Most Swiss banks expect slump in sustainable products

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illuminem summarises for you the essential news of the day. Read the full piece on swissinfo or enjoy below:

🗞️ Driving the news: Swiss banks are predicting a decline in demand for sustainable financial products
• 86% of Swiss banks expect stagnation or a drop in customer demand for sustainable financial products in the medium to long term
• The momentum for sustainable investments has waned, with green financial products remaining a niche market primarily for institutional investors and wealthy clients

🔭 The context: A recent survey by EY reveals that regulatory challenges and high data collection and reporting costs are hindering the growth of sustainable finance in Switzerland
• The difficulty of complying with sustainability regulations and managing the complexities of climate reporting are cited as major obstacles for banks

🌍 Why it matters for the planet: The decline in demand for sustainable products could slow progress toward global sustainability goals
• If financial institutions reduce their focus on sustainable investment, efforts to allocate capital toward green projects could be undermined 

⏭️ What’s next: Swiss banks may need to rethink their approach to sustainable financial products to maintain relevance in a changing market
• Overcoming regulatory hurdles and improving data reporting may be key to reinvigorating demand for sustainable investments

💬 One quote: “The benefits [of sustainable financial products] are often disproportionate to the effort involved.” – EY survey on Swiss banks' challenges

📈 One stat: 86% of Swiss banks expect demand for sustainable financial products to stagnate or decline in the medium to long term

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