SWITZERLAND Trends and Developments Contributed by: Annemarie Lagger and Amina Chammah, Walder Wyss Ltd
and environmental protection, these are more limited in scope than EU requirements. Under Article 964a et seqq of the Swiss Code of Obligations (CO), certain undertakings of public interest (eg, financial companies) must publish an annual report on non-financial matters. This report must cover environmental goals, social and employment matters, human rights, and anti-corruption. The report should give a clear view of the company’s performance, results, and impact in these areas. An exemption applies if the company is controlled by a parent undertak - ing that issues a comparable report under Swiss or equivalent foreign law. While the law does not define what constitutes an equivalent report, it is broadly recognised that reports under Directive 2014/95/EU or the CSRD would be considered equivalent. Swiss due diligence obligations are also less comprehensive than those set out in the CSD - DD. Under Article 964j et seqq of the CO, com - panies are obliged to conduct a risk analysis of their supply chains to identify possible violations related to child labour and environmental stand - ards. The law only applies to companies whose seat, head office or principal place of business is located in Switzerland and that either place in free circulation or process in Switzerland miner - als containing tin, tantalum, tungsten or gold or metals from conflict-affected and high-risk areas or offer products or services where there is a rea - sonable suspicion of child labour involvement. Affected companies are, among other obliga - tions, required to establish a risk management plan, implement adequate measures to minimise the identified risks and publish an annual due diligence report. The Ordinance on Due Dili - gence and Transparency in relation to Minerals and Metals from Conflict-Affected Areas and Child Labour provides for certain exemptions
from these obligations, eg, if companies remain below certain thresholds or adhere to selected internationally recognised equivalent standards, such as the OECD Conflict Minerals Guidance or Regulation (EU) 2017/821. The Swiss Federal Council is currently prepar - ing draft legislation to expand due diligence and reporting obligations. The revised rules aim to align with EU law and extend coverage to a broader range of companies as well as human rights and environmental topics. According to the draft documents, the reporting obligation shall be suspended if the affected company already prepares an equivalent report under for - Regulation (EU) 2023/1115 on the making avail - able on the Union market and the export from the Union of certain commodities and products associated with deforestation and forest deg - radation (EUDR) introduces strict due diligence obligations for operators and traders placing or exporting specific commodities within the EU. The EUDR applies to cattle, cocoa, coffee, oil palm, rubber, soy, and wood, including many derived products. Under the EUDR, any natural or legal person who places these commodities on the EU market, or exports from it (ie, opera - tors), must, among others, ensure and demon - strate that: • products do not originate from land defor - ested after 31 December 2020; • in the case of relevant products that contain or have been made using wood, the wood has been harvested from the forest without inducing forest degradation after 31 Decem - ber 2020; and eign law, eg, EU legislation. Deforestation Regulations
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