The year 2020 has so far proven to be full of enormous challenges for our society, yet it has also made it very evident that the integration of environmental, social and governance factors is indispensable. We see more and more important actors around the globe raising their efforts to encourage sustainable finance. In fact, SSF had the pleasure to work with new actors taking interest in sustainable finance in the past two months, such as the Swiss municipal finance directors and the Swiss Consulate General in Hong Kong.

On multiple fronts, we are thus gaining ground. In Switzerland, with the newly revised CO2 law adopted by parliament, the outlines of a low-carbon future are becoming clearer and more attainable. Although more ambitious action must follow suit, these developments provide the financial sector with a sense of direction and motivate us to keep up our efforts. At SSF, we particularly look forward to launching a new report in November on financing instruments for a low-carbon economy, in which we will present a broad compendium of innovative ways to channel funding into the solutions necessary for a low-carbon future.

Kind regards and stay healthy,

Anja Bodenmann

Project Manager, Swiss Sustainable Finance (SSF)

SSF activities at a glance

Regulatory and market news

New members joining SSF

Join these events

SSF and sustainable finance in the media

New reports & studies

New report on sustainable financial management for cities

Webinar on sustainable finance in Switzerland and Hong Kong

Webinar with Ticino for Finance

WWF & SSF joint webinar series

Read more about these and other SSF activities

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Swiss news

• After 3 years of deliberations, the Swiss parliament passed the revised CO2 Law on 25 September, setting out a more ambitious domestic reduction target and stringent measures for multiple sectors. It also stipulates that financial flows need to be aligned with climate targets and requires the Swiss National Bank (SNB) and the Financial Market Supervisory Authority (FINMA) to review micro- and macro-prudential financial risks of climate change.
• The State Secretariat for International Finance (SIF) conducted a survey among Swiss green fintechs to assess the opportunities for concrete technological applications and potential obstacles for Swiss green fintechs in terms of funding, availability of data or regulatory environment.
• The Task Force on Nature-related Disclosures has now officially launched its Informal Working Group (IWG). With the Swiss government and Swiss financial institutions involved, the IWG will develop an international reporting standard for biodiversity and natural capital.

International initiatives

• As part of its new Capital Markets Union action plan, the European Union (EU) announced its plan to create a single platform for sustainability and financial data under existing EU disclosure rules, which investors and other financial players have called for in the past.
• The EU has delayed the publication of the regulatory technical standards which stipulate detailed disclosure requirements for the Sustainable Finance Disclosures Regulation (SFDR). While the detailed level 2 requirements will thus likely not enter into force before 2022, the EU maintains that the principles-based level 1 requirements will still be applicable as of March 2021.
• In early October, the EU also launched its Platform on Sustainable Finance and published the list of the selected 50 experts. The platform will advise the Commission on the development of technical screening criteria for the taxonomy and other matters.
• New Zealand has become the first country to require financial companies to report against TCFD recommendations and disclose their exposure to climate risk.
• Luxembourg launched a Sustainability Bond Framework, designed to comply with ICMA Principles and the planned EU Green Bond Standard. It is the first European country to do so.
• Also for the first time, the PRI delisted 5 signatories for failing to meet its minimum requirements. Additionally, the PRI plans to roll out a new reporting framework in January 2021.
• The Science Based Targets initiative launched a pilot validation service for financial institutions. The new framework assists financial actors to align their lending and investments with the Paris Agreement.

Market trends

• Reinsurance company Swiss Re reported its decision to raise its internal carbon price, used to estimate the costs of various operations, to USD 100 per metric ton next year. By gradually increasing to USD 200 by 2030, the company aims to mirror the true cost of carbon more accurately.
• UBS announced that it would advise private clients investing globally to choose sustainable investments over more traditional options, making it the first major financial institution to officially do so.
• The big accounting firms KPMG, Deloitte, EY and PwC advocated for a unified reporting framework for ESG standards, in a report prepared together with the World Economic Forum and the International Business Council (IBC).

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We are very happy to welcome the following organisations to our network:

The full list of our members and network partners, now standing at 162, can be found on the SSF website.

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Upcoming SSF events:

• Save the date: 19 November 2020, Launch Webinar for new SSF Report: Financing the Low-Carbon Economy, Online (more information soon)

Other sustainable finance events:

• 26-27 October 2020, SIIA Virtual Impact Summit, Online
• 29 October 2020, Zurich Forum for Sustainable Investment, Zurich (with a welcome note by SSF President Jean-Daniel Gerber)
• 3 November 2020, ABS & CEPS Webinar "Mit Wirkung anlegen", Online
• 10 November 2020, Virtual Geneva Summit on Sustainable Finance, Online
• 12 November 2020, Annual SFI Meeting: Finance and the Green Transition, Zurich/online
• 13-14 November 2020, Sustainable Finance Hackathon, Geneva/online
• 18 November 2020, Sustainable Investments Day, Zurich
• 24 November 2020, Lugano Finance Forum, Lugano

Further events are currently being planned – more information on our website

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• 16 October 2020, Finews, ESG oder die Nachteile der Nachhaltigkeit
• 15 October 2020, SRF DOK, Der Schweizer Finanzplatz und die Klimakrise
• 27 September 2020, Blick, Schweizer Kleinstkredite helfen Millionen Armen
• 24 September 2020, Corriere del Ticino, Gli investitori puntano sulla finanza sostenibile/ Investors focus on sustainable finance
• 21 September 2020, RTS, Les investissements éthiques offrent souvent un meilleur rendement. Les plus grands fonds de gestion s'y sont tous mis
• 21 September 2020, The Market, Impact Investing – Modetrend oder nachhaltige Investition?
• 14 September 2020, The Market, ESG als Finanzmethode und Lösung realer Probleme
• 9 September 2020, Le Temps, Lombard Odier crée une chaire de finance durable à l’Université d’Oxford
• 1 September 2020, SRF Tagesschau, UBS will Vorsorgefonds nachhaltig ausrichten

Visit our website for more articles and regular updates

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• October 2020: In a report called “Developing Sustainable Finance Definitions and Taxonomies”, the OECD mapped out sustainable finance taxonomies and definitions in 5 jurisdictions and laid out preliminary considerations for good design of taxonomies.
• September 2020: For their new report ”Testing the Taxonomy”, the PRI collected 40 case studies from asset owners and investment managers that illustrate the methods, challenges and solutions drawn on to implement the EU Taxonomy in their investment processes.
• September 2020: The Bank for International Settlements published a new report putting forward that green bond projects do not necessarily translate into lower carbon emissions at the firm level. It explores the use of firm-level rating based on carbon intensity instead.
• September 2020: A whitepaper on “Financing Credible Transitions”, published by Climate Bonds Initiative (CBI) and Credit Suisse, presents a framework for defining credible transition pathways for companies to reduce global emissions and deliver the goals of the Paris Agreement.
• September 2020: In a joint report, WWF Switzerland 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.
• September 2020: The Institute of Financial Services Zug (IFZ) and the Asset Management Association Switzerland published the third edition of the Swiss Asset Management Study, which provides a comprehensive overview on asset management in Switzerland and includes a chapter on sustainable investments.
• September 2020: A recent study by the non-profit organisation InfluenceMap maps out the intensive lobbying on European sustainable finance policy by industry groups representing the finance and corporate (real economy) sectors.
• August 2020: The Center for Sustainable Finance and Private Wealth at the University of Zurich analysed what it would mean for private banks to ambitiously align themselves with international environmental goals, in a report commissioned by the Federal Office for the Environment (FOEN).

Read these and other reports in our Digital Library on Sustainable Finance

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