The Swiss approach to sustainability works
In this area, Switzerland has chosen to focus on coordination at the international level, that is, on cooperation and collaboration. This was the main reason why she took a stand against the Responsible Business Initiative, which aimed to solve global problems at the national level with a conflict-inducing strategy. Switzerland’s approach has proven itself, as a study commissioned by the Confederation and published in 2023 clearly shows: In recent years, Swiss companies have significantly developed their processes in the area of sustainability. More than 80% of large companies and more than 60% of SMEs now implement due diligence processes throughout their global value chains, with a focus on human rights and environmental protection.
The economy, a key to a sustainable future
Swiss companies invest in sustainable technologies around the world, develop solutions to global challenges and set benchmarks for the responsible conduct of economic activities. The key role of the economy for a sustainable future is widely recognized. The economy is also open to the development of regulations in Switzerland. Sustainability has also become a central element of modern business management and it is important that the legal framework reflects this.
The Coalition for Responsible Multinationals presented an initiative proposing such a development a few days ago. Its aim is to transpose due diligence requirements in Switzerland, drawing largely on the EU directive on corporate due diligence.
Great uncertainties over the future of EU sustainability regulation
The European directive on corporate due diligence is part of the “Green deal” with which the European Commission, led by Ursula von der Leyen, wishes to make Europe the first climate-neutral continent by 2050. This deal includes more than 168 legislative initiatives and aims for a comprehensive transformation of industry, energy supply, agriculture, transport and society in the 27 member states. At the same time, this reform considerably expands state controls, and places companies face increasingly complex requirements – including heavy bureaucratic, documentation and control obligations throughout global value chains.
This growing regulatory pressure is generating increasing resistance within the EU. The Budapest Declaration adopted by EU Member States in November 2024 thus marks an important change in attitude. She asks the European Commission to take greater account of economic acceptability in its work and to reduce the burden of regulation on businesses. Ursula von der Leyen herself admitted that the EU had probably regulated “too much and too quickly”. In response, the European Commission announced that it would comprehensively review key laws and directives, including the EU’s Corporate Due Diligence Directive, with the aim of reducing charges by at least 25%. thinking about business. Given developments within the EU, the new initiative for responsible multinationals already seems outdated at the time of its launch.
Switzerland must draw the right conclusions from current international developments
Switzerland needs rules that encourage sustainability without overburdening businesses. Otherwise, regulation is counterproductive – and causes people to leave difficult regions or break down trade relations, for example.
We clearly need to draw the right conclusions from experiences across the world in sustainability regulation. Strong criticism of recent EU sustainability requirements highlights the weaknesses of an overly rigid approach. Countries such as Canada, the United Kingdom, Australia and Japan are showing, within the framework of the OECD, that more flexible mechanisms that take into account the needs of SMEs ultimately make it possible to promote sustainability more effectively.
The original version of this article byErich Herzogmember of the management of economiesuisse, and of Denise Laufermember of the management of SwissHoldings, appeared in the NZZ an Sonntag on January 12, 2025.
