Policy, Legislation and Regulatory Frameworks


Policy, legislation and regulatory frameworks define what organisations must do, should do and could do in relation to CR&S. Understanding the difference between mandatory and voluntary requirements is one of the most critical capabilities a CR&S practitioner can develop.

Technique Overview

Policy, Legislation and Regulatory Frameworks

Policy, Legislation and Regulatory Frameworks Definition

In a CR&S context, policy refers to an organisation's internal commitments and stated positions on social, environmental and ethical issues. Legislation refers to the laws enacted by governments that create binding legal obligations with penalties for noncompliance. Regulatory frameworks are systems created by regulatory bodies to govern specific sectors or activities, often combining mandatory requirements with voluntary standards. Best practice refers to approaches that are not legally required but are widely recognised as the standard expected of responsible organisations in a given sector.

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Implementation, success factors and measures of Policy, Legislation and Regulatory Frameworks *

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Further Reading

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Policy, Legislation and Regulatory Frameworks references (4 of up to 20) *

  • Department for Business and Trade (2023) Sustainability Disclosure Requirements: assets.publishing.service.gov.uk/media/66505ba9adfc6a4843fe04e5/Sustainability_Disclosure_Requirements__SDR__Implementation_Update_2024.pdf
  • Environment Act 2021 www.legislation.gov.uk/ukpga/2021/30/contents
  • European Parliament and Council of the European Union (2024) Directive (EU) 2024/1760 on Corporate Sustainability Due Diligence (CSDDD). commission.europa.eu/topics/business-and-industry/doing-business-eu/sustainability-due-diligence-responsible-business/corporate-sustainability-due-diligence_en
  • Financial Conduct Authority (2024) - Sustainability Disclosure Requirements www.fca.org.uk/firms/climate-change-and-sustainable-finance/sustainability-disclosure-requirements-sdr-regime

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