ESRS G1: business conduct

What does ESRS G1 cover?

ESRS G1 covers the material impacts, risks and opportunities arising from how a company conducts its business: its corporate culture and the policies that shape it; prevention and detection of corruption and bribery, including training; protection of whistleblowers; political engagement and lobbying; and the management of relationships with suppliers, including payment practices. It sits alongside the governance disclosures in ESRS 2, which describe the board and management. See ESRS 2 general disclosures.

What does ESRS G1 require?

A company describes its policies on business conduct, including anti-corruption and bribery and the protection of whistleblowers, in line with the EU Whistleblower Directive; its actions, such as training for at-risk functions and how it prevents, detects and investigates allegations; any targets; and how it manages relationships with suppliers, including how it takes social and environmental criteria into account when selecting them and how it trains procurement teams. The general disclosure requirements in ESRS 2 apply to these policies, actions and targets. See impact materiality.

Which business conduct metrics are reported?

• Corruption and bribery: the number of convictions and the amount of fines and other sanctions for violating anti-corruption and anti-bribery laws.
• Political influence and lobbying: financial or in-kind political contributions, the main topics of lobbying, and registration in the EU Transparency Register or an equivalent.
• Payment practices: standard payment terms by main category of supplier, with separate terms for SMEs where they differ, the percentage of payments made in line with standard terms, and the number of outstanding legal proceedings for late payment.

ESRS G1 in practice: a manufacturer's payment practices

A manufacturer's standard terms are 30 days for SME suppliers and 60 days for large suppliers. It analyses the invoices it paid during 2027.

It reports its standard terms, that 85% of payments were made within them, and two outstanding legal proceedings for late payment. Most late payments to large suppliers arose from invoice disputes, which it explains, with an action to speed up dispute resolution. Because late payment to SMEs is material to its suppliers, it also reports its own metric, the 94% paid on time to SMEs. On corruption, it reports no convictions or fines; on lobbying, its registration in the EU Transparency Register, its main lobbying topics, and no political contributions, which its policy prohibits.

What changed in the revised ESRS G1?

The revised ESRS, adopted on 3 July 2026 and mandatory from financial years starting on or after 1 January 2027, move G1 to the policies, actions, targets and metrics structure with largely unchanged content. ESRS definitions of corruption and bribery take precedence over local ones, and sanctions are added to convictions and fines. The average time taken to pay suppliers is removed in favour of standard terms, the share of payments in line with them and legal proceedings, with a company-specific metric where late payment to SMEs is material. EFRAG's final draft also dropped separate datapoints on corporate culture. See the revised ESRS.

Which EU laws sit behind ESRS G1?

The Late Payment Directive limits payment terms between businesses to 60 days unless expressly agreed and not grossly unfair, and 30 days for public authorities; national laws often go further. The Whistleblower Directive requires companies with 50 or more workers to have internal reporting channels and protects reporters from retaliation. The EU Transparency Register records organisations that lobby EU institutions. G1 disclosures are where investors and suppliers see how a company applies these rules in practice.

How do GRI and the ISSB treat business conduct?

GRI covers it through GRI 205 Anti-corruption, GRI 206 Anti-competitive Behaviour and GRI 415 Public Policy, together with GRI 2 disclosures on compliance and mechanisms for raising concerns. The ISSB has no business conduct standard, but the SASB Standards include business ethics topics for industries where they are financially material. See GRI topic standards and ESRS S1 own workforce.

This guide is general information. It is not tax or legal advice for your situation.