Global Sustainability Regulations Shaping Corporate Risk by 2026

Sustainability regulations are evolving globally, particularly concerning reporting under IFRS and the Circular Economy Act in the EU. China is advancing its ESG disclosure and Environmental Code, while the US federal regulation on sustainability remains stalled. Key developments include EU simplifications in sustainability reporting, delayed implementation of the Corporate Due Diligence Directive to 2028, and the withdrawal of ESG proposals by the SEC. Additionally, states like California and New York are progressing with emissions disclosures.

Published Mar 21, 2026

Sustainability regulations are increasingly being established worldwide, with a specific focus on reporting and disclosure frameworks aligned with the Paris Agreement. The EU plans to advance a Circular Economy Act in 2026, while China is moving towards ESG disclosure and an Environmental Code.

AI-curated by Theia

The EU simplified sustainability reporting in June 2025 and delayed the Corporate Due Diligence Directive to 2028. In the US, federal sustainability regulation is stalled, although individual states are progressing with emissions disclosure legislation. The ISSB published draft updates in July 2025, and Singapore extended climate reporting timelines.