During its meeting on 23 November 2022, the Federal Council adopted the implementing ordinance on climate disclosures for large Swiss companies and brought it into force as of 1 January 2024.
Large companies’ transparency on the climate impact of their activities is crucial for the markets to function well and for climate sustainability in the financial sector. To date, Switzerland has lacked transparent and comparable climate-related disclosures. The Federal Council intends to make that possible with the new ordinance, which provides for the binding implementation of the Task Force on Climate-related Financial Disclosures (TCFD) recommendations by large Swiss companies.
Public companies, banks and insurance companies with 500 or more employees and at least CHF 20 million in total assets or more than CHF 40 million in turnover are obliged to report publicly on climate issues. Public reporting involves disclosures not only on the financial risk that a company incurs due to climate-related activities but also on the impact of the company’s business activities on the climate. In addition, the company has to describe its reduction targets for its direct and indirect greenhouse gas emissions and how it plans to implement them.
Stakeholders widely supported the draft ordinance during the consultation that ran from March to July 2022. To give the companies concerned sufficient time for implementation, the Federal Council has decided to bring the ordinance into force as of 1 January 2024.