Sustainability legislation is constantly changing and evolving, both internationally and within the European Union. These developments signal an effort to simplify some processes.ov, slowing down the implementation of others, while opening the door to new initiatives.

On international scene On July 3, the International Sustainability Standards Board (ISSB) published proposed amendments to the Sustainability Accounting Standards Board (SASB) materials that are key to the application of IFRS S1 and IFRS S2. The IFRS Foundation also issued new guidance on disclosures on June 23. climate change transition plans, taking responsibility for the work of the task force on these plans in 2024. While global authorities strengthen the sustainability framework, in the United States, the “One Big Beautiful Act” was signed into law on July 4, repealing many of the clean energy measures introduced by the previous inflation reduction act.

European Union focuses on reducing the administrative burden on companies and clarifying existing legislative frameworks. Council of the EU agreed on its mandate for the Commission's proposal under the Omnibus I package, which aims to reduce the reporting burden imposed by the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD). The Commission has previously proposed exempt 80 % companies from the scope of the CSRD by increasing the threshold for the number of employees to 1 000 and excluding listed SMEs. The Council complements this proposal by introducing a threshold for net turnover of at least EUR 450 million. For CSDDD The Council proposes to raise the thresholds to 5,000 employees and a net turnover of EUR 1.5 billion.

Further simplifications of the CSDDD concern the rules for identifying and assessing adverse impacts and transition plans for climate change mitigation, including Postponement of the obligation to adopt transition plans by two yearsThe application of the CSDDD is also postponed by one year, until 26 July 2028.

However, confusion persists around EU directives on environmental claims after the cancellation of a key meeting, with many commentators expecting it to be cancelled. On the contrary, European Parliament approved the Commission's proposal to postpone due diligence requirements under sustainable battery regulations from 2025 to 2027.

In other areas, the Commission has published a roadmap towards natural credit system and requests feedback, and also issued a call for evidence on the extension of the scope the EU Carbon Border Offsetting Mechanism (EU CBAM)For taxonomy regulation The Commission has adopted a simplification regulation, which is expected to apply from 1 January 2026. The financial sector is also under scrutiny; the European Banking Authority (EBA) has launched a consultation on revising its guidelines for the supervision of products with ESG features and risks. greenwashing, and the European Securities and Markets Authority (ESMA) published a thematic note on clear and non-misleading sustainability claims.

These steps reflect the ongoing development and adaptation of sustainability legislation to the complex challenges of today's business environment. Spring