Sustainable products
In the EU, new rules under the Right to Repair Directive will come into force on 31 July 2026, whereby products will need to meet new repairability requirements and processes for product warranties may need to be reviewed. New secondary legislation under the Ecodesign for Sustainable Products Regulation is expected soon in relation to the product priorities identified last year, including textiles (by 2027) and furniture (by 2028). New rules also come into force under the Empowering Consumers for the Green Transition Directive by 27 September 2026 whereby consumers must be given pre-contract information about the sustainability of the product. The EU has also announced plans to introduce a new Circular Economy Act in Q4 2026 to address e-waste and measures regarding the single market for waste, secondary raw materials and their use in products. In the UK, the Product Regulation and Metrology Act paves the way for regulations similar to the EU in respect of reducing or mitigating products' environmental impacts.
Packaging
In the EU, the Packaging and Packaging Waste Regulation will repeal and replace the Packaging Waste Directive on 12 August 2026. This aims to reduce packaging waste by setting binding re-use targets, restricting certain types of single-use packaging, and requiring economic operators to minimise packaging. In the UK, the Producer Responsibility Obligations (Packaging and Packaging Waste) (Amendment) Regulations 2025 were introduced in December 2025 and took effect from 1 January 2026. These introduce minor technical and clarifying changes to the original regulations that were established in 2024.
Greenwashing
In the EU, new rules on greenwashing under the Empowering Consumers for the Green Transition Directive will start on 27 September 2026. This includes a ban on unsubstantiated generic environmental claims (such as "environmentally friendly", "eco-friendly", "green", "biodegradable" and "carbon friendly"), claims based on greenhouse gas offsetting, overly-wide environmental claims (for example about an entire product when it only concerns an aspect) and misleading sustainability labels. We are still awaiting news on the future of the Green Claims Directive which has been proposed to regulate the substantiation and communication of green claims.
In the UK, the ASA and CMA may increasingly turn their attention to greenwashing, with the CMA now having new enforcement powers under the Digital Markets, Competition and Consumers Act to fine companies for breaches of consumer law including misleading advertising such as greenwashing. Guidance is set out under the CMA's Green Claims Code. We reported on the ASA's rulings about three fashion retailers' adverts about sustainability in our article here.
The new failure to prevent fraud offence (under the Economic Crime and Corporate Transparency Act) means that companies could also now be held criminally liable for greenwashing, unless they can demonstrate reasonable procedures to prevent misleading claims and statements.
Sustainability, due diligence and disclosure
In the EU:
- Under revisions to the Corporate Sustainability Reporting Directive, only EU undertakings with more than 1,000 employees and €450 million annual turnover must report, using simplified European Sustainability Reporting Standards. Non-EU groups report only if they generate more than €450 million annual turnover in the EU, with an EU subsidiary/branch exceeding €200 million turnover.
- Under revisions to the Corporate Sustainability Due Diligence Directive, simplified due diligence obligations apply from 2029 for EU undertakings with more than 5,000 employees and annual turnover of over €1.5 billion, and for non-EU companies above the same turnover threshold in the EU. Transition plans are no longer required.
- Application of the Deforestation-free Products Regulation is delayed until 30 December 2026 at the earliest. Full due diligence is only required of large organisations that place regulated commodities/derived products on the EU market for the first time.
- Applicable from December 2027, the Forced Labour Products Regulation prohibits products made with forced labour being imported into/sold in/exported from the EU market.
In the UK:
- The Government has released exposure drafts of new UK Sustainability Reporting Standards, closely aligned to ISSB standards. Results of consultation will inform the Government's decision to endorse the draft standards and make them available for voluntary use. A separate decision will be made regarding mandatory reporting.
- The Government is also consulting on how to implement its manifesto commitment to require UK-regulated financial institutions and large companies to develop and implement credible transition plans, aligned with the 1.5°C goal of the Paris Agreement.
- The Government is considering legislative options to strengthen the Modern Slavery regime, including introduction of mandatory human rights and environmental due diligence measures, and a new "failure to prevent" obligation in relation to forced labour.
- Requirements for large businesses to establish and implement due diligence in relation to use of forest risk commodities, similar to EU regulations, remain subject to secondary legislation.