Regulations on environmental, social & governance (ESG) and environmental, health & safety (EHS) issues are rapidly expanding across the globe, with new rules aiming to achieve greater transparency and accountability for companies all over the world.
The ERM Sustainability Institute's Global Regulations Radar provides an overview of the ESG and EHS regulations that have the greatest impact on companies across the globe. It includes information on the scope, timeline, and compliance requirements of such regulations and is intended to help companies track which major regulations they may be subject to and what actions they should take to comply. The guide covers policies across three global regions, including:
- Europe: The European Union continues to strengthen its regulatory framework around ESG-related disclosures through the Corporate Sustainability Reporting Directive (CSRD), enhancing the reporting requirements of the previous regulation, the Non-financial Reporting Directive (NFRD). Meanwhile, the Corporate Sustainability Due Diligence Directive (CSDDD) will ensure large companies operating within the region integrate human rights and environmental considerations into their value chains.
- North America: The United States Securities and Exchange Commission (SEC) has finalized its climate-related disclosure rule, but the rule was quickly paused after legal challenges from opposition groups. However, California's climate-related disclosure bills (SB253 and SB261) are more comprehensive than the SEC's in many ways, meaning many companies will still have to disclose climate-related risks, opportunities, and performance regardless of what happens with the SEC rule.
- Asia Pacific: ESG and EHS regulations are evolving at a diverse pace in the region, with several jurisdictions having introduced or implemented climate-related disclosure requirements like those in Asia or Hong Kong. Many of these regulations utilize the International Sustainability Standards Board's (ISSB) IFRS S1 and S2 standards in mandatory sustainability disclosure regulation, promoting consistency and comparability through the use of a common disclosure standard.
The regulations included in the Global Regulations Radar cover some of the most important ESG and EHS regulations of today; however, the landscape is constantly evolving. Existing legislation is often updated and improved, while jurisdictions may propose and implement new rules where needed. This guide will be updated and expanded twice a year so companies can stay up to date on the latest advancements in the ESG and EHS regulation landscape.
Companies can use the information in the Global Regulations Radar to determine which regulations they will be subject to and when they will be required to comply, determine necessary actions, required resources, and the timeline to meet regulatory requirements, and ultimately leverage compliance to create business value.
For more information on the regulations covered in this publication, please contact Ramesh Narasimhan at ramesh.narasimhan@erm.com or the associated ERM contact in the document appendix.
