7 Global ESG Regulations & Frameworks You Should Know in 2025
A surge in environmental, social, and governance (ESG) regulations is driving sustainability reporting and climate-focused action to the forefront of global business priorities. Organizations, even those not yet legally obligated, are increasingly adopting voluntary reporting to add value and build public trust. This article highlights seven crucial ESG regulations and frameworks to be aware of in 2025—whether you’re preparing a report or seeking inspiration.
Stephen Connolly As a content writer for Blancco, Stephen uses his 10+ years of experience researching and writing about technology to explain how data sanitization is the secure, compliant, efficient, and sustainable choice for end-of-life data management.
Sustainability guidelines increased by 155% in a decade
The number of frameworks for climate action and corporate social responsibility reporting jumped by 155% between 2011 and 2021. And that figure has grown by an astonishing 647% since 2000.
In terms of legal standards, only 38 countries had mandatory ESG regulations in 2022, but the number is on the rise. The EU’s Corporate Sustainability Reporting Directive (CSRD) and the Australian Securities & Investments Commission (ASIC) sustainability reporting rules are the latest additions, but more are expected to follow.
ESG reporting is also a priority for business leaders
While ESG reporting and action are not universally mandated yet then, they remain high on the agenda for many organizations. Eighteen percent of mid-market companies and 37% of large companies have a chief sustainability officer, but many more organizations distribute responsibility for ESG across the C-suite.
Senior leaders are taking charge of these initiatives because ESG action drives significant strategic value beyond compliance.
Positive ESG progress attracts potential investors, acquirers, commercial partners, and consumers. The Carbon Trust found that 45% of shoppers would abandon a brand that refuses to measure its carbon footprint. The European Central Bank discovered that banks charge higher interest rates to firms with greater carbon emissions.
Some banks are using interest rates to levy climate risk premiums on organizations not taking action on ESG matters. The data for this graph was taken from the European Central Bank’s Working Paper Series publication, ‘Climate risk, bank lending and monetary policy.’
Even if reporting is not mandatory for your organization yet, 2025 could be the year you take up the challenge and adopt one of these internationally recognized frameworks.
ESG frameworks and standards
1. The International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards (S1 and S2)
An international framework developed by the International Sustainability Standards Board (ISSB) for the IFRS, these standards require companies to disclose sustainability-related risks and opportunities affecting financial outcomes.
The IFRS S1: General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2: Climate-related Disclosures standards emerged from the COP26 summit in 2021. These standards were a response to demand for standardized guidelines that could influence national, sectoral, and company policy. Note that while they are voluntary in most jurisdictions, for some financial organizations these standards may be required. For example, the Singapore Exchange Regulation has announced that reporting will be a requirement from FY 2025.
Who: The IFRS S1 and S2 standards are typically adopted by publicly listed companies and large private companies seeking to publish information for investors. However, other organizations can adopt the standards.
When: Effective from January 2024, with adoption depending on regulatory decisions in different jurisdictions.
What: IFRS S1 covers general sustainability-related financial disclosures, while IFRS S2 focuses on climate-related disclosures.
Where: International, depending on adoption by individual countries and regulatory bodies. According to the IFRS, more than 20 jurisdictions have already decided to use or are taking steps to introduce ISSB standards. This includes the EU, whose CSRD regulation is informed by IFRS S1 and IFRS S2.
Status: Voluntary unless mandated within a jurisdiction. Increasing global adoption is expected.
2. The Global Reporting Initiative (GRI) standards
The most widely used voluntary international framework, the GRI is an independent nonprofit organization that develops rigorous sustainability reporting practices.
Who: The GRI standards are used by around 14,000 organizations in over 100 countries. Notable organizations using the standards include Coca Cola HBC (Switzerland), Ecopetrol (Colombia), Enel (Italy), City Developments Limited (Singapore), and JSW Steel (India).
When: Reporting timelines depend on individual organizations. The last major update to the GRI standards, which was made in 2021, came into effect in 2023.
What: Established as a modular set of universal, sector, and topic standards, the three universal standards apply to all organizations. The sector and topic standards are chosen in accordance with the reporting organization’s areas of focus.
Where: Global.
Status: Voluntary and ongoing.
3. B Lab standards for B Corp status
As an independent, nonprofit network, the B Lab sets its own sustainability standards. Achieving the status of certified “B Corp” has become coveted in the business world, and the scheme has more brand recognition among consumers and investors than other frameworks.
The qualification process to attain B Corp status is notoriously challenging and it’s “rare to achieve” the 80+ point qualifying score on the B Impact Assessment (BIA) on the first attempt.
Who: Businesses of all sizes and sectors may choose to become certified B Corporations by meeting the standards set by B Lab. There are over 9,500 certified companies in 102 countries, with a particular focus on small-medium enterprises and consumer-facing brands such as Patagonia, Ben & Jerrys, TOMS, and Moodle.
When: B Corps must complete their assessment every three years to maintain certification. Companies can choose to report more frequently if they wish.
What: Applicants complete a BIA by answering a series of questions about their company’s performance across five categories, including governance, workers, community, the environment, and customers. Companies must achieve a score of 80+ points (out of 200) for certification. Certification is also paid for in line with the organization’s financial status.
Where: Global.
Status: Voluntary. Expect an update to B Lab standards in 2025.
4. The United Kingdom Sustainability Disclosure Requirements (SDR)
As of March 2025, the UK government is considering mandatory ESG regulations for UK-listed companies, with potential implementation of its Sustainability Disclosure Requirements (SDR) legislation beginning on or after January 1, 2026. Affected organizations would need to report sustainability-related information.
Given the current UK government’s commitment to clean energy by 2030, it is possible these sustainability requirements will eventually extend beyond large corporates to reach more organizations.
Who: Large UK-listed companies, asset managers, and financial institutions, with potential expansion to other businesses.
When: Planning is underway and reporting may begin as early as Q1 2026.
What: Sustainability-related risks and opportunities aligned with the forthcoming UK Sustainability Reporting Standards (SRS). These standards will be based on IFRS S1 and IFRS S2.
Where: The United Kingdom, with potential influence on companies operating within its jurisdiction.
Status: Mandatory for certain entities, with future expansion to follow. Updates are expected in Q1 2025.
5. California’s Climate Accountability Package
Set to take effect in 2026, California climate law is composed of three senate bills (SB): the Climate Corporate Data Accountability Act (SB 253), the Climate-Related Financial Risk Act (SB 261), and SB 219, which was signed into law in 2024 and amended SB 253 and SB 261.
California’s landmark legislative is the most comprehensive in the U.S. and will impact many of its largest organizations.
Who: Companies with revenues exceeding $1 billion and doing business in California must disclose their carbon emissions (SB 253), and businesses with over $500 million in revenue will also report on climate-related financial risks and remediation measures (SB 261).
When: Entities must begin disclosing Scope 1 and Scope 2 greenhouse gas (GHG) emissions from 2026, based on 2025 data, with Scope 3 emissions reporting commencing in 2027. Climate-related financial risk reporting begins in 2026, also based on 2025 data.
What: Under SB 253, companies must disclose their Scope 1, 2, and 3 (upstream and downstream) GHG emissions. SB 261 establishes that entities must report on climate-related financial risks and any steps taken to mitigate them. For example, a company may report that the increased number and severity of wildfires is causing a greater risk to operations along with how they are protecting themselves. The law doesn’t mandate any specific actions, just disclosure. If a company has no risk mitigation strategy, investors, regulators, and the public will be able to see this.
Where: The reporting requirements apply to companies “doing business” within the state of California. This has not been defined yet, but experts expect that it will be broadly applied to mean general operations in the state.
Status: The framework is mandatory, with SB 253 and SB 261 signed into law on October 7, 2023, and subsequent amendments under SB 219 enacted on September 27, 2024. The California Air Resources Board (CARB) will oversee compliance.
6. The Australian Sustainability Reporting Standards (ASRS)
The ASRS, which commenced in January 2025, requires large companies to disclose the financial consequences of climate change and their responses to these risks. Over 1,800 firms will need to comply, with the regime phased in over three years based on company size.
Who: Large Australian companies meeting certain financial and operational criteria (including amount of revenue, value of assets, and number of employees). There is also evidence that Australian state governments will follow suit and require public sector organizations to comply with frameworks based on the ASRS.
When: The reporting requirements are expected to come into effect starting in 2026 for the 2024-25 financial year.
What: Companies are required to report on climate-related risks and opportunities, as well as governance, strategy, and key metrics and targets related to climate, including Scopes 1, 2, and 3 GHG emissions. Reporting is based on standards set by the Australian Accounting Standards Board (AASB). AASB S1 and AASB S2 and aligned with IFRS S1 and IFRS S2 mentioned above.
Where: The requirements cover companies operating in Australia, including both domestic and registered foreign companies meeting the thresholds for reporting under the Corporations Act (2001).
Status: This ESG regulation is mandatory and is administered by the Australian Securities and Investments Commission (ASIC).
7. The EU Corporate Sustainability Reporting Directive (CSRD)
Comparable to the impact of EU GDPR on data protection, the CSRD is a comprehensive mandatory framework that is already shaping how other nations standardize ESG reporting requirements. The CSRD is based on 12 European Sustainability Reporting Standards (ESRS), which cover a wide range of ESG topics, including the circular economy and climate change.
Effective from January 2025, the European Union’s Corporate Sustainability Reporting Directive expands reporting requirements to approximately 50,000 companies. It mandates comprehensive ESG disclosures.
Who: Large companies and listed small and medium enterprises in the EU, as well as certain non-EU companies with significant operations in the EU.
When: CSRD reporting starts in 2025 for the 2024 financial year, with a phased implementation in the following years for different company sizes.
What: ESG impacts, risks, and opportunities, following the European Sustainability Reporting Standards.
Where: The European Union, with implications for non-EU companies operating within the region.
Status: Mandatory, with phased implementation starting from 2024 financial year reporting. The directive is currently being enacted in EU countries.
How ESG regulations and data sanitization fit together
The global focus on sustainability is growing. More regulations and more frameworks mean increased scrutiny not just on what you measure but on how you can reduce your footprint.
How you manage the data in your organization can help you to improve ESG performance.
For example, reducing unnecessary data storage by permanently erasing redundant, obsolete, and trivial (ROT) data can lower Scope 2 and 3 emissions because less data in your data centers requires less energy to power and cool servers.
Shifting how you process end-of-life IT assets from physical destruction to software-based sanitization and reuse can also have a major impact. Less destruction of laptops and drives means less e-waste, less pollution, and a more powerful circular economy.
By integrating these practices, your organization will not only improve its environmental impact but also enhance security and data law compliance. As digital transformation accelerates, companies that proactively and sustainably manage their data and IT assets will lead the way in ESG excellence.
