GLOBAL OUTLOOK ON SUSTAINABILITY
2026
EXPERT-LED, SCIENCE-DRIVEN, IMPACT-FOCUSED
STRENGTHENED AND STREAMLINED REGULATORY FRAMEWORKS
EU Advances Next Phase of Sustainability Reporting Reform
The EU continues refining its sustainability rules, with updates to CSRD, ESRS and the proposed “omnibus” law designed to consolidate sustainability reporting into a streamlined framework. These updates aim to align climate, biodiversity, supply chain and due diligence reporting, reducing duplication and improving clarity for global companies.
Updated UK Net Zero Strategy
Following legal pressure, the UK Government will publish a revised Net Zero Strategy including clearer delivery mechanisms, sector-level milestones and more detailed emissions modelling to satisfy statutory requirements.
UK ETS Expansion to New Sectors
The UK Government has confirmed the next major expansion of the UK Emissions Trading Scheme (UK ETS). Key phases include: Shipping: From 2026, operators calling at UK ports must purchase allowances (vessels >5,000 GT).
• Energy-from-waste: Mandatory monitoring from 2026; full compliance by 2028.
• Engineered removals (DAC/BECCS): Fully integrated into trading by 2029, making the UK one of the first countries to include negative emissions credits.
UK FCA to Regulate ESG Ratings
Newly passed legislation gives the FCA powers to regulate ESG ratings providers, bringing much-needed transparency and consistency to ESG scoring methodologies.
As disclosure regulations tighten globally, regulatory readiness remains uneven. The Corporate Sustainability Disconnect survey shows that only 15.63% of leaders feel very prepared for upcoming ESG requirements, and 31.25% are either unprepared or entirely unaware of what is coming.
This presents a growing strategic risk as clients, investors, and regulators demand verifiable, comparable sustainability information.
- The Corporate Sustainability Disconnect Survey by Astutis -
ENERGY TRANSITION ACCELERATION
Norway Launches the World's First Full CCS Value Chain
Norway has activated Long ship, the world’s first full-scale end-to-end carbon capture and storage (CCS) value chain. Northern Lights, its associated storage project, is already receiving CO₂ from industrial sites, with the capacity to scale beyond its initial 1.5 million tonnes per year. This marks one of the most significant advancements in CCS deployment to date.
UK Future Homes Standard Mandates Rooftop Solar From 2027
Starting in 2027, nearly all new-build homes in England must have rooftop solar panels and low-carbon heating, reducing household emissions and potentially saving homeowners ~£1,000 per year in energy costs.
Sources: ESG News, Edie.Net
LEVERAGING TECHNOLOGY FOR SUSTAINABILITY
AI Becomes Central to Europe's Climate Strategy
Despite its controversy, Google’s “AI Opportunity for Europe’s Climate Goals” report highlights that AI could cut 5–10% of global emissions by 2030, that's equivalent to the EU’s total annual emissions.
The report recommends three key actions:
• Investing in AI infrastructure
• Enabling cross-sector partnerships
• Ensuring responsible deployment
COMMUNITY-LED & NATURE-BASED SOLUTIONS
African Nations Move Toward Wildlife Conservation Bonds
The Global Environment Facility (GEF) aims for every African nation to issue wildlife conservation bonds by 2030, with at least 10 countries piloting the model by 2025. These bonds channel private capital into biodiversity protection, supporting ecosystem restoration and species conservation across the continent.
Sources: Reuters