Predictions 2026: Let’s Look at Where Reporting is Heading

Some thoughts on compliance on reporting next year, and beyond, from Stefan Premer, Director of Consulting at Sphera:

“As we edge closer to a final version of the revised ESRS, EU sustainability policy is entering a more pragmatic phase while companies continue to work against the outlined path, aiming at best practice in sustainability disclosures.

“At the same time, standards are gearing up globally toward enforceable, decision-useful sustainability information across IFRS S1/S2 and regional requirements, while methodology is evolving with the update of the GHG Protocol and its transition towards an ISO standard, the new ISO net zero aligned organizations or biodiversity standard, SBTi reconsiderations, as well as association initiatives.

“What’s emerging is a move away from fragmented to more harmonized and specific frameworks with enforceable expectations: clearer audit trails, stronger justifications and reporting systems. This aims not only to produce defensible numbers but also to provide transparency and show businesses the value of sustainability programs, beyond compliance.

“Companies that build this kind of reporting infrastructure are sharpening their competitive edge by unlocking better data that informs everything from supply chain strategy to risk management. The value comes from the ability to use sustainability data by building an ecosystem of sustainability practice as a strategic asset that drives operational efficiency, innovation and long-term resilience.

“There is a widening gap between those treating sustainability reporting as a compliance obligation and those building the underlying systems to support it in a way that extracts the most value. The latter group is better placed to adapt, whether any European sustainability regulation lands in its original form or with simplifications. The same is true globally as IFRS adoption expands and other jurisdictions strengthen their own requirements. This pushes businesses beyond disclosure, driving business value and resilience.

“In 2026, success will hinge on whether companies can enable such an ecosystem of sustainability practice. Companies need to understand how they govern sustainability, which capabilities are needed, which programs are enabled holistically, how data is managed to respond to which KPI, and how to make use of AI to simplify automation and improve quality. The goal is to connect fragmented reporting processes through a single digital backbone – one built on accurate data, clear accountability and systems that can evolve with regulation and new methodologies. Across all major standards, the differentiator will be building a foundation that delivers reporting that’s accurate, consistent and scalable and capable of supporting transformational sustainability work that creates measurable business value.”