Horizon – News And Trends In Sustainability Law - Securities - Tunisia

ARTICLE 26 October 2026

Horizon – News And Trends In Sustainability Law

The European Union has published revised European Sustainability Reporting Standards introducing simplification measures, while the UK proposes major reforms to corporate sustainability reporting and the FCA adopts a comply-or-explain approach for ISSB-aligned disclosures. Meanwhile, Jordan launches mandatory ESG practices for listed companies, and global standards organizations update their frameworks for emissions tracking and verification.

DLA Piper

Welcome to Horizon, DLA Piper’s monthly bulletin reporting on late-breaking legislative and policy developments in sustainability. Our aim is to scan the litigation, enforcement, and regulatory horizon to help inform business decisions.

Deadline alert

US: California. The California Air Resources Board (CARB) has postponed the deadline for reporting Scope 1 and Scope 2 disclosures under SB 253, the state’s greenhouse gas (GHG) emissions disclosure law, from August 10 to November 10.

EU. The Empowering Consumers for the Green Transition Directive (ECGTD) came into application on September 27. Learn more in our August issue.

EU. The reporting deadline for large and medium-sized operators and downstream traders under the EU Deforestation Regulation (EUDR) is December 30; for micro and small enterprises, the deadline is June 30, 2027.

EU. Full enforcement of the EU Forced Labor Regulation (EUFLR) begins on December 14, 2027.

EU. The first annual declaration and surrender under the EU’s Carbon Border Adjustment Mechanism (CBAM) is September 30, 2027.

UK. Starting November 2, biodiversity net gain (BNG) will be mandatory for nationally significant infrastructure projects (NSIPs) in England. NSIP developers applying for a development consent order on or after that date will need to deliver at least 10 percent BNG.

UK. The UK’s CBAM takes effect on January 1, 2027, with the first return and payment due by May 31, 2028.

Disclosures and voluntary reporting

EU publishes final revised European Sustainability Reporting Standards. On September 21, the revised European Sustainability Reporting Standards (ESRS) were published in the Official Journal of the European Union. The regulation formally amends the existing ESRS framework and introduces a range of simplification measures, including a reduction in reporting data points, clearer guidance on materiality, a stronger distinction between mandatory and voluntary disclosures, and improved interoperability with international sustainability reporting frameworks. The publication in the Official Journal confirms the final legal text following the Commission's adoption of the revised standards in July 2026. The amendments are intended to reduce reporting complexity and compliance costs while maintaining decision-useful sustainability information for investors and other stakeholders. The revised ESRS are expected to apply to financial years beginning on or after January 1, 2027.

UK proposes major overhaul of corporate sustainability reporting requirements. On September 7, the government of the United Kingdom launched a consultation on reforms to the UK corporate reporting framework, including proposals to simplify non-financial reporting requirements and refocus company disclosures on financially material information. The consultation forms part of a broader review of the strategic report requirements under the Companies Act 2006. A key feature of the consultation is the proposal to replace certain existing topic-specific reporting requirements with a streamlined set of baseline disclosures. Explicit reporting requirements relating to environmental matters, employees, diversity, social responsibility, communities, human rights, and anti-corruption could be removed, with disclosure instead driven by financial materiality. The consultation also explores changes to the scope of non-financial reporting obligations, including the introduction of a new “very large” company threshold. Together, the proposals signal a shift away from prescriptive environmental, social, and governance (ESG) reporting requirements toward a principles-based approach focused on information considered material to investors and creditors. The consultation is open for stakeholder feedback until November 30. Responses will inform the government's review of the UK corporate reporting framework and any future legislative proposals.

FCA adopts comply-or-explain approach for ISSB-aligned sustainability reporting. On September 30, the UK Financial Conduct Authority (FCA) published PS26/19: Aligning listed issuers' sustainability disclosures with international standards, confirming that all disclosures under the proposed UK Sustainability Reporting Standards (UK SRS), including climate-related disclosures under UK SRS S2, will be subject to a comply-or-explain approach. The standards are based on the International Sustainability Standards Board (ISSB)'s IFRS S1 and IFRS S2 standards. The FCA's decision represents a shift from its original proposal, which would have required mandatory climate-related disclosures under UK SRS S2. Following stakeholder feedback, the regulator concluded that a consistent comply-or-explain approach across all sustainability disclosures would provide greater flexibility and proportionality, particularly for smaller listed companies. The new framework will replace the FCA's existing TCFD-aligned reporting regime and support the UK's transition to ISSB-aligned sustainability reporting. The FCA's consultation on technical guidance for comply-or-explain disclosures closes on October 28, with the new reporting framework expected to apply from January 1, 2027.

Jordanian Securities Authority launches mandatory code of ESG practices. As part of efforts to strengthen the strategic position of the Jordanian capital market in the global financial landscape, on