Swiss number 2 drivers#

The assessment is also expected to be deployed in France together with Finance for Tomorrow and as part of the Finance ClimAct project, an EU-funded initiative to align the French and EU sustainable finance action plans.Here is a look at the official jersey numbers for SwitzerlandвЂ™s 26 member squad for Euro 2020. From 2020-21, the test will be run in Austria, Norway, Sweden, Luxembourg, and Liechtenstein. The assessment also links to other major initiatives, including integrating the Inevitable Policy Response in the stress test scenariosДЇinally, the 2020 assessment is set to be implemented in a number of additional countries, as part of a broad effort to better understand the financial sectorвЂ™s contribution to the Paris climate goals.Second, 2DII and the Swiss government are working together to develop a Climate Action Guide, which financial institutions can use to devise and implement climate strategies and actions, as well as to track and measure their real-world impact.

Swiss number 2 drivers#

This represents a crucial step towards better understanding the climate impact of financial markets and key drivers of change over time. Recognizing the need to move beyond portfolio alignment towards assessing the climate impact of various portfolio strategies, the 2020 study combines, for the first time, a quantitative analysis of portfolio alignment with a qualitative survey on existing climate strategies.To help bridge the gap, 2DII, the Swiss government and other partners have taken a number of steps: Given the shortfall, it is clear that further action is needed. The finding highlights the benefit of not just looking at the portfolio level changes, but also changes in the real world. While Swiss financial institutions reduced their exposure to coal power in their listed equity portfolios by about 15-20%, the companies in the portfolio increased their installed capacity by 50%. The delta between reduction in portfolio emissions and real-world impact may be widening.In terms of climate actions, portfolio analysis of financial institutions with coal exclusion policies showed that more than 50% of their listed equity and more than 70% of their corporate bond portfolios still contained coal assets.Some firms held in the analyzed portfolios even planned further expansion of coal mining and oil production In spite of increased deployment of new вЂњgreenвЂќ technologies, the retirement of high-carbon technologies like coal power capacity is still far too slow to achieve the 1.5В° or even 2вЊ goal.Strong progress in mainstreaming this topic: 69% of participants had defined a climate target or aspiration for at least one asset class 65% were part of at last one sustainability initiative and around 20% of portfolios submitted were self-labeled as ESG.Д«ut despite improvements from 2017, the 2020 assessment shows that overall, Swiss financial markets are still not aligned with the Paris Agreement goals:.On average, those financial institutions performed better in the PACTA 2020 test than their peers. Financial institutions that participated in the 2017 pilot led the way, with more than 50% saying they had taken action based on the results of that assessment. A strong increase in climate actions, such as shareholder engagement, with over 40% of recorded actions taking place in the past two years.investors holding more companies in their portfolios that have increased electric vehicle production and renewable power capacity. Measurable improvement in terms of climate compatibility across a number of key sectors, e.g.For the first time, 2DII and its partners were able to measure progress across a vast swathe of the financial sector over the past three years, shedding light on the distinction between portfolio reallocation and real-world emissions reductions.Д¬ritically, the assessment showed that the Swiss financial sectorвЂ™s consideration of climate issues has increased demonstrably since the 2017 study, resulting in: The study assessed the alignment of the Swiss financial sector with climate benchmarks, using 2DIIвЂ™s Paris Agreement Capital Transition Assessment (PACTA) methodology. A new module for Swiss real estate and mortgage portfolios also enabled the assessment of three-quarters of all Swiss residential properties. The report, вЂњ Bridging the Gap,вЂќ is based on a climate compatibility assessment of 179 Swiss financial institutions representing around 80% of the market, more than double the number of institutions that participated in the 2017 pilot study. Switzerland is the first of several major European financial centers вЂ“ including France, Austria, Sweden, and Norway вЂ“ set to measure progress on finance-related climate goals in the run-up to COP26. This broad, comparable analysis covering all major Swiss financial market participants shows progress on alignment with climate goals, but major gaps remain.