Executive Summary

The Swiss Federal Council opened the consultation on the new Federal Act on Sustainable Business Conduct (NUFG) on April 1, 2026. The act is intended to obligate large Swiss companies to exercise due diligence in the areas of human rights and the environment and serves as an indirect counter-proposal to the popular initiative "For Responsible Large Enterprises." The consultation runs until July 9, 2026. Approximately 30 large enterprises would be directly affected; small and medium-sized enterprises (SMEs) are exempted from the new obligations.

Persons

  • Federal Council (collectively; decision-making body)

Topics

  • Sustainable business conduct
  • Human rights and environmental protection
  • Corporate liability
  • Regulation of large enterprises

Clarus Lead

The NUFG positions itself as a compromise between the demands of civil society and economic interests: it creates binding standards for large enterprises, while relieving SMEs and ensuring international competitiveness through alignment with EU standards. The liability question remains deliberately open – the Federal Council proposes two variants to enable broad parliamentary debate. Decisive is the centralization of oversight with a national supervisory authority, which promises legal certainty and uniform enforcement.

Detailed Summary

The new act is oriented toward international standards, particularly the current EU Omnibus Directive on sustainability reporting. This is intended to enable Swiss companies to remain competitive with their European counterparts. Due diligence obligations will henceforth apply not only to risks in child labor and conflict minerals (previous standard), but comprehensively to human rights and environmental protection. Affected companies must systematically identify risks and take countermeasures.

In sustainability reporting, the act reduces the number of obligated companies from currently 200 to approximately 100 (large enterprises only). New is the mandatory external audit requirement by audit firms. The Swiss Financial Market Supervisory Authority (FINMA) is to assume the central control function – a uniform supervisory model instead of fragmented responsibilities.

On the liability question, the Federal Council proposes two variants: either the liability of parent companies for foreign subsidiaries is explicitly regulated in the NUFG (with injured parties bearing the burden of proof of due diligence violation), or it is clarified that general provisions of the Code of Obligations apply. In both cases, a conciliation procedure in Switzerland is to precede this.

Key Statements

  • Approximately 30 large enterprises are subject to new due diligence obligations in human rights and the environment; SMEs remain exempt
  • Sustainability reporting is limited to approximately 100 companies, with mandatory external audit
  • Liability question remains open: Two variants presented for discussion to preserve parliamentary flexibility
  • National oversight by FINMA creates uniform control instead of decentralized regulations
  • EU harmonization enables competitiveness of Swiss companies

Critical Questions

  1. Evidence/Data Quality: On what empirical basis is the estimate that approximately 30 large enterprises are affected? Were thresholds (revenue, number of employees) defined transparently?

  2. Conflicts of Interest: To what extent has business lobbying influenced the exemption for SMEs? Is there a risk that risks in supply chains of SME suppliers remain unchecked?

  3. Causality/Alternatives: Why is liability deliberately left open rather than clearly defined? Would clear regulation not have created more legal certainty than two competing variants?

  4. Feasibility: Does FINMA have sufficient resources and technical expertise to effectively oversee 30 large enterprises? What sanctions mechanisms are envisaged?

  5. Source Validity: The text relies on Federal Council decisions – are the legislative proposals already available in draft form, or are these conceptual announcements?

  6. Side Effects: Could the limitation to large enterprises lead to outsourcing strategies in which risks are shifted to SME subcontractors?

Bibliography

Primary Source: Federal Council – New Act for Sustainable Business Conduct Increases Protection for Human Rights and the Environment and Relieves SMEs – https://www.news.admin.ch/de/newnsb/UDalr4CV5UX2_sLwdBHN_

Verification Status: ✓ 02.04.2026

This text was created with the support of an AI model. Editorial Responsibility: clarus.news | Fact-Check: 02.04.2026