ESRS G1 Business Conduct

ESRS G1 (Governance, Business Conduct) is the only topical governance standard within the European Sustainability Reporting Standards (ESRS), adopted under the Corporate Sustainability Reporting Directive (CSRD) through Delegated Regulation (EU) 2023/2772. While the environmental and social standards cover E and S topics, G1 consolidates disclosures on how a company steers its business activities ethically. The standard requires transparency on corporate culture, the policies and processes for business ethics, the prevention of corruption and bribery, political engagement including lobbying, and the management of supplier relationships.The specific disclosure requirements are organised into G1-1 through G1-6: G1-1 covers business conduct policies and corporate culture, G1-2 the management of supplier relationships, G1-3 the prevention and detection of corruption and bribery, G1-4 confirmed incidents of corruption or bribery, G1-5 political influence and lobbying activities, and G1-6 payment practices, particularly towards small and medium-sized enterprises. The scope of reporting depends on the materiality assessment: the full set of G1 data points must be disclosed only where business conduct is assessed as material under the double materiality principle.For compliance officers, ESRS G1 dovetails closely with existing obligations under the German Supply Chain Due Diligence Act (LkSG), anti-corruption rules, and whistleblower protection. Many organisations can draw on their existing compliance management systems, codes of conduct, and whistleblowing procedures as a data foundation. The challenge lies in translating qualitative descriptions into auditable disclosures compatible with the ESRS data points, since the sustainability statement is subject to external assurance, initially at a limited assurance level.