Climate change has started to gain a strong foothold on investors' agendas. As the global economy continues its transition towards a low-carbon future, investments in fossil fuels may also harbor risks for the Swiss financial centre.
A recent study commissioned by the Swiss Federal Office for the Environment (FOEN) and carried out by South Pole Group and CSSP is the first to assesses the risk of a carbon bubble in Switzerland. It provides a groundbreaking overview of the financial risks for the Swiss equity fund market and pension funds.
The study examines the 100 largest Swiss equity funds, equity funds of systemically important banks and the equity portfolio of selected pension funds for their GHG intensity. The detailed analysis covers approximately 280 billion Swiss francs (CHF) of investments – this corresponds to 80% of the entire equity fund market in Switzerland. The findings indicate that at present, the Swiss equity fund market is responsible for 56.3 million tonnes of CO2 equivalent which corresponds roughly to the carbon emissions of the entire country of Switzerland in 2013.