The Climate and Innovation Act (ClA) and the revised CO2 Act came into force on 1 January 2025. Both acts set legislative guidelines for a climate-friendly financial market. The legal provisions are specified in the Climate Protection Ordinance (ClO), the Ordinance on Reporting on Climate Matters and the Ordinance to the CO2 Act.
Regulations in the Climate and Innovation Act and the related ordinance:
The Climate and Innovation Act (CIA) stipulates that financial flows should be made climate-friendly, i.e. that investments and financing are considered climate-friendly if they adhere to the target of net-zero greenhouse gas emissions by 2050 (article 1, lit. c). The law also requires the financial sector to make an effective contribution to achieving climate goals (article 9). This will initially be done on a voluntary basis and through recommendations from the Federal Council.
(in German, French or Italian)
The Climate Protection Ordinance (CIO) substantiates the Climate and Innovation Act (CIA). It stipulates that the Confederation must conduct regular reviews into the climate-friendliness of the Swiss financial market’s investments and the impact of financial institutions’ efforts (Article 30).
Ordinance on Climate Protection
(in German, French or Italian)
Obligation to report on climate matters:
Since 2024, the Ordinance on Reporting on Climate Matters has also required larger companies in the financial and real economies to publish a net zero transition plan.
Ordinance on Reporting on Climate Matters
(in German, French or Italian)
Regulations in the CO2 Act:
The CO2 Act stipulates that, from 2025, the supervisory authorities FINMA and the SNB will review and report on climate-related financial risks on a regular basis (Article 40d).
(in German, French or Italian)
FINMA requirements:
Since 2021, FINMA has required large banks and insurance companies to systematically disclose climate-related financial risks. From 2025, FINMA will set out its supervisory practice for managing nature-related financial risks in a circular.
Swiss Climate Scores:
The Federal Council launched Swiss Climate Scores in June 2022. Swiss financial market stakeholders are recommended to use this set of indicators for all investment products and client portfolios relating to equity and corporate bonds where appropriate. From 2025, financial institutions will also be required to state and justify whether or not investment products are aligned with the net zero climate target.
Swiss Climate Scores: Best practice transparency on the Paris alignment of investments
The six indicators show how climate-friendly the companies held in the portfolio operate today and what they plan to do in the future. A study commissioned by FOEN examined how the forward-looking indicator on «global warming potential» should be structured and compared different methodologies.
Portfolio Climate Alignment (PDF, 1 MB, 22.06.2022)Study commissioned by FOEN (in English)
Parliament has instructed the Federal Council to draw up a report outlining measures to ensure that Switzerland's financial flows are climate-friendly. The Federal Council approved this report at its meeting on 17 November 2021. Measures that explicitly address the climate-friendly aspect of investments, such as industry agreements between the financial sector and the federal government, have a particularly positive impact on the climate. Furthermore, more transparency about investments and whether they are detrimental or positive for the environment can have a positive impact on the climate indirectly, as it allows people to make better-informed investment decisions (see Media release of 17.11.2021 on the Postulate report in German). At the same meeting, the Federal Council decided to pursue transparency measures to prevent greenwashing and to seek to conclude industry agreements with financial market players (cf. Media release of 17.11.2021 on greenwashing).
Because many Swiss financial market actors also sell financial products in the European Union, they are also affected by EU regulations. The European Commission has extended its strategy on sustainable finance and in 2021 introduced a range of regulatory changes, such as the requirement to disclose sustainability risks and impacts for all financial products and to explicitly consider non-financial objectives in advice given to clients. Furthermore, it already has a classification system (taxonomy) for 'green' economic activities in the field of climate change.
Last modification 02.01.2025
