ESRS - Automatic XBRL tagging

Companies subject to sustainability reporting must soon file digitally tagged financial statements under new PRH requirements. What does this mean in practice, and when does it apply? This article explains who is affected, which taxonomies to use, and how SBR tagging can fit into your existing reporting process.

Sustashift has acquired Tofuture's business, expanding to around 60 customers across 5 countries and advancing its goal of building the market-leading sustainability reporting platform.

Companies are under growing pressure to reduce emissions but many strategies still fail in execution. What separates credible climate action from empty promises? This article explores how businesses can build realistic, data-driven emissions reduction strategies that strengthen both sustainability performance and long-term competitiveness.

As the Carbon Border Adjustment Mechanism moves into its definitive period, CBAM is becoming more than a regulatory compliance matter. It is also a question of cost management, pricing, and commercial preparedness. For many companies importing CBAM goods, one of the most practical challenges is understanding how CBAM will affect raw material costs and how those cost effects should be reflected in product pricing.

In December 2025, the EU adopted several implementing regulations governing the definitive (obligation) phase of the Carbon Border Adjustment Mechanism (CBAM), as well as a proposal to extend CBAM’s scope in the future. Several key provisions of this extensive regulatory package (approx. 5,000 pages) apply across all EU Member States as of 1 January 2026.

The business environment is evolving continuously. Geopolitical tensions, changes in climate and regulation, and rising stakeholder expectations are challenging traditional management models. Amidst these dynamics, risk management and corporate responsibility should no longer operate as separate processes but as interconnected systems with a shared objective: safeguarding business continuity and building long-term success on a sustainable foundation.

In December 2025, EFRAG delivered its draft Simplified European Sustainability Reporting Standards (ESRS) to the European Commission as technical advice. The Commission is expected to adopt the proposed amendments through a delegated act in the first half of 2026. The revised sustainability reporting standards are intended to reduce the reporting burden for undertakings by introducing greater flexibility in CSRD reporting, while retaining the core objectives of the EU Green Deal. The content of the revised ESRS has been shaped through extensive outreach and consultations involving more than 700 stakeholders, including preparers, sustainability assurance providers and investors.

The Carbon Border Adjustment Mechanism (CBAM) is an EU instrument aimed at preventing carbon leakage, meaning the shifting of emissions outside the EU. Carbon leakage refers to a situation where companies operating within the EU transfer their carbon-intensive production to countries with looser climate policies than the EU, or when products manufactured in the EU are replaced by imported products with a larger carbon footprint.

Green finance involves financial tools that support environmentally sustainable development by directing capital to projects that use natural resources responsibly and promote a low-carbon economy. Sustainable finance is a broader concept that includes green finance, addressing environmental, social, and governance (ESG) factors.

The Science Based Targets initiative (SBTi) helps companies set greenhouse gas (GHG) emission reduction targets in line with the Paris Agreement’s 1.5°C goal, the EU Green Deal, and the global net-zero by 2050 pathway. SBTi is the leading science-based framework for corporate climate action, with over 11,500 companies worldwide already committed.

A climate roadmap is an essential tool for companies that want to secure their competitiveness and responsibility in the future. It provides clear direction, facilitates decision-making, and strengthens stakeholder trust.

The Omnibus I Directive proposal introduces changes to the Corporate Sustainability Reporting Directive (CSRD), with the goal of simplifying and easing the reporting burden for companies.

VSME (Voluntary Sustainability Reporting Standard for Non-Listed SMEs) is the EU’s new voluntary sustainability reporting standard for small and medium-sized unlisted companies. VSME is a simplified and effective way to report ESG data in alignment with the CSRD and ESRS frameworks.

The European Union has adopted a new industry-wide regulation (2023/1115) to reduce deforestation and forest degradation worldwide. The regulation introduces important new obligations to ensure traceability and sustainability of the origin of the products it covers.

CSRD introduces strict sustainability reporting standards, requiring entities to assess double materiality, meet ESRS requirements, and digitally tag reports. Learn who it applies to, what's required, and how to prepare effectively.