Switzerland has launched a consultation on its proposed Sustainable Corporate Management Act (SCMA), aiming to align national ESG regulations with European Union frameworks while maintaining competitiveness. The Swiss Federal Council described the proposal as a balanced alternative to the earlier Responsible Business Initiative, seeking a coherent and internationally compatible system without exceeding EU requirements.
The proposed law introduces a two-tier system, applying stricter due diligence rules to very large multinational companies while imposing broader sustainability reporting obligations on other large firms. Enforcement measures include fines of up to 3% of global turnover, potential civil liability for harm caused abroad, and exclusion from public procurement for non-compliance.