ESG Global Vision

Environment, corporate governance

Varies between participating states 

CORSIA applies to airline operators who fulfil the following criteria:

• their annual CO2 emissions from international flights using aeroplanes with a take-off mass greater than 5,700kg exceed 10,000 tonnes (all major carriers meet this relatively low threshold);
• they are responsible for international flights (flights by state aircraft and humanitarian, medical, and firefighting flights, as well as flights before or after such flights which are carried out by the same aeroplane and are needed for these activities, are not included); and
• they are registered in one of the participating states (see the list as of 1 January 2026 here; notable omissions include India and China).

In 2010, the International Civil Aviation Organisation (ICAO), a United Nations Agency that sets global standards and regulations for international civil aviation, adopted a sectoral aspirational goal for carbon neutral growth from 2020 onwards. Whilst operational and technological improvements are seen as a key part of achieving this goal, the ICAO took the view that a market based scheme was required to fill the remaining emissions gap and to achieve carbon neutral growth. Accordingly, the International Standards and Recommended Practices for the implementation of CORSIA were adopted as an Annex to the Chicago Convention in 2016, to apply to all of ICAO’s 193 member states from 1 January 2019.

CORSIA is being implemented in three phases:

• The Pilot Phase (2021-2023) and the First Phase (2024-2026). During these phases participation by ICAO member states was voluntary. 126 member states participated, with flights between participating states subject to reporting and offsetting requirements.
• The Second Phase (2027-2035). During this phase, with some exemptions, such as for Least Developed Countries and Small Island Developing States, participation will become mandatory for all ICAO member states and all international flights will be subject to offsetting requirements. The Second Phase will be split into three-year compliance periods.

In scope airline operators are under the following obligations:

• To monitor and report emissions from international flights on an annual basis.
  • At the beginning of each 3-year compliance period, an operator is required to submit an Emissions Monitoring Plan to its administering state which, once approved, the operator will use for the entire compliance period.
  • Under the plan, the operator is required to monitor and record its fuel use for international flights over the course of each calendar year. The operator must then estimate their annual CO2 emissions and report them to the national authority of their administering state by 30 April the following year. To guarantee the accuracy of the data reported, operators will need their annual emissions report to be verified by an impartial third-party verification body prior to submission.
  • Aggregated emissions are required to be reported by each administering state to ICAO, which will publish the total emissions from individual operators.
• To offset their emissions.
  • Under the scheme, the administering state calculates the annual offsetting requirements for each operator by multiplying the operator’s CO2 emissions by a ‘Growth Factor’, which is calculated by the ICAO and represents the percentage growth of the aviation sector’s international CO2 emissions covered by CORSIA’s offsetting requirements in a given year compared to the sector’s baseline emissions (being 85% of 2019 emissions levels).
  • Upon completion of each 3-year compliance period, the operator will have to show they have met their offsetting requirements by purchasing and cancelling the appropriate number of certified CORSIA Eligible Emissions Units (“CEEUs”) (each representing a tonne of CO2). The price of these units varies considerably depending on the type of project ($0.50 to $45/tCO2e during 2020-2021 with a weighted average of $3.08/tCO2eq in 2021).
  • Operators can also reduce their offsetting requirements by using CORSIA Eligible Fuels (“CEFs”) that meet the CORSIA sustainability criteria, which includes fuels with at least 10% lower CO2e emissions on a life-cycle basis compared to a reference fossil fuel value of 89.1 gCO2e/MJ. It is worth noting that as the baseline for calculating emissions reduction targets is 85% of 2019 emissions levels, offsetting requirements will only cover the growth in emissions since 2019 and therefore it is anticipated that the percentage of their total emissions that operators will have to offset will remain modest for the first few years of implementation of the scheme.

For more information, please follow the link here.

Penalties and enforcement:

National aviation authorities of participating states determine the sanctions for non-compliance, so these vary between countries. In the UK, for example, typical civil penalties can include a £20,000 penalty with a further daily penalty of £500 for failing to: (i) apply or revise an emissions monitoring plan; (ii) monitor emissions properly; or (iii) submit emissions reports. In recent consultations, the UK government has indicated that the penalties for failing to cancel CEEUs on time in line with an airline’s offsetting requirements would be £100 for each uncancelled unit.

Law

In force

Entities regulated and supervised by the General Superintendency of Financial Entities, the General Superintendence of Securities, the Superintendency of Pensions and the General Superintendence of Insurance.

The obligations of this law are also applicable to all the entities or companies that are part of the financial groups supervised by the superindendencies mentioned above.

Those who carry out any of the activities listed in Sections 15 and 15 bis will also be covered by this law

Aspects related to money laundering are reformed, as well as the criminalization and expansion of this crime in Costa Rica beyond drug trafficking to include other serious crimes; likewise, financial activities are regulated and sanctioned, in order to prevent money laundering and actions that may serve to finance terrorist activities.

Law

In force

Entities regulated and supervised by the General Superintendency of Financial Entities, the General Superintendence of Securities, the Superintendency of Pensions and the General Superintendence of Insurance.

The obligations of this law are also applicable to all the entities or companies that are part of the financial groups supervised by the superindendencies mentioned above.

Those who carry out any of the activities listed in Sections 15 and 15 bis will also be covered by this law.

Aspects related to money laundering are reformed, as well as the criminalization and expansion of this crime in Costa Rica beyond drug trafficking to include other serious crimes; likewise, financial activities are regulated and sanctioned, in order to prevent money laundering and actions that may serve to finance terrorist activities.

Law

In force

Entities or subjects bound by the provisions established in Law No. 8204 are considered to be those that are regulated, supervised and audited by the General Superintendence of Financial Entities, the General Superintendency of Securities, the Superintendence of Pensions and the General Superintendence of Insurance, including individuals or legal entities that carry out any of the activities described in Article 15 of Law No. 8204, whose supervision is solely in matters of money laundering and financing of terrorism.

The natural or legal persons established in articles 15 and 15 bis of Law No. 8204, will be governed by the specific regulations issued by the CONASSIF and the FIU, respectively.

The purpose of this Regulation is to regulate the prevention, supply, prescription, administration, handling, use, possession, trafficking, preparation, production, distribution and marketing of narcotic drugs, psychotropic substances, precursors, essential chemicals, inhalable substances and other drugs and pharmaceuticals capable of producing physical or mental dependence included in the different international instruments that regulate this matter, without prejudice to the provisions on this matter in the General Health Law.

It also regulates financial activities and professions, as well as non-financial ones, in order to prevent money laundering from serious crimes, actions that may serve to finance terrorist activities or organizations, and organized crime.

It also includes the administration, disposition and any form of disposal of seized and forfeited assets, arising from serious crimes, money laundering, financing of terrorism and organized crime, except for seized and forfeited assets for sexual crimes against minors.

Law

In force

Entities regulated and supervised by the General Superintendency of Financial Entities, the General Superintendence of Securities, the Superintendency of Pensions and the General Superintendence of Insurance.

The obligations of this law are also applicable to all the entities or companies that are part of the financial groups supervised by the superindendencies mentioned above.

Those who carry out any of the activities listed in Sections 15 and 15 bis will also be covered by this law.

The purpose of this Regulation is to define the responsibilities and obligations, based on risk, according to the type of regulated entity, for the prevention of the risk of Money Laundering, Financing of Terrorism and Financing of the Proliferation of Weapons of Mass Destruction (LC/ TF/FPADM), or any other illicit activity determined by Law 7786 and its amendments.

Law

In force

Applies to subjects supervised by the General Superintendency of Financial Entities (SUGEF), the Superintendence of Pensions (SUPEN), the General Superintendence of Securities (SUGEVAL) and the General Superintendence of Insurance (SUGESE); as well as the natural or legal persons that carry out the activities described in article 15 of Law 8204.

The purpose of this regulation is to establish the minimum requirements to prevent the operations of concealment and mobilization of capital of dubious origin and other transactions, aimed at legitimizing capital or financing terrorist activities or organizations.

Government-led standard.

In force.

(September, 2022).

All legal entities.

This regulation aims to grant governmental recognition to those private companies or public institutions that develop and implement a management and commitment to continuous improvement in their responsible business conduct in the labour field, for the promotion, protection, inclusion and equal rights of workers, within the framework of the Sustainable Development Goals.

The SIRESOL regulations are intended to integrate existing recognitions of good labour practices granted by national public institutions in labour, social and human rights matters, and to work towards the development of further good practice.

By means of the recognition obtained within this labor standards system, companies will be able to:

• Prove their accreditation in the sustainable public procurement processes and compliance with the current regulations on public procurement.
• Be part of the register of organisations certified by SIRESOL, implying that the entity is a company or institution that stands out for its responsible business conduct. Companies accredited by SIRESOL will not need to take further steps to join the register.
• Benefit from promotion of their activities and products by the Ministry of Labour, and other governmental departments, in recognition of their contribution to good labour practices. 

Environment, corporate governance

Varies between participating states 

CORSIA applies to airline operators who fulfil the following criteria:

• their annual CO2 emissions from international flights using aeroplanes with a take-off mass greater than 5,700kg exceed 10,000 tonnes (all major carriers meet this relatively low threshold);
• they are responsible for international flights (flights by state aircraft and humanitarian, medical, and firefighting flights, as well as flights before or after such flights which are carried out by the same aeroplane and are needed for these activities, are not included); and
• they are registered in one of the participating states (see the list as of 1 January 2026 here; notable omissions include India and China).

In 2010, the International Civil Aviation Organisation (ICAO), a United Nations Agency that sets global standards and regulations for international civil aviation, adopted a sectoral aspirational goal for carbon neutral growth from 2020 onwards. Whilst operational and technological improvements are seen as a key part of achieving this goal, the ICAO took the view that a market based scheme was required to fill the remaining emissions gap and to achieve carbon neutral growth. Accordingly, the International Standards and Recommended Practices for the implementation of CORSIA were adopted as an Annex to the Chicago Convention in 2016, to apply to all of ICAO’s 193 member states from 1 January 2019.

CORSIA is being implemented in three phases:

• The Pilot Phase (2021-2023) and the First Phase (2024-2026). During these phases participation by ICAO member states was voluntary. 126 member states participated, with flights between participating states subject to reporting and offsetting requirements.
• The Second Phase (2027-2035). During this phase, with some exemptions, such as for Least Developed Countries and Small Island Developing States, participation will become mandatory for all ICAO member states and all international flights will be subject to offsetting requirements. The Second Phase will be split into three-year compliance periods.

In scope airline operators are under the following obligations:

• To monitor and report emissions from international flights on an annual basis.
  • At the beginning of each 3-year compliance period, an operator is required to submit an Emissions Monitoring Plan to its administering state which, once approved, the operator will use for the entire compliance period.
  • Under the plan, the operator is required to monitor and record its fuel use for international flights over the course of each calendar year. The operator must then estimate their annual CO2 emissions and report them to the national authority of their administering state by 30 April the following year. To guarantee the accuracy of the data reported, operators will need their annual emissions report to be verified by an impartial third-party verification body prior to submission.
  • Aggregated emissions are required to be reported by each administering state to ICAO, which will publish the total emissions from individual operators.
• To offset their emissions.
  • Under the scheme, the administering state calculates the annual offsetting requirements for each operator by multiplying the operator’s CO2 emissions by a ‘Growth Factor’, which is calculated by the ICAO and represents the percentage growth of the aviation sector’s international CO2 emissions covered by CORSIA’s offsetting requirements in a given year compared to the sector’s baseline emissions (being 85% of 2019 emissions levels).
  • Upon completion of each 3-year compliance period, the operator will have to show they have met their offsetting requirements by purchasing and cancelling the appropriate number of certified CORSIA Eligible Emissions Units (“CEEUs”) (each representing a tonne of CO2). The price of these units varies considerably depending on the type of project ($0.50 to $45/tCO2e during 2020-2021 with a weighted average of $3.08/tCO2eq in 2021).
  • Operators can also reduce their offsetting requirements by using CORSIA Eligible Fuels (“CEFs”) that meet the CORSIA sustainability criteria, which includes fuels with at least 10% lower CO2e emissions on a life-cycle basis compared to a reference fossil fuel value of 89.1 gCO2e/MJ. It is worth noting that as the baseline for calculating emissions reduction targets is 85% of 2019 emissions levels, offsetting requirements will only cover the growth in emissions since 2019 and therefore it is anticipated that the percentage of their total emissions that operators will have to offset will remain modest for the first few years of implementation of the scheme.

For more information, please follow the link here.

Penalties and enforcement:

National aviation authorities of participating states determine the sanctions for non-compliance, so these vary between countries. In the UK, for example, typical civil penalties can include a £20,000 penalty with a further daily penalty of £500 for failing to: (i) apply or revise an emissions monitoring plan; (ii) monitor emissions properly; or (iii) submit emissions reports. In recent consultations, the UK government has indicated that the penalties for failing to cancel CEEUs on time in line with an airline’s offsetting requirements would be £100 for each uncancelled unit.

Law

In force

Every end user, distributed generator, individual or legal entity that owns or operates Distributed Energy Resources (DER), distribution companies and other participants of the National Electric System (SEN), the Ministry of Environment and Energy, the Public Services Regulatory Authority and operators of the system.

Pursuant to Section 2 of this law, the following terms have the following definitions:

Distributor generator: individual or legal entity that owns and operates a distributed generation system for self-consumption on a small scale from renewable energy sources in the mode of operation with delivery of surpluses to the network, operation without delivery of surpluses to the network and island operation.

Distributed Energy Resources (DER): generation and storage technologies directly connected to the distribution network that are capable of exporting active electrical power.

National Electric System (SEN): power system composed of the following interconnected elements: generation plants, transmission network, distribution networks, storage systems and user electrical loads.

The purpose of this law is to establish the necessary conditions to promote and regulate, under a special regime of efficient, safe and sustainable integration, the activities related to the access, installation, connection, interaction and control of distributed energy resources based on renewable energy sources.

Law

In force

Individuals and legal entities interested in the exploration and exploitation of oil and other hydrocarbon substances.

This Law establishes that State has the absolute, inalienable and imprescriptible dominion over all of the sources and deposits of petroleum and of any other hydrocarbon substances existing in the national territory. The State exercises complete and exclusive sovereignty or special jurisdiction over them, pursuant to Article 6 of the jurisdiction, in accordance with Article 6 of the Political Constitution.

law

In force

Any party interested in exercising economic activities.

The purpose of these regulations is to define the general requirements and procedures by which the environmental viability (license) and environmental registrations (permit) of new activities, works or projects, which by law or regulation, have been determined that they may alter or destroy elements of the environment or generate waste, toxic or hazardous materials; as well as, the prevention, mitigation and compensation measures, which depending on their impact on the environment, must be implemented by the developer.

Law

In force

Private companies or cooperatives that can be integrated into the national electricity system.

• For the purposes of this Law, autonomous or parallel generation is defined as the energy produced by power plants of limited capacity, belonging to private or cooperative companies that may be integrated within the national electric system.
• About 21% of Costa Rica's total electricity generation comes from this law.

Environmental Policy.

Will enter in force on August, 2023.

(April, 2023)

All legal entities/companies that are habitually engaged in offering, distributing, selling, leasing, renting, granting the use or enjoyment of goods or rendering services.

This law increases the sanctions arising from infringement of Law No. 7472:  Law for the Promotion of Competition and Effective Consumer Defense on ESG matters, where that infringement results in damage to health, safety, or the environment, while also having an adverse effect on consumers. 

Environmental policy.

In force.

(June, 2022)

Legal entities involved in foreign trade operations.

This law allows the government to fine entities involved in the transportation of goods dangerous to human, animal or plant health, or the environment, without complying with the security measures set out in the relevant legislation.

Environmental policy.

In force.

(October, 2021)

Legal entities dedicated to the production of goods that generate “priority waste.”

This law mandates that producers of certain categories of waste products, including lubricating oils, electrical and electronic devices, batteries and tires (“priority products”), provide collection services for these products, free of charge, without this collection being made conditional on the sale of a new product.

Government-led standard.

In force.

(December, 2022)

Legal entities whose new activities, works or projects, by their nature, require an Environmental Impact Assessment before SETENA.

This decree regulates the general requirements and procedures for determining the Environmental Viability (License) (VLA) of activities, works or projects (AOP), which by law or regulation, have been determined to alter or destroy elements of the environment or generate waste and toxic or hazardous materials.

This decree also provides for sanction and compensation measures in relation to the damaging activities, and provides for their application. 

Law

In force

Legal entities from both public and private sectors.

The purpose of this Law is to prevent, prohibit and punish sexual harassment as a discriminatory practice based on sex, against the dignity of women and men in the workplace and education, in the public sector and the private sector.

Law

In force

Individuals and legal entities from both the public and private sectors.

The purposes of this law is to:

1. Promote public policies for the comprehensive fight against human trafficking.
2. Promote the necessary regulations to strengthen the punishment of human trafficking and its related activities.
3. Define a specific and complementary framework for the protection and assistance of victims of human trafficking and their dependents.
4. Promote and facilitate national and international cooperation on the issue of human trafficking.

Law

In force

Individuals and legal entities from both the public and private sectors.

The objectives of this law are to:

1. Serve as an instrument for people with disabilities to achieve their maximum development, their full social participation, as well as the exercise of the rights and duties established in our legal system.
2. Guarantee equal opportunities for the Costa Rican population in areas such as: health, education, work, family life, recreation, sports, culture and all other established areas.
3. Eliminate any type of discrimination against people with disabilities.
4. Establish the legal and material bases that allow Costa Rican society to adopt the necessary measures to equalize opportunities and non-discrimination of persons with disabilities.

Law

In force

Legal entities from both public and private sectors.

The purpose of this law is education, health promotion, prevention, diagnosis, epidemiological surveillance and care and research on the human immunodeficiency virus or HIV and acquired immunodeficiency syndrome or AIDS. In addition, it deals with the rights and duties of HIV carriers, AIDS patients and other inhabitants of the Republic.

Law

In force

Employers and workers in the public and private sectors.

Inclusion of the eighth title in relation to the prohibition of discrimination; all possible aspects are regulated to determine or not, when discrimination occurs in the workplace.

Law

In force

Employers

• This Law aims to encourage the hiring of people over 45 years of age, through a temporary fiscal incentive in income tax and in the employer's quota for the Social Development and Family Allowances Fund (FODESAF).
• These benefits will only be applicable to those companies whose workforce is made up of at least 10% of people 45 years of age or older. Additionally, it is established that the benefits will have a duration of 4 years, however, it is mentioned in the document that this period can be extended.

Law

In force

Rural electrification cooperative associations, consortiums formed by them and municipal public service companies.

This law regulates the concession for the use of the forces that may be obtained from the waters of public domain of the national territory, under the protection of the provisions of the Political Constitution, to rural electrification cooperative associations, to consortiums formed by them and to municipal public utility companies. Likewise, it regulates the generation, distribution and commercialization of electric energy by the subjects indicated in the previous paragraph, using renewable and non-renewable energy resources in the national territory.

Social policy

In force.

(May, 2022)

Legal entities and workers in the private sector.

This law includes reforms to the Costa Rican Labour Code and introduces the following provisions:

Prohibits employers from requiring a pregnancy test before hiring a worker, or before confirming the end of a probation period.

Establishes that once the maternity leave period has elapsed, the employer must provide paid leave to attend medical services, both for the newborn child and for the mother or the person in charge, as well as to pick up breastfeeding certificates at health centers.

In addition to opting for reinstatement, female workers who are fired while pregnant or breastfeeding may also terminate their employment contract with employer's liability, as amended by this law.

Introduces special leave for individual adoption cases, biological fathers (paternity leave), and paternity leave in circumstances of maternal death in childbirth or during maternity leave.

Guarantees job stability during pregnancy and breastfeeding, so that when a woman returns to work, she will not be placed in another position or demoted (this can only happen in exceptional cases, duly justified, in a position equivalent in remuneration and requiring the same aptitudes, capacity and competence).

Law

In force

Any company or individualinterested in exercising economic activities.

• The purpose of this regulation is to establish the requirements and procedures that must be met by establishments that develop industrial, commercial, and service activities, contemplated in Annex No.1 of this regulation, in order to obtain the Sanitary Operating Permit from the Ministry of Health. Likewise, the requirements of those temporary activities that by provision of Law No. 5395 of October 30, 1973 "General Health Law", require a sanitary authorization to operate in the national territory are established.
• The operations or activities of the Health Services and related parties are excluded from this regulation.

Law

In force

Government entities, political parties, public and private educational entities, public and private sector employers.

The powers and institutions of the State are obliged to ensure that women do not suffer any discrimination based on their gender and that they enjoy the same rights as men, regardless of their marital status, in all political, economic, social and cultural spheres, in accordance with the "Convention on the elimination of all forms of discrimination against women", of the United Nations, ratified by Costa Rica in Law No. 6968 of October 2, 1984.

Law

In force

Any Private or Public entity interested in exercising economic activities.

• Articles 14, 15 and 16 are added to Chapter III of Law No. 7142, Law for the Promotion of Social Equality for Women, of March 8, 1990; consequently, the subsequent numbering changed. The text is as follows:
• Article 14- Women shall have the right to equal pay with men, both in the private sector and in the public sector, for work of equal value under the same employer, whether it is the same position or different positions. of equal value, or in similar or reasonably equivalent functions.
• Differences in remuneration that are based on duly demonstrated and justified objective criteria, for reasons of skills, qualifications, suitability, responsibility, productivity or seniority, among others, will not be considered arbitrary.
• In no case will the differences that imply a lower remuneration for women for the sole fact of being women, due to the condition of maternity or that lack an objective and reasonable justification, be valid.

Law

In force

Any company that provides Public Services.

This law regulates the entire system of tariffs and concessions for electricity and other public utilities.

Law

In force

Individuals or legal entities interested in using the hydraulic power of public domain waters in the national territory to generate hydroelectric power.

Regulates the granting of Hydraulic Power (Water) Concessions to generate electricity.

Non-financial reporting

In force.

(October, 2021)

Legal entities authorized by the General Superintendence of Securities (SUGEVAL) whose profitable activity generates environmental and/or social benefits.

This law is the first to legally recognise ESG benefits in Costa Rica. It creates a public offering securities market to promote financing and investment through the investment of public offering securities in eligible activities, works and projects aimed at achieving Costa Rica’s Sustainable Development Goals.

An "eligible activity, work or project" is considered to be one that generates environmental or social benefits, or both, which have a verification report issued by an independent third party expert, under national and international standards officially recognised by the National Council of Supervision of the Financial System (Conassif).

Non-financial reporting

In force.

(July, 2022)

Legal entities authorized by the General Superintendence of Securities (SUGEVAL) whose profitable activity generates environmental and/or social benefits.

This regulation aims to implement national and international standards in relation to external verifiers and verification reports for public offerings in the ESG space. This recognition signifies an attempt from the General Superintendence of Securities of Costa Rica to identify ESG metrics to apply to offerings in the securities market. 

Social policy

In force.

(May, 2022)

Legal entities and workers in the private sector.

This law includes reforms to the Costa Rican Labour Code and introduces the following provisions:

Prohibits employers from requiring a pregnancy test before hiring a worker, or before confirming the end of a probation period.

Establishes that once the maternity leave period has elapsed, the employer must provide paid leave to attend medical services, both for the newborn child and for the mother or the person in charge, as well as to pick up breastfeeding certificates at health centers.

In addition to opting for reinstatement, female workers who are fired while pregnant or breastfeeding may also terminate their employment contract with employer's liability, as amended by this law.

Introduces special leave for individual adoption cases, biological fathers (paternity leave), and paternity leave in circumstances of maternal death in childbirth or during maternity leave.

Guarantees job stability during pregnancy and breastfeeding, so that when a woman returns to work, she will not be placed in another position or demoted (this can only happen in exceptional cases, duly justified, in a position equivalent in remuneration and requiring the same aptitudes, capacity and competence).