Swiss Corporate Due Diligence Law 2026, Practical Compliance Guide for Companies, Fintechs and Commodity Traders

Corporate due diligence Switzerland is entering a transformative phase: the Swiss Federal Council has proposed a new national law that will require companies to identify, prevent and mitigate human-rights and environmental risks across their supply chains, with formal reporting obligations and remediation mechanisms. As reported by ESG Today in April 2026, the proposal builds on the existing due diligence provisions that came into force in 2022 and significantly expands their reach to align more closely with the EU Corporate Sustainability Due Diligence Directive (CSDDD). For general counsel, compliance officers, CFOs and business owners, particularly those operating in fintech, commodity trading and other high-risk sectors, the window to prepare a robust compliance programme is narrowing rapidly.

This guide provides the practical roadmap, sector-specific controls and downloadable checklist resources needed to move from awareness to implementation.

Executive Summary: What Companies Must Do Now

The proposed Swiss corporate due diligence law represents the most significant expansion of non-financial corporate obligations in Switzerland in over a decade. It moves Switzerland from a limited, sector-specific regime, focused primarily on conflict minerals and child labour, to a comprehensive, economy-wide framework covering environmental harm, human-rights violations and governance failures throughout global supply chains.

Companies that delay preparation risk non-compliance from day one of enforcement. The European Coalition for Corporate Justice has noted that Switzerland’s decision confirms a “Brussels effect,” meaning Swiss firms already subject to the EU CSDDD through their European operations will face dual obligations unless compliance programmes are harmonised early.

Three immediate actions every affected company should take:

• Conduct a gap analysis. Compare your existing supply-chain due diligence programme against the proposed Swiss due diligence requirements and the OECD Due Diligence Guidance published by SECO. Identify the areas, risk mapping, grievance mechanisms, public reporting, where you fall short.
• Assign board-level ownership. Designate a member of senior management or the board of directors as the accountable owner for corporate due diligence compliance. This person must have authority over budget, vendor relationships and reporting.
• Begin supplier engagement now. Draft and circulate updated supplier codes of conduct, contractual due diligence clauses and self-assessment questionnaires. Suppliers need lead time to respond, and evidence of early engagement demonstrates good faith to regulators.

What the 2026 Swiss Corporate Due Diligence Law Will Cover

The proposed law, sometimes referred to informally as the CDD law Switzerland, will establish mandatory due diligence obligations for Swiss-domiciled companies that meet defined size or sector thresholds. According to the Swiss Federal Council’s published proposal and supporting commentary from SECO, the legislation is modelled on the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights, both of which SECO already promotes through sector-specific implementation instruments.

Entities in Scope of Swiss Corporate Due Diligence

The law is proposed to apply to companies that are domiciled, registered or have their principal place of administration in Switzerland, provided they meet certain thresholds. Industry observers expect these thresholds to broadly mirror the approach taken in the existing provisions of the Swiss Code of Obligations (Art. 964j–964l CO), which currently capture companies that:

• Import or process minerals or metals from conflict-affected areas, or
• Offer products or services involving a reasonable suspicion of child labour in their supply chain.

The proposed expansion is expected to cover companies that exceed defined thresholds of balance-sheet total, revenue or employee headcount, bringing a substantially wider range of Swiss enterprises, including mid-cap firms and subsidiaries of foreign groups, into scope. Sector-specific triggers are also anticipated for high-risk industries such as commodity trading, financial services, textiles and agriculture.

Exemptions and Thresholds

Small and medium-sized enterprises (SMEs) that fall below all proposed thresholds are expected to be formally exempt from the full reporting regime, though they will remain subject to general duties of care under existing Swiss law. Controlled subsidiaries whose parent company already conducts group-wide due diligence may also benefit from a consolidation exemption, provided the parent’s programme demonstrably covers the subsidiary’s operations and supply chain.

Quick self-test, does this apply to you?

• Is your company domiciled or administered in Switzerland?
• Does your revenue, balance sheet or headcount exceed the anticipated thresholds?
• Do you operate in a designated high-risk sector (commodities, finance, agriculture, textiles)?
• Do you source goods, raw materials or services from jurisdictions with elevated human-rights or environmental risks?

If you answered “yes” to at least two of these questions, the likely practical effect will be that your company falls within the proposed scope.

Key Obligations: Supply Chain, Human Rights, Environmental and Reporting

The Swiss due diligence requirements under the proposed law are structured around a continuous due diligence cycle, aligned with the six-step framework set out in the OECD Due Diligence Guidance for Responsible Business Conduct. SECO has published sector-specific OECD implementation instruments covering areas including minerals, agriculture and financial services, which provide a ready-made template for compliance programmes.

Supply-Chain Due Diligence Steps

Companies will be required to map their supply chains, identify actual and potential adverse impacts, and take proportionate measures to prevent or mitigate those impacts. This goes beyond first-tier suppliers. The legislation is expected to require companies to apply a risk-based approach to their entire value chain, including upstream raw-material sourcing and downstream distribution where the company has leverage.

Practical compliance evidence that companies should maintain includes:

• A supply-chain risk register, updated at least annually, mapping each supplier against country-risk, sector-risk and product-risk indicators.
• Documented findings from on-site audits or third-party assessments of high-risk suppliers.
• Contractual clauses in supplier agreements requiring compliance with human-rights and environmental standards, with audit-rights and termination triggers for material non-compliance.

Human Rights and Environmental Duties

The proposed law will require companies to identify and address risks relating to forced labour, child labour, unsafe working conditions, land rights, pollution, biodiversity loss and climate-related harm. Companies must establish or participate in a grievance mechanism, either an internal complaints channel or an industry-level mechanism, that allows affected individuals and communities to report adverse impacts and seek remediation.

ESG due diligence Switzerland will therefore move from a voluntary or investor-driven exercise to a legally mandated process. EY Switzerland has noted that setting up robust and responsible supply-chain due diligence processes requires companies to integrate environmental and social criteria directly into procurement decisions, supplier onboarding workflows and performance reviews.

Reporting and Documentation Requirements

Under the proposed framework, companies in scope will be required to publish an annual due diligence report disclosing:

• The risks identified in their supply chains and operations.
• The measures taken to prevent, mitigate or cease adverse impacts.
• The outcomes of those measures, including any remediation provided.
• Key performance indicators (KPIs) used to track progress, such as percentage of high-risk suppliers audited, grievance resolution rates and training completion rates.

This report is expected to be made publicly available, either as a standalone document or as part of the company’s existing non-financial reporting under Art. 964a–964c CO. Documentation must be retained for a minimum period to demonstrate ongoing corporate due diligence compliance to regulators.

Practical 6-Step Corporate Due Diligence Compliance Roadmap

Regardless of whether the final legislation arrives in late 2026 or early 2027, companies should begin building their compliance infrastructure now. The following six-step roadmap, aligned with the OECD framework and adapted for the Swiss context, provides a practical playbook for implementation. Each step identifies the responsible owner and key deliverables.

Step 1: Governance and Responsibility

Establish board-level accountability by designating a due diligence officer or compliance committee. Draft and adopt a corporate due diligence policy that sets out the company’s commitment to human rights and environmental protection, references applicable standards (OECD Guidelines, UN Guiding Principles) and defines escalation procedures. The board should formally approve this policy and review it annually. Owner: Board of Directors / CEO.

Step 2: Risk Mapping

Conduct a comprehensive risk assessment across your entire value chain. This involves identifying: (a) geographic risks (countries with weak rule of law, armed conflict or environmental degradation); (b) sector risks (extractives, agriculture, electronics, textiles); and (c) product risks (goods associated with forced labour or deforestation). Prioritise risks by severity and likelihood. Owner: Head of Compliance / Chief Risk Officer. Deliverable: A documented supply-chain risk register.

Step 3: Policies and Contracts

Translate your due diligence policy into enforceable contractual obligations. Amend supplier agreements to include human-rights and environmental warranties, audit-access clauses, remediation obligations and termination provisions. Develop a supplier code of conduct and integrate it into procurement processes. Owner: General Counsel / Head of Procurement. Deliverable: Updated template contracts and a supplier code of conduct.

Step 4: Due Diligence Procedures

Implement operational procedures for ongoing due diligence. This includes supplier self-assessment questionnaires, desktop screening against sanctions and watchlists, on-site audit programmes for high-risk suppliers, and enhanced due diligence triggers for new business relationships in elevated-risk jurisdictions. Owner: Compliance Team / Procurement. Deliverable: A due diligence procedures manual and screening protocols.

Step 5: Monitoring and Audits

Establish a monitoring regime that tracks compliance across the supply chain on a continuous basis. This should include KPI dashboards (percentage of suppliers assessed, audit findings closure rates, incident reports), periodic internal audits and independent third-party verification for the highest-risk relationships. Owner: Internal Audit / External Auditor. Deliverable: An annual monitoring report with KPI tracking.

Step 6: Reporting and Remediation

Prepare your annual due diligence report and establish a grievance mechanism. The report should follow the structure anticipated by the proposed law: risks identified, measures taken, outcomes achieved and KPIs. The grievance mechanism must be accessible to affected stakeholders and provide a clear pathway from complaint to investigation to remediation. Owner: Due Diligence Officer / Board. Deliverable: Published annual report and operational grievance channel.

Due diligence checklist for companies: A comprehensive, downloadable checklist consolidating all sub-tasks from this six-step roadmap is available in the templates section at the end of this article.

Sector Guidance: Fintechs, Commodity Traders and SMEs

While the proposed law applies broadly, its practical impact will vary significantly across sectors. Swiss corporate due diligence obligations intersect with existing regulatory frameworks in different ways depending on whether a company operates in financial services, physical commodity flows or the broader SME economy. The following subsections provide sector-tailored controls and sample clauses.

Fintechs and Crypto Projects, Corporate Due Diligence Switzerland

Swiss fintechs, including crypto asset service providers (CASPs) and payment platforms, already operate under stringent anti-money laundering (AML) and know-your-customer (KYC) requirements imposed by FINMA and the Anti-Money Laundering Act (AMLA). The proposed due diligence law will add a new layer: companies must extend their risk assessments beyond financial crime to include human-rights and environmental harm in their technology supply chains and client ecosystems.

Key controls for fintechs:

• Sanctions and watchlist screening. Integrate automated screening of counterparties, token issuers and platform users against global sanctions lists, politically exposed persons (PEP) databases and adverse media.
• Technology supply-chain audit. Assess hardware and cloud-infrastructure providers for labour practices, environmental impact and conflict-mineral usage in electronic components.
• Client onboarding due diligence. For B2B fintechs, extend KYC to include ESG risk indicators for institutional clients, particularly those in extractive or agricultural sectors.
• Sample clause, data-processor environmental warranty: “The Processor warrants that its data-centre operations comply with applicable environmental laws and that it conducts periodic environmental-impact assessments, the results of which shall be made available to the Controller upon reasonable request.”

Commodity Trading Firms

Switzerland’s position as a global hub for commodity trading, handling an estimated 35% of global oil trade and significant volumes of metals, agricultural products and soft commodities, means that commodity trading firms face particularly acute supply-chain due diligence exposure. The OECD has published dedicated due diligence guidance for the minerals sector, and SECO actively supports implementation through its sector-specific instruments.

Key controls for commodity traders:

• Transaction provenance and chain-of-custody documentation. Maintain auditable records tracing each shipment from point of origin to delivery, including certificates of origin, shipping documents and third-party assay reports.
• Enhanced due diligence (EDD) for high-risk origins. Apply EDD procedures, including on-the-ground verification or participation in industry initiatives such as the Responsible Minerals Initiative, for sourcing from conflict-affected or high-risk areas.
• Counterparty risk assessments. Screen trading counterparties and intermediaries for links to state-owned enterprises in sanctioned jurisdictions, beneficial-ownership opacity or past involvement in environmental damage.
• Sample clause, supplier remediation obligation: “Where the Supplier identifies or is notified of an adverse human-rights or environmental impact in its operations or supply chain, the Supplier shall promptly notify the Buyer, implement a corrective action plan within [30] days and provide evidence of remediation upon request.”

SMEs, Proportionate Approach to Swiss Due Diligence Requirements

SMEs that fall below the formal thresholds may nevertheless wish, or be commercially required by larger customers, to implement due diligence measures. The proposed law is expected to incorporate a proportionality principle, allowing smaller companies to scale their programmes relative to the severity of risks and the resources available.

Practical steps for SMEs:

• Adopt a simplified supplier code of conduct and distribute it to key suppliers.
• Conduct a desktop risk assessment using publicly available country-risk and sector-risk data (e.g., SECO’s OECD sector guidance).
• Document your findings in a basic risk register and review it annually.
• Participate in industry-level grievance mechanisms rather than building a standalone channel.
• Sample clause, SME purchase-order warranty: “The Supplier confirms that, to the best of its knowledge, the goods supplied under this order have been produced without the use of forced labour or child labour and in compliance with applicable environmental regulations.”

Interaction with EU CSDDD and Swiss Corporate Governance Reform

The proposed Swiss legislation does not exist in isolation. It sits alongside the EU’s Corporate Sustainability Due Diligence Directive (CSDDD), which entered into force in 2024, and the existing Swiss provisions on non-financial reporting and supply-chain due diligence under the Code of Obligations (Art. 964a–964l CO). As the European Coalition for Corporate Justice has observed, the Swiss government’s decision to introduce a dedicated CDD law Switzerland confirms the regulatory convergence between Swiss and EU frameworks.

Practical Implications for Cross-Border Groups

Companies that operate in both Switzerland and the EU should pursue a harmonised compliance programme rather than maintaining parallel systems. Early indications suggest the Swiss law will be sufficiently aligned with the OECD framework to allow a single, group-wide due diligence programme to satisfy both jurisdictions, provided the programme is documented to the more demanding standard. Cross-border groups should map their obligations under both regimes, identify any divergences in scope or reporting requirements, and build a compliance architecture that defaults to the stricter standard.

Timeline and Next Steps, Preparing for Enforcement

The Swiss Federal Council’s proposal is proceeding through the legislative process. Based on available government communications and commentary from ESG Today and the European Coalition for Corporate Justice, the expected timeline is as follows:

• 2026 (current year): Federal Council proposal published; public consultation period opens. Companies should begin gap analyses and governance preparations immediately.
• Late 2026 – early 2027: Consultation closes; Federal Council reviews feedback and prepares the implementing ordinance with detailed rules on thresholds, reporting formats and enforcement procedures.
• 2027 (anticipated): Parliamentary deliberation and passage of the law; publication of the final ordinance. Companies should have their compliance programmes substantially in place.
• 2028 (anticipated): Enforcement begins; first reporting period commences. Companies must be fully operational.

Recommended internal milestones:

1. Within 90 days: Complete a gap analysis against the proposed requirements and the OECD framework. Assign board-level ownership. Brief the executive team.
2. Within 180 days: Adopt a corporate due diligence policy. Begin supplier mapping and risk-register development. Initiate contract amendments with key suppliers.
3. Within 365 days: Implement operational due diligence procedures, monitoring KPIs and a grievance mechanism. Conduct a pilot audit of the highest-risk supplier relationships. Prepare a draft annual report for internal review.

Useful Templates and Downloadable Checklist

To support implementation, a comprehensive corporate due diligence checklist (Switzerland 2026) has been prepared, consolidating all sub-tasks from the six-step compliance roadmap above into a single, actionable document. The checklist is designed for compliance officers, general counsel and board members to track progress and assign responsibilities across the organisation.

Included templates:

• Supplier due diligence clause pack, model contractual provisions covering human-rights warranties, environmental compliance, audit-access rights, remediation obligations and termination triggers.
• Remediation flowchart, a step-by-step visual guide from grievance receipt through investigation, corrective action and closure, with suggested timelines and escalation points.
• Supply-chain risk register template, a structured spreadsheet for mapping suppliers against geographic, sector and product risk indicators, with scoring methodology and review cadence fields.
• Board memo template, a draft memo for presenting the due diligence programme to the board of directors, including proposed governance structure, budget and milestones.

Corporate due diligence Switzerland is no longer a matter of voluntary best practice, it is becoming a binding legal obligation. Companies that act now, building governance structures, risk-mapping capabilities and contractual frameworks ahead of enforcement, will not only be compliant on day one but will secure a competitive advantage in supply-chain integrity, investor confidence and cross-border market access. For tailored legal advice on implementing a Swiss corporate due diligence programme, contact the Global Law Experts network.

Sources

1. SECO, OECD Sector-Specific Due Diligence Guidance
2. ESG Today, Switzerland Proposes New Sustainability Reporting Due Diligence Law
3. EY Switzerland, Supply-Chain Due Diligence Guidance
4. PwC Switzerland, Business Diligence
5. Walder Wyss, Due Diligence for Private Acquisitions in Switzerland
6. European Coalition for Corporate Justice, Swiss Government Decision Commentary
7. Swiss Federal Council, Official Communications