches to use as they navigate this area.
Key focus area
- A definition of biodiversity footprinting
- An overview of the current landscape of footprinting approaches
- Summary of the limitations of existing approaches to footprinting
- Six steps to help market participants select and disclose biodiversity footprinting approaches appropriate for their requirements
Key outcomes
- Inform the ongoing development of the TNFD’s measurement architecture
- Assess the decision utility of biodiversity footprinting methodologies to help market participants
- Present draft guidance on biodiversity footprinting approaches for market feedback
- Stimulate further innovation by developers and data providers in nature-related methodologies, tools and analytics
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Discussion paper on biodiversity footprinting approaches for financial institutions - EN
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This short pamphlet by NatureFinance poses the question of whether current systems are equipped to limit warming to 1.5 degrees and what will happen if this is not achieved. It outlines three systemic features that must be considered in any successful transition to a 1.5 Degree world –refugees, food security and finance.
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This new publication from PRB gives guidance for banks on Nature Target Setting, particularly when it comes to lending activities, on or off balance sheet investing activities and capital market activities.
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Principles for Responsible Banking (PRB): Guidance for banks PRB Nature Target Setting - EN
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The Tameo Private Asset Impact Fund Report 2023 report stems from a six-month survey conducted by Tameo, focusing on private asset impact funds (PAIFs) primarily investing in developing countries. The surveyed market encompasses investment vehicles managed by specialized impact fund managers with over 50% of their non-cash assets allocated to private debt or private equity instruments, primarily in emerging and frontier markets, with a development impact bias. Investment managers (IMs) headquartered in Switzerland manage 13% of total AuM (being the largest market share behind the USA).
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SUSREG Tracker is WWF´s interactive online assessment tool that evaluates progress on the integration of environmental and social risks into central banking, financial regulation and supervision activities. The findings from the latest SUSREG Tracker show a significant increase of sustainable regulatory and supervisory measures by several central banks and financial supervisors with a strong focus on climate. 68% of high-income countries have not yet adopted considerable climate and environmental banking supervision policies.
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The SSF Spotlight report identifies sustainability-related challenges associated with derivatives, with a particular focus on three client-relevant aspects: market signal and exposure to underlying assets, associated ownership rights, and transparency in reporting. Developed in collaboration with an SSF Focus Group, the report provides concrete guidance on aligning derivative usage with sustainability objectives and enhancing transparency in sustainable investing
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Climate reporting by Swiss companies is not yet aligned with the TCFD recommendations. In this study, we assessed climate related reporting for the fiscal year 2022 from 40 non-financial publicly listed companies on the Swiss SIX stock exchange. Our research focused on the extent of alignment
of observed disclosures related to the 4 TCFD fundamental areas (Governance, Strategy, Risk Management, and Metrics and Targets). Results show that public disclosures are generally not well aligned with the TCFD recommendations. It’s important to note that our study is based on data up to
December 2022. Companies may be currently undertaking significant efforts in improving their public disclosures to adhere to the upcoming Swiss Ordinance obligations, which is not reflected in these findings.
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Thought_Leadership_Report_Climate_Reporting_in_Switzerland_November_2023 (pdf 7.2 MB)Summary
The European Sustainable Finance Action Plan marked its 5th anniversary in 2023. Since its publication in 2018, the Action Plan reshaped the European sustainable finance. It has also substantially impacted the European and global sustainable finance debate.
As this book goes to publication, the Action Plan’s four key regulations are now all in force. The sustainable finance market is also in the process of reaching a new level of maturity in tackling greenwashing. The new European regulatory architecture for sustainable finance is getting closer and closer to its conceptual completion.
The book offers an in-depth overview of this new emerging field of European law. It starts with a discussion of the purpose and underlying principles of the new European regulatory framework for sustainable finance, proceeds with an analysis of the four key regulations that have emerged out of the Action Plan’s legislative agenda and closes with a section on tackling greenwashing.
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Developed in collaboration with ZHAW School of Management and law, the new SSF Spotlight publication, titled “Sustainable Real Estate Investments: Insights for Direct Real Estate Investors” provides concrete guidance on how to align investment decisions with specific sustainability objectives and requirements, and how to navigate the diverse landscape of labels, benchmarks, and monitoring tools.
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Sustainable Real Estate Investments - DE
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The Asset Management Association Switzerland (AMAS) and Swiss Sustainable Finance (SSF) have published the Swiss Stewardship Code, which provides asset managers, asset owners and financial service providers with guidance to encourage the active exercising of shareholder rights by investors in Switzerland. Investor stewardship is fundamental for effective investment and promoting sustainable businesses.
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In this market overview, three main objectives are examined within the regulation that applies to Switzerland: improve transparency on sustainability characteristics of financial products, promote classification systems for financial products based on their sustainability characteristics and require the integration of client ESG preferences in advisory services. After an examination, three recommendations are made for improving Swiss frameworks on sustainability-related disclosures of financial market participants.
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Sustainable Finance Regulation: A Comparative Analysis for Switzerland - EN
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A new report, from WWF and Deloitte Switzerland, offers a first comprehensive insight into the impact of insurance companies’ underwriting business on climate change and biodiversity loss. Insurance companies have several possibilities to reduce their negative environmental impact and to become catalysts for a green, fast and fair transition. In this report, WWF recommends 6 actions; alignment, engagement, promotion of green choices among clients, eliminate harmful policies, exclusion and fossil fuel phase-out.
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The long awaited Taskforce for Nature-related Financial Disclosures (TNFD) Recommendations include general disclosure recommendations across four pillars of governance, strategy, risk and impact managament and matrics and targets.
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Taskforce on Nature-related Financial Disclosures (TNFD) Recommendations - EN
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This document provides additional guidance for financial institutions to apply the TNFD Recommendations. The guidance applies to banks, insurance companies, asset managers and owners, and development finance institutions. Examples of different ways biodiversity and nature is currently already being disclosed by FIs alongside recommendations about how the TNFD can be used now by FIs despite data limitation.
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