Swiss Climate Scores
- Swiss Climate Scores (SCS): The "Swiss Climate Scores" developed by the Confederation in cooperation with the financial industry and NGOs improve the transparency of financial investments regarding climate compatibility. Six indicators were introduced for this purpose:
1. Greenhouse gas emissions
2. Exposure to fossil fuels
3. Global warming potential of portfolio companies
4. Verified commitments to net zero
5. Credible climate dialogue
6. Management to net zero
Template for calculation: AMAS and Swiss Sustainable Finance (SSF) have created a template that ensures a standardised calculation of the various SCS indicators and presents the results in a uniform manner. This Excel template is based on expert consensus and is available to the public.
Template for SCS-calculation
Presentation Swiss Climate Scores
- 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 Federal Council. AMAS was one of the first industry associations to join the Net-Zero Asset Managers Initiative (NZAMI) 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 Glasgow Financial Alliance for Net Zero (GFANZ), which was established as part of the UN Climate Change Conference COP26.
- TCFD Climate Reporting: The Task Force on Climate-Related Financial Disclosures (TCFD) 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 Financial Stability Board (FSB) 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.
- PACTA: Since 2017, the Confederation has been conducting comprehensive tests of the climate compatibility of financial portfolios at Swiss asset managers, banks, insurance companies and pension funds under the title PACTA (Paris Agreement Capital Transition Assessment). The PACTA climate tests thus serve to ensure the transparency of the climate compatibility of both the investments and the financial flows of the participating financial institutions. These voluntary tests are supported by AMAS and other leading Swiss financial associations. The PACTA climate tests are coordinated internationally. The countries that join this initiative support their financial institutions in testing investments for their climate compatibility in an internationally comparable way and in aligning them with the 1.5-degree target of the Intergovernmental Panel on Climate Change.
- Building Bridges: 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 Sustainable Development Goal Impact Finance Initiative (SIFI) 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.