{ "id": "manufacturing-esg-regulations", "title": "Manufacturing ESG & Decarbonization Regulation Tracker", "asOf": "2026-07-20", "description": "A living tracker of the world's major ESG, climate-disclosure, and carbon regulations affecting manufacturing and supply chains — organized by region, scope, timing, and primary source. Reflects the latest developments including the EU Omnibus (adopted February 2026).", "statusLabels": { "in_force": "In force", "transition": "Transition", "upcoming": "Upcoming", "proposed": "Proposed", "repealed": "Withdrawn" }, "regulations": [ { "id": "cbam", "name": "CBAM (Carbon Border Adjustment Mechanism)", "region": "EU", "scope": "Importers of steel, aluminium, cement, fertilizers, hydrogen, electricity (under 50t/yr exempt)", "status": "in_force", "appliesFrom": "2026-01-01", "keyDates": [ { "date": "2023-10-01", "label": "Transitional period begins (reporting only)" }, { "date": "2026-01-01", "label": "Definitive period begins (2026 imports in scope)" }, { "date": "2027-02-01", "label": "CBAM certificate sales begin (delayed from Jan 2026)" } ], "summary": "The definitive period starts in 2026, but certificate purchases begin in February 2027 (settling 2026 import emissions retroactively). The Omnibus simplification (Reg 2025/2083) exempts importers under 50 tonnes/year — ~90% of importers while still covering ~99% of emissions. The annual declaration deadline moves to 30 September. Note: the ETS revision tabled on 17 July 2026 proposes extending free allocation to 2038, which would also delay the full CBAM transition (proposal stage).", "sourceUrl": "https://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism_en", "relatedArticles": [ "cbam-carbon-border-adjustment-mechanism-guide", "cbam-declaration-practical-flow" ] }, { "id": "csrd", "name": "CSRD (Corporate Sustainability Reporting Directive)", "region": "EU", "scope": "Companies with >1,000 employees and >€450M turnover (narrowed by Omnibus)", "status": "in_force", "appliesFrom": "2024-01-01", "keyDates": [ { "date": "2024-01-01", "label": "Wave 1 (former NFRD large companies) begins" }, { "date": "2025-04-16", "label": "Stop-the-Clock directive delays Waves 2/3 by two years" }, { "date": "2026-02-26", "label": "Omnibus I directive published (in force 18 Mar); scope narrowed" } ], "summary": "Omnibus I sharply narrows scope to >1,000 employees and >€450M turnover. Wave 2 large companies move to FY2027 (reported in 2028). Wave 1 continues to report. ESRS is also being simplified.", "sourceUrl": "https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/company-reporting-and-auditing/company-reporting/corporate-sustainability-reporting_en", "relatedArticles": [ "csrd-csddd-practical-guide", "double-materiality-csrd-iro-practical-guide" ] }, { "id": "csddd", "name": "CSDDD (Corporate Sustainability Due Diligence Directive)", "region": "EU", "scope": "Phased from companies with >5,000 employees and >€1.5B turnover (narrowed by Omnibus)", "status": "upcoming", "appliesFrom": "2029-07-26", "keyDates": [ { "date": "2024-07-25", "label": "Entry into force" }, { "date": "2028-07-26", "label": "Transposition deadline (extended one year)" }, { "date": "2029-07-26", "label": "Application begins with the largest companies" } ], "summary": "Mandates human-rights and environmental due diligence. The Omnibus delays application to July 2029 and narrows the first wave to >5,000 employees and >€1.5B turnover.", "sourceUrl": "https://commission.europa.eu/business-economy-euro/doing-business-eu/sustainability-due-diligence-responsible-business/corporate-sustainability-due-diligence_en", "relatedArticles": [ "csrd-csddd-supply-chain-japan-impact", "human-rights-due-diligence-process" ] }, { "id": "eu-battery-regulation", "name": "EU Battery Regulation (Regulation 2023/1542)", "region": "EU", "scope": "Manufacturers and importers placing batteries on the EU market", "status": "in_force", "appliesFrom": "2025-02-18", "keyDates": [ { "date": "2024-04-01", "label": "Delegated regulation on EV battery carbon footprint published" }, { "date": "2025-02-18", "label": "EV battery carbon-footprint declaration phases in" }, { "date": "2027-02-18", "label": "Battery passport and other requirements expand" } ], "summary": "Phases in starting with EV battery carbon-footprint declarations. Industrial batteries (>2 kWh) follow in 2026 and LMT batteries in 2028. Recycled-content rules and the battery passport phase in over time; actual dates track the publication of delegated/implementing acts.", "sourceUrl": "https://environment.ec.europa.eu/topics/waste-and-recycling/batteries_en", "relatedArticles": [ "eu-battery-regulation-carbon-footprint-declaration-guide" ] }, { "id": "eu-taxonomy", "name": "EU Taxonomy", "region": "EU", "scope": "CSRD-covered companies and financial institutions", "status": "in_force", "appliesFrom": "2022-01-01", "keyDates": [ { "date": "2022-01-01", "label": "Climate mitigation/adaptation objectives apply" }, { "date": "2026-02-26", "label": "Omnibus simplifies disclosure burden (materiality, etc.)" } ], "summary": "A classification of environmentally sustainable activities, used to disclose the aligned share of revenue and capex. The Omnibus is set to reduce the reporting burden.", "sourceUrl": "https://finance.ec.europa.eu/sustainable-finance/tools-and-standards/eu-taxonomy-sustainable-activities_en", "relatedArticles": [ "eu-taxonomy-regulation-reporting-guide" ] }, { "id": "espr", "name": "ESPR (Ecodesign for Sustainable Products Regulation)", "region": "EU", "scope": "A broad range of physical products sold in the EU", "status": "in_force", "appliesFrom": "2024-07-18", "keyDates": [ { "date": "2024-07-18", "label": "Framework regulation enters into force" }, { "date": "2025-04-01", "label": "Working plan sets priority products; product rules follow" } ], "summary": "A framework that will require durability, repairability, recyclability, and a digital product passport, product by product. Steel, aluminium, and textiles are among the priority products.", "sourceUrl": "https://commission.europa.eu/energy-climate-change-environment/standards-tools-and-labels/products-labelling-rules-and-requirements/ecodesign-sustainable-products-regulation_en", "relatedArticles": [] }, { "id": "eudr", "name": "EUDR (EU Deforestation Regulation)", "region": "EU", "scope": "Operators in 7 commodities (palm oil, soy, wood, cattle, rubber, cocoa, coffee)", "status": "upcoming", "appliesFrom": "2026-12-30", "keyDates": [ { "date": "2024-12-01", "label": "First delay (application to end-2025)" }, { "date": "2025-12-01", "label": "Reg 2025/2650: further delay and simplification" }, { "date": "2026-12-30", "label": "Application begins for large operators" }, { "date": "2027-06-30", "label": "Application for SMEs/individuals" } ], "summary": "Requires due diligence that covered products are deforestation-free. After two delays, large operators apply from 30 December 2026. A simplification review is due by April 2026.", "sourceUrl": "https://environment.ec.europa.eu/topics/forests/deforestation/regulation-deforestation-free-products_en", "relatedArticles": [] }, { "id": "ssbj", "name": "SSBJ Standards (Japan's sustainability disclosure standards)", "region": "Japan", "scope": "TSE Prime-listed companies (phased by market cap)", "status": "upcoming", "appliesFrom": "2027-03-31", "keyDates": [ { "date": "2025-03-01", "label": "Standards finalized" }, { "date": "2027-03-31", "label": "Applies to market cap ≥¥3tn (FY ending Mar 2027)" }, { "date": "2028-03-31", "label": "Applies to ≥¥1tn; assurance for ≥¥3tn" }, { "date": "2029-03-31", "label": "Applies to ≥¥500bn" } ], "summary": "Japan's standards aligned with ISSB (IFRS S1/S2), phased into securities reports by market cap. Currently voluntary while the FSA finalizes scope.", "sourceUrl": "https://www.ssb-j.jp/", "relatedArticles": [ "ssbj-disclosure-standard-practical-guide", "ssbj-2027-supplier-preparation", "fsa-ssbj-assurance-issa5000-2026" ] }, { "id": "gx-ets", "name": "GX-ETS (Japan's emissions trading scheme)", "region": "Japan", "scope": "Entities emitting ≥100,000 t CO2/yr (FY23-25 avg), ~300-400 companies", "status": "in_force", "appliesFrom": "2026-04-01", "keyDates": [ { "date": "2023-04-01", "label": "Phase 1 (voluntary) begins" }, { "date": "2026-04-01", "label": "Phase 2 (mandatory) begins; FY2026-2032" } ], "summary": "Moved to a mandatory Phase 2 in April 2026. ~300-400 firms emitting ≥100,000 t CO2/yr (about 60% of Japan's emissions) are covered. Price corridor ¥1,700-4,300/t, up to 10% met with credits.", "sourceUrl": "https://www.meti.go.jp/policy/energy_environment/global_warming/GX-ETS/index.html", "relatedArticles": [ "gx-ets-phase2-midcap-supplier-impact", "gx-ets-emission-calculation-reporting" ] }, { "id": "brsr-core", "name": "BRSR Core (India's responsible business reporting)", "region": "India", "scope": "Top listed companies by market cap (phased)", "status": "in_force", "appliesFrom": "2023-04-01", "keyDates": [ { "date": "2023-04-01", "label": "Reasonable assurance for top 150 (FY23-24)" }, { "date": "2024-04-01", "label": "Expands to top 250 (FY24-25)" }, { "date": "2025-04-01", "label": "Expands to top 500 (FY25-26)" }, { "date": "2026-04-01", "label": "Expands to top 1,000 (FY26-27)" } ], "summary": "SEBI's reasonable-assurance disclosure of core KPIs, expanding from the top 150 to 250, 500, and 1,000 companies. Affects supply chains of export-oriented Indian manufacturers.", "sourceUrl": "https://www.sebi.gov.in/", "relatedArticles": [ "india-brsr-fy26-sustainability-reporting-2026", "brsr-core-practical-guide-procurement" ] }, { "id": "sec-climate", "name": "SEC Climate-Related Disclosure Rule (US)", "region": "United States", "scope": "US listed companies", "status": "repealed", "appliesFrom": "2024-03-06", "keyDates": [ { "date": "2024-03-06", "label": "Final rule adopted" }, { "date": "2025-03-27", "label": "SEC ends defense of the rule" }, { "date": "2026-03-01", "label": "Full rescission formally proposed" } ], "summary": "The federal climate-disclosure rule is being rescinded. State laws (e.g., California) remain the effective obligations.", "sourceUrl": "https://www.sec.gov/", "relatedArticles": [ "sec-climate-disclosure-rescission-proposal-2026" ] }, { "id": "ca-sb253", "name": "California SB253 (GHG emissions disclosure)", "region": "United States", "scope": "Companies with >$1B revenue doing business in California", "status": "upcoming", "appliesFrom": "2026-08-10", "keyDates": [ { "date": "2026-02-26", "label": "CARB adopts initial regulations" }, { "date": "2026-08-10", "label": "First Scope 1 & 2 reporting deadline" }, { "date": "2027-01-01", "label": "Scope 3 (value chain) disclosure begins" } ], "summary": "Requires GHG emissions disclosure for companies over $1B in revenue. CARB adopted rules in February 2026; the first Scope 1 & 2 deadline is 10 August 2026. An effective obligation in lieu of the federal SEC rule.", "sourceUrl": "https://ww2.arb.ca.gov/our-work/programs/corporate-greenhouse-gas-reporting", "relatedArticles": [ "california-sb253-ghg-disclosure-deadline-2026" ] }, { "id": "ca-sb261", "name": "California SB261 (climate-related financial risk)", "region": "United States", "scope": "Companies with >$500M revenue doing business in California", "status": "in_force", "appliesFrom": "2026-01-01", "keyDates": [ { "date": "2026-01-01", "label": "First climate financial-risk report (biennial)" }, { "date": "2025-11-18", "label": "9th Circuit pauses SB261 enforcement (litigation pending)" } ], "summary": "Requires biennial TCFD/IFRS S2-aligned climate-risk reports for companies over $500M revenue. Enforcement is paused by a November 2025 injunction (SB253 not affected).", "sourceUrl": "https://ww2.arb.ca.gov/our-work/programs/climate-related-financial-risk", "relatedArticles": [ "california-sb253-ghg-disclosure-deadline-2026" ] }, { "id": "issb", "name": "ISSB (IFRS S1 / S2)", "region": "Global", "scope": "Adopted into national regimes (adoption varies by country)", "status": "in_force", "appliesFrom": "2024-01-01", "keyDates": [ { "date": "2023-06-26", "label": "IFRS S1 & S2 published" }, { "date": "2024-01-01", "label": "National adoption/application begins" } ], "summary": "The global baseline for sustainability and climate disclosure. It underpins national standards such as Japan's SSBJ, the UK SRS, and Australia's ASRS.", "sourceUrl": "https://www.ifrs.org/groups/international-sustainability-standards-board/", "relatedArticles": [ "nbim-esrs-issb-single-report-2026" ] }, { "id": "tnfd", "name": "TNFD (Nature-related financial disclosures)", "region": "Global", "scope": "Voluntary adoption (uptake expanding)", "status": "in_force", "appliesFrom": "2023-09-18", "keyDates": [ { "date": "2023-09-18", "label": "Final recommendations (v1.0) published" } ], "summary": "A LEAP-approach disclosure framework for nature and biodiversity. Voluntary but increasingly adopted, seen as a precursor to regulation.", "sourceUrl": "https://tnfd.global/", "relatedArticles": [ "tnfd-nature-risk-disclosure", "tnfd-leap-disclosure-framework-guide" ] }, { "id": "china-esg-disclosure", "name": "China listed-company sustainability disclosure guidelines", "region": "China", "scope": "Constituents of SSE180, STAR50, SZSE100, ChiNext + dual-listed firms", "status": "in_force", "appliesFrom": "2026-04-30", "keyDates": [ { "date": "2024-05-01", "label": "Three exchanges' guidelines take effect" }, { "date": "2026-04-30", "label": "Deadline to publish FY2025 reports (first cycle)" } ], "summary": "Mandates sustainability reporting for major index constituents and dual-listed firms from FY2025 (first reports due by end-April 2026). The Ministry of Finance is developing unified standards.", "sourceUrl": "http://www.csrc.gov.cn/", "relatedArticles": [] }, { "id": "australia-asrs", "name": "Australia mandatory climate disclosure (ASRS / AASB S2)", "region": "Other", "scope": "Phased from the largest companies (Group 1 → 2 → 3)", "status": "in_force", "appliesFrom": "2025-01-01", "keyDates": [ { "date": "2025-01-01", "label": "Group 1 (largest) begins (reporting from FY2025)" }, { "date": "2026-07-01", "label": "Expands to Group 2" }, { "date": "2027-07-01", "label": "Expands to Group 3" } ], "summary": "Mandatory climate disclosure under AASB S2, aligned with ISSB. Affects resource and manufacturing supply chains.", "sourceUrl": "https://www.aasb.gov.au/", "relatedArticles": [] }, { "id": "uk-srs", "name": "UK Sustainability Reporting Standards (UK SRS)", "region": "Other", "scope": "UK listed/large companies (mandatory subject to FCA rules)", "status": "proposed", "appliesFrom": "2027-01-01", "keyDates": [ { "date": "2026-02-25", "label": "UK SRS S1/S2 published for voluntary use" }, { "date": "2027-01-01", "label": "Application to listed companies via FCA rules (expected)" } ], "summary": "UK standards aligned with ISSB, published for voluntary use in February 2026. Mandatory use awaits final FCA rules (expected autumn 2026), with application anticipated from January 2027.", "sourceUrl": "https://www.gov.uk/guidance/uk-sustainability-reporting-standards", "relatedArticles": [] }, { "id": "sbti", "name": "SBTi (Science Based Targets initiative)", "region": "Global", "scope": "Voluntary (effectively required via customer demands)", "status": "in_force", "appliesFrom": "2015-01-01", "keyDates": [ { "date": "2015-01-01", "label": "Initiative launched; validated companies grow" } ], "summary": "A voluntary target-validation framework that cascades to mid-caps and SMEs as an effective requirement through large companies' procurement demands.", "sourceUrl": "https://sciencebasedtargets.org/", "relatedArticles": [ "sbti-sme-program-japan-practical" ] }, { "id": "eu-ets-phase5", "name": "EU ETS Phase 5 revision proposal (2031–2040)", "region": "EU", "scope": "Power and industry under the EU ETS (steel, cement, etc.); includes proposed scope expansion for aviation and maritime", "status": "proposed", "appliesFrom": "2031-01-01", "keyDates": [ { "date": "2026-07-17", "label": "European Commission tables the revision (COM(2026) 616 final)" }, { "date": "2028-01-01", "label": "Market Stability Reserve intake halved from 24% to 12% (proposed)" }, { "date": "2031-01-01", "label": "Phase 5 begins; linear reduction factor 3.7% (proposed)" }, { "date": "2036-01-01", "label": "Linear reduction factor drops to 1.7% (proposed)" }, { "date": "2038-01-01", "label": "Free allocation ends, pushing full CBAM transition back from 2034 (proposed)" } ], "summary": "Tabled by the European Commission on 17 July 2026. Sets the Phase 5 framework (2031-2040) aligned with a 90% net GHG reduction by 2040 versus 1990. The linear reduction factor eases from today's 4.3% to 3.7% (2031-35) and 1.7% (from 2036), and free allocation is extended to 2038, delaying the full CBAM transition. From 2031 free allocation becomes conditional on a verified decarbonisation investment plan (80% on approval, 20% on demonstrated reductions). Creates an Industrial Decarbonisation Bank (EUR 100bn). **This is a proposal and may change during Parliament and Council negotiations.**", "sourceUrl": "https://climate.ec.europa.eu/document/download/c0b4ca8e-0e12-4b4e-9976-98c0b4224410_en", "relatedArticles": [] } ], "changelog": [ { "date": "2026-07-20", "note": "Added the EU ETS Phase 5 revision proposal (tabled 2026-07-17, COM(2026) 616 final). Noted the proposed delay to the full CBAM transition on the CBAM entry." } ] }