The Federal Council wants to postpone the implementation of the Ordinance on Climate Reporting by Companies. This concerns the amendment of the provisions on sustainability reporting and regulatory developments in the EU until it is clear.

The Federal Council has decided to pause the revision of the Ordinance on Corporate Climate Reporting for the time being. In the consultation, a majority welcomed the content of the revision. However, on 21 March 2025, the Federal Council issued a mandate to work out possible options for a pragmatic change to the provisions on sustainability reporting.

Minimum requirements to ensure implementation of climate targets

The regulation on reporting on climate issues has been in force in Switzerland since January 1, 2024. The Federal Council had instructed the Federal Department of Finance (FDF) to review these rules within three years with regard to international comparability. In addition, the Federal Council had instructed the FDF to develop minimum requirements to ensure the implementation of the climate targets of financial companies in accordance with the Climate Protection Act.

Regulation to be adapted to the latest international developments

Based on the results of these assignments, the Federal Council proposed in the consultation proposal of 6 December 2024 to adapt the ordinance to the latest international developments in the area of standardization of reporting and to define minimum requirements for roadmaps for companies in the financial sector. These proposals were welcomed by a majority in the consultation. However, it was widely suggested that the implementation of the amendment to the ordinance should be delayed until the Federal Council had decided on the ongoing revision of the overarching legislation in the Code of Obligations on sustainability reporting.

Legislation on sustainable corporate governance to be adapted

On 21 March 2025, the Federal Council took note of the results of the consultation on this amendment to the Code of Obligations and instructed the Federal Department of Justice and Police to prepare possible options for a pragmatic amendment to the current legislation on sustainable corporate governance, including the provisions on sustainability reporting in the Code of Obligations.   

The Federal Council intends to take a decision on the further procedure as soon as the European Union has taken a decision on its announced simplifications, but no later than spring 2026. It has therefore decided to pause the project on corporate climate reporting until it has taken a decision on the proposal to amend the Code of Obligations, but no later than 1 January 2027.