A new initiative in Switzerland is gaining momentum with the goal of making the country's financial center more environmentally friendly and sustainable.
The initiative is a response to the criticism faced by major banks, particularly UBS, for their significant investments in fossil fuels. UBS has been identified as one of the top ten global financiers of fossil fuels, having invested $210 billion in coal, oil, and gas projects since the Paris Climate Agreement.
The initiative aims to incorporate an "ecological and sustainable orientation" into the Swiss constitution, reflecting concerns about the environmental impact of financial institutions. The committee behind the initiative argues that Swiss banks and insurance companies are causing significant environmental harm through their international business relationships.
The proposed legislative framework would prohibit Swiss financial market participants from providing financing and insurance services that contribute to the development or expansion of fossil energy deposits. The initiative emphasizes the need for alignment with internationally agreed temperature targets and biodiversity goals.
To ensure compliance, the initiative suggests the establishment of a supervisory authority called "eco-finma" that would conduct random checks and investigations.
The initiative has gained support from various political figures and environmental organizations, highlighting the growing recognition of the importance of sustainable practices in the financial sector. The outcome of this initiative could have broader implications for sustainable finance globally.