What are the key statutory environmental, social, and governance disclosure obligations in your jurisdiction?
Not applicable.
TerraLex Cross-Border Guide to Cross-Border Guide to ESG and Sustainable Finance
TerraLex is pleased to announce its recent digital publication of a Cross-Border Guide to ESG & Sustainable Finance, a resource for key ESG regulations and trends around the world. This electronic resource, which covers more than 20 jurisdictions around the world, addresses a variety of issues, including:
- Key statutory disclosure obligations
- Analogous regulations or regulatory initiatives in the absence of formal rules
- Shareholders/investors’ rights and liability around ESG compliance
- Potential ESG prohibitions or restrictions within the statutory framework
- Tax and other benefits related to integrating ESG factors into investment decisions
- Special measures against greenwashing and any related enforcement action
- Emerging legislative and regulatory developments related to ESG
Special thanks to Martin Weber (Roesle Frick & Partners) as well as the members of the TerraLex ESG Industry Sector Team for developing the questions for this guide.
How to Use: You can use the tools below to create bespoke reports for the jurisdiction(s) and topic(s) covered. Click into single jurisdiction for one location or use the compare tool to compare multiple jurisdictions. Select the jurisdictions and topics of interest to create your unique report. You also have the option to print or download using the ellipsis button in the top right corner.
Guatemala Cross-Border Guide to ESG and Sustainable Finance Guide
- Firms:
- Carrillo & Asociados
- Authors:
- Sara Santacruz, Ana Lucia Chavez
- Date posted:
- 07/06/2023
- Last update:
- 28/03/2025
Are there any important voluntary environmental, social, and governance disclosures in your jurisdiction, beyond those required by law or regulation?
Not applicable.
What are the frequently used frameworks for ESG disclosures in your jurisdiction (e.g., GRI, SASB, TCFD recommendations, etc.)?
Not applicable.
What are the key statutory environmental, social, and governance obligations requiring action other than disclosure in your jurisdiction?
Not applicable.
Do ESG rules in your jurisdiction have extraterritorial effect?
Not applicable.
Are there any specific regulations in your jurisdiction regarding advertising with ESG claims?
Not applicable.
Is it required in your jurisdiction to impose special ESG rights and/or obligations on suppliers (e.g., contractual clauses pursuant to UK Modern Slavery Act)?
Not applicable.
Can shareholders/investors hold a company/entity or its corporate bodies/representatives liable when positive ESG efforts of such company (e.g., initiatives to achieve net zero) cause loss to the company and/or them?
Not applicable.
Can shareholders/investors hold a company/entity or its corporate bodies/representatives liable when non-compliance with ESG rules causes loss to the company and/or them?
Not applicable.
Can customers, creditors, or other affected parties hold a company/entity or its corporate bodies/representatives liable when non-compliance with ESG rules causes loss to them?
Not applicable.
If there are no ESG rules in your jurisdiction, is there any analogous regulation or regulatory initiative?
There is no specific ESG regulation in Guatemala, however in Guatemala, there are different analogous regulations regarding such topic. As per “Environmental” matter, in August 2021, Governmental Agreement Number 164-2021, Regulations for the Integral Management of Common Solid Waste, was issued. This regulation stipulates that people who produce waste or common solid waste as a result of their activities must separate them according to classification provided by the law. Besides the aforementioned law, the following rules also aim to regulate the “environment”: Decree 68-86, Environmental Protection and Improvement Law; Decree 101-96, Forestry Law; Decree 48-89, Protected Areas Law; Governmental Agreement 137-2016, Regulation of Environmental Evaluation, Control and Monitoring; Governmental Agreement 236-2006, Regulation of Wastewater Discharge and Reuse and Sludge Disposal.
Furthermore, regarding the “Social” matter, in Guatemala, different laws and regulations have imposed obligations on companies to promote social principles. Labor Code, no discrimination on the basis of race, gender/sex, ethnic origin, marital status, social status, language, disability, and union activity is permitted. It also stipulates the principle of equality of remuneration for work of equal value among workers (Article 89 of the Labor Code of Guatemala, Decree 1441). Other obligations are covered by the Occupational Health and Safety Regulations, which regulate the general health and safety conditions of workplaces and the standards necessary for the prevention of risks that workers may incur in their work activities.
Lastly regarding the “Governance” issue, in Guatemala corporations are governed by the provisions of the articles of incorporation and the provisions of the Commercial Code. Companies are free to include their governance practices in their articles of incorporation or outside the articles of incorporation. Decision-making processes, as well as the rights and responsibilities of each of its organs (shareholders, directors, managers) can be regulated in its articles of incorporation. Anti-corruption and transparency procedures and practices may be regulated in the Internal Work Regulations, in a Code of Ethics or other mandatory policies for employees and members of the company. It is also common for companies to implement policies and practices that will guide their performance in contracting and relations with customers and suppliers, ensuring compliance with the law and minimum standards of corporate responsibility and transparency. Some of the articles that state the foregoing are the following: a) the prohibition for the administrators of a company to engage on their own account or on behalf of others in the same type of business as the company (Art. 44 Code of Commerce); b) The prohibition for a director to vote in a decision in which he/she has a direct or indirect interest (Art. 169 Code of Commerce); c) Obligation of a director to disclose any interest or benefit to be obtained from the operation of the corporation (Art. 170 Code of Commerce).
Has your jurisdiction reviewed its statutory framework to identify any prohibitions or restrictions that would prevent a company/entity from pursuing ESG initiatives?
Not applicable.
What statutory sustainable finance and investment frameworks are followed in your jurisdiction regarding ESG indicators (i.e., how a company operates) and impact indicators (i.e., what a company achieves with its products and services)?
Not applicable.
What voluntary sustainable finance and investment frameworks are followed in your jurisdiction regarding ESG indicators (i.e., how a company operates) and impact indicators (i.e., what a company achieves with its products and services)?
Not applicable.
Are financial institutions, investment advisors, and/or pension institutions in your jurisdiction required to consider ESG factors when making investment decisions or recommendations?
Not applicable.
Are there any tax or other benefits available in your jurisdiction to encourage financial institutions and/or pension institutions to integrate ESG factors into their investment decisions?
Not applicable.
Have the regulators (including financial market supervisory authorities) in your jurisdiction adopted special measures against “greenwashing”? What are the consequences of non-compliance with such measures?
Not applicable.
Have there been any recent enforcement action or case law pertaining to “greenwashing” in the financial market in your jurisdiction?
Not applicable.
What legislative and regulatory developments are likely to emerge in connection with ESG obligations in your jurisdiction?
To date, there is no information that Guatemalan Congress will issue any law regarding this topic. Nevertheless, as it was mentioned in question number 11 analogous regulation has been and will be issued in order to execute corporate sustainability. Furthermore, in Guatemala some private organizations have emerged in order to help different companies to design and implement sustainability and social responsibility strategies.
What legislative and regulatory developments are likely to emerge in connection with the consideration of ESG factors in M&A in your jurisdiction?
Not applicable.
Disclaimer: This guide contains summaries of general principles of law. It is not a substitute for specific legal advice and should not be relied upon in relation to the application of the law or subject matter covered.