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Switzerland FINMA Climate and Nature-Related Financial Risk Supervision (CH FINMA Circular 2026/1)

Switzerland FINMA Climate and Nature-Related Financial Risk Supervision (CH FINMA Circular 2026/1): Swiss FINMA Supervision: Climate and Nature-Related Financial Risk Expectations

Maílis Carrilho
Written by Maílis Carrilho
Updated on December 30th, 2025

Summary

FINMA integrates climate-related (and increasingly broader nature-related) financial risks into Swiss prudential supervision. Regulated institutions are expected to embed these risks into governance, strategy, and risk management, supported by principle-based disclosure requirements and supervisory reviews. Implementation is proportional and phased, with transitional periods and evolving guidance. Non-compliance tends to appear as weak governance structures, inadequate scenario-based risk integration, or disclosures that do not meet supervisory expectations, triggering supervisory measures rather than simple fines.

Details

Jurisdictions
  • Switzerland
Exemptions

Binding through supervisory expectations and enforcement powers for FINMA-regulated institutions.

Exceptions:

Proportionality applies: requirements scale by institution type and size/risk profile.

Deep dive

1 min read
Updated Dec 30, 2025

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What’s Required

FINMA requires regulated institutions to address climate-related risks through governance, risk management, and disclosure expectations, and has expanded toward nature-related financial risks via circular work and supervisory practice.

Important Deadlines

  • Transitional application periods exist; key FINMA communications point to phased implementation starting from 1 January 2026 for transitional periods in the nature-risk circular framework, with further applicability dates depending on institution category.

Current Status

Active supervisory practice with published disclosure and risk-management expectations.

Penalties for Non-Compliance

  • Supervisory measures: remediation plans, restrictions, intensified oversight, and potential capital or governance consequences depending on findings.

Examples of Known Violations

  • Insufficient governance and risk frameworks for climate risks.

  • Weak or inconsistent climate-risk disclosures compared to supervisory expectations.

Resources


Maílis Carrilho
Added by:
Maílis Carrilho
Sustainability Research Analyst
Maílis Carrilho is a Sustainability Research Analyst (Intern) at Net Zero Compare, contributing research and analysis on climate tech, carbon policies, and sustainable solutions. She supports the team in developing fact-based content and insights to help companies and readers navigate the evolving sustainability landscape.
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Added on Dec 31, 2025 by Maílis Carrilho · Updated on Dec 30, 2025