Since last year we have seen an increasingly large trickle of companies leaving various net-zero initiatives. Departing companies have given different reasons for their decision, be it the wish to focus on fewer initiatives or litigation risks linked to the net-zero promises.

Many initiatives under the umbrella of GFANZ require companies to start setting quantifiable goals for reduction in the carbon emissions of their portfolios and reporting on them 1-2 years of taking the pledge. There are two main levers to achieve emission reductions within a financial portfolio: exclusion of sectors and companies with high emissions or engagement with these sectors and companies to encourage real-world emission reductions. Exclusion may seem highly effective and brings about fast reduction on paper, but stewardship is the approach that leads to true transition on company level, yet often only results in incremental change. This begs the question of whether the net-zero initiatives, with their encouragement for strict emissions reduction targets, are inadvertently favouring the exclusions approach over the harder way of contributing to change through stewardship. It remains to be seen how the GFANZ initiatives will develop, but it is key to keep in mind which approaches lead to real world change. SSF believes that transparent reporting about the set goals and achieved results is the best way forward.

Accordingly, this week, SSF, with the support of ECOFACT, has published a comprehensive guide putting the spotlight on TCFD reporting within Switzerland. The hope is that as discourse around net-zero intensifies, the essence of sustainable finance fostering the transition of the economy can be distilled into actionable change.

> Visit our website for more about these and other SSF activities

EU News

• At the end of July the EU Commission adopted the European Sustainability Reporting Standards (ESRS). These are applicable to all companies subject to the Corporate Sustainability Reporting Directive (CSRD). Though likely coming into force in January 2024, the EU Parliament and Council will also need to ratify them first.

International News

• ISSB issued the IFRS S1 on General Requirements for Disclosure of Sustainability-related Financial Information and the IFRS S2 on Climate-related Disclosures, which aim to provide a global baseline for investor-focused sustainability reporting that build on TCFD recommendations. The standards are effective from 1 January 2024, but it will be for individual jurisdictions to decide whether and when to adopt them.
• In the UK, a consultation on the Draft Code of Conduct for Environmental, Social and Governance (ESG) Ratings and Data Product Providers is currently open until 5 October 2023.
• France is the first country to propose a national requirement for disclosure of climate goals up for vote with shareholders for listed companies. This new law “Say on Climate”, which has just been adopted by the French national assembly, states that the climate strategies should be submitted for shareholder approval every three years and an annual vote should be held on the implementation of the strategy.
• In July 2023 an overarching framework for sustainable finance taxonomies in Latin America and the Caribbean was published by the UN Environment Programme Finance Initiative, after the region was requalified as “highly exposed, vulnerable and strongly impacted by climate change” in 2022.
• A proposed International Standard on Sustainability Assurance by IAASB (International Auditing and Assurance Standards Board) is currently open for comment until 1 December 2023.

Market News

• Allianz has quit the Net-Zero Insurance Alliance (NZIA) citing legal risks, while ensuring their commitment to transitioning the economy.
• Meanwhile in the USA, the Net Zero Insurance Alliance (NZIA) has recently been in discussions with 23 attorney generals around concerns over possible federal and state anti-trust laws. The NZIA was able to prove that their group and members have been and are fully compliant with applicable antitrust laws.

We are happy to welcome the following organisations as new SSF members: 

• BDO Financial Services (Service Provider)
• ecosecurities (Service Provider)
• Fintelligence (Education Provider)
• Liechtensteinische Landesbank AG (Bank)
• South Pole Carbon Asset Management (Service Provider)

The full list of our members and network partners, now standing at 247, can be found here.  

• The University of Zurich (UZH) has a new Sustainable Investing Masterclass for practitioners, which is a one day course running on 16 October 2023.
• The Further Education Course “Weiterbildungskurs” for Sustainable Financing Experts offered by ZHAW has been completely updated and will start on 3 November 2023.

• 4 September, Webinar, Fokus Pensionskasse (vps.epas event with SSF as know-how partner)
• 13 September, Zurich, SFI/SSF Conference: Financial Innovation – Accelerating the change (fully booked – waiting list available)
• 14 September, Geneva Forum for Sustainable Investment, GFSI
• 2-5 October, Geneva, Building Bridges 2023
• Save the date: 7 November, Lugano, SSF/USI-Event: Carbon Markets and their role for the transition
• Save the date: 20 June 2024, 10-year anniversary and Annual Conference

Further events are listed on the SSF website.

• 27 July 2023, La puissance relative de la finance durable, Le Temps
• 24 July 2023, Nachhaltigkeitsbezogene Investitionen in der Schweiz, Absolut Research
• 18 July 2023, Auf den Wildwuchs von ESG folgt das regulatorische Korsett, themarket.ch
• 5 July, Green Fintech Network Propels Switzerland’s Standing as a Leader in Green Digital Finance, The Fintech Time

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