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Financial products and funds labelled as ‘sustainable,’ green,’ or ‘ESG’ on Swiss financial markets will be required to align or contribute to specific sustainability goals, with providers required to disclose how they intend to achieve the goals, according to new proposed rules unveiled by the Swiss Federal Council.
The measures in sum: The package of measures is intended to improve trust and transparency in the market for sustainable investment products and minimize greenwashing. The proposed guidance is designed to help firms better understand the FCA’s expectations under the anti-greenwashing rule and other associated requirements.
Fittingly perhaps, the UN Environment Programme marked World Environment Day on Wednesday through a series of events directing attention to desertification, soil degradation, and efforts to build drought resilience. billion) in green sovereign debt. billion people negatively impacted by desertification.
Among these trends are sustainability disclosure requirements becoming more stringent and standardized globally, with companies facing increased scrutiny and potential penalties for greenwashing. Sustainable finance such as ESG-linked financial products and greenbonds are projected to expand rapidly.
Graham says at an ASFI event in December the Australia’s Treasurer Jim Chalmers announced a sweeping sustainable finance agenda. RIAA already runs a responsible investment label through its 16-year Responsible Investment Certification Programme, which she says has become the industry norm in Australia and New Zealand.
But recent events and trends are causing the financial centres of London, New York and Toronto to rethink support for climate finance. Energy security has become an overriding concern in the last two years as oil and gas prices have shot up, and sustainable finance has faced an increasingly hostile political environment in the United States.
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