A planned timeline for mandated climate disclosure for major companies has been announced by the Swiss government. The idea behind this is to join the ranks of nations in order to boost the requirements of sustainability reporting.
Public companies, banks and insurance companies with greater than 500 employees, more than CHF 20 million in total assets or more than CHF 40 million in turnover will be required to report publicly on climate issues in 2024 (on 2023 financial year events). This is based on the announcement by the Swiss Federal Council on the 18th of August. This will be conducted utilizing the Taskforce on Climate-related Financial Disclosures (TCFD)-aligned disclosures.
The TCFD was established by the Financial Stability Board in 2015, with the aim of developing regular disclosure standards for firms. This is to enable investors and other stakeholders to carry out assessments of the companies’ climate-related financial risk. In June 2017, the recommendations and findings were published.
Reporting based on the new mandate will include, but not excluding, issues related to financial risk facing companies as a result of climate change. Additionally, the impact of company activities on climate and the environment will be assessed.
Several countries and jurisdictions are to add climate and other ESG factors in their disclosures provided by companies. This comes in parallel with the Swiss initiative. In May of this year, President Biden signed an executive order asking US financial regulators to take into account plans to further develop climate-related disclosures, moreover, to incorporate a climate-related financial risk into regulatory and supervisory practices. The action will help bring Switzerland in line with other jurisdictions’ mandated sustainability reporting rules, including the UK and European Union.
Source: ESG Today