Switzerland proposes expanding scope of mandatory climate reporting
December 13, 2024
Switzerland has proposed broadening the scope of companies subject to mandatory climate reporting.
The Swiss Federal Council has launched a consultation on proposed updates to its sustainability-related disclosure rules, under which it has proposed to expand the scope to include firms with at least 250 employees, CHF 25 million in total assets or CHF 50 million in annual sales.
Since the Ordinance on Climate Disclosures took effect in January 2024, large Swiss companies and financial institutions have been required to report on climate-related factors. The current rules apply to companies with more than 500 employees.
In-scope companies must disclose greenhouse gas emissions, climate risks and transition plans in line with the recommendations of the Task Force on Climate-related Financial Disclosures.
The council’s proposals also mandate that businesses align their reporting with internationally recognised frameworks like the International Sustainability Standards Board or the European Union’s Sustainability Reporting Standards.
Climate disclosures must be submitted in electronic formats that are both human- and machine-readable, enabling publication on global platforms.
Companies will also need to present detailed plans for achieving Switzerland’s net-zero target by 2050. Financial institutions face additional requirements, including setting interim science-based emission reduction targets and strategies to align financial flows with climate objectives.
The proposals seek to strengthen Switzerland’s progress towards its net-zero target and adapt the ordinance to the latest international developments to ensure that the country’s corporate climate disclosures remain robust and globally relevant.
The consultation on the updates will remain open until March 21, 2025 with plans to enforce the amendments by January 1, 2026.
Switzerland is the latest country to expand mandatory climate reporting as Canada also announced plans to set mandatory climate-related disclosures for large federally incorporate private companies.
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Last Updated: 13 December 2024