The Swiss financial center's engagement with sustainable finance remains stable despite a challenging climate marked by regulatory headwinds, scrutiny over greenwashing, and a more subdued promotional approach from banks compared to three years ago. According to data published in June by Swiss Sustainable Finance (SSF), total sustainable investment volumes in Switzerland have not declined.
At the sixth annual conference organized by the Swiss Finance Institute (SFI) and SSF in Zurich, attendees focused on the impact of environmental risks on investment decisions. SFI Managing Director François Degeorge noted that investor expectations for green assets had been set too high, while SSF CEO Sabine Döbeli highlighted the real estate sector's substantial contribution to carbon emissions.
Representing the industrial sector, Renata Pollini, Head of Sustainable Construction and Nature at Holcim, outlined the company's efforts to reduce its carbon footprint, lower water consumption, and renature quarries. Pollini noted that the cement producer ties management financial incentives to the achievement of sustainability targets, driven by demands from investors, customers, and regulators.
In the bond markets, Federica Zena, an economist at the Bank of Italy and former SFI professor, examined real estate-linked issuances. While green bonds from real estate issuers remain popular, the share of sustainability-linked bonds—which tie financial incentives to meeting predefined corporate sustainability targets—has declined across the European market, a trend also observed in the Swiss capital market.
Discussions at the conference also reflected a shift in climate strategy, with increased emphasis on adaptation measures alongside long-term mitigation and net-zero targets. Furthermore, speakers addressed the rising prominence of biodiversity, noting that while natural ecosystems are increasingly viewed as essential infrastructure, reporting standards, data collection, and methodologies remain less developed than those for greenhouse gas emissions.
