SWITZERLAND Law and Practice Contributed by: Lorenzo Olgiati and Pascal Hubli, Schellenberg Wittmer Ltd
7.2 ESG Developments Switzerland has recently seen material shifts towards mandatory ESG reporting, driven both by domestic initiatives and alignment with EU standards. The CO requires large companies to disclose ESG-related information, particularly on environmental, social, human rights, and anti-corruption matters in their annual report. A climate reporting ordinance requires companies to disclose climate risks and opportuni - ties, aligned with international frameworks such as TCFD (see 7.1 ESG Requirements ). In the broader EU context, the Omnibus-I Amend - ment Directive to the CSRD and CSDDD (Directive (EU) 2026/470) was published in the Official Jour - nal on 26 February 2026 and entered into force on 18 March 2026. It introduces simplifications in sus - tainability reporting and due diligence obligations. Although Swiss companies are not automatically sub - ject to these EU rules, many Swiss companies may be affected where they fall within the territorial scope of the relevant EU legislation or operate through EU sub - sidiaries. In addition, Swiss authorities are reviewing whether, and to what extent, domestic ESG legislation should be adapted in light of these European develop - ments (see 7.1 ESG Requirements ). In particular, on 1 April 2026, the Swiss Federal Coun - cil opened the consultation on a proposed new Feder - al Act on Sustainable Corporate Governance (NUFG), which is closely aligned with the CSRD and CSDDD as amended by the Omnibus Directive. The proposed Swiss reform reflects the current international trend towards recalibrating ESG regulation: maintaining mandatory sustainability reporting and due diligence, but focusing the scope on larger companies and reducing administrative burdens.
ensure that the report remains publicly available for at least ten years. The Federal Council has additionally issued an Imple - menting Ordinance on Due Diligence and Transpar - ency for Minerals and Metals from Conflict-affected Areas and Child Labour (DDTrO), which also entered into force on 1 January 2022. Reporting Obligations on Wage Inequality In July 2020, the Federal Act on Gender Equality was modified to include reporting obligations on wage inequality. In broad terms, companies with 100 or more employees are required to complete an equal- pay analysis every four years. The analysis must be audited by an independent, approved third party. The results of the analysis must be shared with the work- force and, if the company is listed, with its sharehold - ers (in the appendix to the annual report). Private Sector ESG Disclosure Directives and Initiatives There are several initiatives from the private sector, such as from the Swiss Bankers Association, which has declared sustainable finance as one of its stra - tegic priorities. Among other things, this led to the development of guidelines for the advisory process for private clients. In addition, certain Swiss proxy advisors have developed corporate governance and responsibility guidelines in connection with their vot - ing guidelines. Consequences of inadequate reporting and general prohibition of “greenwashing” Inadequate or false reporting under the non-financial/ ESG reporting can result in fines up to CHF100,000 (Article 325ter of the Swiss Criminal Code), with neg - ligent breaches punishable up to CHF50,000. Additionally, the greenwashing prohibition (Article 3 paragraph 1 lit. x of the Swiss Unfair Competition Act) forbids any unverified climate-related claims, applying to all companies irrespective of whether or not they are subject to the non-financial/ESG reporting duties under the CO.
8. Artificial Intelligence 8.1 Board Oversight of AI
Switzerland currently has no AI-specific legislation imposing explicit board-level governance require - ments. Instead, AI oversight is addressed through existing, technology-neutral corporate governance and regulatory frameworks. However, boards must
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