Uzbekistan is introducing a formal framework for implementation of Environmental, Social and Governance (ESG) principles and sustainability reporting standards, marking a significant step in aligning corporate governance and disclosure practices with international standards.

The new framework forms part of the broader “Uzbekistan – 2030” strategy and the country’s transition toward a green and sustainable economy.

Introduction of ESG and sustainability reporting standards

 

The regulation approves:

• rules for implementation of International Financial Reporting Standards (IFRS)-based sustainability disclosure standards and ESG reporting principles;
• a transformation program for state-owned enterprises undergoing restructuring and transformation.

The framework establishes the legal basis for disclosure of sustainability and ESG-related information, aiming to provide investors and stakeholders with reliable, comparable and transparent non-financial data.

Scope of application

 

The rules apply primarily to:

• state-owned enterprises undergoing transformation (excluding banking and financial institutions);
• companies where the state owns more than 50% of charter capital or holds a controlling stake.

Other companies may apply the standards voluntarily.

Alignment with international ESG standards

 

The framework is closely aligned with leading international standards and methodologies, including:

• IFRS Sustainability Disclosure Standards (IFRS S1 and IFRS S2);
• ISSB standards developed by the International Sustainability Standards Board;
• elements of European Sustainability Reporting Standards (ESRS);
• sustainability assurance and governance practices used in international markets.

The rules also incorporate principles related to:

• climate-related disclosures;
• governance and risk management;
• transition planning;
• anti-greenwashing controls;
• double materiality assessment.

Phased implementation model

 

The reform introduces a phased implementation timeline for enterprises:

• preparation and transition measures begin from 2026;
• sustainability reporting systems are gradually introduced;
• beginning from 2028, businesses will progressively implement collection, analysis and publication of non-financial reporting data.

The submission of non-financial reports remains voluntary at the current stage for entities outside the mandatory scope.

Corporate governance and internal control requirements

 

The framework places significant emphasis on governance and compliance mechanisms, including:

• integration of ESG risks into corporate strategy and risk management systems;
• establishment of internal controls and monitoring procedures;
• responsibility of supervisory boards and executive bodies for ESG disclosures;
• mandatory assurance and verification procedures for certain disclosures.

Companies are also expected to introduce systems ensuring accuracy, consistency and traceability of sustainability-related information.

Focus on anti-greenwashing and transparency

 

A notable feature of the regulation is its focus on preventing greenwashing.

The framework requires ESG disclosures to be:

• evidence-based and verifiable;
• supported by documented methodologies;
• consistent across reporting periods;
• presented in a clear and balanced manner.

This reflects a move toward more disciplined and investor-oriented ESG reporting practices.

Implications

 

The introduction of ESG reporting standards signals:

• increasing convergence with international capital market expectations;
• stronger sustainability governance requirements for state-linked enterprises;
• growing importance of non-financial disclosures in Uzbekistan;
• broader integration of ESG principles into corporate transformation processes.

For businesses, particularly state-owned and large enterprises, the reform will likely require enhanced compliance systems, internal reporting structures and governance oversight.

The regulation enters into force on 1 July 2026.