What You Need to Know About Swiss Climate Disclosure in 2025.
- ayshasathar101
- Aug 5
- 3 min read
Behind Switzerland’s calm landscapes is a determined push toward it's mandatory greenhouse gas (GHG) emission disclosures, marking the country’s serious step toward climate responsibility and long-term sustainability.
For years, Switzerland has been a committed player on the global climate stage. As a signatory to the Paris Agreement, the Swiss government pledged to reduce greenhouse gas emissions by 50% by 2030 compared to 1990 levels.
"Switzerland, which is responsible for 0.1% of global greenhouse gas emissions and, based on the structure of its economy, has a low level of emissions (6.4 tonnes per capita per year), should be able to avail of emissions reduction measures abroad to reduce the cost of emissions reduction measures during the period 2020-2030". - Swiss Government Statement.
This signaled Switzerland’s strong intention to combat climate change without sacrificing the economic growth.
However, like many countries, Switzerland initially relied on voluntary climate disclosures from corporations ,which was helpful, but insufficient for the scale and speed of change required. Investors, civil society, and citizens started demanding greater transparency, reliable data, and corporate responsibility.
On 2 January 2021, Switzerland officially became a supporter of the Task Force on Climate-related Financial Disclosures (TCFD). It adopted principles from the (TCFD) ,a global benchmark that emphasizes transparency around climate risks and opportunities, ensuring companies report both quantitative data (like emissions) and qualitative insights (like climate strategies).
This move is in line with the country's policy on sustainable finance.
The 2024 Milestone: Mandatory GHG Emission Disclosure for Large Companies
In 2024, the Federal Council adopted implementing ordinance on climate disclosures for large Swiss companies, and brought it into force as of 1 January 2024.
Under the rule Ordinance on Climate Disclosures , Switzerland enacted a law requiring large companies to publicly disclose their greenhouse gas emissions and climate-related financial risks as part of their annual reports.
The scope includes:
Companies with 500 or more employees and firms with assets over CHF 20 million or turnover exceeding CHF 40 million.
Sectors like banks, insurers, and publicly listed companies, which often have the greatest environmental impact and investor scrutiny.
These disclosures must:
Follow TCFD guidelines and be publicly accessible and subject to verification
Cover not just direct emissions (Scope 1) but also indirect emissions (Scope 2 and where possible, Scope 3).
While the first mandatory disclosures already began, the Swiss government has planned to align with European Union standards. Therefore the changes for 2025 reporting law is still in the modification process, awaiting the EU alignment.
The Ordinance on Climate Disclosure rule is still active and companies must keep reporting but any new changes are on hold for now.
On January 1, 2025, The Swiss Climate and Innovation Act (CIA) was enacted and is a comprehensive climate policy aimed at achieving net-zero greenhouse gas emissions by 2050. Switzerland is also investing CHF 1.2 billion (~$1.3 billion USD) from 2025 to 2030 to turbocharge climate innovations.
Parallel to disclosure efforts, Switzerland has been active in creating market-based incentives to cut emissions. Since 2020, the country’s domestic Emissions Trading System (ETS) has been linked to the European Union Emissions Trading System (EU ETS) , the largest carbon market in the world.
This link lets EU ETS participants benefit from a larger and transparent emissions trading market that offers greater flexibility for achieving the CO2
The EU ETS covers around 11,000 installations, which emit approximately 1.6 billion tonnes of CO2 equivalent per year, while The Swiss ETS is a lot smaller, about 50 installations and emissions of about 5 million tonnes of CO2 equivalent per year.
This journey isn’t over yet. Switzerland still has work to do, but in 2025, it has taken brave steps, proving that even a small country can make such a big impact.
As always, let this be your reminder that climate knowledge isn’t reserved for experts. It belongs to you, too
Concept Writer and Researcher: Aysha Abdul Sathar
Reviewer: Pratiksha More
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