EY CSRD Barometer 2026

The Omnibus Directive narrows scope and introduces new reliefs to reduce reporting complexity for large companies.

The second year of Corporate Sustainability Reporting Directive (CSRD) application marks notable progress in European sustainability reporting. Building on the first wave of European Sustainability Reporting Standards (ESRS)-aligned disclosures, the EY CSRD Barometer 2026 shows that, compared with last year, companies demonstrate clearer narratives, more focused double materiality assessments and improved data quality.

ESRS reporting was mandated in 22 European Economic Area Member States for financial years ending in 2025. Despite a delayed national rollout in several jurisdictions, voluntary ESRS reporting has also been widely adopted. While limited assurance is mandated under CSRD many companies have also voluntarily applied limited assurance.

The EY CSRD Barometer 2026 assesses 196 sustainability statements prepared for the 2025 financial year, predominantly by first-wave CSRD reporters.

Key insights from the second year of CSRD reporting

• Reporting maturity improves while report volumes decline

Companies continue to streamline sustainability statements, reducing average length while expanding the depth and consistency of reported data.

• ESRS 2 general disclosures form a stable baseline

General disclosures under ESRS 2 are now well established. Governance, strategy and value-chain information is typically integrated into broader business reporting, often through cross-referencing.

• Climate change, workforce and business conduct dominate materiality

ESRS E1 Climate change, ESRS S1 Own workforce and ESRS G1 Business conduct remain the most frequently identified material topics. While climate transition plans and decarbonization measures are widely reported, alignment with 1.5°C pathways, greenhouse gas (GHG) Scope 3 management and financial resourcing remain uneven. Workforce reporting shows a more advanced but selective pattern, and business conduct disclosures continue to reflect entity-specific information with a focus on corporate culture and anti-corruption.

• Limited assurance becomes the norm

Nearly all sustainability statements analyzed are subject to limited assurance, predominantly provided by statutory financial auditors. Reasonable assurance remains uncommon and is typically limited to selected metrics.

The second year of ESRS reporting confirms that companies have moved beyond initial compliance toward more structured sustainability reporting. However, further progress is needed to improve consistency, strengthen integration with business strategy and enhance decision-usefulness. As CSRD requirements continue to evolve, sustainability reporting is set to play an increasingly central role in driving resilience, accountability and long-term value creation.