The pressure of reporting is real. But so is the opportunity. 

Across boardrooms and strategy sessions, there is a growing recognition that sustainability is no longer a side project or a siloed report. Instead, it’s fast becoming a central pillar of long-term value creation. And as regulatory frameworks evolve, so too must the ways businesses think about sustainability – not just as a compliance exercise, but as a strategic imperative. 

Two of the most significant forces shaping this new reality are the International Sustainability Standards Board (ISSB) and the EU’s Corporate Sustainability Reporting Directive (CSRD). 

➡️ If you’re a business operating across jurisdictions or simply trying to future-proof your ESG strategy, bridging ISSB and CSRD isn’t just about keeping up. It’s about building the muscle for resilience, transparency, and trust. 

From fragmentation to integration: a strategic crosswalk 

At first glance, ISSB and CSRD may seem like vastly different frameworks. But dig a little deeper, and their differences start looking more like complementary strengths – each bringing a unique lens to the same challenge: how to measure and communicate the impact and resilience of your business in a meaningful way. 

Here’s how they compare and, more importantly, how they can work together: 

• ISSB sets the global baseline. Focused on financial materiality, the IFRS S1 and S2 standards are investor-oriented and built for global consistency. Think of ISSB as the first floor – a pragmatic, focused approach to reporting what matters most to capital markets. 

• CSRD takes a broader view in what is known as double-materiality. It asks not only how sustainability issues impact your business, but also how your business impacts the world. It dives deeper into ESG issues, is more prescriptive, and demands detailed disclosures across the European Sustainability Reporting Standards (ESRS). 

• Together? They offer a layered roadmap: use ISSB to build your foundations, then layer in CSRD to capture the fuller picture of your ESG performance and targets. 

The Omnibus Proposal: a moment to pause and recalibrate 

Just as organisations were finding their footing with CSRD, the EU’s new Omnibus Proposal was announced in what came as quite the surprise – prompting headlines, hot takes, and a wave of recalculations. 

But let’s be clear: this is not a rollback of ambition. It’s an adjustment of pace. 

➡️ Here’s what’s on the table: 

• A reduced scope, likely exempting around 80% of companies currently caught by CSRD 
• Delayed deadlines, giving organisations more breathing room to get their systems in place
• A continued commitment to double materiality, reinforcing the EU’s leadership in comprehensive ESG disclosure 
• Simplification: fewer sector-specific standards, reduced disclosure points, and limited assurance (not reasonable assurance) now required 

This is how we see it: the rules may be softening slightly, but the direction of travel hasn’t changed. If anything, the Omnibus Proposal reinforces the need to build flexible, scalable ESG strategies that can adapt to regulatory evolution – not just chase compliance checklists. 

Harmonising for impact: four strategic moves 

So how does one actually operationalise alignment between ISSB and CSRD? 

➡️ Here’s what we’re seeing work on the ground: 

1. Start with ISSB as your anchor: Use IFRS S1 and S2 to build out your climate and financial materiality disclosures. This forms a sturdy base to then expand on. 
2. Phase your CSRD alignment: Don’t try to do it all at once. Map what’s missing, plan for progressive enhancement, and prioritise the areas with the biggest material risk or opportunity.
3. Strengthen your data infrastructure and assurance pathways: Even with “limited assurance” in Omnibus, the expectation is clear: ESG data must be reliable, consistent, and verifiable. Treat it with the same rigour as financial data.
4. Build internal fluency and familiarity: This isn’t just a task for reporting teams. Leadership, finance, risk, and operations all need to understand what these frameworks mean and how they tie into broader business strategy. 

Beyond compliance: turning regulation into advantage 

It’s easy to fall into the trap of seeing sustainability reporting as a regulatory burden. This mindset misses the bigger picture. 

Aligning with ISSB and CSRD, when executed effectively, doesn’t just tick boxes – it unlocks valuable business insight, sharpens strategy, and builds stakeholder confidence. It offers businesses an opportunity to embed ESG into the DNA of the organisation in such a way that lasting value is created. 

And as frameworks continue to converge and evolve, companies that move toward interoperability now will do more than merely survive the shift – they will lead it. 

Contact our Sustainability Team for more insight and guidance >