Johann Weicht

Two recent developments give companies a clearer view of what the final shape of the landmark EU Omnibus proposal may look like. Earlier this year, the EU Omnibus and ‘stop-the-clock’ proposals outlined changes by the European Commission to reduce the reporting burden of the Corporate Sustainability Reporting Directive (CSRD), the EU Taxonomy, and the Corporate Sustainability Due Diligence Directive (CSDDD). Read more on these proposals here.

Amidst unprecedented trade and geopolitical turbulence, the European Union's agenda to increase its competitiveness by simplifying the reporting and due diligence requirements in its sustainability regulations is further taking shape. However, the process has by no means been crystallized.

In the evolving landscape of sustainability disclosure frameworks and regulations, the International Sustainability Standards Board’s (ISSB) inaugural standards bring consolidation and alignment to the sustainability disclosure field. IFRS S1 and IFRS S2 (IFRS S1/S2), issued by the ISSB in June 2023, will broadly influence both corporate strategies and market dynamics. All companies can start applying IFRS S1/S2 now, which became effective for annual reporting as of January 1, 2024.