How Swiss Investors Can Drive the Green Transition

As the world shifts toward a more sustainable future, the role of finance in this transition has never been more critical. A project from ETH Zurich and the University of Zurich, supported by the Swiss Federal Office of Energy and published in February 2025, explored how Swiss private investors perceive and engage with sustainable finance. The researchers surveyed more than 2,500 German-speaking Swiss retail investors between January and April 2024, exploring participants’ attitudes toward sustainability labels and the influence of financial knowledge on investment choices.

What Is sustainable investing?

Sustainable investing goes beyond profit; it considers environmental, social, and governance (ESG) factors. This means investing in companies that promote clean energy, fair wages and ethical business practices. As climate concerns grow, more investors seek ways to align their money with their values.

What Sustainability Labels do Swiss investors trust?

One of the study’s key findings is that Swiss investors place great importance on transparency and standardized labeling. The Swiss Climate Scores—offering clear, detailed information on the sustainability performance of financial products—stood out as particularly well-received. Investors are eager for reliable tools that help them distinguish genuinely sustainable products from those engaging in ‘greenwashing,’ where environmental claims are exaggerated or misleading.

The Power of financial education

The study also highlighted, through a randomized control trial, the critical role of financial education. A simple, short educational intervention significantly boosted investors’ understanding of sustainable finance and increased their willingness to choose greener funds by six percentage points in a hypothetical scenario. This demonstrates that even modest efforts to improve financial literacy can have a meaningful impact on investor behavior.

Implications for the future

The study’s findings have important implications for policymakers, financial institutions and investors. To accelerate the transition to a green economy, Switzerland could introduce more standardized sustainability labels and enhance public education on sustainable finance. Investors, in turn, can make a difference by demanding transparency and prioritizing sustainability in their portfolios.

Sustainable finance is more than a trend—it’s a powerful tool for change. With informed choices and clear regulations, Swiss investors have the potential to drive the country’s green transition and set an example for the world.

More information here: Knowing more about sustainable finance benefits investors and society – Energy Blog @ ETH Zurich

Text: Massimo Filippini, director, Centre for Energy Policy and Economics (CEPE) der ETH Zürich, and Tobias Wekhof, lecturer, Centre for Energy Policy and Economics ETH Zürich
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