Below is an excerpt from ISS-Corporate’s recently released article “EU Sustainability Rules Reset: What the 2026 Changes Mean”. The full article is available on ISS-Corporate’s resources page.
After months of uncertainty and stalled progress, the EU’s sustainability framework closed 2025 with more clarity and purpose. The agreements reached between the European Parliament and Council in December ended the regulatory limbo, which had stalled numerous corporate initiatives.
Yet this clarity came with longer-term strategic considerations for companies to assess. The recalibration of the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) and the simplification of the European Sustainability Reporting Standards (ESRS) reduce the scope and depth of sustainability-related reporting, due diligence, and action in the EU at a time when climate, environmental, and social pressures instill urgency. While easing near-term compliance burdens, the agreed amendments also introduced uncertainty around future reporting expectations and the degree of alignment between regulatory frameworks, business strategy, and sustainability-related risk management in the EU.
By:
Reinhilde Weidacher, Managing Director, Global Head of Corporate Sustainability Services, ISS-Corporate
