ESG HUB > Services > ESG Regulations > Swiss Climate Scores

Swiss Climate Scores

The Swiss Financial Centre wants to position itself as an international leader in terms of credible climate transparency. The Federal Council has thus launched the Swiss Climate Scores during its meeting on 29 June 2022.

The Swiss Climate Scores provide institutional and private investors in Switzerland with comparable and meaningful information on the extent to which their financial investments are compatible with international climate goals. The Federal Council recommends that Swiss financial market players apply the Swiss Climate Scores to financial investments and client portfolios where appropriate.

What does it mean for your business?

The Swiss Climate Scores enable comparisons for financial investments using six indicators and are based on widely recognized standards. They are geared to the obligations under the Paris Agreement, with the following objectives:

  • Net-zero greenhouse gas emissions by 2050
  • Limiting the rise in global temperatures to 1.5°C

How can your organisation comply?

Swiss financial market players are recommended to use the scores as a framework and metric of alignment in relation to the climate impact of their financial investments and client portfolios.

By the end of 2023, the Federal Department of Finance (FDF) and the Federal Department of the Environment (DETEC) will have monitored and assessed the voluntary uptake of the initiative by Swiss financial market players.

It is up to the financial institutions to decide where to apply the Swiss Climate Scores. Typical coverage will include financial products that are offered by asset managers, banks and insurance companies to institutional and private clients.

If you are a financial institution engaging in and/or offering investment services:

  • Collect data on the carbon intensity and the footprint of your investees
  • Mark investees that earn more than 5% of their revenues from coal and other fossil fuels
  • Identify and mark investees that have publicly communicated a pledge to reach net-zero and have near-term targets be certified by the Science based targets initiative (SBTi)
  • Develop an investment strategy with a goal to reduce the greenhouse gas emissions of your underlying investments through concrete short (1-3 years) or mid-term (5 years) targets.
  • Verify your strategy by joining the publicly communicated net zero targets under one of the sector-specific alliances of the Glasgow Financial Alliance for Net-Zero (GFANZ) (Banks, Asset Managers, Asset Owners, Insurers, Financial Service Providers, Investment Advisors)
  • Engage with investees on third-party verified, science-based net-zero aligned transition plans until 2050. Companies in your portfolio should be subject to credible stewardship on climate transition, for example by initiatives such as Climate Action 100+
  • Estimate the level of global warming that would occur if the global economy acted with the same ambition as the companies in your portfolio intend to act

If you are a company operating in any other sector and you are interested in attracting  sustainable finance and investment:

  • Collect and disclose data on your organisation’s carbon intensity and the footprint
  • Reduce your fossil fuel revenues to less than 5% of your total revenues if you are exposed to the fossil fuel industry. Disclose information about your fossil fuel revenues, if you have some
  • Pledge to reach net-zero and have near-term targets that are certified by the Science based targets initiative (SBTi)
  • Join credible stewardship on climate transition, for example initiatives such as Climate Action 100+