Switzerland’s Federal Department of Finance (FDF) has said it will put forward proposals to the government to prevent greenwashing in the financial services industry.

The move follows a report by the Federal Council, which is Switzerland’s government, which examined how to stop financial services companies from misleading their customers about the sustainability of products.

The December 2022 paper found that Switzerland has no legislative or regulatory requirements on transparency or compliance rules for sustainability, with no obligations for financial products, with the exception of funds, to declare their environmental credentials, said the FDF.

The report laid out the Swiss government’s position on greenwashing and suggested actions which could be taken to prevent it.

The FDF is part of a working group looking into greenwashing and will implement the Federal Council's position by proposing principles-based state regulation at ordinance level.

The department said it will submit draft proposals to the Federal Council by August 2024. It added that it would abandon its efforts to implement proposals against greenwashing if the financial industry presents a “self regulation solution” which aligns with the government’s views.

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