Swiss Financial Sector Still Stuck In Fossil Fuels: Report

The Swiss financial sector still invests too much in the production of oil and coal despite progress towards more climate-friendly investments, an official report said Monday

Geneva, (APP - UrduPoint / Pakistan Point News - 9th Nov, 2020 ) :The Swiss financial sector still invests too much in the production of oil and coal despite progress towards more climate-friendly investments, an official report said Monday.

"Overall, the Swiss financial centre now invests four times more resources in companies producing electricity from fossil sources such as coal or gas than in those producing from renewable sources," said the joint report by the Federal Office for the Environment and the State Secretariat for International Finance.

It is the second such report after the first was published in 2017.

Players in the Swiss financial market had the "climate compatibility" of their portfolios analysed on a voluntary basis.

"Progress has been made, but the goal has still not been reached if Switzerland wishes to play a leading role in the field of sustainable financial flows," the report said.

"Some 80 percent of participants hold securities in coal mining companies in their portfolios. On average, the Swiss financial centre thus supports further expansion of international coal and oil production, which goes against the 'climate objective'."A total of 179 financial institutions took part in the study, including, for the first time, banks and asset management firms.

The report noted that the climate compatibility test attracted twice as many participants as in 2017, when only pension funds and insurance companies took part.