Yesterday, during its last plenary session of this legislative period, the European Parliament approved the strongly debated Corporate Sustainability Due Diligence Directive, also known as the CSDDD. It establishes a corporate due diligence standard on environmental concerns, climate change and human rights for businesses operating in the EU. Non-EU companies that conduct a defined level of business in the EU, will also be liable. To reach an agreement, the final CSDDD was significantly watered-down from the original proposal. Much as it is to be welcomed that respect for human rights and the environment in global value chains is put on the corporate agenda, the Directive adds considerable complexity and reporting burdens for companies.

With this vote, the outgoing parliament added another key element to the many regulations around sustainability it put in place over the past 5 years. The election of the new EU Parliament will take place from 6 to 9 June 2024, followed by the vote on the new President of the EU Commission. Before and after the EU elections we expect intense discussions around the further evolvement of the Green Deal. It remains to be seen if these elections will change the direction of the EU’s climate and energy policy and how they will influence the sustainable finance strategy, including the initiated reviews of current the sustainable finance regulation. Yet, as the new Commission needs to first take up its work, no news on the details of next steps are to be expected before September. The objective to bring about the necessary changes for a transition to a sustainable economy remains key. 

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Let us know your opinion with our Question of the month!

The transition to a sustainable economy will not happen through the action of one actor in isolation. But often a key actor is needed to provoke change in others. In your opinion, which actor has the biggest responsibility in making sure, we achieve the Swiss goal of net-zero emissions by 2050?

Swiss News

• The SDG Impact Finance Initiative (SIFI) announced the winners of its first call for proposals under the Product Window. The winning initiatives are supported with a total of CHF 5 million in the form of first-loss equity after successful completion of all legal documentation.
• The second call for proposals under the SIFI Product Window was announced on 25 April. SIFI looks to invest up to CHF 5 million of first-loss equity in up to three impact funds. The second call will focus on Building Resilient Societies and Developing Human Capital, targeting SDGs 3, 4, 9, and 12. The submission deadline for Expressions of Interest is June 5th, 2024 at 12:00 (noon), local time in Bern (CET).
• The State Secretariat for Economic Affairs (SECO) has published a pilot project of the CSR Risk Check, a tool aimed at Swiss companies wanting to assess their social, environmental and governance risks in their value chain.

European News

• On 24 April 2024, the EU Parliament approved the Corporate Sustainability Due Diligence Directive (CSDDD). The final adoption is expected to take place by the end of May 2024.

International News

• The Sustainability Standards Board of Japan (SSBJ) has published draft sustainability disclosure standards, based on the International Sustainability Standards Board (ISSB), which will likely become mandatory for companies listed on the prime market of the Tokyo Stock Exchange under Japanese securities law and regulations. These disclosure standards are expected to be finalised in 2025.
• The further incorporation of nature-related issues into the global reporting baseline precedent has been set by the International Sustainability Standards Board (ISSB), in their decision to commence projects to research disclosure about risks and opportunities associated with biodiversity, ecosystems and ecosystem services and human capital. The basis for this exploration will be informed by the Taskforce on Nature-related Financial Disclosure (TNFD) Framework and supporting guidance.

Market News

• The TNFD and the GRI have announced plans for further developing capability building support, including a mapping document of TNFD disclosure recommendations, metrics, the GRI Standards, illustrative joint case studies as well as guidelines on the links between nature related dependencies, impacts, risks and opportunities.
• After a turbulent month, Science Based Targets initiative (SBTi) has clarified that it will not be making any changes to its current standards.

• The Centre for Sustainable Finance and Private Wealth at the University of Zurich is running a new course looking at achieving impact at family offices on 15-17 May 2024. This course aims to empower private wealth holders to understand how others – sometimes very differently positioned – wealth holders think and structure their processes in order to run an Impact Oriented Family Office.
• Also at the CSP, a sustainable investing masterclass has a new format and an updated programme. This 6-hour course synthesizes the latest thinking and ideas in sustainable investing into easy to understand frameworks that can be directly applied by all professionals.
• The SSF E-learning module on sustainable investments for pension fund board members has been accredited by Stiftung Eigenverantwortung and hence qualifies for the annual mandatory training pension fund board members have to complete.

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

• 15 May 2024, SSF: Swiss Sustainable Lending Market Study Launch Event, Zurich
• 15 May 2024, CFA ESG Conferences 2024 - Chasing Sustainability - Asset Owners' Paradox, Zurich
• 16 May 2024, SSF/Global Canopy Member Webinar: “Getting Started with Deforestation Risks in Investment Portfolios”, Online, SSF members E-mail us to register
• 30 May 2024, Sphere: Sustainable Solutions (Sustainable Solutions Week Zurich 2024 - Sphere), Zurich
• 31 May 2024, Sphere:  Sustainable Solutions (Sustainable Solutions Week Geneva 2024 - Sphere), Geneva
• 6 June 2024, SSF: Swiss Sustainable Investment Market Study Launch Webinar
• 20 June 2024, SSF Annual Conference 2024 and 10 Year Anniversary: The Next 10 Years, Bern

Further events are listed on the SSF website.

• 15 April 2024, Les malentendus de la finance durable, Le Temps
• 10 April 2024, La finance durable redistribue les cartes de l’employabilité au sein des banques, L’Agefi
• 9 April 2024, Recrutement bancaire: les nouvelles compétences recherchées à l’ère de la durabilité, L’Agefi
• 3 April 2024, Finanzwirtschaft als Teil der Lösung, Fokus
• April 2024, Kompakt: Finanzplatz Schweiz: Wandelndes Umfeld für nachhaltige Anlagen, Absolut Impact (authored by Sabine Döbeli, SSF CEO)
• 22 March 2024, Un prezzo sulle emissioni per la neutralità climatica, Corriere del Ticino
• 21 March 2024, Sergio Ermotti: «Le banche non possono essere la polizia climatica», Corriere del Ticino
• 21 March 2024, UBS Boss Ermotti Says Banks Are Not the ‘Climate Police’, Bloomberg
• 21 March 2024, Sergio Ermotti: Banken wollen nicht «Klimapolizei» spielen, Tippinpoint.ch
• 20 March 2024, Finance durable: les indispensables de la semaine, L’Agefi

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