Regulatory Trends in ESG: 12–18 Month Outlook
This guide was published on 4th August, 2026. Further regulatory developments may have occurred after publication. To keep up-to-date with the latest compliance news, sign up to our newsletter.
A practical, 12–18 month roadmap for ESG teams who need to move fast, without losing control of compliance.
Regulatory Trends in ESG: 12–18 Month Outlook
The past 18 months brought a significant shift in regulations addressing corporate sustainability. Across 2025 and 2026, many jurisdictions postponed initial reporting and due diligence timelines, simplified frameworks, and introduced legislative guardrails to ease the administrative burden on businesses.
In mid 2026, as the dust slowly settles, it becomes increasingly clear that, despite these adjustments, corporate sustainability is here to stay. The adaptation of the ISSB Standards IFRS S1 and S2 is advancing globally, while some markets, including South Korea, are even on track to expand their sustainability reporting obligations. In the EU, the scope of the CSRD reporting and CSDDD due diligence obligations is finally clear, and, despite the new value chain cap, many smaller companies are preparing for ESG and due diligence data requests by larger companies. At the same time, new ecodesign requirements for sustainable products and the EU ban on products made with forced labor are approaching rapidly.
In this fragmented landscape, superficial statements and outdated spreadsheets are liabilities. Modern businesses need scalable, audit-ready compliance software that cuts through differing requirements, satisfies demanding enterprise customers, and turns regulatory complexity into a clear competitive advantage.
(Source: C2P by Adherent)
This Guide Covers
- The regulatory topics affecting ESG, banded by importance
- Where CSRD reporting and CSDDD due diligence scope landed after the postponements and simplifications of 2025 and 2026
- How adoption of ISSB Standards IFRS S1 and S2 is progressing globally, including markets expanding their obligations
- The EU ban on products made with forced labour, and the ecodesign requirements approaching
- A world map of ESG regulatory density
- 14 key regulations expected to affect your business over the next 12-18 months
