Corporate Briefing: Preparing for ESG Compliance in 2026

The year 2026 marks a pivotal moment for EU sustainability regulation. Organisations operating in, exporting to, or supplying the EU market face a limited window to prepare, and early action can deliver tangible benefits.

This article highlights the key sustainability compliance changes coming into effect in 2026. We explore the introduction of Digital Product Passports, updates to CSRD reporting, and the financial implications of the Carbon Border Adjustment Mechanism (CBAM).

Digital Product Passports: Making Product Data Work Harder

Digital Product Passports (DPPs) will start rolling out in 2026 under the Ecodesign for Sustainable Products Regulation. These passports provide standardised, accessible information about a product’s materials, environmental impact, and supply chain across its entire lifecycle.

High-quality product data supports more than compliance. It enhances supplier evaluation, informs procurement decisions, and strengthens engagement with customers and stakeholders who are increasingly focused on sustainability credentials.

Implementation is phased through 2030, but beginning the work now allows organisations to align systems and processes gradually, reducing complexity while building commercial leverage through reliable data.

CSRD: Preparing for Structured Sustainability Reporting

The Corporate Sustainability Reporting Directive (CSRD) has been delayed, with mandatory reporting deferred for many organisations to 2028 or 2029. Reporting thresholds have been raised, narrowing the number of companies directly in scope.

This adjustment provides time to build structured reporting processes rather than signalling a relaxation of expectations. Indirect exposure remains through supplier and value-chain data requests, which increasingly touch procurement and finance teams.

Organisations that use this window to strengthen data governance, integrate ESG metrics into financial systems, and align supplier reporting processes are better positioned for smooth, accurate disclosures when reporting becomes mandatory.

CBAM: Understanding Carbon as a Cost Factor

The Carbon Border Adjustment Mechanism (CBAM) introduces structured supply chain carbon reporting linked to regulatory carbon pricing. Compliance requires accurate emissions data from manufacturers, exporters, and suppliers.

Capturing, verifying, and storing emissions information supports more informed sourcing decisions and financial planning. During the transitional phase through 2025, reporting obligations exist without financial impact.

Since last month (January 2026), reporting has expanded to include the purchase of CBAM certificates, with the first annual declaration due in May 2027. Preparing ahead ensures that emissions data collection is efficient, accurate, and aligned with regulatory requirements.

Using 2026 to Build Resilience

As sustainability reporting moves from voluntary to mandatory, producing ‘audit-ready’ data is no longer optional. Digital Product Passports, CBAM, and CSRD require accurate supply chain mapping, verified emissions data, and structured disclosures - all treated with the same rigor as financial reporting.

Managing these parallel obligations efficiently is essential in 2026. Big Energy Group’s AI-powered platform simplifies the collection, verification, and auditing of sustainability data across DPPs, CBAM, CSRD, and other frameworks including ESOS and PPN 06/21. To discuss the upcoming changes or see the platform in action, get in touch here.

About Big Energy Group

Big Energy Group is a privately held, British-owned energy brokerage with an established track record of helping clients successfully navigate the energy market. The company has offices in Harrogate and the Tees Valley and serves more than 500 businesses across the UK. For more information, please visit bigenergygroup.co.uk.