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.
The proposed updates include expanding the requirements for companies to submit “net-zero roadmaps” in line with Switzerland’s Climate and Innovation Act, which targets net-zero greenhouse gas emissions by 2050. This will also apply to financial institutions, who will be required to set interim science-based emission reduction targets and develop strategies to align financial flows with climate goals.
In addition, the proposed updates call for businesses to comply with globally recognized frameworks, such as the International Sustainability Standards Board (ISSB) or the European Union’s European Sustainability Reporting Standards (ESRS), when reporting on climate-related factors. This will ensure harmonization with international and EU standards.
To facilitate publication on global platforms, the proposed updates also require climate disclosures to be provided in electronic formats that are both human- and machine-readable.
The current rules, which came into force in January 2024, apply to companies with over 500 employees. However, the proposed updates suggest expanding the scope to include firms with at least 250 employees, CHF 25 million (€26 million) in total assets, or CHF 50 million (€52 million) in sales.
The aim of these updates is to adapt the ordinance to the latest international developments and ensure that Swiss corporate climate disclosures remain robust and globally relevant. By aligning with global frameworks and EU standards, Switzerland is taking a proactive approach to enhancing transparency and accountability for companies while supporting its ambitious climate goals.
If implemented, these updates are expected to have a significant impact on the reporting practices of Swiss companies and financial institutions, ultimately contributing to the country’s efforts to achieve net-zero emissions by 2050. The consultation period provides an opportunity for stakeholders to provide feedback and shape the final regulations, which are set to be enforced from January 1, 2026.