What Are the Key ESG Disclosure Regulations Coming in 2025–26 Worldwide?

The next two years will be some of the most transformative in the history of sustainability reporting. With governments, regulators, and stock exchanges tightening rules worldwide, companies must prepare for a surge of new ESG disclosure obligations.

This article provides an overview of global ESG disclosure regulations 2025, along with the major international ESG reporting requirements that will shape corporate transparency through 2026. Businesses that adapt early will gain a major advantage in compliance readiness, investor trust, and long-term resilience.

 

Why ESG Disclosure Is Changing Rapidly?

 

Investors now expect consistent, comparable, and audited sustainability data. Regulators want clear climate-risk reporting. Consumers demand transparency. As a result, new ESG rules for businesses are emerging across every major market touching climate risk, social impact, governance accountability, and value-chain transparency.

The period 2025–26 marks a global shift from voluntary sustainability reporting to mandatory frameworks that carry legal and financial consequences for non-compliance.

 

1. European Union: CSRD and ESRS Become Mandatory

 

The EU is leading the world with the Corporate Sustainability Reporting Directive (CSRD), which begins full rollout in 2025 and continues expanding through 2026.

What CSRD requires:

• Detailed environmental, social, and governance disclosures

• Double materiality assessment (financial + impact)

• Mandatory alignment with the European Sustainability Reporting Standards (ESRS)

• Disclosure of Scope 1, 2, and 3 emissions

• Supply-chain transparency

• Assurance (audit) of ESG data

• Digital tagging for machine-readable reports

Non-EU companies with significant EU revenue will also fall under CSRD, making it one of the most influential international ESG reporting requirements.

 

2. Global Baseline Reporting: ISSB Standards Adoption Expands Worldwide

 

Over 40 jurisdictions are adopting or aligning with the International Sustainability Standards Board (ISSB) standards (IFRS S1 and IFRS S2). By 2026, ISSB will form the backbone of global climate-risk reporting.

Key elements:

• Governance, strategy, risk management, and metrics disclosures

• Climate-related financial risks (aligned with TCFD)

• Transition planning

• Industry-specific metrics

• Standardisation across global markets

Countries adopting ISSB standards include the UK, Canada, Australia, Japan, Singapore, Brazil, Nigeria, South Korea, and others.

 

3. United States: SEC Climate Disclosure Rule (Expected Full Implementation)

 

The U.S. Securities and Exchange Commission’s climate disclosure rules expected to be fully implemented by 2025 or early 2026 will require public companies to disclose:

• Climate-related financial impacts

• Climate-related governance and risk management

• Scope 1 and Scope 2 emissions; Scope 3 for certain companies

• Internal controls and verification processes

This is one of the most significant new ESG rules for businesses in North America.

 

4. United Kingdom: Mandatory TCFD and Transition Plan Requirements

 

The UK continues to expand its climate reporting obligations.

What businesses must prepare for:

• Mandatory TCFD-aligned disclosures

• Sector-specific climate reporting for financial institutions

• Transition Plan Taskforce (TPT) requirements: companies must publish credible pathways to net zero

By 2026, UK regulations will be closely aligned with ISSB standards.

 

5. Australia: New Climate Reporting Laws Coming Into Force

 

Australia’s government is introducing mandatory climate-risk and emissions reporting aligned with ISSB and TCFD.

Expected requirements:

• Large companies must report emissions and climate risks

• Phased implementation through 2025–26

• Assurance requirements for climate disclosures

This marks the most significant ESG regulatory reform in Australia’s history.

 

Read more: Global ESG Reporting & Compliance Guide 2025: Everything Companies Need to Know

 

6. Canada: Climate Disclosure for Federally Regulated Sectors

 

Canada is rolling out mandatory TCFD-aligned requirements for banks, insurers, pension funds, and large corporations.

Requirements include:

• Governance and risk disclosure

• Emissions reporting

• Transition planning and scenario analysis

Companies operating across North America will need to align reporting with both ISSB and regional expectations.

 

7. Asia-Pacific: Rapid Acceleration of ESG Regulation

 

Several APAC markets are implementing new frameworks:

Singapore

• Mandatory ISSB-aligned climate reporting for listed companies

• Enhanced assurance requirements

Japan

• Sustainability Standards Board of Japan integrating ISSB

• Strong focus on climate and value-chain risk

Hong Kong

• Mandatory ISSB-aligned disclosures for all listed companies

• Climate-transition expectations for financial institutions

China

• National ESG guidelines expanding toward standardised disclosures

• Green finance taxonomy alignment

 

8. Middle East and Africa: Growing Transparency Expectations

 

UAE

• Mandatory climate and sustainability reporting for large listed companies

• Net-zero transition focus

Saudi Arabia

• ESG reporting roadmap tied to Vision 2030

• Climate and governance disclosures increasing

Africa

• Nigeria and South Africa aligning with ISSB for climate-risk reporting

These jurisdictions are moving quickly toward global harmonisation.

 

9. Latin America: Strengthening Regional ESG Reporting Frameworks

 

Key markets including Brazil, Chile, and Mexico are embracing new reporting rules.

Brazil

• Adoption of ISSB standards

• Strong focus on deforestation and biodiversity metrics

Chile

• Mandatory climate-risk disclosures for listed companies

These reforms will expand further through 2026.

 

How Companies Should Prepare for 2025–26?

 

To stay ahead of these international ESG reporting requirements, companies should:

1. Conduct a global ESG compliance gap analysis

2. Map which ESG regulations apply across regions of operation

3. Strengthen data governance systems

4. Implement digital ESG reporting tools

5. Prepare for assurance and audit requirements

6. Coordinate finance, sustainability, risk, and legal teams

7. Communicate transparently to avoid greenwashing risks

Early preparation is essential, reactive compliance will no longer be enough.

 

The next two years will redefine ESG reporting worldwide. With a growing list of new ESG rules for businesses, harmonised global standards, and rising legal accountability, companies must adopt stronger, more transparent reporting practices.

Those that invest early in high-quality data systems, cross-functional governance, and credible disclosures will be best positioned to meet regulatory demands — and lead in the global sustainability landscape of 2025 and beyond.

 

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