30 January 2025

Sustainability management and reporting: The Swiss GAP FER guidelines for Swiss SMEs

  • Articles
  • Legal
  • Governance / ESG

In mid-December, Swiss GAP FER published guidelines for small and medium-sized enterprises (SMEs) and their sustainability management and reporting. The FER guidelines offer a structured approach to strategically anchoring sustainability and reporting on it transparently.

  • Dr. Martin Eckert

    Legal Partner

  • Adrian Peyer

    Legal Partner

Who is this guide intended for?

The guidelines are primarily aimed at Swiss SMEs that are not listed on the stock exchange but want to meet the increasing demands of stakeholders, customers and society in the area of sustainability.

Pro Memoria: SMEs are currently not required to submit a so-called report on non-financial matters in accordance with Art. 964a CO.

The aim is to support these SMEs in the integration of sustainability management and the creation of a meaningful sustainability report.

The pragmatic approach of Swiss GAP FER also enables companies with limited resources to strategically shape sustainable action.


The 7 steps of the FER guidelines

  1. Clarify responsibilities and competencies: It is crucial to know who in the company is responsible for sustainability-related tasks and who implements them. Clearly defined roles create efficiency and transparency.
  2. Analyze and understand stakeholder groups: Companies need to know the expectations of internal and external stakeholders. A well-founded stakeholder analysis forms the basis for sustainable decisions.
  3. Define sustainability ambition: Every company should define the extent to which sustainability should be part of its strategy. Options range from compliance with minimum legal requirements (basic level) to the inclusion of opportunities and risks (advanced level) and full integration into the corporate strategy and identity (top level).
  4. Identify material topics: A materiality analysis is used to identify the most important sustainability issues. The relevance for the environment and society as well as for the company itself (so-called "double materiality") is taken into account.
  5. Draw up a roadmap with targets and measures: Based on the materiality analysis, fields of action are prioritized and concrete goals are defined. A structured action plan ensures implementation security.
  6. Implementing measures and measuring progress: Key performance indicators (KPIs) help to make progress measurable. Qualitative and quantitative data provide information about successes and the need for action.
  7. Sustainability reporting: The (voluntary) report documents the results and strategies in the area of sustainability. It serves both as a communication tool and to build trust among stakeholders.



Summary

Sustainability is not an end in itself, but an integral part of the corporate strategy that brings long-term benefits: strengthening competitiveness, increasing attractiveness for employees and customers and better preparation for regulatory requirements.

The FER guidelines provide clear orientation for implementing sustainability management in a structured and effective way. It also provides examples and concrete templates that SMEs can easily use as a basis for their efforts.



Recommendations for action

  1. Start with the "double materiality analysis", which may well provide you with new insights into your business model, your supply chain and other aspects of your SME. Involve your internal and external stakeholders in the discussion at an early stage and then define the sustainability ambition of your SME. Use the guide to proceed step by step.
  2. Clarification regarding reporting obligations under Art. 964l CO: In the area of conflict minerals and child labor, we recommend clarifying whether your company is subject to the relevant due diligence and reporting obligations (Art. 964j et seq. CO). In the area of conflict minerals, there are threshold values for import and processing quantities (Art. 4 VSoTr), including for SMEs. There is an exception for SMEs in the area of child labor (Art. 6 VSoTr). Anyone who does not qualify as an SME must carry out a suspicion test (Art. 5 para. 1 VSoTr). If there is no reasonable suspicion of child labor based on the assessment, the company must document this finding and is exempt from the due diligence and reporting obligations (Art. 5 para. 2 VSoTr). The board of directors that is obliged to report but fails to do so or reports incorrectly is liable to prosecution (Art. 325ter StGB) (see also: "SMEs must tackle non-financial reporting now" | SQS).


We are happy to support you on your way to a more sustainable economy with pragmatic legal advice - cost-efficient and solution-oriented.


Click here for the FER guidelines V1.0:
FER guidelines on sustainability

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