Investments
Integrating ESG preferences and ESG risks and preventing greenwashing in investment advice and portfolio management
The advisory process plays a key role in helping customers to understand, influence and even control the impact of their investments from an ESG perspective. The SBA has drawn up binding guidelines on this for its members that came into force in 2023 and were updated in 2024:
The SBA advises its members to follow the recommendations put forward by the Asset Management Association Switzerland (AMAS) and Swiss Sustainable Finance (SSF):
International initiatives
The SBA supports the adoption of international initiatives and recommends that its members sign up to the following international initiatives if they are relevant to their business models:
Financing
The transition to a low-emission economy will require targeted investment by companies. The Swiss financial centre will play a key role as the main source of funding for this investment.
Mortgages
Buildings are currently responsible for almost a quarter of carbon dioxide emissions in Switzerland. An SBA discussion paper sets out the measures that banks can take to help move along the renovation of Switzerland’s housing stock and thereby improve overall energy efficiency.
A joint study by the Association of Swiss Cantonal Banks (ASCB) and Swiss Sustainable Finance (SSF) also provides a comprehensive and structured overview of ongoing initiatives to integrate sustainability on the financing side:
Finally, the SBA has published specific guidelines covering face-to-face and online advice to private individuals seeking finance for single-family and holiday homes. Their purpose is to motivate owners to address the issue of maintaining the value and optimising the energy efficiency of their properties with the support of the bank, and thus be made aware of the importance of energy-efficient renovation.
As with investments, the SBA also supports the adoption of international initiatives in relation to financing. It recommends that its members sign up to the following two international initiatives if they are relevant to their business models:
One way of measuring climate compatibility is a test according to the Paris Agreement Capital Transition Assessment (PACTA) method. The SBA recommends that its members take part in the regular climate compatibility tests conducted by the Federal Office for the Environment (FOEN).
Regulation on sustainable finance in the European Union (EU) began earlier than in Switzerland, but a lack of coordination between the various elements, including the Sustainable Finance Disclosure Regulation (SFDR) and the taxonomy, has created a lot of confusion. At the same time, the large number of regulations has resulted in so much bureaucracy that many are already calling for it to be scaled back. From a Swiss perspective, therefore, a phased approach to regulation appears to make good sense. This involves investigating which changes will help Switzerland to remain a leading hub for sustainable finance. Clarification is also needed as to whether internal measures within the industry, such as guidelines and self-regulation, or state regulation would be the better path. This provides greater flexibility with regard to the time horizon. The process must start with a full and impartial review.