A new industry briefing from the British Retail Consortium (BRC) has mapped out the key sustainability regulation priorities, reporting requirements and policy trends for 2026 and beyond, including those directly affecting packaging compliance, extended producer responsibility and waste frameworks.
The retail sustainability horizon scan provides an updated regulatory outlook for businesses navigating rapidly evolving sustainability standards in the UK and Europe.
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Packaging regulation priorities shaping 2026 compliance
The BRC’s horizon scan highlights several critical packaging and packaging waste regulation developments that retailers and supply chain partners will need to prioritise over the coming year.
Most notably, developments in extended producer responsibility (EPR) for packaging are projected to move into operational stages in 2026, with the producer responsibility organisation (PRO) appointment expected in March and modulation of fees based on recyclability data slated for July.
Businesses subject to packaging EPR should prepare to report recyclability data and other metrics in line with the new requirements.
Alongside EPR, the UK’s Deposit Return Scheme (DRS) for recyclable containers is set to publish its final scheme design in April, including criteria that will affect both retailers and producers ahead of the planned October 2027 implementation date.
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By GlobalDataThere is also an expected regulatory update to the Plastic Packaging Tax (PPT) later in 2026, which may introduce a mass balance approach for chemically recycled plastics under the tax regime, potentially altering compliance pathways for businesses handling recycled materials.
Implications for reporting, supply chains and data transparency
Reporting obligations are expected to intensify in 2026, with greater emphasis on transparent sustainability data and claims verification, both for regulatory compliance and alignment with emerging frameworks.
In the UK, the proposed mandatory UK Sustainability Reporting Standards (SRS) may require large listed companies to disclose climate-related risks, governance and emissions data, including scope 3 emissions, under evolving government consultation processes.
In the European Union, regulations such as the Packaging and Packaging Waste Regulation (PPWR) are progressively shaping packaging design and on-pack labelling criteria, with enforcement timetables stretching into 2027–2030.
The PPWR aims to standardise rules around material recyclability, minimum recycled content and waste reduction across member states, which will have implications for businesses that operate in EU and UK markets.
The scan also points to growing scrutiny on product-level environmental claims, driven by initiatives such as the EU’s Empowering Consumers for the Green Transition Directive (ECGT), which is expected to introduce stricter requirements for green claims verification and consumer rights protections.
This trend reinforces the need for verified sustainability data to be woven into product packaging and communication.
Preparing for forward-looking sustainability policy shifts
Beyond immediate regulation, the BRC report flags longer-term trends likely to shape sustainability strategies through to 2030.
One such trend is the momentum toward reusable and refillable packaging models, a priority area where regulatory focus is expected to intensify, including through anticipated government calls for evidence on reuse mechanisms in retail and hospitality sectors.
The horizon scan also notes the potential influence of EU frameworks such as Digital Product Passports (DPPs) and eco-design requirements under the Ecodesign for Sustainable Products Regulation (ESPR), which are designed to expand transparency and circularity across product lifecycles.
These emerging policies may inform future UK policy decisions, particularly around harmonisation of data and reporting systems.
Ultimately, the 2026 landscape for packaging regulation and sustainability reporting is set to be defined by tighter compliance timelines, expanded data requirements and a sharper policy focus on circular economy principles.
Businesses operating across UK and EU markets will need to monitor these developments closely and adapt systems for reporting, material management and consumer communication accordingly.
