June 2026 policy update

Watershed’s policy update covers near-final European sustainability reporting standards, with the European Commission closing its Simplified ESRS consultation after 450+ submissions and final standards expected by early July. It notes that 40% of ESMA enforcement actions related to companies’ ESRS E1 climate disclosures, and that Mexico’s NIS updates propose delaying mandatory scope 3 quantification by one year. It also examines US data center energy policy, European electricity market capacity, and potential conflicts between China’s new decrees and EU supply chain due diligence rules.