PwC and WWF call for action plan for sustainable financial center
According to PwC and WWF, declarations of intent are not enough to make Switzerland a green and resilient financial center. That is why both have presented a strategy with more than 40 concrete measures. They are to be implemented over the next ten years.
At the end of June 2020, the Federal Council defined the goal of positioning Switzerland as a leading location for sustainable financial services. This declaration of intent is not enough; effective measures and an effective timetable are lacking. Moreover, the focus on voluntary measures and self-regulation has had little impact so far. "What we need is a concrete action plan with an intelligent mix of voluntary measures, self-commitments and regulations" says Vellacott, presenting the strategy for this to decision-makers today together with Andreas Staubli, CEO of PwC Switzerland. "With this quality strategy, we are showing decision-makers from Swiss politics as well as the financial industry what is needed for the Swiss financial center to actually become a leading location for sustainability," says Andreas Staubli.
The "Quality Strategy" by PwC and WWF shows decision-makers in Swiss politics and the financial sector concrete options for action. It contains more than 40 measures that are to be implemented within the next ten years. As a first step, it is essential to align the strategies of Swiss financial institutions with the goals of the Paris Climate Agreement. In addition, a political framework and credible standards must ensure the necessary transparency and legal certainty. Furthermore, increased efforts in the real economy are needed "so that the transition to a green and resilient Swiss financial center can succeed."
With its long tradition of sustainable finance, an innovative market, lean framework conditions and excellent universities, there is "no better place than Switzerland to set this in motion," says Andreas Staubli. And Vellacott adds, "The potential in Switzerland is immense, and the bottom line is that the economy and society benefit from an intact environment. Now is the time for politicians, financial market players and all of us to act together."
Joint strategy paper
Currently, Swiss financial flows contribute to global warming of 4 to 6 degrees Celsius. "Oil production, fracking, pipeline projects: Swiss financial institutions continue to finance, invest in and underwrite far too many activities that harm the climate and nature," says Thomas Vellacott, CEO of WWF Switzerland. "By redirecting money toward sustainable activities, they have it in their power to shape an economy that preserves, rather than threatens, our livelihoods." By 2050 at the latest, all financial flows should contribute to net-zero greenhouse gas emissions and biodiversity restoration. To achieve this, however, all new financial flows must be aligned with this goal as early as 2030. That leaves just ten years.
The consulting firm PwC and the World Wildlife Fund (WWF) have drafted a joint strategy paper. According to a Media release show how Switzerland can position itself as a leading location for sustainable financial services. So far, there has been a lack of "effective measures and an effective timetable" for this goal defined by the Federal Council at the end of June. In addition, the focus on voluntarism and self-regulation has had little effect so far.
Switzerland has great potential
"There is no better place than Switzerland to get this going," Staubli said. With more than 6200 billion Swiss francs under management in Switzerland each year, the country bears a great responsibility. In addition, Switzerland has a long tradition of sustainable finance, an innovative market, lean frameworks and excellent universities. And Vellacott adds: "The potential in Switzerland is immense, and the bottom line is that the economy and society benefit from an intact environment. Now is the time for politicians, financial market players and all of us to act together."
Swiss financial flows are still currently contributing to global warming of 4 to 6 degrees Celsius. "Oil production, fracking, pipeline projects: Swiss financial institutions continue to finance, invest in and insure far too many activities that harm the climate and nature," reads the above-mentioned media release.
Download (in English):
WWF/PwC, "Leading the way to a green and resilient economy: a Swiss-quality approach to sustainable finance", September 2020
https://www.pwc.ch/en/insights/fs/wwf-report.html
