Swiss companies are under pressure when it comes to sustainability and the climate reporting landscape. Companies are now subject to a wide-ranging alphabet soup of standards and regulation. A Swiss Federal Government study in 2023 estimated that 50,000 companies in Switzerland are indirectly affected by new sustainability disclosure regulations.
On May 17th, GreenBuzz, CelsiusPro and Pelt8 gathered a diverse audience at SIX ConventionPoint to discuss reporting and its bigger goals at the second annual Swiss Climate Reporting Forum (SCRF). For many companies, the focus right now is on transparency and ‘getting it right’ in terms of data collection, assessments and reporting. Yet, as companies grapple with the regulation (and resources), it is important not to lose sight of the bigger picture – that is, the wider transformation goals, with climate-built in?
Keeping the big picture in mind
There’s no doubt that regulation is driving sometimes difficult conversations within companies and sectors about climate-related risk – more than ever before – whether that’s talking about reporting, avoiding greenwashing, or a company’s human rights and nature impacts.
Companies need to be concerned with creating impact and becoming resilient, not just reporting, said Magali Anderson, board of directors at Anglo American and formerly at Holcim. So, assign your head of sustainability (CSO) to a strategic role in the company and give them a place at the top table – whether that’s the executive committee or the top management team.
Sustainability should drive the strategy – the data acquired for reporting can inform this. In the words of a panelist, “the data should drive the strategy – it doesn’t end with the data”.
Purpose matters and is driven from within the company. “People don’t buy brands, they buy into a brand,” said Oliver Brunschwiler, former CEO of Freitag and Chief Innovation Officer at EBP.
Building a movement works, as Jonathan Normand, Founder and CEO of the non-profit, B Lab (Switzerland) has demonstrated. Switzerland has the biggest community of certified B Corps in the world per capita.
Companies should participate in the UN COP process – the annual global climate change meetings, said Nathalie Flores, Vice-chair of the UN Climate Change Science & Technology Body. The private sector should formally have their voice heard in the negotiation process at the next UN COP, via their country representative.
Data and reporting across operations and supply chain
The evolving landscape in reporting is prompting a change in the role of the sustainability teams, as reporting gets finance, compliance and audit teams involved. A key topic for businesses is data accuracy, particularly as it relates to the organisations’ supply chain.
Disclosure is better than nothing. Rosa Sangiorgio, Head of Sustainability at Pictet Wealth Management stated that there’s a big difference between estimations and real data – estimations are often based on sector averages, not the actual policy of the company, which as has an impact on financial reporting.
When business focuses on its contributions to nature and biodiversity, it’s also contributing to its net zero goals. Stephanie Feeney, Chief Growth Officer at Restor said: “It's time to get out of our silos and stop thinking of climate and nature as separate challenges. Companies can pre-empt what's coming by starting to consider nature risks and impacts."
SMEs within global supply chains are under pressure to respond to demands for disclosure from their larger customers. Lana Ollier, head of global sustainability at Huber+Suhner, said that these smaller companies face challenges due to resource constraints – as customer demands come on top of the rating and reporting requirements.
There needs to be a pragmatic approach for SMEs to deal with the new KPIs for reporting. Lana referred to the regulatory wave hitting them with “full force” but said that reporting against GRI has helped as a starting point.
More KPIs within business is needed on adopting circularity, social impact and nature.
Business in conflict with nature and climate
Yet, in Switzerland – as in many other countries – the stark reality that business interests often trump sustainability and the need for long-term transitional thinking to climate change was raised by Ingrid Beutler, co-founder of the Sustainable Mountain Alliance.
Stubborn optimism
But we must never give up, attendees were told by Elisabeth Stern from KlimaSeniorinnen, who made international headlines last month when theywon a landmark case in the European Court of Human Rights (ECHR) against the Swiss government on climate grounds. It was a eight-year journey with an outcome that holds the Swiss government accountable for not doing more to reduce the health impact of climate change on its senior citizens. The case has now set a precedent throughout Europe.
About Pelt8
Founded in August 2021, Pelt8 aims to make sustainability accessible. Their solution enables climate action by offering a platform with scalable processes and controls to collect sustainability-related data in an easy and auditable way. The platform supports international reporting standards, bespoke management reports, and automates reporting.
About GreenBuzz Zurich
GreenBuzz Zurich is a sector-overarching network of business changemakers. They organize insightful events and workshops that enable knowledge-transfer and forge powerful connections, paving the way to a sustainable future.
Their aim is to connect purpose-driven people and to make sustainability the new normal in business.
About CelsiusPro
CelsiusPro is an InsurTech company for climate risk and NatCat based in Zurich. CelsiusPro has been providing bespoke and comprehensive climate risk reporting (TCFD compliant) and climate risk transfer products to global public and private sector clients for over a decade.
