With a gross value added of CHF 29.9 billion and 97,300 full-time jobs, the Zurich financial center is a major pillar of the Zurich economy and the largest financial center in Switzerland. Sustainable business practices are becoming increasingly important for companies in all sectors. Drivers for this are international sustainability goals, but also changing customer needs. Due to its importance for the Swiss financial center, the Zurich financial center has a key role to play in this development. Every second financial company also sees sustainable finance as an opportunity to strengthen its reputation and to win and retain customers. This is shown in the new study “Financial Center Zurich 2023/2024” by the Cantonal Division of Business and Economic Development and Zurich Urban Development.
The financial sector, which includes banks, insurance companies and other financial services, is one of the most important industry aggregates in the Zurich region. One in ten jobs and one in six value-added francs would be attributable to the financial sector in 2021. The real gross value added of the financial sector developed more dynamically overall than that of the economy as a whole between 2011 and 2021, especially also in the pandemic years 2020 and 2021. This is shown in the new study "Financial Center Zurich 2023/2024" by the Division of Business and Economic Development of the Canton Zurich and the Urban Development Department of the City of Zurich. Despite the currently very challenging geopolitical and economic environment, the overall growth outlook for the financial sector is positive.
Sustainable management is increasingly becoming the focus of companies. Drivers of this development include the Paris climate targets, the UN sustainability goals, legal framework conditions, but also changing customer needs. Sustainable financial products and services are increasingly in demand. The Federal Council has recognized the importance and potential of sustainable finance and in December defined several measures with the aim of further expanding the position of the Swiss financial center as one of the world's leading locations for sustainable financial services. The Zurich financial center plays a key role due to its importance for the Swiss financial center. This study examined how progressive the Zurich financial center is in terms of sustainability. The results of the survey show that numerous companies already offer products and services with innovative sustainable approaches. These include investment products with specific sustainability objectives, ESG-compliant activities, sustainable bonds or sustainable loans, insurance or services.
However, companies also face challenges, according to the survey. This includes the increasingly complex political and regulatory framework imposed by the federal government and the EU. The increasingly required transparency of climate risks and sustainability measures is also seen as challenging by 40 percent of companies. The survey participants see the greatest potential for improvement in networking with science and other companies, as well as in legal and regulatory issues.
The consistent focus on sustainability is an opportunity for the Zurich financial center and the entire Zurich business location. This is also in the interest of the companies surveyed: Every second company sees sustainable finance as an opportunity to strengthen its reputation and win and retain customers. However, the great development potential of sustainable finance must be exploited to an even greater extent. This includes, for example, the systematic disclosure of relevant and comparable climate information from companies and for investments in such companies.
The Canton and City of Zurich are committed to promoting Sustainable Finance in the Zurich financial center, anchoring it more firmly and enabling an attractive environment. The Canton of Zurich and the City of Zurich will continue to pursue this topic with the aim of deepening the dialog between the financial industry, business and academia. This is done, for example, by networking and making visible the players from the financial industry and the cleantech industry on the Innovation Zurich platform of the cantonal location promotion, but also through a regular exchange within the framework of workshops and conferences as well as further data collection.