Swiss Set to Toughen Financial Disclosure Rules on Climate

ZURICH, SWITZERLAND - FEBRUARY 21: Snow covered alpine mountains seen from a commercial flight from Athens International Airport to Heathrow Airport on February 21, 2012 in Zurich, Switzerland. (Photo by Oli Scarff/Getty Images)
ZURICH, SWITZERLAND - FEBRUARY 21: Snow covered alpine mountains seen from a commercial flight from Athens International Airport to Heathrow Airport on February 21, 2012 in Zurich, Switzerland. (Photo by Oli Scarff/Getty Images)

(Bloomberg) -- Switzerland is preparing to draw up a law that could toughen the rules for companies’ financial disclosures in regards to climate change.

This week the Swiss officially backed the Task Force on Climate-related Financial Disclosures, a body established by the Basel-based Financial Stability Board.

The task force issues recommendations to help investors and businesses assess their exposure to the risk of climate change in four areas: governance, strategy, risk management and metrics.

Major Swiss companies have already adopted the task force’s recommendations, the government said, and in the course of 2021 a bill should be drafted to make those recommendations binding.

The proposed law would still have to be voted upon by parliament, said a spokesperson for the State Secretariat for International Financial Matters.