Your Israeli customer or buyer is asking for ESG information. Here is what the regulatory environment requires — and what they need from you.
Israel has a well-developed ESG regulatory framework anchored by the Tel Aviv Stock Exchange (TASE) mandatory sustainability reporting requirements and the Israel Securities Authority (ISA) climate disclosure rules. Israeli technology, pharmaceutical, and industrial companies are deeply integrated into EU and US supply chains, and face ESG requirements from both domestic regulators and international buyers subject to CSRD, CSDDD, and US SEC climate disclosure rules. Israel's Association Agreement with the EU creates additional alignment pressure on Israeli companies' ESG practices.
Key regulations in Israel — ESG Supplier Guide
TASE Mandatory ESG Reporting
The Tel Aviv Stock Exchange requires all listed companies to publish annual ESG reports covering environmental performance, social responsibility, and governance. Reports must be aligned with GRI Standards or equivalent international frameworks. From 2024, TASE has strengthened requirements to align more closely with ISSB standards, reflecting Israel's integration with international capital markets.
ISA Climate Disclosure Rules
The Israel Securities Authority requires large listed companies to disclose climate-related financial risks and opportunities aligned with TCFD recommendations. This covers physical climate risks, transition risks, and greenhouse gas emissions. The ISA rules apply to the largest TASE-listed companies and are being extended to a broader range of issuers.
EU CSDDD — Corporate Sustainability Due Diligence Directive
EU companies importing from Israel — particularly in technology components, pharmaceuticals, chemicals, and agricultural products — will be required under CSDDD to conduct human rights and environmental due diligence across their supply chains. Israeli suppliers will receive questionnaires covering environmental management, labour rights, and supply chain transparency.
Israeli Environmental Protection Law & Clean Air Act
Israel's environmental regulatory framework includes the Clean Air Act, the Hazardous Substances Law, and the Water Law, administered by the Ministry of Environmental Protection. Industrial companies must comply with emission standards, waste management requirements, and environmental impact assessment obligations. These domestic compliance records form part of the evidence base for international buyer due diligence.
What this means for you as a supplier
Israeli companies supplying EU and US buyers face ESG requirements from both domestic regulators and international buyers. TASE-listed companies already have mandatory ESG reporting obligations. EU buyers will require supply chain due diligence evidence under CSDDD from July 2029. Technology sector suppliers face specific scrutiny on supply chain transparency, conflict minerals, and data privacy. Agricultural exporters face questions on water usage — a particularly sensitive topic given Israel's water-scarce environment — and pesticide management.
Key dates
2022 (ongoing)
TASE mandatory ESG reporting — all listed companies must publish annual ESG reports
2023 (ongoing)
ISA climate disclosure rules — large listed companies must disclose TCFD-aligned climate risks
July 2029
CSDDD Phase 1 — largest EU companies must conduct supply chain due diligence including Israeli suppliers
2029
CSDDD Phase 3 — EU companies with ≥1,000 employees; most Israeli exporters' EU buyers will be covered
Technology sector: supply chain transparency and conflict minerals
Israel's technology sector — semiconductors, cybersecurity, medical devices, and software — is deeply integrated into EU and US supply chains. Technology buyers are increasingly requiring supply chain transparency on conflict minerals (under the EU Conflict Minerals Regulation and US Dodd-Frank Section 1502), responsible AI practices, and data privacy compliance. Israeli technology suppliers should be prepared to evidence responsible sourcing of electronic components and compliance with applicable data protection frameworks.
Agricultural exports: water usage and pesticide management
Israel is a global leader in agricultural technology and exports significant volumes of fresh produce, citrus, and flowers to EU markets. EU buyers conducting supply chain due diligence on Israeli agricultural suppliers focus particularly on water usage and conservation practices — Israel operates in a water-scarce environment and its agricultural water efficiency is internationally recognised — and on pesticide management and residue levels. Israeli agricultural exporters should be prepared to evidence their water management systems and pesticide compliance records.
Last reviewed: April 2026. This guide is for general information only and does not constitute legal advice. Regulations change — verify current requirements with a qualified adviser.
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