Switzerland Introduces Mandated Climate Reporting

The Swiss authorities announced that major companies will be required to report publicly on climate issues in 2024 (on 2023 financial year events), utilizing TCFD (Taskforce on Climate-related Financial Disclosures)-aligned disclosures. Thus the country joins the ranks of international players boosting sustainability reporting requirements for businesses.

According to the Swiss Federal Council, the mandatory disclosure will embrace all public companies, banks and insurance companies with 500 or more employees, more than CHF 20 million in total assets or more than CHF 40 million in turnover.

Reporting will include not only issues related to financial risk facing companies as a result of climate change, but also the impact of company activities on climate and the environment.

The Swiss decision comes amidst moves by several jurisdictions to include climate and other ESG factors in the disclosures provided by businesses. The move also brings Switzerland in line with key jurisdictions’ mandated sustainability reporting rules, including European Union and the UK.

Interesting that in May of this year, US president signed an executive order calling on the US financial regulators to consider plans to improve climate-related disclosures, and to incorporate climate-related financial risk into regulatory and supervisory practices.