The end of the year has seen important updates and shifts in the sustainability regulation and reporting landscape.
Notably, the Council of the EU and the European Parliament have recently announced a political agreement – which has just been officially approved by the EU Parliament – to streamline sustainability reporting and due diligence obligations. The aim is to simplify the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) by reducing the reporting burden and limiting the trickle-down effect of obligations on smaller companies across the EU.
Simplified reporting rules to ease compliance, particularly for small and medium-sized enterprises.
More time to implement due diligence processes, supporting greater consistency across sectors.
A focus on balancing sustainability objectives with economic resilience.
We've also seen updated technical advice from EFRAG on the simplified European Sustainability Reporting Standards (ESRS) – which also has implications for those preparing for CSRD – as well as new adjustments to the EU Deforestation Regulation. You can learn about these updates and more below.
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European Sustainability Reporting Standards (ESRS)
On 3 December 2025, EFRAG delivered its final technical advice to the European Commission on the 12 draft simplified ESRS.
Key headlines include:
71% fewer datapoints than the original ESRS
Improved interoperability
with ISSB
Fair presentation and proportionality principles applied
Sound like progress? It depends on your perspective.
While simplification makes ESRS more practical and easier to implement, it also raises questions about reduced scope and standardisation—especially with revised thresholds still pending.
On a positive note, we are pleased to see:
More understandable, principles-based standards
Greater flexibility in presentation
Reliefs and phased implementation for challenging datapoints
A new ESRS Knowledge Hub as a digital gateway to sustainability reporting
For preparers working toward CSRD-aligned disclosures in 2026, these changes will significantly impact planning and execution. At Anthesis, we combine sustainability, reporting, and assurance expertise to help businesses adapt and deliver credible, future-ready disclosures.
Motala Sign Nordic AB, a Swedish importer and distributor of aluminium and steel signs and displays, needed to monitor and report embedded emissions for CBAM-covered imports from outside the EU. They engaged Anthesis to meet these reporting obligations and to understand the associated financial risks.
Stefan Högberg
VD
Motala Sign Nordic SH AB
“CBAM was a significant challenge, but Anthesis supported us throughout the entire process and helped us achieve full compliance. Their expertise, user-friendly tools, and clear guidance made the journey manageable and gave us valuable insight into both regulatory requirements and associated costs.”
Due diligence guidelines are a cornerstone of the EU Batteries Regulation (EUBR), addressing human rights, environmental, and social risks in the batteries supply chain. The aim is to prevent human rights abuses, environmental degradation, and conflict financing in the sourcing of critical raw materials.
In today’s market, value creation extends beyond mainstream financial metrics. Investors demand credible ESG performance, regulators mandate sustainability disclosures, and public stakeholders demand transparency. As a result, ESG is no longer a siloed, perception-driven exercise but is now strategically embedded in business planning, delivering measurable value under financial, regulatory, and competitive pressures.
INSIGHTS | Strengthening Human Rights Due Diligence
The Human Rights team at Anthesis recently conducted a two-day supplier site visit in Rio de Janeiro, Brazil, as part of a Human Rights Risk Assessment for a global energy client. In our recent insights, we explore their key takeaways and the actions businesses can start taking to meet today’s human rights requirements and expectations.
Contact us for the latest insights and to learn more about our solutions.
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