ESG regulation is expanding globally, with governments, regional blocks and international organisations all crafting their own rules and standards at a rapid pace, spanning sectors and targeting both companies and investors.
Regulations take the form of various reporting requirements and rules that directly affect the way companies operate. To address legal uncertainties, particularly for SMEs, efforts like the International Sustainability Standards Board are working to develop a common global basis for ESG regulations. However, work is in progress and the regulatory landscape is constantly evolving.