In December 2022, the Swiss Federal Council published its position regarding the prevention of greenwashing in the financial sector. In addition, it tasked the Federal Department of Finance (FDF), along with representatives of the Federal Department of the Environment, Transport, Energy and Communications (DETEC), the Federal Department of Economic Affairs, Education and Research (EAER), the Swiss Financial Market Supervisory Authority (FINMA), the banking industry, and non-governmental organisations, with determining how these requirements could be implemented most effectively. In the financial industry, “greenwashing” refers to the practise of misrepresenting the sustainability of financial products and services.

The FDF decided to implement the Federal Council’s position by proposing principles-based state regulation at ordinance level after evaluating the group’s members’ input. Self-regulation by the industry could supplement such regulation. The Federal Council announced in a press release dated 25 October 2023 that the FDF will submit a consultation draft of a new greenwashing ordinance to the Federal Council by the end of August 2024. However, the Federal Council emphasised that if the financial industry proposes a self-regulatory solution that effectively implements the Federal Council’s position, the FDF might forego additional regulatory efforts.