The Federal Council of Switzerland has launched a consultation paper for proposed updates on the Ordinance on Climate Disclosures. The proposed update has many important initiatives to align with international initiatives and Switzerland's climate targets, including the submission of detailed plans for businesses to achieve net-zero emissions by 2050. 

Private markets firms, asset managers, and impact investors with interests in companies operating in Switzerland should pay close attention to the ongoing consultation regarding the Ordinance on Climate Disclosures, as they may soon be required to comply with new climate disclosure obligations aimed at achieving net-zero emissions.

Let’s discuss the updates on climate-related disclosures for companies operating in Switzerland in detail. 

About the Swiss Ordinance on Climate Disclosures

The Swiss Ordinance on Climate Disclosures is a regulatory framework with a set of rules that mandate specific climate-related reporting requirements for large companies operating in Switzerland, including those in the financial sector. The framework originally came into force in January 2024. Since then, companies have been reporting climate disclosures, including factors like greenhouse gas emissions, climate risks, and transition plans developed by the Task Force on Climate-related Financial Disclosures (TCFD). However, with the TCFD disbanded and its recommendations incorporated into the ISSB framework, the Council's proposals aim to adopt these modifications into national rules.

Key updates on Ordinance on Climate Disclosures

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  Net-Zero roadmaps: Companies will be required to submit detailed plans for meeting Switzerland's net-zero goal by 2050. This involves additional responsibilities for financial institutions, such as interim science-based carbon reduction targets and measures for coordinating financial flows with climate goals.

• 
  More reporting standards: The scope of reporting standards is increased on proposed updates, and businesses are suggested to meet their reporting requirements by following internationally recognized frameworks such as the International Sustainability Standards Board (ISSB) or the European Union's European Sustainability Reporting Standards (ESRS).

• 
  Expanded scope of reporting: With more standards, the proposed updates will expand the scope of mandatory reporting requirements to include businesses with at least 250 employees or those that meet certain financial benchmarks (CHF 25 million in total assets or CHF 50 million in sales). The former threshold was 500 employees.

• 
  Digitized format: All climate disclosures must be made available in an electronic format that is both human- and machine-readable to improve reporting processes and guarantee that Swiss enterprises successfully disseminate their data on international platforms. 

Next steps

The consultation period for the new amendments will be open for proposals from investors, companies, and stakeholders until March 21, 2025, with amendments taking effect from January 2026 accordingly. 

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