Global Sustainability & ESG Insights - March 2026

Global

GRI Launches Consultation to Strengthen Corporate Pollution Reporting Standards

On March 30, Global Reporting Initiative (GRI) launched a public consultation to strengthen corporate reporting on pollution through updates to its standards. The initiative responds to widespread underreporting of pollution impacts, particularly air pollution, despite growing evidence of serious global health and environmental risks. The consultation covers three exposure drafts: expanded disclosures under GRI 305: Emissions for air pollution, a new GRI Topic Standard on soil pollution, and a major update to GRI 306: Effluents and Waste to broaden reporting on significant spills into comprehensive disclosure of preparedness, prevention and response to all critical incidents. Stakeholder feedback is open until June 8, 2026, with final pollution standards planned for 2027.

ISSB Consults on Updates to Three SASB Industry Standards and IFRS S2 Guidance

On March 26, the International Sustainability Standards Board (ISSB) launched a consultation on proposed amendments to three Sustainability Accounting Standards Board (SASB) Standards and amendments to the Industry-based Guidance on Implementing IFRS S2 Climate-related Disclosures. The proposed amendments cover Agricultural Products, Meat, Poultry & Dairy and Electric Utilities & Power Generators. The Exposure Draft aims to align SASB Standards with ISSB Standards, improving international applicability and decision‑usefulness for investors. This consultation will close July 24, 2026.

Asia

Singapore

Guidelines on Environmental Risk Management for Banks Published

On March 5, the Monetary Authority of Singapore released the Guidelines on Environmental Risk Management (Banks) – Transition Planning setting supervisory expectations for how banks should manage climate related transition and physical risks as part of their transition planning process. The Guidelines require banks to integrate climate related risks into governance, strategy, risk appetite and business planning, and to engage customers in a structured, risk proportionate way rather than indiscriminately withdrawing financing from higher risk sectors. Banks must enhance data collection, scenario analysis, and sector specific risk assessment, and adopt forward looking tools to identify transition risks, including stranded assets.

Guidelines on Environmental Risk Management for Asset Managers Published

On March 5, the Monetary Authority of Singapore (MAS) released the Guidelines on Environmental Risk Management (Asset Managers) – Transition Planning. These guidelines set out MAS’ expectations on climate related risk management for all fund management companies and real estate investment trust managers. They outline how asset managers should identify, assess and manage climate related risks across their business activities and investment portfolios through a structured transition planning process. In particular, asset managers are expected to manage climate related risks by embedding them into governance and business strategy, assessing portfolio exposures using sector and security level analysis, deploying forward looking tools such as scenario analysis, engaging investee companies through stewardship, and strengthening data, metrics and risk monitoring on a risk proportionate basis.

Guidelines on Environmental Risk Management for Insurers Published

On March 5, the Monetary Authority of Singapore released the Guidelines on Environmental Risk Management for Insurers – Transition Planning, which set out supervisory expectations for insurers on managing climate related transition and physical risks as part of a sound transition planning process. Under the Guidelines, boards and senior management must embed climate considerations into strategy, risk appetite and governance, and update approaches as data availability and best practice evolve. Insurers should use scenario analysis, stress testing, appropriate metrics and improved data to assess climate related exposures across underwriting and investment portfolios. They should adopt structured, risk proportionate approaches in engaging customers, asset managers and investees to encourage them to manage and mitigate climate related risks.

China

Ecological and Environmental Code Published

On March 12, China’s National People’s Congress adopted the Ecological and Environmental Code, effective August 15, 2026. The Code consolidates and updates existing environmental laws into a comprehensive framework covering pollution control, ecological conservation, and low carbon development. It expands environmental impact assessments to include strategic plans and greenhouse gas emissions, extends the limitation periods for environmental civil claims and administrative enforcement in respect of illegal acts that result in environmental pollution or ecological damage to five years, and increases penalties for serious violations.

Outline of the 15th Five-Year Plan Published

On March 13, the Outline of the 15th Five-Year Plan was Published. The Plan establishes key targets and policy priorities relevant to the mitigation of non‑CO₂ pollutants, including methane, HFCs, black carbon, tropospheric ozone and nitrous oxide. The Plan sets a project‑based target to build 30 million tonnes of CO₂‑equivalent mitigation capacity by 2030, focusing on coal mining, agriculture, waste management and chemical production. Broader climate‑related targets include reducing CO₂ intensity by 17%, raising non‑fossil energy to 25%, cutting energy intensity by around 10%, and improving air quality through reductions in PM2.5, NOx and VOCs. The Plan also strengthens carbon governance frameworks, expands emissions trading, promotes energy efficiency and low‑carbon technologies, improves cooling efficiency, and supports international cooperation.

Europe

Packaging and Packaging Waste Regulation Guidance Published

On March 30, the European Commission published new guidance to support the implementation of the Packaging and Packaging Waste Regulation. It aims to ensure consistent application across Member States and reduce compliance burdens for businesses. The guidance clarifies key concepts, including who qualifies as a manufacturer or producer, what constitutes packaging, and how rules apply to single‑use packaging restrictions, PFAS bans in food‑contact packaging, reuse targets, extended producer responsibility, and deposit‑return systems.

Guidance on Whole‑Life Carbon to Decarbonize and Circularize Buildings Published

On March 27, the European Commission published new guidance on life‑cycle approaches to decarbonizing buildings. The Document introduces and operationalizes the concept of “whole‑life carbon”, addressing emissions from design, material supply, construction, operation, renovation, and end‑of‑life stages. It highlights the importance of renovation, repurposing and better use of existing buildings.

Call for Interest on Upcoming Sustainability Reporting Voluntary Standard

On March 24, the European Financial Reporting Advisory Group (EFRAG) launched a call for interest in the European Union for large companies to join a voluntary sustainability reporting pilot. The pilot aims to test the upcoming voluntary reporting standard and gather feedback from early adopters. Later this year, the European Commission is expected to issue the VS as a Delegated Act, which will be available to companies outside the scope of the CSRD. The new VS will be based on the Voluntary Standard for SMEs issued by EFRAG in December 2024. The deadline to join the pilot is set for April 20, 2026.

Consultation on Post‑2030 Renewable Energy Framework Launched

On March 20, the European Commission launched a call for evidence and a public consultation to shape the EU’s post 2030 renewable energy framework, ahead of a legislative proposal due by the end of 2026. While renewables reached 25.2% of the EU energy mix in 2024, the Commission notes that meeting longer term objectives will require significantly faster deployment, deeper sector integration, and decarbonization across transport, heating, cooling and industry. The consultation closes on June 12, 2026.

Consultation on Post‑2030 Energy Efficiency Framework Launched

On March 20, the European Commission launched a consultation and call for evidence to inform the EU’s post 2030 Energy Efficiency Framework, ahead of a legislative proposal due in Q4 2026. The exercise seeks input on how energy efficiency rules should evolve to remain fit for purpose amid technological change. The future framework is expected to streamline existing rules, reduce administrative burdens, and improve implementation effectiveness. The consultation closes on June 12, 2026.

2040 Climate Target Published

On March 18, the Regulation setting a European Union intermediate climate target for 2040 was published in the Official Journal. It amends the European Climate Law to introduce a binding goal to cut net greenhouse gas emissions by 90% by 2040 compared to 1990 levels. The Regulation requires the Commission to review post‑2030 climate legislation, strengthen enabling measures for industry and households, and assess progress every two years. It also allows limited use of high‑quality international credits, strengthens the role of carbon removals, and postpones the start of emissions trading for buildings and road transport until 2028.

Industrial Accelerator Act

On March 4, the Industrial Accelerator Act was published. The Act sets out to strengthen Europe’s industrial base by increasing demand for low‑carbon, EU‑made technologies. The Act introduces targeted “Made in EU” and low‑carbon requirements in public procurement and support schemes across strategic sectors such as steel, cement, aluminum, cars and net‑zero technologies. It aims to raise manufacturing’s share of EU GDP from 14.3% to 20% by 2035, simplify permitting through a single digital process, and set conditions for major foreign investments to ensure they create EU value, jobs and technology transfer. The proposal will now be negotiated by the Parliament and Council.

Amendments to the Critical Raw Materials Act

On March 4, the European Council adopted its position on amendments to the Critical Raw Materials Act. The revised approach shifts responsibility for identifying large businesses using critical raw materials to the Commission and clarifies its authority to propose risk‑mitigation measures when supply disruptions arise. The proposal also adds stronger transparency requirements, requiring the Commission to inform member states and the EU Critical Raw Materials Board about identified businesses and vulnerabilities. It also endorses using digital product passports to meet information obligations.

Middle East

UAE

Law on the Quality and Safety of Buildings Enacted

On March 10, Dubai enacted Law No. (3) of 2026 on the Quality and Safety of Buildings, applying to all buildings across the emirate, including free zones and private development areas, regardless of construction date. The Law aims to enhance structural safety, sustainability, occupant comfort and urban quality, while reducing risks to life and property. Dubai Municipality is designated as the lead authority, responsible for inspections, digital building systems, sustainability standards, and enforcement.

UK

Government Publishes Response on Nuclear Framework and Regulation

On March 13, the Government issued its response to the Nuclear Regulatory Taskforce’s final report, confirming a major overhaul of the UK’s nuclear regulatory framework. The government agrees that the system has become fragmented and overly cautious and will implement all recommendations by 2027. Key environmental measures include, amongst others:

• strengthening Habitats Regulations Assessments
• introducing Environmental Outcomes Reports by December 2027
• implementing a mandatory Biodiversity Net Gain framework for NSIPs
• speeding up environmental permitting through risk‑based exemptions

Welsh Deposit Return Scheme

On March 25, the Welsh Government published a proposal on regulations to introduce a Deposit Return Scheme (DRS) from October 2027. The scheme will apply a refundable deposit to drinks containers, returned to consumers when empty containers are brought back for recycling or reuse. Uniquely within the UK, the Welsh DRS will include glass bottles, and the gradual rollout of reuse systems. The Government will now enter the next phase of implementation, including the appointment of the Deposit Management Organization to run the scheme and delivery of the detailed operational arrangements.

Mandatory Ethnicity and Disability Pay Gap Reporting for Large Employers

On March 25, the Government confirmed in response to a consultation, it will introduce mandatory ethnicity and disability pay gap reporting for employers with 250 or more employees. In its response, draft clauses for the future legislation are provided. The clauses propose reporting frameworks aligned with existing gender pay gap reporting, including mean and median pay gaps, bonus gaps, and pay quartiles. Ethnicity reporting will require a minimum binary comparison and, where thresholds permit, reporting across five broad ethnic groups, while disability reporting will use a binary disabled/non‑disabled comparison. Employers must also publish workforce composition data and non‑disclosure rates.

Natural Environment (Scotland) Act 2026

On March 12, the Natural Environment (Scotland) Act 2026, received Royal Assent. It introduces wide‑ranging reforms to strengthen biodiversity protection, environmental governance and land management in Scotland. The Act establishes a statutory framework for setting, monitoring and enforcing biodiversity targets, requiring the Scottish Ministers to set measurable targets, publish delivery statements, report regularly on progress and take corrective action if targets are missed. Additional provisions address marine protection and climate adaptation, forestry regulation and wildlife licensing.

Energy Performance of Buildings regime Update

On March 9, the Government published a response to its consultation on reforming the Energy Performance of Buildings regime in England and Wales. This covers what Energy Performance Certificates (EPCs) will measure and when they will be required. For domestic buildings, EPCs will move from a single headline rating to four headline metrics, supplemented by secondary energy demand and carbon metrics. Non‑domestic EPCs will retain a single carbon‑based headline metric. The government will maintain the 10‑year EPC validity period and require EPCs at the point of marketing. New‑style EPCs are targeted for October 2026, subject to legislation.

Welsh Digital Waste Tracking Regulations Introduced

On March 3, the Welsh Government laid draft Digital Waste Tracking Regulations. The requirements will introduce the first phase of a mandatory Digital Waste Tracking System in Wales. The Regulations require operators of permitted waste‑receiving sites to digitally record and submit information on controlled waste using approved software. Further phases will expand tracking across the full waste journey, supported by ongoing stakeholder engagement and guidance.

Guidance on Gender Pay Gap Action Plans Published

On March 4, the Government published guidance on workplace equality action plans, setting out how large employers can take structured action to reduce gender pay gaps. From April 2026, employers with 250 or more employees may voluntarily publish an action plan alongside their gender pay gap report, with plans becoming mandatory from spring 2027, subject to secondary legislation. Action plans must include at least one measure to address the gender pay gap and one to support menopause. Action plans will be published on the gender pay gap reporting service, with further practical guidance issued in April 2026.

US

Renewable Fuel Standard Published

On March 27, the US Environmental Protection Agency (EPA) finalized the Renewable Fuel Standard (RFS) Set 2 rule, setting renewable fuel volume requirements for 2026 and 2027. The rule prioritizes US‑produced ethanol, biodiesel, and renewable diesel. The rule removes renewable electricity from RFS eligibility, partially reallocates prior small refinery exemptions, and announces reduced future RFS credit value for foreign fuels starting in 2028. 

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

Further reading and listening

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