2022 has seen major geopolitical changes, record-high energy cost with a resulting surge in inflation and rising poverty, a global food crisis and many new climate-extremes around the world. Against this backdrop the role of sustainable finance is being discussed evermore intensely. Greenwashing was probably the most-used term in media articles during 2022 – does this mean sustainable finance has lost the trust of clients and the broader public all together?

The regulators clearly see the need to make sure product providers don’t overstate the content or the effect of sustainable investments. Much as clearer communication is important, it is also vital to educate clients about the mechanisms and effects of different forms of sustainable investments, thereby contributing to realistic expectations. With our new video for retail clients we hope to contribute to this effort.

Speaking about expectations, it is key to understand the role of finance in the transition to a sustainable world. First and foremost, finance has to give clear signals to clients, companies and policy makers about the importance of accelerating the transition. Furthermore, finance has to reduce risks in line with its fiduciary duty towards clients. This includes that business models leading to stranded assets should no longer be financed. But finance alone cannot force change onto companies against existing market signals and regulatory frameworks. It is only with the combined efforts of regulators, companies of all sectors, consumers and the financial sector that we will manage to credibly embark on the journey to a sustainable future.

I wish you a nice festive season and a relaxing break.

> Read more about these and other SSF activities

Swiss News

• Regarding the new provisions of the Code of Obligations (CO) for sustainable corporate management, the Federal Council published a report on 2 December showing how Swiss law differs from the adopted and planned EU regulations and makes an initial assessment of the impact that corresponding EU decisions would have on the Swiss economy. The Government further decided to conduct an in-depth assessment of the impact of the future EU directive by the end of 2023 in the area of due diligence obligations and to prepare a consultation draft by July 2024 regarding sustainability reporting obligations.
• During its meeting on 23 November 2022, the Federal Council adopted the implementing ordinance on climate disclosures for large Swiss companies, and brought it into force as of 1 January 2024.
• The Swiss Federal Office for the Environment (FOEN) published the results of the 2022 PACTA climate tests. The results illustrate a growing number of positive examples but also reveal potential for further action.
• After elections for the Swiss Federal Council, responsibilities for the different departments were rearranged. With Karin Keller-Sutter, a representative of the Liberals is now responsible for the Finance Department while Albert Rösti, Swiss People’s Party, was attributed the department for Federal Department of Environment, Transport, Energy and Communications. Read the media release.

EU News

• As of 28 November, the Council of EU approved the Corporate Sustainability Reporting Directive (CSRD). It will enter into force in stages starting in 2025 for the financial year 2024.
• The European Securities and Markets Authority (ESMA) published an extensive set of new questions & answers covering the SFDR and its Regulatory Technical Standards (RTS).
• In a letter published on ESMA’s website on 14 November 2022, the ESA confirmed that it would need more time for its review of the SFDR principal adverse impact (PAI) indicators and financial product disclosures. The ESA notify the Commission that they will need an additional six months at least to produce proposed amendments to the SFDR RTS. The delay means that the ESA does not expect to be producing the proposed amendments before November 2023.

Market News

• Many large companies are downgrading Article 9 funds to Article 8 amid uncertainty over EU’s Sustainable Finance Disclosure Regulation (SFDR). Morningstar data from the end of Q3 2022 showed that 1080 funds in total were classified as Article 9, making up 4.3 percent of the EU fund market in numbers and 5.2 percent in assets. 
• Vanguard Group withdraws from Net Zero Asset Managers (NZAM) initiative arguing its need for independence. The firm commented that the exit of the GFANZ “will help provide the clarity our investors desire”.

We are happy to welcome the following organisation as new SSF members and network partners:  

• ACATIS Fair Value Investment AG (Asset Manager)
• CSS Group (Asset Owner) 
• SCBF-Swiss Capacity Building Facility (Network Partner)

The full list of our members and network partners, now standing at 228, can be found here.

• On 2 and 3 February 2023 the University of Zurich is offering a two day training for wealth managers seeking a deep dive into sustainable finance.

For more information on current educational programmes focusing on sustainability and finance, visit the SSF landing page on Evrlearn.

• 10 January 2023, Online, SSF/WWF Webinar: Science-based Targets initiative, for SSF members only
• Save the Date: 22 June 2023: SSF Annual Conference and Members’ Assembly, Bern

Save the dates for the following upcoming SSF and partner events

• 7 Dezember 2022, «Nachhaltig Anlegen» kurz und verständlich erläutert: Swiss Sustainable lanciert Erklärvideo für Anleger, The Onliner
• 2 Dezember, Grün wirkt auch in der Krise, NZZ Verlagsbeilage
• 26 November, Patrick Odier: «Il faut des incitations pour encourager la transition durable», Le Figaro
• 24 November, Portrait of Sabine Döbeli, CEO SSF, Tagesspiegel

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