Switzerland has introduced a proposed Sustainable Corporate Management Act (SCMA), aimed at aligning its corporate sustainability regulations with key European Union frameworks such as the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD).

The proposed law establishes a structured ESG framework covering sustainability reporting, due diligence, and supply chain governance, with requirements varying based on company size and risk exposure. The approach is designed to improve consistency with EU sustainability regulations while maintaining Switzerland’s competitiveness in global markets.

The SCMA introduces enhanced expectations around ESG disclosures, corporate governance, and environmental and human rights due diligence, reflecting a broader shift toward harmonized sustainability reporting standards across jurisdictions.

As global ESG regulations continue to converge, companies operating across regions may need to prepare for aligned reporting requirements, improved data consistency, and increased regulatory scrutiny. This includes ensuring that ESG data, disclosures, and governance processes are consistent with evolving international standards.

The proposal is currently under consultation and represents a step toward greater interoperability between Swiss and EU sustainability frameworks, supporting more comparable and decision-useful ESG reporting across markets.