Upcoming Sustainability Legislation You Need To Know

Some big sustainability changes are coming in the next few years! Here’s a quick look at the incoming legislation and how it will affect you. 

2024 – EU Corporate Sustainability Reporting Directive (CSRD)

Strengthens social and environmental reporting rules, requiring a broader set of large companies and listed SMEs to report on sustainability. Non-EU companies generating over EUR 150 million in the EU market must also comply. 

2024 – UK Sustainability Reporting Standards

New regulations to enhance transparency and standardisation in corporate sustainability reporting, ensuring companies provide consistent and reliable information on their ESG practices and impacts.

2024 – Ecodesign for Sustainable Products Regulation  

Key legislation designed to promote environmentally sustainable and circular products in the EU, aimed at reducing climate impact and pollution, enhancing material circularity, and achieving 2030 energy efficiency targets. 

2024 – Sustainability Disclosure Reporting 

The SDR targets the UK asset management sector to prevent greenwashing by ensuring that sustainability claims are fair, clear, and not misleading, and by increasing consumer access to sustainability data. Overseen by the FCA, it introduces sustainable investment labels, an anti-greenwashing rule, limits on sustainability-related marketing terms, and disclosure requirements. The finalized rules will take effect in 2024.

2025 – Corporate Sustainability Due Diligence Directive 

Mandates EU companies perform due diligence in their business and value chains to minimise human rights and environmental risks. Likely to take effect in early 2025. 

2026 – Carbon Border Adjustment Mechanism 

EU tool to equalise carbon pricing for domestic products and imports across cement, iron, steel, aluminium, fertilisers, electricity and hydrogen. EU importers must report import volumes and associated GHG emissions. From 2026, they will need to purchase CBAM certificates to cover their emissions.

2026 – UK Corporate Governance Code

Reflect the broader responsibilities of the board and audit committee for sustainability and ESG reporting, and require boards to consider audit tendering with a focus on expanding market diversity.

Need help with your sustainability legislation? Axiom is here to help every step of the way, making sustainability compliance as simple as ESG!