Environmental concerns are taking centre stage, no matter the industry, size of organisation or jurisdiction, forcing businesses to acknowledge their impact and make improvements. To address the growing environmental challenges, governments, organisations, and communities have introduced various sustainability regulations and standards to comply with. In this 101 guide, we will delve into the latest sustainability regulations, guides and standards, exploring what they mean for you.

Sustainability is more than a buzzword

Sustainability refers to the practice of ensuring that our actions today do not compromise the well-being of future generations. This involves considering the environmental, social, and economic impacts of our activities. The importance of sustainability is evident in several key areas:

1. Environmental Preservation: Sustainability regulations aim to reduce negative environmental impacts, such as greenhouse gas emissions, pollution and habitat destruction.

2. Social Responsibility: Sustainable practices promote ethical and socially responsible business behaviour, which can enhance an organisation's reputation and social impact.

3. Economic Viability: Sustainable practices can lead to cost savings through energy efficiency, waste reduction and resource optimization.

4. Legal Compliance: Non-compliance with sustainability regulations can lead to legal repercussions and fines, making it essential for businesses to stay informed about the latest regulations.

Latest Sustainability Regulations and Standards

As mentioned above, new regulations, standards and guidelines are coming thick and fast to help curb our carbon emissions. Findings from ESG Book, a data management company, reveal a 155% surge in ESG regulation in the last ten years. 

Below we have gathered some of the latest and most important sustainability regulations and standards to be aware of: 

*Please note this list was last updated in April 2025. It is not exhaustive and we welcome any key items that we may have missed.

EU Corporate Sustainability Due Diligence Directive (CSDDD) - Adopted in 2024, the CSDDD introduces mandatory due diligence obligations for large companies, requiring them to identify, prevent, and mitigate adverse human rights and environmental impacts across their operations, subsidiaries, and value chains. The directive will phase in starting in 2027 and aims to foster sustainable and responsible corporate behaviour across businesses operating within or selling to the European Union. Learn more

EU Taxonomy Regulation

The EU Taxonomy is a classification system that sets clear criteria for what constitutes an "environmentally sustainable" economic activity. Designed to combat greenwashing and direct investment toward truly sustainable projects, the Taxonomy helps financial institutions, investors, and companies make better-informed decisions aligned with the EU’s climate and environmental goals. Learn more

Taskforce on Nature-related Financial Disclosures (TNFD)

Following the success of the TCFD for climate-related risks, the TNFD provides a framework for organisations to report and act on evolving nature-related risks and opportunities. It recognizes that biodiversity loss and ecosystem collapse represent financial risks and aims to integrate natural capital into mainstream risk management. TNFD recommendations were finalized in late 2023 and now organisations are beginning adoption. Learn more

EU Omnibus Directive

Formally known as Directive (EU) 2019/2161, the Omnibus Directive modernizes EU consumer protection rules, including critical new provisions to combat misleading green claims. Businesses must now ensure that any environmental claims made in their marketing are verifiable and evidence-based, helping address the growing concerns around greenwashing. Learn more

EU Green Claims Directive (proposed - expected to be adopted in 2025)

Building on the foundations set by the Omnibus Directive, the Green Claims Directive, once adopted, will impose strict requirements for substantiating and communicating voluntary environmental claims. Companies making green claims must provide credible, scientific evidence and undergo independent verification, ensuring consumers are not misled. Learn more

California Climate Accountability Package

In the United States, California has introduced landmark climate disclosure laws (Senate Bills 253 and 261). These new rules require large companies doing business in California to publicly disclose their Scope 1, 2, and 3 greenhouse gas emissions, as well as report on their climate-related financial risks. This raises the bar for corporate transparency in one of the world’s largest economies. Learn more

Biodiversity Beyond National Jurisdiction (BBNJ) Treaty

Often referred to as the "High Seas Treaty," the BBNJ agreement, adopted under the United Nations in 2023, focuses on the conservation and sustainable use of marine biodiversity in international waters. It introduces new rules on environmental impact assessments and the fair sharing of marine genetic resources, marking a major step forward for ocean sustainability. Learn more

Paris Agreement and Sustainable Development Goals (SDGs) - While not new or regulations per se, the following foundational agreements continue to underpin modern sustainability efforts.

• The Paris Agreement, adopted in 2015, is a landmark international accord that aims to limit global warming to well below 2 degrees Celsius above pre-industrial levels. It requires countries to regularly update their climate action plans and make efforts to reduce greenhouse gas emissions. Learn more
• SDGs - The United Nations has established 17 Sustainable Development Goals, covering areas like poverty, hunger, clean water, and climate action. These were a replacement for the previous Millennium Development Goals (MDGs) which had 2015 as their target date. Organisations worldwide are encouraged to align their practices with these goals. Learn more

Global Reporting Initiative (GRI) - An autonomous international body that facilitates uniform reporting, thereby assisting organisations in satisfying stakeholder demands for comparable data. The GRI Standards are designed to empower organisations to produce comprehensive reports concerning their influence on sustainable development. Learn more

ISO 14001 - An internationally recognized standard for Environmental Management Systems (EMS). It provides a framework that organisations can follow to effectively manage their environmental responsibilities and minimise their environmental impact. ISO 14001 helps organisations establish policies, processes, and objectives for environmental performance, leading to improved environmental sustainability, legal compliance and a positive reputation. Learn more

REACH Regulation - REACH, or Registration, Evaluation, Authorization, and Restriction of Chemicals, is a European Union regulation designed to ensure that the chemicals produced and sold in the EU are safe for human health and the environment. It places the responsibility on manufacturers and importers to provide detailed information about the properties and potential risks of chemicals, with the aim of reducing the use of hazardous substances and promoting the safe use of chemicals. Learn more

Dodd-Frank Act Section 1502 - Also known as the Conflict Minerals Rule, requires companies to disclose their use of conflict minerals (tin, tantalum, tungsten, and gold) in their products. The goal is to prevent the sourcing of minerals that may be funding armed conflict in certain regions, particularly in the Democratic Republic of the Congo. Companies subject to this rule must conduct due diligence, report on the origin of these minerals, and, if necessary, take steps to mitigate the use of conflict minerals in their supply chains. Learn more

Corporate Sustainability Reporting Directive (CSRD) - A European Union regulation aimed at enhancing sustainability reporting by companies. It expands on existing reporting requirements and is set to replace the existing Non-Financial Reporting Directive (NFRD). CSRD mandates that certain large companies must disclose information on environmental, social, and governance (ESG) aspects in their annual reports, ensuring greater transparency and consistency in sustainability reporting across the EU. Learn more

US Securities and Exchange (SEC) climate disclosure rule - Designed to improve climate-related reporting by public companies. It requires these companies to disclose information about the impact of climate change on their businesses, including risks, opportunities, and the steps they are taking to address these issues. The rule aims to enhance transparency and provide investors with consistent and meaningful information to make informed investment decisions while addressing the growing importance of climate-related issues in financial markets. Learn more

International Sustainability Standards Board (ISSB) - The ISSB Standards empower companies and investors to lay a consistent groundwork for disclosing sustainability information in the global financial arena. This framework can be augmented by regional prerequisites to bolster the global foundation. Numerous countries across the globe have expressed their intent to adopt this new standard. Learn more

Carbon Pricing: Some regions have implemented carbon pricing mechanisms, such as carbon taxes or cap-and-trade systems, to encourage businesses to reduce their carbon emissions. For example, the EU’s Emissions Trading System (ETS), Canada’s Carbon Tax, or the U.S. IRA incentives. Learn more

Alliance for Water Stewardship (AWS) Standard - A global framework for organisations to responsibly manage and protect water resources. It sets out a structured approach for assessing and addressing water-related risks and opportunities. The AWS Standard helps companies and communities in improving water management by focusing on sustainability, social responsibility, and economic viability. It emphasises collaborative efforts among stakeholders to achieve sustainable water use and promotes transparency and accountability in water stewardship practices. Learn more 

Sustainable Finance Disclosure Regulation (SFDR) - a European Union regulation that aims to improve transparency in sustainable finance. It requires financial market participants and financial advisors to provide more detailed and consistent information about the environmental and social impact of their financial products and services. SFDR is intended to help investors make informed decisions by ensuring they have access to clear and standardised information about the sustainability characteristics of investment products. Learn more

Sustainability is no longer a choice but a necessity for businesses and governments worldwide. The latest sustainability regulations and standards serve as guidelines to ensure that we transition to a more sustainable future. As these regulations continue to evolve, staying informed and taking proactive measures will be crucial for organisations seeking to thrive in the increasingly eco-conscious world and ERM Libryo can help. 

Automated tracking for sustainability regulations

ERM is the world’s leading sustainability consultancy and owner of the ERM Libryo digital regulatory compliance platform that ensures you know the regulations applicable to your business and each individual operation. ERM and ERM Libryo can support your teams on their sustainability journey.

Adhering to sustainability regulations and standards can provide businesses with a competitive advantage, cost reductions, legal compliance, increased market access and better investor and stakeholder relationships. Find out more about the ERM Libryo platform and its benefits here.

FAQs

1. How do sustainability regulations impact businesses?

   Sustainability regulations influence various aspects of business operations, including environmental impact, social responsibility, economic viability, and legal compliance. Understanding and adhering to these regulations is crucial for maintaining competitiveness and reputation in the market.

2. What are some key sustainability standards and regulations to be aware of?

   Familiarize yourself with pivotal regulations like the Paris Agreement, Sustainable Development Goals (SDGs), ISO 14001, and the EU Green Deal, among others. These standards outline requirements for mitigating environmental risks, promoting ethical practices, and achieving long-term sustainability goals.

3. How can businesses stay informed and compliant with evolving sustainability regulations?

   Utilize automated tracking solutions like ERM Libryo to stay up-to-date with regulatory changes and ensure comprehensive compliance across all operations. Partnering with sustainability experts like ERM can further enhance your organisation's ability to navigate complex regulatory landscapes effectively.