The Swiss government announced the launch of a consultation on new proposals aimed at aligning its sustainability-related corporate governance rules with international systems, particularly the EU’s CSRD, including a proposal to expand sustainability reporting requirements for companies, and to significantly expand the number of companies covered by the mandatory reporting requirements.
The new Swiss Federal Council proposals follow the launch in the EU of the Corporate Sustainability Reporting Directive (CSRD), a major update to the EU’s prior Non-Financial Reporting Directive (NFRD), significantly expanding the number of companies required to provide sustainability disclosures to over 50,000 from around 12,000, and introducing more detailed reporting requirements on company impacts on the environment, human rights and social standards and sustainability-related risk.
The CSRD took effect from the beginning of 2024 for large public-interest companies with over 500 employees, followed by companies with more than 250 employees or €40 million in revenue in 2025, and listed SMEs in 2026.
In its statement announcing the new consultation, the Swiss Federal Council said that it has “opted for internationally coordinated legislation,” noting that, given the close economic ties with the EU, “both large and small Swiss companies are affected by the new EU rules – directly or indirectly.”
Switzerland currently requires mandatory sustainability reporting for large companies, such as those with more than 500 employees. Similar to the CSRD thresholds, the new Swiss proposal would introduce sustainability reporting requirements to companies with 250 employees, CHF 25 million (€26 million) in total assets and CHF 50 million (€52 million) in sales. According to the Council, the move would increase the number of reporting companies to around 3,500 from 300 currently.
The Council also said that the reporting requirements would be stricter, with disclosures covering risks in the areas of environment, human rights and corruption, as well as on the measures taken against them, and a requirement for external assurance. The Council also said that it is proposing that companies be able to choose to either use the EU standard, or another equivalent standard for sustainability reporting.
Noting the costs of complying with the sustainability reporting requirements, the Council said that it is examining how the government can provide assistance to companies in implementing the new rules.
In its announcement, the Federal Council also noted the recent adoption by the EU of the new Corporate Sustainability Due Diligence Directive (CSDDD), setting out new obligations for large companies to address their negative impacts on human rights and the environment across their value chains. The Council said that it will assess the effects of the new legislation on Swiss companies with an external study later this year, and then determine next steps.