---
title: "The New CSRD Reality: What Changed and What Companies Should Do in 2026"
description: Sustainability experts discussed the new CSRD reality and what companies should focus on in 2026 and beyond. This article includes the key takeaways.
---

[News & Blog | Inogen ](https://www.inogenalliance.com/news-blog)

# [The New CSRD Reality: What Changed and What Companies Should Do in 2026](https://www.inogenalliance.com/news-blog/the-new-csrd-reality-what-changed-and-what-companies-should-do-in-2026)

 Written by [Anna Csonka, denxpert; and Valentina Vieri, HPC Italy](https://www.inogenalliance.com/news-blog/author/anna-csonka-denxpert-and-valentina-vieri-hpc-italy) | April 15, 2026

The Corporate Sustainability Reporting Directive (CSRD) has quickly become one of the most significant developments in sustainability reporting globally. However, recent regulatory updates from the European Union—particularly the **Omnibus Simplification Package**—have reshaped the landscape.

These changes have created both **relief and uncertainty** for companies. While the scope of CSRD has narrowed and reporting requirements have been simplified, many organizations are now asking the same questions:

During a recent webinar hosted by Inogen Alliance, sustainability experts discussed the **new CSRD reality and what companies should focus on in 2026 and beyond**. Below are the key takeaways.

 

### [Find the full on-demand webinar recording and materials here!](https://www.inogenalliance.com/new-csrd-reality-what-changed-and-what-do-2026)

 

 

## **Why CSRD Was Revised**

When CSRD was first introduced, it significantly expanded the number of companies required to disclose sustainability information using the **European Sustainability Reporting Standards (ESRS)**.

However, many organizations raised concerns about the **complexity and administrative burden** associated with implementation. In response, the European Commission introduced the **Omnibus Simplification Package**, designed to:

As a result, the scope of CSRD has been **significantly reduced**, and reporting requirements have been simplified.

 

## **New CSRD Scope: Who Must Report Now?**

Under the revised rules, the threshold for companies required to report under CSRD has increased.

Companies must now meet **both** of the following criteria:

This simplified threshold now applies to both listed and non-listed companies.

**Reporting Timeline**

The implementation timeline also changed:

| **Company Type** | **First Reporting Year** | **Report Published** |
| --- | --- | --- |
| Large listed companies already subject to CSRD | FY2024 | 2025 |
| Large non-listed companies (>1000 employees) | FY2027 | 2028 |
| Non-EU companies meeting revenue thresholds | FY2028 | 2029 |

The Omnibus package also introduced a **“stop-the-clock” delay**, giving many companies additional time before reporting requirements begin.

 

## **Major Changes to the ESRS Reporting Standards**

Along with narrowing the scope, regulators also introduced **simplified ESRS standards (ESRS Set II)**.

The goal is to make sustainability reporting **more practical and user-friendly**.

 

### **Key Improvements**

The revised standards include:

**1. Simplified structure and language**  
Reporting standards have been rewritten to improve clarity and usability.

**2. Fewer data points**  
Data disclosure requirements were reduced by approximately **60%**, primarily by removing overlapping narrative requirements.

**3. More flexibility for companies**  
Companies now have greater flexibility in determining how to disclose sustainability information.

**4. Greater focus on decision-useful information**  
Instead of reporting everything possible, organizations must ensure their reports provide a **“fair presentation”** of sustainability performance.

This principle—borrowed from financial reporting—means companies must disclose information that is **relevant and meaningful for stakeholders and investors**.

 

## **What Has Not Changed**

Despite these simplifications, several core elements of CSRD remain unchanged.

**Metrics Are Still Required**

Key sustainability metrics remain central to reporting, including:

These metrics require **robust data collection and management systems**, which remain one of the most challenging aspects of implementation.

 

## **Double Materiality Remains Critical**

The **double materiality assessment (DMA)** continues to be the foundation of CSRD reporting.

This process requires companies to assess:

Organizations must identify their **material sustainability topics** and disclose relevant data accordingly.

Increasingly, companies are integrating DMA results with **enterprise risk management systems**, aligning sustainability risks with broader corporate risk frameworks.

 

## **Assurance Requirements Still Apply**

Companies subject to CSRD must still undergo **limited assurance audits** of their sustainability reports.

While earlier plans called for transitioning to more rigorous **reasonable assurance**, that requirement has been removed.

However, organizations should still expect **detailed scrutiny of sustainability data and documentation**.

 

## **What Happens If Your Company Falls Out of Scope?**

One of the biggest impacts of the Omnibus package is that **many companies previously preparing for CSRD are no longer required to report**.

However, this does not mean sustainability reporting will disappear.

Companies may still choose to report voluntarily for several reasons:

For these organizations, a new voluntary framework has emerged.

 

## **Voluntary Sustainability Reporting for SMEs**

The European Financial Reporting Advisory Group (EFRAG) introduced the **Voluntary Sustainability Standard for SMEs (VSME)**.

This framework is designed for companies that are **not subject to CSRD but still need to provide sustainability information**, especially within supply chains.

**Key Features**

The VSME framework includes:

The framework also supports companies supplying larger organizations that must report under CSRD.

 

## **Why Companies May Continue ESG Reporting Anyway**

Even with regulatory relief, most companies are **not abandoning sustainability reporting**.

Global surveys consistently show that organizations see ESG reporting as valuable for:

In addition, sustainability reporting regulations continue to expand globally in regions such as:

As a result, many companies are continuing to build ESG reporting capabilities regardless of CSRD scope.

 

## **Practical Steps for Companies in 2026 for CSRD**

Organizations navigating the new CSRD landscape should focus on the following priorities.

**1. Determine Your Regulatory Scope**

Confirm whether your organization falls within the updated CSRD thresholds or qualifies for voluntary reporting.

**2. Strengthen Sustainability Data Systems**

Reliable ESG data collection and documentation remain essential—especially for metrics related to emissions, energy, and workforce indicators.

**3. Align Sustainability With Risk Management**

Integrating sustainability risks into enterprise risk management systems can improve governance and reporting consistency.

**4. Consider Voluntary Reporting**

Companies outside CSRD scope may still benefit from adopting:

**5. Prepare for Ongoing Regulatory Evolution**

Sustainability reporting frameworks are still evolving. Companies should monitor upcoming developments such as:

 

## **The Bottom Line**

The Omnibus Simplification Package has changed the scope of CSRD—but it has not eliminated the importance of sustainability reporting.

Instead, the EU is moving toward a **more focused, flexible approach** that emphasizes meaningful sustainability insights over excessive disclosure.

For companies operating globally, the message remains clear:

**Sustainability transparency is becoming a business expectation, not just a regulatory requirement.**

Organizations that invest now in strong ESG data systems, governance processes, and reporting frameworks will be best positioned to navigate the evolving sustainability landscape.

If you would like support understanding how CSRD changes affect your organization—or how to implement voluntary ESG reporting frameworks—**Inogen Alliance experts across our global network are ready to help.**

 

Inogen Alliance is a global network made up of over 70 of independent local businesses and over 6,000 consultants around the world who can help make your project a success. Our Associates collaborate closely to serve multinational corporations, government agencies, and nonprofit organizations, and we share knowledge and industry experience to provide the highest quality service to our clients. If you want to learn more about how you can work with Inogen Alliance, you can explore [our Associates](https://www.inogenalliance.com/our-associates) or [Contact Us](https://www.inogenalliance.com/contact). Watch for more [News & Blog updates](https://www.inogenalliance.com/news-blog), listen to [our podcast ](https://www.inogenalliance.com/podcast)and follow us on [LinkedIn](https://www.linkedin.com/company/inogen-environmental-alliance/mycompany/?viewAsMember=true). 

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