The Swiss government is considering discussions to extend the scope of application of the country’s climate scores to government bonds as well as real estate, in addition to nature assets, said Christoph Baumann, deputy head strategy division and envoy for sustainable finance for the State Secretariat for International Finance (SIF).
“This is something that, together with the industry, academics and NGOs, we can discuss over time,” he added during a webinar to launch the Swiss Climate Scores Template 2.0 organised by the Asset Management Association Switzerland (AMAS).
Asset classes under the climate scores include for now mostly corporate bonds and equities, AMAS’s senior sustainability expert Aurélia Fäh added during the webinar.
Last December, the Swiss government approved a revised version of the Swiss Climate Scores introduced in 2022.
The revised version, that will apply from 1 January 2025 to institutional investors’ assets under management, aims to make the implementation of the scores easier and more transparent for the industry.
The Swiss Climate Scores include indicators reflecting the current situation of companies, showing at the same time where these companies are in relation to global climate goals (net zero targets by 2050), the government said.
The latest version of the scores aims to set up standards to ensure “the maximum comparability” across portfolios, Fäh said.
A new indicator refers to whether the portfolios contribute to the mitigation of climate change. The template on the scores also includes information on the exposure to fossil fuels and renewable energies.
“It is important to notice that, for the exposure to fossil fuel activities and coal, we refer to the current value of the investment, [while] for renewable energy the awaited average revenues [matter],” Fäh added.
AMAS has worked with Swiss Sustainable Finance (SSF), and experts at Lombard Odier Investment Managers, Pictet, Vontobel, and Swiscanto, among others, on the climate scores, conducting regular exchanges with the SIF.
Swisscanto applies the scores to any fund with substantial corporate investments, even if climate measures are not implemented in a portfolio, deputy head sustainability at Zürcher Kantonalbank Ruben Feldman said during the webinar.
Lombard Odier also focuses on the global warming alignment of funds, using an implied temperature rise metric.
“We have advocated for the inclusion of this [global warming alignment section], and forward looking assessment sections, during the discussions with SIF, as the scores were being developed,” added Barthélémy Simon, sustainability data analyst at Lombard Odier.
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