UK: FCA publishes good and poor practice guidance for sustainability disclosure labels | UKGBC launches framework for nature-positive built environment | EU: EU Omnibus simplification package: directive amfinishing CSRD and CSDDD enters into force | European Commission proposes Industrial Accelerator Act | Commission launch call for feedback on Environmental Omnibus
UK
FCA publishes good and poor practice guidance for sustainability disclosure labels
The Financial Conduct Authority has published guidance on good and poor practice for firms applying labels under the Sustainability Disclosure Requirements (SDR) regime. The guidance covers all four sustainability labels: Sustainability Focus, Sustainability Improvers, Sustainability Impact, and Sustainability Mixed Goals. It is based on findings from the fund authorisations process and engagement with indusattempt since firms became able to utilize the labels in July 2024. It is intfinished to assist firms prepare pre-contractual disclosures, with reference to rules in the ESG sourcebook and the FCA’s anti-greenwashing guidance (FG24/3).
The FCA noted that the quality of applications has improved as familiarity with the requirements has grown, but that it has not always been clear whether firms meet the labelling requirements or whether disclosures accurately reflect fund investments. The guidance does not introduce new requirements but serves as a practical steer for firms seeking to apply or maintain a sustainability label.
Asset managers and fund operators applying or considering SDR labels should review the guidance carefully. The FCA’s findings signal continued scrutiny of how firms substantiate and communicate sustainability claims, and firms should ensure that their pre-contractual disclosures and fund documentation accurately reflect the investments held.
UKGBC launches framework for nature-positive built environment
The UK Green Building Council has launched its Framework for a Nature Positive Built Environment, developed with 33 organisations, to provide a consistent approach for the sector to halt and reverse nature loss.
The framework establishes a common definition of “nature positive”, covers the full asset lifecycle, and aligns with the Global Biodiversity Framework. It is intfinished for developers, designers, building owners, supply chain actors and public authorities, tarreceiveing the halting of biodiversity loss by 2030 and its reversal by 2050.
Businesses operating in the built environment (including developers, contractors and asset owners) should consider how it applies to their projects and portfolios. With nature-related disclosures increasingly expected by investors and regulators, early adoption of a consistent methodology will support both compliance readiness and stakeholder confidence.
Government publishes the final UK Sustainability Reporting Standards: UK SRS 1 and UK SRS 2
See environment section.
Houtilize of Lords debate on PFAS ‘forever chemicals’ in consumer products
See sustainable products section.
PackUK operational plan 2026-27: eco-modulation fees to apply in Year 2
See sustainable products section.
UK-EU SPS Agreement: government sets out scope and questions businesses what they required
See food section.
EU
EU Omnibus simplification package: directive amfinishing CSRD and CSDDD enters into force
Directive (EU) 2026/470, implementing the Omnibus I simplification package, has been published in the Official Journal of the European Union. It amfinishs the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD), with the aim of streamlining sustainability reporting and due diligence obligations for businesses.
The directive was published in the official journal on 26 February and came into force on 18 March. Member States have until 19 March 2027 to transpose its provisions into national law, with the exception of Article 4 on the level of harmonisation, which must be transposed by 26 July 2028.
Under the revised CSRD, the amfinished scope thresholds of 1,000 employees and €450 million net annual turnover are confirmed, as are the simplified reporting requirements and the voluntary nature of sector-specific reporting.
Under the revised CSDDD, the narrowed scope applying only to businesses with more than 5,000 employees and €1.5 billion net annual turnover is confirmed, along with the removal of the climate transition plan obligation and the capped penalties of 3% of worldwide turnover.
Businesses should ensure they are aware of which requirements apply to them and when they come into force. The publication of the directive marks a significant step in the EU’s efforts to reduce the regulatory burden on companies, and in-scope businesses should now review their reporting and due diligence frameworks in light of the confirmed thresholds and timelines.
European Commission proposes Industrial Accelerator Act
The European Commission adopted a proposal on 4 March 2026 for a regulation establishing a framework to accelerate industrial capacity and decarbonisation in strategic sectors, known as the Industrial Accelerator Act (IAA).
The proposal aims to strengthen Europe’s industrial base, with a tarreceive of raising manufacturing’s share of GDP to 20% by 2035, focapplying on energy-intensive industries such as steel, cement and aluminium, as well as net-zero technologies including batteries, solar photovoltaics and electrolysers, and the automotive sector.
The IAA introduces three key measures. First, it seeks to streamline and digitalise permitting procedures for industrial projects through a single digital one-stop-shop, with statutory deadlines and tacit approval at intermediate stages for energy-intensive decarbonisation projects. Second, it introduces tarreceiveed “Made in EU” and low-carbon requirements for public procurement and public support schemes across selected strategic sectors. Third, it introduces foreign direct investment safeguards for investments above €100 million in emerging sectors such as batteries, electric vehicles, photovoltaics and critical raw materials, to ensure such investment strengthens EU supply chains and supports job creation.
The proposal delivers on the recommfinishations of the Draghi report on EU competitiveness and will now proceed through the ordinary legislative procedure, requiring adoption by both the European Parliament and the Council before it can enter into force.
Businesses in energy-intensive and net-zero technology sectors should monitor the progress of the IAA through the legislative process, as it has the potential to significantly affect permitting timelines, procurement eligibility and foreign investment in strategic sectors. Companies with operations or supply chains in the sectors tarreceiveed by the foreign direct investment safeguards (including batteries, electric vehicles and critical raw materials) should consider how the proposed thresholds may affect their investment structures.
Commission launch call for feedback on Environmental Omnibus
On 12 March 2026, the European Commission invited feedback on its Environmental Omnibus which is a package of proposals aimed at achieving the EU’s environmental goals more efficiently and at lower cost, including by reducing administrative burdens on businesses, streamlining permitting processes and facilitating the transition to a clean and digital economy.
Key proposals include reducing administrative burden concerning extfinished producer responsibility (EPR). Notably it views to postpone the obligation to appoint an authorised representative under EPR schemes to 1 January 2035. This would apply to EPR across the battery, packaging, textile waste, single-utilize plastic and waste electrical and electronic equipment (WEEE) regimes.
The package also proposes to streamline environmental assessment and screening processes under the habitats, birds, environmental assessments and water framework regimes and to simplify requirements under the sustainable batteries, industrial emissions and waste regimes.
UK businesses that sell products into EU Member States and are currently navigating EPR obligations and those with operations subject to EU environmental assessment and emissions regimes should closely monitor these proposals. The Commission’s feedback period closes on 7 May 2026, and businesses with views on the proposals should consider taking this opportunity to engage. The aim is that this feedback will feed into the legislative debate.
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