2026 marks the turning point for EU sustainability regulation. For businesses operating in, exporting to, or supplying the EU market, the next 12-24 months are a key preparation window. Early action lowers future compliance costs, strengthens data quality, and protects you from regulatory and financial shocks.
In this blog, we outline the key sustainability compliance changes taking effect from 2026 that organisations should be aware of, and what practical steps can be taken now to stay ahead.
Digital Product Passports: A New Era of Product Transparency
From 2026, DPPs will begin rolling out under the Ecodesign for Sustainability Products Regulation (ESPR). DPPs are designed to collect and share data about a product and its supply chain across its entire lifecycle to advance sustainable product development and improve transparency. They offer strategic opportunities to increase consumer trust and transparency, strengthen sustainability credentials in the EU, and enhance product data management.
Who Needs to Comply?
DPPs will apply to all brands selling products in the EU, with the greatest impact on:
- Apparel and footwear
- Electronics and batteries
- Construction materials
- Furniture
- Chemicals
- Packaging
What is the Implementation Timeline?
- Regulation comes into effect = 2026
- Full implementation deadline = 2030
The Enistic team can map product and supply-chain data for you, and produce a complaint DPP today.
CSRD: Delays, Threshold Changes and What They Really Mean
The Corporate Sustainability Reporting Directive (CSRD) has undergone significant reform following widespread concerns about feasibility, cost, and competitiveness.
What has Changed?
- Mandatory reporting for many companies has been postponed to 2028/29.
- Reporting thresholds have been raised, narrowing the number of companies directly in scope.
These changes reflect the EU’s acknowledgment that initial CSRD expectations underestimated, including the scale and complexity of compliance, the difficulty of collecting reliable Scope 3 supply-chain data, and the strain placed on the auditors, consultants, and assurance providers.
By 2025, it became clear that many organisations were not operationally ready, and that SMEs were being indirectly pulled into reporting through value chain data requests.
Why the Delay?
- Cost of living pressures and inflation
- Energy security concerns
- Slowing economic growth
The delay does not mean that CSRD has been abandoned, nor has sustainability reporting become optional. Instead, it aims to avoid mass non-compliance and low-quality disclosures, while focusing mandatory reporting on large, systematically important companies.
What Businesses Should Do Now
The period between 2026 and 2027 is a preparation window, not a pause. Organisations that act early will benefit from:
- More mature and reliable ESG data
- Lower future assurance costs
- Stronger credibility with investors, customers, and regulators
Enistic supports businesses with CSRD readiness assessments, data gap analysis, and scalable reporting frameworks aligned to future ESRS requirements.
CBAM: From Reporting to Real Carbon Costs
The EU Carbon Border Adjustment Mechanism (CBAM) is one of the most significant compliance shifts coming into force.
CBAM applies to EU importers, but compliance relies on data from across the supply chain including manufacturers, exporters to the EU, and customs brokers and authorised representatives.
In 2026, supply-chain emissions reporting is no longer theoretical. It is directly linked to regulatory carbon pricing, customer compliance obligations, and financial exposure tired to EU ETS allowance prices.
Even companies exporting less than 50 tonnes of CBAM goods may still be asked for emissions data if their EU customers exceed the threshold overall.
Key Dates to Know
- Transitional phase = 1st October 2023 – 31st December 2025: Importers must report embedded emissions, but no payments are required.
- Definitive regime = from 1st January 2026: Reporting continues and CBAM certificates must be purchased.
- First annual declaration due = May 2027
What Businesses Should be Doing Now
To prepare for 2026 and beyond, organisations should:
- Review export portfolios to confirm which products are in scope
- Build robust carbon accounting systems, particularly for Scope 3 emissions
- Collect, verify, and securely store emissions data
- Prepare for potential third-party verification requirements
- Support EU importers with accurate and timely emissions reporting
- Identify emissions reduction opportunities to lower future CBAM costs
- Train internal teams on CBAM obligations and data requirements
The Enistic team can support importers and exporters build robust, verification-ready carbon data processes to support CBAM compliance and EU customer requirements.
Looking Ahead to 2026
While some sustainability regulations have been delayed, 2026 is not a year of inaction. With the right support, this preparation window can be used to reduce risk, control costs, and build long-term resilience. Enistic can help simplify sustainability compliance and ensure you are ready well before enforcement begins.
Get in touch and book a demo with our experts today!
