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As sustainability regulation accelerates across global markets, many organisations are finding that commitment alone is no longer enough. While environmental, social and governance (ESG) disclosure frameworks are now broadly accepted, the pace, complexity and fragmentation of regulation are creating widening gaps between intent and execution.

In response, global law firm Herbert Smith Freehills Kramer (HSF Kramer) has launched a new digital tool designed to help organisations navigate this increasingly complex landscape. The ESG Regulatory Atlas (ERA) brings together legal expertise and digital delivery to help businesses identify, map and manage their ESG regulatory obligations across jurisdictions.

Developed jointly by the firm’s ESG and Digital Legal Delivery practices, ERA reflects a growing recognition that sustainability compliance is no longer a static, one-off exercise, but a continuously evolving operational challenge.

From regulatory overload to structured clarity

Over the past five years, ESG-related regulation has expanded at unprecedented speed. New and revised rules governing sustainability reporting, climate risk, supply chains, circular economy obligations and green claims are emerging across Europe, North America and Asia-Pacific. Many of these regimes overlap, diverge or evolve at different speeds, creating significant pressure on legal, sustainability and operations teams.

According to HSF Kramer, this regulatory overload is one of the biggest barriers organisations face when trying to deliver credible sustainability strategies.

“The foundations of sustainability disclosure may be broadly accepted, but the gap between acceptance and the ability to meet expectations is getting wider,” says Sarah Ries-Coward, Partner in HSF Kramer’s ESG practice. “It’s not for want of trying – the evolving landscape of global legal frameworks can be overwhelming, particularly as new rules emerge rapidly and vary widely across regions.”

ERA has been designed specifically to close this gap, translating complex legal requirements into a structured, business-relevant format that organisations can use to drive compliance and risk management.

Mapping ESG obligations by business relevance

At its core, the ESG Regulatory Atlas is an interactive, customisable online platform that helps organisations understand which ESG regulations apply to them, and why.

Rather than offering a generic overview of sustainability law, ERA begins with an analysis of an organisation’s core business activities, geographies and value chain. From there, it identifies the most relevant current and emerging ESG regulations, outlining:

• Applicable laws and regulatory regimes
• Duties and disclosure obligations
• Enforcement mechanisms and penalties for non-compliance
• Key risk areas across short-, medium- and long-term time horizons

The tool covers critical ESG domains including reporting and disclosure, climate risk, supply chain due diligence, circular economy requirements, and green claims and marketing. This breadth reflects the reality that sustainability regulation increasingly cuts across departments, requiring coordination between legal, finance, procurement, marketing and operations teams.

From compliance snapshot to ongoing governance

One of the distinguishing features of ERA is its emphasis on ongoing regulatory change, rather than static compliance assessments. A customisable tracker allows clients to receive updates on legislative and policy developments in selected jurisdictions, ensuring that regulatory mapping remains current as frameworks evolve.

Organisations can also use ERA to conduct applicability and compliance assessments, highlighting areas where they may be exposed to regulatory risk or where internal processes require strengthening. This enables teams to prioritise actions, allocate resources more effectively and embed ESG compliance into broader governance structures.

For many companies, this kind of visibility is increasingly essential. Regulatory scrutiny of sustainability claims is intensifying, with authorities and investors alike demanding evidence-based disclosures supported by robust internal controls.

Supporting transparency for investors and stakeholders

While regulation is a key driver, HSF Kramer emphasises that ESG compliance is no longer just about avoiding penalties. Investor expectations are playing an equally important role.

“Staying ahead of the game on sustainability-related matters isn’t just about meeting regulatory requirements,” says Ernst Müller, Director in HSF Kramer’s ESG practice. “Investors are increasingly demanding transparency to assess risk and long-term value, and stakeholders expect credible sustainability commitments backed up by data and regulatory alignment.”

Tools such as ERA can help organisations demonstrate that they are proactively managing ESG risks, rather than reacting defensively to regulatory pressure. This, in turn, supports stronger investor confidence, reduces reputational exposure and enables more informed strategic decision-making.

To complement the digital platform, clients also have access to a dedicated hotline for on-demand legal support, covering ESG disclosures, audits and stakeholder queries. This integration of technology and advisory services reflects a broader shift within the legal sector toward more agile, scalable compliance solutions.

Part of a broader ESG legal toolkit

The launch of the ESG Regulatory Atlas builds on HSF Kramer’s expanding suite of ESG-focused digital tools. It follows the introduction of the firm’s ESG Tracker and CSRD Mapper in 2024, both of which were developed to help clients respond to the European Union’s Corporate Sustainability Reporting Directive and related disclosure obligations.

Together, these tools signal a strategic investment in digital ESG infrastructure, recognising that sustainability compliance is becoming a core operational capability rather than a peripheral reporting function.

As global sustainability regulation continues to expand, organisations that can systematically map obligations, track change and embed compliance into day-to-day decision-making are likely to be better positioned to manage risk and unlock long-term value.

In that context, ERA represents more than a regulatory reference tool. It reflects the growing convergence of law, data and sustainability strategy – and the need for businesses to move from fragmented compliance efforts to integrated, forward-looking ESG governance.