Latest update on November 14, 2023
In a nutshell:
- ESRS G1 outlines the requirements for companies to report on governance aspects
- The main topic covered is business conduct, referring to a company’s (1) strategy and approach, (2) processes and procedures, and (3) its performance
- The specific disclosure requirements and topics covered from ESRS G1 result from your double materiality assessment
The Governance Standard deals provide a comprehensive framework for companies to report on their business conduct. ESRS G1 sets the disclosures for companies to report on their business strategy and approach, processes, procedures and performance. It encompasses various areas such as supplier relationship management, strategies for mitigating corruption and bribery risks, and measures for whistleblower protection.
The official information on the Governance ESRS can be found on pages 236 - 244 of Annex I from the European Commission's first set of standards publication. Similar to the Environmental and Social Standards, the disclosure requirements of ESRS G1 can be categorized into the four reporting areas from ESRS 2 (governance, strategy, impact, risk and opportunity management, and metrics and targets).
The particular disclosures and the range of topics addressed regarding ESRS G1 can be derived from your initial double materiality analysis.
ESRS G1: Business Conduct
Sub-topics G1
- Corporate culture
- Protection of whistleblowers
- Animal welfare
- Political engagement and lobbying activities
- Management of relationships with suppliers, including payment practices
- Corruption and bribery
Sub-sub-topics of G1 - Corruption and bribery
- Prevention and detection, including training
- Incidents
Objectives of G1
The objective of ESRS G1 is to understand how the administrative, management and supervisory functions shape, monitor, promote and evaluate a company’s culture. The Governance Standard focuses on the following business conduct matters:
- Business ethics and organizational culture, including the policies for the topics of anti-corruption and anti-bribery, the protection of whistleblowers, and animal welfare
- Managing relationships with suppliers, including practices related to payment, especially late payment to small and medium-sized companies
- Activities and commitments related to political influence, including lobbying
Inform yourself further and gain valuable insights of the other ESRS:
