The Swiss government has initiated a consultation to enhance corporate sustainability disclosure regulations, mandating that companies develop "net-zero roadmaps" aligned with the nation's goal of achieving net-zero greenhouse gas emissions by 2050. This proposal seeks to amend the existing Ordinance on Climate Disclosures, which came into effect in January 2024, requiring large companies and financial institutions to report on climate-related factors such as greenhouse gas emissions, climate risks, and transition plans.
A significant aspect of the new proposal is the expansion of the reporting scope. The current threshold applies to companies with over 500 employees; the amendment proposes lowering this to include companies with at least 250 employees, CHF 25 million (€26 million) in total assets, or CHF 50 million (€52 million) in sales. Additionally, companies would be permitted to fulfill their climate reporting obligations by aligning disclosures with internationally recognized standards such as the International Sustainability Standards Board (ISSB) or the European Sustainability Reporting Standards (ESRS).
The proposal also stipulates that climate reporting be provided in electronic formats that are both human- and machine-readable, facilitating publication on international platforms. These measures underscore Switzerland's commitment to enhancing corporate transparency and aligning with global sustainability standards
Updapt Views:
Companies can adopt Switzerland’s climate disclosure rules by assessing emissions, aligning with ISSB or ESRS frameworks, and leveraging digital tools for reporting. Training employees, consulting experts, and integrating net-zero goals into strategies are vital.
The Canadian government has set an ambitious new climate target, committing to reduce greenhouse gas emissions by 45–50% below 2005 levels by 2035. This builds upon the nation’s current 2030 goal of a 40–45% reduction and aligns with its long-term plan to achieve net-zero emissions by 2050. The government highlights this as a practical and forward-looking approach to address climate challenges while balancing economic priorities.
This updated goal demonstrates Canada’s dedication to climate leadership, with a focus on implementing innovative technologies and sustainable practices. It reinforces ongoing efforts to transition toward cleaner energy sources and strengthen the resilience of key sectors. The plan underscores the nation’s commitment to meeting international environmental standards and supporting global sustainability initiatives.
The Canadian Net-Zero Emissions Accountability Act will guide progress toward the new target, requiring the development of a detailed plan by 2029. This plan will outline strategies and measures to achieve these reductions, ensuring a comprehensive and transparent pathway to a more sustainable future.
Updapt Views:
This step by the Canadian government provides a clear and structured framework for emissions reductions, enabling companies to align their strategies with national climate goals. It creates opportunities for businesses to innovate and invest in cleaner technologies, boosting competitiveness in the growing green economy. By fostering a predictable policy environment, it encourages private-sector participation in sustainability initiatives, positioning companies to benefit from global demand for low-carbon products and solutions.
The European Commission has released a comprehensive set of frequently asked questions (FAQs) to assist investors in navigating the EU Taxonomy, a framework that classifies sustainable economic activities. This initiative aims to enhance the Taxonomy's usability and alleviate the administrative burden on companies adhering to the EU's sustainable finance regulations.
The EU Taxonomy is integral to the EU Action Plan on Sustainable Finance, providing a standardised system to identify economic activities that significantly contribute to environmental objectives without causing substantial harm to others. These objectives encompass climate change mitigation and adaptation, sustainable use and protection of water and marine resources, transition to a circular economy, pollution prevention and control, and the protection and restoration of biodiversity and ecosystems.
The newly published FAQs offer technical clarifications on various aspects of the Taxonomy, including general requirements, interoperability with the Corporate Sustainability Reporting Directive's European Standards for Sustainability Reporting, verification and assurance obligations, and specific technical screening criteria for each environmental objective. Additionally, the FAQs address the 'Do No Significant Harm' criteria, ensuring that activities contributing to one objective do not adversely impact others.
Updapt Views:
The European Commission's guidance on the EU Taxonomy simplifies sustainable finance compliance, enabling investors and businesses to classify activities aligning with environmental goals efficiently. This step promotes transparency, reduces administrative complexity, and ensures consistency across sustainability reporting frameworks. By clarifying technical requirements, it fosters informed investment decisions and accelerates the transition to a more sustainable, green economy.
The UK has taken a significant step toward enhancing sustainability reporting by proposing the adoption of the IFRS Sustainability Disclosure Standards, IFRS S1 and S2, for its companies. This initiative aligns the UK with other leading economies that are committing to standardized, transparent ESG reporting to drive global sustainability efforts.
A key recommendation includes extending the "climate-first" implementation phase to two years. This allows companies to prioritize climate-related disclosures initially, ensuring a smoother adaptation process before incorporating broader sustainability risks. This phased approach is designed to balance the urgency of climate action with the practicalities of comprehensive reporting.
The next phase involves a government review and consultation on exposure drafts, anticipated in early 2025. Once finalized, these standards will integrate into the UK's regulatory framework, reinforcing the country’s position as a leader in sustainability and ESG. This move underscores the commitment to consistent, high-quality sustainability disclosures, crucial for advancing corporate accountability and fostering a sustainable economic transition.
Updapt Views:
To prepare for the adoption of IFRS Sustainability Standards, companies should enhance their ESG frameworks, focusing on robust data collection and transparent reporting processes. Embracing technology for efficient tracking, integrating sustainability into corporate strategy, and fostering cross-department collaboration are key. Training leadership and teams on evolving standards and proactively engaging stakeholders will ensure alignment. By embedding sustainability at their core, companies can seamlessly adapt, driving both compliance and long-term value creation.
Thailand has launched its first sustainability-linked bond (SLB), raising 30 billion baht (around $865 million). This 15-year bond connects its interest rate to the achievement of specific environmental goals, signaling a commitment to integrating sustainability into financial strategies. This issuance marks a significant step as the first SLB in Asia and the third globally.
The bond’s terms are tied to two targets: reducing greenhouse gas emissions by 30% by 2030 from projected levels and increasing registrations of zero-emission passenger vehicles to 440,000 units annually by the same year. These conditions create financial incentives for the country to meet its sustainability objectives, with interest rates potentially adjusting based on the success or failure to achieve the goals.
Investor demand for the bond was strong, exceeding the initial target by 2.8 times and leading to an increased issuance amount. This reflects the growing interest in sustainable finance in the region. The government has also indicated plans for further sustainability-linked bonds in the coming years.
Updapt Views:
The sustainability-linked bond will support Thailand in achieving its environmental goals by directly tying financial incentives to measurable progress. By focusing on reducing emissions and increasing zero-emission vehicle registrations, the bond encourages sustainable practices, enhances investor confidence, and aligns the country’s financial strategies with its long-term development objectives.
