The ESG landscape is shifting faster than most companies can keep pace with. Reporting rules are tightening in some markets and being simplified in others. Carbon markets are maturing. Clean transport policy is accelerating. Biodiversity risk is entering mainstream governance conversations for the first time. The August 2026 edition of ESG Perspective covers the regulatory and market developments that matter most for CFOs, sustainability leads, compliance managers, and board members operating across India and global markets.
Sustainability Reporting and Disclosure Updates
The most significant reporting development of the past month came from the European Commission. On 3 July 2026, the Commission adopted a delegated act setting out revised European Sustainability Reporting Standards (ESRS) under the Omnibus I simplification package. [1] These revised standards replace the previous ESRS Set 1 and reduce the number of mandatory disclosure data points substantially, from approximately 1,100 under the original framework to a significantly narrower set. [2]
A critical change affects how large companies interact with their supply chains. Under the revised ESRS, companies subject to the Corporate Sustainability Reporting Directive (CSRD) are now prevented from requiring supply chain partners with 1,000 or fewer employees to provide sustainability data beyond what is outlined in the new voluntary standard for smaller enterprises. [1] For businesses preparing multi-jurisdiction sustainability disclosures, this changes the compliance baseline and reduces the data collection burden on smaller suppliers. The revised standards are subject to a scrutiny period by the European Parliament and the Council of the EU, and companies with mandatory CSRD filing obligations from FY2027 should verify how the revised thresholds affect their reporting scope. [2]
South Korea moved two pieces of its sustainability reporting framework forward within 24 hours of each other. On 25 February 2026, the Financial Services Commission published a draft roadmap for mandatory ESG disclosures. The following day, the Korea Sustainability Standards Board (KSSB) approved and published the first set of Korean Sustainability Disclosure Standards, KSDS 1 and KSDS 2. [3] These standards correspond closely to the ISSB’s IFRS S1 and S2 frameworks, and are designed to be interoperable with the global baseline. [4] The proposed roadmap phases in mandatory reporting from 2028, starting with the largest KOSPI-listed companies, and expands to smaller firms in subsequent years. [5]
Japan formalised its own position in February 2026, when the Financial Services Agency made SSBJ disclosures legally mandatory for large companies listed on the Tokyo Stock Exchange Prime Market. [6] What makes Japan’s approach distinctive is its integration of sustainability disclosure into the yuho, Japan’s existing statutory filing infrastructure, treating sustainability information as financially material by default rather than as a separate voluntary report. [7] Japan is not simply adopting ISSB-aligned standards. It is building them into its digital reporting infrastructure from the start, with assurance requirements attached. [8]
Taken together, these three developments confirm a clear global pattern: the architecture of ESG disclosure is converging toward a common baseline, even as individual jurisdictions adjust their timelines and applicability thresholds.
Climate and Energy Policy Developments
Carbon farming has moved from pilot programmes into formal regulatory frameworks across several markets in 2026, creating new compliance pathways for companies in agriculture, forestry, and land use, as well as potential carbon credit opportunities. This edition also tracks regulatory developments in emissions standards, heating policy transitions, and coal market regulation across key jurisdictions. Each of these signals where regulatory pressure on carbon-intensive activities is intensifying and where transition timelines are becoming formalised obligations rather than aspirational targets. For risk teams and finance functions, these developments carry direct implications for asset valuations, capital planning assumptions, and supply chain exposure assessments.
Clean Mobility and Transport Policy in India
India’s clean mobility transition saw two significant regulatory developments in this reporting period.
The Delhi Electric Vehicles Policy 2026 was notified by the Government of the National Capital Territory of Delhi and came into force on 1 July 2026. [9] The four-year policy runs until 31 March 2030 and targets at least 30% fleet electrification across Delhi by that date. [10] The policy exclusively promotes pure Battery Electric Vehicles (BEVs) and excludes strong hybrids from fiscal incentives. Key provisions include a 100% road tax waiver for electric vehicles priced up to Rs 30 lakh, phased purchase incentives for two-wheelers and three-wheelers, scrapping incentives for older BS-IV and below vehicles, and a target of more than 30,000 public EV charging points by 2030. [11] The policy also commits to expanding battery swapping infrastructure and exploring time-of-day electricity tariffs to reduce charging costs.
A separate development exempts certain electric and alternative-fuel vehicles from transport permit requirements, removing a regulatory barrier that had previously slowed commercial fleet electrification across logistics and passenger transport sectors. Together, these two changes signal that India is using policy levers to shift EV adoption from an early-adopter phenomenon to a mainstream commercial reality.
Biodiversity and Nature Conservation
On 9 July 2026, the IUCN published a Red List update that placed deep-sea mining at the centre of a significant biodiversity risk finding. The assessment covered all 201 known hydrothermal vent mollusc species and found that 125 of them, representing 62%, face extinction risks directly linked to seabed mining activity. [12] More than a third of assessed species were classified as endangered or critically endangered. [13] The IUCN first adopted a moratorium resolution on deep-sea mining at its 2021 World Conservation Congress, and these findings arrive as the International Seabed Authority holds its annual meeting to discuss the commercial regulatory framework. [14] For companies with supply chains dependent on battery metals and critical minerals sourced from the ocean floor, this assessment adds to the growing governance and disclosure expectations around nature-related risk.
On the EU Deforestation Regulation (EUDR), the European Council formally adopted a revision in December 2025 that moves the enforcement deadline for large and medium operators to 30 December 2026, with micro and small operators receiving a further extension to 30 June 2027. [15][16] Commodities in scope include cattle, cocoa, coffee, oil palm, rubber, soya, and wood. For companies with supply chains in forestry, agriculture, or extractive sectors, December 2026 is now a hard compliance date, not a moving target.
What This Means for Businesses
The August 2026 ESG Perspective reflects a sustainability landscape moving in different directions simultaneously. European reporting requirements are being simplified while becoming more rigorous in Asia-Pacific. Carbon markets are deepening. Clean mobility policy is accelerating in India. Biodiversity is shifting from voluntary disclosure consideration to enforceable regulatory expectation.
For businesses, tracking which changes apply to your jurisdiction, your sector, and your value chain is now a prerequisite for sound governance, credible reporting, and continued access to capital markets. Pierag publishes ESG Perspective monthly to help businesses, sustainability professionals, and decision-makers stay informed without spending hours tracking regulatory updates across multiple jurisdictions.
References
[1] Cooley LLP. (2026, July 21). European Commission adopts revised EU CSRD reporting standards. Retrieved from https://www.cooley.com/news/insight/2026/2026-07-21-european-commission-adopts-revised-eu-csrd-reporting-standards
[2] Reporting Academy. (2026, March 9). South Korea defines its ESG reporting route. Retrieved from https://reporting.academy/en/pages/south-korea-defines-its-esg-reporting-route/
[3] Zevero. (2026, April 17). The KSDS: South Korea’s mandatory sustainability explained. Retrieved from https://www.zevero.earth/blog/south-korea-sustainability-reporting-ksds
[4] ESG News. (2026, March 5). South Korea moves toward mandatory ISSB-aligned climate disclosures for large KOSPI firms. Retrieved from https://esgnews.com/south-korea-moves-toward-mandatory-issb-aligned-climate-disclosures-for-large-kospi-firms/
[5] Socious. (2026, March 30). SSBJ vs ISSB in 2026: How Japan’s new mandatory standards differ from IFRS S1/S2. Retrieved from https://socious.io/blog/ssbj-vs-issb-japan-sustainability-standards-2026/
[6] EcoActiveTech. (2026, March 13). Japan mandates ISSB-aligned sustainability reporting for major listed companies. Retrieved from https://ecoactivetech.com/japan-issb-sustainability-reporting/
[7] XBRL International. (n.d.). Japan mandates digital sustainability reporting. Retrieved from https://www.xbrl.org/news/japan-mandates-digital-sustainability-reporting/
[8] TeamLease RegTech. (2026, July 2). Delhi Electric Vehicles Policy, 2026. Retrieved from https://www.teamleaseregtech.com/updates/article/57417/delhi-electric-vehicles-policy-2026/
[9] ClearIAS. (2026, July 10). Delhi EV Policy 2026. Retrieved from https://www.clearias.com/delhi-ev-policy-2026/
[10] EVTech News. (2026, August). Delhi EV Policy 2026 notified: 100% road tax waiver for EVs up to Rs 30 lakh. Retrieved from https://evtech.news/policy/delhi-ev-policy-2026-notified-100-road-tax-waiver-for-evs-30-lakh-indias-capital-bans-new-ice-2w3wsub-35t-registrations-from-20272028-offers-70b-incentives-and-plans-30000-charging-points-by-2030.html
[11] IUCN. (2026, July 9). From desert frog to deep-sea molluscs, remarkable species at risk: IUCN Red List [Press release]. Retrieved from https://iucn.org/press-release/202607/desert-frog-deep-sea-molluscs-remarkable-species-risk-iucn-red-list
[12] Ocean Economist. (2026, July). IUCN names deep-sea mining top threat to vent molluscs. Retrieved from https://oceaneconomist.com/articles/deep-sea-mining-vent-molluscs
[13] IUCN. (n.d.). Deep-sea mining [Issues brief]. Retrieved from https://iucn.org/resources/issues-brief/deep-sea-mining
[14] Council of the European Union. (2025, December 18). Deforestation: Council signs off targeted revision to simplify and postpone the regulation [Press release]. Retrieved from https://www.consilium.europa.eu/en/press/press-releases/2025/12/18/deforestation-council-signs-off-targeted-revision-to-simplify-and-postpone-the-regulation/
[15] European Commission, DG Trade. (2026). Delay until December 2026 and other developments in the implementation of the EUDR Regulation. Access2Markets. Retrieved from https://trade.ec.europa.eu/access-to-markets/en/news/delay-until-december-2026-and-other-developments-implementation-eudr-regulation
