4.1 Overview and Current Framework in Switzerland
To help issuers comply with the requirements for due diligence and reporting on non-financial matters, the following section summarizes the current reporting and due diligence standards. An outlook on the proposed changes is also provided.
On January 1, 2022, new statutory provisions came into force that introduced reporting on non-financial matters and supply chain due diligence obligations, as well as specific reporting obligations for the prevention of child labor and the ethical sourcing of conflict minerals.
These provisions are part of the Swiss Code of Obligations (CO). They are modeled on the EU Non-Financial Reporting Directive (NFRD), which has been replaced by the EU Corporate Sustainability Reporting Directive (CSRD), as well as on the EU Conflict Minerals Regulation and the Dutch Child Labor Due Diligence Act. The new supply chain due diligence and reporting obligations are also subject to the Ordinance on Due Diligence and Transparency in Relation to Minerals and Metals from Conflict-Affected Areas and Child Labor (or the Swiss Conflict Minerals and Child Labor Ordinance for short) of December 3, 2021 (DDTrO). Climate-related reporting in accordance with Art. 963a-c CO was elaborated on by the Ordinance on Climate Reporting of November 23, 2022, which came into force in 2024. Reporting under these standards has been mandatory since 2024. The policies and due diligence obligations underlying the reports published in 2024 had to be defined and enacted/implemented by January 1, 2023.
On June 26, 2024, the Federal Council initiated a consultation on revising the regulations regarding sustainability reporting for Swiss companies. The proposed amendment to Art. 964a - 964c CO (the preliminary draft) aims to align current Swiss regulations on non-financial reporting with the European CSRD. Approximately six months later, the Federal Council initiated a consultation on the revision of the Ordinance on Climate Reporting. Specifically, the proposed amendment to the Ordinance on Climate Reporting seeks to replace the TCFD recommendations with another internationally recognized standard or the sustainability reporting standard used in the European Union, i.e., the European Sustainability Reporting Standards (ESRS). The revised Ordinance on Climate Disclosures would also set minimum requirements for net-zero roadmaps.
Following the entry into force of the EU Directive on Corporate Sustainability Due Diligence (CSDDD), the Federal Council reviewed a study commissioned by the Federal Departments of Justice and Police (EJPD) and Economic Affairs, Education and Research (WBF) to determine the next step for the Swiss due diligence and reporting legislation. This study assessed the impact of the CSDDD on Swiss companies. The revision and strengthening of the Swiss due diligence and reporting obligation are also the aims of the second responsible business initiative, which was launched in January 2025. The Federal Council announced a counterproposal for this initiative in September 2025.
In light of the significant changes announced by the European Commission on February 26, 2025 as part of its omnibus legislation on sustainability rules (the Omnibus Package), the Federal Council decided on March 21, 2025 and on June 25, 2025, respectively, to pause the revisions to the CO and the Ordinance on Climate Reporting until the EU finalizes its planned simplification of its ESG legislation, but no longer than until spring 2026 and January 2027, respectively.