Switzerland is taking a significant step toward strengthening its climate disclosure requirements. The Swiss Federal Council has launched a consultation on proposed updates to its sustainability-related disclosure rules, aiming to broaden the scope of companies subject to mandatory climate reporting. The new proposal includes firms with at least 250 employees, CHF 25 million in total assets, or CHF 50 million in annual sales, expanding the coverage from the current threshold of companies with over 500 employees. 

Since January 2024, large Swiss companies and financial institutions have been required to disclose climate-related information, including greenhouse gas emissions, climate risks, and transition plans. These disclosures must follow the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). Under the new proposals, businesses will also be required to align their reporting with globally recognized frameworks, such as the International Sustainability Standards Board (ISSB) and the European Union’s Sustainability Reporting Standards. 

Additionally, companies will need to present detailed plans for achieving Switzerland’s net-zero target by 2050. Financial institutions will face added obligations, such as setting science-based interim emission reduction targets and aligning their financial flows with climate objectives. All climate disclosures must be submitted electronically in formats that are human- and machine-readable to ensure their accessibility on global platforms. 

These updates are part of Switzerland’s ongoing efforts to strengthen its carbon neutral strategy and align with international climate disclosure standards. The consultation period for the proposed updates will remain open until March 21, 2025, with enforcement set for January 1, 2026. This move follows similar trends in other countries like Canada, which is also pushing for mandatory climate disclosures from large companies. 

Sources:  

https://www.manifest.co.uk/switzerland-proposes-expanding-scope-of-mandatory-climate-reporting/ 

https://www.pwc.ch/en/insights/sustainability/federal-council-opens-consultation-of-ordinance-on-climate-disclosures.html 

https://www.complianceandrisks.com/blog/proposed-expansion-of-swiss-sustainability-reporting-obligations/ 

https://www.homburger.ch/en/insights/swiss-corporate-sustainability-reporting