What’s on the Sustainability Reporting Agenda for 2026: EFRAG and IFRS Workplans

EFRAG and the ISSB both have active 2026 work plans, and together, their agendas will define what companies are expected to report and how.

In April, the European Financial Reporting Advisory Group (EFRAG) submitted its 2026 work plan to the European Commission, outlining its intentions to continue standard-setting and guidance development.

Meanwhile, the International Sustainability Standards Board (ISSB) is in the last year of its 2024-2026 agenda, with active projects on nature, human capital, and global implementation support.

Taken together, these plans signal a period of consolidation and simplification for corporate reporting.

EFRAG’s 2026 Priorities: Refining Standards, Implementation Support, and Digitalization

EFRAG’s Sustainability Reporting Work Programme 2026 continues its focus on providing strong technical advice and supporting the practical use of ESRS. A key part of the plan is creating standards for non-EU groups (N-ESRS). EFRAG plans to release a draft of these requirements in July 2026, followed by a 100-day public consultation. Their final technical advice will go to the European Commission in early 2027. This step will expand the ESRS framework, making sure that multinational companies based outside the EU follow the same disclosure standards when operating within it.

EFRAG will also keep working to make sustainability reporting easier and less burdensome, while making sure disclosures remain reliable and comparable. The program will advance the reporting system for small and medium-sized enterprises (SMEs) with training and support for voluntary reporting.

EFRAG also plans to provide guidance, support, and assessments for topics like anticipated financial effects of sustainability issues and voluntary reporting practices.

EFRAG Work Plan

ISSB 2026 Priorities: Nature, Human Capital, and SASB Enhancements

Now in year three of its 2024–2026 agenda, the ISSB is making progress on several important standard-setting projects. By mid- to late 2026, the ISSB plans to release proposals for a Practice Statement on nature-related disclosures (in lieu of a separate standard). These proposals will cover nature-related targets, location-specific information, and guidance for identifying nature-related risks and opportunities that could affect business prospects.

At the same time, the ISSB is reviewing feedback on two items under its purview: proposed changes to the SASB Standards and industry guidance for using IFRS S2 on climate.

Supporting the rollout of IFRS S1 and IFRS S2 remains the ISSB’s top priority.

ISSB Work Plan

A Shared Push for Interoperability

An important thread connecting both work plans is a concerted effort to reduce reporting fragmentation. Under its Work Programme for the year, EFRAG plans to deepen alignment between the ESRS and the ISSB standards, the Global Reporting Initiative (GRI), and the GHG Protocol, with the goal of reducing fragmentation for companies reporting under multiple regimes.

The ISSB has been pursuing parallel efforts on this front. During its current work plan, it aims to further harmonize the global sustainability reporting landscape. This entails crafting strategic relationships with the UK’s Transition Plan Taskforce, the GHG Protocol, CDP, the Taskforce on Nature-related Financial Disclosures, and GRI. For multinational companies navigating overlapping European and global requirements, these alignment efforts could reduce compliance complexity in time.

Of note, in early May 2026, the European Commission released an updated draft final ESRS for public feedback. While the updated draft standards are significantly simplified, the Commission rejected measures allowing companies complying with ESRS to also comply with ISSB simultaneously. The disagreement centered on materiality. The EU’s CSRD requires ‘double materiality’ reporting, covering both how sustainability issues affect a company financially and how the company affects the world. The ISSB focuses primarily on financial impacts to investors. The European Commission was concerned that allowing simultaneous compliance would undermine the CSRD’s policy objectives and place too much emphasis on the investor-focused lens. Despite this, there remains a high level of alignment between the ESRS and IFRS standards.

Looking Ahead: It’s Time to Get Involved

At G&A Institute, we view the 2026 and 2027 work plans from EFRAG and the ISSB as strong evidence that sustainability reporting is becoming more unified. Key deadlines are approaching: EFRAG’s N-ESRS exposure draft is expected in July 2026, the ISSB’s nature-related disclosures exposure draft should be released in the second half of 2026, and the SASB Standards and IFRS S2 guidance are already being updated. Companies should pay attention, as these processes are ongoing and there is still an opportunity to help shape the results.

If your company already reports under CSRD or is getting ready to do so, now is the time to review how upcoming changes and N-ESRS requirements could affect your disclosure obligations, especially if you are part of a non-EU group. For companies following the ISSB approach, the growing focus on nature and human capital means that reporting only on climate will soon fall short of expectations from investors and regulators.

Most importantly, since ESRS, ISSB standards, GRI, and the GHG Protocol are all moving toward greater alignment, companies should avoid creating separate reporting processes for each framework. Investing now in integrated data systems and mapping across frameworks will put your company in a much stronger position as these standards come together.

In summary, the path forward is clear. Companies that get involved with these work plans early, instead of waiting for the final standards, will spend less time trying to catch up and more time sharing a clear sustainability story.

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Founded in 2006, Governance & Accountability Institute (G&A) is a New York–based sustainability consulting and research firm advising corporate leaders and investors at the intersection of strategy, governance, and regulation. For two decades, we have partnered with executive teams and boards to translate sustainability strategy into durable enterprise value — helping organizations navigate shifting market expectations, evolving policy landscapes, and increasing capital markets scrutiny. Set up a call to learn more about how we can help your company.

Christina Carlton

Christina Carlton is a Senior Sustainability & Climate Analyst at Governance & Accountability Institute. She supports both sustainability and climate engagements, and her work bridges sustainability planning and reporting with targeted climate initiatives, helping companies enhance their ESG performance and integrate resilience into their overall sustainability frameworks.