In the first decades after its founding in 1983, SQS experienced strong, organic growth, with the organization's decentralized structure allowing for close proximity to the market and customers. However, this organizational form and development also had its drawbacks. SQS reached a critical size in many respects, necessitating adjustments to its structures and processes – comparable to a tree whose trunk needs to be sustainably strengthened in relation to its growing branches bearing numerous heavy fruits. Several factors, both within and outside of SQS, have intensified the need for organizational action:

• The growth of the market for certifications according to ISO management system standards (the core business in strategic business unit 1) has consolidated after the boom in the 1990s and 2000s;

• The growth of the market for certifications according to special standards (for example in the automotive, food, aviation, rail vehicle and medical technology sectors) requires specialization, which restricts the variable deployment of auditors in diverse areas and triggers (additional) cost and efficiency pressures;

• The specialization and demographic development of the SQS workforce have exacerbated the generally existing shortage of skilled workers, which entails higher demands on personnel recruitment, support and development;

• The growing demands from accreditation- and authorisation bodies have led to increased administrative costs;

• The market for the assessment and verification of sustainable corporate governance (Strategic Business Area 2) is in an early stage of development, during which SQS must position itself as a service provider to new target groups and raise its profile;

• The megatrend of digitalization and the accelerated application of artificial intelligence require organizations to undergo fundamental further development with adjustments in all areas..

• Geopolitical changes in the international trade order also affect the standards system. However, since ISO standards are less subject to political fluctuations than, for example, tariff trade rules, they can become even more important in the future as a reliable basis for the functioning of the global economy and create reliability.

In order to take account of the changed market environment and to position SQS for the future, numerous strategic decisions from the previous year were consistently implemented in 2025. In the process, the newly created or further developed departments of «Organizational Development and Human Resources», «Finance, Controlling and Reporting» and «Marketing, Public Affairs and Sales» were successfully established. The four new «Operations» areas (German-speaking Switzerland, Romandy, Ticino and Italy) are each headed by a member of the Executive Management and are thus coordinated centrally. The new «Sustainability Services» department served as a competence center and coordination point for internal projects as well as for the administration and development of the product portfolio in this area.

Kex focus area: «Digital Responsibility»

SQS has been addressing digital responsibility and infrastructure as strategic topics for several years, topics that are associated with challenges and opportunities.

• Challenges: We work with sensitive data, especially customer data. To protect this data even better, we introduced three key security solutions in 2025: Azure Virtual Desktop (AVD) provides a secure work environment for remote employees and BYOD users – with full functionality but a clear separation from private data. Microsoft Purview helps classify and protect confidential information and enables secure control of data flows. The Zero Trust model ensures that only verified devices and identities have access to SQS resources – regardless of location or network. However, software solutions and information security management systems are only effective if employees are aware of their individual responsibilities and conscientiously fulfill them. Therefore, we informed and trained employees at various events.

• Opportunities: We continued to work intensively on implementing an ERP and CRM system based on Microsoft Dynamics 365 (D365) software. The project realignment at the end of 2024 proved to be the right decision, and we are maintaining the planned 2026 launch date. While the project currently appears as a cost factor in the profit and loss statement, it is the key prerequisite for relieving our auditors of routine administrative tasks in the future and sustainably increasing productivity. The growing demand for certifications of information security management systems according to ISO/IEC 27001:2022 and other standards in the ISO/IEC 27000 family presents a commercial opportunity. Certifications according to ISO/IEC 27001 are now our fourth most important product, after certifications for quality management systems, environmental management systems, and occupational health and safety management systems. Increasing demands for the safe, transparent, and responsible use of artificial intelligence are likely to fuel demand for certifications according to ISO/IEC 42001:2023 for AI management systems. Therefore, we accelerated our accreditation for this standard in 2025. Since information security is a prerequisite for the responsible use of AI, ISO/IEC 27001 also benefits from this market development.

Internationally leading conformity assessment body

IQNET is the global network of leading conformity assessment bodies (CABs). SQS is a founding member and the exclusive partner of IQNET in Switzerland. The network is distinguished, among other things, by its rigorous periodic peer assessments of the affiliated CABs. In September, a three-person IQNET team audited SQS over two days. They found no deviations and assigned SQS levels 3 or 4 (out of 4) for all 31 criteria. SQS was even rated "best in class" for the following nine criteria:

• In the area of ​​«Sustainability and Governance»: «Strategy and Sustainability Focus» and «Business Objectives»

• In the area of ​​«Business Management»: «Management Review», «Context, Stakeholders and Partnerships» and «Budgeting and Financial Management »

• In the area of ​​«Product Portfolio»: «Management of Product Portfolio» and «Design, Development and Innovation».

• In the area of ​​«Marketing and Communication»: «IQNET Promotion» and «IQNET Cooperation and Recognition».

The product development and marketing process, the employee survey, the integration of marketing, communications and public affairs, corporate reporting, and the political advisory board were all rated as particularly exemplary (best practice). The fact that the auditors perceived SQS as leading or exemplary in many respects is a testament to the success of the efforts undertaken in recent years.

Liquidation of SQS Deutschland GmbH 

In the reporting year, the Board decided to dissolve the subsidiary SQS Deutschland GmbH, founded in 2021 and headquartered in Konstanz. As early as 2024, a decision had been made to forego the notification of SQS Deutschland GmbH in the medical technology sector due to political and regulatory developments and to transfer the sustainability product portfolio to the Swiss parent company.

SQS has the statutory mandate to sustainably strengthen Switzerland's economic position and performance. Our focus is deliberately on small and medium-sized enterprises (SMEs). They not only make up nearly 90% of our clientele, but also benefit particularly from our services. To fulfill our role as a reliable partner to Swiss SMEs and to effectively promote the interests of our members, we implemented groundbreaking measures in 2025 as well:

«ISO standards in times of protectionism»: Importance and role of Switzerland”

On this current and relevant topic, we organized a public discussion event on 24 June 2025 as part of our member’s general meeting in Zollikofen. The presentations were given by Jean-François de Saussure, Treasurer of the International Organization for Standardization (ISO) and former CEO of Caran d’Ache, Lukas Keller, CEO of the Swiss Standards Association, and Simone Wyss, CEO of Switzerland Global Enterprise. Among the approximately 40 participants was Anja Simma, the new head of the Swiss Accreditation Service.

SQS-Rendezvous

On 29 October 2025, we held the second SQS Rendezvous at the Hotel Schweizerhof in Bern, a discussion and networking event for our member organizations. The topic was “Efficient compliance, effective sustainability: solutions for SMEs”. The objectives were:

• The exchange of information and knowledge on the market and framework conditions with strategic decision-makers in our member organizations;

• Strengthening our reputation as a legitimate and competent organization in the areas of «Good rules for smooth markets (standards, norms and state regulation),» «Market access and recognition through credible assessments and certifications» and «SMEs and sustainability (requirements, instruments and empowerment)»;

• Better understand the needs and resources of our member organizations and prepare the ground for possible collaborations.

15 member organizations took part. The Managing Director of AcuMax Med AG explained why and with what success the small family-owned company from Bad Zurzach had applied the new Sustainability Performance Standard of the SQS. The Vice President of KUNSTSTOFF.swiss presented an exemplary materiality analysis that had been jointly developed by the association, the SQS and the University of St. Gallen. The aim was to support SMEs in the plastics processing industry in sustainable corporate management and in particular in sustainability reporting.

SQS Corporate Forum

On November 6th, we held the second SQS Corporate Forum at the Baur au Lac in Zurich, an exclusive C-level event for our clients. The topic was "Sustainable and Resilient Value Chains: Communication and Cooperation between Large Companies and SMEs." The objectives were:

• Strengthening customer relationships at the board of directors/management level;

• Increase/secure revenue through long-term relationships, cross-selling and a dialogue at eye level;

• Win our clientele as multipliers and for marketing activities;

• Gain market knowledge through a targeted and structured dialogue about customer needs and market developments.

Nearly 20 CEOs or other strategic decision-makers from SQS's clientel participated. Indicators of a successful event included positive feedback, the quality of communication materials from and about the event, and the response they generated.

Public Affairs 

During the reporting year, the Public Affairs department worked on three main dossiers: sustainability reporting, AI regulation, and the package for stabilizing and further developing the bilateral approach (Bilateral Agreements III). In the area of ​​sustainability reporting, particular attention was paid to political and regulatory developments in the EU. Regarding AI regulation, important contacts with the federal administration were established and strengthened. SQS thus prepared to participate in the consultation process planned for 2026. SQS also submitted a statement to the consultation process on Bilateral Agreements III.

Monitoring and maintenance of the certification market

Our certifications only deliver their full benefits within a functioning system. This includes, in particular, ensuring that market participants are informed transparently and honestly whether a certificate is accredited. Non-accredited certificates are legal and legitimate. However, it must be clearly communicated to the market that the issuing certification body is not vetted to ensure it meets the high standards of accreditation. Therefore, it is not guaranteed that their certificates possess the quality, credibility, and global recognition characteristic of accredited certificates – such as those issued by SQS. In accordance with our statutory mandate and in our role as Switzerland’s leading CAB, we continued to monitor the market in 2025. We brought misleading or even illegal practices to the attention of other CABs and informed market participants about the nature and value of accredited conformity assessment. In the interest of market care and quality assurance, we were also the driving force behind the so-called CB Roundtables, a loose exchange among the CEOs of accredited CABs in Switzerland.