Environmental, social and governance (ESG)

This update aims to summarise the key changes to European sustainability reporting, and the implications for entities preparing sustainability reports in 2026.

The EU Council and Parliament reach an agreement that furthers progress toward the simplification of sustainability reporting and due diligence requirements.

The ISSB has amended IFRS S2 to provide targeted reliefs for companies when calculating and disclosing their greenhouse gas emissions.

The European Financial Reporting Advisory Group issues technical advice to the European Commission on revising the European Sustainability Reporting Standards.

The EU Parliament has made further progress on its position regarding proposed Omnibus changes to the CSRD and CSDDD.

The EU Parliament continues negotiations on its position regarding proposed Omnibus changes to the CSRD and CSDDD.

Mid-market firms are scaling sustainability for growth, not just compliance. Grant Thornton’s International Business Report (IBR) 2025 report reveals how sustainability investments are driving profitability, resilience and global expansion — despite regulatory shifts and political uncertainty.

The ISSB has published guidance on IFRS SDS requirements for disclosing financial effects of sustainability-related risks and opportunities.

The European Financial Reporting Advisory Group has issued 12 Exposure Drafts revising all existing ESRS, with a 60-day public consultation period.