Switzerland proposes sustainability reporting aligned with EU frameworks
The Swiss Federal Council has issued proposals for new sustainability reporting and due diligence requirements, closely aligned with the EU’s Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD).
Under the proposals, Swiss entities would be required to publish a sustainability report if they have more than 1,000 employees and global net turnover exceeding CHF 450 million. Non-Swiss entities would also fall within scope where they generate more than CHF 450 million in turnover in Switzerland and maintain a subsidiary or branch in the country.
The framework would require the use of the European Sustainability Reporting Standards (ESRS), or an equivalent standard that incorporates the principle of double materiality. This could include, for example, reporting based on standards from the International Sustainability Standards Board, supplemented with the Global Reporting Initiative to meet double materiality requirements, provided overall equivalence to ESRS is achieved.
In addition, due diligence disclosures would be required for larger entities, including Swiss companies with more than 5,000 employees and global turnover above CHF 1.5 billion. Additional thresholds would capture entities with significant franchising or licensing activity in Switzerland. Comparable provisions would apply to non-Swiss entities meeting similar turnover criteria within the Swiss market.
The Swiss government notes that aligning with the CSRD and CSDDD, which were recently finalised through the EU’s omnibus package, should have limited additional impact on Swiss companies, as many affected are already subject to EU third-country requirements. By embedding these frameworks directly into Swiss law, authorities also gain the ability to enforce compliance domestically. Adopting EU-aligned reporting in this area also supports growing convergence and data interoperability.
Speaking of which, the expectation is that this reporting will be digital. The proposed legislation states that “the provision requires companies subject to reporting obligations to use a uniform electronic reporting format for information on sustainability aspects. To ensure the comparability of sustainability reports, an electronic reporting format based on an internationally recognised standard must be used (specifically, the one used by EU member states). The Federal Council shall issue more detailed regulations on this matter in an ordinance, guided by internationally recognized standards. One possible option would be, for example, the European Single Electronic Format (ESEF) of the European Securities and Markets Authority.”
Read more and comment by 9 July here (in German).
