ESG regulatory initiatives, policies, frameworks and directives have been increasing year over year for the last century, with a steep increase from 2010 – present time. According to a PRI review of global ESG regulations, there were over 300 regulations from 2019-2022.
Cumulative Number of Policy Interventions
Source: PRI Responsible Investment Regulation Database. The regulation database is only as of 31 April 2022.
The rise in these regulations and policies has prompted investors to grasp an understanding of the new regulatory initiatives, as requirements are implemented through various business and investment processes. Sustainable finance regulations in general, were created in response to investor protection and transparency due to increased demand in sustainable investment products, in addition to supporting national policies on climate change and the Sustainable Development Goals and addressing Greenwashing.
Even though, investors understand and have accepted the importance of ESG regulation, the rapid developments, changing policies and regional nuances has presented challenges.
Learn about the latest in ESG regulatory developments with a comprehensive view of global initiatives, directives and frameworks curated for investors at the forefront of sustainability compliance.
REGULATIONS
Explore the Regulatory Landscape
Navigate seamlessly from the latest sustainable finance regulations to pivotal ESG mandates in your region. From the latest climate risk disclosure requirements to key ESG mandates worldwide.
Last Update: October, 2024
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Showing all Regulation(s)
Amended Supervisory Guidelines for ESG Investment Trusts
For Fund Managers
In Application
The Japan Financial Services Agency (FSA) amendments to Guidelines for Financial Instruments Business operators sets minimum supervisory and client disclosures and principles-based naming rule for ESG open-ended funds. It requires among others, that the consideration of ESG factors should be central in selecting assets and that the objective and characteristic of the fund are clearly described.
ESG Disclosures
Climate Disclosures
Article 29 of the Energy-Climate Law on non-financial reporting by market players
For Asset Managers
In Application
Article 29 of the Energy Climate Law requires the publication of sustainability-related information by financial undertakings operating in France. Management companies need to complete several specific templates about topics such as ESG (integrating environmental, social, and governance factors into investment policy), Climate (disclosing a strategy for aligning with the objectives of the Paris Agreement), and Biodiversity (disclosing a strategy for aligning with international biodiversity objectives).
ESG Disclosures
Climate Disclosures
Biodiversity Disclosures
ASRS
For Financial and Non-Financial Companies
2026
Australian Sustainability Reporting Standards will set out corporate disclosures on the sustainability-related risks and opportunities that companies face. They will form the basis of any future requirements in Australia for companies to report on risks and opportunities related to sustainability matters, including risks and opportunities arising from climate change and will be based on the IFRS Sustainability Disclosure Standards issued by ISSB. See ISSB standards.
ESG Disclosures
Climate Disclosures
Australian Modern Slavery Act
For Financial and Non-Financial Companies
In Application
Under the Australian Modern Slavery Act approximately 3,000 entities with AUD 100 million in revenues report annually about potential modern slavery risks in their operations and supply chains, as well as the actions taken to address these risks. Modern slavery, which includes slavery, forced or compulsory labor, child labor and human trafficking, result in major human rights abuses.
Due Diligence Human Rights
California SB 253 and 261
For Financial and Non-Financial Companies
2026 and 2027 (Scope 3 GHG)
The Climate Corporate Data Accountability Act (“SB 253”) and Greenhouse Gases: Climate-Related Financial Risk (“SB 261”). These legislations require large public and private companies with total annual revenues in excess of a billion dollars that conduct business in California, to make public disclosures regarding their Scope 1, Scope 2 and Scope 3 greenhouse gas (“GHG”) emissions and their climate-related financial risk.
Climate Disclosures
Corporate Sustainability Reporting Directive (CSRD)
For Financial and Non-Financial Companies
Phasing in (2025-2029)
The Corporate Sustainability Reporting Directive (CSRD) aims to enhance sustainability information reported by companies operating in the EU. It outlines, via 12 standards covering environmental, social and governance topics, the quantitative and qualitative information that issuers need to consider when preparing their annual report. The selection of information is subject to a double materiality assessment. It will impact approximately 50,000 companies including 10,000 companies globally.
ESG Disclosures
CRR and CRD (EBA Pillar III disclosure and CRD6)
For Banks
In application (EBA Pillar III), 11 January 2026 (CRD6)
The EU Capital Requirement Regulation requires banks to disclose information on their exposure to ESG risks, climate-change related physical and transition risks as well as related mitigation measures and Taxonomy alignment (so-called EBA Pillar III ESG disclosure). Further amendments were adopted (so-called CRD6) expanding the EBA pillar III transparency requirements to smaller banks and mandating the adoption of transition plans by banks (subject to annual supervisory examination review).
ESG Disclosures
Climate Disclosures
CSDS
For Financial and Non-Financial Companies
2026
Canadian Sustainability Disclosure Standards (CSDS) will+D30 set out corporate disclosures on the sustainability-related risks and opportunities that companies face. They will form the basis of any future requirements in Canada for companies to report on risks and opportunities related to sustainability matters, including risks and opportunities arising from climate change and will be based on the IFRS Sustainability Disclosure Standards issued by ISSB. See ISSB standards.
ESG Disclosures
Climate Disclosures
Devoir de vigilance
For Financial and Non-Financial Companies
In Application
The French Corporate Duty of Vigilance Law requires companies with 5,000 employees in France as well as companies with 10,000 employees in France and abroad to establish, effectively manage, and communicate measures to identify and prevent abuses of human rights, fundamental freedoms, health and safety of the individuals, and the environment.
Due Diligence Human Rights
Environmental Impact
Doctrine AMF 2020-03
For Fund Managers
In Application
The AMF doctrine 2020-03 defines disclosures, marketing and portfolio requirements for sustainable products that are authorized to be marketed to French retail investors (AIFs, UCITS and units of account in life insurance). The rules, including ability to market the sustainability features of the product, vary depending of the level of sustainability approach of the product: "significantly engaging", "non-significantly engaging" or "not meeting central or limited communication standards".
ESG Disclosures
ESG Naming Rules
ESMA guidelines for funds names
For Fund Managers
21 November 2024 (new funds), 21 May 2025 (existing funds)
ESMA guidelines set minimum standards for funds using ESG-related terms in funds names (e.g. sectoral exclusions based on EU PAB or EU CTB requirements, minimum investments to meet ESG characteristics or objective). Funds which are not able to meet these requirements need to stop using ESG-related terms in their name.
Min. Portfolio ESG standards
EU Benchmark Regulation
For Index Providers, Benchmark Administrators
In Application
The EU Benchmark Regulation introduces sustainability transparency requirements for benchmarks administrators (including a list of mandatory and voluntary ESG metrics to report against) and it creates two optional low-carbon benchmarks: the EU Paris-Aligned Benchmark and the EU Climate Transition Benchmark.
ESG Disclosures
EU Taxonomy
For Financial and Non-Financial Companies
In Application
The EU Taxonomy Regulation establishes a list of sustainable activities to scale up sustainable investments and avoid greenwashing. It requires approximatively 50,000 companies captured under the Corporate Sustainability Reporting Directive (CSRD) to disclose the share of their turnover, CapEx and OpEx aligned with specific criteria and conditions underpinning six environmental objectives. It also applies to financial products with ESG claims captured by the Sustainable Finance Disclosure Regulation (e.g. discretionary portfolio, investment funds).
ESG Disclosures
Climate Disclosures
Guidance 05/2021
For Fund Managers
In Application
In its Guidance 05/2021 on preventing and combating greenwashing, FINMA sets out its expectations and current practice regarding the management of sustainability-related collective investment schemes at fund and institutional level. In addition, it warns financial service providers, who offer sustainability-related financial products, of potential greenwashing risks in the advisory process and at the point of sale.
ESG Disclosures
ESG Naming Rules
Guideline B-15
For Insurers, Banks
In Application
Guidelines environmental risk management
For Banks, Insurers, Asset Managers
In Application
Environmental Risk Management
ISSB standards
For Financial and Non-Financial Companies
Dates determined by local jurisdictions
The International Sustainability Standards Board standards are two sustainability and climate disclosure standards (IFRS S1 and IFRS S2), building on several existing sustainability reporting frameworks such as those from the Taskforce on Climate-related Financial Disclosures (TCFD) and the Sustainability Accounting Standards Board (SASB). It aims to establish a global baseline for sustainability reporting. Supported by the G20 these two standards are expected to be endorsed and made mandatory by many jurisdictions, including Australia, Brazil, Canada, China, Hong Kong, India, Japan, New-Zealand, Singapore, the UK. Requirements and scope may still vary across jurisdictions.
ESG Disclosures
Climate Disclosures
Issuer ESG reporting + ISSB
For Financial and Non-Financial Companies
FY 2025 (listed) and 2027 (non listed)
ESG Disclosures
Climate Disclosures
Japan TCFD + ISSB
For Financial and Non-Financial Companies
In application (TCFD)/2026 (ISSB)
All listed companies in Japan (approximately 4,000 companies, including foreign companies listed in Japan) are required to disclose sustainability-related information using the TCFD pillars (Strategy, Metrics and Targets, Governance and Risk Management).Companies must disclose this information in their Annual Securities Report and Securities Registration Statement. Japan is expected to require new disclosures aligned ISSB-based sustainability standards after 2027.
ESG Disclosures
Climate Disclosures
MiFID II/IDD/European ESG Template. Sustainability Preferences
For Asset Managers, Asset Owners, Advisors
In Application
EU MiFID II and IDD requires financial advisors to determine client sustainability preferences in conjunction with suitability assessments. Clients are to be asked whether they want a product meeting a certain level of sustainable investment, Taxonomy alignment or considering Principal Adverse Impact indicators. The EET is an open-source template created to facilitate the exchange of data between product manufacturers and distributors for the purposes of fulfilling these regulatory requirements.
ESG Disclosures
Ordinance on Climate Disclosures
For Financial and Non-Financial Companies
In Application
The Swiss Climate Ordinance requires from large public companies (with 500 or more employees and at least CHF 20 million in total assets or more than CHF 40 million in turnover) climate disclosures aligned with TCFD, but based on double materiality assessment. In addition, it requires the adoption of a transition plan achieving the goal of net zero greenhouse gas emissions by 2050.
Climate Disclosures
Regulation 235/14
For Pension Funds
In Application
Regulation 235/14 amends General Regulation 909 of the Pension Benefits Act. The regulation includes amendments required plan administrators to file Statements of Investment Policies and Procedures (SIPPs) with the pension regulator and include information about whether, and if so, how, ESG factors are incorporated.
ESG Disclosures
ESG Integration
Retail funds with ESG investment focus
For Fund Managers
In Application
Revised Circular on ESG and Climate Funds
For Fund Managers
In Application
SEBI BRSR
For Financial and Non-Financial Companies
In Application
The BRSR requires the top 1,000 Indian companies to provide qualitative and quantitative metrics on sustainability-related factors including 98 essential indicators (mandatory) and 42 leadership indicators (voluntary) across nine themes: Environmental protection, Human rights, Integrity, Employee well-being, Sustainable goods and services, Responsible consumer engagement, Stakeholder responsiveness and Responsible public policy engagement.
Climate Disclosures
ESG Disclosures
SEBI ESG funds
For Asset Managers
In Application
Under SEBI guidelines, ESG funds need to invest at least 80% of assets into activities aligned with one of six themes which must be clearly stated in the fund’s name: Exclusion, Integration, Best-in-class and positive screening, Impact investing, Sustainable objectives, Transition or transition-related investments. ESG funds are also required to invest at least 65% of its AUM in companies which are reporting on comprehensive BRSR, and providing assurance on BRSR Core disclosures.
ESG Labels
ESG Disclosures
ESG Naming Rules
SEC Climate Risk Disclosure
For Financial and Non-Financial Companies
TBC
The SEC Climate Disclosure Rule requires companies (SEC registrants) to disclose certain climate-related information, ranging from greenhouse gas emissions to expected climate risks to transition plans. The SEC approach is only partially aligned with the ISSB climate-related standard and TCFD recommendations (e.g. scope 3 emissions).
Climate Disclosures
SEC Name Rule
For Investment Funds
In Application
The Names Rule prohibits registered funds from using “materially deceptive or misleading” names. In its updated version, the rule now explicitly covers the use ESG terms in name of funds. It requires funds to adopt a policy to invest 80 % of their assets according to what the terms used in the name of fund suggest.
ESG Naming Rules
Solvency II
For Insurers
In Application
Supply Chain Due Diligence Act
For Financial and Non-Financial Companies
In Application
The German Supply Chain Act, or Lieferkettengesetz (LkSG), requires German companies with at least 1,000 employees in Germany to prevent the violation of human and environmental rights in their supply chains, take mitigation, follow-up measures, and document their compliance with the due diligence obligations.
Due Diligence Human Rights
Sustainability Disclosure Requirements (SDR)
For Listed Issuers and UK Domicilied Funds, Asset Managers
Phasing in: all application except naming rules (2 April 2025), and entity/product disclosures (2 December 2025/2026)
UK SDR is a comprehensive package of measures to help consumers navigate the market for sustainable investment product and mitigate greenwashing risks. It includes, for FCA-authorized firms, an anti-greenwashing guidance and climate disclosures. For UK domiciled ESG funds, it includes four sustainability labels (Focus, Improvers, Impact, Mixed) Goals, disclosures and naming rules.
ESG Disclosures
ESG Naming Rules
ESG Labels
Sustainability reporting guidelines
For Financial and Non-Financial Companies
In Application
China’s three major stock markets, the Shanghai Stock Exchange (SSE), Shenzhen Stock Exchange (SZSE), and Beijing Stock Exchange (BSE), announced the publication of new sustainability reporting guidelines for listed companies. It covers a broad range of ESG topics and it is based on double materiality. The Ministry of Finance is a consulting on ISSB-inspired nation-wide sustainability standards which could become mandatory in 2030.
ESG Disclosures
Climate Disclosures
Sustainable Finance Disclosure Regulation
For Asset Managers, Asset Owners, Advisors
In Application
SFDR sets minimum disclosure standards for ESG investment products (e.g. share of sustainable investments and Taxonomy alignment) and financial markets participants who issue them (e.g. Principal Adverse Indicators). It requires these products to be classified as either promoting environmental or social characteristics (Article 8 funds) or pursuing sustainability objectives (Article 9 funds).
ESG Disclosures
ESG Labels
TCFD disclosures
For Financial and Non-Financial Companies
In Application
TCFD is a voluntary standard for disclosing climate-related risks and opportunities organized around four core pillars: governance, strategy, risk management, as well as metrics and targets. Several jurisdictions, such as Canada, the UK, Switzerland, Japan, Hong-Kong, Singapore and New-Zealand, require TCFD-aligned disclosure on an annual basis. The requirements may vary by jurisdiction.
Climate Disclosures
The Corporate Sustainability Due Diligence Directive (CSDDD)
For Financial and Non-Financial Companies
Phasing in (July 2027-July 2029)
The Corporate Sustainability Due Diligence Directive requires large financial and non-financial companies operating in the EU to adopt a transition plan (compatible with limiting global warming to 1.5 °C in line with the Paris Agreement). They must also perform due diligence on human rights and environmental negative impacts in their value chains (only non-financial companies). This directive will impact approximately 5,500 companies.
Due Diligence Human Rights
Environmental Impact
Climate Transition
TNFD
For Financial and Non-Financial Companies
In Application
UCITS/AIFMD/MiFID
For Investment Firms, Asset Managers
In Application
The UCITS directive, AIFMD and MiFID require asset managers and investments firms to integrate and manage sustainability risks alongside financial risks. Sustainability risk being defined as an environmental, social or governance event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of the investment.
ESG Integration
ESG Risk Management
UK Modern Slavery Act
For Financial and Non-Financial Companies
In Application
The UK Modern Slavery Act 2015 introduced a requirement that UK businesses over a certain size must publish an annual slavery and human trafficking statement setting out the steps each has taken during the financial year to ensure that slavery and human trafficking is not taking place in their supply chains or business.
Due Diligence Human Rights
UK SDS
For Financial and Non-Financial Companies
2027
UK Sustainability Disclosure Standards (SDS) will set out corporate disclosures on the sustainability-related risks and opportunities that companies face. They will form the basis of any future requirements in the UK for companies to report on risks and opportunities relating to sustainability matters, including risks and opportunities arising from climate change and will be based on the IFRS Sustainability Disclosure Standards issued by ISSB. See ISSB standards. So far the UK requires companies to perform climate disclosures aligned with TCFD. For financial firms reports, both are at entity and product level.
ESG Disclosures
Climate Disclosures
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