Your Egyptian customer has sent you a sustainability questionnaire. Here is what the law and EGX require of them โ and what they need from you.
Egypt has established a structured ESG and sustainability reporting framework through the Egyptian Exchange (EGX) and the Financial Regulatory Authority (FRA). The EGX ESG Reporting Guidance, aligned with GRI standards, applies to listed companies. Egypt is also a significant supplier to EU companies subject to CSRD and CSDDD, particularly in textiles, chemicals, and manufacturing. The Egyptian government's Sustainability and Responsible Competitiveness (SPARC) initiative and the National Climate Change Strategy 2050 are driving ESG integration across the economy.
Key regulations in Egypt โ ESG & Sustainability Supplier Guide
EGX ESG Reporting Guidance
The Egyptian Exchange requires listed companies to publish annual ESG reports aligned with GRI Standards. The framework covers environmental impact, social responsibility, and governance practices. Companies are expected to assess and disclose material ESG risks across their value chain, including supplier assessment and due diligence.
Financial Regulatory Authority (FRA) โ Sustainability Disclosure
The FRA has issued sustainability disclosure requirements for companies listed on the EGX. The framework is aligned with international standards including GRI and TCFD, and covers climate risk, social impact, and governance. Companies must disclose material sustainability risks including supply chain exposure.
National Climate Change Strategy 2050
Egypt's National Climate Change Strategy 2050 sets out commitments to reduce emissions and build climate resilience. It includes sector-specific targets for energy, industry, transport, and agriculture. Companies in high-impact sectors are expected to align their operations and supply chains with the strategy's objectives.
EU CSRD and CSDDD โ Supply Chain Reach into Egypt
Egypt is a significant supplier to EU companies in textiles, chemicals, food, and manufacturing. EU companies subject to CSRD must report on supply chain sustainability, and CSDDD requires supply chain due diligence. Egyptian suppliers to EU buyers will receive increasingly structured ESG questionnaires as these obligations take effect.
What this means for you as a supplier
You are not directly regulated by EU ESG laws unless you are a large company with EU operations. But your Egyptian buyer may be subject to EGX reporting requirements โ and if your buyer supplies EU companies, those buyers' CSRD and CSDDD obligations flow directly into your supply chain relationship. Egypt's proximity to the EU market and its significant role in EU supply chains makes ESG compliance increasingly important for Egyptian suppliers.
Key dates
2022
EGX ESG Reporting Guidance becomes mandatory for listed companies
2022
Egypt's National Climate Change Strategy 2050 adopted
FY2024
EU CSRD mandatory for large EU companies โ Egyptian suppliers begin receiving structured questionnaires
July 2029
CSDDD supply chain due diligence โ EU buyers must assess Egyptian suppliers for human rights and environmental risks
2027
EU Forced Labour Regulation in force โ goods produced with forced labour barred from EU market
Egypt's position in global supply chains
Egypt is a significant manufacturing and export hub, particularly in textiles and garments, chemicals, food processing, and engineering. Its proximity to Europe and membership of multiple trade agreements makes it a key supplier to EU companies. As EU buyers face mandatory CSRD and CSDDD obligations, Egyptian suppliers are increasingly subject to structured ESG questionnaires from their European customers.
The EGX framework creates domestic obligations for listed Egyptian companies, while the EU regulatory reach creates international pressure on Egyptian suppliers regardless of their listing status. Both pressures are increasing.
What your buyer's questionnaire will ask
Questionnaires from EGX-listed Egyptian buyers and from EU buyers sourcing from Egypt typically cover the following areas.
Environmental management
Compliance with Egypt's Environment Law No. 4 of 1994 and its amendments. Waste management, water use, and pollution control. ISO 14001 certification is increasingly expected by EU buyers.
Climate and emissions
Greenhouse gas emissions data aligned with Egypt's National Climate Change Strategy. Scope 1 and 2 data at minimum; EU buyers subject to CSRD increasingly require Scope 3 supply chain emissions.
Labour rights and working conditions
Compliance with Egypt's Labour Law No. 12 of 2003, minimum wage requirements, and ILO core conventions. Freedom of association and collective bargaining rights.
Health and safety
Workplace safety management aligned with Egyptian occupational health and safety legislation. Incident records, safety certifications, and worker training evidence.
Governance and anti-corruption
Anti-corruption policies aligned with Egypt's Anti-Corruption Law. Code of conduct, supplier agreement acceptance, and whistleblowing mechanisms.
Supply chain due diligence
Evidence that you assess your own suppliers for ESG risks. EU buyers subject to CSDDD require their suppliers to demonstrate that they manage their own supply chain risks โ the Tier 2 question.
What happens if your response is inadequate
- โEU buyers may suspend or terminate supply relationships where ESG questionnaire responses are inadequate
- โFrom July 2029, CSDDD requires EU buyers to take action on identified supply chain risks โ including supplier remediation or termination
- โEGX-listed Egyptian buyers face domestic enforcement for inadequate sustainability disclosures, creating pressure on their supply chains
- โThe EU Forced Labour Regulation (from 2027) can bar goods from the EU market if produced with forced labour
Last reviewed: April 2026. This guide is for general information only and does not constitute legal advice. Regulations change โ verify current requirements with a qualified adviser.
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