Switzerland promotes transparency on climate-related financial risks
On 12 January 2021, Switzerland officially became a supporter of the Task Force on Climate-related Financial Disclosures (TCFD). This move is in line with the country's policy on sustainable finance.
At its meeting on 11 December 2020, the Swiss Government (Federal Council) presented concrete proposals on how to strengthen Switzerland's role as a global leader in sustainable financial services. In this context, the Federal Council called on Swiss companies from all sectors of the economy to implement these recommendations on a voluntary basis from now on. It also decided that a bill should be drafted to make the recommendations binding. The work will be carried out this year, with the private sector and associations being consulted.
The international TCFD was established at the end of 2015 by the Financial Stability Board, of which Switzerland is a member, to develop recommendations on the financial transparency of companies with regard to climate change. Its recommendations provide a common international framework that enables companies and financial sector players to properly assess and quantify their exposure to climate risk, and in turn to implement the necessary strategies in their activities. More broadly, the aim is to make markets more efficient and economies better equipped to deal with climate change.
Michael R. Bloomberg, Chair of the TCFD, says: “Switzerland’s support and its decision to recommend climate disclosure makes it the latest in a growing number of countries to embrace the TCFD framework, allowing us to build a stronger, more resilient, & more sustainable global economy.”
To date, the TCFD has received the support of some 1,700 signatory organisations worldwide, from both the public sector, including governments, and the private sector. Major Swiss companies are already adopting its recommendations.