Global Regulation Radar

Environmental, social and governance (ESG) and environmental, health and safety (EHS) regulations are spreading rapidly around the world, with new rules aiming to create greater transparency and accountability for companies worldwide.

The ERM Sustainability Institute Global Regulations Radar provides an overview of the ESG and EHS regulations that have the greatest impact on companies worldwide. It includes information on the scope, timing, and compliance requirements of such regulations and is designed to help companies track which key regulations they may be subject to and what actions they should take to comply. The guide covers policies in three global regions, including:

• Europe:The European Union continues to strengthen its regulatory framework for ESG-related disclosures through the Corporate Sustainability Reporting Directive (CSRD), increasing the reporting requirements of its predecessor, the Non-Financial Reporting Directive (NFRD). Meanwhile, the Corporate Sustainability Due Diligence Directive (CSDDD) will ensure that large companies operating in the region integrate human rights and environmental issues into their value chains.
• North America: The U.S. Securities and Exchange Commission (SEC) has finalized its climate-related disclosure rules, but those rules were quickly put on hold after legal challenges from opposition groups. However, California’s climate-related disclosure laws (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 outcomes regardless of what happens with the SEC’s rules.
• Asia and Pacific: ESG and EHS regulations are evolving at different rates across the region, with several jurisdictions introducing or implementing climate-related disclosure requirements, such as those in Asia or Hong Kong. Many of these regulations leverage the International Sustainability Standards Board (ISSB) IFRS S1 and S2 standards in their mandatory sustainability disclosure provisions, promoting consistency and comparability through the use of a common disclosure standard.

The regulations in Global Regulations Radar cover some of the most important ESG and EHS regulations in effect today; however, the landscape is constantly evolving. Existing regulations are frequently updated and improved, while jurisdictions may propose and implement new rules as needed. This guide will be updated and expanded twice a year to keep companies abreast of the latest developments in ESG and EHS regulations.

Businesses can use the information in Global Regulations Radar to determine which regulations they will be subject to and when they will need to comply, determine the necessary actions, resources required and timeline to meet regulatory requirements, and ultimately leverage compliance to create business value.

For further information on the provisions contained in this publication, please contact Ramesh Narasimhan at [email protected] or the ERM contact listed in the document attachment.

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