ESG Reporting (Environmental, Social, and Governance) represents a new standard of corporate transparency and responsibility in Georgia. Following recent legislative changes, ESG reporting has evolved from a voluntary initiative into a legal obligation for certain categories of enterprises. This service involves collecting, analyzing, and publicly reporting information on a company's non-financial performance metrics—environmental impact, employee rights, corporate ethics, and governance structure. ESG reporting is crucial not only for legal compliance but also for building investor trust, managing reputational risks, and accessing international markets.
Corporate and environmental law experts featured on Legal.ge offer full legal support in the ESG reporting process. Our specialists' services include:
- Preparation of Management Reports: Legal drafting of the legally mandatory Management Report, which includes non-financial information on environmental and social issues.
- ESG audit and data verification: Checking internal company processes and legally verifying the accuracy of ESG data for presentation to third parties.
- Development of policies and procedures: Creating internal corporate acts (code of ethics, environmental policy, occupational safety standards) that meet ESG criteria.
- Assessment of compliance with international standards: Ensuring reporting compliance with international frameworks such as GRI (Global Reporting Initiative), SASB, and EU directives (CSRD), which is relevant for exporting companies.
- Legal support for investor relations: Developing a legal strategy to improve ESG ratings and preparing responses to investor inquiries.
ESG reporting services are particularly relevant in the following situations:
- When a company is a First Category Enterprise or a Public Interest Entity (PIE) and is required by the Law on Accounting, Reporting and Auditing to submit a Management Report to SARAS.
- The company plans an Initial Public Offering (IPO) or seeks loans from international financial institutions (IFC, EBRD), where ESG compliance is a mandatory prerequisite.
- When a business participates in state tenders or large international procurements where sustainability criteria give preference to the supplier.
- If a company wishes to improve its brand reputation and become attractive to "Millennial" and "Gen Z" talent who prioritize an employer's social responsibility.
The main legal basis for ESG reporting in Georgia is the Law of Georgia on Accounting, Reporting and Auditing. According to this law, enterprises of a certain size are obliged to prepare a Management Report, which must contain information on environmental protection, employee issues, social responsibility, human rights, and anti-corruption measures. Additionally, the banking sector is subject to the Corporate Governance Code for Commercial Banks approved by the National Bank of Georgia, which envisages the integration of ESG principles into bank management. The labor and social parts are regulated by the Labor Code of Georgia and the Law on Occupational Safety, while the environmental part falls under the Environmental Assessment Code.
The process of working with a Legal.ge specialist begins with determining the company's size and category to establish specific legal obligations. The lawyer and consultant then conduct a "Materiality Assessment" to identify the most significant ESG issues for the company. Following this, data collection takes place, policy documents are updated, and the final report text is drafted, meeting both legislative requirements and international standards. The process often concludes with the submission of the report to the Service for Accounting, Reporting and Auditing Supervision (SARAS) and its publication.
Find qualified ESG reporting specialists on Legal.ge to ensure your business's transparency and compliance with the law. Our platform gives you access to lawyers who understand the challenges of modern corporate governance. Legal.ge helps you turn mandatory reporting into a strategic advantage for your company and attract responsible investments.
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