In a ranking of the world’s best locations for sustainable investments, Zurich and Singapore have overtaken Geneva. London narrowly defended its top position.
The index, compiled semi-annually by the London-based think tank Z/Yen, evaluates the availability of sustainable investment offerings in financial centers worldwide. This time, the ranking includes a total of 97 locations. Once again, three Swiss financial centers—Zurich, Geneva, and Lugano—are listed among the top 20.
According to the «Global Green Finance Index» (GGFI), London offers the largest range of so-called «green» financial products for the third time in a row. However, Geneva has lost its second place and has been overtaken by both Zurich and Singapore. The financial heavyweight New York has dropped in both its rating and ranking.
The rest of the top 10 includes Stockholm, Los Angeles, Luxembourg, Copenhagen, and Montreal. Despite the significantly larger competition, the small city of Lugano managed to rank 13th.
Compared to previous surveys, confidence in the development of green finance in financial centers appears to be slightly declining, according to the authors. This year, the average ratings were 1,96 percent lower. In the last survey, the average rating had increased by 4,21 percent. Only six centers were able to improve their ratings.
Western European centers remain a strong focus and have continued to perform well. This is attributed to their long-standing experience in developing green financial products and their expertise, the report adds.
North American centers also perform well. A city’s or country’s overall commitment to sustainability has a strong influence on the depth and quality of green financing.
Energy efficiency and divestment from fossil fuels
Survey participants identified energy-efficient investments, divestments from fossil fuels, and green loans as the areas with the greatest impact. Energy-efficient investments also garnered the most interest, alongside investments in renewable energies and ESG analyses.
Key factors that could influence the market for green financing, according to respondents, include the risk management framework, political and regulatory conditions, and international initiatives.
The index was compiled using 127 factors. The data came from sources such as the World Bank, the OECD, and the United Nations. Additionally, responses from an online survey of 748 participants were included.