Measuring impact: methods, limits, verification

Read the PDF edition (2 pages)

The credibility of sustainable finance depends on measurement. Exclusion approaches are easily verified. The integration of environmental, social and governance criteria rests on ratings whose providers diverge sharply for the same company, which has led the European authorities to regulate those providers. Climate alignment is measured by emission and trajectory indicators whose methods are evolving, while impact presupposes a theory of change, outcome indicators and an attribution that few managers document completely.¹ Geneva managers use these methods with uneven degrees of rigour, with the result that institutional clients increasingly demand third-party verification.

Three principles emerge from the practice of the most demanding houses. The first is transparency of methods: publishing what is measured, how and with what limitations. The second is proportionality of claims: claiming an impact only where it is attributable and measured, and in other cases confining oneself to describing the approach. The third is verification: submitting impact reports to independent review, as accounts are. These principles, when applied, protect against greenwashing better than any regulation, although they come at a cost that clients are increasingly willing to pay.

Notes

Regulation (EU) 2024/3005 of 27 November 2024 on the transparency and integrity of ESG rating activities, published on 12 December 2024, applicable from 2 July 2026, with registration and supervision of providers by ESMA; CMS, “Tour d’horizon du nouveau dispositif européen sur les activités de notation ESG” (Overview of the new European framework on ESG rating activities), cms.law (accessed September 2026). ↩

For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of September 2025.

English

Contact

Dr Alexander Ressos, TEP

Rechtsanwalt/Attorney-at-Law

I am a Swiss attorney-at-law and also admitted as a solicitor in Hong Kong and in England & Wales, with almost 25 years of experience.

Together with my multilingual team, including Chinese, Japanese, Korean, Russian, Ukrainian and French native speakers, I advise companies and their owners from around the world on the full range of banking, corporate, commercial and tax law matters in Switzerland, including international tax planning, fiduciary services, and legal family office services including immigration & relocation or real estate investments. My practice has a particular focus on clients from growth and frontier markets in Greater China, Central Asia and the Caucasus, the rest of Asia, the Middle East, Africa and Latin America, and I equally advise clients from Europe and North America. Through an affiliated Swiss trust company, we also take care of the incorporation and ongoing administration of their companies and other structures, including accounting, tax returns and corporate secretarial services, and I serve as a professional director where required. With the support of a network of first-class cooperation partners, I also implement solutions worldwide.

My approach is to act as a trusted advisor who works directly with decision-makers, on an equal footing: I start from what you want to achieve and shape every structure, contract and tax decision around your commercial goals and how it improves your after-tax return. As “lawyers who make it happen”, my team and I stay involved until your company is set up, your structure is in place and your transaction has closed, and we remain available for any follow-on work that may be required. You benefit from bespoke solutions and personal attention, and sound, friendly and practical advice. We are not the lowest-cost provider in the market, nor do we intend to be; our aim is to deliver well-founded, proper solutions and excellent value for money.

Get in touch →

Measuring impact: methods, limits, verification

Notes

Setting up or expanding in Switzerland?