Digital library on sustainable finance
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Der Bericht beschreibt die Investments von Schweizer Pensionskassen, die teilweise in Unternehmen fliessen, die die Zerstörung tropischer Wälder in Kauf nehmen oder aktiv beteiligt sind. Sie befördern damit die Klimakrise und den Verlust der Artenvielfalt. Der Bericht liefert Empfehlungen für Pensionskassen und Versicherte.
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602a0c53-greenpeace_schweiz_pensionskassen_abholzung_2022 (pdf 13.0 MB)Summary
SSF together with PwC, AMAS, Swiss Banking, SVV prepared the report "Setting sail for a carbon-neutral future: Net Zero Insights 2022" to give a progress update on net zero commitments within the Swiss financial centre. The aim of this study is to create awareness for the importance of decarbonisation, provide context for net zero levers and create transparency.
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Setting sail for a carbon-neutral future: Net Zero Insights 2022 - EN
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This Report proposes “Managed Phaseout” as a net zero-aligned approach for the operation and financing of a high-emitting asset with clear commitments around its retirement. This Managed Phaseout approach may also form part of a company’s strategy, where it operates high-emitting assets, in support of an orderly and just transition. The Report sets out nine actions GFANZ will take forward, in collaboration with partner organizations, that would build on this initial thinking and address the needs identified in order to establish Managed Phaseout as a credible net zero-aligned strategy to support the decarbonization of the global economy.
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This white paper captures the transition contribution of different investment approaches based on the notion of investor impact. This is a first step for the developing a scheme that can serve the classification lofic in future market studies. It goes beyond the concepts used in the SFDR, the EU Taxonomy and MiFID II which focus predominantly on identifying companies that are already sustainable, aligned or have a positive company impact. The structure of this white paper is first, to focus on the dimensions and criteria that serve as the foundation for the new classification; and second, to introduce a new classification scheme and elaborate on the underlying logic. Important: This classification is not to be an implementation tool for regulatory requirements. Its aim is rather to illustrate how investments accelerate the just and sustainable transition of the real economy. An important next step is to develop a more detailed assessment system to evaluate which investments qualify for which of the classification’s categories.
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This report, produced in collaboration with EY, addresses the risk that investors and clients may be consciously or unconsciously misled about the sustainability characteristics of financial instruments and services, leading to an expectation gap or so-called 'greenwashing'. To address this issue, and in response to requests from SSF members for practical implementation, SSF decided to develop recommendations to provide guidance to practitioners on how best to integrate clients' sustainability preferences into the advisory process.
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In this joint report by the University of Zurich and Center for Sustainable Finance & Private Wealth, commissioned by the Swiss Federal Office for the Environment (FOEN), the impact of ESG integration on the real economy is examined. ESG integration is the most frequently used sustainable investment approach, globally and within Switzerland. This report investigates current academic literature to determine if there is an impact on the real economy, and if so, what this is.
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In this report published by the Finance for Biodiversity Initiative, the impact of biodiversity loss on sovereign debt markets in 26 nations is examined. Currently, leading credit rating agencies (CRAs) do not explicitly incorporate biodiversity and nature-related risks in their analysis and thus market stability may be undermined. This report models the effect of nature loss on credit ratings, default probabilities, and the cost of borrowing.
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This document is a publication of the Glasgow Financial Alliance for Net Zero (“GFANZ”) which aims to introduce, and provide an overview of, a set of resources published by GFANZ on 15 June 2022 to support financial institutions’ efforts to finance and enable the whole-economy transition to net zero
(the “Publication”). To fill the gap given the current absence of official policy and requirements, GFANZ has published a framework for financial institutions’ net zero transition plans, released for consultation alongside several connected resources, to encourage a common approach to credible transition planning. Collectively, these five documents comprise a set of related tools, frameworks, and other resources to support transition planning across the financial sector, with the goal of enabling and financing the real-economy transition to net-zero:
• Recommendations and Guidance on Financial Institution Net-zero Transition Plans
• Guidance on Use of Sectoral Pathways for Financial Institutions
• 2022 Concept Note on Portfolio Alignment Measurement
• Introductory Note on Expectations for Real-economy Transition Plans
• Managed Phaseout of High-emitting Assets Report
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This is the intermin report open for Consultation until July 27 2022.
This report introduces GFANZ proposed recommendations and guidance for delivering net zero transition plans for financial instiutions across the financial sector. GFANZ considers a credible net-zero plan to be a set of goals,a ctions and accountability measures to align a business' activities with net zero by 2050. This report details how such a plan consists of the following elements; foundations (objectives and priorities), implementation strategy (including products and services, activities and decision-making), engagement strategy (including clients and portfolio companies, industry, government and public sector), metrics and targets and governance (including roles, responsibilities andremuneration and skills and culture).
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Financial Institutions Net-zero Transition Plans: Recommendations and Guidance - EN
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Sectoral pathways provide the link between the science of the remaining carbon budget and the detailed steps that a specific sector could take to reduce GHG emissions to a particular level in a specified timeframe. Sectoral pathways do this by providing a benchmark on the pace and timing of GHG emissions reductions needed, identifying the interdependencies between sectors, and articulating the underlying actions that can be taken or the changes within the sector that would drive the specified transition (e.g., technology development and/or adoption, regional variations, the retirement of assets, market changes, policy levers, energy mix). Such pathways provide a useful benchmark for financial institutions to shape their lending, investment, and insurance activities, and related services, in line with the net-zero transition in particular sectors. Critically, these pathways are important for industry to set out a clear target that will drive their investments, operations, and other activities to transition to a low-carbon economy. Debate, discussion, and potential alignment on pathways can facilitate collaboration between industry and the financial services sector, together with policy makers and other stakeholders collaborating to drive decarbonization, and contribute to an accelerated, orderly transition to net zero
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Guidance on Use of Sectoral Pathways for Financial Institutions - EN
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This note aims to introduce the work that GFANZ is doing to support and accelerate the development of real-economy transition plans, by providing clarity around the expectations of financial institutions for the disclosure of transition plans, leveraging existing tools and frameworks.
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Introductory Note on Expectations for Real-economy Transition Plans - EN
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This is the concept note on the Portfolio Alignment Measurement, which aims to illustrate the foals of the Portfolio Alignment Measurement workstream, outline plans for 2022, identify barriers for the adoption of portfolio alignment metrics and to share an initial view of potential enhancements to the Key Design Judgementss as outlined in the Portfolio Alignment Team (PAT) report.
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Traditionally, sustainability and climate metrics are focused on the status quo of invested companies, while portfolio climate alignment methods incorporate forward looking metrics. Meeting critical targets such as those set by the Paris climate agreement, require a forward looking approach. Currently however, available climate alignment methods are still very diverse, partially because they are targeted to different use cases. Therefore, it is important to understand the actual incentivisation effects of these methods. This study examines potential incentives and disincentives created by portfolio climate alignment methods for aligning financial flows with the climate targets of the Paris Agreement.
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The topic of sustainability is becoming more and more important for our society and our financial sector. This teaching material takes up these and other topics in a clear way. In order to understand the dynamics inherent in this area, the concept of sustainable development is outlined using a global outline and the current European and the emergence of Swiss regulation are explained. A discussion of future challenges of the topic and modern terminology such as greenwashing is also included in this teaching material.
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Sustainable Finance Eine praxisorientierte Darstellung der Nachhaltigkeit im Banking - DE
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Sustainable investing is now mainstream in Switzerland, according to the fifth Swiss Sustainable Investment Market Study by Swiss Sustainable Finance and the University of Zurich. Asset managers, pension funds and private clients are increasingly demanding sustainable solutions, but the complexity of the market and inconsistent standards raise concerns about greenwashing. The Swiss government and FINMA are promoting transparency. Despite the challenges, the impact of sustainable investments remains critical in the midst of global crises. The study offers insights into regulatory developments, biodiversity, gender-related factors, and net-zero investor alliances, aiming to advance sustainable finance for positive economic and societal change.
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Switzerland needs to invest 13 billion Swiss francs a year until 2050 to transition to a sustainable economy. Banks play a crucial role in this process by providing corporate loans and mortgages, especially to SMEs and individuals who don't have access to capital markets. This publication examines the integration of sustainability into financing, focusing on corporate loans and mortgages. It addresses the complexity of challenges such as lending practices, risk assessment and the multiple demands from the real economy, the financial system and policymakers. With a focus on financing sustainability solutions for the UN SDGs, it considers both lender and borrower perspectives.
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The Institutional Investors Group on Climate Change (IIGCC) published their 2022 report, which aims to provide an overview and tools for investors to accelerate the energy transition via their investments and engagement. The report stresses the importance of transitioning toward net-zero alignment, measuring portfolio emissions and mobilizing finance towards climate solutions.
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The Intergovernmental Panel on Climate Change (IPCC) working group III published its new report with an updated global assessment on climate change mitigation progress and pledges and examines global emission sources. The costs, risks and opportunities of low-carbon technologies are examined using climate modelling to project these along with market data. Finally a number of potential system transformation are explored.
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This paper represents the first steps in science-based net-zero standard for financial institutions (SBTi-FI) that sets out principles definitions, metrics and target formulation considerations. The document discusses the results of a number of surveys and workshops conducted in December 2021, which span topics ranging from feedback on the five proposed principles for net-zero, the role of carbon credits, fossil fuel financing and metrics and methods.
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Foundations for Science-Based Net-Zero Target Setting in the Financial Sector - EN
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The Inter-agency Task Force on Financing for Development report for 2022 demonstrates that 3.5 percent of revenue is used by developed countries to pay interest on their debts, while developing countries use 14 percent of revenue. 60 percent of LDCs and low income countries are at a high risk of debt distress, which is twice the percentage as in 2015. The report recommends different actions to bridge this gap.
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Financing for Sustainable Development Report 2022: Bridging the Finance Divide - EN
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This report examines the role of national central banks’ (NCBs) in-house credit assessment systems(ICAS) and looks at a possible integration of climate and environmental-related (C&E) risks beyond conventional financial indicators. The report concludes that the ICAS assessment is highly suited towards climate and environmental (C&E) risk integration and is a less biased and more consistent source of data than many private-sector ESG providers offer.
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In this report by SwissBanking the role of banks in Switzerland's buildings' energy efficiency and the pace of renovation needed to meet climate goals in the real estate sector is analyzed. Banks can provide financial incentives to motivate renovation and as such the Swiss Bankers Association (SBA) has named 4 areas the priority for banks looking to improve their climate efficient mortgages: more comprehensive client consulting, classification and climate-efficient mortgages, creating a suitable regulatory framework, improved data availability and a higher level of digitalization.
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Climate-efficient mortgages – The ins and outs Opportunities for greener property financing - DE
Climate-efficient mortgages – The ins and outs Opportunities for greener property financing - FR
Climate-efficient mortgages – The ins and outs Opportunities for greener property financing - EN
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In this final report on the Social Taxonomy, the EU Commission Platform on Sustainable Finance provides a structure for a social taxonomy, its relationship with the environmental taxonomy and other sustainability objectives such as governance and the regulatory landscape. The two key features of the social taxonomy are: 1) the distinction between inherent social benefit, i.e. job creation, and additional social benefits and 2) the social taxonomy cannot be based on science.
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The EU Commission Platform on Sustainable Finance Final Report on Social Taxonomy - EN
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The authors suggest creating a Swiss green Investment Bank (SGIB), with the mandate to enthuse financial players to act and to aid the international climate finance efforts. In this report the required characteristics of such a bank are explained and potential actions are explored.
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This report is published by the Working group II of the Intergovernmental Panel for Climate Change (IPCC). The current and modelled impacts on climate, ecosystem and biodiversity and potential risks are documented. This SSF summary highlights the financial aspects of this report. Read the summary for policymakers here.
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