The Swiss government on Wednesday joined a small number of wealthy countries in setting a timetable for large companies to disclose the risks they face due to climate change.
World powers have called for greater coordination of efforts to measure and report the environmental impact of businesses, a measure seen as vital to efforts to protect the financial system from climate change shocks.
In June, the G7 countries approved mandatory disclosures in line with recommendations made by the Climate-Related Financial Disclosures (TCFD) Working Group. Some policymakers want an agreement to establish global reporting requirements in time for the November UN climate change conference in Glasgow.
In accordance with the recommendations of the TCFD, companies are invited to disclose the real and potential impacts of climate change on their activities, as well as to explain how they identify and manage these risks and opportunities.
France became the first major economy in June to make the rules binding, as it set new targets that will require investors to declare how green their assets are and to set greenhouse gas emissions targets. every five years from 2021.
Britain has proposed that UK companies comply with TCFD recommendations from next year.
Switzerland said its rules would apply to both financial players like banks and insurers as well as state-owned companies with more than 500 employees, more than 20 million Swiss francs ($ 21.9 million) d total assets, or 40 million francs in turnover.
The Ministry of Finance will prepare a bill by mid-2022 on mandatory reporting that “not only includes the financial risk incurred by a company due to climate-related activities, but also discloses the impact of business activities of the company on the climate and the environment, ”said a government statement.
Binding implementation of TCFD recommendations is expected from 2024 for the 2023 fiscal year report, he said.
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