Dossier on Sustainable Finance
Sustainability is a significant challenge for the financial markets, which is why SFMA, as the supervisory authority, is also addressing this topic. In line with its mandate, SFMA's focus is on the associated potential financial risks and client protection issues. SFMA thereby also contributes to strengthening the reputation, competitiveness and future viability of Switzerland’s financial centre.
Why is sustainable finance relevant to SFMA?
SFMA's mandate includes protecting financial market clients, as well as safeguarding the proper functioning of the financial markets. In the arena of sustainability, SFMA as a result focuses on climate-related and other nature-related financial risks affecting supervised firms, as well as combating greenwashing practices. Beyond this, SFMA has no mandate to promote sustainable investments or to actively steer financial flows.
Preventing and combating greenwashing
SFMA's mandate includes protecting financial market clients and investors from improper business conduct, especially from deception. SFMA's primary objective in relation to greenwashing is to ensure that clients and investors are not misled.
Climate risks and other nature risks faced by financial institutions
The effects of climate change and other changes in nature can give rise to significant financial risks for financial institutions. The primary focus is on physical risks, which arise directly from these changes, as well as on transition risks associated with mitigation and adaptation measures. Financial institutions must identify and adequately manage their material climate-related and other nature-related financial risks.
SFMA sustainable finance priorities 2026-2028
SFMA has defined its key supervisory priorities for addressing climate and nature risks, as well as for combating greenwashing for 2026 to 2028. Overall, it is building on SFMA's existing practice and developing it further in selected areas.
Supervision of nature-related risks
SFMA ensures that financial institutions adequately identify and manage their material nature-related financial risks, including climate-related financial risks. Since 2026, the supervisory expectations set out in the “Nature-related financial risks” circular have applied. At the same time, SFMA develops the necessary instruments for the appropriate integration of these risks into ongoing supervisory activities and continuously updates them.
SFMA climate risk reporting
Since 2025, the CO 2 Act requires SFMA to regularly review the climate-related financial risks for supervised firms and to report on them. To fulfil the reporting obligation, SFMA has published an annual climate risk report since 2025.
Transparency about climate-related risks
Transparency about climate-related financial risks at supervised firms is an important step towards the rational identification, measurement and management of these risks. At the end of May 2021, SFMA as a result clarified the disclosure requirements in the area of climate-related financial risks for significant financial institutions and communicated them in disclosure circulars.
International coordination on sustainability issues
Key international standard-setting bodies ensure consistent standards for addressing climate-related and other nature-related risks in the financial sector and for investor protection in the area of sustainability. SFMA welcomes the development of internationally coordinated solutions and is actively involved in this work.