Sustainability regulation is evolving rapidly across major global markets.
Frameworks are becoming more focused, more consistent, and more enforceable.
At the same time, expectations are rising, making sustainability a core business priority.
Europe
The Omnibus I Directive entered the Official Journal, formally recalibrating CSRD and CSDDD scope and timelines. Mandatory sustainability reporting and due diligence are now concentrated on the largest, most systemically impactful companies, while double materiality, governance accountability and risk‑based value‑chain due diligence remain core pillars.
The EU Ecodesign for Sustainable Products regulation has been adopted thus setting narrow derogations from the ban on destroying unsold consumer goods, operationalising waste‑prevention objectives while allowing limited, justified exceptions.
Regulators in the UK issued updated guidance on Extended Producer Responsibility for packaging, clarifying compliance obligations during corporate mergers and ownership transfers, an important signal as fee liability and data accuracy become central enforcement levers.
North America
ESG regulation in the United States is increasingly driven by large states, forcing multinationals to align early with rigorous, state‑based disclosure and producer‑responsibility regimes.
California solidified its role as the effective climate‑disclosure trend‑setter by approving regulations for mandatory Scope 1 and 2 emissions reporting for large entities doing business in the state.
In parallel, implementation work continued on California’s landmark packaging extended‑producer‑responsibility regime, advancing circular‑economy obligations ahead of its 2027 start.
On the East Coast, the New York State Senate the Climate Corporate Data Accountability framework requiring annual Scope 1–3 emissions disclosure from companies exceeding US$1bn in revenue, now advancing to the Assembly.
APAC & Oceania
Across the APAC & Oceania region, policymakers signaled stronger alignment with global reporting baselines, clearer product‑level integrity tools and heightened supervisory focus, reinforcing sustainability data as a core input to capital allocation and risk assessment rather than a peripheral ESG exercise.
Japan is tightening ESG regulations through updated disclosure rules mandating SSBJ-based sustainability reporting, expanded product criteria under the Green Procurement Act, revised environmental labeling aligned with ISO standards.
China is advancing ESG transparency with revised corporate disclosure guidelines and trial assurance standards to curb greenwashing, enhance data reliability, and shift reporting toward value creation.
