Sustainable Finance anchored in the Swiss financial sector

The Federal Council is analyzing possible measures in the area of sustainable finance, including the fields of transparency, reporting and risk pricing. The financial industry supports the principle of the Confederation that it only wants to have a subsidiary effect here. The appropriateness, effectiveness and, where appropriate, international compatibility must be taken into account.

In June 2020, the Federal Council published a report and guidelines on sustainability in the financial sector. The three industry associations of banks (SBA), asset managers (SFAMA) and private insurers (SIA) as well as Swiss Sustainable Finance (SSF) welcome the Federal Council's goal of positioning Switzerland as a leading location for sustainable financial services. The internal federal working group under the leadership of the State Secretariat for International Financial Matters (SIF) has for the first time drawn up a comprehensive framework for this purpose.

The focus is placed on suitable framework conditions that strengthen the competitiveness of the financial center and at the same time promote the industry's own initiative for greater sustainability. In this way, the Federal Council supports the various ongoing initiatives of the industry. At the same time, it announces that it will deepen the analysis of open points, e.g. with regard to transparency, reporting and the pricing of risks. From the industry's point of view, it is important to use this work to clarify feasibility and effectiveness and to ensure that corresponding measures are internationally coordinated. 

Industry commits to sustainable financial center

A key lever for success is the cooperation of all stakeholders, or rather the common focus on the same goal. "Sustainability is the only option for the future. Achieving this is only possible if we work together: the Federal Council provides good framework conditions and we, as an industry, ensure that we achieve the ambitious goals together with the business community," says Jörg Gasser, CEO of the SBA. With its brochure on Sustainable Finance in Switzerland and a new guideline for incorporating sustainability criteria into the advisory process for private clients, the SBA and its members have for the first time developed recommendations for action to promote sustainable financial flows (Sustainable Finance) and published them at the beginning of June. "Finance is always a reflection of the real economy. That's why it's important that we create a common, systemic understanding of the causes and opportunities of finance and the real economy," Gasser emphasizes.

In parallel, SFAMA - together with SSF - has published core messages and recommendations for its members. These are intended to actively support asset managers in incorporating sustainability criteria into the investment process. Markus Fuchs, Managing Director of SFAMA, emphasizes: "The Swiss asset management industry is clearly committed to a sustainable financial industry. Asset management and sustainability belong together, especially considering the geopolitical situation and the socio-political challenges ahead, such as the financing of pension systems as well as infrastructure."

Sabine Döbeli, CEO of Swiss Sustainable Finance, comments: "We very much welcome the fact that the financial associations are taking important steps towards sustainable finance. However, we have not yet reached our goal. SSF will continue to act as a bridge builder and accelerator to ensure that we reach the ambitious goal together."

In addition to framework conditions and standards, there is also a need for transparent reporting: "With the sustainability reporting published last week, the SIA for the first time provides a representative overview of the measures taken for the Swiss insurance industry," says SIA Director Thomas Helbling. The report shows that private insurers apply sustainability criteria to 86 percent of their investments. Sustainability has always been a core concern for the insurance industry. That is why it is one of the industry association's strategic thrusts.

This includes providing transparent information about developments. Accordingly, the sustainability reporting is published annually. Thomas Helbling emphasizes: "The insurers are prepared to make their contribution to a sustainable financial center and welcome the fact that the state plays a subsidiary role.

About the Swiss Bankers Association (SBA)

As the umbrella organization and voice of the banks, the Swiss Bankers Association promotes optimal framework conditions for the Swiss financial center at home and abroad. The SBA represents the interests of the banking industry vis-à-vis representatives from business, politics, government and supervisory authorities. It stands up for open markets, entrepreneurial freedom of action and fair competitive conditions. As a competence center, it conveys knowledge relevant to banking and is committed to future issues. Founded in Basel in 1912, the SBA today counts nearly 300 institutions and around 12,000 individuals as members.

About the Swiss Funds & Asset Management Association (SFAMA)

Founded in 1992 and headquartered in Basel, the Swiss Funds & Asset Management Association SFAMA (SFAMA) is the representative industry organization of the Swiss fund and asset management industry. Its membership includes all major Swiss fund management companies, numerous asset managers and representatives of foreign collective investment schemes. It also includes service companies active in asset management. SFAMA is an active member of the European Fund and Asset Management Association (EFAMA) in Brussels and the globally active International Investment Funds Association (IIFA) in Toronto.

About the Swiss Insurance Association (SIA)

The SIA represents the interests of the private insurance industry at national and international level. Around 75 insurers and reinsurers belong to the association. They employ 47,700 people in Switzerland and another 100,000 abroad. The SIA member companies account for over 85 percent of the premiums generated in the Swiss market. As a major force in the Swiss economy, the insurance industry assumes economic responsibility at the business, social and political levels wherever key success factors of its locations are at stake.

About Swiss Sustainable Finance (SSF)

SSF strengthens Switzerland's positioning as a global market for sustainable finance by providing information, training and promoting growth. Founded in 2014, the organization has representative offices in Zurich, Geneva and Lugano. SSF currently brings together around 150 members and network partners, including financial service providers, investors, universities and colleges, government offices and other organizations.

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