Switzerland’s Federated Council has opted to adopt an ordinance on mandatory climate disclosures for large Swiss companies, which will come into force from 1 January 2024.
The Federal Council is looking to address Switzerland’s “lack [of] clear and comparable” climate-related disclosures and will introduce a “binding implementation” of the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) on large Swiss companies.
Swiss public companies, banks and insurance companies with 500 or more employees and at least CHF 20 million in total assets or more than CHF 40 million in turnover will be obliged to report publicly on climate issues.
This public reporting will entail disclosures not only on the financial risk that a company incurs as a result of climate-related activities, but also on the impact of the company’s business activities on the climate.
Additionally, the company will have to describe the reduction targets it has set for its direct and indirect GHG emissions, as well as how it intends to implement them.
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