«We see a clear trend toward a mainstreaming of ESG products,» said Sabine Doebeli, CEO of SSF, a group that already has 142 members. The proportion of assets managed according to the ESG criteria in relation to the total puts Switzerland way ahead of other markets, she added.

But of course, being ahead doesn’t mean that the Swiss market will stay ahead, she cautioned. «One can assume that the advantage will shrink as the increasing reallocation into sustainable investments is a worldwide trend.»

And indeed, other markets have also discovered the opportunities presented by sustainability. The London-based regulator FCA is taking a stance over the business, seeing itself not only in the role as promoter but also as a watchdog. It will conduct the first sustainability stress tests in the U.K. this year.

Wall Street Is Taking Note

France, not generally considered an arch-rival of Swiss banking, is equally keen to push the business in the direction of sustainable investing. The Paris conference on climate change in 2015 prompted a rethink in the finance industry. Pension funds became increasingly aware of the risks, which in turn led to a series of new business models in the finance industry.

The European Union meanwhile has put in place its Sustainable Finance Action Plan (SFAP) and requires fund managers to declare their intention to consider ESG criteria in their portfolio allocation. There’s no evading the issue in Europe anymore and now even Wall Street is catching up on the theme: Blackrock in January set itself the goal of boosting assets managed according to sustainability criteria to $1 trillion within a ten-year period.

Massive Shift

Blackrock CEO Larry Fink expects an earlier-than-expected massive shift in capital. It goes to show that the hope for a green boost may turn out to be treacherous.

If investors are demanding from wealth managers that they should raise the level of sustainability in general, there will be mainly a relocation of capital within portfolios.

Pension Funds Require Cheaper Products

Doebeli from the SSF association confirmed the observation. She said that it was important to move ahead and build a green know-how as it supported innovation and improved client loyalty.

But it was nevertheless not necessarily a way to boost income. Often, assets are being shifted from one fund into the next, which price pressure remaining highly important. Pension funds for instance are demanding low-price, passively managed products.