The Switzerland sustainability reporting law is evolving with new proposals from the Swiss Federal Council, introducing enhanced sustainability reporting and due diligence requirements aligned with key EU frameworks such as the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD).
This proposed framework, part of the Federal Act on Sustainable Corporate Governance (NUFG), aims to strengthen transparency, accountability, and comparability in corporate disclosures across environmental, social, and governance areas. It introduces a more structured, tiered approach to reporting and due diligence, while ensuring alignment with international standards and maintaining competitiveness for Swiss companies operating globally.
By closely mirroring EU regulations, the Switzerland sustainability reporting law signals a broader shift toward regulatory convergence, enabling organizations to streamline compliance across jurisdictions while preparing for more robust, audit-ready and digitally structured disclosures.
What’s Changing?
- Scope of Reporting (Tier 1)
Swiss entities would be required to publish a sustainability report if they have:- More than 1,000 employees
- Global net turnover exceeding CHF 450 million
- This is expected to apply to around 100 companies.
- Due Diligence Requirements (Tier 2)
Stricter obligations would apply to very large entities with:- More than 5,000 employees
- Global turnover above CHF 1.5 billion
- These requirements align more closely with CSDDD-style due diligence and are expected to impact around 30 companies.
- Non-Swiss Entities in Scope
Non-Swiss entities would also fall within scope where they:- Generate more than CHF 450 million in turnover in Switzerland
- Maintain a subsidiary or branch in the country
- These entities may also be required to appoint a Swiss representative.
- Use of ESRS or Equivalent Standards
The framework would require the use of ESRS, or an equivalent standard incorporating double materiality. - SME Safe Harbor
While SMEs are not directly in scope, large companies will be restricted to requesting only VSME-aligned data, reducing the risk of excessive reporting burdens across the value chain.
- Digital Reporting Expectations
Sustainability disclosures are expected to be submitted in a uniform electronic format, potentially aligned with EU formats such as ESEF. - Audit and Oversight
Sustainability reports would require external verification, with oversight by a national authority.
Why This Matters
Switzerland’s approach reflects a broader shift toward regulatory alignment and enforceability:
- Aligns closely with EU frameworks while enabling local enforcement
- Introduces clear tiering of obligations, improving proportionality
- Protects SMEs while maintaining accountability for large companies
- Strengthens auditability, comparability, and data consistency
The proposal is part of the broader Federal Act on Sustainable Corporate Governance (NUFG), currently under consultation until July 9, 2026 .
How EcoActive Can Help
EcoActive helps organizations adapt to Switzerland’s evolving sustainability reporting and due diligence requirements while ensuring alignment with EU frameworks.
Powered by Agentic AI, EcoActive offers:
- Automated data collection – No rigid templates, support for multiple data sources
- Always-on validations – Data mismatches are identified and flagged early
- Insights based on standards and frameworks
- Connected Numbers and Narratives – Disclosures are driven by underlying data
- Mapping + linking done for you – Data is aligned to regulatory requirements
- Controlled tagging – Supports structured digital reporting formats
- Instant change impact – Updates are immediately reflected across disclosures
- Evidence captured automatically – Built-in auditability and traceability
With EcoActive, organizations can:
- Centralize sustainability disclosure data across entities and reporting cycles
- Manage Tier 1 reporting and Tier 2 due diligence workflows
- Maintain full traceability of data updates and reporting changes
- Handle regulatory updates without disrupting reporting processes
- Prepare structured, audit-ready disclosures aligned with EU and Swiss mandates
As Switzerland moves toward EU-aligned, enforceable sustainability reporting, organizations should begin preparing for tiered compliance and increased audit requirements. Connect with EcoActive to simplify and future-proof your reporting process.
