Sustainable investment in Switzerland is experiencing a decline, similar to trends observed in the United States.
Traditional investment funds are attracting more capital than sustainable funds for the first time in years. This raises questions about the future of green finance in Switzerland, a country that has heavily promoted environmentally and socially responsible investment options.
While green investment funds that adhere to ESG criteria continue to attract some capital, they are unable to keep up with traditional funds that have no restrictions on investments in sectors like fossil fuels.
Factors contributing to this shift include a decline in demand for funds associated with climate, environmental, or energy initiatives, confusion among investors due to the rapid expansion of sustainable investment products, and the disruption of energy supplies caused by the war in Ukraine.
Despite the decline in capital inflows, Swiss banks continue to offer a range of sustainable investment products.
Experts believe that the stagnation in sustainable investment flows is a natural consequence of the rapid growth experienced in previous years, leading to investor fatigue and skepticism. However, experts remain optimistic about the future of sustainable finance in Switzerland, as the country has positioned itself as a leader in this sector.
The challenge will be to restore investor confidence in sustainable investments and ensure that the products offered genuinely contribute to environmental and social goals.