Digital library on sustainable finance
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In this report, WWF and PwC outline a strategy on how the financial flows of Swiss financial institutions can serve to achieve net zero greenhouse gas (GHG) emissions and recover biodiversity by no later than 2050.
The sustainable finance debate in Switzerland is still characterised by a number of contrasting views with regards to the purpose that sustainable finance should serve, the scope it encompasses, the business lines it focuses on and the type of intervention that is required or desirable. However, in order to create a net zero GHG-emitting and full biodiversity-recovery economy, combined efforts and the buy-in of all relevant sustainable finance actors (financial institutions, federal administration, industry associations, policymakers and civil society) is required. This report therefore sets out six leverage points to produce the desired outcome for Switzerland.
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Green bonds are debt instruments whose proceeds finance projects with various environmental benefits – including climate change mitigation. So far, however, green bond projects have not necessarily translated into comparatively low or falling carbon emissions at the firm level. This report discusses the potential benefits of a firm-level rating based on carbon intensity (emissions relative to revenue) to complement existing project-based green labels. It argues that such a rating system could provide a useful signal to investors and encourage firms to reduce their carbon footprint.
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Green bonds and carbon emissions: exploring the case for a rating system at the firm level - EN
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This report maps out the intensive lobbying on European sustainable finance policy by industry groups representing the finance and corporate (real economy) sectors.
The research covers 75 financial companies belonging to 63 of the largest financial institutions in Europe, 12 finance sector industry associations and 8 corporate industry associations. It finds that whilst a small number of financial institutions have pushed for ambitious policy, the majority have remained silent or stated only high-level support. Meanwhile, all but one of the 20 powerful industry associations analyzed have lobbied to dilute and delay key regulations designed to align Europe's financial system with the goals of the Paris Agreement.
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Sustainable Finance Policy Engagement. An Analysis of Lobbying on EU Sustainable Finance Policy - EN
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The Institute of Financial Services Zug (IFZ), part of Lucerne University of Applied Sciences and Arts, and the Asset Management Association Switzerland published the third edition of the Swiss Asset Management Study.
The study provides a comprehensive overview on asset management in Switzerland and also includes a section on sustainable investing. According to the sentiment survey that forms part of the study, sustainable investment is evaluated as the most promising opportunity for Swiss-based asset managers, alongside specialisation.
The full report is available in English, and a summary in German and in French.
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Swiss Asset Management Study 2020 - DE
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This guide, prepared by Swiss Sustainable Finance (SSF) on behalf of r the Conference of municipal finance directors (KSFD), illustrates how Swiss cities can integrate sustainability into their financial management. The management of pension funds is a key area where cities can contribute to overarching sustainability goals. The guide further makes recommendations on how to address sustainability issues in cash and asset management, real estate management as well as capital procurement through the issuance of green bonds, adding a particular focus on climate change.
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For this report, the PRI collected 40 case studies from asset owners and investment managers, which illustrate the methods, challenges and solutions drawn on to implement the EU Taxonomy in their investment processes. Participating organisations made recommendations on how to approach Taxonomy implementation and on how policymakers may develop and improve the Taxonomy. This report is the first comprehensive set of case studies around how to use the Taxonomy. The PRI hopes that by sharing the key findings with financial market participants and policymakers, the report will foster confidence and facilitate implementation of the Taxonomy.
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Testing the Taxonomy. Insights from the PRI Taxonomy Practitioners Group - EN
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This White Paper, produced by Climate Bonds Initiative and Credit Suisse, presents a framework for defining ambitious and credible transition pathways for companies that will collectively reduce global emissions and deliver the goals of the Paris Agreement. The paper defines transition as a concept and puts forward a framework for use of the transition label.
The paper establishes five principles to drive an ambitious transition: All goals and pathways need to align with zero carbon by 2050 and nearly halving emissions by 2030; be led by scientific experts and not be entity- or country-specific; be sure that credible transition goals and pathways don’t count offsets; include an assessment of current and expected technologies which can be used to determine a decarbonization pathway and be backed by operating metrics rather than a commitment or pledge.
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Financing credible transitions. How to ensure the transition label has impact - EN
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Diese Umfrage des gfs.bern im Auftrag der Schweizerischen Bankiervereinigung erfasst, wie wichtig das Thema Nachhaltigkeit der SChweizer Bevölkerung ist, wie es die Nachhaltigkeit bei Banken beureilt und so sie Handlungsbedarf sieht. Zudem hat das gfs.bern die Schweizer Bevölkerung befragt, welche Stossrichtungen es favorisiert, wenn es um Rahmenbedingungen für «Sustainable Finance» geht. Der Report präsentiert die Resultate der Umfrage.
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Nachhaltigkeit und Banken: Breite Zufriedenheit, bessere Rahmenbedingungen gefordert - DE
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Dieser Leitfaden soll Stiftungen die Auseinandersetzung mit dem Thema Wirkungsanlage vereinfachen und die Umsetzung zweckfördender Anlagen fördern. Die Autoren des Leitfadens haben Vorgehen in sieben Schritten erarbeitet und veranschaulichen dies mit Praxisbeispielen.
Ce guide a pour but d'aider les fondations à traiter le sujet de l'investissement avec impact et de promouvoir la mise en oeuvre de placements favorisant la réalisation des objectifs. Les auteurs du guide proposent un processus en sept étapes qu'ils ont illustré par des exemples pratiques.
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Mit einem Marktanteil von rund 44% aller nachhaltig verwalteten Gelder in der Schweiz spielen Vorsorgeeinrichtungen eine Vorreiterrolle in der Umsetzung des verantwortungsbewussten Investierens.
Die vorliegende Studie untersucht den Stellenwert nachhaltiger Anlagen bei Schweizer Pensionskassen und befragte 24 Pensionskassen mit einem Anlagevermögen von rund CHF 285 Milliarden zu ihren nachhaltigen Anlagestrategien, deren Implementierung und Begriffsdefinitionen rund um das Thema Nachhaltigkeit. Bei den befragten Pensionskassen gaben fast 60% an, nachhaltig investiert zu sein.
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2020_08_Verantwortungsbewusstes Investieren bei Schweizer Pensionskassen_ZHAW (pdf 1.6 MB)Summary
In collaboration with the Federal Office for the Environment (FOEN), Swiss Sustainable Finance (SSF) published a report that analyses the depth of the integration of sustainable finance into financial education and training.
Based on interviews with educational institutions regarding their sustainable finance offerings and with financial institutions on the demand for such training, the report finds that sustainability integration in financial education and training is still in early stages. For a broad integration to be achieved, substantial effort is still required. The report makes recommendations for different target groups to further promote sustainability in financial education and training in Switzerland.
The full report is available in German and French, and a summary in English.
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Sustainability in financial education and training in Switzerland - DE
Sustainability in financial education and training in Switzerland - FR
Sustainability in financial education and training in Switzerland - EN
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This report analyses what it would mean for private banks to ambitiously align themselves with international environmental goals.
The analysis finds three key factors in paving the way for the alignment of private banking activities with international enviromental goals: Integrating material environmental risk and potential adverse environmental impact into decision-making processes, having a strong scientific basis and set science-based targets for all environmental objectives and aligning core business activities with the global environmental goals.
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Private Banking and International Environmental Goals – Aligning Misalignment - EN
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This report covers the topic of nuclear weapon risks for global capital markets and economies as it relates to ESG and impact investors. The report discusses the causes of the state of affairs with respect to nuclear threats and highlights some of the opportunities for an increased focus on nuclear weapons risks by investors.
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Preventing Nuclear Catastrophe - July 2020 (pdf 1.3 MB)Summary
In this paper, the authors take an in-depth look at climate-related financial risks (so-called Green Swan risks). The authors derive a set of important criteria to ensure that climate risk tools provide high quality, comparable, and decision-relevant results. 16 climate transition tools were assessed and their quality, comparability and decision-relevance were estimated. Based on this, potential next steps for providers, conclusions for tool users and guidelines for supervisory authorities were derived.
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202007_Bingler_Taming_the_Green_Swan (pdf 6.5 MB)Summary
This report explores the growth of passive ESG (environmental, social and governance) investing and the debate on the effectiveness of passive versus active ESG funds. The paper draws on publicly available data and insights from the US SIF Foundation research advisory committee and from additional asset manager members of US SIF. The report also includes profiles of four ESG ETFs and four index-based mutual funds that demonstrate a range of approaches to passive ESG investing.
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The Swiss Sustainable Investment Market Study 2020 sheds light on sustainable investment (SI) developments in Switzerland, with a total of 76 respondents, including many of the large asset managers and asset owners covered by the survey.
The total volume of sustainable investments reached CHF 1,163.3 billion by the end of 2019. This includes all reported sustainable investment funds, sustainable mandates and sustainable assets of asset owners. As a new feature, this year’s market study looks at common combinations of SI approaches prevalent in the market. This is particularly valuable, as it is a useful contribution to the growing political debate about the quality and impact of investments.
The market study also includes a comprehensive chapter on regulatory issues in Switzerland, the EU and globally.
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This publication, commissioned by the Swiss Federal Office for the Environment, lays out the methodological foundations for sustainable finance with a focus on water as an environmental resource. The guide focuses on how investors can engage with investees to achieve SDG 6 through basin water security.
While water-related risk is being recognised by many investors, not many take into account the effects of their investment and financing decisions on water quantity and quality in the longer term or engage actively with investee companies. Investors have the possibility to play an active role in contributing to solving the water crisis at scale. Addressing water risks is crucial as it helps mitigate biodiversity and climate risks and achieve the goals of the Paris Agreement as well as the Convention on Biological Diversity (CBD).
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An Investor Guide on Basin Water Security Engagement: Aligning with SDG 6 - EN
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The 10th edition of the Annual Impact Investor Survey provides a comprehensive overview of the impact investing market. The survey covers 294 impact investors who collectively manage USD 404 bn of impact investing assets, thus representing a significant part of the global impact investing market (valued at about USD 715 bn).
The report looks at respondents’ investment activity during 2019 and their plans for 2020, market developments over the past decade, and challenges the market is facing going forward. Respondents also shared insights on how COVID-19 might affect their activities.
The report also includes:
- An updated market sizing analysis, which estimates the current market size at USD 715 billion;
- Trends analysis of 79 repeat Survey respondents, to show changes and trends over time;
- Insights on topics such as climate investing, catalytic capital, the evolution of impact measurement and management practices, and policy developments over the past decade.
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This article asks how sustainable investing contributes to societal goals, conducting a literature review on investor impact—that is, the change investors trigger in companies’ environmental and social impact.
The authors distinguish three impact mechanisms: shareholder engagement, capital allocation, and indirect impacts, concluding that the impact of shareholder engagement is well supported in the literature, the impact of capital allocation only partially, and indirect impacts lack empirical support. The results suggest that investors who seek impact should pursue shareholder engagement throughout their portfolio, allocate capital to sustainable companies whose growth is limited by external financing conditions, and screen out companies based on the absence of specific environmental, social, and governance practices that can be adopted at reasonable costs. For rating agencies, the article outlines steps to develop investor impact metrics. For policy makers, it highlight that sustainable investing helps diffuse good business practices, but is unlikely to drive a deeper transformation without additional policy measures.
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Can Sustainable Investing Save the World? Reviewing the Mechanisms of Investor Impact - EN
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This document is a result of an initiative of the UN Environment Programme’s Principles for Sustainable Insurance to develop the first global guide to manage ESG risks in risk assessment and insurance underwriting.
The focus of this report is on non-life insurance business—also known as property and casualty insurance business.
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Managing environmental, social and governance risks in non-life insurance business - EN
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The NGFS has developed Climate Scenarios (the scenarios) to provide a common starting point for analysing climate risks to the economy and financial system. While developed primarily for use by central banks and supervisors they may also be useful to the broader financial, academic and corporate communities. This document provides an overview of the key transition risks, physical risks and economic impact of climate change.
In addition to this document, the NGFS also published a Guide to climate scenario analysis.
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NGFS Climate Scenarios for central banks and supervisors - EN
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The Guide to climate scenario analysis for central banks and supervisors provides practical advice on using scenario analysis to assess climate risks to the economy and the financial system. It is based on the initial experiences of NGFS members and observers and also aims to advance the discussion on the methodologies used.
Along with this Guide, the NGFS has also published a set of Climate Scenarios.
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Guide to climate scenario analysis for central banks and supervisors - EN
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The Swiss Funds & Asset Management Association (SFAMA) and Swiss Sustainable Finance (SSF) drew up detailed recommendations for the Swiss asset management industry on how to implement sustainable practices effectively. The recommendations and associated core messages are intended to actively help asset managers incorporate sustainability criteria into their investment processes.
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Sustainable Asset Management: Key Messages and Recommendations of SFAMA and SSF - DE
Sustainable Asset Management: Key Messages and Recommendations of SFAMA and SSF - FR
Sustainable Asset Management: Key Messages and Recommendations of SFAMA and SSF - EN
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This is the first time that the Swiss insurance industry has reported on its commitment to sustainability in a joint report. The SIA Sustainability Report covers the areas of investment, operational ecology and underwriting. It is based on data supplied by 32 member companies of the Swiss Insurance Association (SIA). With their investments, these companies account for 94 per cent of all investment made by private insurers (a total of CHF 582 billion as at 31 December 2018).
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SIA 2019 Sustainability Report - DE
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In June 2020, the Swiss Bankers Association (SBA) published a new set of guidelines on the integration of environmental, social and governance (ESG) criteria into the investment advisory process.
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