Swiss perspectives in 10 languages

Greenpeace slams ‘sham’ sustainable investment funds

People ride bicycles on a dike at Norderney island, Germany, in front of wind turbines, June 1, 2021.
People ride bicycles on a dike at Norderney island, Germany, in front of wind turbines, June 1, 2021. Copyright 2021 The Associated Press. All Rights Reserved.

Greenpeace Switzerland has called for better policing of the sustainable investment sector after finding that many funds in this category are failing to deliver on their promises.

A study of 51 “sustainable” funds marketed in Luxembourg and Switzerland left “much to be desired”, said a report issued by the NGOExternal link on Monday.

The examination found that most funds lacked any real “Environmental, Social and Corporate Governance” (ESG) impact. The few positive cases brought improvements to major environmental controversies or the cement and defence industries.

“Most of the so-called sustainable investments that are currently being offered are actually damaging the climate,” complains Greenpeace.

“Without clear guidelines on what constitutes sustainable investments, there is a great danger of greenwashing, misleading customers into thinking they are making sustainable investments when in fact their money does not end up having a positive impact on the environment and society.”

The sustainable finance industry is booming worldwide following the Paris climate agreement and the introduction of UN sustainable development goals.

The Swiss government and financial sector has voiced ambitions for Switzerland to become a leading sustainable finance centre in future.

In a report released last weekExternal link, the association Swiss Sustainable Finance stated that sustainable investments in Switzerland increased by nearly a third last year to reach CHF1.5 trillion ($1.6 trillion).

But Greenpeace fears that many are failing to follow goals set out by the United Nations or the Paris climate agreement and that financial institutions are simply allowed to make up their criteria as they go along.

The NGO is calling for lawmakers and regulators to step in to force transparency, impose minimum standards and to stop financial players from cheating investors.

“In Switzerland no measures have yet been defined to regulate sustainable investment funds or to prevent greenwashing,” the report states.

Popular Stories

Most Discussed

News

Swiss army seeks to buy German howitzers

More

Swiss army plans to buy German howitzers

This content was published on The Swiss army wants to purchase new German armoured howitzers to replace its existing artillery system which has been in operation for over 50 years.

Read more: Swiss army plans to buy German howitzers
US opinion polls show Vice President Kamala Harris and former President Donald Trump virtually even ahead of the November 5 election.

More

Poll suggests Donald Trump has many fans in Switzerland

This content was published on Around a quarter of Swiss citizens would vote for Donald Trump if they had the chance, according to a recent poll. This percentage is higher than in many other European countries.

Read more: Poll suggests Donald Trump has many fans in Switzerland

In compliance with the JTI standards

More: SWI swissinfo.ch certified by the Journalism Trust Initiative

You can find an overview of ongoing debates with our journalists here . Please join us!

If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.

SWI swissinfo.ch - a branch of Swiss Broadcasting Corporation SRG SSR

SWI swissinfo.ch - a branch of Swiss Broadcasting Corporation SRG SSR