09 December 2024

ESG: Adaptation of the Ordinance on Reporting on Climate Matters

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  • Legal
  • Governance / ESG

Hardly in force (1.1.24), the Ordinance on Reporting on Climate Matters (Climate Ordinance) is already to be amended again! The consultation on this will run until March 21, 2025.

  • Adrian Peyer

    Legal Partner

Hardly in force (1.1.24), the Ordinance on Reporting on Climate Matters (Climate Ordinance) is already to be amended again! The consultation on this will run until March 21, 2025.

The existing Climate Ordinance aims to promote transparency and comparability. It specifies the provisions of the Swiss Code of Obligations (Art. 964a-964c CO).

Why does it already need an adjustment?

To date, the regulation has established the assumption that the obligation to report on climate-related matters is fulfilled if it is based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

In order to take account of international developments in the area of reporting standardization, the proposed new regulation does not explicitly mention the TCFD recommendations and instead refers to international standards.

For companies in the financial sector, the proposal also defines principle-based minimum requirements for roadmaps for the climate-friendly alignment of financial flows.

What are the main changes?

  • References to TCFD recommendations no longer apply; in future, international standards such as ISSB or ESRS will apply.
  • Specification of the obligation to introduce "roadmaps" (formerly transition plans) to achieve net zero targets for the financial sector:
    • As far as possible and appropriate, the roadmap should include quantitative, asset class and sector-specific, science-based reduction targets, including concrete and measurable interim targets for all relevant greenhouse gas emissions and expansion targets for climate-friendly technologies
    • Presentation of the planned measures to achieve the objectives

  • The changes are to apply from January 1, 2026

What needs to be done?

The first climate reports are to be published in 2025 and must comply with the TCFD in accordance with the applicable Climate Ordinance.

2025 and 2026 can be used to convert the climate reports to ISSB (whereby the "double materiality" must also be taken into account when using ISSB) or ESRS, so that these can be published in 2027.

Further regulatory developments - in particular international standards - must be closely monitored.

We are happy to support you in this dynamic environment with pragmatic ESG legal advice.
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