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ESG Topic

EU Directives

National Regulations

Voluntary Standards

Climate Change & Decarbonization

   EU Non-Financial Reporting Directive (NFRD) and European Green Deal require disclosure of climate change mitigation efforts and greenhouse gas emissions.

   EU Taxonomy Regulation establishes a classification system for environmentally sustainable economic activities.

   UK Climate Change Act sets legally binding targets for reducing greenhouse gas emissions.

   US SEC Climate Disclosure Rule (proposed) would require public companies to disclose climate-related risks and emissions.

   Science Based Targets initiative (SBTi) provides methodologies for setting emissions reduction targets aligned with climate science.

   Greenhouse Gas Protocol offers standards and tools for measuring and managing greenhouse gas emissions.

Energy Efficiency & Renewable Energy

   EU Energy Efficiency Directive sets rules and obligations for implementing energy efficiency measures.

   EU Ecodesign Directive establishes ecological requirements for energy-related products.

   Germany’s Climate Change Act and France’s Energy Transition for Green Growth Act set national energy and climate policies.

   Australia’s National Greenhouse and Energy Reporting Act requires reporting on emissions and energy use.

   ISO 50001 provides a framework for energy management systems.

   ENERGY STAR is a voluntary program identifying energy-efficient products and buildings.

Water

Management

EU Water Framework Directive establishes a legal framework for protecting and restoring water bodies.

Australia’s Water Act 2007 ensures the sustainable and integrated management of the country’s water resources.

Alliance for Water Stewardship (AWS) Standard offers a framework for understanding and improving water use.

Waste & Circular Economy

   EU Packaging and Packaging Waste Directive aims to reduce the environmental impact of packaging.

   EU Circular Economy Action Plan promotes sustainable resource use and circular processes.

France’s Extended Producer Responsibility schemes hold companies responsible for product end-of-life management.

   Cradle to Cradle Certified assesses products based on circular economy principles.

   ISO 14001 Environmental Management Systems standard includes waste management requirements.

Biodiversity &

Nature

Conservation

EU Biodiversity Strategy for 2030 sets targets to protect and restore ecosystems.

Canada’s Greenhouse Gas Pollution Pricing Act includes measures to support biodiversity.

   Roundtable on Sustainable Palm Oil (RSPO) certification promotes sustainable palm oil production.

   Forest Stewardship Council (FSC) and Marine Stewardship Council (MSC) set standards for responsible forestry and fisheries.

Human Rights & Labor Standards

EU Corporate Sustainability Due Diligence Directive requires companies to identify and address human rights and environmental impacts.

UK Modern Slavery Act and Netherlands’ Child Labor Due Diligence Law mandate reporting on forced labor in supply chains.

   SA8000 Social Accountability standard focuses on decent work and favourable workplace conditions.

   UN Guiding Principles on Business and Human Rights provide a framework for respecting human rights.

Anti-Corruption & Business Ethics

EU Whistleblower Protection Directive establishes safeguards for reporting breaches of EU law.

China’s Corporate Social Credit System evaluates companies’ legal compliance, including anti-corruption measures.

ISO 37001 Anti-Bribery Management Systems standard specifies requirements for preventing, detecting, and addressing bribery.

Supply Chain Due Diligence

EU Conflict Minerals Regulation requires companies to report on the use of certain minerals from conflictaffected regions.

Germany’s Supply Chain Due Diligence Act mandates that companies identify and address human rights risks in their supply chains.

OECD Guidelines for Multinational Enterprises provide recommendations on responsible business conduct, including supply chain management

Sustainability

Reporting &

Disclosure

EU Non-Financial Reporting Directive (NFRD) and Corporate Sustainability Reporting Directive (CSRD) require certain companies to report on ESG matters.

   US Dodd-Frank Act Section 1502 (Conflict Minerals Rule) mandates supply chain disclosure.

   Australia’s Corporations Act 2001 requires listed entities to disclose environmental and sustainability risks.

   Global Reporting Initiative (GRI) and Sustainability Accounting Standards Board (SASB) provide standards for sustainability reporting.

   Task Force on Climate-related Financial Disclosures (TCFD) recommends climate-related financial risk disclosures.

Sustainable

Finance &

Investment

EU Sustainable Finance Disclosure Regulation (SFDR) imposes ESG disclosure obligations for financial market participants.

France’s Article 173 of the Energy Transition Law requires institutional investors to report on ESG integration.

Principles for Responsible Investment (PRI) provides a framework for incorporating ESG factors into investment decisions.

EU Taxonomy Regulation establishes a classification system for environmentally sustainable economic activities.

Climate Disclosure Standards Board (CDSB) Framework guides reporting of environmental and climate change information.

Greenwashing &

Green Marketing

Claims

   ISO 14021 sets requirements for self-declared environmental claims.

   EU Unfair Commercial Practices Directive prohibits misleading environmental claims.

FTC Green Guides (USA), CMA Green Claims Code (UK), and Canada’s Guidelines for Environmental Claims provide guidance on avoiding greenwashing.

UN Environment Programme’s Guidelines for Providing Product Sustainability Information aim to ensure trustworthy sustainability claims.

ESG Integration in Finance

EU Sustainable Finance Disclosure Regulation (SFDR) mandates ESG disclosures for financial market participants.

France’s Article 173 of the Energy Transition Law requires institutional investors to report on ESG integration.

Principles for Responsible Investment (PRI) provides a framework for incorporating ESG factors into investment decisions.

Risk Management Frameworks

EU Non-Financial Reporting Directive (NFRD) requires companies to disclose sustainability risks.

Australia’s Corporations Act 2001 mandates disclosure of environmental and sustainability risks.

   ISO 31000 provides principles and guidelines for risk management.

   COSO Enterprise Risk Management Framework integrates risk management with strategy and performance.

Sustainable

Innovation &

Technology

EU Ecodesign Directive sets ecological requirements for energy-related products.

China’s Guidelines for Establishing the Green

Financial System incentivize green innovation.

ISO 56002 Innovation Management System standard provides guidance for developing sustainable innovations.

Energy Audits & Scans

EU Energy Efficiency Directive requires energy audits for large enterprises.

UK Streamlined Energy and Carbon Reporting (SECR) mandates reporting on energy use and emissions.

ISO 50002 Energy Audits standard specifies requirements for systematic energy audits.

Sustainable Return on Investment (SROI)

EU Taxonomy Regulation establishes a classification system for sustainable economic activities.

France’s Article 173 of the Energy Transition Law encourages investors to report on ESG integration.

Various methodologies, such as PwC’s Total Impact Measurement and Management, assess the full value of sustainability initiatives.

Cybersecurity & Data Protection

EU General Data Protection Regulation (GDPR) sets standards for data privacy and security.

Australia’s Notifiable Data Breaches Scheme requires reporting of data breaches.

ISO/IEC 27001 Information Security Management Systems standard specifies requirements for information security controls.

Environmental

Management

Systems (EMS)

EU Eco-Management and Audit Scheme (EMAS) is a voluntary environmental management instrument.

Japan’s Revised Corporate Governance Code encourages companies to address sustainability.

ISO 14001 Environmental Management Systems standard provides a framework for reducing environmental impacts.

Carbon Credit and

Offset

Management

EU Emissions Trading System (EU ETS) regulates the trading of carbon allowances.

California’s Cap-and-Trade Program and other regional schemes enable carbon markets.

Verified Carbon Standard (VCS), Gold Standard, and others provide certification for carbon offset projects.

Social Impact

Assessment (SIA)

EU Corporate Sustainability Reporting Directive (CSRD) requires disclosure of social impacts.

Australia’s Corporations Act 2001 mandates reporting on social and environmental risks.

Various methodologies, such as Social Impact Assessment guidelines, analyse social impacts of activities.

Worker

Engagement

Tools

EU Works Councils Directive establishes employee information and consultation rights.

Australian Modern Slavery Act requires reporting on forced labour risks in supply chains.

SA8000 standard and OECD Guidelines for

Multinational Enterprises promote worker voice and participation.

Supplier

Engagement

Tools

EU Non-Financial Reporting Directive (NFRD) and CSRD require disclosure of supply chain impacts.

France’s Duty of Vigilance Law mandates companies assess and address supply chain risks.

ISO 20400 Sustainable Procurement standard provides guidance for integrating sustainability into procurement.

GHG Accounting & Management

EU Emissions Trading System (EU ETS) regulates greenhouse gas emissions reporting.

Canada’s Greenhouse Gas Pollution Pricing Act imposes carbon pricing.

Greenhouse Gas Protocol offers standards and tools for corporate-level GHG accounting and management.