Supply Chain Due Diligence

California Assembly Committee Advances AB 2599 on Slavery-Related Corporate Disclosures

On 14 May 2026 the California Assembly Appropriations Committee advanced AB 2599, a bill that would require high-revenue companies doing business in the state to file slavery-related historical affidavits and underpin a permanent public disclosure platform, with key deadlines in 2027 and 2028. If enacted, this would create significant new human-rights and ESG due diligence obligations for large businesses and state contractors in California, demanding extensive archival research, governance controls, and tolerance for ongoing reputational scrutiny through a public database.

16 May 2026, 09:03leginfo.legislature.ca.govUnited States

US House Bill Proposes Ban on Imports and Sale of Deforestation-Linked Goods

A new US House bill (H.R. 8744) introduced in May 2026 would prohibit the import and interstate sale of goods produced or derived from deforestation across US commerce. If adopted, it would create significant supply-chain and trade risks for companies dealing in deforestation-linked commodities, pushing them toward verifiable, deforestation-free sourcing.

15 May 2026, 18:36congress.govUnited States

International Cocoa Conference Adopts International Cocoa Agreement 2026

In February 2026, the UN International Cocoa Conference adopted the International Cocoa Agreement 2026, creating a new global framework for governing the cocoa market and the sustainability of the cocoa economy. The agreement, which will enter into force once signature and ratification thresholds are met, puts living income, child labour elimination, deforestation and market transparency at the centre of national cocoa policies, influencing future expectations for responsible cocoa sourcing and investment.

15 May 2026, 16:22docs.un.orgGlobal

EU Council Circulates Draft EU–US Strategic Partnership on Critical Minerals and Supply Chain Action Plan

In March 2026, the EU Council circulated a draft EU–US Memorandum of Understanding and Action Plan establishing a non-binding Strategic Partnership on critical minerals and supply chain resilience. While it creates no immediate legal duties, it signals coordinated EU–US moves toward joint investment, faster permitting, crisis stockpiling and a potential plurilateral trade agreement and standards regime that could materially reshape critical-mineral sourcing and due diligence expectations.

15 May 2026, 16:17data.consilium.europa.euEuropean UnionUnited States

UK Updates Russia Sanctions List: One Ship Revoked and Three Individual Listings Amended

The UK has updated its Russia sanctions list, revoking shipping sanctions on one vessel and amending three existing individual listings without changing their underlying measures. Companies with Russia-related trade, shipping or counterparty exposure should refresh sanctions screening and controls to reflect the revocation and data corrections, noting that no new chemical-specific entities are targeted.

15 May 2026, 15:06assets.publishing.service.gov.ukUnited Kingdom

US OFAC Adds Iran-Linked Individuals and Companies to SDN List for IRGC and WMD Support

In May 2026, the U.S. Treasury’s Office of Foreign Assets Control designated six individuals and fifteen companies supporting Iran’s Islamic Revolutionary Guard Corps, National Iranian Oil Company and weapons-of-mass-destruction procurement entities, adding them to the SDN List under key terrorism and WMD sanctions authorities. These designations expand sanctions exposure across energy trading, shipping, logistics and China–Middle East supply chains, requiring companies to update screening tools and reassess counterparties connected to Iran and the listed intermediaries.

15 May 2026, 14:43public-inspection.federalregister.govUnited States

Pakistan Amends Import Policy Order to Prohibit Imports of Forced-Labour Goods From Notified Countries

Pakistan has issued S.R.O. 704(I)/2026, dated 28 April 2026, amending its Import Policy Order 2022 to prohibit imports of goods produced with forced labour from goods, entities and countries that the government will notify based on International Labour Organization determinations. Importers sourcing from higher-risk origins will face new evidence and certification requirements to prove goods are not made with forced labour, making supply chain due diligence and documentation on labour practices increasingly critical for continued market access.

15 May 2026, 13:39commerce.gov.pkPakistan

Netherlands: Rotterdam Court Annuls EUTR Penalty Order For Timber Importer

A Rotterdam court has annulled a Dutch penalty order issued under the EU Timber Regulation against a timber importer, ruling that the company’s due diligence system was adequately applied and the minister’s reasoning for alleging non-compliance was insufficient. The judgment tightens expectations on how EUTR sanctions are substantiated in the Netherlands and underlines that well-documented, certified timber supply chains can be decisive in contesting enforcement measures over alleged due diligence failures.

14 May 2026, 18:48deeplink.rechtspraak.nlNetherlandsEuropean Union

European Parliament Study on Energy Transition and Indigenous Peoples’ Rights

In May 2026 the European Parliament’s Development Committee published study PE 783.613 assessing how EU energy-transition policies, critical raw-material supply chains, green hydrogen projects and international carbon-credit use affect the rights of Indigenous Peoples and local communities in partner countries. The analysis and recommendations signal that future EU legislation, funding instruments and partnerships in these areas are likely to embed stronger human-rights, free, prior and informed consent and due-diligence safeguards, raising expectations on companies and financiers involved in these value chains.

14 May 2026, 18:43europarl.europa.euEuropean Union

EU High Representative Announces Third-Country Alignment With Belarus Restrictive Measures Decision

Several EU candidate, EFTA and partner countries have formally aligned with the EU’s Belarus-related implementing decision on restrictive measures adopted on 23 April 2026. This extends the reach of Belarus sanctions beyond the EU, increasing cross-border screening and compliance obligations for organisations active in or through these jurisdictions.

14 May 2026, 18:38consilium.europa.euEuropean UnionAlbaniaBosnia & HerzegovinaIcelandLiechtensteinMontenegroNorth MacedoniaNorwayUkraine

Norway Updates Guidance on Due Diligence Assessments Under the Transparency Act

In December 2025 Norway's Consumer Authority updated its official guidance on due diligence assessments under the Transparency Act, adding clearer risk-based expectations, standpoints and practical examples for covered companies. This sharpened guidance signals how supervisors will evaluate human-rights and labour due diligence going forward, helping large companies prioritise high-risk value-chain issues and organise more defensible reporting and stakeholder engagement.

14 May 2026, 05:53forbrukertilsynet.noNorway

Spain Ministry of Labour Issues 100-Measure Roadmap for CSR and CSDDD Transposition

Spain’s Ministry of Labour has unveiled a 100-measure expert roadmap to shift corporate social responsibility from voluntary initiatives towards binding due diligence obligations as it prepares to transpose the EU Corporate Sustainability Due Diligence Directive. This signals a medium-term tightening of ESG governance for companies operating in Spain, with likely new duties on human-rights and environmental risk management, stakeholder engagement, and enforcement once legislative proposals follow.

13 May 2026, 11:54ftps.mitramiss.gob.esSpain

UK Issues Iran Sanctions Notice Adding 12 New Designations

On 11 May 2026 the UK issued a sanctions notice under The Iran (Sanctions) Regulations 2023 adding 12 individuals and entities to the Iran regime, making them subject to asset freezes, travel bans and director disqualification where specified. This materially heightens sanctions and counterparty risk for UK and international businesses with Iran-linked exposure, requiring prompt updates to screening, controls and counterpart due diligence to avoid prohibited dealings with the newly designated parties.

12 May 2026, 15:39assets.publishing.service.gov.ukUnited Kingdom

EU Council Decision 2026/1072 Adds 16 Persons and 7 Entities to Ukraine Sanctions List

In May 2026 the EU Council adopted Decision (CFSP) 2026/1072 adding 16 individuals and 7 entities to its Ukraine territorial integrity sanctions list. Companies with EU touchpoints must urgently re-screen counterparties and ensure no funds or economic resources flow to these newly listed parties, adjusting contracts and supply-chain relationships where needed.

12 May 2026, 15:26eur-lex.europa.euEuropean Union

EU Council Adds 16 Individuals and 7 Entities to Ukraine Territorial Integrity Sanctions List Over Deportation of Ukrainian Children

In May 2026 the EU Council adopted Implementing Regulation (EU) 2026/1055 to add 16 individuals and 7 Russian youth and military-patriotic organisations to the Ukraine territorial integrity sanctions list for their role in deporting, indoctrinating, and militarising Ukrainian children. These designations immediately extend asset-freeze and no-funds obligations under the existing sanctions regime, so companies with any exposure to Russia or occupied Ukrainian territories must rapidly update screening and due diligence to avoid direct or indirect dealings with the newly listed parties.

12 May 2026, 15:22eur-lex.europa.euEuropean Union

European Commission Publishes EUDR Simplification Review and Further Simplification Measures

In May 2026, the European Commission published its mandated simplification review of the EU Deforestation Regulation (EUDR), outlining implemented and planned measures to reduce compliance burdens and clarify obligations ahead of entry into application in late 2026 and 2027. The package refines product scope, eases due diligence and information-system requirements especially for micro and small operators and downstream actors, and signals that the core legal framework will remain stable, enabling companies to finalise EUDR implementation plans with greater certainty and focus on higher-risk supply chains.

12 May 2026, 12:55environment.ec.europa.euEuropean Union

European Commission Publishes 5th FAQ on EU Deforestation Regulation Implementation

In May 2026 the European Commission’s environment directorate published Version 5 of its FAQ on implementing the EU Deforestation Regulation, significantly expanding and updating non-binding guidance on traceability, scope, due diligence, timelines and use of the EUDR Information System. This document is now the key operational reference for companies and authorities preparing deforestation-free supply chains, clarifying who qualifies as an operator, downstream operator or trader, what data and systems they must have in place, and how to manage transitional stocks ahead of the Regulation’s 2026–2027 application dates.

12 May 2026, 12:55environment.ec.europa.euEuropean Union

Council of Europe GRETA Publishes Fourth Evaluation of UK Anti-Trafficking Measures

On 5 May 2026 the Council of Europe’s GRETA body published its fourth evaluation of how the UK is implementing the anti-trafficking convention, highlighting persistent vulnerabilities for migrant workers, asylum seekers, children and other at-risk groups. The report increases pressure for the UK to tighten labour enforcement and immigration safeguards, strengthen Modern Slavery Act supply-chain transparency and victim protections, and raises expectations on corporate human-rights due diligence in high-risk sectors.

11 May 2026, 11:56rm.coe.intUnited Kingdom

Finland Consults on National Enforcement of EU Forced‑Labour Products Regulation

Finland has launched a public consultation on a draft law to enforce the EU regulation banning products made with forced labour, designating a national supervisory authority with powers to investigate cases and impose financial sanctions from December 2027. This will harden human-rights-based trade controls and increase supply chain due diligence expectations for companies placing products on the Finnish and wider EU market.

11 May 2026, 08:14lausuntopalvelu.fiFinlandEuropean Union

US House Introduces H.R. 8712 To Amend Securities Exchange Act of 1934 for Xinjiang Disclosures

In May 2026, H.R. 8712 was introduced in the US House to amend the Securities Exchange Act of 1934 by requiring issuers to make specified disclosures relating to the Xinjiang Uyghur Autonomous Region. If enacted, this would create new Exchange Act reporting focused on Xinjiang-related risks, signalling heightened scrutiny of human rights and supply-chain exposure in corporate securities disclosures.

10 May 2026, 19:26congress.govUnited States