2025 updates for GRI, TNFD, and ESRS

2025 has seen various updates to ESG regulation and reporting, bringing key updates that will shape how organisations approach sustainability in the coming year. As companies prepare for another year of evolving sustainability expectations, we have some key takeaways from the past year.

Q1:

In February, the European Commission published the first “Omnibus” package aimed at tackling the reporting burden of the EU Green Deal. The package included the contract proposal, a draft directive to reduce the scope of organisations subject to the CSRD. Other than the CSRD, the Omnibus package was also set to affect the CSDDD, CBAM, and the EU Taxonomy Regulation.

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The main changes proposed by this package include:

• Significant reduction in the number of companies reporting under the CSRD, by approximately 80% 
• Focus on quantitative data and clearer instructions for materiality assessments
• Greater alignment with global standards and regulation 

Q1 also saw the widespread adoption of the ISSB standards. The ISSB standards (IFRS S1 and S2) provide a global baseline for sustainability reporting, and while they became effective in January 2024, their mandatory application depends on individual jurisdictional endorsements. The UK government initiated plans to endorse ISSB standards for use in Q1 2025, with this decision eventually being finalised by the Department for Business and Trade (DBT) in June.

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Q2:

July saw updates to the ongoing development of some GRI (Global Reporting Initiative) standards. GRI is currently advancing changes to GRI 102: Climate Change and GRI 103: Energy - together these two standards are designed to strengthen the quality and consistency of climate related disclosures, with an emphasis on clearer reporting requirements and improved compatibility between companies and sectors. This development also enables a higher degree of alignment across other global frameworks such as TNFD, ISSB and SASB. GRI’s alignment with the GHG Protocol in particular reinforces the need for a more holistic approach to ESG reporting as a common foundation between frameworks allows for companies to meet global reporting needs more efficiently and consistently.

Both of these GRI updates are currently scheduled to take effect in January 2027 giving organisations the opportunity to assess data gaps, refine governance structures and adapt internal processes ahead of time.

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Q3:

In September the Taskforce on Nature-related Financial Disclosures made steps in publishing their 2025 Status Report, marking two years since its final disclosure recommendations were released in September 2023. The report reflects the uptake of nature-related assessments and reporting, with more than 500 companies now publishing first and second generation reports aligned with TNFD. Many early reports have started with the existing water, waste and forestry indicators to kick off new forms of reporting.

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TNFD has published its 2025 Status Report, two years after making its final disclosure requirements in September 2023. The report reflects the uptake of nature-related assessments and reporting, while also highlighting the risks around potential data gaps. It has been found that of the 500+ companies publishing 1st and 2nd  generation reports aligned with TNFD, many have started with existing water, waste and forestry indicators as a starting point for new forms of reporting. The scope of TNFD adoption is reflected by the following:

• 620 organisations from over 50 areas have publicly committed to reporting aligned with TNFD standards.
• 63% of companies and financial institutions support the idea that their nature-related issues are as significant as climate related ones regarding the future financial prospects of their business practices.
• 78% of surveyed companies that have already published their reports, have integrated the TNFD recommended presentation of their climate and nature reporting.

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‍Q4:

In December the European Financial reporting Advisory Group (EFRAG) submitted its technical advice on the simplified ESRS standards to the European Commission. This package includes 12 draft standards, a detailed annex with acronyms and a glossary of terms, and a mark-up version of each standard that shows proposed changes. These efforts aims to reduce complexity while maintaining the quality and usefulness of sustainability disclosures.

Together, these initiatives signal the possible changes we can expect to see in the next year of ESG reporting.

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