William Brewer has worked at Eurostaff for over five years placing professionals into the professional services sector in Switzerland. He has seen much new legislation come into place and changes made within Switzerland’s economy over the years. Today, he discusses can Switzerland become the world leader of Finance?
Throughout Europe, Switzerland has become a financial powerhouse. Its monetary security and stability has made it an attractive destination for investors. With a lot of foreign investment pouring into the country and a skilled workforce, it’s no surprise that the relatively small country has achieved one of the highest per capita incomes in the world.
With such a strong economy, it’s clear how Switzerland has topped the Global Innovation Index for the past seven years. The survey focuses on measuring the innovative capacity and global economic performance and 2017 saw the country once again placing above Sweden, the Netherlands, the United States and the UK to lead the Top 5.
As a country that has been leading the way economically there’s no wonder that the rest of the global economy is looking to Switzerland to follow by their example. Strong financial assets coupled with sustainable planning has helped nurture Switzerland’s growth and with its sustainable assets growing 38% to a total of $273.8 billion, it doesn’t look like this growth will slow down anytime soon.
With such strong institutional growth, Geneva has expressed its desire to become world leaders of sustainable finance. At the Geneva Forum for Sustainable Investment, experts were quoted saying (translated):
“It is now recognized that Swiss and Geneva financial centres are indisputable players in the sustainable financial industry. Most institutions offer products and services from SRI or from ESG criteria, with ever-increasing demand.”
As a well-known global banking powerhouse and with the presence of the United Nations in the country’s second largest city, Geneva, Switzerland is looking like it will remain a global hotbed for finance for years to come.
What is sustainable finance?
Sustainable finance usually refers to the form of financial service that integrates environmental, social and governance (ESG) into a business or investment decision. This type of investment usually has the intentions to positively benefit both the clients, who will be investing, and society as a whole.
Examples of these include looking for investments that will help improve both the efficiency and competitiveness of the economy for both the present and long-term growth. Alongside this, sustainable finance looks towards the protection and restoration ecological systems while trying to enhance social wellbeing.
The Swiss financial centre is a powerhouse throughout Europe and with goals for Geneva to become a world leader in finance, it’s believed that the advances and successes found through the cities sustainable finance strategy will help create a business community that continues to thrive.
To truly achieve a title that solidifies the city as a world leader, Geneva will need to build something similar to the San Francisco tech giant, Silicon Valley, which houses many of the world’s high tech companies, including 39 companies featured in the Fortune 1000.
Geneva is already home to many multinational financial companies such as BNP Paribas, Capital Group and HSBC, so attracting big names has never been a problem for Switzerland’s second largest city. With a thriving economy that looks set to carry on throughout years thanks to the sustainable plans, Geneva’s financial industry will continue to prominently put it on the map.
Looking for a job in the professional services sector, specifically finance? Send your CV to William today.