Switzerland Adopts Law Requiring Mandatory Climate Reporting for Public Companies, Banks
Large Swiss companies and financial institutions will be required to publicly disclose information on their climate-related risks, impacts and plans, according to new legislation passed today by the government’s Federal Council.
Under the newly adopted “Ordinance on Climate Disclosures,” public companies, banks and insurance companies will be required to provide reporting based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
The rules will apply to companies with 500 or more employees, at least CHF 20 million (USD$21 million) in total assets or more than CHF 40 million in revenue.
Mandated disclosures under the new ordinance include reporting on climate-related risks, as well as on the impact of company activities on climate change. Reporting obligations also include disclosures of all direct and indirect greenhouse gas (GHG) emissions, as well as emissions reduction targets and on how the companies plan to implement these goals.
In order to provide companies with sufficient time to implement the new disclosure requirements, the Council pushed off enforcement of the new rules by a year from its initial proposal to January 2024, with reporting beginning in 2025.
In a statement announcing the adoption of the new rules, the Federal Council said:
“Large companies’ transparency on the climate impact of their activities is a key aspect for the markets to function well and for climate sustainability in the financial sector. To date, Switzerland has lacked clear and comparable climate-related disclosures. The Federal Council intends to make that possible with the new ordinance.”