Your Cambodian customer or buyer is asking for ESG information. Here is what the regulatory environment requires — and what international buyers need from you.

The Securities and Exchange Regulator of Cambodia (SERC) has introduced sustainability reporting requirements for companies listed on the Cambodia Securities Exchange (CSX). Listed companies are required to disclose ESG information in their annual reports, covering environmental performance, social responsibility, and governance. The framework is aligned with GRI Standards and is being progressively strengthened. Cambodia's capital market is small and developing, so the primary ESG compliance pressure on Cambodian companies comes from international buyer requirements rather than domestic regulation.

EU companies sourcing from Cambodia — particularly in garments, footwear, and electronics — will be required under CSDDD to conduct human rights and environmental due diligence across their supply chains. Cambodian suppliers will receive questionnaires on labour practices, freedom of association, environmental management, and anti-corruption compliance. The garment and footwear sectors are primary targets given their scale in Cambodia's export economy.

Cambodia benefits from the EU's Everything But Arms (EBA) trade preference scheme, which provides duty-free access to the EU market for least developed countries. EBA preferences are conditional on compliance with core human rights and labour rights conventions. The EU partially withdrew Cambodia's EBA preferences in August 2020 following concerns about political and labour rights. The partial withdrawal affects garments, footwear, and travel goods. Cambodian exporters in affected sectors face higher EU tariffs and must demonstrate compliance with labour rights standards to support any future restoration of full EBA preferences.

UK companies sourcing from Cambodia's garment and footwear sectors are required to publish annual Modern Slavery Act transparency statements disclosing steps taken to identify and address modern slavery risks. Cambodia's garment sector has documented risks including debt bondage, recruitment fees, and restrictions on freedom of association. UK buyers must conduct due diligence on Cambodian suppliers and may require suppliers to complete labour rights questionnaires and third-party social audits.

Cambodia's Labour Law provides for freedom of association, collective bargaining, minimum wages, and workplace health and safety. Cambodia has ratified ILO core conventions. However, implementation and enforcement have been inconsistent, and international buyers conduct independent assessments of Cambodian suppliers' labour practices. The Cambodian garment sector has a history of labour disputes, factory fires, and building safety incidents. International buyers require Cambodian garment suppliers to demonstrate compliance with the Better Work Cambodia programme standards and buyer-specific codes of conduct.

Cambodia's Law on Telecommunications (2015) and the Sub-Decree on Electronic Commerce provide limited data protection provisions. The Ministry of Post and Telecommunications (MPTC) oversees telecommunications cybersecurity and operates CamCERT (Cambodia Computer Emergency Response Team). Cambodia does not yet have a comprehensive data protection law or mandatory breach notification regime. International buyers from the EU, UK, or USA will assess Cambodian suppliers — particularly in the garment and manufacturing sectors — against their own data protection standards under CSRD and CSDDD supply chain due diligence. Suppliers should implement incident response procedures aligned with international best practice.