Sustainability Watch: Monthly Regulatory Highlights – May 2026

Europe

The EU is advancing product-level traceability through Digital Product Passports while refining battery circularity rules and strengthening forest resilience via improved seed traceability. The UK and Wales are driving circular economy practices through deposit return schemes and high-integrity nature investment standards. Switzerland is aligning sustainability reporting with EU frameworks, and the GHG Protocol is tightening Scope 3 emissions reporting, reinforcing global expectations for robust value chain accountability.

European Union is accelerating its transition to a circular economy through a suite of product-level interventions. Recent guidance under the Packaging and Packaging Waste Regulation (PPWR) reinforces lifecycle accountability by introducing stringent recyclability, labelling, and waste-reduction requirements. Commission’s ongoing consultation on battery re movability exemptions highlights the increasingly nuanced balance between circularity objectives and product safe ty. The latest package on the EU De fore station Regulation reflects a pragmatic turn toward implementation readiness EU’s sustainable product policy architecture introduces critical clarifications under the Ecode sign frame work by de fining when unsold consumer goods may be destroyed.

In the UK, the Independent AntiSlavery Commissioner’s analysis signals that modern slavery risks are becoming more complex, digital, and harder to detect, thus calling for strengthened prevention frameworks and more robust corporate due diligence .

APAC

Singapore’s launch of a Carbon Markets Programme in collaboration with the World Bank Group signals a decisive move toward scaling high-integrity carbon markets, with emphasis on interoperable registries, digital monitoring, reporting, verification systems, and capacity building for market participants. Vietnam has advanced its carbon market readiness through a formal monitoring framework for carbon credit and emissions quota trading, enhancing transparency, reporting obligations, and institutional oversight in line with its phased carbon market rollout. China continues to deepen its climate governance through performance assessment mechanisms for carbon peaking and neutrality targets, embedding accountability at provincial levels and strengthening the dualcontrol system for emissions intensity and volume. Thailand is advancing towards proposed legislation on pollution disclosure, circular economy obligations, and climate governance, signalling a structural shift toward modern ESG regulation.

Written By

Adityam Dutta
Consultant, Insights & Advisory ESG team   Posts
Wendy Wen
Analyst, Insights & Advisory ESG team   Posts

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