Corporate ESG Reporting: Latest Developments

The last quarter of 2022 saw two notable advances in relation to ESG reporting in Switzerland and in the European Union. In Switzerland, the Federal Council adopted an Ordinance on Climate Disclosures to complement the non-financial reporting rules that apply for the first time with respect to the financial year 2023. In the EU, the colegislator adopted the new Corporate Sustainability Reporting Directive, representing a significant overhaul of the already existing non-financial reporting rules. Both of these developments are significant for large Swiss public interest companies as they gear up preparations for their first reportable financial year.

Background

The recently enacted Articles 964a to 964c of the Swiss Code of Obligations ("CO") require large Swiss public interest companies to prepare on an annual basis a report on non-financial matters (i.e., environmental, social and employmentrelated matters, respect for human rights, and anti-corruption),