- Expanded Requirements for Companies: Proposals mandate “net-zero roadmaps” for businesses, aligning with Switzerland’s Climate and Innovation Act targeting net-zero GHG emissions by 2050.
- Alignment with International Standards: Climate reporting must comply with globally recognized frameworks, such as ISSB or ESRS, ensuring harmonization with international and EU standards.
- Streamlined Digital Reporting: Reports must be in human- and machine-readable formats, enabling publication on international platforms.
The Swiss Federal Council has launched a consultation on proposed updates to its sustainability-related disclosure rules, aimed at aligning with international developments and Switzerland’s climate targets. The consultation, initiated during the Council’s meeting on December 6, 2024, will remain open until March 21, 2025, with plans to enforce amendments by January 1, 2026.
Key updates include:
- Net-Zero Roadmaps: Companies will be required to submit detailed plans for achieving Switzerland’s net-zero target by 2050. This includes additional obligations for financial institutions, such as interim science-based emission reduction targets and strategies to align financial flows with climate goals.
- Expanded Reporting Standards: Businesses can fulfill reporting obligations by adhering to internationally recognized frameworks like the International Sustainability Standards Board (ISSB) or the European Union’s European Sustainability Reporting Standards (ESRS).
- Digital Reporting Format: Climate disclosures must be provided in electronic formats that are both human- and machine-readable, facilitating publication on global platforms.
Swiss large companies and financial institutions have been reporting climate-related factors since the Ordinance on Climate Disclosures came into force in January 2024. These factors include greenhouse gas emissions, climate risks, and transition plans based on the Task Force on Climate-related Financial Disclosures (TCFD). However, with the dissolution of the TCFD and its recommendations incorporated into the ISSB framework, the Council’s proposals seek to integrate these updates into national regulations.
The proposals also suggest expanding the scope of companies covered by mandatory reporting. Currently, the rules apply to companies with over 500 employees; the new threshold would include firms with at least 250 employees, CHF 25 million (€26 million) in total assets, or CHF 50 million (€52 million) in sales.
Aiming for Harmonization:
“The aim of the bill is to adapt the ordinance to the latest international developments,” the Federal Council stated. By aligning with global frameworks and EU standards, Switzerland ensures that its corporate climate disclosures remain robust and globally relevant.
Looking Ahead:
The new rules, once finalized, are expected to significantly enhance transparency and accountability for companies while supporting Switzerland’s ambitious climate goals.
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