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There have been a number of updates on sustainability reporting and due diligence requirements, both at an EU and domestic level, since our last sustainability reporting and due diligence update. In this article, we have set out a brief overview of some of the key developments that companies should be aware of.
European sustainability reporting updates
EFRAG provides technical advice on draft simplified European Sustainability Reporting Standards (ESRS) to the Commission
On 3 December 2025, EFRAG provided its technical advice on draft simplified ESRS to the European Commission (Commission). The draft simplified ESRS seek to balance usability with the need for high quality, comparable sustainability information. They introduce a range of simplifications, including:
ISSB issues targeted amendments to IFRS S2 to support implementation
On 11 December 2025, the International Sustainability Standards Board (ISSB) announced that it had issued targeted amendments to IFRS S2 Climate-related Disclosures to address early implementation challenges, providing clarifications and limited reliefs on greenhouse gas (GHG) emissions disclosures, particularly for Scope 3 and financed emissions. The amendments take effect from 1 January 2027 (with early application permitted) and are accompanied by updates related to the Sustainability Accounting Standards Board (SASB) standards to ensure alignment.
Omnibus I Directive introducing substantive amendments to CSRD published
On 26 February 2026, the directive amending the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), the Accounting Directive and the Audit Directive (the Omnibus I Directive) was published in the Official Journal of the EU. The amendments entered into force on 18 March 2026. Member states will have until 19 March 2027 to transpose the amendments to CSRD into their national laws.
For further information, please see our update on CSRD and CSDDD amendments, focused on what businesses need to know.
EU Taxonomy: Draft revisions to climate and environmental criteria
From 17 March to 14 April 2026, the Commission held calls for feedback on:
The draft delegated acts are expected to be adopted in Q2 2026.
ISSB agrees to propose requirements for nature-related disclosures
On 22 April 2026, the ISSB announced its agreement to develop guidance on nature-related disclosures through a new IFRS Practice Statement, building on the Taskforce on Nature-related Financial Disclosures (TNFD) framework. The proposed approach will support companies in applying existing requirements under IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information without introducing new obligations, with an exposure draft expected in October 2026.
Commission FAQs on Taxonomy disclosure guidance published
On 30 April 2026, the Commission published updated FAQs on Taxonomy disclosures in the Official Journal of the EU, providing practical, non-binding guidance on how to interpret and apply recent amendments to the Disclosures Delegated Act, including on the reporting of Taxonomy-eligible and Taxonomy-aligned activities and assets.
Commission consults on revised ESRS and voluntary standard
From 6 May to 3 June 2026, the Commission held calls for feedback on:
The Commission is expected to adopt the two delegated acts promptly and submit them to the European Parliament and Council for an initial two month scrutiny period, extendable by a further two months.
Irish due diligence updates
Designation of Competent Authorities for Forced Labour Regulation in Ireland
On 30 December 2025, the European Union (Prohibiting Products Made with Forced Labour on the Union Market) Designation Of Competent Authorities) Regulations 2025 were published. The regulations designate the bodies responsible for implementing and enforcing the Forced Labour Regulation (FLR) in Ireland. The Workplace Relations Commission is appointed as the competent authority for Articles 9, 10, 14, 16-22, 26(3) and (5), and 28-30 of the FLR. The relevant market surveillance authority is designated for Articles 23-25 of the FLR (for example, the Environmental Protection Agency is the relevant market surveillance authority for paints and varnishes).
Update on designation of Notifying Authority under the EU Batteries Regulation (EUBR)
On 18 March 2026, in response to a parliamentary question, the Minister of State at the Department of Climate, Energy and the Environment Alan Dillon confirmed that the department is currently considering the appropriate designation of a notifying authority under the EUBR in Ireland. The EUBR requires that all batteries placed on the EU market be certified as compliant with sustainability, safety, labelling, information, and due diligence requirements. This conformity assessment procedure must be carried out by an approved conformity assessment body. To operate as such a body, an organisation must first be authorised by the notifying authority of a member state.
Heads of the EU Deforestation Regulation Bill in preparation
On 14 April 2026, the Irish government published its Summer 2026 Legislation Programme. The EU Deforestation Regulation Bill is listed for priority drafting. Once it goes through the legislative process and is enacted, it will give effect to specific provisions of the EU Deforestation-free Products Regulation (EUDR) as required.
European due diligence updates
Legislation amending the EUDR published
On 23 December 2025, legislation amending the EUDR was published in the Official Journal of the EU. It introduced the following key changes to the EUDR:
Omnibus I Directive introducing substantive amendments to CSDDD published
On 26 February 2026, the Omnibus I Directive was published in the Official Journal of the EU. The amendments entered into force on 18 March 2026. The new CSDDD implementation deadline is 26 July 2028.
For further information, please see our update on CSRD and CSDDD amendments, focused on what businesses need to know.
Preparation of Forced Labour Regulation guidelines
From 6 February to 6 March 2026, the Commission held a call for evidence to gather stakeholder feedback to inform the preparation of guidelines supporting the implementation of the Forced Labour Regulation. These guidelines must be published by 14 June 2026 and will be structured around three main categories:
Simplification review of EUDR
On 4 May 2026, the Commission published a simplification package for the EUDR, including a report to the European Parliament and Council, an updated guidance document and Frequently Asked Questions, and a draft Delegated Act revising the product scope. The measures aim to reduce administrative burden (with estimated compliance cost reductions of up to 75%) and provide greater clarity to stakeholders ahead of the Regulation’s application.
The draft Delegated Act was open for public feedback from 4 May to 1 June 2026. It includes proposed exemptions such as product samples, certain packing materials, used and second-hand products, and waste. In addition, the Commission is updating the EUDR Information System to reflect the recent amendments to the EUDR and improve usability, including through a simplified declaration form for micro and small primary operators, updated technical specifications, contingency measures, and a new voluntary grouping feature.
For further information on any of these updates, please contact Jill Shaw, ESG & Sustainability Lead, Erin Ward, Solicitor, or any other member of the ALG ESG & Sustainability team.
Date published: 10 June 2026
