{"id":20088,"date":"2022-11-21T10:06:29","date_gmt":"2022-11-21T10:06:29","guid":{"rendered":"https:\/\/crigroup.com\/?p=20088"},"modified":"2024-01-15T08:13:09","modified_gmt":"2024-01-15T08:13:09","slug":"know-your-swiss-corporate-reporting-and-due-diligence-obligations","status":"publish","type":"post","link":"https:\/\/crigroup.com\/ar\/know-your-swiss-corporate-reporting-and-due-diligence-obligations\/","title":{"rendered":"Know your Swiss Corporate Reporting and Due Diligence Obligations"},"content":{"rendered":"
Switzerland has introduced new Corporate Reporting and Due Diligence obligations in connection with conflict minerals and child labour to improve human rights protections around the world.<\/span><\/p>\n Switzerland is following international trends and regulations for non-financial reporting and human rights due diligence and the reforms include new rules in the Swiss Code of Obligations related to the trade of minerals and metal ores originating from conflict-affected zones. The resources are reportedly being extracted using forced labour and are a known source of finance for armed conflict, says the EU. The EU implemented the Conflict Minerals Regulation last year as a means of restricting access to these natural resources.<\/span><\/p>\n Companies with registered offices or principal places of business in Switzerland have to comply with these due diligence obligations in their supply chain when dealing with the highlighted minerals and metals in Switzerland. They also need to comply with the due diligence duties if they offer goods or services that have suspected links to child labour. The import and processing of recycled materials are not subject to the new rules.<\/span><\/p>\n These corporate reporting and due diligence obligations will apply from the start of the financial year in 2023 to Swiss companies of public interest, which as a group together with their controlled companies in Switzerland and abroad meet both of the following requirements over two consecutive financial years:<\/span><\/p>\n Companies’ annual reports should cover environmental, social, and employee aspects, human rights, and anti-corruption. It must outline risks and mitigation measures and the relevant due diligence concepts adopted. Foreign companies related to the corporation must also be covered in the report approved by management and shareholders and must remain public for 10 years.<\/span><\/p>\n The first reports have to be published in 2024 and failure to do so may result in a fine of up to 100,000 Swiss francs. A report need not be prepared if a written explanation for its absence is provided.<\/span><\/p>\n Businesses are required to have or put in place a suitable management system containing their supply chain policy, a system of supply chain traceability, risk assessments, and mitigation measures. This information must be available through on-site controls, and communications with authorities and civil society.<\/span><\/p>\n Companies should publish reports on due diligence obligations. These should be accessible for at least 10 years. Making false statements in a report, or failing to comply with the reporting obligation, may lead to a fine of up to 100,000 Swiss francs. Where the failures are negligent rather than intentional, a fine of up to 50,000 Swiss francs could be imposed.Requirements for Corporate Reporting and Due Diligence\u00a0<\/h2>\n
\n
<\/span>