Climate-change reporting is to become mandatory for large companies, including banks and insurers, in Switzerland from 2024, and the government has now laid out some parameters for this.
The Swiss government Wednesday said banks and insurers with 500 or more employees, over 20 million francs ($22 million) in total assets or a turnover of more than 40 million francs will be obliged to report publicly on climate issues from 2024.
The parameters the government outlined also require companies to include the financial risk a company incurs as a result of climate-related activities as well as to disclose the impact of its activities on the climate and environment.
TCFD Recommendations
The parameters will be used by the finance ministry to draft a consultation on developing a binding way of implementing the recommendations of the Task Force on Climate-related Financial Disclosures for Swiss companies.
«Minimum requirements should ensure that disclosures are meaningful, comparable and, where possible, forward-looking and scenario-based,» the government said in a press release.
The binding implementation of the TCFD recommendations is expected to take place from 2024 for the 2023 financial year by means of a separate executive order, it added.
Largest Institutions Already Reporting
Swiss financial regulator Finma already requires the largest domestic banks and insurers to report on potential climate risks related to their businesses.
The rules, which came into force on June 1, say financial service providers must describe major climate-related financial risks and their impact on business strategy, model, and financial planning and disclose how they identify, assess, and manage them. Finma said it also wants to know how the matter is governed internally.
