Thousands of Swiss companies affected by new EU due diligence obligations
Published: Friday, Dec 22nd 2023, 12:10
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The planned new EU directive on due diligence obligations for companies will have a direct impact on hundreds of companies in Switzerland and an indirect impact on several thousand others. This is the conclusion of a study commissioned by the federal government, the findings of which were published by the Federal Council on Friday.
In Switzerland, following the "no" vote on the Responsible Business Initiative and the entry into force of the indirect counter-proposal, large companies have had to report on risks in the areas of the environment, social affairs, employees, human rights and anti-corruption, as well as on measures to combat these, since 2022. Special obligations apply to child labor and conflict minerals.
The EU now wants to go even further in a planned directive. In future, it will apply to all companies above a certain size. In addition, the EU envisages civil liability with fines and compensation in the event of breaches, as well as official supervision. The EU reached an agreement on this in mid-December.
Due to the close links between Switzerland and the EU, both large and small Swiss companies will be affected by this new regulation, according to the report. Several thousand companies are likely to be indirectly affected because those directly affected are likely to pass on the requirements to their suppliers. However, as the new EU directive has not yet been definitively adopted, its impact cannot yet be conclusively assessed, according to the Confederation.
Second initiative in the pipeline
The Federal Council first wants to wait and see how the EU member states implement the directive. The government will then decide on how to proceed.
The Coalition for Corporate Responsibility, which launched the first popular initiative on the subject, is moving too slowly. Back in November, it announced a possible second national initiative for uniform rules like those abroad. It wants to put pressure on the Federal Council and ensure that the issue is not put on the back burner.
On the subject of sustainability reporting, however, the Department of Justice wants to bring Swiss law into line with international regulations. A consultation draft should be available by mid-2024.
©Keystone/SDA
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