Swiss Climate Scores
Switzerland and its financial centre are fully committed to the target of reducing greenhouse gas emissions to net zero by 2050, in line with the goals of the Paris Agreement on climate change. The federal government presented an important instrument for achieving this in June 2022: the Swiss Climate Scores. These are an easy-to-understand method of delivering transparency on the Paris alignment of financial investments. They support the Swiss financial centre’s efforts to cement its position as a leading international hub for sustainable finance.
Six indicators aid assessment of Paris alignment
The Swiss Bankers Association (SBA), the Asset Management Association Switzerland (AMAS) and Swiss Sustainable Finance (SSF) welcome the Swiss Climate Scores, which were developed under the auspices of the federal government together with sector experts and NGOs.
To provide meaningful, comparative information as a basis for assessing the Paris alignment of financial investments, the six new indicators are matched to existing, internationally established criteria and methods:
- Greenhouse Gas Emissions
- Exposure to Fossil Fuel Activities
- Global Warming Alignment
- Verified Commitments to Net-Zero
- Credible Climate Stewardship
- Management to Net-Zero
The indicators give financial institutions a common framework to guide them. In July 2022, AMAS, the SBA and SSF announced a pilot phase to collect initial experiences on the market. Use of the Scores is voluntary for financial institutions. Owing to a lack of data in certain areas and the need to develop guidance on using them, they are not currently applicable to all forms of investment.
With this in mind, AMAS and SSF have created a template that guarantees standardised calculation of the different indicators and uniformly displays results. This template, based on expert consensus, is available to the general public.
The financial industry hopes that it will help the Scores to gain widespread acceptance quickly. The pilot phase will also flag up any room for improvement in the Scores.
Position of SBA
Links & Documents
Swiss Climate Scores - best practice: transparency on the Paris alignment of investments
Swiss Confederation & Swiss Climate Scores
Switzerland leads the way with launch of Swiss Climate Scores for financial investments