The industry association is introducing guidelines for asset managers to self-regulate their sustainable investments, as it preemptively attempts to steer off the authorities from imposing their rulebook on the industry.

The Swiss industry association (AMAS) has released its voluntary self-regulation sustainability framework aimed at asset managers and designers of collective investment products, effective from the fourth quarter 2023, it said in a statement Monday.

The report, which is part of AMAS’ objective to strengthen the role of Swiss asset managers in the field of sustainable finance, highlights that asset managers need to go beyond simply including or excluding companies in their products, according to environmental, social and governance (ESG) criteria.

Anti-Greenwashing 

It also reiterates the association's anti-greenwashing stance, first presented earlier this year, stating that greenwashing is incompatible with achieving the goal of a leading international Swiss hub for sustainable asset management.

The report addresses the following:

  • Asset management firms must be sufficiently familiar with sustainable issues at the level of their management and supervisory bodies and at the operating level, and ensure that infrastructure and resources are in place for meeting the investment strategy’s sustainability requirements.
  • It lays down an all-encompassing obligation to document sustainability policies and approaches, as well as the metrics, data points and analysis tools used in the investment strategy and process. The principles of actively practiced stewardship must also be explained.
  • Exclusions or incorporation of ESG criteria are no longer sufficient to deem a financial product as being «sustainable.» Firms are required to report to investors in a way that makes sustainability goals transparent, using comparable indicators.

Crucial Contribution

The federal government is expected to make another statement on combating greenwashing in fall.

«With this self-regulation framework, the Swiss asset management industry is making a crucial contribution to sustainability, in accordance with the guidelines of the Swiss Federal Council’s financial market strategy and the common goal of positioning Switzerland as a leading hub for sustainable finance, » AMAS CEO Adrian Schatzmann, said.