In the changing geopolitical landscape, sustainable finance faces increasing headwinds. However, as experts in this field, we witness ongoing progress despite these challenges and as ambassadors, we have a responsibility to keep pushing forward. While the new US administration may see setbacks in sustainability policies, Switzerland and Europe remain committed to international climate and sustainability goals.

What is the Swiss market telling us? Investors are not just following regulations; they see the long-term value. A recent HSLU study highlights that from mid-2023 to mid-2024, 87% of new funds from Swiss retail banks were directed into sustainable funds, with only 13% going to conventional funds. Based on these strong inflows, 56% of total fund volumes are now in sustainable investments, a clear signal of sustained interest from Swiss clients.

Nonetheless, we must not become complacent. The ongoing "Omnibus legislation" discussions to amend key regulations could either bring much-needed clarity or introduce regulatory uncertainty at a complex time, as highlighted by a coalition of key investors and associations in a public statement this week. Carefully aligning regulations can help shift focus from mere compliance to capitalizing on business opportunities. However, reducing ambitions sends the wrong signals to market actors. Businesses and financial markets need policy stability to implement sustainability regulations effectively and we must stay committed if we aim to achieve the transition fast enough.

Switzerland has chosen a more principle-based regulatory approach which leaves room to focus on material aspects. Independent of the outcome of the current revision of EU regulations, our collective mindset needs to evolve from compliance with regulation to strategic business decisions unleashing opportunities and driving tangible results. In a world where sustainability risks are turning into material physical risks, effective finance solutions are essential for transitioning to a low-carbon, resource-efficient economy. By viewing the current challenges as opportunities, we can transform necessary structural changes into valuable business prospects, maintaining momentum even amid political headwinds.

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Swiss News

• FINMA has published its guidance on governance and risk management when using AI. The guidance draws attention to the risks associated with the use of AI and describes FINMA’s observations from ongoing supervision.
• The new FINMA circular "Nature-related financial risks" clarifies supervisory expectations for banks and insurers regarding the management of climate- and other nature-related financial risks, aiming to strengthen their resilience and protect clients and the Swiss financial centre.
• As of January 2025 the adapted Swiss Pension Fund Association (ASIP) ESG Reporting Standard for Pension Funds is in force.

European News

• 211 financial sector actors, including 162 asset owners and asset managers with more than €6.6 trillion in assets under management, supported by Eurosif, Principles for Responsible Investment and the Institutional Investors Group on Climate Change (IIGCC), have published a call to the EU to preserve the ambition and integrity of the EU sustainable finance framework. Read the press release here.

International News

• The Glasgow Financial Alliance for Net Zero (GFANZ) has announced that it will restructure and shift its focus to addressing barriers in mobilizing capital.
• The Net-Zero Asset Managers Initiative (NZAM) is currently reviewing its role and activities in light of recent regulatory and market developments.

Market News

• The SDG Impact Finance Initiative has its fourth call for proposals under the innovation window, focusing on economic and social inequalities with a dedicated emphasis on tackling local currency challenges. Apply by 3^rd March.
• Sustainable Finance Geneva (SFG) launched the Nature Finance Hub on their website at the end of 2024. Access it to gain an overview of Nature Finance and key activities in Switzerland.
• By publishing and Engagement letter, the Asset Management Association Switzerland (AMAS) encourages Swiss companies to adopt strong corporate governance and international sustainability standards while contributing to a climate-neutral economy. To support these goals, AMAS highlights the importance of investor stewardship through active dialogue with companies and shareholder voting, as highlighted for instance in the Swiss Stewardship Code published along with SSF in 2023.
• Switzerland ranks 4^th in the Global Sustainable Competitiveness Index (GCSI), which measures country-level ESG performance and serves as an alternative to GDP to assess country-specific and issue-specific risks for operators and investors and to verify progress for government agencies.
• According to a new MSCI market study, the size of the global carbon credit market remains for now limited, at around USD 1.4 billion. MSCI’s projections suggest the market could be worth USD 7 to 35 billion by 2030 and USD 45 to 250 billion by 2050.

We are happy to welcome the following organisation as a new SSF member:

• Bank CIC (Switzerland) AG (Bank)
• ETH-NADEL – Global Cooperation and Sustainable Development (Network Partner)

The full list of our members and network partners, now standing at 257, can be found here. 

• Save the Date: 17 June 2025, SSF Annual Conference

We will be announcing more events soon. View our website for more.

• 27 January 2025, Entwicklung des Schweizer Impact-Markets, Absolut Research
• 26 January, 2025, Die UBS erwägt, die Klima-Allianz der Banken zu verlassen, SSF CEO Sabine Döbeli in SRF Echo der Zeit

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