Your Papua New Guinean customer or buyer is asking for ESG information. Here is what the regulatory environment requires — and what international buyers need from you.
Papua New Guinea (PNG) is one of the world's most biodiverse countries and a significant producer of gold, copper, oil, natural gas, palm oil, coffee, cocoa, and timber. PNG's Port Moresby Stock Exchange (POMSoX) is developing ESG disclosure requirements for listed companies. PNG's agricultural and forestry exports — particularly palm oil, coffee, cocoa, and timber — face transformative compliance requirements from the EU Deforestation Regulation (EUDR). PNG's mining sector faces ESG requirements from international buyers subject to EU Battery Regulation and CSDDD. PNG is also notable for its extraordinary biodiversity and the ESG risks associated with resource extraction in ecologically sensitive areas.
Key regulations in Papua New Guinea — ESG Supplier Guide
EU Deforestation Regulation (EUDR) — Palm Oil, Coffee, Cocoa, Timber
PNG is a significant producer of palm oil, coffee, cocoa, and timber — all covered by the EU Deforestation Regulation. EU importers of PNG palm oil, coffee, cocoa, and timber must demonstrate that these commodities were not produced on land deforested after December 31, 2020, and were legally produced. PNG has experienced significant deforestation, particularly from palm oil expansion and logging. PNG exporters must implement geolocation data collection and deforestation verification systems to maintain EU market access.
EU CSDDD — Corporate Sustainability Due Diligence Directive
EU companies sourcing from PNG — particularly in palm oil, coffee, cocoa, timber, gold, copper, and LNG — will be required under CSDDD to conduct human rights and environmental due diligence. PNG faces significant ESG risks including: land rights conflicts (customary land ownership is constitutionally protected but frequently disputed in resource projects), gender-based violence, labour rights in remote mining and plantation operations, and environmental impacts of large-scale resource extraction.
RSPO — Roundtable on Sustainable Palm Oil
PNG is a significant palm oil producer, with major plantations in New Britain, New Ireland, and Milne Bay. The Roundtable on Sustainable Palm Oil (RSPO) certification is the primary international standard for sustainable palm oil. RSPO-certified PNG palm oil producers are better positioned to meet EU EUDR requirements and buyer sustainability questionnaires. EU buyers are increasingly requiring RSPO certification from palm oil suppliers.
PNG Mining Act and Environmental Regulations
PNG's Mining Act and Environment Act require environmental impact assessments and environmental management plans for mining operations. Major mining projects including Ok Tedi, Porgera, and Ramu NiCo have faced significant environmental controversies. International buyers conducting CSDDD due diligence on PNG mining suppliers must assess compliance with PNG environmental law and international environmental standards, including IFC Performance Standards.
What this means for you as a supplier
PNG palm oil, coffee, cocoa, and timber exporters face urgent EUDR compliance requirements — geolocation data collection must be underway ahead of the December 2026 deadline. RSPO certification for palm oil provides a strong foundation for EUDR compliance. Mining sector suppliers face ESG requirements from international buyers driven by EU Battery Regulation and CSDDD. All PNG companies seeking international financing should prepare for IFC Performance Standards compliance assessments. Land rights and community consent are critical ESG issues for all resource sector operations in PNG.
Key dates
December 31, 2020
EUDR deforestation cut-off date — palm oil, coffee, cocoa, and timber produced on land deforested after this date is non-compliant
December 30, 2026
EUDR applies to large EU operators — PNG palm oil, coffee, cocoa, and timber exporters must demonstrate deforestation-free production
June 30, 2027
EUDR applies to SME EU operators — full EUDR compliance required for all EU market access
July 2029
CSDDD Phase 1 — largest EU companies must conduct supply chain due diligence including PNG suppliers
Customary land rights: the defining ESG challenge in PNG
Approximately 97% of PNG's land is held under customary ownership by indigenous communities — one of the highest proportions in the world. PNG's Constitution recognises customary land rights. However, resource extraction projects — including mining, oil and gas, and plantation agriculture — have frequently resulted in land rights conflicts, inadequate compensation, and community displacement. International buyers conducting CSDDD due diligence on PNG suppliers must assess whether free, prior, and informed consent (FPIC) has been obtained from customary landowners. The Ok Tedi mine (copper and gold) and the Porgera gold mine have both faced significant land rights and environmental controversies that resulted in international litigation. PNG resource companies should document their FPIC processes and community benefit agreements to facilitate buyer due diligence.
Biodiversity: PNG's extraordinary natural capital and ESG obligation
PNG is one of the world's most biodiverse countries, containing approximately 5% of the world's species on less than 1% of its land area. PNG's forests — which cover approximately 70% of the country — are among the most intact tropical forests remaining on Earth. This extraordinary biodiversity creates significant ESG obligations for resource extraction companies operating in PNG. International buyers conducting CSDDD due diligence must assess biodiversity impacts of PNG resource operations. The Kunming-Montreal Global Biodiversity Framework — agreed at COP15 in 2022 — commits countries to protecting 30% of land and sea by 2030 (30x30). PNG's biodiversity assets are relevant to the emerging nature-related financial disclosure frameworks (TNFD) that international investors and buyers are beginning to apply.
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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