Laws/regulations concerning climate change prevention or mitigation include: 

• The Constitution of the Bolivarian Republic of Venezuela
• The Organic Environmental Law

The scope of the application of these laws is Federal. 

In its preamble, the Venezuelan Constitution promotes ecological balance and enshrines the environment as a common and irrevocable heritage of humanity. The Organic Environmental Law does not expressly regulate the prevention of climate change, nor specifically address carbon footprint or pollution measurement. However, certain behaviors aimed at reducing pollution are mandated within this law, such as the prohibition of solid waste burning in open fields.

Resources: 

• https://www.oas.org/dil/esp/constitucion_venezuela.pdf
• https://ve.microjuris.com/getContent?page=fullContent.jsp&reference=MJ-N-214-VE&links=[LEY,%20ORG,%20AMBIENT] 

Laws/regulations concerning energy transition (requirements or promotion and use of new second-generation renewable energy sources such as solar, wind, tidal, H2, geothermal, among others) include: 

• The Constitution of the Bolivarian Republic of Venezuela
• The Rational and Efficient Use of Energy Law
• The Organic Law of Electric Service
• The Water Law

The scope of the application of these laws is Federal.

The Law of Rational and Efficient Use of Energy aims to promote and guide the rational and efficient use of energy in production, generation, transformation, transportation, distribution, marketing, and final energy use processes, in order to preserve natural resources, minimize environmental and social impact, contribute to social equity and well-being by establishing policies and the promotion of incentives. In relation to renewable energies, the law simply encourages their utilization and adaptation. The Water Law aims to conserve and sustainably utilize the hydrological resource, guaranteeing its protection, use, and recovery, and promoting, in a very broad manner, the use of hydroelectric energy.

Resources: 

• https://www.oas.org/dil/esp/constitucion_venezuela.pdf
• https://ve.microjuris.com/getContent?page=fullContent.jsp&reference=MJ-N-29703-VE&links=[LEY,%20USO,%20EFICIENT,%20ENERG]
• https://ve.microjuris.com/getContent?page=fullContent.jsp&reference=MJ-N-24316-VE&links=[LEY,%20ORG,%20SERVIC,%20ELECTR]
• https://ve.microjuris.com/getContent?page=fullContent.jsp&reference=MJ-N-1318-VE&links=[MJN1318VE,%20MJ,%20N,%201318,%20VE] 

Laws/regulations concerning electricity markets, carbon markets, etc. include: 

• The Organic Law of Electric Service
• The Rational and Efficient Use of Energy Law
• Decree No. 3,597, by which carbon is declared a strategic mineral for exploration and exploitation, thus subjecting it to the regulation established in the Decree with Range, Value, and Force of Organic Law that reserves to the State the activities of exploration and exploitation of gold and other strategic minerals.

The scope of the application of these laws is Federal.

The purpose of this law is to regulate the electric system and the provision of electrical service in the National Territory, as well as international energy exchanges, through the activities of generation, transmission, dispatch of the Electric System, distribution, and commercialization. The decree declares carbon as a strategic mineral for exploration and exploitation and reserves the activities of exploration and exploitation to the National Executive.

Resources: 

• https://ve.microjuris.com/getContent?page=fullContent.jsp&reference=MJ-N-24316-VE&links=[LEY,%20ORG,%20SERVIC,%20ELECTR]
• https://ve.microjuris.com/getContent?page=fullContent.jsp&reference=MJ-N-29703-VE&links=[USO,%20EFICIENT,%20ENERG] 
• https://ve.microjuris.com/getContent?page=fullContent.jsp&reference=MJ-N-64127-VE&links=[DECRET,%203597,%20CARBON,%20MIN,%20ESTRATEG] 

Laws/regulations concerning the realm of green or sustainable financing include:

• The Decree with the Force of Law for the Creation, Incentive, Promotion, and Development of the Microfinance System

The scope of the application of these laws is Federal.

The decree includes among its objectives the incorporation into promotion and development programs of the rational and sustainable use of financial resources, as well as the promotion of programs aimed at developing a productive culture and quality services, facilitating sustainability.

Resources: 

• https://docs.venezuela.justia.com/federales/decretos/decreto-n-1-250.pdf 

Laws/regulations concerning preventing greenwashing include: 

• The Organic Law of Fair Pricing
• The Antimonopoly Law

The scope of the application of these laws is Federal.

There is no special regulation on Greenwashing; however:

• The Organic Law of Fair Prices establishes the obligation to provide adequate and truthful information about the characteristics, quality, and other relevant aspects of goods and services offered.
• The Antimonopoly Law considers Unfair Competition (and sanctions) actions that: (i) mislead consumers about the fundamental characteristics, origin, composition, and effects of the use of a good or service; (ii) advertising that disseminates assertions about goods or services that are not truthful and accurate, placing responsible parties at a disadvantage against their competitors; and (iii) enjoying an advantage acquired through the non-compliance with laws or technical regulations, such as environmental, social security, consumer, or other regulations.

Resources: 

• https://pandectasdigital.blogspot.com/2016/07/ley-organica-de-precios-justos.html
• https://ve.microjuris.com/getContent?page=fullContent.jsp&reference=MJ-N-47707-VE&links=[LEY,%20ANTIMONOPOL]

Laws/regulations concerning ESG Due Diligence applicable to value chains include: 

• The Regulation of Good Distribution Practice Standards

The scope of the application of this law is Federal.

Value chains are regulated independently according to the good practice standards of each area, through separate regulations. As can be seen in the provided links, these regulations often address waste management for each of these areas such as human food and pharmaceuticals, taking into account sustainability and their environmental impact.

Resources:

• https://ve.microjuris.com/getContent?page=fullContent.jsp&reference=MJ-N-5676-VE&links=[NORM,%20BUEN,%20PRACTIC]
• https://ve.microjuris.com/getContent?page=fullContent.jsp&reference=MJ-N-5675-VE&links=[NORM,%20BUEN,%20PRACTIC] 

Laws/regulations concerning the field of circular economy include: 

• The Constitution of the Bolivarian Republic of Venezuela
• The Waste Management Law
• Decree No. 4,445 dated February 24, 2021, declaring "strategic material subject to recycling" to include metallic, ferrous, aluminum, copper, iron, bronze, steel, nickel or other types of metal waste and residues, naval, aeronautical, electrical, and electronic scrap, in any condition, as well as non-metallic solid waste, optical fiber, and secondary fiber resulting from the recycling of paper and cardboard, in any condition. (Official Gazette No. 6,617 Extraordinary of February 24, 2021)
• Decree No. 2,635 Regulations for the control of the recovery of hazardous materials and the management of hazardous waste (Official Gazette No. 5,245 of August 3, 1998)

The scope of the application of these laws is Federal.

The circular economy is governed by the Comprehensive Waste Management Law, which establishes regulatory provisions for the comprehensive management of waste. Its objective is to reduce waste generation and ensure that its collection, utilization, and final disposal are carried out in a sanitary and environmentally safe manner. However, there are also other legal provisions that:

1. promote recycling, reuse, and utilization in the form of recoverable hazardous materials and the treatment and final disposal of hazardous material waste, and
2. classify certain waste and residues of minerals and other materials such as naval, aeronautical, electrical, and electronic scrap, optical fiber, paper, and cardboard as "strategic material subject to recycling".

Resources: 

• https://www.oas.org/dil/esp/constitucion_venezuela.pdf
• https://ve.microjuris.com/getContent?page=fullContent.jsp&reference=MJ-N-24580-VE&links=[MANEJ,%20DESECH,%20LEY]
• https://ve.microjuris.com/getContent?page=fullContent.jsp&reference=MJ-N-8972-VE&links=[]
• https://ve.microjuris.com/getContent?page=fullContent.jsp&reference=MJ-N-70676-VE&links=[DECRET,%204445,%20MAT,%20ESTRATEG]

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

• The Law for Disabled Persons
• The Organic Law of Science, Technology and Innovation

The scope of the application of these laws is Federal.

Although there is no specific regulation in Venezuela regarding the well-being of stakeholders of companies, there are laws imposing social responsibility on them. Regarding social impact, the Law for Persons with Disabilities mandates the integration of disabled individuals into the labor market, according to their limitations and possibilities. This law assigns the competent ministry the task of developing corresponding plans and policies to achieve this integration. Additionally, the Organic Law of Science, Technology, and Innovation requires all companies in Venezuela to contribute a determined amount of money to the National Fund for Technology and Innovation.

Resources: 

• https://ve.microjuris.com/getContent?page=fullContent.jsp&reference=MJ-N-3481-VE&links=[MJN3481VE,%20MJ,%20N,%203481,%20VE]
• https://ve.microjuris.com/getContent?page=fullContent.jsp&reference=MJ-N-47602-VE&links=[]

Laws/regulations concerning non-discrimination include: 

• The Constitution of the Bolivarian Republic of Venezuela
• The Organic Law Against Racial Discrimination
• The Law Against Hatred, for Peaceful Coexistence, and Tolerance
• The Law on Equal Opportunities for Women

The scope of the application of these laws is Federal.

The Venezuelan Constitution, in its preamble, enshrines the right to equality without discrimination, further guaranteeing the state's protection of human rights without discrimination, and equality before the law without discrimination based on race, sex, creed, or social condition. It also prohibits political, racial, sexual, age, creed, or any other form of discrimination. Additionally, the Organic Law against Racial Discrimination aims to establish adequate mechanisms to prevent, address, eradicate, and sanction racial discrimination in all its forms, ensuring that all individuals and groups enjoy and exercise their rights and duties. Similarly, the Law Against Hatred, for Peaceful Coexistence, and Tolerance aims to contribute to creating the necessary conditions to promote and guarantee the recognition of diversity, tolerance, and mutual respect, as well as to prevent and eradicate all forms of hatred, contempt, harassment, discrimination, and violence.

Resources: 

• https://www.oas.org/dil/esp/constitucion_venezuela.pdf
• https://ve.microjuris.com/getContent?page=fullContent.jsp&reference=MJ-N-72365-VE&links=[DISCRIMIN,%20RAC]
• https://ve.microjuris.com/getContent?page=fullContent.jsp&reference=MJ-N-61542-VE&links=[LEY,%20CONTR,%20ODI]
• https://ve.microjuris.com/getContent?page=fullContent.jsp&reference=MJ-N-1943-VE&links=[]

Laws/regulations concerning the prevention of modern slavery include: 

• The Constitution of the Bolivarian Republic of Venezuela
• The Children and Adolescents Organic Law

The scope of the application of these laws is Federal.

The Venezuelan Constitution enshrines in Article 54 that no person shall be subjected to slavery or servitude. Human trafficking, particularly that of women, children, and adolescents in all its forms, shall be subject to the penalties provided by law. Additionally, it upholds the right to freedom in all its forms. The Children and Adolescents Organic Law establishes that no child or adolescent shall be subjected to any form of slavery, servitude, or forced labor.

Resources: 

• https://www.oas.org/dil/esp/constitucion_venezuela.pdf
• https://ve.microjuris.com/getContent?page=fullContent.jsp&reference=MJ-N-50909-VE&links=[NINH,%20NINH,%20ADOLESCENT]

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

• The Constitution of the Bolivarian Republic of Venezuela
• The Law for Disabled Persons
• The Law Against Hatred, for Peaceful Coexistence, and Tolerance
• The Law on Equal Opportunities for Women

The scope of the application of these laws is Federal.

The Venezuelan Constitution, in its preamble, enshrines the right to equality without discrimination, further guaranteeing the state's protection of human rights without discrimination, equality before the law without discrimination based on race, sex, creed, or social condition. It also prohibits political, racial, sexual, age, creed, or any other form of discrimination. The Law for Disabled Persons aims to achieve integration into family and community life, through their direct participation as full-fledged citizens and the supportive participation of society and family. The Law Against Hatred, for Peaceful Coexistence, and Tolerance aims to contribute to creating the necessary conditions to promote and guarantee the recognition of diversity, tolerance, and mutual respect, as well as to prevent and eradicate all forms of hatred, contempt, harassment, discrimination, and violence.

Resources: 

• https://www.oas.org/dil/esp/constitucion_venezuela.pdf
• https://ve.microjuris.com/getContent?page=fullContent.jsp&reference=MJ-N-3481-VE&links=[LEY,%20PERSON,%20DISCAPAC]
• https://ve.microjuris.com/getContent?page=fullContent.jsp&reference=MJ-N-61542-VE&links=[CONTR,%20ODI]
• https://ve.microjuris.com/getContent?page=fullContent.jsp&reference=MJ-N-1943-VE&links=[] 

Laws/regulations regarding ESG-linked compensation include: 

• The Income Tax Law
• The Organic Environmental Law

The scope of the application of these laws is Federal.

The Income Tax Law provides tax benefits for taxpayers with ESG initiatives, such as deducting from their declaration those expenses incurred for collective utility and social responsibility purposes, and granting a ten percent (10%) tax reduction in addition to the amount of investments in assets, programs, and activities aimed at the conservation, defense, and improvement of the environment. On the other hand, the Organic Environmental Law establishes that the State will establish economic and fiscal incentives for those who make investments to conserve the environment, in order to guarantee sustainable development.

Resources:

• https://ve.microjuris.com/getContent?page=fullContent.jsp&reference=MJ-N-53594-VE&links=[]
• https://ve.microjuris.com/getContent?page=fullContent.jsp&reference=MJ-N-214-VE&links=[AMBIENT,%20ORG]

Laws/regulations regarding ESG Regulation for the protection of vulnerable or minority communities includes: 

• The Constitution of the Bolivarian Republic of Venezuela
• The Organic Law of Indigenous Communities

The scope of the application of these laws is Federal.

The Venezuelan Constitution establishes that, in addition to Spanish as the official language, indigenous languages are also official for indigenous peoples and must be respected throughout the territory of the Republic. Furthermore, it recognizes the existence of indigenous peoples and communities, their social, political, and economic organization, their cultures, customs, languages, and religions, as well as their habitat and original rights over the lands they occupy. On the other hand, the Organic Law of Indigenous Communities guarantees the rights of indigenous communities to ensure their active participation in the life of the Venezuelan Nation, the preservation of their cultures, and the exercise of their self-determination in internal affairs.

Resources: 

• https://www.oas.org/dil/esp/constitucion_venezuela.pdf
• https://ve.microjuris.com/getContent?page=fullContent.jsp&reference=MJ-N-182-VE&links=[COMUN,%20INDIG] 

Laws/regulations regarding the regulation for economic development of vulnerable or minority communities or groups includes: 

• The Organic Law of Indigenous Communities

The scope of this law is Federal.

The Organic Law of Indigenous Communities establishes the self-management of these communities, including their own economic activities, while also allowing their participation in the national economy. Likewise, this law grants them the right to receive economic and social benefits for the development of their ways of life, and it establishes a duty of protection by the State towards the economy of these communities.

Resources: 

• https://ve.microjuris.com/getContent?page=fullContent.jsp&reference=MJ-N-182-VE&links=[COMUN,%20INDIG] 

Not applicable.

Although the Venezuelan Constitution includes the right to privacy and the right of individuals "to access information and data about themselves or their property contained in official or private records," Venezuela lacks a personal data protection law or comprehensive policies that encompass the right to data protection in its entirety. Additionally, our Constitution does not allow for anonymity. Despite the absence of a specific data protection law, in 2011, the highest Court of the Republic issued a judgment establishing the general principles that must be followed in handling personal data, applicable to all personal database systems. These principles are: (i) The principle of purpose and quality; (ii) The principle of temporality or conservation; (iii) The principle of accuracy and self-determination; (iv) The principle of security and confidentiality; and (v) The principle of responsibility.

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

• The Constitution of the Bolivarian Republic of Venezuela. Articles 2, 3 and 21
• The Organic Law of Labor and Workers. Articles 20 and 21
• Ruling: Norms of Good Corporate Governance of the Securities Market of the Bolivarian Republic of Venezuela. Published on July 19, 2021 in the Official Gazette of the Bolivarian Republic of Venezuela No. 42,171

The scope of the application of these laws is Federal.

In Venezuela there is no specific ESG regulation that governs the operation of the management bodies of companies in general. The application of these rules is usually voluntary in the Statutory Document of each Company. However, regarding the Stock Market, the implementation of these policies is mandatory by the Ruling on the Rules of Good Corporate Governance of the Stock Market of the Bolivarian Republic of Venezuela as of 2021. Likewise, the Organic Law of Labor and Workers, provides for labor inclusion.
In this sense, many companies have begun to adopt them voluntarily as part of their business management strategy, since it allows building a company in an institutional manner, promoting transcendence through a corporate compliance structure, with responsibilities, weights and counterweights. In addition to providing confidence in operations, it favors potential investor relations processes.

Resources: 

• https://venezuela.justia.com/federales/constitucion-de-la-republica-bolivariana-de-venezuela/titulo-iii/capitulo-i/
• https://mppp.gob.ve/wp-content/uploads/2023/07/decreto-n0-8938-mediante-el-cual-se-dicta-el-decreto-con-rango-valor-y-fuerza-de-la-ley-organica-del-trabajo-los-trabajadores-y-las-trabajadoras-20211109135532.pdf
• https://www.hklaw.com/-/media/files/insights/publications/2021/08/sunavalissuesrulesrelatedtogoodcorporategovernancees.pdf?la=es&rev=93973993b9eb401f93da67ce1977b17f#:~:text=42.171%20de%20fecha%2019%20de,Corporativo%20del%20Mercado%20de%20Valores%22.

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

• The Constitution of the Bolivarian Republic of Venezuela. Articles 127, 128 and 129
• The Organic Code of Commerce. Articles 266 and 268
• The Organic Environmental Law. Articles 96 and 110 to 118

The scope of the application of these laws is Federal.

The Venezuelan Constitution establishes the duty of all citizens to protect and maintain the environment, and the Organic Law of the Environment states that those who carry out activities capable of degrading the environment will be jointly responsible for the management of the environment, according to the type of activity and effects derived therefrom. However, the treatment of these regulations is very generic and, in principle, imputes the responsibility for the damages caused to the environment to the company as a legal person with rights and duties. In this sense, section 4 of the Environmental Criminal Law expressly typifies the criminal liability of legal entities for environmental crimes. However, by analogous interpretation of the Organic Code of Commerce, "The administrators are jointly and severally liable to the shareholders and to third parties... 4º And in general, for the exact fulfillment of the duties imposed by law and the corporate bylaws".

Resources:

• https://venezuela.justia.com/federales/constitucion-de-la-republica-bolivariana-de-venezuela/titulo-iii/capitulo-ix/
• https://mhov.com.ve/wp-content/uploads/2014/08/Codigo-de-Comercio.pdf
• https://euroclimaplus.org/intranet/_documentos/repositorio/Ley%20Org%C3%A1nica%20del%20Ambiente_2006Venezuela.pdf
• https://www.asambleanacional.gob.ve/storage/documentos/leyes/ley-penal--20211109143642.pdf

Not applicable.

Venezuelan legislation does not expressly regulate the purpose of commercial companies, nor does it limit the capacity of the corporate entity to this element of the contract; the only mention in this regard is found in the enumeration of data or elements that must be included in the articles of incorporation of the company, among which the "object" or "type of business to which the company is dedicated" is cited interchangeably.

Not applicable.

At present in Venezuela there is no special regulation for this type of companies.

Not applicable.

In Venezuela, there is currently no specific ESG regulation specific to supply chains.
However, depending on the type of goods or services, there are Good Practice Standards and Technical Regulations that regulate these processes. However, even if there is no specific regulation, companies can voluntarily adopt ESG-related practices to contribute to sustainable and ethical development in their supply chains.

Laws/regulations in the context of M&A (ESG due diligence) include: 

• The Antimonopoly Law
• Regulation No. 2 of the Law to Promote and Protect the Exercise of Free Competition
• Resolution No. SPPLC/039-99. Guidelines for the evaluation of economic concentration operations

The scope of the application of these laws is Federal.

Competition regulations govern that mergers and economic concentration operations between companies do not cause imbalances in the market and adverse effects for consumers.

Resources: 

• https://ve.microjuris.com/getContent?page=fullContent.jsp&reference=MJ-N-47707-VE&links=[LEY,%20ANTIMONOPOL]
• https://ve.microjuris.com/getContent?page=fullContent.jsp&reference=MJ-N-8916-VE&links=[CONCENTR,%20OPER,%20ECONOM]
• https://ve.microjuris.com/getContent?page=fullContent.jsp&reference=MJ-N-11796-VE&links=[EVALU,%20OPER,%20CONCENTR,%20ECONOM] 

Not applicable.

In Venezuela, there is currently no specific ESG (environmental, social and governance) regulation specific to Corporate Digital Responsibility. However, some regulations include provisions allowing certain entities to maintain digital corporate records of their users or clients.

Laws/regulations concerning specific mandates related to national alignment with specific reporting standards include: 

• The Constitution of the Bolivarian Republic of Venezuela
• The Environmental Organic Law
• The Environmental Criminal Law
• Regulations on Environmental Assessment of Activities Susceptible to Impacting the Environment

The scope of the application of these laws is Federal.

Resources: 

• https://www.oas.org/dil/esp/constitucion_venezuela.pdf
• https://ve.microjuris.com/getContent?page=fullContent.jsp&reference=MJ-N-214-VE&links=[MJN214VE,%20MJ,%20N,%20214,%20VE]
• https://ve.microjuris.com/getContent?page=fullContent.jsp&reference=MJ-N-31747-VE&links=[LEY,%20PEN,%20AMBIENT]
• https://ve.microjuris.com/getContent?page=fullContent.jsp&reference=MJ-N-6754-VE&links=[NORM,%20SOBR,%20EVALU,%20AMBIENT,%20ACTIV,%20SUSCEPT,%20DEGRAD,%20AMBIENT] 

Not applicable.

These reports should be submitted on the frequency established by the provisions that regulate each area or sector.