In a significant move, the Federal Department of Finance (FDF) in Switzerland is preparing to propose comprehensive regulations to combat greenwashing, aligning with the Federal Council’s stance. This decision follows the Federal Council’s initial position on preventing greenwashing in the financial sector, as disclosed in December 2022.
To tackle the issue of greenwashing effectively, the Federal Council entrusted the FDF, along with stakeholders from various government departments, the Swiss Financial Market Supervisory Authority (FINMA), and industry representatives, to explore efficient implementation methods.
Following an extensive evaluation of input from the working group, the FDF has chosen to recommend principles-based state regulation at the ordinance level, possibly complemented by industry self-regulation. The FDF will present a draft proposal for consultation to the Federal Council no later than August 2024. However, if the financial industry can introduce self-regulation measures that effectively align with the Federal Council’s position, the FDF may reconsider further government regulations.