1. Overview of ESG in Cambodia

Environmental, Social and Governance (ESG) in Cambodia has evolved from fragmented compliance requirements into an emerging governance framework influenced by environmental protection laws, labor regulations, corporate governance rules, and capital‑market disclosure obligations. Unlike jurisdictions with a single ESG code, Cambodia’s ESG regime is sector‑driven and regulations‑based, with mandatory requirements focusing primarily on environmental and social risk management, and governance obligations applying mainly to financial institutions and listed companies. 

Historically, ESG implementation in Cambodia has been driven by:

• Environmental Impact Assessment (EIA/ESIA) laws for development projects

• Labor and occupational safety regulations for social safeguards

• Corporate governance rules and disclosure obligations for listed and regulated financial entities. 

Since 2024–2025, Cambodia has entered a new phase of ESG regulation with:

• Adoption of a Prakas on ESG Disclosure for listed companies

• Implementation of updated EIA project classifications

• Stronger enforcement actions by the Ministry of Environment (MoE).

​​2. Legal and Institutional Framework for ESG in Cambodia

Cambodia does not have a unified “ESG Law”. Instead, ESG obligations are derived from multiple laws and regulatory instruments, enforced by several government institutions.

Key Legal Instruments

Environmental Pillar

• Law on Environmental Protection and Natural Resource Management (1996)

• Sub Decree No. 72 អនក្រ.បក on Environmental Impact Assessment Process (1999)

• Prakas on Initial and Full ESIA Guidelines (2009, amended)

• Prakas No. 3591.0525ប្រក ប.ស្ថ/វហប on Classification of Development Projects for EIA (2025)

Social Pillar

• Cambodian Labor Law (1997)

• Occupational Safety and Health (OSH) regulations and prakas

• National Social Security Fund (NSSF) obligations

Governance Pillar

• Law on the Issuance and Trading of Non‑Government Securities

• Prakas on ESG Disclosure for Listed Entities (effective 10 May 2026)

• Rules issued by the Securities and Exchange Regulator of Cambodia (SERC) 

Key Institutions

Institution

• Ministry of Environment (MoE)

• Ministry of Labour and Vocational Training (MLVT)

• Securities and Exchange Regulator of Cambodia

• Council for the Development of Cambodia

 ESG Role

• EIA approval, monitoring, enforcement

• Labor rights, OSH enforcement

• ESG disclosure oversight

• Investment approvals with ESG conditions

​3. Legal Requirements for ESG in Cambodia

Environmental Requirements (Mandatory)

• Initial Environmental Impact Assessment (IEIA) or Full ESIA is mandatory for all public and private development projects listed in the annex of Sub‑Decree No. 72

• Approval by MoE is required before project licensing

• Environmental Management Plans (EMPs) must be implemented and monitored throughout construction, operation, and closure stages 

Social Requirements (Mandatory)

• Compliance with minimum wage laws, working hours, occupational safety, and social security registration

• Adherence to union rights and worker grievance mechanisms

• Special emphasis on high‑risk sectors (construction, garments, agriculture)

Governance Requirements

• Mandatory ESG disclosure for listed companies on the Cambodia Securities Exchange (CSX) starting 10 May 2026

• Corporate governance reporting for banks and financial institutions

• Anti‑corruption compliance and internal controls under sector‑specific regulations

4. Types of Projects Requiring ESG Compliance

Projects Requiring Mandatory ESIA

Under Sub‑Decree No. 72 and updated EIA classifications, ESG compliance is mandatory for:

• Hydropower and energy projects

• Mining and quarrying

• Agro‑industrial plantations

• Manufacturing factories

• Infrastructure (roads, ports, airports)

• Tourism and real estate development

• Waste treatment and industrial zones

​Projects with Enhanced ESG Scrutiny

• Foreign‑funded or concessional projects

• Financial‑sector financed developments

• Export‑oriented manufacturing subject to international ESG standards (e.g., garments)