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The Swiss Federal Council has opened a consultation on its indirect counterproposal to the popular initiative “For Responsible Large Corporations – For the Protection of People and the Environment” (RBI II). The consultation process runs from 2 April to 9 July 2026.

The proposal forms part of a broader international trend toward enhanced sustainability reporting and corporate due diligence obligations. It also reflects developments at European level, notably the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CS3D).

For Switzerland’s internationally active companies, including commodity traders, exporters, financial institutions and multinational groups, the proposed legislation could have important legal, operational and compliance implications.

A New Swiss Framework for Corporate Sustainability

The draft Federal Act on Sustainable Corporate Governance seeks to establish a comprehensive framework governing sustainability reporting and due diligence obligations relating to human rights and environmental risks.

The proposal is largely inspired by recent European legislation while adapting certain elements to the Swiss legal framework. According to the consultation documents, the framework would primarily apply to large companies and corporate groups exceeding specific thresholds, while most SMEs would remain outside the direct scope of the legislation, although they may be indirectly affected through supply-chain requirements and requests for information from larger business partners.

Among the key elements under consultation are:

• sustainability reporting obligations covering environmental, social, governance and human rights matters;
• due diligence requirements relating to human rights and environmental impacts throughout business activities and value chains;
• external assurance requirements for sustainability reporting;
• civil liability provisions linked to breaches of due diligence obligations;
• the establishment of a supervisory authority responsible for overseeing compliance and enforcement.

Key Issues for Internationally Active Companies

Several business associations have already expressed concerns regarding specific elements of the proposal. Among them is SUISSENÉGOCE, the umbrella association representing Switzerland’s commodity trading sector, which has submitted detailed comments as part of the consultation process.

From the perspective of internationally active companies, a number of provisions merit particular attention.

Civil Liability

The draft introduces civil liability mechanisms linked to breaches of due diligence obligations. In contrast to recent developments at EU level, where the implementation of civil liability provisions has largely been left to Member States, the Swiss proposal envisages a more prescriptive framework.

The proposal also contemplates extending limitation periods from 10 to 20 years in certain cases and introduces questions regarding evidentiary requirements and the treatment of damages occurring abroad. For companies operating through complex international value chains, these elements could significantly increase legal uncertainty and exposure to litigation.

Sustainability Reporting and Assurance

The proposal would expand sustainability reporting obligations and introduce external verification requirements for sustainability-related information.

Particular attention is being paid to the level of assurance that may ultimately be required. More extensive assurance requirements could result in significantly higher auditing costs and more complex compliance processes than those currently envisaged under comparable international frameworks.

The timing and publication requirements associated with sustainability reporting may also create additional operational constraints for companies preparing annual financial statements and sustainability disclosures.

Supervisory Authority and Enforcement Powers

Another significant aspect of the proposal is the establishment of a dedicated supervisory authority responsible for monitoring compliance.

The draft envisages broad investigative and enforcement powers, including the ability to initiate proceedings, request information, impose sanctions and publish findings. The proposal further envisages turnover-based sanctions and a range of additional enforcement measures.

For sectors such as commodity trading, where business models are typically characterized by high transaction volumes and comparatively low margins, turnover-based sanctions could have particularly significant consequences.

The creation of a new supervisory authority also raises questions regarding administrative costs and the overall regulatory burden for companies and public authorities.

International Value Chains and Extraterritorial Effects

Due diligence obligations may extend beyond Switzerland’s borders and affect relationships with suppliers, subsidiaries and commercial partners located in third countries.

As a result, the legislation could have implications throughout international value chains, including in countries with which Switzerland maintains important trade and free trade relationships. Commodity trading companies, manufacturers, financial institutions and other internationally active businesses may therefore face additional monitoring, documentation and compliance requirements across their global operations.

Alignment with International Standards

The proposal is broadly inspired by recent EU legislation. However, implementation of the CS3D within EU Member States remains ongoing and several aspects of the future European framework have yet to be clarified.

In this context, SUISSENÉGOCE and other business associations have highlighted that certain elements of the Swiss proposal may go beyond current EU requirements, potentially creating regulatory divergences that could affect legal certainty, compliance costs and competitive conditions for Swiss-based companies operating internationally. This concern is compounded by the fact that, since the content of the EU Directives CSRD and CS3D is not included in the Bilateral III package negotiated with the European Union, Switzerland is not legally obligated to transpose their content into national law. The extraterritorial dimension of the proposal adds a further layer of complexity. Due diligence obligations extending beyond Switzerland’s borders could affect trade partners through their State-owned companies or their subsidiaries established in Switzerland, as well as producing countries with which Switzerland maintains free trade agreements — including Brazil (Mercosur), Canada, Chile, China, the Gulf Cooperation Council states, India, Indonesia and Mexico. For a trading hub whose entire business model depends on the efficiency and legal predictability of global supply chains, these implications warrant careful consideration.

Relevance for the Swiss Commodity Trading Hub

Switzerland hosts one of the world’s leading commodity trading ecosystems, alongside a large number of export-oriented industrial groups, multinational companies, financial institutions and internationally active service providers.

For these sectors, the debate extends beyond sustainability reporting and due diligence requirements alone. It also concerns the broader question of how Switzerland can pursue sustainability objectives while maintaining internationally competitive framework conditions and preserving its attractiveness as a global business location.

Alongside SUISSENÉGOCE, LCTA has engaged with key institutional stakeholders in Ticino, including the Chamber of Commerce, Industry and Services of the Canton Ticino (Cc-Ti) and cantonal authorities, to raise awareness of the potential implications that the proposal could have for commodity trading companies, exporters and the broader Swiss economy.

The consultation remains open until 9 July 2026, allowing companies, business associations, public authorities and other stakeholders to submit comments before the Federal Council determines the next steps of the legislative process.

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Swiss law currently provides for a cabotage restriction that, subject to limited exceptions, prevents foreign airlines from operating domestic routes within Switzerland.

Against this backdrop, parliamentary initiative 25.447 “Ensuring Efficient Connections. Amendment to the Federal Civil Aviation Act” (text available in IT, DE, FR), submitted by Ticino member of the Council of States Fabio Regazzi and co-signed, among others, by fellow Ticino member of the Council of States Marco Chiesa and by the Geneva representatives in the Council of States, seeks to amend Article 32 of the Federal Civil Aviation Act. Under certain conditions, the proposal would allow airlines based in the EU or EFTA to operate licensed domestic routes within Switzerland.

The initiative specifically aims to promote more efficient connections between Lugano and Geneva, two major Swiss economic and financial centers, as well as important hubs for commodity trading. At present, overland travel between the two cities takes more than five hours.

On May 22, the Transport and Telecommunications Committee of the Council of States (TTC-S) conducted its preliminary review of the initiative and, by 7 votes to 3 with 2 abstentions, voted to advance it through the parliamentary process. The matter will now be reviewed by the corresponding committee of the National Council.

The initiative does not seek a general abolition of the cabotage restriction, but rather the introduction of targeted exemptions in cases where “transport needs cannot otherwise be met in an equivalent manner”. The specific conditions would subsequently be defined by the Federal Council.

Beyond the immediate scope of the proposal, the initiative highlights the issue of Ticino’s connectivity with other Swiss economic centers — a matter of particular relevance for international sectors such as commodity trading, trade finance, and related services.

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LCTA congratulates ASPASI on the positive outcome achieved in support of Lugano Airport. Following the Council of States, the National Council has also rejected the proposed reduction of federal contributions for regional aerodromes.

LCTA supported this joint initiative together with ASPASI and other regional associations, recognizing the strategic importance of Lugano Airport for Ticino’s economy and connectivity.
For more information, please read the ASPASI news (in Italian).

ASPASI Press Release, in Italian (March 06, 2026): “Lugano Airport è salvo: il Nazionale boccia il taglio dei fondi”

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The 2025 edition of the Global Commodities Conference – the flagship event of the Lugano Commodity Trading Association (LCTA) – took place on June 23 and 24 at the iconic LAC Lugano. Over 200 industry leaders and professionals gathered for two dynamic days of insightful discussions exploring the shifting geopolitical landscape and its profound impact on financial markets and commodities trading.

This year’s conference was proudly supported by a distinguished lineup of sponsors: Fidinam Group Holding as Platinum Sponsor; Axion SWISS Bank as Dinner Sponsor; Gold Sponsors Banca Zarattini, Sirius Energy and Telf; and Silver Sponsors Cornèr Banca, Filhet-Allard Maritime and London Metal Exchange. Held under the patronage of the City of Lugano and bolstered by institutional partners including the Ticino Chamber of Commerce and Industry (Cc-Ti), SUISSENÉGOCE, and the Zug Commodity Association, the event was also amplified through a media partnership with Corriere del Ticino.

Certified Commodity Trading Specialist Diploma Ceremony

The conference opened with the diploma ceremony for the second cohort of the Certified Commodity Trading Specialist program, which concluded in January 2025. Fifteen of the seventeen graduates were recognized on stage by LCTA President Matteo Somaini and Cristina Campana of Alma Impact: Zoran Anastasov, Brando Berti, Andrea Crespi Bel’skij, Andrea Brambilla, Gabriella D’Aleo, Ievgeniia Dmukh, Alessio Figliolia, William Kucera, Svitlana Lomatschinsky, Riccardo Maffi, Lorenza Michelini, Stefano Negri, Kaveh Nicjoo, Massimiliano Zanetti, and Ilenia Zendri (absent: Raùl Blanco Cañeque and Meltem Meshur).

Alessio Figliolia received the Best Student Award from Alma Impact’s co-founder and President, Alberto Stival.

Fireside Chat with Sergio Ermotti

A standout moment was the fireside chat with Sergio P. Ermotti, Group CEO of UBS. Mr. Ermotti engaged with LCTA Vice-President Roberto Grassi and the audience on pressing topics including the global economic outlook and the ongoing integration of Credit Suisse, which is progressing well. Outside of Switzerland, the vast majority of clients have already transferred and, by the end of first quarter of 2026, clients in Switzerland will also have migrated.

Mr. Ermotti noted the remarkable resilience of financial markets despite geopolitical shocks, saying markets were surprisingly calm given recent events. Addressing the alleged dollar crisis, he emphasized the absence of viable alternatives due to structural and political constraints in other major currencies and capital markets.

On trade, Mr. Ermotti expressed cautious optimism about future agreements between the U.S., Europe (including Switzerland), and other regions, predicting a shift toward regionalism rather than a full-scale deglobalization, which he emphasized would lead to a severe contraction of global economies. He also reaffirmed UBS’s stance on the Federal Council’s proposed updates to the “too big to fail” banking regulations, cautioning that increased capital requirements raise costs and constrain lending, and underscoring that trust remains the core capital of banking.

Geopolitical Complexity and Industry Resilience

LCTA President Matteo Somaini welcomed attendees to the second day of the Global Commodity Conference 2025, acknowledging the need for trading companies to adapt their business model to the protectionism, to the uncertainty and to a fragmented global landscape while key partners, like banks, are facing their challenges and adjust at different paces.

He welcomed the diverse group of experts and emphasized the growing strategic relevance of Middle Eastern economies. He also pointed to Europe’s limited relevance in current global discussions. Finally, he acknowledged the recent geopolitical upheavals, emphasizing the unforeseen importance of these discussions today.

China and the Global Economy

In a compelling keynote, Professor Keyu Jin (HKUST Business School and Harvard) explored China’s shifting position in the global economy. Amid ongoing trade fragmentation and U.S.-China tensions, she described China as pursuing a strategy of recalibration—enhancing its self-reliance while remaining selectively open to global markets.

Jin noted that while China continues to protect its economic framework and political independence, it is also gradually opening sectors such as finance and services to private initiatives. Domestically, she acknowledged significant structural challenges, including a struggling real estate sector, low consumption, and regional disparities, but highlighted the dynamism of the younger, globally engaged generation as a potential catalyst for change.

Regarding technology, Jin observed that external restrictions—such as U.S. export controls—have spurred a stronger national focus on innovation, with China now aiming for leadership in emerging industries.

Her message underscored that China’s path is one of measured transformation, designed to manage disruptions, redefine trade patterns, and advance its technological development.

Geopolitical Shockwaves and Strategic Uncertainty: A World on the Edge

In her keynote, Emily Harding (Center for Strategic and International Studies, CSIS) reflected on recent geopolitical disruptions—including events in Iran and shifting global alliances—as signs of a broader shift in the international order.

She described how key powers like Russia, China, and the U.S. are increasingly shaping global dynamics through forceful, transactional approaches. U.S. policy under Trump, she noted, is marked by strategic decoupling from China in critical sectors, driven by efforts to bolster national resilience and reduce dependency. This approach is part of a broader populist doctrine that emphasizes economic sovereignty, challenges multilateral frameworks, and relies on strong domestic appeal.

Harding also addressed the internal pressures facing the U.S.—from inflation and inequality to institutional mistrust—alongside the accelerating impact of technologies like AI and biotechnology.

She concluded on a cautiously optimistic note, suggesting that while political volatility remains, technological innovation and a desire for stability among business leaders could help steer the system forward—if governance can keep pace.

The Certainty of Uncertainty: the Turbulent Future of Global Politics and Economics

In his keynote, economist and author Alan Friedman described the current geopolitical and economic climate as marked by persistent uncertainty, fueled by unpredictable leadership, volatile policies, and the global rise of populism.

He characterized President Trump’s approach to foreign and economic policy as protectionist and erratic, raising concerns about the impact of trade tariffs on global stability. In contrast, he noted China’s more deliberate, long-term strategy, particularly in its handling of international relations and economic planning.

Friedman pointed to increasing fragmentation in global politics, including closer ties among authoritarian regimes and growing political unrest in the U.S. He warned of the risks of deglobalization, shifting trade dynamics, and questions over the long-term strength of the U.S. dollar, while suggesting that Europe could emerge as a more attractive investment destination.

Closing his remarks, Friedman drew historical parallels with the interwar period, cautioning that today’s wave of populism and polarization could pose serious challenges to democratic institutions and global stability. He urged continued vigilance in navigating an increasingly unpredictable world.

Experts’ Roundtable: Energy, U.S.-China Rivalry, and AI

Moderated by James May (DITH), the panel discussion brought together Emily Harding (CSIS), Alan Friedman, Mattia Giussani (Sirius Energy), and Nikolai Litvinenko (Telf) tackled the pressing issues shaping today’s geopolitical and economic landscape.

The discussion began with Europe’s efforts to enhance energy independence in response to global disruptions, with panelists emphasizing the role of renewables and innovation in ensuring long-term energy security.

Attention then turned to the strategic competition between the U.S. and China, particularly in the context of manufacturing and control over renewable energy supply chains. While the challenges are considerable, the panel agreed that targeted investment and policy reform could help the U.S. strengthen its position.

Artificial intelligence featured prominently, with debate on its disruptive potential in sectors like energy and finance, the need for stronger cybersecurity, and concerns about its misuse in conflict scenarios. The session concluded with a shared call for greater international cooperation and diplomatic engagement as essential means to navigate uncertainty and support global stability.

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