Due diligence and reporting obligations for companies - practical guide "in a nutshell
On January 1, 2022, the provisions entered into force which provide for a reporting obligation of companies on non-financial matters(Art. 964a et seq. CO) as well as due diligence and reporting obligations in the areas of conflict minerals and child labor(Art. 964j et seq. CO). The reports must be prepared for the first time for the 2023 financial year. Anyone who intentionally makes false statements in the report, fails to report or fails to comply with the legal obligation to retain and document the reports may be fined up to CHF 100,000. Negligent acts are punishable by a fine of up to CHF 50,000.
One thing is clear: the obligations that came into force at the beginning of 2022 must now be fulfilled. But who is actually subject to the duty of care and reporting in Switzerland? And what does that mean in concrete terms?
The following overview is intended to provide answers to these two questions and to enable an initial risk assessment.
The Swiss provisions are largely aligned with those currently in force in the EU (Directive on disclosure of non-financial and diversity information by certain large companies and groups, NFRD). The "Corporate Sustainability Reporting Directive" (CSRD), which is expected to come into force in 2024, is expected to significantly expand the group of companies affected.
Report on non-financial matters (Art. 964a et seq. CO)
Report on payments to government agencies (Art. 964d et seq. CO)
Due diligence and reporting obligations in the area of minerals and metals from conflict areas (Art. 964j ff. OR)
Due diligence and reporting obligation in the area of "child labor" (Art. 964j ff. OR)
Should you require any further assistance with the preliminary clarification or the preparation of the reports, we will be happy to assist you. Please contact Balthasar Wicki and Vivien Keiser.