Sustainable Finance

The volume of sustainably managed investments is experiencing a steady growth in Switzerland. Zurich offers a considerable range of sustainable investment options for investors with a long-term investment horizon.

Sustainable Investments with Know-how from Zurich

Financial services are termed sustainable if they systematically integrate environmental, social and governance criteria (known as ESG factors) in the business or investment decision-making process. In principle, consideration of sustainability topics in the investment process serves to achieve three goals:

  • Foster long-term economic and social sustainability
  • Improve the return/risk profile of investments
  • Reduce reputational risks

Zurich-based asset managers and providers of ESG research are collaborating closely to develop innovative investment products, reduce the risk in portfolio and enable access to new investment topics.

Steady Growth of Sustainable Investments

The significance of sustainability is on the rise in the financial sector, both nationally and internationally. The volume of sustainably managed investments has experienced steady growth in Switzerland in recent years, reaching a total of 1,160 billion Swiss francs at the end of 2019. Two thirds thereof (approximately 780 billion Swiss francs) stem from the Zurich financial centre.

International agreements, such as the Paris Climate Agreement, changing client needs and better availability of information are the main drivers of this development.

Switzerland’s financial institutions are world leaders in offering and distributing sustainable investment products. The Zurich region with its strong financial sector, combined with a generally high sensitivity towards sustainability topics in Switzerland, is in an excellent position to further expand this leading role. This potential needs to be harnessed in collaboration with other financial market players, as it paves the way for opportunities for an attractive and competitive financial centre in the long term.