Building Bridges 2026 has taken place under the banner of investable solutions to global challenges. Where does sustainable finance in Switzerland stand today?

Switzerland has made significant progress. Sustainable finance is no longer a niche topic because sustainability considerations are increasingly integrated into advisory, investment, financing and risk-management processes across the banking industry. We now have stronger transparency frameworks, industry standards and practical tools. The banking industry has also introduced binding self-regulation on sustainability preferences, greenwashing prevention and energy efficiency in mortgage advice, which was further strengthened last year.

The next phase is about demonstrating effectiveness. The foundations are in place. Now we need to demonstrate that they can help clients make informed decisions, strengthen risk management and support a credible transition.

Where do you see the most important role of banks in contributing to Switzerland’s climate goals?

Banks connect savings and investment capital with households, companies and projects that need financing. Their greatest contribution therefore lies in lending, investments, advice and risk management. For example, the Swiss building sector is responsible for around 22% of Switzerland's territorial greenhouse-gas emissions. Banks can contribute to reducing these emissions by financing energy-efficient renovations, heat pumps and other measures that reduce fossil fuel use in buildings. However, we must keep in mind: only the owners can decide on such measures. 

«The challenge is to translate investment needs into viable projects.»

Our study on financing a climate-neutral Switzerland published in 2021 showed that a large share of the required domestic investments could in principle be financed through existing banking and capital-market instruments. This is particularly encouraging because it suggests that financing itself is not the main obstacle. The challenge is to translate investment needs into viable projects.

At the same time, banks should support their clients, not replace policymakers. The transition will also require banks to finance companies that are not yet sustainable but have credible plans to transform their business models.

Other jurisdictions have gone further in regulating sustainable finance. How can Switzerland remain competitive and internationally connected?

First, it should be noted that while many jurisdictions are currently deregulating sustainable finance, Switzerland is currently not following this trend. Our country’s strength has never been to regulate first, but to develop high-quality solutions that are internationally aligned. As many Swiss banks operate globally, comparability across markets is essential. We support high-quality disclosure, credible standards and proportionate, principles-based regulation that leaves room for innovation and different business models. Switzerland should avoid unnecessary regulatory duplication while ensuring that its framework remains connected to major international markets.

The decision of the International Sustainability Standards Board (ISSB) to establish its seat in Geneva is therefore excellent news. More than 45 jurisdictions already use ISSB Standards. Geneva’s role within the ISSB’s global network will further strengthen its position as an international hub for sustainable finance, standard-setting and multilateral cooperation.

Sustainable finance is facing political pushback in some parts of the world. Does that change the direction of travel?

The debate has certainly become more politically contested in some countries, particularly in the United States. This may influence terminology, institutional commitments or the pace of individual initiatives. However, it overlooks developments in many other parts of the world and – more importantly – does not change the underlying economic and ecological realities. Physical climate risks, energy security concerns, resource constraints and changing technologies continue to affect companies, portfolios and infrastructure. The impacts are becoming increasingly visible across Europe, including Switzerland.

For Swiss and European institutions, the right response is to stay focused on material risks, client needs and commercially viable solutions rather than political slogans. Sustainable finance will be most resilient when it is embedded in day-to-day decision-making and delivers value through stronger businesses, more resilient assets and better-informed capital allocation.

As climate adaptation rises up the agenda at Building Bridges 2026, what is needed to make adaptation more investable, particularly beyond Switzerland, and what role can blended finance play in mobilising private capital?

One of the encouraging developments at Building Bridges this year was the growing focus on adaptation and resilience alongside mitigation, an increasingly important topic. Switzerland is warming faster than the global average, with impacts already visible through heatwaves, droughts, glacier loss and flooding. As a result, the financial sector must support the increasing need for climate-resilient infrastructure, nature-based solutions, water management and risk preparedness.

«What makes me optimistic is that the discussion is becoming more concrete and solution oriented.»

To make adaptation more investable, we need better data, clearer resilience metrics and a stronger pipeline of investable projects. In emerging and developing markets, but also in areas such as nature finance in Switzerland, blended finance structures can play an important role by improving risk-return profiles and mobilizing private capital. 

Looking ahead, what gives you confidence about the future of sustainable finance in Switzerland?

Switzerland has strong fundamentals: a globally connected financial center, deep expertise, innovative companies, world-class research and a tradition of cooperation between public and private actors. We have also learned an important lesson: lasting progress is not advanced by a single regulation, product or institution. Progress depends on a well-functioning ecosystem and on consistent implementation over time.

What makes me optimistic is that the discussion is becoming more concrete and solution oriented. The focus is increasingly on credible transitions, physical resilience, nature, data quality and investable projects. If Switzerland combines ambition with pragmatism, maintains international compatibility and continues to deliver, it can remain a leading centre for sustainable finance and help shape solutions that are relevant far beyond its borders.

August Benz, Ph.D. HSG, Head of International & Transformation, Deputy CEO of the Swiss Bankers Association (SBA).

Together with his team, he focuses on topics such as private banking, asset management, market access, digital finance and cyber security, and sustainable finance.