Sovereign Green Bond Pioneer
The Swiss Confederation published its framework for issuing green Confederation bonds in the summer of 2022 and executed the first successful transaction in October. The framework spans six broad spending categories, with a notably emphasis on biodiversity in the form of subsidies for low carbon, organic and climate-friendly farming. Moreover, Switzerland has established robust environmental strategies and objectives for the work towards a low carbon, resource-efficient and sustainable economy. In November 2022, it decided on measures that focus on greater comparable transparency and the integrity of sustainability claims made in the financial market. They include mandating larger Swiss companies in all sectors to implement the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD).
“Sustainability will continue to gain importance in the financial sector. Green Confederation Bonds are intended to promote the competitiveness of the Swiss financial centre, strengthen the application of international standards in Switzerland and encourage the issuance of green bonds by private players. We are pleased that these efforts are finding resonance!”