United Kingdom: Compliance

The European Commission has published draft revised sustainability reporting standards following the Omnibus Directive, dramatically reducing mandatory data points by over 60% while preserving the core structure of CSRD requirements. Companies must navigate significant changes to materiality assessments, value chain reporting obligations, and new voluntary standards that will reshape how businesses approach sustainability disclosure from 2027 onwards.

The expected stabilisation at the beginning of the year has not materialised, in some part due to the geopolitical developments that have been delivered by the USA.

Geopolitical tensions and regulatory fragmentation are forcing businesses to confront difficult decisions about restructuring their global operations. This analysis examines the critical legal, regulatory, and strategic considerations for companies contemplating carve-outs or exits from China, covering everything from regulatory approvals and technology export controls to workforce obligations and deal structuring. Using an asset-heavy manufacturing business as a case study, it outlines key issues that boar