• The Ordinance on Climate Disclosures started on January 1, 2024.
• The Swiss government is awaiting the European Union's final laws to move ahead, as well as to align its own with the latter's.
• A decision in this regard is expected by early 2026.

The Swiss Federal Council ('the Council") has halted work on overhauling the ordinance on company climate disclosures for the time being.

The decision comes on the heels of proposed revisions receiving broad support during the consultation phase. In March 2025, the Council mooted alternative, more practical options to reform sustainability reporting rules.

The government has decided to temporarily suspend the implementation of the ordinance to avoid overlapping efforts or unnecessary changes.

READ MORE: Most EU Firms Follow ESG Reporting Rule; 65% Use it Strategically

The ordinance, which came into effect on January 1, 2024, aimed to ensure transparency in companies' climate-related goals and actions, particularly those from the financial sector. To this end, the Federal Department of Finance (FDF) was tasked with assessing whether the rules were comparable with international standards and setting minimum requirements to help financial companies meet the Climate Protection Act goals.

In December last year, a proposal was released to update the ordinance, which suggested aligning Swiss regulations with international standards for reporting as well as introducing a roadmap for financial firms. The proposals were accepted, but many requested that the updates be put on ice till the larger legal framework, the Code of Obligations, is reworked.

Three months ago, the Federal Council revised the feedback and tasked the Federal Department of Justice and Police with developing practical options to revamp the Code of Obligations, particularly in sustainability reporting and corporate governance areas.

ALSO READ: What is Sustainability Reporting? Meaning, Types, and Benefits

Now, the Council is waiting for the European Union’s upcoming changes to align its rules with the EU standards.

As a result, the Council decided to delay the climate disclosure project until the Code of Obligations is amended and approved or until January 1, 2027. An ultimate decision in this context will be made by 2026, but it will be contingent on how things progress in the EU.

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Source: Swiss Government