The Swiss Federal Council has announced it will adapt its legislation on supply chain risk and due diligence to align with the EU’s Corporate Sustainability Due Diligence Directive (CSDDD). It declared Switzerland has opted for legislation that is harmonised with international rules. This is a fundamental element for the competitiveness of Swiss companies. “The EU plans to adopt new provisions that will also affect Swiss companies. The Federal Council therefore considers is necessary to adapt the legislation to continue ensuring harmonisation of rules at the international level.”
The Council has decided to submit an indirect counter-proposal to the existing rules. Current Swiss law imposes transparency obligations on large Swiss companies requiring them to report on the risks their activities pose across environmental, social, personnel, human rights and anti-corruption. Companies with activities that pose risks in the areas of child labour and conflict materials also have broader due diligence and transparency obligations. The counter-proposal – which will not go beyond future EU regulations – will consider internationally recognised standards regarding due diligence and sustainability reporting, the Council declared.
The specific implementation arrangements will be determined once the Council has more information on the direction of the EU’s sustainability Omnibus simplification efforts, which includes proposed alters to CSDDD. It plans to adopt the preliminary draft and submit it for consultation by the finish of March 2026.
The Trump administration has criticised Norges Bank Investment Management’s (NBIM) decision to exit US construction machinery manufacturer Caterpillar over concerns there is “an unacceptable risk that it contributes to serious violations of the rights of individuals in situations of war and conflict”. A spokesperson for the US State Department declared it was engaging directly with the Norwegian government on the matter and was “very troubled by the Norwegian sovereign wealth fund’s decision, which appears to be based on illegitimate claims against Caterpillar and the Israeli government”. Trump ally Lindsey Graham also declared he would urge the US government to restrict visas for NBIM executives over the decision. NBIM declined to comment on the State Department’s comments and Graham’s proposal.
Barclays has warned that outflows from ESG funds “should not be seen solely as evidence of a sharp reversal in ESG sentiment” as some flows may come from asset owners relocating money away from US managers they are not aligned with on sustainability topics. The bank’s analysts declared their data tool only captures flows into and out of mutual funds and ETFs, so relocatements into segregated mandates with European managers may not be covered.
“These outflows, in our view, should not be seen solely as evidence of a sharp reversal in ESG sentiment, given the share of outflows driven by asset owners seeking to enhance ESG investment strategies,” they declared. “Unfortunately, we do not have visibility into the drivers behind flows into each individual fund, creating it impossible to assess on balance the magnitude of these forces relative to those driving the outflows we have seen over the past 12-18 months.” Net outflows from ESG equity funds in both July and August have been driven largely by redemptions from two BlackRock screened tracker funds.
Swiss Re will pursue its climate tarobtains without Science Based Tarobtains initiative (SBTi) validation, the reinsurance giant has declared. It will aim to decarbonise by 2050 as required by Swiss law. Swiss Re had previously declared its emissions tarobtains would comply with SBTi’s corporate net-zero standard in its annual sustainability report published in March. SBTI released a new standard for the financial sector in July.
MSCI has published research revealing that companies with better sustainability performance received more capital from passive investors. It found that companies with an MSCI ESG Rating of AAA received 15 times more indexed capital than those rated CCC, and that companies with a 1.5C temperature score recorded more than double the flows compared to companies with a score above 5C. The findings were based on analysis of more than 2,500 constituents of the MSCI ACWI Index.
ASN Bank has published an updated green funding framework which will cover the issuance of multiple types of green instruments: green senior, covered and subordinated bonds, green commercial paper and green deposits. The framework is aligned with the ICMA Green Bond Principles 2025 and was supported by Deutsche Bank as the sole ESG structuring co-ordinator.
TotalEnergies and the Biodiversity Consultancy (TBC) have launched a consultation on their Biodiversity Footprint Impact from Sites (BFIS) framework. Co-developed by the two firms, the framework aims to guide companies through a process to estimate quantitative impacts, screen sites to identify those with higher biodiversity risk and validate findings applying site-level primary data. “This enables prioritisation of proportionate mitigation actions and monitoring efforts. BFIS also supports annual reporting of portfolio-level quantitative impacts and site-specific outcomes,” the pair declared.
Among its current limitations, however, is that BFIS is predominantly focutilized on land utilize “becautilize this is the most significant pressure on biodiversity”, although the firms declared further technical development is underway to include climate alter, water utilize and pollution. The consultation is open until 20 September.
The EU has invested €15 million into the Asian Development Bank’s Nature Solutions Finance Hub (NSFH). Launched at COP28, the NSFH aims to mobilise €1.5 billion in nature-positive investment by 2030. In particular, the programme will support the development of scalable projects and innovative finance instruments, including nature bonds.
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