REGULATORY AND REPORTING UPDATE: WHATS NEW AND WHATS COMING

Stay informed with the latest developments shaping policy and governance. In this section, we highlight key legislative updates, emerging trends, and impactful decisions from local, national, and global arenas in both the Swiss, European and International Context, with a critical focus on sustainability and reporting initiatives.

Developed in partnership with Walder Wyss & ESG Book.

SWITZERLAND

Consultation on the draft bull amending the Swiss Code of Obligations closed

The consultation process on the draft bill amending articles 964a to 964c of the Swiss Code of Obligations closed on October 17, 2024.

The aim of this draft bill is to align the Swiss sustainability reporting obligations with those of the European Union. The changes contained in the draft bill include in particular (i) the extension of the scope of application to companies with at least 250 employees (instead of 500), (ii) the introduction of an external audit requirement, (iii) the abolition of the “comply or explain” principle and (iv) an extension of the disclosure requirements to the entire value chain. In view of the suggested transition period (2 years), the new requirements could apply as of January 1st, 2027 at the earliest.

EUROPE

On November 8, 2024, during a press conference following the European Political Community meeting in Budapest, the President of the European Commission Ursula von der Leyen announced her intention to consolidate the taxonomy regulation, the CSRD and the CSDDD in an omnibus legislation set to be published in 2025, in order to reduce administrative and reporting burdens and promote EU competitiveness. Indeed, while many concepts are common across these regulations, reporting obligations are “often overlapping”.

The EC adopts new regulation on ESG rating activities

The European Council adopted on November 19 a new regulation on environmental, social and governance (ESG) rating activities, aiming at making rating activities in the EU more consistent, transparent and comparable. In particular, ESG rating providers established in the Union will need to be authorized and supervised by the European Securities and Markets Authority (ESMA).

REPORTING & DISCLOSURES

IOSCO Report on Transition Plans Disclosures

IOSCO has published a report on transition plan disclosures, emphasising the importance of consistent, comparable, and reliable information for investors. Key areas for future action include promoting guidance on transition plan disclosures, assurance, and enhancing regulatory clarity. The report outlines five essential components for effective disclosures: targets, decarbonisation strategies, governance, financial resources, and financial implications. IOSCO encourages alignment with global standards and collaboration with the ISSB to mitigate greenwashing and enhance market integrity​. Read more.

EFRAG publishes revised ESRS for SMEs 

EFRAG has issued a revised ESRS VSME after public consultation. The lighter disclosure framework is designed to minimize the compliance burden for small companies, which may opt into ESRS reporting until it becomes mandatory in 2028. Key changes following the consultation include guidance on exclusions specified in the EU Climate Benchmarks, as well as new data points for SMEs to describe climate-related hazards and transition events and report severe human rights incidents across the supply chain. EFRAG’s Sustainability Reporting Technical Expert Group (SR TEG) has, in addition, proposed the disclosure of the number of self-employed workers exclusively working for the undertaking and temporary workers, with some modifications to the guidance. The ESRS VSME addresses the in-built interlinkages to the EU Taxonomy, recommending that disclosing entities exclude the placeholder for future taxonomy alignment until clear guidelines are made available by the Platform for Sustainable Finance. Read more

EFRAG publishes implementation guidance for transition plans

The guidance document provides “non-authoritative support” to companies required to disclose transition plans under the ESRS framework. This disclosure requirement is cross-cutting, embedded in related EU regulations such as the CSDDD and EU Taxonomy, as well as international frameworks and standards. The guidance provides that companies must disclose credible science-based targets aligned with the 1.5°C goal of the Paris Agreement and outline concrete measures to reduce their carbon footprint across business operations. Additionally, covered entities must disclose investment plans that support portfolio decarbonization and funding for these plans, including EU Taxonomy-aligned CapEx. Overall, the guidance underscores the importance of integrating climate transition plans into the broader corporate strategy, with explicit support from governance bodies, ensuring alignment between sustainability objectives and corporate planning. Once targets are set, companies must ensure that they are tracking their progress in implementing transition plans and take corrective action if they fall behind. The guidance also addresses the interconnectedness of climate and nature, requiring disclosure of how transition plans might impact workers, communities, and ecosystems, and how they may depend on adaptation actions. Read more

UK Financial Reporting Council unveils 2025 Taxonomy suite

The UK Financial Reporting Council (FRC) has released its 2025 Taxonomy Suite, aimed at enhancing digital reporting for entities using UK GAAP, EU-adopted IFRS, and the UK Single Electronic Format (UKSEF) for ESEF filings. This update introduces improved tagging for key disclosures, supporting more accurate, transparent, and comparable digital financial statements. Enhanced taxonomies also align with recent UK regulatory requirements, ensuring consistency in reporting across diverse sectors. This suite is essential for companies adapting to evolving financial reporting standards in the UK. Read more.

To access more information from ESG Book on the evolving global sustainability landscape, see here.