The Swiss financial centre should be an international leader in terms of credible climate transparency. With this in mind, the Swiss government launched the Swiss Climate Scores during its meeting on 29 June 2022.
Climate change is a threat to nature and society. Financial decisions can help to achieve climate goals. Switzerland is the first country to compile a set of internationally recognised criteria that private investors can use to assess just how climate-friendly investment products really are. The six criteria:
Greenhouse gas emissions
Exposure to fossil fuels
Global warming potential
Net zero management strategy
Verified commitments to net zero
Credible climate dialogue
The Swiss Climate Scores are based on the latest international information and create transparency regarding the climate-friendly orientation of investment products.
Best practice on climate transparency
The Swiss Climate Scores contain indicators that not only reflect the current situation of global companies in the financial product or portfolio (actual situation), but also show where these companies are currently positioned in relation to global climate goals (net zero target by 2050). Net zero means that global emissions of greenhouse gases may not exceed the amount that can be absorbed by natural and technical sinks.
The use of the Swiss Climate Scores is voluntary. But: Financial service providers that use the Swiss Climate Scores for their products have to use data and evidence to back up their statements on climate compatibility according to these criteria. The Swiss government recommends that financial service providers use the Swiss Climate Scores for their products, where appropriate.
"What we are doing here is unique worldwide. And of course we are now hoping for positive momentum, for as many financial institutions as possible to join in," said State Secretary Daniela Stoffel, head of the Swiss State Secretariat for International Finance (SIF), which is in charge. SIF relied on input from banks, non-governmental organisations and universities in the preliminary work for the Swiss Climate Scores.