Businesses with complex supply chains and financial institutions may need to strengthen governance and oversight of value chain emissions data ahead of future reporting expectations.
Stay informed with regulations, insights & events by joining our mailer
Here at Ever we’ve distilled the latest sustainability regulatory developments into five key updates organisations should be aware of.
TISFD publishes first draft social disclosure framework
- The Taskforce on Inequality and Social-related Financial Disclosures (TISFD) released Beta Version 0.1 of its framework, for reporting on social-related dependencies, impacts, risks and opportunities (DIROs). The iterative process includes a stakeholder feedback period open until 31st July 2026 ahead of further beta releases and final recommendations expected in 2027.
- Priority areas for further development include system-level social risk assessment, scenario analysis, metrics and targets, and guidance on the interconnectedness of people, nature and climate.
- TISFD aligns with ISSB, GRI and ESRS, and structurally mirrors the TCFD and TNFD frameworks to support more integrated disclosures across people, climate and nature.
Why it matters
- The release of TISFD’s beta framework provides an early indication of where expectations around social-related disclosures are heading with growing momentum toward more consistent and decision-useful social-related disclosures.
- TISFD aims to improve comparability across reporting frameworks while strengthening business decision-making and investor insight on social issues
Next steps for your organisation
- For organisations preparing for UK SRS or IFRS S1 reporting, the framework may provide a useful starting point for integrating social-related DIROs into reporting, governance and transition planning processes, while strengthening connectivity between climate, nature and social considerations ahead of future compliance requirements.
ESRS revisions: simplification without abandoning double materiality
- In May, the European Commission released its revised ESRS draft following the Omnibus process. The draft confirms that double materiality will remain central to CSRD reporting, while introducing simplification measures designed to reduce reporting burden.
- Key changes include stronger emphasis on a proportionate “top-down” materiality assessment approach and significant phase-in reliefs for FY27 reporters, including delayed disclosure requirements for certain environmental and social datapoints.
- The Commission is expected to adopt the ESRS Delegated Act by mid-September 2026 at the latest, though market commentary suggests potential adoption as early as July.
- The Commission also clarified through changing language that organisations “shall not” disclose immaterial information.
Why it matters
- The revisions provide greater flexibility in how organisations approach materiality assessments and disclosures.
- The Commission’s clarified wording around immaterial disclosures should support more focused, streamlined and decision-useful reporting.
Next steps for your organisation
-
Organisations undertaking first-time or refreshed DMAs can adopt a more strategic and less-exhaustive top-down approach, supported by internal governance structures, peer benchmarking and subject matter expertise.
EU sustainability regulation: simplification, but not rollback
-
In April, the EU amended the European Climate Law to introduce a binding target to reduce net greenhouse gas emissions by 90% by 2040.
-
This strengthens the EU’s long-term decarbonisation pathway and is expected to drive further review of related legislation, including EU ETS, carbon removals and transition finance frameworks.
Why it matters
- The developments reinforce that long-term climate policy ambition remains unchanged despite broader sustainability reporting simplification efforts.
- Expectations around credible transition planning and climate performance are likely to continue increasing.
Next steps for your organisation
- Organisations should continue strengthening transition planning, sustainability governance and climate data capabilities, while integrating sustainability considerations into financial planning and investment decisions.
Sustainability reporting standards: convergence around ISSB continues
- In April, the ISSB advanced work on nature-related disclosures, including proposals for more location-specific reporting on biodiversity, land and water-related risks.
- The ISSB intends to develop these requirements through an IFRS Practice Statement, rather than a standalone biodiversity standard, providing implementation guidance under IFRS S1 while supporting stronger connectivity between climate-, nature- and biodiversity-related DIROs.
Why it matters
- The proposals signal growing expectations for more granular and financially relevant nature-related disclosures.
- Alignment with ISSB may also support greater consistency across emerging UK SRS reporting expectations.
Next steps for your organisation
-
Organisations preparing for UK SRS can begin integrating biodiversity-related DIROs into broader sustainability and enterprise risk management processes, following the requirements within UK SRS S1 and TNFD recommendations.
Scope 3 expectations continue to evolve
-
In March 2026, the Greenhouse Gas Protocol released a progress update outlining potential revisions to the Scope 3 Standard.
-
Proposed changes introduce a requirement to report at least 95% of required Scope 3 emissions, strengthen data quality expectations, and create an optional Scope 3 category for facilitated emissions, “Category 16”.
Why it matters
-
The proposed revisions signal a shift toward more comprehensive and decision-useful value chain emissions reporting.
-
Expectations around Scope 3 transparency, supplier engagement and emissions data quality are continuing to increase.
Next steps for your organisation
-
Organisations should review current Scope 3 data collection, estimation methodologies and supplier engagement processes.
-
Businesses with complex supply chains and financial institutions may need to strengthen governance and oversight of value chain emissions data ahead of future reporting expectations.