Sustainable Development Goals (SDGs)

ESRS G1 – Business Conduct is the only thematic governance standard within the European Sustainability Reporting Standards (ESRS). It governs how companies must report on their ethics and business conduct: corporate culture, anti-corruption, whistleblower protection, supplier relationships and political engagement.

ESRS G1 is part of the set of standards implementing the Corporate Sustainability Reporting Directive (CSRD) and was developed by EFRAG. Like all thematic ESRS standards, its content is reported when business conduct is material to the company according to its double materiality assessment.

What ESRS G1 covers

It is important to define its scope clearly: G1 does not cover human rights, working conditions or environmental impact (those fall under social standards S1 to S4 and environmental standards E1 to E5). G1 focuses on the ethical conduct of the organisation. Its main subject areas are:

• Corporate culture and business ethics: values, codes of conduct and mechanisms for promoting them.
• Whistleblower protection: internal reporting channels (whistleblowing) and safeguards for those who report.
• Anti-corruption and anti-bribery: policies, training and systems to prevent, detect and investigate cases.
• Management of supplier relationships, including payment practices, with particular attention to avoiding late payment to SMEs.
• Political influence and engagement: lobbying activities and political contributions.
• Animal welfare, where relevant to the business.

What information ESRS G1 requires

Following the common structure of the ESRS, G1 asks companies to describe the role of governing bodies in business conduct, the policies adopted, the actions taken to implement them and associated metrics. Among the most distinctive requirements are anti-corruption systems (including training and confirmed cases) and data on average payment periods to suppliers.

The ESRS revision in 2026

Following the Omnibus I package (Directive (EU) 2026/470, published in the Official Journal of the EU on 26 February 2026), the European Commission tasked EFRAG with simplifying the ESRS. The draft delegated act with the revised ESRS was put out for public consultation between May and June 2026 and reduces mandatory data points by more than 60%. Application is planned from the 2027 financial year, with early voluntary adoption possible already in 2026. Until the delegated act is formally adopted (expected by end 2026), the 2023 ESRS remain the legal reference, including for G1.

Who it applies to

ESRS G1 applies to companies required to report under the CSRD. Following Omnibus, that universe is smaller: from the 2027 financial year the obligation is concentrated on companies with more than 1,000 employees and more than €450 million in turnover. Business conduct tends to be a material topic across the board, in any sector.

Why it matters

• Trust and integrity: ethics and transparency are the foundation of corporate reputation.
• Risk management: prevents corruption cases, sanctions and litigation.
• Healthy supply chain relationships: good payment practices support SME suppliers.

At Manglai we help companies measure their carbon footprint and prepare the sustainability information required by the ESRS and CSRD, integrating the environmental, social and governance dimensions. Discover how Manglai can help you.