Laws/regulations concerning climate change prevention or mitigation include:

• Ley Nº 5875/17 "De Cambios Climáticos" Law No. 5875/17 "On Climate Change"
  Law No. 5875/17 aims to address climate change by establishing strategies for mitigation and adaptation. Recently, a new law was approved to improve Paraguay's carbon credit market, creating a more organized and transparent system. This law includes the creation of a registry for carbon credit projects to ensure proper management and prevent issues like double assignment of land for credits. It also aims to attract more investments in carbon credits while addressing concerns about land ownership and the credibility of carbon credit reporting.
• Ley Nº 6676/2020“Que prohíbe las actividades de transformación y conversión de superficies con cobertura de bosques en la Región Oriental” Law No. 6676/2020 "Which prohibits the activities of transformation and conversion of areas with forest cover in the Eastern Region (Región Oriental)"
  Law No. 6676/2020 aims to regulate the protection, recovery and improvement of the native forest in the Eastern Region (Región Oriental) so that, within a framework of sustainable development, the forest fulfills its environmental, social and economic functions, contributing to the improvement of the quality of life of the country's inhabitants.

The scope of the application of these laws is Federal.

Laws/regulations concerning energy transition include:

• Ley Nº 3239/07 “De los Recursos Hídricos del Paraguay” Law No. 3239/07 "On the Water Resources of Paraguay"
  Law No. 3239/07 “On the Water Resources of Paraguay”, is responsible for regulating the sustainable and comprehensive management of all waters and the territories that produce them, regardless of their location, physical state or natural occurrence within the Paraguayan territory, with the purpose of making it socially, economically and environmentally sustainable for the people who inhabit the territory of the Republic of Paraguay.
• Ley Nº 6977/23 "Regula el fomento, generación, producción, desarrollo y la utilización de energía eléctrica a partir de fuentes de energías renovables no convencionales no hidráulicas" Law No. 6977/23 "Regulates the promotion, generation, production, development and use of electric energy from non-hydraulic non-conventional renewable energy sources"
  Regarding Law No. 6977/23, its purpose is to promote the promotion, generation, production, development and use of electric energy from the use of non-hydraulic non-conventional renewable energy sources, such as biomass, bioenergy, geothermal, solar, wind, and green hydrogen.

The scope of the application of these laws is Federal.

Laws/regulations concerning electricity markets, carbon markets, or similar include:

• Ley Nº 7.190/23 "De los Créditos de Carbono" Law No. 7.190/23 "On Carbon Credits"
  The Law on carbon credits in Paraguay, approved by President Santiago Peña, aims to establish a regulatory framework defining ownership of the benefits related to reduced, avoided, or captured carbon, as well as ownership of Carbon Credits generated by projects developed in Paraguay.

The scope of the application of this law is Federal.

Not applicable.

Not applicable.

Not applicable.

Laws/regulations concerning the field of circular economy include:

• Ley Nº 3956/09 "de Gestión Integral de los Residuos Solidos en la Republica del Paraguay" Law No. 3956/09 on Integrated Management of Solid Waste in the Republic of Paraguay
  While this law may not directly address all aspects of the circular economy, it plays a crucial role in managing waste and promoting sustainable practices. The circular economy aims to minimize waste generation by promoting the reuse, recycling, and repurposing of materials to create a closed-loop system that reduces environmental impact and fosters sustainable resource management.

The scope of the application of this law is Federal.

Laws/regulations concerning stakeholder well-being and social impact include:

• Ley Nº 716/96 - Que sanciona delitos contra el medio ambiente. Law No. 716/96 That penalizes crimes against the environment
  This legislation aims to protect the environment and human quality of life against activities that threaten the ecosystem's balance, sustainability of natural resources, and human well-being. This law establishes penalties for various environmental offenses to ensure the preservation of the environment and biodiversity.

The scope of the application of this law is Federal.

Laws/regulations concerning non-discrimination include:

• National Constitution. International Treaties, Immigration Law Nº 6984. Article 46 of the Paraguayan Constitution, Law Nº 1/92, Act Nº. 34/92, Law Nº 496/95, Act Nº 834/96, Law Nº 1160/97, Law Nº 1600/00, Law Nº 1680/01, Law Nº 863/02
  Some laws promote the inclusion of people with disabilities, such as: Law No. 7.093/2023, Law No. 6057/18, Law No. 6793/2021, Law No. 6.667/2020, Law No. 6.354/19. Law No. 6793/2021 exempts import customs duties and VAT for vehicles and adaptive devices for vehicles for disabled persons. Law No. 6.354/19 guarantees access to communication and information for deaf and hearing disabled persons to carry out procedures in State entities. Law No. 6057/18 regulates the right to access, ambulation and permanence in public places and public transportation services to any person with disabilities accompanied by a guide or assistance dog. Law No. 7.093/2023 regulates the use of the cane for people with total blindness, deafblindness and low vision, setting a color for each person (for example: if the person is using a white cane, that means that they are totally blind, which helps to identify them in the crowd). Law No. 6.667/2020 promotes the permanent implementation of massive campaigns of dissemination and awareness on the rights of persons with disabilities and everything related to the inclusion of persons with disabilities.

Additionally:

• Article 46 of the Paraguayan Constitution
  Establishes equality between women and men, prohibits discrimination, and requires the State to remove barriers that sustain it.
• Act No. 1/92
  Partially modifies the Civil Code, focusing on the rights of the family and equal rights for women in marriage.
• Act No. 34/92
  Created the Women’s Bureau of the Office of the President of the Republic, with ministerial rank.
• Act No. 496/95
  Incorporated equality and non-discrimination against women in the workplace.
• Act No. 834/96
  Established the 20% female participation quota in lists for elective posts under the Electoral Code.
• Act No. 1160/97
  Incorporated the gender perspective in legal discourse, addressing issues like sexual harassment and domestic violence
• Act No. 1600/00
  Focused on domestic violence, including urgent measures for victims within families.
• Act No. 1680/01
  Addressed issues related to children and adolescents.
• Act No. 863/02
  The Agrarian Statute promoted equality for women in access to land, credit, and benefits in the rural sector.

The scope of the application of these laws and acts is Federal.

Laws/regulations concerning the prevention of modern slavery include:

• Paraguayan Constitution, Labor Code, Penal Code, Law No. 1.160/97 (Article 129)
  Penal Code, Law 1.160/97, Article 129 of the Paraguayan Penal Code addresses human trafficking, specifically punishing those who induce prostitution through force, threat, or deception.
• Law No. 4788 Integral Against Trafficking in Persons
  Law Number 4788 Integral Against Trafficking in Persons aims to prevent and sanction human trafficking in all its forms, both within the national territory and abroad. It also focuses on protecting and assisting victims of trafficking.
• Convention on Forced Labor, the Convention on the Abolition of Forced Labor, and the Convention on the Prohibition of the Worst Forms of Child Labor
  International Conventions, Paraguay has ratified various international conventions related to forced labor and child labor, such as the Convention on Forced Labor, the Convention on the Abolition of Forced Labor, and the Convention on the Prohibition of the Worst Forms of Child Labor.

The scope of the application of these laws is Federal.

Resources: 

• https://www.bacn.gov.py/leyes-paraguayas/9580/constitucion-nacional- 
• https://www.oas.org/dil/esp/codigo_penal_paraguay.pdf 
• https://www.bacn.gov.py/leyes-paraguayas/3497/codigo-penal 
• https://www.bacn.gov.py/leyes-paraguayas/3158/ley-n-4788-integral-contra-la-trata-de-personas 

Laws/regulations concerning Diversity, Equity, and Inclusion include:

• Paraguayan Constitution (Article 46), Law No. 1/92, Law No. 496/95, Law No. 1160/97
  • Article 46 of the Paraguayan Constitution: This article establishes equality between women and men, prohibits discrimination, and emphasizes the importance of removing barriers that sustain discrimination
  • Act No. 1/92: This act partially modifies the Civil Code, focusing on family rights and equal rights for women in marriage
  • Act No. 496/95: Incorporates provisions for equality and non-discrimination against women in the workplace
  • Act No. 1160/97: Addresses issues like sexual harassment and domestic violence, incorporating a gender perspective into legal discourse

The scope of the application of these laws is Federal.

Not applicable. 

Laws/regulations concerning the protection of vulnerable or minority communities include:

• Paraguayan National Constitution - Protection on Minorities, Indigenous Peoples' Statute (Law No. 390/97), Statute for Children and Adolescents (Law No. 1680/02)
  • Article 46 of the Constitution: This article prohibits discrimination based on race, sex, religion, social origin, economic condition, or any other condition. This lays the foundation for equal rights for all citizens, including minorities.
  • The Indigenous Peoples' Statute (Law No. 390/97) of Paraguay recognizes and guarantees the rights of indigenous peoples to preserve and nurture their ethnic identity, follow their own political, social, economic, cultural, and religious norms, and be bound by their customary laws in internal matters.
  • Law No.1680/02 includes provisions aimed at safeguarding the rights, well-being, and development of children and adolescents, ensuring their protection from exploitation, abuse, and neglect while promoting their overall welfare and access to education, healthcare, and other essential services.

The scope of the application of these laws is Federal.

Resources:

• https://www.bacn.gov.py/leyes-paraguayas/9580/constitucion-nacional- 
  
• https://www.bacn.gov.py/leyes-paraguayas/11737/ley-n-390-autoriza-al-poder-ejecutivo-a-gestionar-la-repatriacion-de-los-restos-mortales-del-ilustre-cultor-de-nuestra-musica-don-agustin-pio-barrios 
  
• https://www.bacn.gov.py/leyes-paraguayas/5261/ley-n-1680-codigo-de-la-ninez-y-la-adolescencia#:~:text=El%20ni%C3%B1o%20y%20el%20adolescente%20tienen%20derecho%20a%20estar%20protegidos,su%20desarrollo%20arm%C3%B3nico%20e%20integral 

Laws/regulations concerning the economic development of vulnerable or minority communities or groups include:

• Paraguayan National Constitution- Protection of Minorities
  The Paraguayan Constitution, specifically in the section related to the protection of minorities, emphasizes safeguarding the rights and cultural heritage of indigenous peoples and other minority groups.

The scope of the application of this law is Federal.

Laws/regulations on Personal Data Protection include:

• Law No. 6534 Credit Data Protection
  This legislation aims to guarantee the protection of credit data of all people, regardless of their nationality, residence or domicile.

The scope of the application of this law is Federal.

Laws/regulations concerning the integration of the board of directors, trustees, or management body of the company include:

• Resolution No. 16, Act No. 4 of the Paraguayan Central Bank, January 2022
  The Central Bank of Paraguay updated its Corporate Governance Regulations in January 2022, emphasizing the management of conflicts of interest and introducing changes related to board composition and responsibilities. These regulations include provisions such as:
  • Reporting Subjects: Entities supervised by the Superintendence of Insurance are required to adopt minimum standards of corporate governance.
  • Due Diligence: Emphasis on identification, measurement, and control of risks.
  • Committees: Guidance for optional committees like Compensation, Human Resources, Ethics, and Regulatory Compliance Committees.
  • Chairman's Role: Clearly defined responsibilities for the Chairman to ensure effective board operation and decision-making.
  • Group Structures: Obligations for the Board of Directors of the economic group to oversee business and risk within its group.
  • Control Threshold: Restrictions on Board members holding positions in multiple entities or financial groups. Incompatibilities: Limitations on Board members holding management positions in other financial groups or more than three entities.
  • Risk Management: Precise definitions and regulations on risk culture, appetite, limits, and responsibilities for regulatory compliance.
  • Conflicts of Interest: Policies to identify and manage conflicts of interest within the entity.

The scope of the application of these is Entities regulated by the Central Bank's Superintendency, Insurance Superintendency.

Laws/regulations concerning fiduciary responsibility and administrators' roles in environmental and social risk management include:

• Civil Code
• Company's Bylaws
• Penal Code

There are no specific ESG risks. Directors have unlimited and joint and severed liability before the company, the shareholders and third parties for acts of non-performance or poor performance, violations of the law or the bylaws, and damages caused by fraud, abuse of authority or negligence.

The Penal Code penalizes breach of trust (Art. 192 as amended by Law No. 3.440/08), establishing that whoever, on the basis of a law, an administrative resolution or a contract, has assumed the obligation to protect a relevant patrimonial interest for a third party and causes or fails to prevent, within the scope of protection entrusted to him, a patrimonial damage, shall be punished with imprisonment of up to five years or with a fine.

The scope of the application of these laws is Federal.

Laws/regulations concerning corporate purpose include:

• Civil Code and Company's Bylaws
  The Paraguayan Civil Code lays the foundation for company formation. Companies establish their purpose and core activities within their bylaws, which must comply with the Civil Code's provisions. This essentially defines the company's reason for existing and the lawful actions it can take. While not mandated, some companies might voluntarily integrate ESG considerations into their decision-making, potentially influencing their overall purpose.

Not applicable.

Laws/regulations concerning supply chains from the perspective of ESG risk governance include:

• Ley Nº 1334/98 "De Defensa del Consumidor y del Usuario" Law No. 1334/98 Consumer Protection Law
  Paraguay has established laws impacting supply chains, though not explicitly focused on ESG. These include regulations on:
  • Labor rights: Ensuring suppliers comply with minimum wage, working hour restrictions, and anti-discrimination practices.
  • Environmental protection: Companies might need to consider environmental regulations that apply to their suppliers' operations, such as waste management or pollution control.
  • Consumer protection: Regulations might require companies to ensure their suppliers adhere to product safety standards or fair labeling practices.

The scope of the application of this law is Federal.

Laws/regulations concerning M&A include:

• Paraguayan Comercial Code, Law No. 7162/23 which creates the Superintendence of Securities
  The Paraguayan Commercial Code establishes the legal foundation for M&A transactions. It outlines procedures for mergers, acquisitions, and other corporate restructuring activities.
  
  The Superintendence of Securities is the regulatory body overseeing the Paraguayan stock market. It plays a role in M&A transactions involving publicly traded companies.

The scope of the application of this law is Federal.

Laws/regulations concerning Corporate Digital Responsibility include:

• Ley Nº 6534/20 "de Protección de Datos Crediticios" Law Nº 6534/20 on Data Protection
  Data Protection: The law Ley Nº 6534 / DE PROTECCIÓN DE DATOS PERSONALES CREDITICIOS in Paraguay pertains to the protection of credit-related personal data. This legislation focuses on safeguarding the privacy and security of individuals' credit information.
  Consumer Protection in the Digital Sphere: The Consumer Defense Code (mentioned previously) can be extended to cover online interactions. This ensures fair treatment and protects consumers from deceptive practices in the digital marketplace.
• Ley Nº 4868/13 "de Comercio Electronico" Law No. 4868/13 on Electronic Commerce
  E-commerce Regulations: Paraguay has regulations governing electronic commerce, which can indirectly promote responsible digital practices. These might include requirements for clear product information and secure online transactions.

The scope of the application of these laws is Federal.

Not applicable.

Not applicable.