Indicators

The combined set of indicators above, their display, and the below minimum criteria for these indicators are considered by the Swiss government as current best practice to establish transparency on the alignment with global climate goals. The Federal Council recommends to all financial institutions such transparency on all investment products and investment management mandates, where applicable.



Current state

Greenhouse Gas Emissions

Encompasses all sources of greenhouse gas emissions from invested companies (scope 1-3), including relevant emissions of their suppliers and products.

Evaluation

swiss-climate-scores-bewertung-treibhausgasemissionen

Benchmark: [relevant benchmark name]

Portfolio assets covered by assessment: X%

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Medium
estimation uncertainty

Exposure to Fossil Fuel Activities

There is scientific consensus of the need to phase-out coal and stop financing new fossil fuel projects. Below figures show the share of investments into companies that earn more than 5% of their revenues from such business activities.

Evaluation

Share of investments into companies with activities in:

coal: X%

other fossil fuels: X%

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Low estimation uncertainty


Transition to net-zero

Verified Commitments to Net-Zero

Companies are increasingly commiting voluntarily to transitioning to net-zero and setting interim targets. The effectiveness of such commitments depends on whether interim targets are credible, science-based, and transparent.

Evaluation

Share of companies in portfolio with verified commitments to net-zero and credible interim targets: X%

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Low estimation uncertainty

Management to Net-Zero

Financial institutions can contribute to the transition to net-zero, by aligning their investment strategy with a consistent 1.5°C decarbonisation pathway.

Evaluation

Does the investment strategy include a goal to reduce the greenhouse gas emissions of its underlying investments through concrete short (1-3 years) or mid-term (5 years) targets? NO/YES

[if YES:] Average annual reduction path: X% (incl./excl. relevant Scope 3)

Is the portfolio part of a third-party verified commitment to net-zero by the financial institution, including credible interim targets? NO/YES

Credible Climate Stewardship

Financial institutions can contribute to the transition to net-zero, by engaging with invested companies on third-party verified, science-based net-zero aligned transition plans until 2050.

Evaluation

Are companies in the portfolio subject to credible stewardship on climate transition? NO/YES

[if YES:] Share of companies currently under active climate engagement: X%

[if YES:] Share of climate votes supported: X%

[If YES:] Link climate stewardship strategy and report

Is the financial institution a member of a climate engagement initiative? NO/YES [if YES:], Name

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Medium estimation uncertainty

Global Warming Alignment (optional)

swiss-climate-scores-bewertung-globales-erwaermungspotential

This is the level of global warming that would occur if the global economy acted with the same ambition as the companies in the portfolio. Some portfolios with climate objectives may intentionally include investments in companies that are not yet on track to 1.5°C, but seek to contribute actively to climate goals by improving the alignment of investee companies to bring a larger share of the economy into alignment over time.

Evaluation

Portfolio assets covered by assessment: X%

Climate scenarios used: [original source]

Data provider: [provider name]

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High estimation uncertainty

Last modification 28.06.2022

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