November 28, 2022
Federal Council brings ordinance on mandatory climate disclosures for large companies into force as of 1 January 2024

The Federal Council has adopted the implementing ordinance on climate disclosures for large Swiss companies which will come into force as of 1 January 2024.

Openness and clarity from large companies' activities on their climate impact is fundamental for markets to function well and for climate sustainability in the financial sector.  As of today, Switzerland has regrettably lacked clear and comparable climate-related disclosures. The Federal Council intends to ensure this is no longer the case with the new ordinance providing the binding implementation of the Task Force on Climate-related Financial Disclosures’ (TCFD) recommendations by large Swiss companies.

Public reporting relates to disclosures not only on the financial risk that a company incurs as a result of climate-related activities, but also on the impact of the company's business activities on the climate. Currently, public companies, banks and insurance companies of 500 or more employees and at least CHF 20 million in total assets or more than CHF 40 million in turnover are compelled to report publicly on climate issues. Moreover, companies will have to describe their reduction targets relating to both direct and indirect greenhouse gas emissions, as well as how they see implementation.

From the consultation that ran from March to July 2022, there was wide support from stakeholders regarding the draft ordinance. In order to give companies concerned sufficient implementation time, the Federal Council has decided to bring it into force as of 1 January 2024.

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Source: The Federal Council