Switzerland Delays Implementation of New Climate Reporting Obligations, Seeking Clarification on EU Omnibus Directives
In a move aimed at ensuring regulatory alignment and maintaining international comparability, the Swiss Federal Council has decided to temporarily pause the revision of its Ordinance on Climate Disclosures, originally scheduled for June 2025[1][2]. This decision comes as the Swiss government awaits clarity on the outcome of the EU's Omnibus process, a series of reforms aimed at simplifying and streamlining sustainability reporting and due diligence obligations for companies across the EU[2][5].
The Ordinance on Climate Disclosures, which came into effect on 1 January 2024, mandates climate reporting for large companies and financial institutions, requiring disclosure of greenhouse gas emissions, climate risks, impact, and transition plans aligned with the net-zero 2050 target[1][2]. In December 2024, the Swiss government launched a consultation proposing amendments to better align the Swiss rules with international reporting standards, including the International Sustainability Standards Board (ISSB) and the EU’s European Sustainability Reporting Standards (ESRS)[1][2].
However, feedback from stakeholders urged caution and a delay in implementation until broader legal reforms, like those to the Code of Obligations, are settled. As a result, the Federal Council instructed the Federal Department of Justice and Police to draft pragmatic amendments to sustainability provisions within the Code of Obligations[1].
The pause in the revision of the Ordinance on Climate Disclosures will also delay the implementation of new climate-related reporting rules for companies in Switzerland. These include plans for companies to publish climate transition roadmaps, aligning their disclosures with internationally recognized standards such as the ISSB or the CSRD's ESRS, and basing their reports on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)[1][2].
The delay is primarily due to the EU's Omnibus process, which aims to harmonize disclosure regulations across EU markets, a critical consideration for Swiss companies that often operate in or deal with EU markets. By aligning its climate disclosure rules with the evolving CSRD framework and sustainability standards within the EU, Switzerland can maintain competitiveness and compliance consistency[1][2].
The Swiss government passed its initial Ordinance on Climate Disclosures in 2022, mandating climate reporting by large companies and financial institutions from 2025[1]. The Council has also paused the project on companies' climate disclosures until it approves the amendment bill, by January 1, 2027 at the latest[1].
This pause in the revision of the Ordinance on Climate Disclosures is part of Switzerland's strategic choice to wait for clarity on domestic legal reforms and on evolving European Union sustainability reporting frameworks[1][2]. The Council will decide on next steps for the sustainable corporate governance legislation as soon as the EU decides on its announced simplifications, but by early 2026 at the latest[1][2].
References: [1] Swiss Federal Council (2025). Federal Council decides to pause the revision of the Ordinance on Climate Disclosures. Retrieved from https://www.admin.ch/gov/en/start/documentation/communications/messages.msg-id-85052.html [2] Swiss Federal Council (2025). Federal Council's decision on the consultation on the revision of the Ordinance on Climate Disclosures. Retrieved from https://www.admin.ch/gov/en/start/documentation/communications/messages.msg-id-85053.html [3] European Commission (2023). Proposal for a Regulation of the European Parliament and of the Council on sustainability-related disclosures in the financial services sector. Retrieved from https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12727-Sustainability-related-disclosures-in-the-financial-services-sector [4] European Commission (2023). Proposal for a Directive of the European Parliament and of the Council amending Regulation (EU) 2020/852 on the establishment of a framework to facilitate sustainable investment. Retrieved from https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12726-Proposal-for-a-Directive-amending-Regulation-EU-2020-852-on-the-establishment-of-a-framework-to-facilitate-sustainable-investment [5] European Commission (2023). Proposal for a Regulation of the European Parliament and of the Council on the establishment of a European Single Access Point (ESAP) for companies to fulfil their sustainability-related disclosure obligations. Retrieved from https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12728-Proposal-for-a-Regulation-on-the-establishment-of-a-European-Single-Access-Point-for-companies-to-fulfil-their-sustainability-related-disclosure-obligations
- The temporary pause in revising the Swiss Ordinance on Climate Disclosures, originally slated for June 2025, highlights the importance of alignment with international reporting standards in environmental-science, such as the International Sustainability Standards Board (ISSB) and the EU’s European Sustainability Reporting Standards (ESRS).
- The Swiss government's decision to delay the implementation of new climate-change reporting rules for companies is influenced by the ongoing EU Omnibus process, a series of reforms in policy-and-legislation, which aims to simplify and streamline sustainability reporting across European Union member states.
- In the realm of general-news, the climate-change debate often intersects with politics and policy-making, as shown by the Swiss Federal Council's strategic choice to wait for clarity on domestic legal reforms and evolving EU sustainability reporting frameworks before moving forward with the revision of its Ordinance on Climate Disclosures.
