Swiss companies or those affiliated with Swiss companies, beware! You might have to up your reporting game.
In June 2024, the Swiss government took a significant step towards enhancing corporate sustainability by launching a consultation on new proposals to expand sustainability reporting requirements for companies. This move aims to align Switzerland’s corporate governance rules with international standards, particularly the EU’s Corporate Sustainability Reporting Directive (CSRD).
What’s Changing?
Currently, Switzerland requires large companies with over 500 employees to report on their sustainability practices. The new proposals, however, are set to broaden this scope significantly. Under the proposed rules, companies with 250 employees, CHF 25 million (Swiss Francs, €26 million) in assets, and CHF 50 million (Swiss Francs, €52 million) in sales will also be required to report on their sustainability practices. This change will increase the number of reporting companies from 300 to a whopping 3,500!
Why the Change?
These updates follow the EU’s launch of the CSRD, which expanded the number of companies required to provide sustainability disclosures from around 12,000 to over 50,000 and introduced more detailed reporting requirements. The CSRD aims to cover large public-interest companies initially and will extend to companies with more than 250 employees or €40 million in revenue by 2025, and to listed SMEs by 2026.
Switzerland’s decision to align its regulations with the EU’s is driven by the close economic ties between the two regions. As the Swiss Federal Council noted, both large and small Swiss companies are affected by the new EU rules, either directly or indirectly.
Stricter Reporting Requirements
The new Swiss proposals are not just about expanding the number of companies that need to report; they also include stricter requirements. Companies will need to disclose risks related to the environment, human rights, and corruption, as well as the measures they are taking to address these issues. Additionally, there will be a requirement for external assurance of these reports, ensuring their accuracy and reliability.
Companies will have the option to use either the EU standard or another equivalent standard for their sustainability reports. This flexibility aims to ease the transition for companies already complying with international standards.
Support for Companies
Recognizing the potential costs of complying with these enhanced reporting requirements, the Swiss government is exploring ways to assist companies. This support could be crucial for companies needing to implement new systems and processes to meet the updated standards.
Looking Ahead
In its announcement, the Federal Council also mentioned the EU’s recent adoption of the Corporate Sustainability Due Diligence Directive (CSDDD), which sets out new obligations for large companies to address their negative impacts on human rights and the environment across their value chains. The Council plans to assess the impact of this new legislation on Swiss companies later this year and determine the next steps based on an external study.
Need a Hand?
If the upcoming criteria apply to your company, you might need to get a better grip on your energy consumption. That’s where we come in: we automate, visualize, and monitor all types of ESG data for real estate companies across Europe! Send us an email at info@iqbi.nl or give us a call at
+31 851 304 159; we’re always happy to chat.