Global Sustainability & ESG Insights - April 2026

Asia

China

Sustainability Reporting Obligations for Listed Companies

By 30 April 2026, listed companies included in the SSE 180, STAR 50, Shenzhen 100 or ChiNext indices, as well as companies dual listed in China and overseas, are required to publish a FY 2025 Sustainability Report. Thereafter, such companies must publish a Sustainability Report annually by 30 April of the following year, but not earlier than the release of their annual report. The report must cover a broad range of environmental, social and governance topics, including greenhouse gas emissions (with Scope 3 disclosures where feasible), pollution control, resource use, workforce matters, supply chains, data security and anti-corruption. Companies must apply a double materiality assessment, assessing both the financial impacts of sustainability issues on the business and the impacts of the company’s activities on the economy, society and the environment. Any topic material under either test must be disclosed, with clear explanations for exclusions. The framework represents China’s first unified sustainability reporting regime for listed companies and forms part of a broader roadmap towards national standards by 2027 and a fully unified disclosure system by 2030.

For more information, view our flash update.

China Issues High‑Level Policy Opinions to Accelerate Energy Conservation and Carbon Reduction

On April 11, China released high‑level policy opinions on strengthening energy conservation and carbon reduction. The document sets out a comprehensive framework to support carbon peaking and carbon neutrality goals by embedding energy efficiency and emissions reduction across economic and social development. It calls for stricter control of energy intensive and high‑emission projects (including capacity control and phase-out of outdated capacity), accelerated industrial upgrading, expanded deployment of non‑fossil energy, and deeper electrification across industry, buildings, transport, digital infrastructure, and public institutions. The opinions also strengthen supervision through energy and carbon assessments, enhanced disclosure and enforcement mechanisms, and tighter approval processes.

Hong Kong

Guidance on Integrating Climate Risk into Capital Adequacy and Capital Planning

On April 9, the Hong Kong Monetary Authority published a document on good practices on integrating climate-related risks into internal capital adequacy assessment process and capital planning (ICAAP). The guidance highlights the importance of robust climate risk identification, including systematic mapping of physical and transition climate risk drivers, transmission channels, portfolio and operational exposures, and the use of climate risk heatmaps to assess impacts across time horizons and risk types. Good practice also includes incorporating climate risk stress testing, including tailored scenarios reflecting firm‑specific exposures, and systematically linking ICAAP outcomes to capital needs, capital allocations and business strategy.

Europe

European Parliament Adopts Regulation on Transport GHG Accounting

On April 28, the European Parliament formally adopted at second reading the CountEmissionsEU Regulation on the accounting of greenhouse gas emissions from transport services. The Regulation establishes a common EU‑wide methodological framework for calculating transport‑related GHG emissions where businesses choose to disclose this information or are required to provide it for contractual purposes. It forms part of a broader package of EU measures supporting climate neutrality by 2050, alongside the European Green Deal, the European Climate Law, and the Sustainable and Smart Mobility Strategy. The Regulation will now be published in the Official Journal and enter into force.

Consultation on Digital Product Passport Registry

On April 27, the European Commission launched a consultation on a draft Implementing Regulation setting out how the digital product passport registry will operate under the Ecodesign Regulation. The draft rules establish the technical and procedural framework for registering digital product passports, including the use of secure interfaces or APIs, verification of economic operators and value‑chain actors, and automated checks on mandatory data, data granularity, and qualified electronic signatures or seals. The registry is designed to apply across product categories and will include a semantic repository, logging functions, and proof‑of‑registration mechanisms. The consultation forms part of a broader set of implementing measures to operationalize the EU’s digital product passport system, which is intended to provide standardized digital access to product sustainability, circularity, and compliance information.

EU Institutions Agree “One Europe, One Market” Roadmap

On April 24, the EU Institutions agreed a joint “One Europe, One Market” Roadmap, committing to strengthen the Single Market and EU competitiveness by the end of 2027. The Roadmap sets out coordinated political commitments across five strategic building blocks: simplifying rules, deepening Single Market integration, strengthening trade, reducing energy prices while decarbonizing, and accelerating digital and AI transformation. It sets out proposed timelines for key sustainability‑related initiatives, including:

• European Grids package – Target for agreement: Q3 2026
• Proposal on addressing supply chain dependencies – Target for agreement: Q4 2026
• Industrial Accelerator Act – Target for agreement: End 2026
• Circular Economy Act – Target for agreement: Q3 2027
• Omnibus in the area of energy products – Target for agreement: Q4 2027
• Setting‑up of the energy efficiency framework – Target for agreement: Q4 2027
• Setting‑up of the renewable energy framework – Target for agreement: Q4 2027

European Commission Launches AccelerateEU Plan

On April 22, the European Commission presented AccelerateEU, a plan to address rising energy costs, reduce reliance on fossil fuel markets, and strengthen EU energy resilience. The initiative aims to accelerate the clean energy transition and deliver affordable energy for consumers and businesses. AccelerateEU is structured around five pillars:

• closer EU coordination on energy security measures
• protections for consumers and businesses facing price spikes
• faster deployment of homegrown clean energy through electrification and removal of regulatory barriers
• upgrading and expanding EU energy infrastructure
• boosting public and private investment in the clean energy transition

The plan builds on existing initiatives such as REPowerEU and the Citizens’ Energy Package.

Conditions for Destroying Unsold Apparel and Footwear Under Ecodesign Rules

On April 22, a Commission Delegated Regulation setting out the conditions for derogations from the ban on destroying unsold consumer products under the Ecodesign Regulation 2024 was published in the Official Journal. The prohibition applies to apparel, clothing accessories, and footwear listed in Annex VII from July 19, 2026, with an extended deadline of July 19, 2030 for medium‑sized enterprises. The Delegated Regulation allows destruction only in limited circumstances, including where products are dangerous, non‑compliant with EU law, defective beyond reasonable repair, infringe intellectual property rights, or are unsuitable for reuse or consumer use. Destruction is also permitted where donation or waste treatment options are unavailable. Businesses must retain documentation justifying destruction and provide it to authorities.

Delegated Regulation on ESG Ratings Regulation Adopted

On April 21, the European Commission adopted a Delegated Regulation setting out regulatory technical standards specifying how ESG rating providers must separate their rating activities from other business activities under the ESG Ratings Regulation. The measures establish safeguards aimed at preventing conflicts of interest, particularly where staff involved in ESG assessments also participate in other commercial activities. The Delegated Regulation will now be subject to scrutiny by the EU Institutions. The requirements are set to apply from July 2, 2026, aligning with the application date of the ESG Ratings Regulation.

Directive on Surface and Groundwater Pollution Published

On April 20, the Directive on surface water and groundwater pollution was published in the Official Journal. The Directive updates the Water Framework Directive, Groundwater Directive, and the Environmental Quality Standards Directive to align pollutant lists and controls with the latest scientific advice. It adds new substances and tightens limits for existing pollutants, and reclassifies six substances as pollutants of national concern where EU‑wide risks have been reduced through bans or restrictions. The amendments strengthen monitoring and control of emerging pollutants in surface waters and groundwater. Member States must transpose the changes into national law by December 21, 2027.

Worker Protection from Hazardous Chemicals Amendments

On April 15, the European Parliament adopted its position on the sixth revision of the Carcinogens, Mutagens and Reprotoxic Substances Directive, strengthening EU protections for workers exposed to hazardous chemicals. The proposal introduces updated occupational exposure limit values for substances used in the battery, steel, chemical and textile sectors, including cobalt compounds, polycyclic aromatic hydrocarbons, 1,4‑dioxane, welding fumes and isoprene. It also reinforces employer obligations to provide properly fitted personal protective equipment where exposure cannot be reduced below limits, alongside workers’ rights to regular breaks.

Amendment to Carbon Market Announced

On April 1, the European Commission announced a targeted reform to reinforce the European Union Emissions Trading System (EU ETS) by amending the Market Stability Reserve (MSR). The proposal would stop the automatic invalidation of allowances held in the MSR above the 400 million threshold. Instead, these allowances would be retained as a buffer to enhance market stability and predictability. The MSR will continue to adjust allowance supply by withdrawing surplus allowances or releasing them in times of scarcity. The proposal will now proceed through the legislative procedure, with a broader ETS review planned for July 2026.

Middle East

UAE

Abu Dhabi Launches Unified Hazardous Materials Guidelines

On April 9, the Abu Dhabi Hazardous Materials Management Centre introduced 11 comprehensive guidelines governing the safe and sustainable handling of hazardous materials across the emirate. Aligned with international best practices and based on the Globally Harmonized System Revision 11, the framework makes Abu Dhabi the first jurisdiction globally to apply this edition. The guidelines cover the full hazardous materials lifecycle, including import, transport, storage, manufacturing, recycling and disposal, as well as classification, labelling and safety data sheets. They aim to raise operational readiness, reduce incidents, improve compliance efficiency, and minimize environmental impact.

UK

Mandatory Digital Waste Tracking Launched

On April 24, the UK Government announced the launch of a mandatory digital waste tracking service to replace the existing paper-based system and published the draft The Digital Waste Tracking (England) Regulations 2026. Businesses handling permitted waste will need to create a real-time digital audit trail showing how waste is produced, moved and received. Phase 1 applies to around 12,000 permitted waste receiving sites from October 2026 in England, Wales and Northern Ireland (and January 2027 in Scotland), with wider rollout to over 100,000 operators over time.

Consultation Response on Reforming Environmental Permitting of Industrial Installations

On April 15, Defra published its response to the consultation on reforming environmental permitting (EP) for industrial installations in England. The UK Government confirmed plans to make the EP regime more supportive of innovation. Key measures include developing a regulatory sandbox and expanding exemptions to facilitate R&D trials, consulting in 2026 on more agile approaches to setting best available techniques, and considering wider application of integrated pollution control across industry. Further consultations will address proportionate regulation of emerging and complex activities, including hydrogen production, carbon capture, anaerobic digestion, alternative thermal treatment, battery manufacturing and energy storage.

Biodiversity Net Gain Regime for Nationally Significant Infrastructure Projects Confirmed

On April 15, Defra published its response to the consultation on implementing biodiversity net gain (BNG) for nationally significant infrastructure projects (NSIPs). BNG will apply to NSIP applications submitted on or after November 2, 2026, following a one‑year delay. The UK Government confirmed a cross‑sector approach to BNG for all NSIPs to reduce complexity. A core requirement of 10% biodiversity net gain will apply, with NSIPs required to use the statutory biodiversity metric. Only habitats within the BNG boundary will count towards the baseline calculation. Developers must submit an outline biodiversity gain plan at application stage, with updated or phased plans approved before construction, and any final shortfall secured before operation. Statutory instruments, biodiversity gain statements and updated guidance will be published in May 2026.

Consultation on Draft UK CBAM Emissions and Verification Regulations

On April 9, HM Revenue & Customs launched a consultation on the draft Carbon Border Adjustment Mechanism (Emissions and Verification) Regulations 2026, which will support implementation of the UK CBAM introduced under the Finance Act 2026. The CBAM is scheduled to take effect from January 1, 2027. The draft Regulations set out the framework for calculating direct embodied emissions in CBAM goods, alongside detailed requirements for monitoring, reporting and third‑party verification of emissions data, including rules for verifiers and accreditation bodies. The consultation is open until May 21, 2026.

Gender Equality Action Plans

On April 7, the UK Government published guidance for large employers on creating gender equality action plans. Six new guidance documents explain each stage of the process. Employers must analyze workforce data and engage employees to understand drivers of gender pay gaps and menopause‑related impacts, then select at least two actions from a prescribed list, including one addressing pay gaps and one supporting menopause. Each action plan must include a written narrative explaining chosen actions and how progress will be tracked, and be submitted via the gender pay gap reporting service. Employers are expected to monitor outcomes, assess effectiveness across different groups, and evaluate progress. While action plans can be produced voluntarily from April 6, 2026, they will become mandatory from Spring 2027.

US

New York State Senate Advances Earth Day Package Targeting PFAS, Clean Energy, and Public Health

On April 21, the New York State Senate advanced a wide‑ranging legislative package aimed at protecting public health, reducing environmental hazards, and accelerating the state’s clean energy transition. The package includes measures to address forever chemicals by prohibiting PFAS in products such as cosmetics and anti‑fogging wipes, expanding producer responsibility schemes, and strengthening oversight of harmful algal blooms. It also advances electrification and decarbonization initiatives, bans on high‑polluting fuel oil by 2030, expanded distributed solar targets, and rebates for electric landscaping equipment. This legislative package is yet to be finalized.

EPA Issues 2026 Interim Guidance on Destruction and Disposal of PFAS Materials

On April 20, the Environmental Protection Agency (EPA) issued updated Interim Guidance on the destruction and disposal of PFAS and PFAS‑containing materials in non‑consumer settings. The non‑binding guidance consolidates the latest scientific findings on available methods to remediate, dispose of, or destroy PFAS contamination. It focuses on three large‑scale technologies: thermal destruction, landfilling, and underground injection. It highlights the effectiveness, limitations, and uncertainties associated with each approach and is intended to support technology selection based on waste characteristics and release‑prevention considerations. The 2026 update builds on earlier EPA guidance issued in 2024.

EPA Extends TSCA PFAS Reporting Timeline

On April 13, the Environmental Protection Agency (EPA) finalized a targeted amendment to the Toxic Substances Control Act (TSCA) Section 8(a)(7) PFAS reporting rule, extending the reporting period by 60 days. This update provides regulated entities with greater certainty on timing and additional time to prepare submissions, while allowing EPA to complete its review of extensive stakeholder feedback on proposed scope changes published in November 2025. The extension does not alter the underlying obligation to report historic PFAS manufacture or import since January 2011. The April 2026 final rule sits alongside earlier interim extensions and forthcoming scope refinements expected later in 2026.

Action on Microplastics in Drinking Water and Human Health Announced

On April 2, the Environmental Protection Agency and the Department of Health and Human Services announced coordinated federal action to address microplastics contamination in drinking water and human health. For the first time, EPA has included microplastics as a priority contaminant group in its draft Sixth Contaminant Candidate List (CCL 6) under the Safe Drinking Water Act. Pharmaceuticals are also listed as a group for the first time, alongside PFAS, disinfection by‑products, chemicals, and microbes. Inclusion on the CCL does not impose regulation but signals enhanced research, funding, and potential future rulemaking.

Co-authored by Nathan Handoll (ESG Researcher in Knowledge).

Further reading and listening

EU Pay Transparency Directive

EU Legislation Roundup: March 2026

Ethnicity and disability pay gap reporting coming soon

EU: Empowering Consumers for the Green Transition Directive