The Swiss government has announced the launch of a consultation on new proposals aimed at updating the country’s sustainability disclosure rules for companies. These proposals include a requirement for companies to present plans for aligning with Switzerland’s net zero target by 2050, as well as ensuring climate-related reporting adheres to standards such as the ISSB or the EU’s ESRS.

The proposed changes would revise Switzerland’s existing Ordinance on Climate Disclosures, which came into effect this year, with large companies set to begin their climate reporting in 2025. Under the current law, large Swiss companies and financial institutions are required to report on climate-related factors such as greenhouse gas emissions, climate risks and impacts, as well as targets and transition plans, in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

Earlier this year, the Swiss Federal Council introduced proposals aimed at aligning the country’s corporate governance rules for sustainability with international frameworks, particularly the EU’s CSRD. The proposals also seek to expand the scope of mandatory sustainability reporting, lowering the threshold for covered companies from those with over 500 employees to those with 250 employees, CHF 25 million (€26 million) in total assets, and CHF 50 million (€52 million) in sales.

Since the passage of the Ordinance on Climate Disclosures, the TCFD recommendations have been broadly integrated into the IFRS Foundation’s International Sustainability Standard Board’s (ISSB) climate-related disclosure standard. Additionally, the ISSB has taken over the responsibility for monitoring the progress of companies’ climate-related disclosures from the TCFD.

Under the new proposals, which the Council stated aim to address international developments, companies would be able to meet their climate reporting obligations by aligning their disclosures with internationally recognized standards, such as the ISSB or the CSRD’s European Sustainability Reporting Standards (ESRS).

The proposals would also introduce a requirement for companies to submit “net-zero roadmaps,” outlining plans to achieve the goals of Switzerland’s recently passed Climate and Innovation Act, which commits to reaching net-zero greenhouse gas (GHG) emissions by 2050.

This roadmap requirement includes additional obligations for financial sector companies, calling for plans to align financial flows to support the net-zero target, including sector-specific, science-based interim emissions reduction targets and the expansion of climate-friendly technologies.

Furthermore, the proposal mandates that companies submit their climate reporting in an electronic format that is both human- and machine-readable, facilitating publication on international platforms.

The consultation on these proposals will remain open until March 21, 2025, with the planned amendments set to take effect at the beginning of 2026.

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