Resilient ESG compliance and increasing private capital drive Switzerland’s sustainable finance market to CHF 1.88 trillion. ESG BROADCAST shares key takeaways.
The Swiss Sustainable Investment Market Study 2025, reports a significant 13% year-on-year growth in sustainability-related investments, reaching CHF 1,881 billion by the end of 2024. This recovery follows two slower growth years and signals renewed investor confidence in sustainable finance, despite global uncertainties and regulatory headwinds.
Now in its eighth edition, the SSF study tracks the evolution of sustainable investment in Switzerland. The 2025 edition shows that both institutional and private investors are increasingly integrating sustainability considerations into their portfolios. According to SSF CEO Sabine Döbeli, the shift reflects a dual objective: managing financial risk and contributing to a more sustainable economy.
Unabated client demand, especially from retail segments, and strengthened fiduciary mandates among institutional investors emerged as the primary growth drivers. Strategic impetus from top management accounted for 73% of institutional commitments, while competitive advantage and market expectations influenced asset managers. Notably, the proportion of private investors rose from 28% to 33%—the first increase in four years—highlighting widening public engagement with ESG-aligned financial products.
The study also underscores qualitative advancements in the market. Sustainable investment strategies have matured, with multiple approaches being combined more frequently. Thematic investments grew by 16%, climate alignment by 33%, and impact investments by 27%, reflecting a shift toward performance-based, purpose-led finance. ESG engagement leapt to the second most used strategy, indicating the centrality of stewardship in driving corporate sustainability outcomes.
Importantly, the majority of Swiss sustainable investments—amounting to CHF 1,744 billion—now comply with the Swiss Asset Management Association’s (AMAS) self-regulatory framework (version 1.1, as of November 2023). Many institutions have also begun early implementation of its upcoming stricter provisions, pointing to increasing market discipline and regulatory foresight.
Asset allocation trends suggest divergence between institutional and retail priorities. Institutional portfolios remain heavily weighted toward corporate and government bonds (55%), while asset managers favour equities (33%) and are expanding into private equity and infrastructure—signalling diversification within ESG investing.
“The strong performance of impact and climate-focused funds indicates a maturing sector with deeper commitment to environmental governance and long-term value,” said Romain Leroy-Castillo, Director Projects at SSF and lead author of the study.
Strategic significance lies in Switzerland’s ability to consolidate its leadership in sustainable finance by fostering both breadth and depth in ESG investment practices. The marked increase in private participation and the robust alignment with regulatory benchmarks offer actionable insights for global asset managers, corporate sustainability leaders, and responsible business strategists.
ESG BROADCAST will continue monitoring the updates related to this topic. Stay tuned to be updated on the related policy and pivotal regulatory shift.
