Sustainability regulation is evolving fast in the UK, and charities - whether they’re ready or not-will feel more of that change in the coming years. While many new rules won’t directly target the third sector, their ripple effects are already reaching it.

One to watch is the UK’s Sustainability Disclosure Requirements (SDR). These are mostly aimed at financial firms and investors, but they’re expected to influence the wider ecosystem, including grant-makers and large foundations. That could mean charities applying for funding will need to be much clearer and more specific about their environmental impact and sustainability efforts(1).

Then there’s the incoming Extended Producer Responsibility (EPR) legislation. Charities that resell donated goods, especially those that involve packaging - like e-commerce or charity shops - may find themselves responsible for the end-of-life disposal of these materials. Even small changes like adding barcodes or packaging items for delivery could have regulatory implications(2).

Plastic is another area to pay attention to. The Plastic Packaging Tax, introduced in 2022, is likely to expand. If your charity produces or imports packaging - even indirectly - it may eventually need to report quantities and use recycled materials to avoid extra costs(3).

Another pressure point is the UK’s legally binding net zero targets(4). As sectors are required to cut emissions, charities working in health, education, or logistics will find that their activities are increasingly expected to align with low-carbon goals. You might not be legally required to publish a net zero plan just yet-but if you’re partnering with a school, council, or NHS trust, don’t be surprised if they ask for one.

Procurement rules are also evolving. Local authorities and national departments are placing more weight on environmental impact in their scoring systems. So, if your charity relies on public sector contracts, you’ll want to be ready to show your green credentials in tender applications(5).

In short: regulation is heading in one clear direction. Now is the time for charities to get ahead of the curve.

Bibliography

1 Sustainability Disclosure Requirements: Implementation Update 2024 (Accessed May 2025) https://assets.publishing.service.gov.uk/media/66505ba9adfc6a4843fe04e5/Sustainability_Disclosure_Requirements__SDR__Implementation_Update_2024.pdf

2 Extended producer responsibility for packaging: who is affected and what to do (Accessed May 2025) https://www.gov.uk/guidance/extended-producer-responsibility-for-packaging-who-is-affected-and-what-to-do

3 Plastic Packaging Tax: steps to take (Accessed May 2025) https://www.gov.uk/guidance/check-if-you-need-to-register-for-plastic-packaging-tax

4 The UK’s plans and progress to reach net zero by 2050 (Accessed May 2025) https://commonslibrary.parliament.uk/research-briefings/cbp-9888

5 The Procurement Act 2023: A short guide for suppliers (Accessed May 2025) https://www.gov.uk/government/publications/procurement-act-2023-short-guides/the-procurement-act-2023-a-short-guide-for-suppliers-html