08 September 2025

ESG: Federal Council sets course for sustainable corporate governance – with an indirect counterproposal

  • Articles
  • Legal
  • Governance / ESG

At its meeting on 3 September 2025, the Swiss Federal Council announced that it will counter the popular initiative for sustainable corporate governance with an indirect counterproposal, which will be published in March 2026.

  • Adrian Peyer

    Legal Partner

The goal:

  • Swiss companies must respect human rights and protect the environment – while staying competitive internationally.
  • Regulations will be aligned with international standards, especially with the EU’s upcoming Omnibus Directives.

What this means in practice:

  • Large Swiss companies are already required to report on ESG risks (environment, social, employees, human rights, anti-corruption).
  • For child labor and conflict minerals, extensive due diligence and reporting obligations apply.
  • The new legislative changes aim to stay in step with EU rules, ensuring Swiss companies are not at a disadvantage.

Next steps:

  • The Federal Council will define the details once the EU’s final rules are clear.
  • A consultation draft will be presented by March 2026.
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