Switzerland: Draft Sustainable Corporate Governance Law
Switzerland’s Federal Council has proposed a new sustainable corporate governance law that is broadly aligned with the provisions in force within the EU.
Large Swiss companies will be subject to specific due diligence obligations regarding human rights and the environment, while small and medium-sized enterprises (SMEs) will not be directly affected by these new requirements. Large companies will have to analyze the risks associated with their activities and take the necessary measures. Approximately 30 large companies will fall within the scope of these obligations.
As for sustainability reporting, the draft law will require large Swiss companies to report on environmental and social issues (including personnel matters), as well as on human rights and anti-corruption issues. Approximately 100 large companies will fall within the scope of the transparency rules on non-financial matters, while SMEs will not be directly affected. Sustainability reports must be audited by an external auditing firm.
The Federal Council has launched a public consultation on this draft law, which will be open until July 9, 2026.