ESG Regulations: What’s Coming Next?
Key dates you need to know to ensure your business stays compliant with ESG regulations globally.
SOURCE: C2P
As the global community becomes increasingly aware of the impact of human activity on the environment, companies are facing mounting pressure to implement sustainable and socially responsible practices. In response, governments and regulatory bodies are introducing a wave of new environmental, social, and governance (ESG) regulations aimed at promoting sustainable business practices and protecting the planet. These regulations cover a wide range of issues, from carbon emissions and energy efficiency to worker safety and human rights. (See Image 1 below)
If you’re a business owner or investor, it is imperative to stay up-to-date on these upcoming ESG regulations and their implementation dates.
In this blog, we will take a closer look at some of the most significant ESG regulation dates on the horizon.
*This blog was updated on August 30th 2023. Further regulatory developments may have occurred after publication.
To keep up-to-date with the latest compliance news, sign up to our newsletter.
Image 1: Looming global ESG deadlines. Source: C2P Platform by Compliance & Risks
ESG Regulations In Germany
Corporate Due Diligence In Supply Chains Act, BGBl. 2959, 2021
- From Jan 01, 2024 to May 01, 2024 –
Compliance deadline for the annual submission of reports by companies with at least 1,000 people (within 4 months from end of the financial year)
ESG Regulations In European Union (EU) / European Economic Area
Corporate Sustainability Reporting Directive (EU) 2022/2464
- Jan 01, 2024 –
Date of Application - Jul 06, 2024 –
Deadline for transposition by Member States - 2025 –
Compliance Deadline: Reporting on the financial year 2024 for companies already subject to the EU Non-Financial Reporting Directive (NFRD) - 2026 –
Compliance Deadline: Reporting on the financial year 2025 for companies that are not currently subject to the NFRD - 2027 –
Compliance Deadline: Reporting on the financial year 2026 for listed SMEs except micro undertakings, small and non-complex credit institutions and captive insurance undertakings - 2029 –
Compliance Deadline: Reporting on the financial year 2028 for third-country undertakings
EU Sustainability Reporting Standards, Delegated Regulation, July 2023
- Jan 01, 2024-
Date of application
EU Technical Screening Criteria for Determining the Conditions Under which an Economic Activity Qualifies as Contributing Substantially to the Transition to a Circular Economy, Pollution Prevention etc,Regulation, June 2023 (Taxonomy Environmental Delegated Act)
- Jan 01, 2024
Date of application - From Jan 01, 2024 to Dec 31, 2024 –
Compliance deadline: non-financial undertakings must disclose the proportion of Taxonomy-eligible and Taxonomy non-eligible economic activities in their total turnover, capital and operational expenditure - Jan 01, 2025 –
Compliance deadline: the key performance indicators of non-financial undertakings must cover the economic activities set out in this Regulation from this date
ESG Regulations In The UK
UK Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations, SI 2022/31
- Financial year beginning Apr 06 annually
Compliance deadline: traded companies, banks, insurance companies having more than 500 employees to include climate-related financial disclosures in their strategic reports
UK Limited Liability Partnerships (Climate-related Financial Disclosure) Regulations, SI 2022
- Financial year beginning Apr 06 annually
Compliance deadline: limited liability partnerships to include climate-related financial disclosures in their strategic reports or energy and carbon reports
UK: Endorsement of IFRS S1 on Sustainability Reporting and IFRS S2 on Climate Disclosures, Consultation Document, July 2023
- Oct 11,2023
Deadline for comments - July, 2024
Proposed publication of UK Sustainability Disclosure Standards
ESG Regulations In The Netherlands
Responsible and Sustainable International Business Conduct, Revised Draft Law, November 2022
- Jul 01, 2024 –
Proposed date of entry into force. - Jan 01, 2025 –
Proposed date of entry into force of Art. 3.2.1 through 3.2.4 on enforcement and penalties. - Jul 01, 2025 –
Proposed date of entry into force of Art. 3.2.5 and 3.2.6 on offences and civil action.
ESG Regulations In India
India: Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) (Second Amendment) Regulations, 2021
- Mar 31 2024-
Compliance deadline: top 1000 listed entities based on market capitalization shall submit a business responsibility and sustainability report in the format specified by SEBI
ESG Regulations In Hong Kong
Hong Kong (China): Enhancement of Climate-related Disclosures Under the Environmental, Social and Governance (ESG) Framework, Consultation Paper, April 2023
- Jan 01, 2024 –
Proposed Compliance Deadline: Revised Listing Rules to take effect from this date. - Jan 01, 2026 –
Proposed Compliance Deadline: Issuers to be in full compliance with new climate related disclosures from this date
ESG Regulations In The USA
USA: Enhancement and Standardization of Climate-Related Disclosures for Investors, Draft Rule, 87 FR 21334, April 2022
- Oct, 2023 (at the earliest) –
Proposed finalisation of draft rule
International ESG Regulations
IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information
- Jan 01, 2024 –
IFRS S1 effective for annual reporting period beginning on or after this date - Jan 01, 2025 –
End of first year transition reliefs for entities
IFRS S2 Climate-related Disclosures
- Jan 01, 2024 –
IFRS S2 effective for annual reporting period beginning on or after this date - Jan 01, 2025-
End of first year transition reliefs for entities
Stay Ahead Of ESG Regulations
Compliance & Risk’s ESG Solution enables organizations to manage their ESG program by
- Staying on top of evolving ESG Regulations
- Setting and managing their ESG goals and targets.
- Demonstrating compliance to evolving regulatory requirements, and other Internal and external stakeholder requirements.
See Our ESG Solution In Action
Watch a bite-sized demo of our ESG solution, on-demand and at your convenience
Edited by Joanne O'Donnell
With almost 20 years post-qualification experience, Joanne heads up our Global Regulatory Compliance team. Learn more aboutJoanne
She has extensive national and international legal experience in private practice, in-house and industry and has been with Compliance and Risks for 12 years. She helps support our clients with their legal compliance challenges with a particular interest and focus on ESG, Sustainability, Climate Change and Human Trafficking and Slavery/Forced Labour.
Joanne has a Bachelor of Arts (Legal and French) and a Bachelor of Law (LLB) from the National University of Ireland, Galway, Ireland and a Masters in International law (LLM) from the Graduate Institute of International and Development Studies, Geneva, Switzerland. She also has a Masters Degree in French from the University of Limerick, Ireland and is a fluent French speaker. She recently completed a Masters course in Business and Human Rights at the University of Bergen, Norway. She qualified as a Solicitor with the Law Society of Ireland in 2003.
Close
