The quarterly regulation update from Schroders outlines the key developments in sustainability regulation globally. The primary focus is on sustainability policy milestones as well as consultations that will result in rules shaping the investment industry in the future. Sara Scanlan – Business Analyst, Public Policy tells us more.
At Schroders, we believe that working with peers and policymakers on sustainability issues is an important activity. As part of our wider public policy engagement, we regularly respond to public consultations both directly and working with investor groups, contributing to responses submitted by industry bodies such as the Investment Association and European Fund and Asset Management Association (EFAMA).
Where relevant, we flag consultations to which we have contributed or plan to contribute directly.
In the UK, this update relates primarily to ESG reporting and governance (rather than sustainability regulation specifically), but remains an important development for Schroders and our clients given its implications for disclosure expectations and stakeholder scrutiny.
It also reflects increasing policy focus on children’s online safety and digital wellbeing as a material social/ESG risk, supporting clearer, proportionate expectations for age-appropriate design, transparency and enforcement.
In the EU, the European Commission has launched a consultation on draft simplified ESRS and accompanying voluntary standards (V-ESRS) to refine CSRD sustainability reporting, retaining double materiality while clarifying materiality assessment, value chain boundaries and relief provisions, with implications for how companies (including financial institutions) structure disclosures, report emissions and manage value chain data ahead of expected voluntary application from 2027 and mandatory adoption from 2028.
More details on these and other global developments can be read in the full Schroders report here: Global developments in sustainability policy and regulation Q2 2026
Main image: ESG, earth, skyline, jaime-serrano-ziDTXxEO_Vo-unsplash
