The Federal Council, in its meeting on 8 December 2023, has decided to advance the voluntary Swiss Climate Scores initiated in 2022, aiming to bolster the credibility and global competitiveness of the Swiss financial sector in terms of climate transparency.

The Swiss Climate Scores, established to furnish both institutional and private investors with clear insights into the alignment of their financial investments with international climate objectives, will undergo updates effective from 1 January 2025. The refinements aim to simplify implementation for the industry and enhance comprehension for investors.

In the revised scores, starting from 2025, financial institutions will answer optional questions regarding climate-related investment goals, explicitly stating whether a financial product supports climate goals. Additionally, disclosure of exposure to renewable energies alongside fossil fuels is now required.

The Federal Council encourages Swiss financial entities to ensure transparent reporting on climate alignment for all financial investments and client portfolios. The adoption of Swiss Climate Scores is recommended where suitable. The Federal Department of Finance (FDF) unit SIF will assess voluntary uptake in 2024.

These scores provide indicators not just of current global company standings but also indicate their trajectory concerning global climate goals, specifically the net-zero target by 2050. Net zero signifies that greenhouse gas emissions must not surpass the capacity absorbable by natural and technical sinks.

Link to the news source