The new year has started with a peak of regulatory action both in Switzerland and abroad. Whoever was hoping for frameworks to stay stable, has already been disappointed. However, much as it can be tedious for market actors to keep track of all the changes and adapt procedures accordingly, it is important to think of regulation as an enabling force for clarity in markets and contributing to a clear differentiation between: the avoidance of risk (which is part of the fiduciary duty of all those that manage assets on behalf of others), the alignment to values (which is the requirement of many clients) and the causation of impact (which is needed now more than ever).

As most of you have heard by now, 2024 is the anniversary year for SSF. The world of sustainable finance has definitely become a lot more complex since SSF was founded 10 years ago. But it also has turned more innovative, impact oriented and focused on key issues. Climate change and nature risks stand at the heart of many sustainable financial services that are being developed. The question of how investors can best support a just transition to a world thriving with rich biodiversity, below 2 degrees warmer than in pre-industrial levels, and offering a decent living for all communities will guide our activities in 2024.

Since this guiding question is not the only one that is looking to be answered, SSF introduces the “Question of the Month”. We’d like to take the pulse on key issues and learn how you see the best way forward. If you wish to express your opinion, jump to section two and answer the first question. We hope to be in a regular dialogue with you over the course of this year through our many planned events and webinars – particularly at our 10-year anniversary event on 20 June 2024.

> Visit our website for more about these and other SSF activities

It is key for us to learn what our stakeholders think about important trends in sustainable finance. This is why we introduce the “Question of the Month” through which we aim to take the pulse on current topics. Let us know your opinion about the question of the month!

The TNFD has brought biodiversity risks onto the agenda of the financial sector. We’d like to hear how important you consider reporting on this topic.

Do you think nature risks and impacts is an important area for the financial sector to report on? 

Swiss News

• The Swiss Financial Market Supervisory Authority FINMA set out its supervisory practice on the management of nature-related financial risks by publishing a new circular that will apply to banks and insurers on 1 February 2024. The public consultation on the circular will run until 31 March 2024. 
• On 24 January 2024, the Federal Council opened the consultation on the Ordinance on Climate Protection (KlV) running until 1 May 2024. On 1 January 2025, the Climate and Innovation Act and its implementing Ordinance are expected to enter into force.
• Also in January, the Federal Council adopted the first mid-term report on the implementation of its Sustainable Development Strategy (SDS) that set out guidelines for the Federal Council's sustainability policy 2030 and establishes sustainable development as an important requirement for all federal policy areas.
• The ordinance on mandatory climate disclosures for large companies entered into force on 1 January 2024.
• On 23 December 2023, the Federal Council took note of a study concluding that the EU-CSRD could have a direct impact on several hundred companies in Switzerland. The study will be updated after the adoption of the CSRD. Based on this analysis, the Federal Council will decide on the next steps.
• The Federal Office for the Environment (FOEN) will be collaborating with the OECD secretariat to examine the exposure of Swiss financial institutions to nature related risks. The aim is to develop a biodiversity risk and alignment assessment tool, according to a journalist at Responsible Investor. An initial draft confidential report will be prepared by June 2024, at which point conversations will proceed.

European News (selection)

• Lawmakers in the European Parliament and Council announced on 6 February that they have reached a provisional agreement on a proposal to regulate ESG ratings providers, and introducing rules to increase the reliability and comparability of ESG ratings and prevent providers’ conflicts of interest. The new regulation would bring ESG ratings providers under the authority of European markets regulator ESMA. With the achievement of the provisional agreement, the new rules will need to be formally adopted by the EU Council and Parliament before officially entering into force, and will be applicable starting 18 months later.
• On 9 January 2024, the European Single Access Point (ESAP) regulation entered into force. The ESAP provides access to public financial and non-financial information on EU companies and EU investment product that are available based on reporting obligations required for example under the TR, SFDR and CSRD.
• The EU Council and Parliament announced a provisional agreement on the Corporate Sustainability Due Diligence Directive (CSDDD) on 14 December 2023. The Directive lays down rules on due diligence obligations for large companies and aims to enhance the protection of the environment and human rights. It will apply to financial and non-financial companies.
• On 4 December 2023, ESAs published a final report containing draft Regulatory Technical Standards (RTS) on the review of PAI and financial products disclosures in the SFDR Delegated Regulation. It is unclear as when the new provisions are likely to become effective.
• On 22 December 2023, the Delegated Act and annexes on the first set of European Sustainability Reporting Standards (ESRS) were published in the Official journal and have been applicable since 1 January 2024. Entities in scope of the CSRD muss issue reports based on the ESRS. 
• France’s Greenfin labels now include nuclear power, which mirrors the inclusion of nuclear power in the EU Taxonomy.

International News

• Switzerland and the United Kingdom have signed the Berne Financial Services Agreement, a mutual recognition of financial services. This agreement aims to strengthen the cooperation between two major international financial centres and create recognition of their respective legal and supervisory frameworks on the basis of an in-depth review, thus enabling mutual market access.
• Building on the work of the United Nations Secretary General’s High Level Expert Group on Net-Zero Emissions Commitments of Non-State Entities, the Taskforce on Net Zero Policy launched at the end of 2023 aims to ensure the credibility and accountability of the 1.5°C-aligned net zero emissions commitments by non-state actors .

Market News

• In a joint letter to the EU Commission Impact Europe (formerly EVPA), the investing for impact network, the Global Steering Group for Impact Investment (GSG), along with its National Advisory Boards and the Global Alliance for Impact Lawyer.
• Results of a recent Swiss Finance Institute research paper demonstrates that engagement by financial institutions is significant in effecting company policies around climate targets.
• The GRI Standard for biodiversity was updated in January. It includes topic disclosures on identification of biodiversity impacts, their locations, their direct drivers, changes to the state of biodiversity and ecosystem services.
• The European Banking Authority (EBA) initiated a public consultation concerning the draft Guidelines addressing the management of Environmental, Social, and Governance (ESG) risks. The consultation runs until 18 April 2024.

We are happy to welcome the following organisations as new SSF members:

• Icccon AG (Service Provider)
• SIGLO Capital Advisor AG (Asset Manager)
• Quantus AG (Asset Manager)
• Valori Asset Management (Asset Manager)

The full list of our members and network partners, now standing at 249, can be found here.

• 13 February, SSF/GCNSL Joint Webinar: Getting Started with the TNFD Framework
• 29 February, ICF:7th Sustainable Investor Summit, Zurich
• 5 March, University of Zurich: Launch Event for the Initiative in Sustainable Finance, Zurich
• 11 March, VPS Webinar Series - Fokus Pensionskasse: Immobilien
• 21 March 2024,SSF/USI joint hybrid event: Carbon Markets and Their Role for the Transition, register to join us in Lugano or to join us online
• 20 June 2024: SSF Annual Conference 2024 and 10 Year Anniversary: The Next 10 Years, Bern

Further events are listed on the SSF website.

• 31 January 2024, Wo steht die Vorsorgebranche? Penso
• 30 January 2024, A la recherche de Crédit, Le Courrier
• 30 January 2024, Derivate für nachhaltiges Investieren, Absolut research
• 21 January 2024, La responsabilità degli investitori immobiliari, Corriere del Ticino
• 1 December 2023, Swiss Stewardship Code definiert eine Art Standard, NZZ

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