New EU directives 2026: End voluntary sustainability for companies
In the period 2024—2026, European business will undergo one of the most extensive regulatory changes in modern times. The European Green Deal is now rolling out a battery of directives aimed at making the continent climate-neutral by 2050. For manufacturing and recycling companies, this means a shift from voluntary sustainability to strict regulatory transparency.
For buyers, logistics managers and industry leaders, the new EU directives are more than just legal texts — they are the framework for the business of the future. Here is a review of the most important regulations that are redrawing the map for Swedish industry at the moment.
1. CSRD — The new standard for sustainability reporting
CSRD (Corporate Sustainability Reporting Directive) is often described as the sustainability equivalent of the financial annual report. This means that sustainability data should now be audited by auditors with the same precision as the figures on the balance sheet.
- ESRS Standard: Companies must report under strict European standards covering everything from Scope 3 carbon emissions to biodiversity.
- Double essentiality: It is not enough to report how the company affects the environment — it is also necessary to account for how climate change affects the company's financial future.
2. ESPR & Digital Product Passport (DPP)
Ecodesign for Sustainable Products Regulation (ESPR) is the engine of the circular economy. It requires products to be designed to be durable, repairable and recyclable from the start.
The most concrete tool is Digital Product Passport (DPP). Each product receives a digital twin via QR code or RFID that stores information about material content and recycling instructions. Iron and steel are next in line to be covered by this requirement in 2026.
[Image showing a digital product passport concept with a QR code on a metal component]
3. CSDDD — Responsibility throughout the chain
The Corporate Sustainability Due Diligence Directive, or the “supply chain directive”, takes aim at companies' global responsibilities. Large companies now become legally responsible for identifying and countering negative impacts in their value chain, such as child labour or environmental violations by subcontractors. Non-compliance can result in heavy sanctions based on the company's global turnover.
4. EU Battery Regulation
This Regulation is central to the electrification of the vehicle fleet and industry. It sets strict targets for the collection and recycling of critical materials such as lithium, cobalt and nickel. Starting in 2025, all industrial batteries will have to declare their total carbon footprint throughout their lifecycle -- a key component for traceable recycling.
Strategy: How Skrotify helps you with regulatory compliance
The new directives place high demands on traceability and environmental data. By using Skrotify Portal gives your company access to the documentation and climate data necessary to meet the requirements of the CSRD and the new product passports.
We make the hassle easy by digitising every step of metal recycling, giving you a transparent and legal value chain that can stand up to scrutiny.
Does your company need help with environmental reporting and traceability?Read more about our services for business customers here
