Switzerland ESG Reporting 2025: Key Regulatory Changes You Need to Know

As global developments in sustainability and responsible corporate governance advance, Switzerland has taken significant steps in recent years to regulate ESG reporting (Environmental, Social, Governance). The upcoming changes in 2025 mark a major turning point—particularly for large companies and certain financial institutions. This article provides a detailed overview of the new requirements under Switzerland ESG reporting and explains which regulatory changes for 2025 are especially relevant.

Overview of Current ESG Regulations in Switzerland

Since the revised Swiss Code of Obligations (CO) came into effect at the beginning of 2022, ESG reporting is no longer voluntary for large Swiss companies. Companies that exceed certain thresholds (over 500 employees and a balance sheet total of over CHF 20 million or revenue exceeding CHF 40 million) are required to publish an annual sustainability report. These reports must include information on environmental matters, social and employee issues, human rights, and anti-corruption measures.

Additionally, Swiss companies with particularly high risks in areas such as conflict minerals or child labor are subject to enhanced due diligence and reporting obligations.

Key Regulatory Changes from 2025

Starting with the 2025 financial year, further regulatory tightening will come into effect, aimed at improving transparency and international comparability. The main changes include:

1. Mandatory Third-Party Audit

While ESG reports were previously not subject to statutory audits, starting in 2025 an independent audit by external parties will be required. This review will cover compliance with formal requirements and, to some extent, the accuracy of the reported ESG data.

2. Inclusion of Scope 3 Emissions in Reporting

Previously, companies were primarily required to report direct (Scope 1) and energy-related indirect (Scope 2) emissions. From 2025, large companies must also disclose significant Scope 3 emissions—those that occur within the supply chain or as a result of product use. This expansion poses considerable challenges for many companies regarding data collection and analysis.

3. More Detailed Materiality Analysis Requirements

Materiality analysis—identifying ESG topics relevant to the company—will become more formalized. From 2025, companies must clearly explain the criteria used to identify their material ESG topics. Furthermore, a double materiality approach will be required: both the company’s impact on the environment and society, as well as ESG risks to the company itself, must be considered.

4. Digitalization and Publication Requirements

ESG reports will need to be machine-readable and digitally accessible. Publication must occur no later than four months after the end of the financial year. This aims to promote transparency and make access easier for investors, stakeholders, and regulators.

Impact on Swiss Companies

The stricter Switzerland ESG reporting requirements call for early and strategic engagement with ESG data, processes, and systems. Companies will need to clarify internal responsibilities, adapt IT systems for data collection and processing, and potentially seek external consulting support. For many organizations, this also means a cultural shift toward ESG-driven corporate governance.

Internationally active Swiss companies, in particular, will benefit from early alignment with EU requirements, avoiding dual reporting obligations. Harmonization with European and international standards also increases acceptance and credibility among global investors.

Conclusion

ESG reporting in Switzerland will become significantly more demanding and regulated from 2025 onward. Mandatory standards, audit requirements, and expanded disclosure obligations present new challenges—but also opportunities for greater transparency, sustainable positioning, and competitiveness. Companies should use the coming months to adapt their ESG strategies, processes, and systems to the new requirements. This is the only way to ensure compliance with Switzerland’s ESG reporting obligations—not only formally but also substantively. Switzerland ESG reporting is thus evolving into a core component of modern corporate governance in the country.