SWITZERLAND Law and Practice Contributed by: Liburn Mehmetaj, Roxane Allot and Andreas Hösli, Walder Wyss Ltd
The updated NAP (2024-2027) builds on pre - vious efforts to implement the three pillars underpinning the UNGP (state duty to protect, corporate responsibility to respect, and access to remedy), and introduces ten new measures focusing on emerging areas including, among other things: • digital spaces and new technologies; • human rights due diligence in relation to the energy transition; • investment, financing and consultancy ser - vices; • sports and human rights; and • handling of complaints from human rights defenders. However, apart from the specific issue of a fair energy transition, the updated NAP is largely silent regarding human rights-related impacts in the context of climate change more broadly. The NAP is intended to enhance the implemen - tation of human rights due diligence (HRDD) by companies based in Switzerland and active in Switzerland and/or abroad. The Federal Council expects all companies to set up HRDD process - es in accordance with their size, the sector with - in which they operate, and their position within the value chain. Further, the Federal Council is conducting an analysis of the specific needs of SMEs in the context of emerging ESG regula - tions. 2.2.2 Corporate Human Rights Due Diligence Legislation Switzerland has recently introduced binding HRDD and reporting requirements for compa - nies, albeit with a limited scope. While there is currently no general human rights due diligence requirement covering all human rights and all companies, the law mandates due diligence in
specific areas, notably child labour and conflict materials. These requirements, enshrined in the Swiss Code of Obligations (CO, Articles 964j-964l), entered into force on 1 January 2022, following the rejection of a popular initiative (the “Respon- sible Business Initiative” ) by a very narrow margin in 2020. Building on relevant EU law (Regulation 2017/821), ILO Conventions, the OECD Guide - lines and a proposed Dutch Bill (the Child Labour Due Diligence Act), Switzerland introduced spe - cific due diligence requirements in the areas of child labour and conflict materials. The due dili - gence requirements are further specified in an Ordinance, the Ordinance on Due Diligence and Transparency in relation to Minerals and Metals from Conflict-Affected Areas and Child Labour (DDTrO). Conflict Minerals and Metals (Conflict Materials) Due diligence requirements concerning conflict materials are built on the model of EU Regulation 2017/821, affecting importers of tin, tantalum and tungsten, their ores, and gold originating from conflict-affected and high-risk areas. Com - panies importing or processing relevant materi - als above a certain threshold, as determined in an Annex to the DDTrO, are required to assess whether these materials may originate from conflict-affected or high-risk areas. For this pur - pose, the Swiss government recommends that companies use the CAHRA List, an indicative, non-exhaustive, and regularly updated list of conflict-affected and high-risk areas (as defined under EU Regulation 2017/821). In-scope com - panies must: • establish a supply chain policy on conflict materials;
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