EHS regulatory trends set to define 2026

As 2025 reaches its close, environmental, health, safety (EHS) professionals around the world face a distinctly different regulatory landscape from how it was at the start of the year.

From delayed EU sustainability reporting obligations to emerging artificial intelligence (AI) governance frameworks, this end-of-year update highlights the most significant developments shaping compliance strategies across global markets.

EU: Reporting timelines reshuffled

The European Commission’s “Omnibus I” simplification package has proposed delays to key sustainability directives, including the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD). This move effectively “stops the clock” on certain obligations, giving companies more time to prepare.

Additionally, the Carbon Border Adjustment Mechanism (CBAM) reporting requirements are being streamlined, and the European Deforestation Regulation (EUDR) has been delayed by one year. Large and medium-sized companies must now comply by 30 December 2025, with updated guidance and draft delegated acts released in April 2025.

Practical takeaways

Companies should revisit CSRD/CSDDD reporting timelines and adjust implementation sequencing n accordance with the new dates. It’s also important that companies have their supply chain due diligence systems for EUDR fully operational well before the new deadline.

Packaging and circularity: EU and APAC developments

The EU’s Packaging and Packaging Waste Regulation (PPWR) came into force on 11 February 2025, replacing the previous directive and covering the following changes:

• Expanding the scope of regulated packaging formats
• Introducing PFAS limits for food-contact materials
• Mandates harmonized labeling from 2028
• From 2026, producers must register with national authorities and comply with enhanced extended producer responsibility (EPR) rules.

Across the Asia-Pacific region, circular economy measures are also gaining momentum:

• South Korea raised mandatory recycling rates from 1 January 2025
• Japan revised recycling ratios for containers and packaging from 1 April 2025.
• India is set to implement draft EPR rules for packaging and sanitary products from 1 April 2026

Practical takeaways

Companies should focus efforts on aligning design, procurement, and labeling strategies with PPWR.

EPR reporting is going to require recyclability data, so building appropriate tracking systems is a must.

With so many products and components coming from the APAC region, businesses need to map their global packaging compliance frameworks against new and relevant APAC obligations.

United States: Federal deregulation vs. state-led action

In March 2025, the US Environmental Protection Agency (EPA) announced a deregulatory agenda that could impact greenhouse gas reporting, particulate standards, and air toxics rules. While most proposals are pending, the shift signals a potential retreat from federal climate regulation.

Meanwhile, states are stepping up:

• California’s climate disclosure regime is now in force
• Colorado and New Jersey have proposed bills requiring Scope 1, 2, and 3 emissions reporting
• Several states are advancing heat-illness prevention standards, outpacing federal OSHA efforts

Practical takeaways

Organizations based or operating in the US should prepare for further state-federal divergence, while maintaining a readiness for stringent state disclosure and worker protection rules.

Occupational exposure limits and asbestos: EU and APAC updates

The EU has adopted new directives lowering occupational exposure limits (OELs) for lead and diisocyanates, with national transposition required by 9 April 2026. Enhanced asbestos protections must be transposed by 21 December 2025.

There are also shifts across APAC countries to address chemical and substance risks:

• Japan proposed adding 78 substances to its chemical exposure list, effective October 2026
• Taiwan finalized stricter OELs for selected substances, effective January 2027
• Singapore’s Workplace Fairness Act 2025 introduces new equality and non-discrimination duties

Practical takeaways

Business are advised to track EU transposition deadlines closely, and budget for enhanced monitoring and training. It’s also advisable to integrate APAC exposure control obligations into multi-site compliance plans, wherever relevant.

Last but not least, AI is becoming increasingly central to EHS and ESG policy discussions, with regulators moving from voluntary guidelines to binding rules.

European Union: The world’s first AI act

The EU Artificial Intelligence Act entered into force on 1 August 2024, introducing a risk-based framework. Here are the key dates to remember:

• February 2025: Prohibitions on “unacceptable risk” AI systems and AI literacy requirements take effect
• August 2026: Most provisions apply in full
• August 2027: Extended deadline for high-risk AI systems embedded in products

Employers using AI in workplace decision-making must ensure staff AI literacy and compliance with strict governance rules for high-risk systems.

United States: State-led AI workplace regulation

Without a federal AI law, US states are introducing targeted measures:

• Texas’ Responsible AI Governance Act prohibits discriminatory AI but lacks disclosure requirements
• California’s Senate Bill 7 would ban reliance on AI for key employment decisions without human oversight and restrict predictive AI use
• Colorado and Illinois have legislation set to take effect in 2026, signaling a fragmented but fast-moving compliance environment

Asia-Pacific: Sector-specific safeguards

APAC jurisdictions are embedding AI oversight into broader legal frameworks, with a focus on the specific requirements related to different sectors:

• Hong Kong expanded its Building Energy Efficiency Ordinance to cover data centers, requiring registration and energy audits from September 2025 and 2026, respectively
• Japan adopted its first AI law, establishing a national AI strategy center and mandating cooperation with investigations and adherence to national principles

Practical takeaways

Many businesses are inevitably using AI in some form already. But how it’s being used may come under scrutiny with the continued introduction of regulation and safeguarding requirements. Companies should audit and map current and planned AI uses across operations to assess risk classifications under applicable laws, build appropriate AI literacy into staff training, and develop governance frameworks to ensure transparency, fairness, and regulatory readiness.

Conclusion

The regulatory shifts of 2025 underscore the need for agile compliance strategies. Whether navigating delayed EU sustainability rules, adapting to APAC circularity mandates, or preparing for AI governance, businesses must stay proactive and informed.

Cross-functional collaboration between legal, EHS, ESG, and technology teams will be key to maintaining resilience in a fast-changing global landscape — as will shared access to the latest regulatory intelligence and company compliance statuses.