On September 22, 2023, the Swiss Federal Council announced its key guiding principles for amending the Swiss corporate sustainability reporting obligations. After previously signaling its ambition to align the Swiss reporting requirements with international standards, it does not come as a surprise that the Federal Council affirmed its intention to further align the Swiss reporting obligations with the European Union’s Corporate Sustainability Reporting Directive (CSRD), notably by extending the current rules’ scope of application and by introducing an audit requirement. A detailed draft of the proposed changes is anticipated by mid-2024.
Background and current regulatory framework
Large Swiss publicly listed companies and large Swiss regulated financial institutions (such as banks, securities firms, or insurance companies) are currently preparing their first statutory report on non-financial matters, covering the 2023 financial year. In this report, in-scope Swiss companies are required to report on material environmental matters (including CO2 goals), social and employment issues, as well as aspects related to the respect of human rights and combatting corruption. The non-financial matters report must be submitted for shareholder approval and published in the first half of 2024. In the coming years, these reporting obligations will intensify in relation to environmental issues, encompassing more detailed disclosures on climate matters in line with the recommendations of the Task Force on Climate-related Financial Disclosures, such as granular emissions data and climate goals. Climate disclosures will also soon require a machine-readable format. Furthermore, since 2023, Swiss companies are required to conduct supply chain due diligence with respect to child labor and conflict minerals and metals.
