Switzerland Proposes New Climate Reporting Rules to Align with Net-Zero by 2050

The Swiss government has launched a consultation on new proposals to update its sustainability-related disclosure requirements for companies, introducing stricter climate reporting rules and alignment with international standards. The amendments aim to bring corporate reporting in line with Switzerland’s net-zero emissions target by 2050.

The proposed changes would revise the Ordinance on Climate Disclosures, which came into effect earlier this year. Under the current rules, large Swiss companies and financial institutions must disclose climate-related risks, greenhouse gas emissions, and transition plans based on recommendations from the Task Force on Climate-related Financial Disclosures (TCFD). Initial reporting under this framework is scheduled to begin in 2025.

The updated proposals reflect international developments, particularly the adoption of the International Sustainability Standards Board’s (ISSB) climate-related reporting framework and the EU’s European Sustainability Reporting Standards (ESRS). Companies would be permitted to meet their climate disclosure obligations by adhering to either of these internationally recognized standards.

A key feature of the new proposals is the requirement for companies to provide detailed “net-zero roadmaps,” outlining plans to align their operations with Switzerland’s climate targets. This includes sector-specific, science-based interim targets and strategies for achieving net-zero greenhouse gas emissions by 2050, as mandated by the recently passed Climate and Innovation Act. Companies in the financial sector would also be required to demonstrate how their financial flows are facilitating the net-zero transition, including investments in climate-friendly technologies.

Additionally, the new rules would require companies to provide climate reports in electronic formats that are both human- and machine-readable, ensuring compatibility with international reporting platforms.

The proposals also aim to expand the scope of companies subject to mandatory sustainability reporting. The threshold would drop from companies 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. This aligns Switzerland’s corporate governance framework more closely with the EU’s Corporate Sustainability Reporting Directive (CSRD).

The consultation period for the proposed amendments will remain open until March 21, 2025. If approved, the updated regulations are expected to come into force at the beginning of 2026, further strengthening Switzerland’s commitment to climate transparency and sustainability.