Global Sustainability & ESG jurisdictional snapshot
Global sustainability regulation continues to mature toward more decision‑useful, comparable and enforceable disclosures, with increasing emphasis on data quality, governance and assurance. Over the past fortnight, regulatory developments have reinforced a clear direction of travel: fewer entities in scope, but higher expectations for those captured, particularly across the EU.
EU developments: clarity following simplification
In mid‑April 2026, EU institutions concluded the Omnibus I process, with the final Omnibus Directive now in force following publication in the Official Journal in February and application from March 2026. The amendments materially narrow the scope of both the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD), focusing mandatory obligations on the largest companies, while maintaining the EU’s broader sustainability objectives.
Key changes include higher CSRD thresholds (now limited primarily to companies with over 1,000 employees and €450 million turnover), protections for smaller value‑chain entities, simplified European Sustainability Reporting Standards (ESRS), and a refocusing of CSDDD on very large companies only. Notably, the mandatory climate transition plan requirement has been removed and penalties capped, signalling a deliberate recalibration toward competitiveness and regulatory proportionality.
Importantly, this simplification does not represent regulatory retreat. Instead, it marks a shift toward greater scrutiny, assurance and supervisory focus for in‑scope entities, with sustainability reporting increasingly embedded within mainstream corporate reporting and aligned with global baselines such as ISSB/IFRS S1 and S2.
Ireland: shift from disclosure to outcomes
In Ireland, recent supervisory messaging underscores a parallel move from disclosure‑led compliance to outcomes‑focused supervision. On 14 April 2026, industry guidance highlighted the Central Bank of Ireland’s expectation that sustainability claims - particularly in funds and financial products - must be supported by robust governance, verifiable data and demonstrable implementation across portfolio construction, controls and reporting.
This reinforces growing regulatory intolerance for “form over substance” ESG approaches. Irish‑domiciled firms are increasingly expected to evidence a clear and auditable link between sustainability commitments, investment decisions and reported outcomes.
As ESG requirements continue to shift across jurisdictions, many companies are realising they need to reassess whether they fall within scope of the new ESG rules, based on their size, structure and geographic footprint. Understanding how obligations differ by jurisdiction is critical, especially for international organisations. Having a clear, comparative view is the essential first step to responding effectively.
What this means for organisations
Taken together, recent developments confirm that ESG regulation is becoming more targeted, interconnected and enforceable. While fewer organisations may remain formally in scope, expectations around governance, assurance readiness and data quality are rising. For affected entities, the focus is shifting decisively from compliance mechanics to credible, decision‑useful sustainability information that can withstand regulatory and stakeholder scrutiny.
Download the Global ESG Jurisdictional Snapshot to access a clear, practical overview of ESG regulatory requirements across key jurisdictions. The snapshot helps organisations understand evolving reporting, due diligence and assurance expectations, supporting informed compliance planning and strategic decision‑making in a rapidly changing sustainability landscape.
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