According to a new law agreed by the Swiss government's Federal Council, large Swiss corporations and financial institutions will be compelled to provide information regarding their climate-related risks, impacts, and plans.
Under the newly enacted "Ordinance on Climate Disclosures," public corporations, banks, and insurers will be required to submit reports based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
The requirements will apply to enterprises with 500 or more employees, total assets of at least CHF 20 million (USD$21 million), or revenues exceeding CHF 40 million.
Reporting on climate-related risks and the impact of a company's operations on climate change are required disclosures under the new regulation. Reporting requirements also include disclosures of all direct and indirect greenhouse gas (GHG) emissions, as well as reduction objectives and information on how corporations intend to achieve these goals.
To allow corporations sufficient time to execute the new disclosure obligations, the Council deferred the effective date of the new rules by one year, from its initial recommendation of January 2023 to January 2024, with reporting beginning in 2025.
The Federal Council stated in a statement announcing the passage of the new regulations:
"Transparency on the part of large firms regarding the climate impact of their actions is essential for markets to function properly and for climate sustainability in the financial sector. Until now, Switzerland lacked similar and transparent climate-related disclosures. With the new law, the Federal Council seeks to make this practicable."