Decoding Sustainability Regulations and Acronyms
The sustainability world and the regulations that govern it resemble a can of Campbell’s alphabet soup. There are more acronyms than any one person should be tasked with memorizing, and new ones surface every other day. With so many jumbled letters in this landscape, even those of us who work in the industry need a reference table from time to time.
That’s why we decided to make a reference table because as far as I can see, there isn’t a good one anywhere else. We added tags to each regulation so that you can more easily find the regulations that might be relevant to you or your business. To search for a specific law or keyword, hit ctrl+f on your keyboard and type what you’re looking for.
Available tags: GHG (greenhouse gas), Human Rights, Supply Chain, Sustainable Finance, ESG, Consumer Marketing, Manufacturing, Conservation
European Union (EU)
| Regulation Name | Acronym | Tags | Fiscal Year Start | Companies in Scope | Summary | More information |
|---|---|---|---|---|---|---|
| Corporate Sustainability Reporting Directive | CSRD | ESG, Supply Chain, GHG | 2024 & Reporting in 2025 | Begins first with companies that were covered by NFRD, gradually expanding to include small and medium EU companies and non-listed non-EU companies with more than €150m turnover in the EU | The CSRD replaces the NFRD as a comprehensive sustainability regulation. It covers the broad ESG issues and is done through the ESRS reporting system. | Regulation text |
| European Sustainability Reporting Standards | ESRS | ESG, Supply Chain, GHG | 2024 & Reporting in 2025 | Companies obliged to comply with the CSRD will have to report with the ESRS | The ESRS is the actual reporting framework of the CSRD. The ESRS is well-aligned with standards like the ISSB and GRI. | EU |
| Non-Financial Reporting Directive | NFRD | ESG | 2018 & Ending in 2025 | Large listed EU companies, banks, and insurance companies with more than 500 employees | The NFRD will be inactive as soon as CSRD reporting fully takes over in 2025. Currently, the NFRD covers a similar, yet less comprehensive range of ESG topics than the CSRD. | Regulation text |
| Sustainable Finance Disclosures Regulation | SFDR | ESG, Sustainable Finance | Partial: 2022 Full: 2023 | EU financial market participants like fund managers, asset managers, and anyone who offers investment products | The SFDR targets sustainable investment products in the European Union. It ensures that these funds, or financial products, are actually delivering on the claims they make. | SFDR Compliance Template Regulation Text |
| Carbon Border Adjustment Mechanism | CBAM | GHG | Reporting: 2023 Payments: 2026 | Any company that imports goods into the EU in the regulated sectors | The CBAM is the EU's carbon tax extended to imported goods. It captures the following sectors: cement, iron and steel, aluminum, fertilizers, electricity and hydrogen. | Full Info |
| EU Taxonomy | Consumer Marketing, Sustainable Finance, GHG, Supply Chain, Manufacturing, Conservation, ESG | Initial: 2020 Updated: 2024 | Companies that are captured under the scope of the CSRD or the SFDR | Essentially a type of dictionary that outlines what can and cannot be considered an environmentally sustainable economic activity. | European Commission Site | |
| Corporate Sustainability Due Diligence Directive | CSDDD | Supply Chain | Potentially taking effect in 2027 NOT YET APPROVED | TBD but likely large EU companies with more than 1,000 employees and €300 million in turnover | Companies will be obliged to investigate their value chains for human rights and environmental risks | European Commission Site |
| Critical Raw Minerals Act | CRMA | Supply Chain | TBD (expected approval in 2024) NOT YET APPROVED | Large companies that manufacture "strategic technologies" with identified critical raw materials | Companies will need to examine their supply chains to identify the source of the select raw materials that they use. | European Commission Site |
| EU Green Claims Directive | GCD | Consumer Marketing | TBD NOT YET APPROVED | Businesses making voluntary environmental claims about their products in the EU | Claims about sustainability credentials of businesses or products will have to be verified, measurable, and non-ambiguous | European Commission Site |
| Directive on Empowering Consumers for the Green Transition | ECGT | Consumer Marketing | TBD (expected approval in 2024) NOT YET APPROVED | Businesses advertising their products in the EU | Very similar to the GCD but with a wider scope. GCD focuses on stated environmental claims. ECGT covers unfair marketing practices that may mislead consumers, including images, icons, and all advertising methods. | Regulation Text |
| European Ecodesign Directive | Manufacturing | 2011 | Businesses manufacturing energy-use products like heaters, boilers, fridges, and light bulbs for use in the EU | Businesses must reduce their products' energy consumption and negative environmental impacts | Regulation TextEU Summary | |
| EcoDesign for Sustainable Products Regulation | ESPR | Manufacturing | TBD (expected approval in 2024) NOT YET APPROVED | Businesses manufacturing nearly all products for sale in EU | It expands on the ecodesign directive by including nearly all product categories aside from food to reduce energy consumption and negative environmental impacts | European Commission Site |
| Nature Restoration Law | Conservation | 2024 | Businesses not directly affected yet | EU countries are required to restore 30% of poor condition habitats by 2040, and 90% by 2050. Countries must develop plans to reach this and private sector may be required to contribute | European Commission Site | |
| New Batteries Regulation | Supply Chain | 2025 | Battery manufacturers and businesses that sell products with batteries | Business must conduct supply chain due diligence on their battery sourcing, and battery manufacturers will have specific environmental requirements and recyclability attributes to achieve. Will replace current EU battery regulation | EU Summary | |
| European Financial Reporting Advisory Group | EFRAG | 2001 | N/A | EFRAG is an advisory group that acts as an intermediary between the EU and other international financial reporting bodies. EFRAG played a crucial role in the development of the ESRS | EFRAG Home Page |
USA
| Regulation Name | Acronym | Tags | Fiscal Year Start | Companies in Scope | Summary | More information |
|---|---|---|---|---|---|---|
| SEC Climate Disclosure Rule | ESG, GHG | 2026 for large companies Smaller companies gradually included later | Publicly listed companies in the U.S. | The rule requires companies to disclose their climate-related risks and impacts. This includes Scope 1 & 2 GHG emissions for some companies. | SEC Press Release | |
| Climate-Related Financial Risk Act | CRFRA SB 261 | ESG | Fiscal Year: 2025 Reports: 2026 | Public and private companies in operating in California with annual revenues over $500 million | Qualified businesses will have to report on their climate-related financial risks and their plans to mitigate those | Bill Text |
| Climate Corporate Data Accountability Act | CCDAA SB 253 | GHG, Supply Chain | Fiscal Year: 2026 Reporting: 2027 | Public and private companies in operating in California with annual revenues over $1 billion | Companies must report their GHG emissions. This includes Scope 1, 2 and 3. | Bill Text |
United Kingdom (UK)
| Regulation Name | Acronym | Tags | Fiscal Year Start | Companies in Scope | Summary | More information |
|---|---|---|---|---|---|---|
| UK Sustainability Disclosure Standards | UK SDS | ESG | Expected 2024 | N/A | This is not a regulation, but rather the standards by which companies will have to comply to the upcoming sustainability disclosure rules in the UK | UK Government |
| UK Sustainability Disclosure Requirements | UK SDR | Sustainable Finance | 2024 | Companies offering financial products in the UK | This is similar to the SFDR in the EU. It manages the sustainability claims of financial products in the UK | UK Regulator Site |
| Streamlined Energy and Carbon Reporting | SECR | GHG | 2019 | Publicly listed and large companies in the UK | Companies must report on their Scope 1 and Scope 2 GHG emissions, as well as steps to improve energy efficiency | IBM Explainer |
Australia
| Regulation Name | Acronym | Tags | Fiscal Year Start | Companies in Scope | Summary | More information |
|---|---|---|---|---|---|---|
| National Greenhouse and Energy Reporting Act | NGER | GHG | 2007 | Australia's roughly 1,000 largest GHG emitters | Companies in the scope have to report on their Scope 1 and Scope 2 emissions | Australia Government |
| Climate-related financial disclosure | ESG, GHG, Supply Chain | 2024 | Large listed and unlisted companies as well as asset managers | Companies have to report on climate-related risks as well as all 3 scopes of GHG emissions | Australia Government | |
| Commonwealth Climate Disclosure | CCD | ESG | 2024 | Government departments and government-owned businesses | Organizations have to report climate-related risks similarly to the requirements of the TCFD | Australia Government |
New Zealand
| Regulation Name | Acronym | Tags | Fiscal Year Start | Companies in Scope | Summary | More information |
|---|---|---|---|---|---|---|
| Mandatory climate-related disclosures | Sustainable Finance, ESG | 2023 | Large financial institutions and asset managers in New Zealand | Climate risk and impact reporting that includes Scopes 1-3 GHG reporting in some cases | New Zealand Government |