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Comprehensive ESG Policy Reference

Global ESG Regulations, Standards, and Best Practices by Jurisdiction & Department

Version 1.0 | Effective July 2025

Global

All Departments

  • Global ESG Compliance Framework v3.1: Applies to all entities. Requires annual ESG reporting aligned with TCFD recommendations. Board oversight mandatory for material ESG issues. Climate risk disclosure required for Scope 1 & 2 emissions. Supply chain due diligence must cover: Conflict minerals, deforestation risks, water stewardship. Reporting deadline: March 31 annually.
    Document: Global_ESG_Policy.pdf

Finance

  • Global Carbon Accounting Standards: GHG Protocol aligned. Scope 3 Categories 1, 3, 6 mandatory. Use latest IPCC emission factors. Carbon credits: Only Verra Gold Standard credits may offset Scope 1. Financial integration: CO2e metrics must appear in annual statements (Note 12). Audit requirements: Maintain granular activity data for 7 years. Software requirement: SAP Sustainability Module or equivalent.
    Document: Finance_Carbon_Standards.pdf

Board Oversight

  • Board oversight is mandatory for ESG issues: The board must review climate risk disclosures and supply chain due diligence annually. Each year, the board of directors is required to examine ESG disclosures, with a focus on climate risk and supply chain compliance. This ensures top-level accountability.
    Document: Global_ESG_Policy.pdf
  • Scenario: Board Oversight in Practice: The ESG Committee meets quarterly to review climate risk disclosures, supply chain due diligence, and compliance with TCFD. Example: In 2023, the board required corrective action after a supplier failed a deforestation audit.
    Document: Global_ESG_Policy.pdf

European Union (EU)

Supply Chain

  • EU CSRD Addendum - Supply Chain: Effective 2024. Scope 3 emissions reporting mandatory for companies >500 employees. High-risk sector monitoring (textiles, minerals) requires: Child labor audits, living wage verification, conflict mineral tracing. Supplier audit frequency: Tier 1=annual, Tier 2=bi-annual. Penalties: 4% global revenue for non-compliance. Document Reference: Section 4.2 of Global ESG Policy.
    Document: Global_ESG_Policy.pdf

Operations

  • EU Circular Economy Action Plan: Operations must implement waste reduction, recycling, and eco-design measures. Extended Producer Responsibility (EPR) applies to electronics, packaging, and textiles. Annual reporting to the European Environment Agency required. Policy supports EU Green Deal targets.
    Document: EU_Circular_Economy.pdf

United States (US)

Finance

  • SEC Climate Disclosure Addendum: Applies to US public entities. Scope 1/2 emissions reporting required for accelerated filers (>$700M float). Phase-in: FY2025=Scope 1, FY2026=Scope 2. Financial impact quantification required for climate risks >2% of revenue. Board requirements: Climate expertise on audit committee, CEO attestation process. Material misstatements subject to SEC enforcement. Document Reference: Section 5.1 of Global ESG Policy.
    Document: Global_ESG_Policy.pdf

HR

  • US Sarbanes-Oxley Act (SOX) Whistleblower Policy: All public companies must provide anonymous reporting channels for employees to report fraud or misconduct. Retaliation is strictly prohibited. Annual whistleblower training required. Policy must be posted in all workplaces.
    Document: US_HR_Whistleblower.pdf

IT

  • US CISA ESG Cybersecurity Guidance: IT departments must implement NIST Cybersecurity Framework controls, report material cyber incidents to CISA within 72 hours, and include cybersecurity metrics in ESG disclosures. Annual penetration testing and employee security awareness training required.
    Document: US_IT_Cybersecurity.pdf

United Kingdom (UK)

Operations

  • UK Net Zero Operations Standards: Facilities must reduce emissions 50% by 2030 vs 2020 baseline. Carbon pricing: £75/ton CO2e internal charge. Energy requirements: 80% renewable sourcing by 2025. Waste targets: Zero landfill for manufacturing sites. Transition planning: Site-specific decarbonization roadmaps required by Q3 2024. Reporting to Environment Agency quarterly via Streamlined Energy Carbon Reporting (SECR) framework.
    Document: UK_Operations_Compliance.pdf

Procurement

  • UK Modern Slavery Act 2015: All companies with turnover >£36M must publish an annual Modern Slavery Statement. Procurement teams must assess supplier risk, conduct due diligence, and provide staff training. Statements must be approved by the board and published on the company website.
    Document: UK_Modern_Slavery.pdf

Singapore

Reporting

  • Singapore SGX ESG Reporting: Mandatory for listed entities. Core metrics: GHG emissions (Scope 1&2), water consumption, gender pay gap, board diversity. Reporting deadline: Annual report + 5 months after FYE. Third-party assurance required for emissions data. Submission via SGX ESG Reporting Portal. Taxonomy alignment: Follow MAS green finance guidelines for financial sector entities.
    Document: SGX_ESG_Reporting_Guide.pdf

Canada

Procurement

  • Canada Federal Sustainable Procurement Policy: All federal contracts above CAD 1M must include ESG criteria. Suppliers must disclose GHG emissions and provide Indigenous engagement plans. Preference for suppliers with ISO 14001 certification. Annual ESG performance review required. Exemptions for SMEs under 20 employees.
    Document: Canada_Procurement_ESG.pdf

Australia

Operations

  • Australia Modern Slavery Act Compliance: All entities with revenue >AUD 100M must publish annual Modern Slavery Statements. Operations must implement supplier due diligence, risk assessments, and remediation plans. Statements must be board-approved and submitted to the Australian Border Force registry.
    Document: AU_Operations_ESG.pdf

France

HR

  • France Gender Equality Index: Companies with >50 employees must publish annual gender pay gap data. Minimum score of 75/100 required. Corrective measures mandatory if below threshold. Policy covers recruitment, promotion, parental leave, and anti-discrimination training. Penalties for non-compliance: up to 1% of payroll.
    Document: France_Diversity_Policy.pdf

China

Manufacturing

  • China Environmental Protection Law: Manufacturing sites must obtain pollutant discharge permits and report emissions quarterly. Mandatory installation of real-time monitoring for air and water pollutants. Non-compliance may result in plant shutdown and fines up to RMB 1M. Annual environmental impact assessment required.
    Document: China_Manufacturing_ESG.pdf
  • China Green Bond Disclosure: Finance departments must disclose use of proceeds, environmental impact metrics, and third-party verification for all green bonds issued after 2022. Annual reporting to the China Securities Regulatory Commission is required.
    Document: China_Green_Bond.pdf

Brazil

Supply Chain

  • Brazil Amazon Deforestation Policy: All agricultural suppliers must provide satellite-verified proof of zero deforestation since 2008. Annual third-party audits required. Non-compliant suppliers are blacklisted. Policy aligned with EU Deforestation Regulation (EUDR) and Brazilian Forest Code.
    Document: Brazil_SupplyChain_ESG.pdf
  • Case Study: Zero Deforestation Compliance: In 2022, Supplier X was removed from the approved list after satellite data showed illegal clearing. The company implemented a new satellite monitoring protocol and annual third-party audits.
    Document: Brazil_SupplyChain_Case.pdf

India

IT

  • India Digital Personal Data Protection Act 2023: IT departments must ensure consent-based data processing, data minimization, and breach notification within 72 hours. ESG reporting must include data privacy metrics and cybersecurity incident disclosures. Annual employee privacy training required.
    Document: India_IT_ESG.pdf

Operations

  • India Water Stewardship Policy: Operations must reduce water consumption by 20% by 2025. Annual water risk assessments are mandatory for all manufacturing sites. Compliance is monitored by the Central Pollution Control Board.
    Document: India_Water_Stewardship.pdf

Middle East

Operations

  • Middle East Energy Transition Policy: Oil & gas operators must reduce methane emissions by 30% by 2030. Flaring prohibited except for safety. Annual disclosure of renewable energy investments required. Policy aligned with OPEC+ climate commitments and UNFCCC Paris Agreement.
    Document: ME_Energy_Transition.pdf

South Africa

Board

  • South Africa JSE Listing Requirements: All listed companies must adopt and disclose a board diversity policy covering gender, race, and skills. Annual progress reporting required. Non-compliance must be explained in annual reports (apply or explain principle).
    Document: SA_Board_Diversity.pdf

HR

  • South Africa Employment Equity Act: All employers with >50 employees must submit annual employment equity reports. HR departments must implement affirmative action measures and monitor workforce diversity. Non-compliance may result in fines up to ZAR 2.7 million.
    Document: SA_Employment_Equity.pdf

Germany

Supply Chain

  • Germany Supply Chain Due Diligence Act (LkSG): Companies with >3,000 employees (from 2024: >1,000) must assess and address human rights and environmental risks in their supply chains. Annual risk analysis, preventive measures, and complaints procedure required. Fines up to 2% of global turnover for violations.
    Document: Germany_LkSG.pdf

Japan

Finance

  • Japan Financial Services Agency ESG Disclosure: All listed companies must disclose ESG risks and opportunities in annual securities reports. Climate-related disclosures should align with TCFD. Finance departments must report on green bond issuance, sustainable investment, and climate risk scenario analysis.
    Document: Japan_ESG_Finance.pdf