Week Marked by Tightened ESG Standards and New Corporate Strategies

On March 18, 2026, Science Based Targets initiative (SBTi) published version 1.2^[5] of the Forest, Land and Agriculture (FLAG) guidelines, significantly tightening rules for companies with a substantial land footprint, including sectors like agriculture, FMCG, retail, paper, and materials. From 2026, new targets must mandatorily include a “no-deforestation” commitment, linked to the new GHG Protocol Land Sector and Removals standard, and companies have a maximum of 5 years to update their FLAG targets. The update aims to close loopholes that allowed delaying actions in food and timber supply chains, despite over 44 trillion USD in global economic value directly depending on nature. For Polish exporters of food, timber, paper, and textiles, this means the necessity of precise supply chain tracking and deforestation cut-off dates, typically no later than 2020.

New Regulations for Land and Deforestation

Simultaneously, SEC on March 17, 2026, formally opened consultations^[7] regarding updates to climate disclosure rules under Regulation S-K and S-X. The US capital market regulator points out that since the 2010 guidelines, investor demand for consistent ESG data has increased significantly, while voluntary reporting remains fragmented. New rules may bring US requirements closer to the European Corporate Sustainability Reporting Directive (CSRD) and ISSB standards, simplifying reporting for international groups, including those with Polish subsidiaries or listed in the US. Meanwhile, the European Union clarified the implementation schedule for the deforestation-free products regulation (EUDR): large and medium operators have until December 30, 2026, while micro and small companies have until June 30, 2027, with simplified duties for the smallest firms and exclusions for printed products—but without softening the core regulation requiring deforestation-free status, geolocation of plots, and due diligence.

Climate Regulations in the US and EU

At the sector level, a strong signal was sent by International Air Transport Association (IATA), which on March 18–20, 2026^[10] called on EU institutions to review EU ETS rules for aviation. The organization points to the duplication of EU ETS and the global CORSIA system mechanisms, rising costs of allowances, and insufficient reinvestment of ETS revenues in developing sustainable aviation fuels (SAF), estimating an investment gap of up to 407 billion USD by 2050. In the US, a significant political sign was the announcement by Governor Kathy Hochul of changes to New York’s “Climate Leadership and Community Protection Act” (CLCPA) law. Proposals include postponing the enactment of executive regulations from 2024 to 2030 and changing methane accounting methodology from a 20- to 100-year GWP horizon, which—as highlighted by organizations including Earthjustice—could weaken the state’s real climate ambition.

Pressure on Aviation and State Policy in the US

In the corporate segment, Google on March 20, 2026, announced agreements with US energy operators^[4] – Indiana Michigan Power, Tennessee Valley Authority, Entergy Arkansas, Minnesota Power, and DTE Energy – for 1 GW of demand response flexibility in US data centers^[12], supported by the Electric Power Research Institute (EPRI) through the DCFlex initiative. This aims to reduce peak grid loads amid increasing energy consumption by AI and cloud computing and to lessen the need for investments in new generation capacity. Simultaneously, Google signed a multi-year contract with AMP and the regional entity Southeastern Public Service Authority of Virginia to purchase removal credits for 200,000 tons CO₂e through 2030 by converting urban bio-waste into biochar instead of landfilling. Landfills are the third-largest methane source in the US, and methane has about an 80-fold higher short-term warming potential than CO₂, underscoring the importance of such solutions for emissions reduction.

Large Energy Consumers and CO₂ Removal Projects

In the fashion industry, H&M Group on March 20, 2026, announced adoption of verified science-based land use and biodiversity targets^[13] by the Science Based Targets Network (SBTN). The company commits to reducing its absolute “land footprint” by 3.85% by 2030 compared to 2019, increasing recycled material share to 50%, and achieving 100% responsible material sourcing by 2030, including regenerative agriculture projects in India and South Africa implemented with partners such as WWF. For Polish textile and apparel suppliers, this signals growing requirements on traceability, ecosystem conversion bans, and secondary material shares. Additionally, H&M Group established a multistakeholder advisory “Insights Board” in March 2026, featuring designer Stella Mc. Cartney, aimed at strengthening corporate governance on sustainable materials, animal welfare, and circularity.

Reporting Standards and CSRD-Aligned Strategies

On March 19, 2026, Global Reporting Initiative (GRI) announced the relaunch of a national program^[11] in Vietnam, co-funded by the Swiss State Secretariat for Economic Affairs (SECO) and targeting small and medium enterprises through the STAR Accelerator program. Cooperation with Vietnam’s Ministry of Finance and local business associations is designed to build ESG reporting infrastructure in one of Asia’s key manufacturing hubs, facilitating Polish companies in obtaining standardized supplier data. Meanwhile, Nordex Group, a wind turbine manufacturer, announced on March 19, 2026,^[47] a new sustainability strategy with seven priorities directly aligned with the CSRD, European Sustainability Reporting Standards (ESRS), and EU taxonomy. The company highlights that its turbines avoided 92.2 million tons CO₂e in 2025, with a 36.6% reduction in Scope 1 and 2 emissions compared to 2022, and that 100% of revenues and 92% of investment and operational expenditures were taxonomy-aligned. For Polish suppliers in the Nordex chain, this means increased demands on climate goals, workplace safety, and regulatory compliance.

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