The transposition of multiple EU ESG directives has not yet been completed: EPBD, RoHS and labor human rights regulations, what should companies pay attention to?

On July 15, 2026, the European Commission issued a formal notification letter and initiated violation procedures for the incomplete transposition of EU directives by several member states. The original announcement covered 15 directives; this article focuses on 5 of the issues that are clearly linked to corporate ESG management, and a total of 8 directives, including building energy performance, hazardous substances in electronic and electrical products, foreign worker rights, equal institutions and anti-SLAPP regulations.

The direct target of this news is EU member states that have not completed the transfer or have not fully notified the transfer measures. It does not mean that the European Commission has directly imposed penalties on companies. However, when member states speed up the revision of laws, supplement the powers of competent authorities or update enforcement methods, companies that have a presence, employ personnel, own buildings or sell products in the EU may still face changes in systems, documents and inspection requirements.

First understand: What does this “violation procedure” mean?

EU directives usually first set the results that member states must achieve, and then each member state completes the transposition through domestic laws, administrative orders or other measures. What enterprises should ultimately comply with are mostly the transposed domestic regulations of the member states where they operate, rather than just reading the names of EU directives to determine all obligations.

According to the announcement of the European Commission on July 15, 2026, this action is to send a “letter of formal notice” to the relevant member states. In principle, member states have two months to respond and notify complete transfer measures; if the response is insufficient, the Executive Committee may further issue a “reasoned opinion”. Therefore, there are three boundaries that should be observed when reading this news:

• This is the initial stage of the member state’s non-compliance procedure and is not a decision on penalties for companies.
• The directive already exists, but the domestic transposition progress and specific practices of each Member State may be different.
• Businesses should not stop preparations just because Member States have not completed notifications, nor should they regard press releases as a complete list of legal obligations.

This directive related to corporate ESG management

The above eight directives will not affect all companies in the same way. Applicability will still depend on the Member State, product category, building use, employment relationship and the role of the undertaking in the individual case. A better approach would be to first identify your links to the various norms and then track the transposed legislation of the relevant Member States.

Environmental aspect: EPBD drives long-term transformation of building energy management

The rewritten version of the Energy Performance of Buildings Directive (EPBD) will be adopted in 2024. The European Commission pointed out that member states should complete the transposition of most provisions by May 29, 2026; among them, specific provisions prohibiting financial incentives for the installation of independent fossil fuel boilers have an earlier transposition deadline. The announcement in July 2026 showed that the Executive Committee believed that none of the 27 member states had fully transposed and notified all measures.

EPBD does not simply require companies to replace a certain piece of equipment, but connects building energy performance, renovation paths, and long-term decarbonization. The Executive Committee specifically mentioned the following directions in the announcement:

• Minimum energy performance requirements for non-residential buildings.
• National path for progressive renovation of residential buildings.
• Solar energy applications in buildings.
• Sustainable mobility infrastructure such as electric vehicle charging and bicycle parking.
• One-stop consulting service for building renovations.
• Public and private financing arrangements to support renovations.

For businesses, it’s not just the annual electricity bill that really needs to be managed, but the building’s fundamentals, energy performance, lease and ownership responsibilities, equipment refresh cycles and capital expenditures. If an enterprise owns or long-term leases offices, factories, warehouses, shopping malls or other non-residential buildings in the EU, it can first establish the following information:

• Building location, use, floor area, age and ownership or rental relationship.
• Energy performance certificates, energy audits, electricity and fuel usage records.
• Condition of air conditioning, boilers, lighting, building envelope and renewable energy equipment.
• Existing renovation plans, lease restrictions, investment budget and expected energy savings.
• Minimum performance and reporting requirements that have been announced or are being discussed in each operating country.

Since EPBD must be transferred through each member state, the thresholds, timelines, supporting documents and competent authority procedures should still be subject to the latest domestic laws of the location where the construction is located. Enterprises can first take inventory of assets and data, but it is not appropriate to directly use EU press releases to replace the judgment on the applicability of local regulations.

Environmental aspect: RoHS exemption update does not mean comprehensive relaxation

The RoHS directive restricts the use of specific hazardous substances in electronic and electrical equipment. This announcement involves three mandated directives that amend the annexes to the RoHS Directive:

• Directive (EU) 2025/1802: Lead in high melting point solders.
• Directive (EU) 2025/2363: Lead in glass or ceramic components.
• Directive (EU) 2025/2364: Lead as an alloying element in steel, aluminum and copper.

The European Commission stated that the renewal of time-limited exemptions for specific uses in these delegated directives does not weaken environmental and health protection. Taking the exemption of glass or ceramic components as an example, official documents explain that there may still be a lack of technically feasible or sufficiently reliable alternatives for specific applications, so exemptions are subdivided according to use and deadlines are set.

The most common misunderstanding among enterprises is to regard all lead-containing materials as being able to continue to be used after seeing the “exemption renewal”. In practice, exemptions are often limited by equipment category, material use, concentration, article number and expiration date. Whether the product is suitable still needs to be compared item by item with the RoHS Annex and relevant member state laws.

Manufacturers, brands and suppliers of electronic and electrical products can first check:

• Whether lead or other RoHS restricted substances are present in the bill of materials.
• Whether the correct accessory terms, applicable categories and deadlines are recorded for exempted parts.
• Whether supplier declarations, material declarations, test reports and technical judgments correspond to each other.
• Whether to re-evaluate compliance when product changes, substitute materials, or supplier changes.
• Whether there are reminders, evaluation of alternative materials, and design change plans before the exemption expires.

This violation procedure deals with whether member states have completely transferred the three mandate directives, and it does not mean that companies can postpone existing RoHS management. For products exported to the EU, technical documents and supply chain evidence should continue to be maintained in accordance with applicable rules.

Social aspect: Single licensing directive strengthens protection for foreign workers

The recast Single Permit Directive (EU) 2024/1233 establishes a single application procedure for third-country nationals to reside and work in member states, and regulates the common rights that third-country nationals who work legally should enjoy. The Executive Committee announcement pointed out that 17 member states have not notified complete transposition measures before May 21, 2026.

Highlights of the directive include shortening the decision period for a single permit application to in principle 90 days, allowing qualified persons to apply from abroad, or from within a member state when holding a valid residence permit. What deserves more attention from enterprises is labor security, including the right to switch employers under specified conditions, as well as monitoring, inspection, appeal, legal relief and sanction mechanisms.

These requirements are primarily a system that Member States should establish, but may also change employers’ practices with regard to personnel applications, employment documents, working conditions and inspections by competent authorities. If a company hires non-EU nationals in the EU, it should check:

• Who is responsible for recruitment, work permit and residence procedures, and whether there is excessive reliance on a single intermediary.
• Whether the labor contract, position, salary, working hours and working location are consistent with the application materials.
• Whether employee passports, documents or fees have been improperly withheld or passed on.
• Whether foreign workers can understand the contract, appeal channels and rights to change employers.
• Whether labor agencies and contractors are included in labor rights due diligence.

Enterprises should not regard “valid documents” as the completion of labor human rights management. If individuals are unable to report problems due to information asymmetry, cost burdens, employer control or fear of losing their residency status, exploitation and reputational risks may still arise.

Social aspect: Equality body directive improves accessibility of anti-discrimination regimes

Directives (EU) 2024/1499 and (EU) 2024/1500 establish common minimum standards for equality bodies in Member States. Equality bodies can support victims of discrimination, conduct investigations, issue reports and make recommendations. The Executive Committee noted that 22 Member States had not notified complete transposition measures by June 19, 2026.

The new norms focus on the independence of equality institutions from external influences, adequate human and financial resources, the authority to effectively carry out their tasks, and the accessibility of victims to assistance. The announcement also mentions aspects such as religion or belief, physical and mental disabilities, age, sexual orientation in employment, and gender discrimination in social security.

These directives are not a model for corporate diversity and inclusion policies, but they may make it easier for employees and other stakeholders to obtain external consultation, grievance support and relief. Enterprises can use this to check whether the internal system is actually usable:

• Whether the anti-discrimination policy clearly covers recruitment, compensation, promotion, training and termination of employment.
• Whether the grievance channel allows for confidentiality, avoids retaliation and provides reasonable processing time. -Whether investigators have independence and conflict of interest avoidance mechanisms.
• Whether people with disabilities have access to reasonably adjusted and accessible means of communication.
• Whether records of facts, decisions, remedies and subsequent results are retained during incident handling.

The maturity of the system should not only be judged by whether the company issues a DEI statement, but also whether individuals can safely raise issues when disputes occur, and whether the organization can investigate and complete remediation in a consistent manner.

Governance aspect: Anti-SLAPP and corporate public participation risks

Anti-SLAPP Directive (EU) 2024/1069 deals with civil cases with cross-border implications. SLAPP usually refers to strategic litigation against public participation, which may suppress journalists, human rights defenders or civil society organizations from participating in public issues through legal actions that lack substantial basis or abuse the process. The Executive Committee noted that 14 Member States had not notified complete transposition measures by May 7, 2026.

The procedural safeguards provided by the Directive include: enabling courts to reject manifestly unfounded claims at an early stage, providing remedies for abuses of process, and providing specific protection for third-country judgments. Its core is cross-border civil procedures and public participation guarantees.

For companies, anti-SLAPP does not mean that they cannot protect their rights in accordance with the law when faced with false information, but it requires companies to more carefully evaluate the purpose, basis and proportionality of legal actions. If the dispute involves environmental impacts, labor conditions, supply chains, human rights or public policy, companies can add governance checks before taking legal action:

• Whether the claim has specific facts, evidence and a clear legal basis.
• Whether the other party is engaging in a discussion of public interest.
• Whether the damages, injunctions or procedural burdens sought are proportionate to the actual harm.
• Whether there are lower-conflict options such as clarification, response, appeal or third-party mediation.
• Whether legal affairs, sustainability, public relations and senior management jointly assess human rights and reputational impacts.

Incorporating these issues into decision-making can reduce the separation of legal, communication and human rights risks from each other, and prevent companies’ rights protection measures from being interpreted by outsiders as suppressing stakeholders.

Under what circumstances may Taiwanese companies be affected?

These directives mainly require EU member states to complete the translocation, and they do not automatically apply to all companies just because they are located in Taiwan. However, companies should still further confirm if they have the following situations:

• Have a subsidiary, branch, factory, warehouse or office in the EU.
• Own or long-term lease of non-residential buildings in the EU.
• Put electronic and electrical products on the EU market, or supply components to EU brands.
• Directly employ non-EU workers in the EU, or use relevant manpower through intermediaries and contractors.
• Corporate supply chain guidelines cover anti-discrimination, labor rights and grievance redress.
• Businesses may have cross-border civil disputes with the media, trade unions, human rights organizations, environmental groups or other public actors.

Impact may also be transmitted indirectly through customer requirements, lease terms, supplier questionnaires, product technical documents or group policies. Companies should identify whether requirements come from EU directives, member state laws, customer contracts or voluntary policies, and avoid mixing requirements of different natures in the same checklist.

Six things companies can do now to take inventory

1. Establish a regulatory and operational comparison table

List the EU member states, legal persons, buildings, products and employment activities in which the company operates, and then specify the regulatory tracking window for each country. Do not just use the EU as a single jurisdiction, as the competent authorities, thresholds and documents may be different after the transfer.

2. Inventory of building energy data

Compile energy performance certificates, energy usage records, major equipment, lease obligations and renovation plans. If the information is held by the landlord, property management company or different locations, you should first confirm the acquisition method and update frequency.

3. Recheck RoHS exemption

Start with actual products and parts, and compare materials, uses, equipment categories, exemptions, and deadlines. For projects that are about to expire or whose alternatives are unclear, establish improvement plans across R&D, procurement and supplier quality.

4. Check the management of foreign workers

Confirm recruitment fees, document storage, working conditions, changing employers and appeal channels. High-risk human resources agencies and contractors should not only complete the contract signing, but also should check the documents, conduct interviews and improve the deficiencies.

5. Test anti-discrimination and grievance mechanisms

Use case drills to confirm whether employees can find channels, whether investigations are independent, whether retaliation is prevented, and whether remedial measures can be tracked. If there are only policy documents without processing records and division of responsibilities, the system may still remain in a formality.

6. Incorporate public disputes into governance processes

Establish a joint review of legal affairs, sustainability, human rights and communication for external disputes involving public interests. The decision record should describe the factual basis, legal purpose, alternatives and proportionality, rather than just retaining the outcome of the litigation.

Four common misunderstandings

• **Misunderstanding 1: The Executive Committee has directly punished the company. ** This formal notification letter is intended for Member States.
• **Misunderstanding 2: If member states have not completed the transposition, companies do not need to prepare. ** Existing domestic laws, product rules, contracts and underlying directives may still apply.
• **Misunderstanding 3: RoHS exemption renewal means comprehensive relaxation. **Exemptions remain subject to specific uses, equipment categories, terms and duration.
• **Myth 4: As long as the bloc has an EU policy, countries can use the same procedures. ** Common policies can serve as a basis, but are still subject to the transposition of legislation by Member States.

Conclusion

The non-compliance decision in July 2026 reflects that a number of EU directives have entered the stage of supplementary transposition and implementation by member states. For companies, the point is not to memorize all the countries that have been notified, but to identify which regulations are truly relevant to their buildings, products, people and governance decisions.

Enterprises can first take stock of the current situation using the five main lines of EPBD, RoHS, foreign worker rights, equality and anti-SLAPP, and then track the official transposition of regulations according to the country in which they operate. In this way, policy news can be transformed into actionable information, responsibilities and improvements, while avoiding the misinterpretation of content that has not yet been completely transposed into corporate obligations that have been unanimously effective in all member states.

This article is a compilation of general information and does not constitute legal advice on individual cases. The actual applicability and effectiveness requirements shall be subject to relevant EU laws, the latest regulations of member states and instructions from the competent authorities.

##Official reference material

• European Commission：Commission takes action to ensure complete and timely transposition of EU directives
• EUR-Lex: Building Energy Performance Directive (EU) 2024/1275
• EUR-Lex: RoHS Directive 2011/65/EU
• EUR-Lex: RoHS Delegation Directive (EU) 2025/1802
• EUR-Lex: RoHS Delegation Directive (EU) 2025/2363
• EUR-Lex: RoHS Delegation Directive (EU) 2025/2364
• EUR-Lex: Single License Directive (EU) 2024/1233
• EUR-Lex: Equality Bodies Directive (EU) 2024/1499
• EUR-Lex: Equality Bodies Directive (EU) 2024/1500
• EUR-Lex: Anti-SLAPP Directive (EU) 2024/1069

Data access date: August 18, 2026.