Across Europe, sustainability regulation is moving from broad ambition to operational reality. Climate disclosure requirements, product traceability frameworks and circular economy initiatives are reshaping how companies measure environmental performance, manage supply chains and design products.
A new resource guide from Sphera, Sustainability 2026: The Boardroom Briefing, highlights the key regulatory milestones expected to affect industries operating in the EU this year. Regulators, investors and customers across sectors increasingly expect companies to provide credible environmental data across products, operations and value chains.
A Shift from Ambition to Implementation
For many years sustainability policy focused primarily on setting targets and frameworks. Today the emphasis is shifting toward implementation, verification and transparency.
Major frameworks such as the EU’s Corporate Sustainability Reporting Directive are raising expectations for environmental reporting. Organizations must conduct double materiality assessments, strengthen value chain data collection and prepare sustainability disclosures.
Consumer-facing regulation is evolving as well. The Empowering Consumers for the Green Transition Directive strengthens rules around environmental claims, sustainability labels and product durability information.
The Packaging and Packaging Waste Regulation introduces additional requirements around recyclability, labeling and substances used in packaging materials. Businesses placing packaged goods on the EU market will need stronger supplier data and improved documentation to remain compliant.
Together these developments illustrate a broader transformation. Sustainability is becoming embedded across product development, procurement and corporate reporting. Here’s what to expect across the industry landscape.
Building and Construction
The building and construction sector remains one of the most resource-intensive industries and faces growing expectations around lifecycle transparency. Policies such as the EU Taxonomy and the Energy Performance of Buildings Directive require evidence that projects will contribute to climate mitigation and energy efficiency goals.
The revised Construction Products Regulation raises these expectations further by requiring lifecycle assessments for relevant construction products. Companies must strengthen environmental data across building materials and components while preparing for increased transparency through emerging digital traceability initiatives such as Digital Product Passports (DPPs).
Manufacturing and Electronics
Manufacturers are experiencing a shift from “design for compliance” to “design for circular performance.” The Ecodesign for Sustainable Products Regulation introduces requirements related to durability, repairability and energy efficiency.
Central to this framework is the Digital Product Passport, which will store sustainability information about products and materials. The EU’s Right-to-Repair Directive will further encourage longer product lifecycles and reduced waste.
Food, Agriculture and Renewable Materials
In the food and agriculture sector, regulatory attention is increasingly focused on land use, biodiversity and supply chain transparency.
The EU Deforestation Regulation introduces geolocation-based traceability for commodities such as cocoa, coffee, palm oil and soy. Companies must demonstrate that products placed on the EU market are not linked to deforestation.
Emerging biodiversity frameworks and updated guidance for land-sector emissions are raising expectations for how companies measure and report impacts related to agriculture and natural resources. Organizations will need stronger traceability systems and improved Scope 3 reporting to support these evolving frameworks.
Chemicals
The chemicals sector is adapting to evolving regulatory requirements tied to emissions reporting and hazard classification.
The Carbon Border Adjustment Mechanism is entering a new phase that will increase the importance of product-level emissions data for imported materials. Updates to the EU’s Classification, Labelling and Packaging (CLP) regulation introduce new hazard categories, requiring companies to reassess safety documentation and communicate risks clearly to customers and regulators.
These developments may also influence product development decisions and portfolio strategies across the sector.
Automotive and Mobility
The automotive sector is operating within an evolving regulatory landscape shaped by emissions standards, carbon pricing and battery supply chain requirements.
The EU Battery Regulation introduces expectations related to carbon footprint reporting, recycled content and lifecycle traceability. Companies must prepare for battery passports that will track sustainability data across the battery lifecycle.
Updated emissions rules and supply chain considerations tied to the Carbon Border Adjustment Mechanism are also encouraging manufacturers to reassess sourcing strategies for key materials such as steel and aluminum.
Energy
Energy companies are preparing for new reporting and operational frameworks. The EU Methane Regulation introduces expectations for methane measurement, reporting and leak detection. At the same time, the expansion of carbon pricing through the EU Emissions Trading System is increasing attention on lifecycle emissions associated with fuels used in buildings and transportation.
Metals and Mining
For metals and mining companies, trade policy is increasingly aligned with climate policy. The Carbon Border Adjustment Mechanism introduces financial obligations for imported materials such as steel, aluminum and fertilizers, making emissions data an increasingly important factor in international trade.
Broader circular economy initiatives are expected to increase expectations around recyclability, traceability and responsible sourcing for critical minerals. Companies that invest early in emissions measurement and supply chain transparency will be better positioned to adapt to these developments.
Data as the Foundation for Sustainability
Across sectors, a common theme is emerging: sustainability performance depends on credible and interoperable data.
Frameworks such as CSRD, Digital Product Passports and the Carbon Border Adjustment Mechanism rely on consistent lifecycle information across products and supply chains. Strengthening sustainability data management and supplier engagement will be essential for long-term compliance and competitiveness.
Preparing for the Next Phase of Sustainability Regulation
As sustainability frameworks continue to develop across Europe, organizations that act early will have a clear advantage. Building reliable sustainability data systems, strengthening supplier engagement and aligning product strategies with emerging regulations can help companies stay ahead of compliance expectations.
Understanding how these regulations intersect will be critical for companies navigating compliance, supply chain transparency and product sustainability in the coming years Download the full Sustainability 2026: The Boardroom Briefing to explore the regulations shaping the year ahead. Contact our Senior Manager Consultant for additional guidance and support.
