National developments
- PACTA Climate Test Switzerland 2024: The FOEN has conducted the PACTA Climate Test 2024 for the fourth time . This shows how climate-friendly the portfolios of the participating Swiss financial institutions are. The results of the latest survey show that a majority of financial institutions have anchored the net-zero climate target in their corporate strategy. Of the 146 Swiss financial institutions that took part in the PACTA test, 26 were asset managers.
This means that the number of asset managers taking part has doubled compared to the PACTA test in 2022.
Of the 26 participants, 13 measured their equity and bond portfolios and a further 13 their property portfolios in terms of CO2 emissions. Of the 26 asset managers, around 45% have already committed to the net zero target by 2050. A further 20% want to have set the target by the end of 2024. 40% of asset manager portfolios are pursuing the Paris climate targets, while only 13.5% of banks are doing so, 13% of pension funds and 5% of insurers.
Only 13% of Swiss financial institutions already have a transition plan to align all their business activities or individual business areas with the net zero target by 2050 at the latest. According to the survey, over half of asset managers do not yet intend to implement a transition plan.
In the case of collective assets with a sustainability focus, 40% of the participating banks fulfill the AMAS self-regulation, while 30% of asset managers do. 20% of asset managers and 10% of banks state that they report partially in line with the self-regulation. In the PACTA test, asset managers operating as part of a bank were categorised as belonging to the banking sector.
The PACTA test also asked about the engagement and voting activities of financial institutions since these instruments are the most promising in terms of achieving climate targets. According to the test, over 40% of asset managers pursue targeted engagement activities at a portfolio level. The next PACTA Climate Test is planned for 2026.
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- Net-Zero Alliances: To achieve the goal of a climate-neutral economy, asset managers and financial institutions worldwide coordinate and commit in Net-Zero Alliances to reduce greenhouse gas emissions to net zero by 2050 at the latest. Joining a Net-Zero Alliance is also a specific recommendation of the . AMAS was one of the first industry associations to join the in December 2021 and has committed to promoting the initiative among its members. This initiative, as well as the Net-Zero Banking Alliance, fall under the umbrella organisation , which was established as part of the UN Climate Change Conference COP26.
- TCFD Climate Reporting: The makes specific recommendations to companies on the disclosure of information to help investors, lenders and insurers assess and compare risks related to climate change. The initiative for the TCFD came from the with the aim of providing markets with transparent information on climate-related risks and opportunities so that assets can be valued more accurately and capital allocated more efficiently. In Switzerland, the mandatory implementation of climate reporting in accordance with the TCFD recommendations for large companies is planned by 2023. The TCFD recommendations are divided into four core areas of corporate activity: corporate governance, strategy, risk management, and metrics and targets. Investors thus receive a framework with information on climate-related risks and opportunities of companies.
- Building Bridges: is an international and cross-sector initiative to develop Sustainable Finance and to accelerate the transition to a global economic model in line with the United Nations Social Development Goals. AMAS is a founding member of Building Bridges, which was launched in 2019 by Swiss authorities, other financial associations, NGOs and the United Nations and takes place as an annual event in Geneva.
- SDG Impact Finance Initiative (SIFI): The aims to mobilize up to one billion Swiss francs in private capital to be invested in developing countries. The investments should deliver measurable results towards the achievement of the United Nations Sustainable Development Goals (SDGs). The SIFI is the result of a partnership between the State Secretariat for Economic Affairs (SECO), the UBS Optimus Foundation, the Credit Suisse Foundation and the Swiss Agency for Development and Cooperation (SDC). According to estimates, there is a shortfall of more than 2.5 trillion dollars per year by 2030 to achieve the SDGs. To bridge this financing gap, private investment in developing countries must be increased.