Switzerland Pauses Climate Disclosure Ordinance Revision Pending EU Omnibus Outcome

The Swiss Federal Council has decided to pause the revision of its Ordinance on Climate Disclosures for companies, delaying new requirements including mandatory net-zero roadmaps, while it awaits the outcome of the EU's Omnibus sustainability reporting simplification process. The pause aims to ensure regulatory alignment between Swiss requirements and the revised EU framework.

Switzerland passed its initial Ordinance on Climate Disclosures in 2022, mandating climate reporting by large companies and financial institutions starting in 2025, covering GHG emissions, climate-related risks and transition plans based on the TCFD framework. A December 2024 consultation proposed revisions to align the ordinance with ISSB and CSRD standards and introduced a requirement for companies to prepare 'net-zero roadmaps' consistent with Switzerland's Climate and Innovation Act commitment to net-zero GHG emissions by 2050. The consultation results indicated broad welcome for the revisions, but the EU's Omnibus process, which began concurrently, created uncertainty about the direction of European regulatory requirements.

Switzerland's decision to pause reflects the practical reality that Swiss companies — particularly those with significant EU operations or that are subsidiaries of EU-headquartered groups — need to manage reporting requirements across both jurisdictions. A revision of the Swiss ordinance that diverges significantly from the post-Omnibus EU framework could create double compliance burdens. The Federal Council has instructed the Federal Department of Justice and Police to evaluate variants for amending sustainable corporate governance legislation to 'guarantee fair trading conditions for Swiss companies in international comparison.'

The Council has stated it will decide on next steps as soon as the EU finalises its Omnibus amendments, and no later than early 2026. The project on companies' climate disclosures will be paused until approval of the amendment bill, but no later than January 1, 2027. The Swiss pause underscores a broader pattern in which non-EU jurisdictions closely calibrate their sustainability reporting rules to EU developments, limiting regulatory divergence for internationally active companies. For multinational companies with Swiss and Indian operations, the delay provides temporary relief from additional cross-border compliance complexity.

Key figure — January 1, 2027 — latest date for Swiss climate disclosure project pause to end