In today’s evolving regulatory landscape, non-financial reporting is no longer just about compliance—it’s an opportunity. It is an opportunity for businesses to develop strategies that align with their unique business goals and requirements. Our team of specialists has been at the forefront of sustainable corporate strategy development and implementation for over a decade, ensuring you receive the most relevant guidance and tools tailored to your specific situation. The disclosures requirements invite businesses to engage with sustainability beyond reporting and compliance. It is a chance to explore new strategic avenues, enhance eco-efficiency; and strengthen reputation through transparency and alignment with standards. At Waveritas, we provide tailored sustainability solutions to help you not only meet regulatory demands but gain a competitive edge through strategic ESG integration.
Overview
This EU Corporate Sustainability Reporting Directive (CSRD) is effective as of 2024, applies to corporations that meet the following criteria:
Implementation and obligations
To comply with the CSRD, companies must follow the European Sustainability Reporting Standards (ESRS). These standards combine materiality assessments and supply chain evaluations with detailed ESG disclosures across environmental, social, and governance domains.
At Waveritas, we provide expert assistance to help companies navigate these complexities, ensuring full compliance with ESRS while integrating sustainability strategies that drive business performance beyond reporting.
ESRS structure overview:
Overview
The Sustainable finance disclosure regulation (SFDR) is effective as of 2021 applies to financial market participants. It was adopted to mobilize capital for sustainable growth and to help meet the UN Sustainable Development Goals, and the commitments of the Paris Agreement. Another key objective of the regulation is to enhance transparency and streamline rules regarding sustainability disclosures for financial products; especially for those products that promote sustainability features. The regulation establishes the following product classifications:
Article 6: Products that do not promote sustainability characteristics
Article 8: Products that promote environmental/social characteristics
Article 9: Products that have sustainable investment as their primary objective
Implementation and obligations
The SFDR introduces overarching principles and requirements, supported by Regulatory Technical Standards (RTS), which specify how financial market participants should disclose sustainability-related information.
The Taxonomy Regulation complements SFDR by defining the criteria under which economic activities contribute to EU environmental goals. While SFDR/RTS/Taxonomy standards differ for financial market participants, they align and overlap with CSRD/ESRS requirements.
The SFDR, RTS and Taxonomy standards for financial market participants differ from those of corporations, although there is some alignment and overlap with the CSDR/ESRS.
Overview
The Non-financial reporting obligation (CO 946), regulation is effective as of 2023 and concerns corporations that meet the following criteria:
Listed companies with
Implementation and obligations
Companies in scope are to report on the matters detailed in article 946b. The report should cover environmental, social and governance (ESG) topics. Key topics are:
Additional disclosure obligations apply to companies in the mining industries (oil, gas, metals, timber), particularly regarding human rights and interactions with state bodies.
The reporting format is flexible, allowing companies to adopt the approach that best suits their operations. However, the reports must remain publicly accessible for at least 10 years.
This Ordinance on Climate Disclosures (SWISS TCFD) is effective as of 2024 and complements CO946 with the optional choice for companies in scope to disclose their climate-related aspects under the TCFD (Task Force on Climate-related Financial Disclosures) framework. The intend of this political regulation is to align Swiss law with international standards and streamline processes.
The voluntary standard Swiss Climate Scores provides a framework for reporting climate-related factors to investors. The framework references the net zero target 2050 in accordance with the Paris agreement.
The Hong Kong Stock Exchange (HKEX) has issued a ESG reporting requirements which include mandatory and “comply or explain” provisions for listed companies. Main mandatory provisions include a variety of indicators and aspects regarding the governance structure, materiality analysis and environmental and social matters.
Based on broad support the HKEX aims to broaden the existing ESG reporting requirements to reflect IFRS S2 guidelines more closely from 2025 onwards.
The financial market regulator SFC, requires article-9-licenced institutions “asset management” to take climate-related risks into consideration in their investment and risk management processes and to make appropriate disclosures. Likewise, product specific disclosures are required for mutual funds that promote sustainability features.
The decree 155/2020/ND-CP (Securities Law), effective from January 2021, applies to companies listed on the Ho Chi Minh City Stock Exchange (HOSE) and Hanoi Stock Exchange (HNX). This decree aligns Vietnam’s ESG disclosure framework with international standards and encourages transparency to attract sustainable investment.
Companies are required to report on:
The Circular 96/2020/TT-BTC, complements the security law for listed corporations by providing further guidance on the preparation of sustainability reports for public companies. It highlights the importance of incorporating corporate governance and social responsibility aspects into annual reports, making ESG information accessible to stakeholders.
The Environmental Protection Law effective as of 2022, applies to all companies and places emphasis on environmental disclosures and requires businesses to conduct environmental impact assessments. Companies must report on pollution levels, resource usage, and compliance with environmental regulations.
The State Bank of Vietnam (SBV) has introduced the Sustainable Banking Guidelines encouraging commercial banks to integrate ESG criteria into their lending and risk management processes. Banks are urged to support green projects, such as renewable energy and sustainable infrastructure, while reducing exposure to high-carbon sectors. These guidelines are part of Vietnam’s broader efforts to align its banking sector with global standards, including the UN Principles for Responsible Banking.
The Ministry of Finance has established a Green Bond Framework, in line with the ASEAN Green Bond Standards (AGBS). These bonds are used to finance projects in renewable energy, waste management, and sustainable urban development. This framework is designed to attract both domestic and international capital for green infrastructure and other sustainable development initiatives.
As a member of ASEAN, Vietnam actively supports the ASEAN Taxonomy for Sustainable Finance and is working towards achieving net-zero emissions by 2050, following its pledge at the COP26 Summit.
The Association of Southeast Asian Nations (ASEAN) introduced the Taxonomy for Sustainable Finance, a voluntary framework that took effect in 2024. This taxonomy is being developed in phases, taking into account the region’s distinct environmental conditions while aligning with global standards. The taxonomy focuses initially on sectors with significant environmental impacts, such as agriculture, manufacturing, energy, transportation, and waste management
The ASEAN Taxonomy for Sustainable Finance serves as a comprehensive guide for sustainable finance activities across the ten ASEAN member states (AMS). It is designed to accommodate the region’s varied economic landscapes and development stages, with the goal of fostering sustainable growth and minimizing environmental impact.
The taxonomy consists of two main components: