Cascale has published its Q1 2025 Global Legislative Update, the latest installment in our ongoing series of quarterly reports available exclusively to Cascale members.
Cascale has published its Q1 2025 Global Legislative Update, the latest installment in our ongoing series of quarterly reports available exclusively to Cascale members.
This edition covers legislative developments from January to March 2025, offering a detailed look at evolving policies that are shaping the consumer goods industry in the field of sustainability policy across key regions, including the United States, the European Union (EU), and Asia-Pacific.
As regulatory landscapes continue to shift, Cascale remains committed to helping members navigate complex policy environments and stay ahead of global trends. This quarterly update delivers actionable insights into emerging legislation, sustainability mandates, and regulatory reforms with far-reaching implications for business operations, supply chains, and sustainability goals.
The Q1 2025 update focuses on major movements in climate policy, labor law, and corporate sustainability reporting, helping businesses anticipate risks and align strategies with evolving expectations. The summary below provides key insights from the report—a preview of the full resource that is available exclusively to Cascale members on our members-only platform, Cascale Connect. Cascale members are encouraged to log in to Cascale Connect to access the full update and stay informed of evolving regulatory trends.
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In Q1, the United States took actions affecting labor and environmental regulations. For example, the government’s move to dismantle diversity, equity, and inclusion (DEI) programs has created legal and reputational challenges for U.S. companies, which now face a dilemma between government opposition to DEI and stakeholder demand for diverse workforces. Meanwhile, the Environmental Protection Agency (EPA) announced a major deregulatory initiative, promising 31 actions, including the reconsideration of the 2009 Endangerment Finding, which underpins many U.S. climate regulations. In addition, a decision by the U.S. Securities and Exchange Commission (SEC) to stop defending the federal climate risk disclosure rule has effectively halted it, leaving U.S. companies to navigate state-level reporting requirements. States such as Washington, New York, and California have recently taken regulatory steps to promote sustainability accountability for the fashion industry.
Recent policy efforts by the EU to enhance its competitiveness and sustainability included the release of a “Competitiveness Compass” focused on innovation, decarbonization, and security—shifting the balance toward competitiveness over regulation. As part of its 2025 Work Program, the EU also published an “Omnibus package” aimed to simplify corporate sustainability rules to reduce compliance costs, along with a “Clean Industrial Deal” designed to support industries facing high energy costs and global competition. The developments signal a more business-friendly approach to managing the EU’s transition to a cleaner economy. Additionally, the EU reached a provisional agreement on textile waste regulations to improve sorting and recycling, and introduced mandatory extended producer responsibility (EPR) schemes for textiles across Member States.
Momentum for sustainable supply chains continued across the Asia-Pacific region. Pakistan announced it will adopt the ISSB Standards in phases starting July 2025, requiring detailed sustainability reporting. Vietnam updated its Environmental Protection Law to strengthen its EPR framework, encouraging companies to take greater accountability for waste management. The country also unveiled a “National Action Plan for Circular Economy, “ encouraging eco-friendly manufacturing practices. Both Vietnam and Taiwan took steps in support of domestic carbon pricing systems, which are likely to increase costs for large emitters. Finally, Bangladesh agreed on labor law amendments to improve worker rights, which may raise compliance costs for manufacturers.
Cascale’s Public Affairs team remains dedicated to equipping members with timely intelligence on the global policy landscape. Through Cascale Connect, members gain exclusive access to curated resources, regulatory updates, and actionable insights to manage risk, support compliance, and drive sustainable transformation.
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