Switzerland launches consultation on the NUFG: New federal law on sustainable corporate governance planned

With the new draft bill for the Federal Act on Sustainable Corporate Governance (VE-NUFG), the Federal Council presents an indirect counterproposal to the popular initiative “For responsible large companies – to protect people and the environment.” At its meeting on April 1, 2026, the Federal Council opened the consultation process. Stakeholders may submit their comments until July 9, 2026.

Since January 1, 2022, the Swiss Code of Obligations (Art. 964a et seq. CO) has required around 200 large public-interest companies with more than 500 employees to report on risks and measures related to environmental, social, human rights, and anti-corruption matters—without a prescribed reporting standard and without a mandatory external audit. In addition, specific due diligence obligations apply with regard to child labor and conflict minerals.

The NUFG is intended to replace these regulations. It closely aligns with EU frameworks such as the CSRD and CSDDD following the completion of the Omnibus initiative, and consolidates sustainability reporting as well as human rights and environmental due diligence into a dedicated law. The existing provisions on child labor and conflict minerals will remain in force.

What changes does the VE-NUFG propose?

• ‍Clear liability framework: Explicit liability provisions are planned for companies subject to due diligence obligations—either defined directly within the NUFG or based on the general liability rules of the Swiss Code of Obligations (CO).
• Government oversight: Affected companies are to be placed under the supervision of a regulatory authority and will be required to appoint an authorized representative in Switzerland.
• Third country legislation: The obligations should now also apply to foreign companies with branches or significant turnover in Switzerland
• Mandatory external audit: Sustainability reports will in future be subject to external assurance with limited assurance.
• ‍Risk-based approach: Due diligence obligations will extend across the entire value chain, with a focus on the most likely or most severe risks.

Scope: Who will be affected by the NUFG?

• For sustainability reporting, the proposal sets the threshold at more than 1,000 full-time equivalents (FTEs) and more than CHF 450 million in global revenue. The previous criterion of stock exchange listing will no longer apply.
• For due diligence obligations, the proposed threshold is higher: more than 5,000 FTEs and more than CHF 1.5 billion in revenue.

SMEs are not directly affected but should expect information requests from their supply chains. The proposed thresholds are therefore comparable to those under the EU’s CSRD and CSDDD. The values remain the same, with the only difference being the currency. Based on the current exchange rate, this would result in slightly higher thresholds in Switzerland than in the EU (CHF 450 million ≈ EUR 490 million).

Reporting in accordance with international standards

The VE-NUFG does not prescribe a Switzerland-specific reporting standard. Instead, reports must comply with a standard used within the EU or an equivalent framework—meaning that, in practice, the ESRS will serve as the primary reference. The Federal Council will further specify which standards are considered equivalent.

Process and timeline

• April 1, 2026: Consultation process opened
• July 9, 2026: End of consultation period — submissions can be made
• After consultation: Revision of the Draft and Submission to the Federal Assembly
• End of 2026/beginning of 2027: Parliamentary Debate
• End of 2027/beginning of 2028: Public referendum as a counterproposal to the Responsible Business Initiative 2.0‍
• After Entry into Force: Transition period of around two years envisaged‍
• Not before 2029: First implementation of NUFG expected

How Tanso supports

Tanso enables sustainability reporting in line with CSRD and ESRS through an audit-ready, AI-powered platform—including double materiality assessments. For Swiss companies likely to fall within the scope of the VE-NUFG, it is advisable to start with a pilot report today. This allows organizations to test data availability, processes, and internal responsibilities at an early stage.