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

Securities Valuation offices; General Deposit Warehouses; Cooperative Banks, Savings and Credit Societies and Federations regulated by the Law of Cooperative Banks and Savings and Credit Societies, Exchanges of Products and Services; Stock Exchanges; Houses of Stockbrokers; Investment Fund Management; Pension Fund Management Institutions; Risk Classification Societies; Insurance Companies incorporated in the country and Cooperative Insurance Associations incorporated in the country; Companies Specialized in the Deposit and Custody of Securities; Electronic Money Provider Companies; Branches of Foreign Banks established in the country, as pertinent; Branches of Foreign Insurance Companies established in the country; and Securitization companies.

This Law’s purpose is to establish the regulations related to the corporate governance bodies of the entities subject to their application; as well as the policies and procedures that must be issued, in order to ensure the adoption of good corporate governance practices and the adoption of an adequate framework of transparency and protection of the interests of the shareholders, clients of the entity, in accordance with the applicable laws and best international practices in the matter, in accordance with the nature and scale of its activities.

Law

In force

National or foreign entities or companies engaged in remittance services, all legal national or foreign entities or companies engaged in any monetary transaction in the country.

This Law establishes that national or foreign entities or companies engaged in remittance services as well as all legal national or foreign entities or companies engaged in any monetary transaction in the country are required to register within the FIU, for the prevention, detection and control of money and asset laundering, financing of terrorism and financing of the proliferation of weapons of mass destruction. Also, all entities or legal companies, national or foreign, that are involved in transactions of up to US $ 10,000.00 in cash or $ 25,000 in other means, must report to the competent authorities.

Law

In force

All legal national or foreign entities or companies engaged in any monetary transaction in the country.

The objective of this Law is to prevent, detect, punish, and eradicate the crime of money and asset laundering, as well as its concealment.

Law

In force

Stock exchanges; Exchanges of products and services; Stock brokerage houses; Companies specialized in the deposit and custody of securities; Risk rating companies; Agents specialized in securities valuation; General deposit warehouses; Securitization companies; and Investment fund managers.

This Law establishes the regulations related to the corporate governance bodies of the entities that belong to both the securities market and the products and services market; as well as the policies and procedures that must be issued, in order to ensure the adoption of good corporate governance practices and the adoption of an adequate framework of transparency and protection of the interests of the entity's shareholders and clients.

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

It applies to any of the followingactivities:production, commercialization, distribution, import, export, and use of: pesticides, fertilizers, herbicides, amendments or improvers, defoliants and other chemical and chemical-biological products for agricultural use; governmental or private, whether for commercial, industrial, educational, experimental or research purposes.

The purpose of the law is to regulate the production, commercialization, distribution, import, export, and use of: pesticides, fertilizers, herbicides, amendments or improvers, defoliants and other chemical and chemical-biological products for agricultural use, livestock or veterinary and their raw materials.

law

In force

It applies to natural and legal persons, public, private, mixed economy and government institutions and generators of all kinds of waste in the national territory, including consumers.

This law aims to achieve the reduction of waste generation prioritizing prevention, the promotion of reuse, repair, recycling and other types of recovery, making the population aware of the preference of products that generate usable waste.

Law

In force

All workplaces, whether private or state

This Law establishes the occupational safety and health requirements that must be applied in the workplace, in order to establish the basic framework of guarantees and responsibilities that adequate level of protection of the safety and health of workers, against the risks derived from work according to their psychological and physiological aptitudes for work.

Law

In force

The public and private company and the entities responsible for authorizing urbanization plans and projects.

This Law establishes the regime of equality of opportunities for people with physical, mental, psychological and sensory disabilities, whether congenital or acquired.

Law

In force

All individuals and entities

This Law has the purpose of prohibiting metallic mining in the soil and subsoil of the territory of the Republic. The prohibition of metal mining includes the activities of: exploration, extraction, exploitation and processing, whether open pit or underground. The prohibition also applies to the use of toxic chemicals, such as cyanide, mercury and others, in any metallic mining.

Law

In force

It applies to the owners who have an environmental permit and a wastewater treatment plant. As well as to any activity, work or project that performs wastewater management, it also applies  to the management of residual sludge regardless of origin or destination, located in the national territory.

Establishes the permissible limits for the quality parameters of residual waters and their sludge, as well as the technical mechanisms and procedures for their management.