Tag Archives: CapLaw-2021-61

FINMA’s New Climate Risk Disclosure Requirements as a Step Towards a More Comprehensive Mandatory ESG Disclosure Regime in Switzerland

Recent years have seen regulatory institutions around the world introduce mandatory corporate disclosure regimes related to climate and environmental, social and governance (“ESG“) matters, largely as a response to the increasing materialization of ESG risks, in particular global heating and climate-driven natural catastrophes, as well as the growing awareness of the importance of full and transparent disclosure of the impact these risks have on corporations’ business and financial stability. They are also intended to create transparency around the effect that rapidly changing legislation and government policy in respect of environmental matters, such as the prioritization of renewable energy over fossil fuels, have on corporate entities within certain sectors. 

The global trend towards disclosure regimes of this kind is rapidly accelerating. In Switzerland, a number of initiatives have been introduced that represent first steps towards the corporate disclosure of ESG risks. Most recently, the Swiss Financial Market Supervisory Authority FINMA (“FINMA“) introduced a new climate risk disclosure regime earlier this year. This article first examines the requirements and impact of FINMA’s new regime, and follows by situating this initiative within the broader context of Swiss and international ESG disclosure regimes. 

By Deirdre Ní Annracháin (Reference: CapLaw-2021-61)