integrating measures to tackle climate change. Switzerland contributes to the developed countries’ goal of jointly mobilising USD 100 billion a year by 2020 in public and private funds worldwide to support developing countries. It thereby supports efforts to both mitigate climate change and adapt to its impact. Switzerland is leading the way in research into the causes and effects of climate change. In this area, it also relies on its globally recognised Committee on Polar and High Altitude Research. In all relevant bodies – in particular within the UN and OSCE, as well as through its observer status in the Arctic Council – Switzerland works to ensure a better understanding of climate change and its impacts on security. Water is a central element in this respect. Because demand continues to rise while the quantity of water remains limited and pollution is increasing, water must be managed sustainably and allocated fairly between neighbouring countries. As part of its Blue Peace Initiative, Switzerland works to ensure that water is used as a driver of cooperation, peace and sustainable development in low and middle income countries. Sustainable finance: A sustainable Swiss financial centre offers opportunities in innovation and competitiveness. It contributes to the achievement of Switzerland’s sustainability goals under the 2030 Agenda and the Paris Agreement. Sustainable financial services integrate environmental, social and governance (ESG) criteria into business or investment decisions. Transparency and voluntary disclosure are encouraged, so that customers and investors are given clear information and the opportunity to make informed decisions. The primacy of long-term market-based approaches and the subsidiarity of government action are fundamental principles. At the same time, Switzerland actively participates in the work of international financial bodies. The federal government also promotes responsible business conduct in all economic sectors. This makes an important contribution to sustainable development and to solving societal challenges. With this objective in mind, the Federal Council has adopted the action plans on corporate social responsibility (CSR) and on business and human rights for the 2020–23 legislative period. In doing so, it advocates internationally agreed guidelines and supports companies in sector-specific implementation. External energy policy: Besides water, other key factors in energy security are electricity trading and the transit of oil and gas through the EU. The conclusion of an electricity agreement with the EU allows Switzerland to participate fully in the European internal electricity market. Relations with the EU take priority in terms of Switzerland’s external energy policy. Switzerland is also involved in the International Energy Agency, where it campaigns for sustainability, security and investment protection. At global level, Switzerland advocates an end to fossil fuel subsidies. 16 Thematic focus areas In disaster risk reduction Switzerland is strengthening its partnership with developing countries and regional organisations through information sharing, technology transfer and the development of institutional capacities to mitigate risk. It has extensive experience of risk management in relation to natural disasters, particularly in mountain regions. It is therefore improving the way risks are analysed, helping to mitigate losses and damage, helping to build the resilience of the populations affected and promoting sustainable reconstruction in the aftermath of disasters. It increasingly uses modern technologies in all these activities. Health foreign policy: Regardless of crises and disasters, everyone has the right to the best possible physical and mental health. Equal access to appropriate, high-quality healthcare for all is therefore a priority. Switzerland’s health foreign policy focuses on improving the protection of public health and enhancing health systems in general. Within specialised international organisations and through direct and indirect cooperation with other countries, Switzerland is involved in seeking solutions to global health challenges. Switzerland’s cultural foreign policy centres on three priorities: cultural participation, social cooperation, and creation and innovation. It places a particular focus on digitalisation. It works to promote cultural diversity and has launched a number of international cultural initiatives. The Pro Helvetia foundation makes an important contribution in this area, with some 4,500 art and cultural projects in over 100 countries. It is set to open a new office in Latin America in 2021, which will add to its existing network that covers Southern Africa, South Asia, China, Russia, the Arab world and the cities of Paris, New York and San Francisco. Importance of cities: More than half the world’s population currently lives in cities and, according to the UN, this is set to increase to two thirds by 2050. Cities are directly affected by global challenges, such as climate change, water scarcity, food security, migration and epidemics. To better respond to such challenges, cities are increasingly joining international networks. This gives them more weight as foreign policy actors. There are already over 200 city networks, such as the C40 Cities Climate Leadership Group, an association of more than 90 cities which represents a quarter of the global economy and has committed to implement the Paris Agreement. At international level, Switzerland supports UN-Habitat, the United Nations Human Settlements Programme, and funds its liaison office in Geneva. It promotes integrated urban development, which improves urban mobility, energy supply and resilience to natural disasters. Swiss cities are tourist destinations and also host foreign policy forums, and therefore play an important role in foreign policy.