Switzerland to Strengthen Corporate Climate Disclosure with Mandatory Net Zero Plans

The Swiss Federal Council has introduced proposals to enhance corporate climate disclosure, mandating businesses to prepare detailed net-zero roadmaps in alignment with Switzerland's goal of achieving net-zero greenhouse gas emissions by 2050 under the Climate and Innovation Act. The new rules aim to bring Swiss regulations in line with international and European standards, with implementation planned for January 1, 2026.

The proposed changes require companies to outline science-based strategies for reducing emissions, including interim targets for financial institutions. Reports must adhere to recognized global frameworks, such as the International Sustainability Standards Board (ISSB) or the European Sustainability Reporting Standards (ESRS). Additionally, businesses must present disclosures in both human- and machine-readable digital formats, facilitating broader access and publication on international platforms.

These updates build on Switzerland’s existing Ordinance on Climate Disclosures, effective since January 2024, which requires large companies to report greenhouse gas emissions, climate risks, and transition plans based on the Task Force on Climate-related Financial Disclosures (TCFD). The new rules will incorporate changes reflecting the integration of TCFD recommendations into the ISSB framework.

The Federal Council has also proposed expanding the scope of businesses subject to mandatory reporting. The threshold will be reduced to companies with at least 250 employees, CHF 25 million (€26 million) in total assets, or CHF 50 million (€52 million) in annual sales, compared to the current 500-employee limit.

“The aim of the bill is to adapt the ordinance to the latest international developments,” the Council stated, emphasizing the importance of harmonizing Swiss regulations with global and EU standards.

The consultation on the proposals will remain open until March 21, 2025. Once finalized, the updated regulations are expected to significantly enhance transparency, accountability, and corporate contributions to Switzerland’s ambitious climate objectives.