The New Rules of Sustainability: What Every Business Needs to Know Now
By Sarah Atkinson, ESG Consultant, Green Circle Solutions
Sustainability regulation is evolving rapidly and businesses can no longer afford to treat ESG as a side conversation. Whether you are a small SME or a large corporate, expectations around transparency, accountability and evidence are increasing fast.
That was the key theme explored in Green Circle Solutions’ recent Lunch & Learn webinar, The New Rules of Sustainability: What Every Business Needs to Know Now. During the session, we unpacked seven of the most important sustainability regulations, frameworks and guidance shaping business decision-making today.
And while some of these rules currently apply only to larger organisations, the reality is that supply chain pressure means almost every business will feel the impact sooner rather than later.
1. CMA Greenwashing Guidance: The Biggest Wake-Up Call for Businesses
If there was one issue businesses need to prioritise right now, it is the updated guidance from the Competition and Markets Authority (CMA) around greenwashing.
The expanded guidance, strengthened in January 2026, makes it clear that businesses are responsible not only for their own sustainability claims, but also for claims made across their supply chain.
That means if you include environmental claims from suppliers, caterers, logistics providers, stand builders or manufacturers in your marketing or tender responses, you are still accountable for ensuring those claims are accurate and evidence-based.
This is a major shift.
Many organisations have historically relied on broad sustainability statements without properly evidencing them. The CMA is now making it very clear that vague, exaggerated or unsubstantiated claims create legal and reputational risk.
The message for businesses is straightforward:
- Audit your sustainability communications
- Check every environmental claim
- Collect evidence from suppliers
- Train marketing and procurement teams
- Ensure your sustainability narrative is factual, specific and defensible
This applies to websites, social media, proposals, sales collateral and client presentations alike.
Importantly, this is not just about avoiding risk. Businesses that can clearly evidence their sustainability credentials are increasingly winning trust, strengthening reputation and improving their commercial position.
2. UK Sustainability Reporting Standards (UK SRS)
The webinar also explored the UK Sustainability Reporting Standards, based on the International Sustainability Standards Board (ISSB) framework.
Although not yet mandatory, the framework signals the future direction of sustainability reporting in the UK.
The focus is on understanding how climate and sustainability issues create both risks and opportunities for organisations. This concept of “financial materiality” is becoming increasingly important at board level.
Businesses are being encouraged to ask:
- How could climate impact our operations?
- What risks exist within our supply chain?
- Could sustainability create new commercial opportunities?
- Are these risks reflected in governance and business planning?
The key takeaway is that organisations should not wait until reporting becomes mandatory before preparing.
3. Packaging Waste Regulations
Packaging legislation is another area businesses should be watching closely.
The government’s reforms are designed to shift more responsibility for packaging waste onto businesses placing packaging onto the market.
For many organisations, this is less about compliance today and more about changing purchasing behaviour.
Businesses are increasingly being expected to think about:
- How much packaging they generate
- Whether materials are recyclable
- How suppliers can reduce waste
- The wider environmental impact of product design
Procurement teams have a critical role to play here.
4. UK Environment Act and Forest Risk Commodities
Another important discussion focused on Schedule 17 of the UK Environment Act, which targets products linked to deforestation.
Large organisations must ensure certain commodities, including cattle, cocoa, palm oil and soy, are not linked to illegal deforestation.
Again, this reinforces the growing importance of supply chain transparency and governance.
Even smaller businesses may be asked by clients to demonstrate where products come from and whether sustainability claims can be evidenced.
5. EU Deforestation Regulation (EUDR)
For businesses trading with Europe, the EU Deforestation Regulation (EUDR) is particularly significant.
The regulation requires organisations importing or exporting certain products, including wood, to prove materials are deforestation-free and fully traceable.
This is especially relevant for sectors such as events, exhibitions, construction and manufacturing.
Businesses now need much greater visibility into sourcing and procurement practices, with robust documentation to support compliance.
6. Simpler Recycling in England
The introduction of simpler recycling rules means most businesses in England must now separate core recyclable waste streams including paper, plastic, glass, food waste and metals.
Mixed waste approaches are increasingly becoming outdated.
The wider message here is that organisations need better quality data around waste, recycling and resource management if they want to improve performance and meet growing stakeholder expectations.
7. Streamlined Energy and Carbon Reporting (SECR)
Finally, we revisited Streamlined Energy and Carbon Reporting (SECR), which requires qualifying larger businesses to disclose energy use and greenhouse gas emissions.
Even where SMEs are not directly in scope, carbon reporting is becoming a commercial expectation.
Increasingly, businesses are being asked for emissions data in tenders, procurement questionnaires and client assessments.
Having a credible carbon baseline is rapidly becoming part of doing business.
The Bigger Picture
The overarching message from the session was clear: sustainability is no longer just about compliance.
It is about resilience, governance, reputation, customer trust and commercial competitiveness.
Businesses that proactively understand these changes, strengthen their evidence, engage their teams and improve supply chain transparency will be in a far stronger position moving forward.
Just as importantly, organisations that communicate sustainability clearly, honestly and credibly will stand out.
If you missed the live session, you can watch the webinar replay and access the slides via Green Circle Solutions.
And if you would like support understanding how these changes impact your business, Green Circle Solutions can help with:
- Sustainability strategy
- Carbon reporting and calculators
- Supply chain and procurement support
- ESG training and workshops
- Sustainability communications
- Green claims and CMA guidance reviews
To find out more, get in touch with the team today: hello@greencirclesolutions.co.uk