Skip to content
Thursday, October 29, 2026 · Today’s edition, 6:30 a.m. ETThu, Oct 29 · 6:30 a.m. editionSign inMy Desk 0EditionsSign in

Simpler EU rules don't mean easier ESG work

A guest essay argues the ESRS and CSDDD reset is changing where sustainability work happens, even as research shows disclosure quality erodes with volume.

At a glance

  1. The article, published Sept. 2, reads that drop as evidence that the 2026 reset is settling in: changes to the ESRS and the phased implementation of the CSDDD have given businesses greater clarity while the EU's 2026 measures narrowed reporting requirements and trimmed some due-diligence burdens.
  2. In their survey, 66% of organisations increased supply-chain transparency and risk-management efforts, up from 53% last year, while investment in sustainability and risk-management software rose from 19% to 36%.
  3. The authors also use the reset to surface a quality problem, citing a meta-study of more than 15,000 sustainability disclosure documents that found average reports became less specific, less quantitative and more promotional as reporting spread.

In the survey cited by a new ESG Today guest essay, only 5% of organisations say they are waiting for the EU to clarify its sustainability rules before acting, down from 12% a year earlier. The article, published Sept. 2, reads that drop as evidence that the 2026 reset is settling in: changes to the ESRS and the phased implementation of the CSDDD have given businesses greater clarity while the EU's 2026 measures narrowed reporting requirements and trimmed some due-diligence burdens. After years spent preparing for disclosure rules, the authors argue, the conversation has moved to what sustainability can deliver for resilience, risk management and growth.

That sharper view is already shifting corporate priorities, the authors say. In their survey, 66% of organisations increased supply-chain transparency and risk-management efforts, up from 53% last year, while investment in sustainability and risk-management software rose from 19% to 36%. Integrating sustainability into strategy, operations and product portfolios now ranks among leading executive priorities ahead of producing disclosures and external communications.

The authors also use the reset to surface a quality problem, citing a meta-study of more than 15,000 sustainability disclosure documents that found average reports became less specific, less quantitative and more promotional as reporting spread. In their telling, more reporting did not automatically mean better reporting, and simpler reporting will not automatically make the underlying task easier.

That is the right way to read the reset: the burden is being moved, not lifted. The EU's 2026 changes reduced some reporting and due-diligence requirements, but the operational exposure behind climate, circularity and social-impact programs survives the paperwork cut. The sharp fall in the share of organisations waiting for clarity suggests most companies have already reached that conclusion. Companies that treat the narrowed disclosure perimeter as permission to shrink internal programs will likely find themselves rebuilding capability when the next phase of the rulebook arrives, and investors will care less about how many reports land than how specific they are.

The essay does not ask for further rule changes; its prescription is managerial: use the planning certainty the 2026 reset provides to deepen work already underway. For policy watchers, the more telling shift is where the burden sits now that the compliance question is largely settled, as the 5% waiting figure suggests. The harder question is whether the disclosures Europe does collect will be worth reading.

Reported by the Policy & Disclosure desk from ESG Today. Published . Corrections

Related

Sustainable Investing

EU Platform, Eurosif urge EFRAG to drop mixed approach in non-EU ESRS

The option would let large non-EU companies report non-climate impacts on EU sales and operations alone from 2029.

Sustainable Investing

Singapore limits Scope 2 REC claims to grid-supplied power

Updated SS 673 standard accepts certificates from Singapore generation and approved import projects physically connected to the grid.

Sustainable Investing

15 institutions urge ISSB to make nature reporting mandatory

The signatories, including Federated Hermes and Rabobank, say a voluntary practice statement risks fragmented disclosures across jurisdictions.

Sustainable Investing

Tropical Forest Finance Facility seeks $100bn from bond investors

The facility has $7.8 billion in sovereign backing toward a $125 billion target, including a $500 million pledge from the Netherlands at COP17.

Sustainable Investing

JPMorgan widens what counts toward its $2.5 trillion green goal

The bank reported $217 billion of sustainable-development financing in 2025 and a 2035 target to cut its power portfolio's carbon intensity by 79%.

ESG Capital Dailyfrom Private Wealth Daily

Transition funds, stewardship and the rules behind sustainable labels. Daily at 7:10 a.m. ET.

Free. Every morning. Unsubscribe from any edition in one click.

From other sections