In brief

On 1 April 2026, the Swiss Federal Council initiated public consultation on a draft Federal Act on Sustainable Corporate Governance (“D‑CSA”), as a direct counterproposal to the so-called Responsible Business Initiative 2.0, which it recommends rejecting (see the press release and ancillary documents here). With the D-CSA, the Swiss government intends to introduce rules that companies must comply with in their business activities regarding the protection of human rights and the environment. The D-CSA is based on relevant international standards, specifically the current provisions under the so-called Omnibus Directive of the European Union (EU; find our EU colleague’s latest update here). This marks a pivotal step in Switzerland’s ongoing efforts to enhance ESG due diligence and reporting obligations for Swiss companies, building on recent regulatory waves and closely aligning with the future EU framework.

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