Sustainable finance is becoming increasingly important across the globe. As a pioneer of sustainable finance, Switzerland is evolving into a leading international sustainable investments hub. Financial sector players and the government are both committed to this process.

Sustainable finance is becoming increasingly important across the globe. Various international bodies and organisations are reviewing sustainable finance in depth and developing standards and objectives, guided by the 17 Sustainable Development Goals (SDGs) set out in the UN's 2030 Agenda and the Paris Agreement. Switzerland is represented and actively involved in the majority of international financial organisations.

Socially and environmentally responsible financial products

In Switzerland, sustainable investments have become increasingly important, both in relation to asset management and investment advisory services, but also for pension funds and insurance companies. Between 2015 and 2019, Switzerland saw exponential growth in sustainable investments, which accounted for approximately 20% of total assets under management. Many Swiss banks are incorporating sustainability into their range of services and are committed to sustainable lending practices. The environment, social responsibility and good governance are also important concerns.

Switzerland has launched various national projects to promote a sustainable economy, including studies on the climate compatibility of Swiss insurance company and pension fund portfolios. Business associations and environmental organisations are developing visions and measures for managing financial markets sustainably and ensuring implementation.

Sustainability in the Swiss financial sector viewed globally

Switzerland's financial centres have all ranked among the world's top ten in the Global Green Finance Index, with Zurich taking first place in 2021.

Switzerland actively works with relevant international financial organisations and is represented in the majority of bodies. More and more banks are involved in global initiatives to ensure the transparency of sustainability risks and are taking voluntary climate compatibility tests.

The government acts as an intermediary in the international arena, engaging in extensive dialogue with industry stakeholders with a view to enhancing the regulatory framework.