Contact

Contact headquarters

BerneT +41 31 343 03 30
Zurich
T +41 44 545 50 50
Geneva
T +41 22 520 71 00
Hamburg
T +49 40 6094 5522-0

Valais

T +27 343 01 80


Mail

Mail

Financed Emissions - Why Financial Institutions Have To Act Now

The biggest sources of emissions often lurk where they are least expected – in loans and investments.

Financed emissions are carbon emissions that arise indirectly from a financial institution's financing and investment activities. These often represent the majority of a financial institution's carbon emissions. In the face of increasing regulatory requirements and growing demand for sustainable finance, financial institutions need to take action to transparently measure and reduce their financed emissions. A proactive approach not only protects against reputational risks, but also opens up opportunities for innovative and sustainable financing and investment.

Why is calculating financed emissions so important?

Growing pressure

Governments and regulatory authorities around the world are tightening their requirements for financial institutions to measure and disclose financed emissions. In Switzerland, climate reporting is regulated by the Ordinance on Climate-Related Issues (Art. 964 ff. OR), which came into force in 2024. The ordinance is based on the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD) and requires companies to disclose the emissions they have financed (Scope 3.15). In addition to the regulatory authorities, other stakeholders, such as investors, ESG rating agencies, customers and NGOs, are also calling for more transparency with regard to carbon emissions and their management.

Relevance and impact

Financed emissions account for the majority of carbon emissions at financial institutions. According to the Carbon Disclosure Project (CDP), they are on average 700 times higher than direct emissions. Financial institutions therefore have enormous leverage to direct financial flows towards a net-zero economy.

Realizing opportunities and risks

Climate risks also include financial and reputational risks. Calculating the financed emissions provides a holistic picture of carbon emissions and forms the basis for credible climate targets and the transition to a low-carbon economy. This also reduces the risk of greenwashing. In addition, transparency regarding financed emissions serves as a risk management tool to identify and minimize transition risks in a targeted manner, while at the same time realizing opportunities – for example, through active engagement with carbon-intensive companies or the development of new climate-friendly products and services.


How can we support you?

Swiss Climate offers customised solutions to calculate and reduce the financed emissions of your financial institution in the long term. With our expertise, we help you to meet regulatory requirements and create the basis for future climate goals.

Our services include:

  • Identifying and closing regulatory gaps (e.g. Swiss Ordinance on Climate-Related Issues Art. 964 ff OR / TCFD, FINMA, CSRD)
  • Determining financial emissions in accordance with the internationally recognized best practice standard of the Partnership for Carbon Accounting Financials (PCAF)
  • Determining the appropriate methodology for your organization to calculate the financed emissions per asset class (e.g. corporate lending, asset management, mortgages, private equity)
  • Creating a holistic carbon footprint (Scope 1 to 3) including Scope 3.15
  • Developing a realistic action plan and defining climate targets in connection with Scope 3.15
  • Development of a holistic transition plan

Financial institutions are faced with the challenge of playing a leading role in the global transition to a net-zero economy. We help you turn this responsibility into an opportunity and create long-term value for your organization and society.

Contact us now for a no-obligation discussion.

Your contact partner

SC2024 1 0408 luzia gysin ret 3
Luzia Gysin Senior Consultant +41 31 343 03 89 E-Mail LinkedIn