7.1 Overview and Current Framework for Climate Transition Plans in Switzerland
A Climate Transition Plan (CTP) is a strategic roadmap designed to help companies adapt their business models and practices to meet the demands of a low-carbon and sustainable economy. It outlines specific actions, targets, and timelines for reducing greenhouse gas emissions and adjusting to a changing climate. Such a plan aims to minimize climate-related risks while also seizing new business opportunities that arise from the transition to a sustainable economy. By disclosing their transition strategies, companies promote transparency and build trust with investors, clients, and other stakeholders. In Swiss law, the requirements for climate transition plans are only minimally regulated compared to EU legislation.
In line with the Paris Agreement, the Swiss Federal Council adopted Switzerland’s long-term climate strategy in January 2021. The starting point of this strategy is the goal of achieving net-zero emissions by 2050. The Climate and Innovation Act, which was approved by the Swiss electorate on June 18, 2023, and will come into force on January 1, 2025, includes specific targets and obligations for the federal government and cantons to achieve this climate goal.1 The Climate Act also requires companies to achieve net-zero direct and indirect emissions (Scope 1 and 2) by 2050 and states that companies and industries can develop roadmaps to achieve this goal. Furthermore, at the end of 2022, the Federal Council adopted the implementing Ordinance on Climate Reporting (“Climate Ordinance”) to complement the non-financial reporting provisions in the Swiss Code of Obligations. It was enacted on January 1, 2024, with a one-year transition period. It means affected public interest entities are required to develop and publish a “transition plan” that is aligned with Switzerland’s climate targets.