Switzerland’s Federal Council announced the launch of Swiss Climate Scores, based on a series of indicators aimed at providing transparency into the alignment of companies with global climate goals.
The council is requesting, on a voluntary basis, that banks, asset managers and insurance companies apply the scores to their client portfolios and investment products, enabling investors to better assess the climate alignment of their investments, identify climate transition opportunities, and meet their own sustainability goals.
In a statement announcing the launch of the scores, the Federal Council said:
“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 at the same time better contribute to achieving climate goals.”
Criteria assessed in the scores include greenhouse gas emissions, fossil fuel exposure, global warming potential, net zero strategy and commitments, and climate stewardship.
The new scores are meant to be compatible with existing climate measures, drawing heavily on existing initiatives, including the framework of the Glasgow Financial Alliance for NetZero (GFANZ) and the Taskforce for Climate-related Financial Disclosures (TCFD).
According to the council, the scores go beyond current systems, such as the EU Taxonomy, by not only providing a climate snapshot of company or portfolio’s current environmental status, but also including forward-looking information of where companies are positioned and their transition plans relative to the global climate goal to limit warming to 1.5° C.
The scores were developed with input from a working group consisting of Swiss federal bodies, financial sector participants including UBS, Swiss Re and Lombard Odier, as well as NGOs and academic institutions.