Navigating Swiss Reporting regulations: Art. 964a ff. SCO & TCFD

Following the adoption of the indirect counter-proposal to the initiative "For Responsible Companies - for the Protection of People and the Environment", new mandatory reporting requirements for non-financial information entered into force in 2022 (Art. 964a ff. SCO).

Companies of public interest that exceed pre-defined thresholds, must report on sustainability issues ranging from environmental issues (including CO² goals), social issues, employee-related issues, respect for human rights and anti-corruption. In addition, companies that trade in or process minerals and metals are required to conduct a due diligence along on human rights, child labour and the environment throughout their supply chain.

On 26 June 2024, the Federal Council launched a consultation on the revision of the scope of Art. 964a ff. in order to align it more closely with Europe. We expect this legislation to apply to all large Swiss companies in the near future, affecting around 3,500 companies instead of the nearly 200 currently in scope.

In addition, the Swiss Federal Council has published an ordinance on the climate policy reporting obligations, which will require large companies to comply with the internationally recognised recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) from the 2024 fiscal year. The TCFD provides a reporting framework for disclosing how climate-related risks are embedded in the organisational strategy and structures.

While the TCFD generally refers to climate risks, the Task Force for Nature Related Financial Disclosures (TNFD) has developed broader recommendations for disclosing nature-related risks. This initiative has created a framework for recognising the financial impacts and opportunities of natural risks on companies.

How Forvis Mazars can help on SCO and TCFD compliance

Reporting according to Art. 964a ff. SCO

Our experienced team can help you meet regulatory expectations and capitalise on the resulting business opportunities through the following mechanisms:

• Gap analysis of your existing non-financial reporting and identification of appropriate actions to close the gaps towards SCO requirements
• Benchmarking of your current position against peers and best practice, providing you with a clear strategy direction
• Structure and develop stand-alone, combined, or integrated sustainability reporting
• Help you in the preparation for external assurance with an audit readiness assessment 

Implementation of the TCFD recommendations

We provide comprehensive TCFD advice and guidance including initial gap analysis, action plan, scenario analysis, implementation of the TCFD recommendations and reporting thereon. Our unique combination of expertise in climate risk compliance, governance, risk management, quantitative methods and reporting are tailored to meet your needs.

• TCFD gap analysis by comparing the available and disclosed information with TCFD requirements (target vs. actual comparison)
• Development of measures and their implementation with an action plan
• Scenario analysis assessing climate risk drivers, risks and opportunities, impacts and development of appropriate measures
• Support with implementation and reporting of TCFD framework recommendations

Our added value

We combine our extensive knowledge of sustainability related regulation with our industry expertise to provide you with the advice and support you need to develop your non-financial reporting. Our team has expertise in sustainability reporting, climate risk reporting as well as risk management and works in an integrated and collaborative way to provide the best possible service.

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