In recent years, the European Union (EU) has worked hard to achieve its sustainability goals through extensive regulation. The centerpiece of these efforts is the European Green Deal, an ambitious program aimed at making the EU climate neutral by 2050. This roadmap has given rise to a whole series of new directives and regulations that affect all economic sectors and are a source of major challenges for businesses.
One of these more than 160 new regulations is the Sustainability Reporting Directive (CSRD). Although the deadline has expired, 17 EU member states have not yet transposed it into national law. In response, the European Commission launched infringement procedures against these countries in September 2024. These delays show that the rules provided for in the directive are difficult to implement. In doing so, the directive undermines legal certainty and harmonization of the European market.
EU member countries face comparable challenges. The German Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz, abbreviated LkSG) is the subject of strong criticism. Business associations, the German Ministry of Economic Affairs and even the Chancellor criticize its high administrative requirements, which especially pose a problem for small and medium-sized businesses. We realize that strict value chain laws impose considerable costs on businesses, without actually improving human rights and environmental standards. Robert Habeck, the German Minister of the Economy (Green), declared at the beginning of October that the law had “gone in the wrong direction” and that it was not a question of making isolated improvements but of restoring more individual responsibility to businesses. As long as this is embodied, we can “start the chainsaw and slash the law”.
These developments show that Brussels’ regulatory tsunami not only brings with it a mass of bureaucracy, but also seriously threatens the competitiveness of the economy.
“When it comes to sustainability regulations, Switzerland must go its own way”
In this context, it is crucial that Switzerland exercises caution when implementing international sustainability developments. The EU’s provisions are well-intentioned, but risk significantly undermining economic competitiveness without creating added value for the environment or human rights. The EU’s regulatory dynamism under the Green Deal shows that the political will to promote sustainability often comes at the expense of practical implementation.
Switzerland must remain independent and question developments within the EU. It must not blindly follow the regulatory progress of the EU and the Green Deal.
“We need pragmatic solutions rather than excessive regulations”
It is in Switzerland’s interest to adopt rules compatible with those of the EU, but also with international standards, without self-censorship. It does not seem impossible that the EU will now have to rectify the important regulations of recent years in the light of economic realities. Switzerland must therefore act wisely, distance itself from unsuitable models and instead refer to truly international, that is to say global, standards.
An independent, compatible and balanced sustainability policy will not only benefit the Swiss economy, but will also help to preserve Switzerland’s attractiveness as an economic location.
“We must seize the opportunities”
Developments within the EU clearly show the challenges of implementing complex or even impossible-to-implement rules. Switzerland has the opportunity and the duty to learn from this and find a path that takes into account global sustainability goals and guarantees the competitiveness of our economy. It is time to develop solutions that are workable and effective for business, the environment and society.
