Corporate Climate Disclosure Regulation
Switzerland plans to revise Corporate Climate Disclosure Regulation, aiming to increase mandatory climate disclosure requirements and reflect developments in EU regulatory policies.
The Swiss Corporate Climate Disclosure Regulation officially comes into effect in January 2024, and eligible large companies and financial institutions are required to disclose climate information.
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Revised Corporate Climate Disclosure Regulation
In November 2022, the Swiss Federal Council passed the Corporate Climate Disclosure Regulation, which clarified the requirements for companies to disclose non-financial information such as the environment issues. The regulation requires companies with at least 500 employees and total assets exceeding 20 million CHF or turnover exceeding 40 million CHF for two consecutive fiscal years to disclose climate information.
The Corporate Climate Disclosure Regulation are based on the Taskforce on Climate-related Financial Disclosures (TCFD) recommendations. In recent years, the IFRS S2 Climate Information Disclosure Standard issued by the International Sustainability Standards Board (ISSB) and the European Sustainability Reporting Standards (ESRS) issued by the European Union have become reference for regulatory policies in multiple European jurisdictions. In November 2024, the European Financial Reporting Advisory Group (EFRAG) released guidelines for implementing transition plans, providing a basis for companies to develop transition plans.
Based on the development of EU regulatory policies, the Swiss Federal Council releases a consultation document on the Corporate Climate Disclosure Regulation in December 2024. The revised contents of the regulation includes:
- Disclose climate information based on international standards: Companies should disclose climate information based on international standards or European Sustainability Reporting Standards, including quantitative information and its basic assumptions and methods.
- Develop a net zero roadmap: The Swiss Climate Protection Law requires achieving carbon neutrality by 2050, and companies need to develop a net zero roadmap that meets this goal.
- Disclose information in electronic format: Corporate climate information disclosure needs to comply with machine-readable electronic formats, such as eXtensible Business Reporting Language (XBRL).
The Swiss Federal Council plans to collect market opinions by March 2025 and implement the revised regulations in January 2026.
Reference:
Federal Council Opens Consultation on Amending the Ordinance on Climate Disclosures
