2025 was a year of major movement within the sustainability field. After an intensive period of interpreting CSRD and ESRS, the picture has gradually become clearer — while decisions, simplifications and timelines have taken shape.
We are now seeing a shift in both sustainability reporting and sustainability management. The focus is moving away from what needs to be reported, towards how sustainability issues are actually managed, prioritised and followed up over time within organisations.
At Stratsys, we closely follow these developments and continuously work to translate new requirements into practical ways of working and effective system support. In this article, we share our reflections on the current situation, what the outcome of the Omnibus package means — and how organisations can position themselves strategically going forward.
Much movement in regulations and standards
At the beginning of the year, we see several parallel changes affecting sustainability work:
- Continued implementation of CSRD and ESRS, where the focus is increasingly shifting from formal reporting to governance, implementation and monitoring
- Proposals for simplifications and adjustments to ESRS, while maintaining the core requirements for credible climate transition plans, targets and actions
- Growing pressure on ESG due diligence, scenario analysis and value chain perspectives - both from regulation and from investors, customers and business partners
Our picture is clear: it is no longer enough to 'report right'. Sustainability needs to be integrated into strategy, risk management and decision-making processes.
Omnibus outcome - clearer scope and fewer companies covered
The recently adopted Omnibus package primarily clarifies scope — and significantly reduces the number of companies covered by the regulations.
The agreed thresholds mean that:
CSRD applies to companies that meet:
- ≥ 1 000 employees
- ≥ €450 million in turnover
CSDDD applies to companies that meet:
- ≥ 5,000 employees
- ≥ €1.5 billion in turnover
For organisations that fall outside these thresholds, formal regulatory requirements are reduced. At the same time, expectations from customers, investors and business partners largely remain — particularly regarding value chains, risk exposure and climate transition.
Simplified ESRS — fewer data points, same direction
EFRAG has published updated and simplified ESRS standards. For many organisations, this has raised the question of whether ambition levels are being lowered. Our assessment is that:
- The structure is simplified, with significantly fewer data points,
- but expectations regarding governance, internal logic and credibility remain intact.
The continued focus is on:
- Double materiality assessment
- Targets grounded in credible transition logic
- Clear links between risks, impacts, objectives, actions and follow-up
The timeline ahead - what happens next?
In short, the timeline for the simplified ESRS looks as follows:
- Q1-Q2 2026: the European Commission is expected to adopt the revised ESRS through a delegated act.
- Thereafter: Formal review by the Council and the European Parliament.
- Q3-Q4 2026: The simplified ESRS enters into force and is transposed into national legislation.
- Financial year 2026: Voluntary application.
- Financial year 2027: Mandatory application for organisations covered by the requirements.
This provides some breathing room — but also a clear indication of the long-term direction.
A more mature phase for sustainability management
We are now entering a more mature phase of sustainability work, where the emphasis is on:
- Clear links between risk, strategy and action
- Structures that last over time
- Follow-up that enables learning, prioritisation and adjustment
This applies regardless of whether an organisation is directly covered by regulation or indirectly affected through customers, investors or business partners.
In our Knowledge Hub, we have gathered our analysis of the current situation and the future of sustainability reporting, for those who want to immerse themselves further: Sustainability reporting - current situation and future.
New features and developments in Stratsys
To meet the new needs, we continue to develop our support for, among other things:
- Strategic sustainability management with clear connections between impacts, risks, objectives, KPIs and actions.
- Flexibility and comparison between ESRS 2023, draft ESRS and VSME in the product.
- Support for climate transition plans, including follow-up and integration with strategy and investments.
- Extended possibilities to work with ESG due diligence and value chain data at both product and supplier level
The goal is to make sustainability management more integrated, scalable and practical in everyday work. Read more about our products here, or book a demo to get a guided tour of our products..
Our reflection
Sustainability is no longer a separate ESG track. It is increasingly becoming part of how organizations:
- make strategic decisions
- prioritize investments
- manage risk and uncertainty
- monitor long-term performance
Those companies that manage to integrate this into their regular governance are in a stronger position - regardless of how regulations continue to be adjusted.
Moving forward together
We will continue to share insights, interpretations and practical examples throughout the spring, with a focus on how organisations can build sustainability management that stands the test of time — even as conditions change.
We know that many are currently facing important choices in their sustainability work. Our ambition is to continue to be a long-term partner that doesn't just comply with regulations - but helps you translate them into real business value.
Would you like to know more about how other organizations work with scenario analysis, climate change adaptation plans or ESG due diligence in practice? Look out for upcoming invitations to webinars and customer dialogues in the spring.
Please get in touch if you would like to continue the discussion.
Kind regards,
Cecilia Almér
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