4.1 Overview and Current Framework in Switzerland

To help issuers comply with the new requirements for 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 They are modeled on the EU Non-Financial Reporting Directive (NFRD), which has been replaced by the EU Corporate Sustainability Reporting Directive (CSRD), as well as on the EU Conflict Minerals Regulation and the Dutch Child Labor Due Diligence Act.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. The consultation process will run until October 31, 2024. The Federal Council will determine the date when the new provisions will come into force. Companies will then have two years to implement the new regulations.