EU rejects ISSB compliance in near-final sustainability reporting standards - Responsible Investor
The EU has rejected compliance with ISSB standards in its near-final sustainability reporting standards, meaning companies reporting under CSRD must follow ESRS instead of ISSB. This creates divergence from global standards and may increase compliance costs for multinational firms.
Aforeworn detected this change in the ESG & Climate Disclosure space on July 8, 2026 and published this briefing so affected operators are forewarned rather than caught off guard. It is rated High urgency. Public companies, large private filers, sustainability consultants, EU-market exporters should confirm how it applies to their specific situation before acting. There is a time constraint attached: First reporting for FY2024 for large public-interest entities (if already in scope); phased in for others through 2028.. Acting after that point can mean penalties, a lapsed licence, or lost eligibility — exactly the kind of surprise Aforeworn exists to prevent. Aforeworn monitors ESG & Climate Disclosure continuously and turns every detected change into a plain-English briefing like this one, so you always know first. Forewarned is forearmed.
What changed
EU's near-final sustainability reporting standards (ESRS) will not accept ISSB compliance as equivalent, requiring separate reporting under ESRS for entities subject to CSRD.
Who it affects
Public companies, large private filers, sustainability consultants, EU-market exporters
What you must do
Assess whether your entity is in scope of CSRD and prepare to report under ESRS, not ISSB. Review ESRS requirements and align data collection accordingly.
Deadline
First reporting for FY2024 for large public-interest entities (if already in scope); phased in for others through 2028.
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