3. Explain that regulation is not going away
Sustainability regulations aren’t going away—if anything, they’re evolving and expanding. While some frameworks like the CSRD have faced implementation delays, this shouldn’t be mistaken for a slowdown in expectations. If anything, the pressure on businesses is intensifying—from investors demanding transparency, to partners and clients requiring ESG data, to regulators preparing for broader rollouts.
Proactive compliance now offers a competitive edge: it allows companies to build the internal knowledge, systems, and strategies they’ll need to stay ahead. Rather than scrambling to meet shifting rules, businesses that invest early can respond with confidence, reduce risk, and unlock strategic value. In a fragmented, fast-moving regulatory landscape, readiness is resilience—and data is your most powerful asset.
The future of CSRD
The European Union’s Corporate Sustainability Reporting Directive (CSRD) is here to stay, albeit with some delays and adjustments from the original version.
What’s changed:
- Delay approved: Reporting for “Wave 2 and 3” companies (originally due in 2026–2027) postponed by two years.
- Scope narrowed: Only large companies with 1,000+ employees and significant turnover or balance sheets now required to report.
Fewer companies may be required to comply with the CSRD—for now. Expectations from stakeholders however, won’t ease, and the companies that prepare now will lead later.
ISSB and global rules
Beyond Europe, sustainability regulation is accelerating. ISSB-aligned standards are being adopted worldwide. The states of California and New York are leading the way in the U.S. with mandatory climate disclosures. Even if your organization is not yet directly subject to regulations, the chances are your customers or investors are—and that means there’s pressure on you to comply.
Voluntary reporting
Voluntary reporting is a strategic move. Use this time to educate your teams, map your exposure, and build strong data systems.
Reliable ESG data isn’t just valuable for compliance—it helps identify risks, guide investment, and future-proof decision-making.
The main takeaway: Regulation is tightening. The companies that prepare now will stay compliant—they’ll move faster, build trust, and lead the market.