On June 19, 2024, the Swiss Federal Council recognized new self-regulatory measures by the financial industry to tackle greenwashing. This aligns with the Council’s December 2022 stance on preventing misleading sustainability claims in financial products.
Previously, the Council considered government regulations but decided to allow the industry to self-regulate. The Federal Department of Finance (FDF) consulted stakeholders and reviewed proposals from industry associations.
The Swiss Bankers Association, Asset Management Association Switzerland, and Swiss Insurance Association have developed new self-regulatory provisions. These will be published soon and implemented by January 1, 2027.
The provisions focus on defining sustainable investment goals, outlining sustainability approaches, ensuring accountability, and requiring independent audits. However, some aspects remain unclear, including compliance with EU law and the reference framework for sustainability targets and enforcement.
Given this progress, and the ongoing revision of the EU’s Sustainable Finance Disclosure Regulation (SFDR), the Swiss government is delaying state regulations for now.
The Federal Council has instructed the FDF to reassess the need for further action by the end of 2027. This will consider the final EU SFDR amendments and ensure full implementation of the Council’s greenwashing prevention position.