The development WILL impact mandatory sustainability requirements for companies’ operations, products, and value chains and require changes in business activities. Or the development WILL have significant financial implications (including opportunities) or impact risks and liability of the business. Or the development is of significant business interest to the company. 

Below is a non-exhaustive list of examples of developments with high impact (at the scale of a corporation): 

The development COULD potentially impact corporate sustainability practices around companies’ operations, products, and value chains and require changes in business activities. Or the development COULD have moderate financial implications (including opportunities) or impact risks and liability of the business. Or the development is of moderate business interest or added value to the company.    

 Below is a non-exhaustive list of examples of developments with medium impact (at the scale of a corporation):

All other developments, including those that create or modify administrative obligations. Or the development is of some business interest or potential value to the company. 

Below is a non-exhaustive list of examples of developments with low impact (at the scale of a corporation): 

The development has no specific impact but is included for general awareness. 

Below is a non-exhaustive list of examples of developments with no impact (at the scale of a corporation): 

• New sustainability obligations introduced for the first time to businesses;
• Sustainability reporting obligations and updates modifying the scope and content of reporting; 
• Supply chain due diligence obligations, including both environmental and social aspects; 
• Simplification of sustainability requirements; and
• Anti-ESG trends or deregulation. 

• New fiscal incentives for sustainability-related initiatives. (Although fiscal incentives could be considered of Low Impact depending on what the incentive is about, they are of greater interest and importance to the Corporate Sustainability Offering); 
• Mandate on authorities to create sustainability-related requirements applicable to companies; 
• National initiative, policy, plan, strategy, etc. that sets out governmental Sustainability objectives; 
• New voluntary sustainability labeling schemes for products that would bring new financial and business opportunities (Normally, voluntary schemes would be considered Low Impact. However, schemes that support sustainability initiatives, even voluntary, are usually linked with fiscal or administrative incentives (such as tax reduction and priority for public procurement), thus of greater interest and importance to the Corporate Sustainability Offering); 
• Updates during the review of proposals on anti-ESG or deregulation that could lead to substantial changes in the regulatory outlook (for example, when a proposal is voted against or receives disagreement); 
• Voluntary guidance providing detailed information to implement an existing requirement (this is the only available guidance, or the guidance is clarifying for the first time compliance with the requirement. The requirement itself does not provide information on compliance. Therefore, the guidance is of relevance).

• Launch of new research project on Sustainability issues by the government; 
• Establishment, cancelation, or replacement of authorities (with modified competency); 
• Voluntary tools and guidance that support existing sustainability requirements (other guidance already exists, and this one provides additional information on compliance);
• Ratification of international conventions and treaties. 

• The development merely reminds companies of existing obligations, deadlines, etc.; 
• A law re-enacting existing obligations without changes; 
• The development changes the name of relevant authorities (without changing the competency); 
• Changes to administrative procedures within an authority. 

Heading Number

Heading Name

Content Guidance

This subheading includes requirements to adopt a transition plan for climate change mitigation, assess the company's strategy and business model resilience to climate change, adopt internal climate-related policies, and set internal climate-related targets.  

It also encompasses requirements to factor climate-related considerations into the remuneration of the company's governance bodies, apply internal carbon pricing schemes and assess anticipated financial effects of climate-related risks and opportunities.  

This subheading includes requirements related to measurement of gross Scope 1 greenhouse gas (GHG) emissions (company’s direct emissions). It encompasses information on GHG emissions methodologies and calculation tools and the percentage of direct emissions that are part of regulated trading schemes (such as the EU ETS).  

It also includes requirements to remove and store greenhouse gas (GHG) from own operations by enhancing natural sinks (such as reforestation and forest restoration) or applying technology solutions (such as carbon capture and storage – CCS). 

This subheading includes requirements related to the measurement of gross Scope 3 greenhouse gas (GHG) emissions, which refer to all indirect emissions (not included in Scope 2) that occur in the company’s value chain. It encompasses information on GHG emissions methodologies and calculation tools. 

It also includes requirements to remove and store greenhouse gases (GHG) from the company’s value chain by enhancing natural sinks (such as reforestation and forest restoration) or applying technology solutions (such as carbon capture and storage – CCS). 

This subheading includes requirements to carry out and plan climate change mitigation and adaptation actions (such as by reducing greenhouse gas (GHG) emissions and through decarbonization means), as well as to identify climate-related impacts, risks, and opportunities.  

It also encompasses requirements to implement GHG mitigation projects financed through carbon credits. 

This subheading includes requirements to measure energy consumption within the organization and outside it, considering total energy consumption and disaggregated by source (such as fossil fuels, nuclear sources, and renewable energies) 

It also includes requirements to measure energy intensity based on net revenue or other denominators (such as product units or size) and to reduce energy consumption. 

This subheading includes requirements to identify biodiversity-related impacts, risks, dependencies, and opportunities, as well as assess their anticipated financial effects. 

It also includes requirements to adopt internal biodiversity-related policies, carry out biodiversity-related actions (such as not harming protected species and avoiding impacts in biodiversity protection areas), set internal biodiversity-related targets and assess the company's strategy and business model resilience to biodiversity.  

It encompasses obligations to restore or protect habitat areas and to identify and assess the company's sites located in or near biodiversity-sensitive areas. 

This subheading includes requirements to identify marine resource-related impacts, risks, and opportunities, as well as assess their anticipated financial effects.  

It also encompasses obligations to adopt internal marine resources-related policies and targets, as well as actions to protect marine resources and the marine environment (such as restrictions related to the company's activities impacting marine protected areas and prohibition to harm marine animal or plant species).  

This subheading includes requirements to identify and assess the company's impact drivers on ecosystem change, such as land-use change, freshwater-use change, and sea-use change.  

It also includes requirements to assess the company's strategy and business model resilience to ecosystems, identify ecosystem-related impacts, risks, dependencies, and opportunities, and assess their anticipated financial effects.  

It encompasses requirements to adopt internal ecosystems-related policies, set targets and carry out ecosystems-related actions (such as avoiding impacts to ecosystems by not destroying a natural habitat and restoring and rehabilitating damaged sites). 

This subheading includes requirements to adopt internal policies to prevent and control air pollution, set internal air pollution-related targets and carry out air pollution-related actions, such as avoiding and reducing air pollution. 

It also encompasses requirements to measure air emissions from the company's own operations and assess anticipated financial effects of air pollution-related impacts, risks and opportunities.  

This subheading includes requirements to adopt internal policies to prevent and control water pollution, set internal water pollution-related targets and to carry out water pollution-related actions, such as avoiding or reducing water pollution. 

It also encompasses requirements to measure emissions of water pollutants from the company's own operations and to assess anticipated financial effects of water pollution-related impacts, risks and opportunities. 

This subheading includes requirements to adopt internal policies to prevent and control soil pollution, set internal soil pollution-related targets, and carry out soil pollution-related actions, such as avoiding or reducing soil pollution. 

It also encompasses requirements to measure soil emissions from the company's own operations and assess anticipated financial effects of soil pollution-related impacts, risks and opportunities. 

This subheading includes requirements to identify and measure hazardous substances, including substances of concern and substances of very high concern (SVHCs), used in production processes and placed on the market. 

It also encompasses requirements to adopt internal policies to prevent and control pollution from hazardous substances, carry out actions related to pollution prevention and control of hazardous substances (such as substituting and minimizing their use), set internal targets related to the prevention and control of pollution from these substances and assess anticipated financial effects of impacts from hazardous substances. 

This subheading includes requirements to identify waste-related impacts, risks, and opportunities, as well as their anticipated financial effects. 

It also encompasses requirements to adopt internal waste-related policies, set internal waste-related targets, and carry out waste-related actions, such as preventing waste generation and improving waste management. 

This subheading includes requirements to identify water-related impacts, risks, and opportunities, and assess their anticipated financial effects. 

It also encompasses requirements to adopt internal water-related policies, set internal water-related targets, quantify water consumption and carry out water-related actions, such as avoiding, reducing, reclaiming, and reusing water and restoring and regenerating water bodies. 

This subheading includes requirements to adopt internal policies related to the company's resource use, meaning products and materials used for the production and packing of products (such as raw materials and materials reuse). 

It also encompasses requirements to identify impacts, risks, and opportunities related to the products and materials the company manufactures and places on the market. 

This subheading includes requirements to identify impacts, risks, and opportunities related to the company's resource use, meaning products and materials used for the production and packing of products (such as raw materials and materials reuse) and assess their anticipated financial effects. 

It also encompasses requirements to identify and quantify resource use, set targets related to resource use, and carry out actions to improve the use of resources (such as increasing levels of resource efficiency and the use of secondary raw materials, application of circular design to improve the product's durability, and application of circular business practices, for example, refurbishing and reverse logistics). 

This subheading includes requirements to adopt internal policies to manage the impacts, risks and opportunities related to the products and materials the company manufactures and places on the market, set internal related targets (such as the increase of circular product design), and assess their anticipated financial effects.  

It also encompasses requirements to carry out actions related to the circularity of the company's products and materials (such as the application of circular design) and to identify and quantify products and materials (such as product description, rates of recyclable content, and product reparability). 

Circular design refers to, among others, increased product durability and optimization of use, and higher rates of reuse, repair, refurbishing, remanufacturing, repurposing, and recycling. It does not include ecodesign requirements to improve the energy efficiency of products. 

Heading Number

Heading Name

Content Guidance

This subheading includes requirements to identify, prevent, and record incidents of child labor and young workers exposed to hazardous work within the company's workforce and value chain. 

It also identifies prohibitions on the use of child labor by the company or in its value chain.  

This subheading includes requirements to identify, prevent and record incidents of forced labor within the company's workforce and value chain. 

It also identifies prohibitions on the use of forced labor by the company or in its value chain. Requirements related to prevention/prohibition of modern slavery, including human trafficking, are also encompassed by this subheading. 

This subheading includes requirements to implement measures to prevent and address work-related incidents or complaints of discrimination within the company's own workforce, such as on the grounds of gender, racial or ethnic origin, nationality, and disability.  

It also includes requirements to record and act on incidents of discrimination against external stakeholders, including suppliers and customers. 

This subheading also encompasses prohibitions of discriminatory actions. For example, prohibitions to discriminate against employees and job applicants, or against consumers through differentiated pricing, as well as refusing to deal with a supplier on trade union membership grounds 

This subheading includes requirements to engage in collective bargaining agreements and to record suppliers in which the right to engage in collective bargaining may be violated or at significant risk.  

This subheading also prohibits engaging in unfair labor practices, such as refusing collective bargaining. 

This subheading includes requirements to engage with workers and their representatives, as well as to engage with value chain workers and their legitimate representatives. 

It also includes requirements to engage in social dialogue, meaning all types of negotiation, consultation or information exchange between the company or its representatives and workers or their representatives. 

This subheading also prohibits engaging in unfair labor practices, such as refusing to carry out social dialogue.  

This heading includes requirements related to social protection, parental leave, wages, work-life balance, retirement/benefit plans and workplace harassment prevention.  

It also includes requirements to track information about employees and non-employees in the workforce, including the number of employees broken down by gender, number of permanent and temporary employees, employee turnover, the total number of non-employees, their relationship with the company, and the type of work they perform. 

It includes requirements to provide a notice period to employees and their representatives before implementing significant operational changes, and to record the number of employees hired and employee turnover by age group, gender, and region. 

This subheading includes requirements to pay adequate wages. 

It also includes requirements to assess the ratios of standard entry level wage by gender compared to local minimum wage and to disclose the ratio of the annual total compensation of the highest-paid individual in the company to the average annual total compensation for all employees. 

This heading includes requirements related to grievance and complaints mechanisms, as well as reporting and recording violations of social and human rights. 

It also includes requirements to implement processes to provide for or cooperate in the remediation of negative impacts that the company has caused or contributed to the workforce, value chain workers, affected communities and consumers and end-users. 

This subheading includes requirements to implement grievance/complaint mechanisms for own workforce, value chain workers, affected communities, and consumers and/or end-users.  

Grievance/complaint mechanisms refer to complaints or concerns raised by employees, stakeholders, community members, or others on issues that directly affect them. 

This subheading includes requirements to implement actions to prevent, mitigate and remediate negative impacts and risks on own workers, value chain workers, affected communities and on consumers and/or end-users. 

It also includes requirements to implement actions and set internal targets to achieve positive impacts and opportunities for own workforce, value chain workers, affected communities and for consumers and/or end-users. 

Heading Number

Heading Name
 

Content Guidance

This subheading includes requirements to ensure the company's strategy and business model reflect relevant stakeholders' interests, views, and rights, including workers, consumers, and affected communities. It also includes requirements to guarantee that the business strategy and business model encompass the findings of the materiality assessment, addressing impacts, risks, and opportunities. 

It also encompasses requirements to establish company's policies with respect to business conduct matters and foster its corporate culture. 

This subheading includes requirements to record the composition of the company's governance bodies, including gender distribution, age groups, and minorities. 

It also includes requirements to record gender distribution amongst employees at the top management level (levels 1 and 2 below the administrative and supervisory bodies).  

This subheading includes requirements to identify incidents of corruption and bribery in/related to the company. 

It also includes requirements to implement a system to prevent, detect, investigate, and respond to allegations or incidents related to corruption and bribery. 

This subheading also encompasses prohibitions on the practice of corruption and bribery. 

This heading includes requirements related to wages and benefits, operating and transformative costs, social investments and services, and sustainable investments. 

It also includes requirements to disclose the company's direct economic value generated and distributed (revenues, operating costs, financial costs, and profits), including employee wages and benefits, and community investments. 

This heading includes requirements related to tax strategy, compliance and transparency. 

It also includes requirements to adopt a tax governance and control framework. 

Heading Number

Heading Name
 

Content Guidance

This subheading includes information on incentives and the implementation of renewable energy sources and measuring their use.  

Information specific to the use of renewable energies in buildings is covered under subheading 140801. 

This heading includes information on nature rights (rights of nature – RoN) related to protecting the environment for all beings and protecting the rights of the Earth and all beings as inherent. It encompasses enacted nature’s rights in international documents or declarations, constitutions, national statutes, and/or local laws. 

RoN are considered a legal instrument that enables nature, wholly or partly, to have inherent rights and the same protection as people and corporations. Therefore, this subheading also includes information related to the defense of the environment in court cases – not only for the benefit of people but for the sake of nature itself. 

This subheading includes information related to the sustainable use of marine resources, including sand, crude oil, and natural gas. It also includes information related to the use and research of deep-sea ecosystems.  

Information on the protection of the marine environment is covered under subheading 140302. 

This subheading includes information on measures to identify, prevent, mitigate, and remediate any adverse environmental impacts and risks caused by the company, its products, or business relationships.  

It covers general environmental impacts identification, prevention, and remediation. Information related to specific environmental impacts (such as prevention of air pollution) is covered under the specialized subheadings. 

This subheading includes information on due diligence  

measures that companies must implement to avoid  

environmental impacts and violations. It also includes information on monitoring measures, progress towards implementation, and reporting on due diligence measures. 

This subheading includes information related to the development of measures to ensure environmental justice. 

“Environmental justice” refers to the fair treatment and meaningful involvement of all people, regardless of race, color, national origin, or income, in the development, implementation, and enforcement of environmental laws, regulations, and policies. 

Heading Number

Heading Name
 

Content Guidance

This subheading includes information on creating and  

ensuring equal opportunities in the workplace, such as by 

promoting policies on equal opportunities for all workers. 

This subheading includes information for companies to  

Improve the well-being of their employees, such as by implementing flexible hours, encouraging work from home, creating wellness programs, and guaranteeing the right to disconnect. 

This subheading includes information for companies to  

ensure their goods and services do not risk and/or harm  

consumers’ health and safety. 

This subheading includes information for companies to  

ensure they purchase and use sustainable products and services, as well as promote sustainable consumption to their workers, customers, and the community they are included in. 

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Heading Name
 

Content Guidance

This subheading includes information to ensure the safety of the company’s employees or clients while under the company’s supervision, including outside of regular workplace settings, such as during job-related travel. 

It also covers information regarding the roles and responsibilities of the board of directors or company management in decision-making processes, as well as the general oversight and management of the corporate level to ensure the company operates in accordance with relevant legislation and in a reasonably prudent manner. 

This subheading includes information on carrying out sustainable procurement practices, including implementing a procurement management framework.  

It also encompasses information on public procurement.