Why is the number of greenwashing cases in Switzerland continuing to rise, while it is declining worldwide? How can Swiss companies communicate credibly about their sustainability efforts without falling into the greenwashing trap? And what specific measures can protect you from the stricter legal consequences that have been in effect since January 2025?
These questions are currently preoccupying numerous Swiss SMEs and subsidiaries of international companies. While, according to the latest RepRisk study, greenwashing cases declined by 12% worldwide, Switzerland recorded the highest increase among 13 markets analyzed, at 17.3%. Sixty-one Swiss companies were involved in greenwashing in 2024—an alarm signal for the Zurich financial center and the entire Swiss economy.
The new legal situation makes sustainability communication a top priority. With the introduction of Art. 3 para. 1 lit. x UWG (Unfair Competition Act) on January 1, 2025, all information on climate impact must be objectively and verifiably documented. Violations can not only lead to reputational damage, but also to fines of up to four percent of global annual sales – similar to the planned EU regulations.
At the same time, stakeholders expect more transparent information than ever before about ESG (environmental, social, governance) measures. From investors in Basel to customers in Bern to employees in Geneva, everyone is demanding authentic sustainability communication. Finding this balance between legal compliance and credible communication is the key challenge for Swiss companies.
The figures speak for themselves. While the European Commission classified more than half of all "green claims" as vague, misleading, or unfounded in 2020, a particularly problematic trend is emerging in Switzerland: the repeat offender rate for greenwashing is 23.4%.
What makes Switzerland so susceptible to greenwashing?
The important financial sector plays a key role in this. Banks and insurance companies based in Zurich or Geneva often finance environmentally harmful industries and are therefore increasingly coming under scrutiny. In addition, many Swiss companies underestimate international developments. While the EU is further harmonizing its ESG reporting with the Omnibus Package of February 2025, Switzerland still lacks a CSRD implementation law.
This regulatory gap leads to uncertainty. Companies with offices in Lausanne, Zurich, and Munich are faced with a patchwork of different requirements. As a result, many no longer communicate about their sustainability efforts for fear of making mistakes—a phenomenon known as "green hushing."
To communicate credibly, you need to be aware of the typical pitfalls. PwC has identified seven key greenwashing sins: hidden compromises, lack of evidence, vagueness, irrelevance, lesser evil, lies, and false labels.
A real-life example: A Zurich-based technology company advertises its product as "climate neutral," but fails to mention that this is only achieved by purchasing offset certificates, while its own production continues to generate high emissions. Such hidden compromises are classic examples of greenwashing.
The new legislation requires objective and verifiable evidence. Specifically, this means that anyone claiming "carbon neutrality" or "net zero" must be able to substantiate this with scientifically sound data. Vague terms such as "environmentally friendly" or "sustainable" without concrete measurement criteria are no longer permitted.
Successful sustainability communication is based on a solid foundation. Based on our experience with Swiss companies, the following approaches have proven successful:
1. Data before communication First, invest in robust measurement systems. Companies that calculate their carbon footprint according to recognized standards such as the Greenhouse Gas Protocol have a solid basis for their communication. A Basel-based pharmaceutical company, for example, invested 18 months in developing a comprehensive ESG dashboard before communicating its sustainability strategy.
2. Transparency over perfection No company is perfectly sustainable. Honestly communicating challenges and areas for improvement creates more credibility than embellished representations. "We have reduced our emissions by 15%, but still have 60% to go" is more credible than vague promises.
3. Stakeholder-specific communication Different target groups have different information needs. While investors expect detailed ESG metrics, employees are more interested in concrete measures in their everyday work. A Geneva-based financial services provider therefore developed separate communication formats for each stakeholder group.
The MOVE Conference for Sustainability Communication emphasizes the importance of evidence-based facts. In addition to success stories and visions of the future, concrete, validated data is essential for credible communication.
Switzerland traditionally relies on self-regulation. The Swiss Bankers Association (SBA) has already established guidelines for preventing greenwashing in investment advice. These stipulate that advisors must incorporate ESG criteria into investment discussions.
However, self-regulation has its limits. With the tightening of the UWG article, concrete legal consequences now loom. Not only competitors are entitled to take legal action, but also consumer protection organizations, which have already set up reporting platforms for suspected cases of greenwashing.
The challenge for SMEs: While large companies have dedicated sustainability departments, smaller companies with limited resources must meet the same standards. In this case, it is advisable to work with specialized consultants or use industry solutions.
Based on best practices from successful Swiss companies, we recommend the following approach:
Step 1: Take stock. Analyze your current communications. What statements are you making about sustainability? Can you back up each one with data? A systematic review of all marketing materials, website content, and sales documentation is the first step.
Step 2: Create a database. Without measurement, there can be no credible communication. Establish systems for recording relevant ESG metrics. Simple tools for CO₂ accounting are often sufficient to get started.
Step 3: Develop narratives Your sustainability story should be authentic, measurable, and relevant to your stakeholders. Avoid superlatives and focus on concrete progress and realistic goals.
For example, a Zurich-based IT company stated: "We have reduced the energy consumption of our data centers by 10,000 MWh per year by switching to green electricity from Swiss hydropower. By 2027, we want to save an additional 15% through efficiency measures."
Step 4: Internal anchoring Sustainability communication begins internally. Train your employees, create clear responsibilities, and establish processes for approving sustainability statements.
Step 5: Continuous review Regulatory requirements are constantly evolving. Establish a process for regularly reviewing and updating your communications.
Developments point to further professionalization. With the expected implementation of the CSRD in Switzerland, requirements will increase once again. Companies that invest now in robust systems and transparent communication will be well equipped for the future.
A paradigm shift is emerging: away from pure image communication and toward transparency of impact. Stakeholders don't just want to know whether a company was less bad this year than last year. They expect concrete information about the actual impact within the context of planetary boundaries.
The Swiss economy has the opportunity to take on a pioneering role in this area. With their tradition of quality and precision, Swiss companies can set standards for credible sustainability communication.
The figures are clear: greenwashing is becoming a business risk in Switzerland. At the same time, authentic sustainability communication offers enormous opportunities—from employee recruitment and customer loyalty to investor relations.
The key lies in striking a balance between ambitious goals and a realistic portrayal of the status quo. Companies that consistently follow this path will not only avoid legal risks, but also position themselves as trustworthy partners in the transformation to a sustainable economy.
Would you like to communicate your ESG issues credibly while avoiding legal pitfalls? Brand Affairs supports you in developing customized sustainability communications based on solid data that will convince your stakeholders. With our experience in the Swiss market and our network of communications experts, we accompany you from strategy development to implementation.
Contact us for a no-obligation consultation. Together, we will develop an ESG communication strategy that suits your company and delivers measurable results – transparent, authentic, and legally compliant.
