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Due diligence and transparency obligations in the area of minerals and metals from conflict zones and child labour as well as non-financial reporting obligations came into force in Switzerland on January 1, 2024. On March 15, 2024, the Council of the European Union approved the Corporate Sustainability Due Diligence Directive (CS3D), which will affect both EU and non-EU companies with a significant turnover in the EU. In an increasingly complicated legislative framework, businesses must have the necessary tools in place to meet legal requirements and conduct focused due diligence.<\/strong><\/p>\n\n\n\n Following the rejection in 2020 of the Swiss popular initiative on mandatory environmental and human rights due diligence (commonly referred to as the \u201cResponsible Business Initiative, RBI)\u201d, the counterproposal sponsored by the Swiss Federal Council in the form of an amendment to the Swiss Code of Obligations came into force on January 1, 2024, providing non-financial reporting obligations as well as due diligence and transparency obligations in the area of minerals and metals from conflict zones and child labor.<\/p>\n\n\n\n As per Ordinance on Climate Disclosure<\/strong><\/a> (Italian version), starting from the fiscal year 2023, public companies, banks and insurance companies with 500 or more employees and at least CHF 20 million in total assets or more than CHF 40 million in turnover are obliged to report on non-financial matters and disclose publicly environmental, social, labor, human rights and corruption risks, as well as steps taken to address them (see Articles 964a-964c of the Code of Obligations<\/strong><\/a>).<\/p>\n\n\n\n Companies fulfilling these requirements but are controlled by a company falling within the abovementioned scope of application or having to prepare an equivalent report under foreign law, are exempt from the non-financial reporting obligations.<\/p>\n\n\n\n Companies exposed to risks in the sensitive areas of child labor and minerals from conflict zones must meet specific due diligence and reporting requirements if the thresholds for the import and processing of minerals and metals from conflict zones, set out in Annex I of the Ordinance on Due Diligence and Transparency Obligations in relation to Minerals and Metals from Conflict-Affected Areas and Child Labor (DDTrO)<\/strong><\/a> are exceeded (also see Articles 964k-964l of the Code of Obligations<\/a><\/strong>).<\/p>\n\n\n\n The minerals category includes ores, gold and concentrates containing tin, tantalum or tungsten. Metals are those containing or consisting of tin, tantalum, tungsten, or gold \u2013 also in form of by-products.<\/p>\n\n\n\n Due diligence obligations include implementing and maintaining a management system as well as establishing a supply chain policy and a supply chain traceability system.<\/p>\n\n\n\n The OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas<\/a> <\/strong>and the Regulation (EU) 2017\/821<\/strong><\/a> serve as reference.<\/p>\n\n\n\n The Swiss Federal Council is now analyzing the implications of the European Union\u2019s Corporate Sustainability Due Diligence Directive (CS3D) for Swiss companies and is expected to decide on the next steps to take once the final version of the CS3D is released and the mechanisms by which the EU Member States will implement this Directive are known.<\/p>\n\n\n\nSwiss Regulations<\/h2>\n\n\n\n
Non-financial reporting obligations<\/strong><\/em><\/h3>\n\n\n\n
Due diligence and transparency in relation to metals and minerals from conflict zones and child labour<\/strong><\/em><\/h3>\n\n\n\n
The EU CS3D<\/h2>\n\n\n\n