GFA Policy Matrix: EU

Chemicals

• On 27 April 2026, Environment Commissioner Jessika Roswall announced that the Commission will not reopen REACH, EU’s primary framework for regulating chemicals and ensuring their safe use across the market, at this stage. In the meantime, the EU continues to advance work on restricting PFAS (“forever chemicals”) across products and industries, with a final restriction proposal expected from late 2026 onward.

• The sixth revision of the Carcinogens, Mutagens and Reprotoxic Substances Directive (CMRD), which seeks to better protect workers from exposure to hazardous substances that can cause cancer, genetic mutations, or reproductive harm, moved forward. The European Parliament and Council reached an agreement on 23 June 2026, with formal adoption still required before the new rules enter into force.

Circularity and Product Requirements

• On 29 April 2026, the Commission published the draft Implementing Act on the Digital Product Passport registry, a digital registry to securely store the unique identifiers for Digital Product Passports expected to go live by 19 July 2026. 

• On 4 May 2026, the European Commission published the simplification package for the EU Deforestation Regulation (EUDR), which aims to ensure that products placed on the EU market are not linked to deforestation or forest degradation. The package includes updated guidance, FAQs, and a draft delegated act on product scope, which excludes the leather industry from EUDR obligations.

• From 1 July 2026, the EU will introduce a temporary €3 customs duty on low-value parcels worth up to €150 imported from outside the EU, removing the duty exemption that applied until 30 June 2026. The measure aims to strengthen customs oversight and create fairer competition between EU-based businesses and high-volume non-EU e-commerce platforms. Implementing rules were published in the Official Journal on 8 June 2026 and will remain in force until 1 July 2028. The European Commission also published a Q&A document addressing common questions about the new regime.

Sustainability reporting and Due Diligence

• On 6 May 2026, the European Commission published a draft for the revision to the European Sustainability Reporting Standards (ESRS). The proposal aims to simplify sustainability reporting requirements, reduce duplication, and improve consistency across disclosures. The Commission also released a draft voluntary reporting standard for smaller companies and launched a public consultation, which ran until 3 June 2026.

• On 12 June 2026, the European Commission launched a public consultation on guidelines supporting the implementation of the Corporate Sustainability Due Diligence Directive (CSDDD). The guidelines aim to give companies practical clarity on how to carry out due diligence under the Directive, including how to identify, prioritise, and address impacts across their operations and value chains. The consultation will run until 24 July 2026, with guidelines expected in Q1 2027.

Consumer Protection and Social Policy

• On 18 May 2026, the European Commission published a FAQ document on the interpretation of the Empowering Consumers Directive, which seeks to strengthen consumer protection against misleading environmental claims and improve access to sustainability information.

• By 7 June 2026, Member States were required to transpose strengthened equal pay rules into national legislation. These measures aim to improve pay transparency and reinforce the principle of equal pay for equal work across the EU.

Explore the latest additions to the GFA Policy Matrix EU: Public Procurement Act, EU Biotech Act II, and Roadmap towards Nature Credits.

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GFA Policy Matrix: Americas

On 14 May 2026, the Coast Guard Personnel Equipment Act was introduced in the United States. The bill would require all Coast Guard uniforms and personal equipment to be manufactured domestically, closing an existing loophole that allows overseas sourcing. If adopted, the measure would align the Coast Guard with procurement requirements already applied to the Army, Navy, Air Force, and Marine Corps, while supporting the domestic textile manufacturing sector and reducing reliance on foreign suppliers for military equipment.

On 29 May 2026, the US Securities and Exchange Commission (SEC) proposed rescinding its climate disclosure rule, signalling its intention to remove the regulation entirely rather than continue its current suspension. The rule, adopted in 2024, was originally designed to require publicly listed companies to disclose climate-related risks and greenhouse gas emissions, providing investors with greater transparency on sustainability-related impacts and financial risks. Its implementation was paused following legal challenges and court proceedings.

On 12 June 2026, Canada introduced the Act Respecting the Prohibition of the Importation of Goods Produced by Forced Labour, aimed at strengthening the country’s ability to identify, intercept, and prohibit goods linked to forced labour from entering the Canadian market. The proposed legislation would empower customs authorities to detain suspected goods for up to 90 days while investigations are conducted and authorise the Minister of Foreign Affairs to maintain a presumptive list of high-risk goods, identified by producer, country, or region, where there are reasonable grounds to suspect that forced labour may be involved in their production.

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GFA Policy Matrix: Asia

The People’s Republic of China adopted two decrees between late March and early April 2026, aimed at strengthening industrial supply chain security and reinforcing regulatory sovereignty. 

• Decree 834: Regulations on the Security of Industrial and Supply Chains prohibits unauthorised surveys and other information-gathering activities related to industrial and supply chains, effectively restricting foreign-led supply chain audits within China.

• Decree 835: Provision on Countering Foreign Improper Extraterritorial Jurisdiction seeks to counter the extraterritorial application of foreign laws and regulations that Chinese authorities consider contrary to national interests or sovereignty. Companies that comply with such foreign requirements may be exposed to sanctions.

Together, these measures are expected to significantly affect supply chain auditing practices, due diligence processes, and forced labour compliance efforts involving Chinese operations.

On 24 April 2026, India officially submitted its Nationally Determined Contribution (2031–2035). Nationally Determined Contributions (NDCs) are climate action plans under the Paris Agreement outlining each country’s emissions reduction targets and adaptation priorities. India’s updated submission focuses on accelerating clean energy deployment, supporting green growth, and strengthening climate adaptation.

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Disclaimer: The GFA Policy Matrix is an independent resource developed by Global Fashion Agenda. The information provided does not constitute, nor is it intended to constitute, a comprehensive overview of all relevant legislation. It reflects GFA’s views and is shared for informational purposes only.