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SwissHoldings rejects the draft counterproposal to the Responsible Business Initiative published today by the Federal Council in its current form. In an economic climate that is already challenging for multinational companies, this would lead to additional regulatory burdens and new liability risks. At the same time, the proposal does not sufficiently take into account current international developments in sustainability regulation, which increasingly aim for a stronger focus on materiality and simplification. The bill in its current form would amount to a “Swiss Finish” that is detrimental to our business location.
Switzerland already has a differentiated and effective regulatory framework in the area of sustainability. SwissHoldings is not opposed to a targeted and impact-oriented development of existing sustainability regulations. However, this requires that new requirements be practicable and internationally coordinated. The present draft for an indirect counterproposal to the initiative “For responsible businesses – protecting human rights and the environment” does not meet these requirements.
No Additional Liability Provisions
In particular, the liability regime envisaged in the counterproposal must be clearly rejected. It is unique internationally. At EU level, a conscious decision was made against harmonizing the liability regime, and the implementation practices of member states are currently still unclear. The proposed instruments would not increase legal certainty, but rather, increase complexity, create counterproductive hurdles, and generate additional risks for Swiss companies. This leads to competitive disadvantages compared to foreign companies and weakens Switzerland as a business location. Furthermore, effective liability mechanisms already exist under Swiss law. Instead of introducing new liability models, the focus should be on internationally coordinated and practicable solutions.
Swiss Finish with Negative Effects on the Country’s Attractiveness
The draft also goes significantly beyond EU-level regulation in other respects, such as regarding the new supervisory authority and the scope of audits. Contrary to the stated goal of aligning with relevant international standards—namely EU-level regulation—the Federal Council is thus creating an unnecessary Swiss exception. The counterproposal creates unnecessary bureaucratic burdens in an already tense international economic climate.
Companies Are Part of the Solution
The member companies of SwissHoldings are clearly committed to responsible corporate governance. They make substantial contributions to sustainable development worldwide. “Our companies are part of the solution and act responsibly in a challenging regulatory environment. It is crucial that sustainability and competitiveness remain in balance in the future as well. In this regard, the counterproposal represents a step backward and jeopardizes Switzerland as a business location,” says SwissHoldings CEO Dr. Gabriel Rumo.
SwissHoldings will examine the counterproposal in depth and contribute to the consultation process.
Contact
Gabriel Rumo | CEO | +41 (0)79 712 20 20
