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Exploring ESRS G1 on Business Conduct: Key Insights🌟


The ESRS G1 standard is essential for understanding and reporting on business conduct, focusing on ethical practices, supplier relations, and political influence.


🔍 What is ESRS G1?

This European Sustainability Reporting Standard provides critical disclosure requirements that help stakeholders understand an organisation's approach to business conduct. It also enables a business to internally assess their present state of their internal governance. This includes strategies, processes, and performances concerning ethical business practices, relationship management with suppliers, and political influence.


🎯 Purpose of ESRS G1

ESRS G1 aims to enhance transparency and accountability by detailing:


  • Business Ethics & Corporate Culture

  • Supplier Relationship Management

  • Political Lobbying Activities



📑 Detailed Disclosure Requirements


  • Governance


Focusing on the roles and expertise concerning business conduct of administrative, management, and supervisory bodies.


  • Impact, Risk, and Opportunity Management


Identifying and assessing risks and opportunities related to business conduct.


  • Business Conduct Policies and Corporate Culture (G1-1)


Disclosure of policies and practices that promote ethical business behavior and corporate culture.


  • Management of Relationships with Suppliers (G1-2)


How the company manages its relationships with suppliers to ensure fair and ethical practices.


  • Prevention and Detection of Corruption and Bribery (G1-3)


Measures to prevent, detect, and respond to corruption and bribery incidents.


  • Incidents of Corruption or Bribery (G1-4)


Reporting on incidents and outcomes related to corruption or bribery.


  • Political Influence and Lobbying Activities (G1-5)


Extent and nature of the company’s political lobbying and its alignment with business interests.


  • Payment Practices (G1-6)


Practices regarding payment terms and handling of late payments, especially concerning SMEs.


💡 Why It’s Important

Complying with ESRS G1 not only meets regulatory demands but also enhances corporate reputation and stakeholder trust. It ensures businesses operate ethically, contributing to sustainable economic development through the promotion of just business practices and conduct.



For more detailed insights, refer to the ESRS G1: Business Conduct document and related sustainability standards.


About the Author

Cole Ezeilo is a social entrepreneur, creative, and ESG policy analyst with a background in International Relations. Through his experiences with social enterprises and impact measurement work with NGOs, Cole strives to add value by implementing sustainable and creative solutions for problems faced by society today. He is also a published freelance journalist, and an opinionated lover of music, film, and culturally-rooted food.


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