ESG (Environmental, Social, and Governance) investing, now a global financial force managing trillions, quietly began in Geneva, Switzerland in 2004 with a report titled Who Cares Wins. Backed by the Swiss government and UN advisors, it introduced ESG as a strategy to identify long-term risks and value beyond traditional financial metrics.
Initially overlooked, the movement gained traction with the 2006 launch of the UN’s Principles for Responsible Investment. Despite early criticism and inconsistent data, ESG entered the mainstream by the 2010s through sustainable funds, stricter regulations, and investor demand.
Today, ESG is evolving—focusing on climate tech, biodiversity, and impact investing. Its Swiss origin reflects a strategic, not moral, framing: caring about sustainability isn’t idealism—it’s smart investing.
Key message: ESG started in Switzerland, not Wall Street, and its core idea remains—those who care, win.
What if one of the most powerful investment movements of the 21st century didn’t begin on Wall Street or in Silicon Valley—but in the quiet corridors of Swiss diplomacy?
It sounds unlikely. ESG—short for Environmental, Social, and Governance—has become a buzzword across global finance. Trillions of dollars now sit in funds that promise to align capital with sustainability. Politicians argue over it. Boards hire consultants for it. Investors demand ratings, reports, and frameworks. Yet few know the true origin story.
It began with a simple idea and a surprising question:
What if the best-performing companies in the long term are the ones that care?
The year is 2004. The world is still digesting corporate scandals like Enron and WorldCom. Climate change is a fringe concern in most boardrooms. ESG isn’t a thing yet.
In Geneva, a group of Swiss government officials and UN advisors are quietly preparing a report. It’s called Who Cares Wins, and its subtitle is unusually direct: “Connecting Financial Markets to a Changing World.” Backed by the Swiss government, this document would introduce the term “ESG” to the world for the first time.
Its thesis was bold: if investors integrate environmental, social, and governance factors into decision-making, they’ll uncover risks that traditional models miss—and find companies that are better managed, more resilient, and ultimately more profitable.
The phrase Who Cares Wins wasn’t a slogan. It was a bet against convention. And it came not from the heart of global capitalism, but from a country known more for chocolate, diplomacy, and discretion. The country that’s home to yours truly.
Who Cares Wins landed with quiet force. It didn’t make front-page news. But it reached the desks of asset managers, pension funds, and financial regulators.
Just two years later, in 2006, the UN launched the Principles for Responsible Investment (PRI) at the New York Stock Exchange. The PRI asked asset owners to sign on to six aspirational principles encouraging ESG integration. Today, over 5,000 signatories managing more than $120 trillion follow them.
It wasn’t all smooth sailing. Early ESG adopters were dismissed as idealists. Data was patchy. Metrics were inconsistent. Critics warned of “greenwashing”—where companies or funds made big promises but delivered little change.
Still, something shifted.
By the early 2010s, ESG wasn’t fringe anymore. It was becoming mainstream.
• Banks began offering ESG-labeled products.
• Asset managers launched sustainable funds.
• Regulators, particularly in Europe, demanded disclosure.
• Shareholders started asking tougher questions.
A new investment lens was taking hold—one that asked not just "What will this company earn next quarter?" but "What risks aren’t on the balance sheet?"
Today, ESG investing is everywhere. But it’s also evolving. It’s not just about scoring companies on sustainability metrics. It’s about identifying the structural forces shaping markets—and getting ahead of them.
Climate tech is one of those forces. In 2021, net inflows to climate-themed equity funds hit $151 billion, and total assets surpassed $570 billion in 2024. Investors are now funding everything from direct air capture to regenerative agriculture.
Nature investing is rising too. Biodiversity funds—a niche just a few years ago—grew nearly 50% in 2024 alone. These funds use satellite data, supply chain analysis, and AI to understand land use, ecosystem services, and restoration potential.
Meanwhile, impact investing—once viewed as charity in a suit—has matured into a $1.5 trillion market. With robust frameworks like the UN Sustainable Development Goals and GIIN’s IRIS+ metrics, investors can now track social or environmental outcomes alongside financial returns.
In other words: ESG is no longer just about avoiding harm. It’s about investing in solutions.
Why did this all start in Switzerland?
Because Switzerland has long been a hub for wealth with discretion, for values-driven capital, and for international convening. It was uniquely positioned to birth a quiet investment revolution.
Swiss institutions were among the first to treat sustainability as material—not moral. That distinction mattered. ESG wasn't presented as a moral obligation. It was framed as a strategic edge.
And that's still the key insight today.
ESG isn't a scorecard. It's a mindset. A way of seeing the world not just as it is, but as it's changing. A lens that helps investors ask better questions, spot hidden risks, and fund the future.
So the next time someone asks you where ESG came from, you can skip the slogans and point to a small country with a big idea: that those who care—about people, planet, and governance—just might outperform.
Stay Ahead of the Curve
Want more original insights on the forces shaping modern investing? Subscribe to our newsletter for deep dives into sustainable finance, climate tech, and under-the-radar global trends.
Because in today’s markets, as it turns out—Who Cares Wins.