ESRS G1 Business Conduct

Definition

ESRS G1 Business Conduct is a Topical ESRS Standard in the cluster of Governance. It is the only standard in that cluster.

The objective of this Standard is to specify disclosure requirements which will enable users of the undertaking’s sustainability statements to understand the undertaking’s strategy and approach, processes and procedures as well as its performance in respect of business conduct. In general, the actions of an undertaking cover a wide range of behaviours that support transparent and sustainable business practices to the benefit of all stakeholders. This Standard focusses on the following practices specified by the Corporate Sustainability Reporting Directive (CSRD), indicated in this Standard as business conduct or business conduct matters:

• corporate culture
• management of relationships with suppliers
• avoiding corruption and bribery
• engagement by the undertaking to exert its political influence including lobbying
• protection of whistle-blowers
• animal welfare
• payment practices, specifically with regard to late payment to small and medium enterprises (SMEs).

Disclosure Requirements

ESRS G1 formulates 6 distinct disclosure requirements.

References

• EFRAG, Draft ESRS G1 Business conduct, Nov 2022