Switzerland's Unique Approach to ESG Practices

Switzerland’s long-standing commitment with the environment has led it to become a pioneer in the adoption of sustainable practices, potentially offering countries like Mexico a path to adopt ESG standards, says Pietro Piffaretti, Ambassador of Switzerland to Mexico and Belize.

For Switzerland, the key for efficient ESG implementation lies in the effective collaboration between different sectors and in applying environmental co-responsibility. "Our social sustainability model supports inclusion and is based on a shared approach that is, ultimately, more sustainable. Through environmental co-responsibility, Switzerland has been able to improve both social peace and stability," says Piffaretti. 

Switzerland has taken a unique approach to ESG practices and their implementation, which have become part of the country’s national identity, says Piffaretti. The country has a long tradition of valuing the environment, society, and governance, recognizing that these elements are essential for stability, prosperity, and quality of life, he adds. 

This unique approach to sustainability was prompted by a long period of unsustainability that reached a breaking point, requiring immediate and effective action to reduce the country's carbon footprint, according to Piffaretti. Such critical circumstances led Switzerland to recognize that the environment is both an economic good and a collective good that belongs to all citizens. As a result, the country considered it to be extremely necessary to implement costly public policies that incentivized the adoption of ESG measures.

“Although these measures are typically applied to private companies, they can also be applied to public initiatives that increase the reach of these environmental strategies,” says Piffaretti. In Switzerland, practices such as replacing polluting vehicles and moving goods by rail instead of by road have shown great promise in reducing the country’s carbon footprint. 

Ideally, these ESG measures should not only be applicable to businesses, as they commonly are, but also to governmental authorities. "This sustainable development generates an environment that is more marked by trust between citizens and government authorities, which reduces judicialization between social relations and the state,” says Piffaretti. Moreover, adopting these strategies can help reduce operating costs for businesses and ensure a higher quality of life for citizens around the world, he adds. 

Switzerland’s unique ESG measures can be exported to other countries such as Mexico, says Piffaretti. By adopting a comprehensive approach that integrates environmental, social, and governance factors, Mexico can reduce its carbon footprint, improve the quality of life of its citizens, and promote economic stability, he adds.