The Swiss Federal Council launched the Swiss Climate Scores to provide institutional and private investors in Switzerland with comparable and meaningful information on the extent to which their financial investments are compatible with international climate goals.
The Swiss Climate Scores contain indicators that not only reflect the current situation of global companies in the financial product or portfolio (actual situation), but also show where these companies are positioned in relation to the global climate goals (net zero target by 2050). The work on the Taskforce for Climate-related Financial Disclosures (TCFD) and net-zero alliances creates comparable climate-related disclosures at the corporate level, which are an important basis for the Swiss Climate Scores. The Climate Scores create forward-looking transparency about the future achievement of climate goals. They avoid merely distinguishing between "sustainable" and "non-sustainable," but rather capture the extent to which companies are positioned for the necessary transition to net zero. Furthermore, the scores are specifically oriented toward financial investments and portfolios. The Federal Council recommends that the Swiss financial market players apply the Swiss Climate Scores to financial investments and client portfolios where appropriate.
The voluntary use of the Swiss Climate Scores is intended to make investment decisions more efficient. Investors can benefit from economic opportunities in the transition to net zero and better contribute to achieving climate goals. To ensure that the Swiss Climate Scores continue to represent best practice in terms of climate transparency in the future, they are to be regularly reviewed and, if need be, adapted to the latest international findings, starting in 2023. The Federal Council has instructed the Federal Department of Finance (FDF), in close cooperation with the Federal Department of the Environment, Transport, Energy and Communications (DETEC), to investigate the voluntary uptake of the Swiss Climate Scores by Swiss financial market players by the end of 2023.
Keywords: Europe, Switzerland, Banking, ESG, Climate Change Risk, Swiss Climate Scores, Q&A, Securities, Swiss Federal Council
Dr. Denton provides industry leadership in the quantification of sustainability issues, climate risk, trade credit and emerging lending risks. His deep foundations in market and credit risk provide critical perspectives on how climate/sustainability risks can be measured, communicated and used to drive commercial opportunities, policy, strategy, and compliance. He supports corporate clients and financial institutions in leveraging Moody’s tools and capabilities to improve decision-making and compliance capabilities, with particular focus on the energy, agriculture and physical commodities industries.
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