The eco-consumer is on the rise. Statistics suggest that 78% of consumers feel sustainability is important and this is influencing shopping habits, with 80% willing to pay more for sustainably produced goods. Unsurprisingly, sustainably made products are growing at a significantly faster rate.

Beyond consumer appetite, retailers need to keep up with evolving sustainability legislation. Requirements vary depending on operation size and businesses shipping internationally may have additional legal hoops, says Josh Pitman, Managing Director of sustainable packaging firm Priory Direct.

The outlook in 2026

Whilst some regulations are ‘bedding in’ in 2026, the government’s new UK Sustainability Reporting Standards (UK SRS) are in development, designed to modernise – and ultimately replace – the Streamlined Energy and Carbon Reporting (SECR) directive.

Obligatory reporting under the SECR was introduced for larger UK firms in 2019 to improve transparency around carbon emissions and energy use, because what is measured can be managed. The UK SRS take a step forward, supporting UK companies to disclose sustainability-related information, risks and opportunities in a way that is embedded in strategy and aligned with international frameworks. They encourage businesses to really understand and manage their Scope 1, 2 and 3 emissions.

Whilst the new standards, which were consulted upon over the summer, are being finalised, retailers should review how they collect and manage operational data, and how they measure and report emissions to be legislation-ready. Whilst regulations tend to impact larger retailers first, the ripple effect goes further. As larger retailers seek transparency, it becomes equally important for smaller retailers and others in the supply chain to report sustainability data to maintain viable commercial relationships.

Another piece of legislation that retailers should keep in focus is the Product Regulation and Metrology Act 2025. Whilst it brings no new requirements, it gives the government broader powers to introduce regulations to ensure safety, efficiency, accuracy, and reduced environmental impact, in line with relevant EU law.

For retailers in the food space, and in general, measures may arise out of the government’s Environmental Improvement Plan 2025 (EIP), published in December, seeking to reduce waste and promote circularity. Pressure also continues to mount on government to introduce a ban on commodities produced on illegally deforested lands. Retailers should carry out thorough due diligence on their supply chains to uncover any environmental risks linking them to, for example, deforestation or harmful chemicals – something they should do in any case.

All retailers face an ongoing crackdown on greenwashing from regulators and must be honest in their claims or risk hefty fines and a tarnished brand.

Packaging legislation

Larger retailers have paid their first Extended Producer Responsibility (EPR) fees, which came into play in October 2025. This year they will be looking at ways to minimise their exposure. Businesses on the threshold would be prudent to assess their packaging footprint through an EPR lens.

With retailers like John Lewis being handed a £22 million bill, the new levy has caused diverse reactions. EPR has changed how UK organisations responsible for packaging carry out their recycling responsibilities. Currently, only large ‘producers’ with a turnover above £2 million that import or supply more than 50 tonnes of packaging need to pay. From 2026, EPR will introduce modulated fees, and the amount producers pay depends on the recyclability of materials.

The next 12 months will be crucial for retailers to review and reduce the environmental impact of packaging, to minimise exposure to the levy. There is an existential risk to smaller retailers because the packaging suppliers, in effect, pick up their EPR costs. This is leading to some suppliers cutting smaller retailers out by introducing higher minimum order quantities (MOQs) or increasing minimum spends. There is also a question mark over how the scheme will be policed. At worst, honest retailers could be undercut by non-compliant ones that are not shouldering EPR fees.

Aside from EPR, in August 2026 the EU is introducing standardised recycling labelling. The UK government has paused development of its own system until after this date, now mooted for 2028.

Voluntarily sustainable

Voluntary schemes also abound. April 2026 will see the launch of the UK Packaging Pact, aimed at changing how packaging is designed, used, and recovered. The voluntary agreement already has numerous household name retailers as signatories and is likely to set new benchmarks.

Retailers not yet tracking their environmental impact should not delay. The tide is moving irreversibly towards greater sustainability and whilst adapting takes time, it usually brings greater efficiencies and cost savings, a win-win for business and the planet.