Switzerland proposes new sustainability reporting, due diligence law

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🗞️ Driving the news: Switzerland has proposed a new Federal Act on Sustainable Corporate Governance, introducing updated sustainability reporting and due diligence requirements for large companies to align more closely with European regulations

🔭 The context: The proposal would bring Swiss rules closer to the EU’s Corporate Sustainability Reporting Directive and Corporate Sustainability Due Diligence Directive
• Sustainability reporting would apply to companies with at least 1,000 employees and CHF450 million in revenue, while due diligence obligations would target only the largest firms with 5,000 employees and CHF1.5 billion in revenue

🌍 Why it matters for the planet: Stronger corporate sustainability disclosure and supply chain oversight can improve transparency around environmental impacts, including emissions, resource use and human rights risks
• Aligning national frameworks with EU standards could help create more consistent climate and sustainability accountability across Europe

⏭️ What’s next: If adopted, the law would require companies to report according to the European Sustainability Reporting Standards (ESRS) or an equivalent system
• Companies subject to due diligence rules would also need to identify and mitigate environmental and human-rights risks across their operations and supply chains

💬 One quote: The new proposal aims to align Swiss corporate sustainability obligations with European regulatory standards while focusing on the largest companies

📈 One stat: Under the proposal, about 100 companies would be required to report on sustainability, while roughly 30 companies would fall under the new due diligence rules

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