Regulatory Update: Swiss Ordinance on Climate Disclosures
Transcript:
On the 1st of January 2024, the Swiss Ordinance on Climate Disclosures came into effect.
The Ordinance on Climate Disclosures forms part of the Swiss Code of Obligations, passed in 2020. Under the Ordinance, in scope entities must report on a number of climate-related disclosures in line with the recommendations of the Task Force on Climate Related Financial Disclosures -or TCFD-. The first reporting period covers the financial year 2024, and the first reports will be issued in 2025. The Ordinance applies to large public companies and financial entities with over 500 employees, and at least one of a balance sheet of more than 20 million swiss francs, or a turnover of more than 40 million swiss francs.
As well as following the cross-sectoral TCFD recommendations, reporting companies should also pay attention to the TCFD’s sector-specific guidance. In addition, in scope companies are required to publish a transition plan in line with Swiss climate goals, including quantitative CO2 targets. Furthermore, the Swiss Ordinance mandates that issuers should take account of double materiality rather than simply financial materiality, as envisaged in the TCFD recommendations.
