2.04.2026

Corporate accountability: Switzerland must catch up

Today, the Swiss government published a counter-proposal to the new Responsible Business Initiative. The Swiss Coalition for Corporate Justice will now examine the proposal in detail. It is essential that the law also holds high-risk Swiss commodity companies accountable.

Following the entry into force of the revised EU Corporate Sustainability Due Diligence Directive (CSDDD) in March 2026, almost all of Europe will have corporate accountability rules in place by 2028 – except for Switzerland. Switzerland has to catch up and introduce effective rules for multinational companies as well, because the country is a major hub for large corporations, and scandals involving companies headquartered in Switzerland regularly make the headlines. Recent examples include the use of highly toxic pesticides in cocoa cultivation for Lindt & Sprüngli, child-mined mica in ABB’s supply chain, and a Glencore mine in Peru that has poisoned an entire region.

Swiss government launches consultation process

The new Responsible Business Initiative (RBI) was launched in January 2025 and the necessary signatures were collected by thousands of volunteers in record time. The initiative is backed by a broad committee of politicians from across the political spectrum, business leaders and representatives of civil society. Today, the Federal Council (the Swiss government) published a counter-proposal, which is intended to align with EU rules. Specifically, it proposes that companies with more than 5’000 employees and a turnover of CHF 1.5 billion must comply with due diligence obligations to protect human rights and the environment. Businesses, political parties, civil society and the academic community can now participate in the three-month public consultation process.

High-risk commodity sector must not be ignored

The Swiss Coalition for Corporate Justice (SCCJ) will now examine the Federal Council’s proposal in detail and participate in the consultation process. “What is crucial for us is that the rules are effective and prevent human rights violations and environmental destruction. The high-risk commodity trading sector must also be taken into account,” says Stefan Müller-Altermatt, an MP for the Christian Democratic Centre Party and a member of the Initiative Committee. “As a global commodity trading hub, Switzerland has a special responsibility. Many commodity traders generate billions in revenue but employ relatively few people, meaning that under the Federal Council’s proposal they would still face no consequences for problematic business practices.”

For example, the Geneva-based commodity trading company IXM has a turnover of CHF 20 billion with only 450 employees. In Namibia, it is partly responsible for widespread arsenic contamination near the town of Tsumeb. Other examples include the commodity traders Gunvor and Mercuria, which, despite revenues of more than CHF 100 billion, also do not meet the 5’000-employee threshold. As a result, Gunvor and Mercuria could continue to profit from activities that harm the environment and public health, such as the sale of dirty fuels.

What is a popular initiative?

If Swiss citizens want to change the constitution, they can launch an initiative. For an initiative to come to fruition, it must be signed by 100,000 voters within 18 months. The initiative will then be put to a vote, unless the initiative committee withdraws it. If a majority of voters and a majority of the cantons vote in favour of the initiative, the Constitution will be amended. More background: ch.ch (Platform by the Swiss government)

Wasn’t there such an initiative already in Switzerland?

Indeed, a first popular initiative for mandatory human rights and environmental due diligence was adopted by a majority of voters in 2020, but missed the majority of the cantons. More background in our timeline in German | French | Italian

  • Traditionally the Swiss government is a multi-party coalition government representing all the largest political parties, with a clear center-right majority. Since a decade the Federal Council’s seven seats are allocated as follows: 2 populist right-wing (SVP) | 2 liberal (FDP) | 1 Christian Democratic (Center) | 2 Social Democratic (SP)
  • The new popular initiative (2nd RBI) was launched in January 2025 and officially filed end of May 2025. It is then up to government and parliament to take a stance before a popular initiative is put to a binding referendum.
  • September 3, 2025, the government had an initial discussion and decided to develop a counter-proposal until Spring 2026 at the statutory level.
  • April 2, 2026 the government presented its draft law and sent it to public consultation until July 9.
    In November 2026 the government will decide about its final proposal and send the bill to parliament for deliberations.
  • Text of government’s law proposal (non-official translation to English), official versions in German | French | Italian. Explanatory report in German | French |Italian
  • Initiative text with brief explanations (non-official translation to English), official versions in German | French | Italian
  • Initiative committee
  • Case examples of human rights violations and environmental destruction in German | French | Italian